The Breitling Watch Source Forums

The Swiss watch industry is growing tired of the US market and all its troubles...

Dealers who sell based on low balling are diminishing the brand image.

Dealers who cringe at stocking orders and dump the excess on the grey market.

Unstable AD's who continue to go out of business...Look at Park Promenade Jewlers. Huge Rolex dealer. Had AP, Breitling, Chopard, BVLGARI, and some others. GONE. Out of business. Why? Mismanagement and reckless discounting. Does Rolex want to put up with that? Nope. That's why they plopped a Rolex Boutique square in the fanciest mall in Orlando. Sure it's partnered with their stable AD...for now, but it won't be down the road. It's all about CONTROL and stopping the embarassing behaviors by crummy AD's..

Breitling is going to stablize the market themselves by cutting out the "flea market" type dealers and increasing the number of boutiques.

Omega is doing this right now. Panerai and others already are.

Get your new watches at low prices now, while you still can..

I'm not saying you are wrong and it certainly "sounds" logical, but the question I have is a simple one - Is this your surmise or do you have some actual evidenceof this? If the latter, then let's hear it. Because all we have so far is the existence of some Boutiques and what seems to be your theory. If you have more, won't you share it with us? Explain it to me like I'm a six year old so I don't miss it.

_________________
SHARKMAN

I understand that Tom, thank you.

However, there is no distributor in Switzerland. To my knowledge, ADs order directly from Breitling. Which means that, theoretically, they're having a bigger margin than a US AD. Still, they offer a lower discount than in the US. Question is what price does Breitling sell to a Swiss AD compared to what they sell at BUSA or BUK, for example.

_________________


- This is Ghost Rider requesting a fly-by. - Negative Ghost Rider. The pattern is full.

Read the article in the latest 'Watchtime' about Nicloas Hayek JR and his Omega strategy. It spells it out.

I have been told by contacts I have at a large AD to expect this boutique strategy from other brands as well. Breitling is just getting it's feet wet. They'll start in big cities and command the market there....then move to mid cities and leave the smaller affluent markets to trusted AD's that don't have to slug it out in a mall etc..

Believe me or not, the writing is on the wall. It's up to you to read it or ignore it.

See in the interview with Nichlas Hayek Jr that I read in WatchTime he said that it was vitally important to have a strong dealer network and that he never saw boutiques replacing that.





In Switzerland Breitling is their own distributor, no different to the Breitling owned distributors elsewhere in the world and ADs pay the same as elsewhere.

I know Hayek Jr said that. What else would he say? He isn't going to come out in Watchtime and alienate his dealer network BEFORE the boutiques are set up to cover the markets..He'll do that afterwards. Sure, there will be AD's in some areas where it makes sense, but many others will be company stores...Quite frankly, their brand is a complete mess and they have to go that route to repair it...

Perhaps next time WatchTime should interview you - clearly you know what Hayek said that was true (the things that support your perspective) and where he was lying (the things that are counter to your argument).

Are these the same brilliant contacts that back in Jan told you they had no knowledge of a Breitling price increase???? And there have been two increases since then? I really don't think you have a clue what the hell you're talking about....but that's just my observation.

_________________
"I don't own any watches, I just lease them"

_________________
-RJ

I already saw this movie. It's called Independence Day.

_________________
SHARKMAN

Whatever you say hero, I don't recall asking you your opinion.

But, since you brought it up...

There is always tons of misinformation about price increases. This dealer said 10% across the board. Others say 5%. SA is going up 15%... Now it's 8%...

Back in Feb same thing. He said, they said..

At the time my guy said he hadn't heard anything. He was wrong, but so was everyone else. The percentages were off as were the dates. It was really a bunch of nonsense...

This June increase was a lot smoother. Information seemed more consistent, so it sounded a lot more valid than the FEB increase...

Read between the lines. I'm surprised Hayek said as much as he did..

It doesn't matter what he says anyway, the proof is in the actions..

How many Omega AD's are there now compared to 5yrs ago? A LOT less. Do you think Omega wants you walk into a Jareds Galleria and hear...first words out of the "salespersons" mouth...this is your "Jareds" price on that model? Nope. That's why they are being yanked slowly from those stores...

They are consolidating AD's and building boutiques right in front of us and there is still denial? Whatever..

Hey, I hope I'm wrong. Boutiques are BAD for us watch guys, I'm just giving you a devils advocate approach..

Chill Down...

Dang this is a fun discussion!

Actually I'm hearing the same thing on the boutiques with Omega. Look at the Orlando market and Canada. Of course Breitling is not part of the Swatch Group, so who knows. I do know that many brands look the other way when it comes to discounting as long as the AD's are paying their bills. The distributor needs the cash flow. However, those brands that can afford to weather the storm are planning to weed out the bad apples!

AD's with cash flow problems will always skirt their contractual agreement with the brands when they need to. I guess that's until it catches up with them. Believe me, I'm all for getting a great deal, but there's a reason Rolex and Panerai hold their value so well. I'm sure many brands that can justify policing their AD's pricing tactic's see this as well. I guess we shall see.

At least we are having a somewhat civil discussion on this topic.

_________________
Coasterkid
Breitling Super Avenger
Breitling Steelfish
Breitling B01
Omega Seamaster
Rolex T/T Yachtmaster
TW Steel TW22

Canada??

The only Omega boutique that I am aware of in Canada is the Olympic one in Vancouver.