So....What Do You Think?

Earlier in the week, Michael suggested that some interesting topics in a particular posting were developing but were straying from the original posting question. He commented that they would be best welcomed as new postings. So I would like to offer the following topic for discussion.

As many of you already know, the Authorized Dealer (AD) sales distribution network is shrinking. I have heard that it has been or will be reduced approximently 30% by years end as the Boutique (brick and mortar) model continues to grow in numbers and locations. Also recently added to the sales distribution channel (in the U.S....not sure about the rest of the world) is IWC Concierge Services which is accessible by phone or web and provides direct sales with shipping capability.

Past discussions have already been posted on the Forum about the role of AD's along with purchase experiences by many from a Boutique point of view etc. However, I do not believe that given the changing sales distribution environment that there has been a posting that addresses if this has impacted your buying habits or how it may be influencing your future watch aquistion plans.

Curious to know how you all feel about this new sales atmosphere that we are watching develop. Has your overall contact or access to IWC changed due to the loss of a AD location or improved as a result of a new built Boutique near by? Please express your thoughts about ANYTHING you feel is important to share about this ever changing "Luxury Watch Buying Experience". What do you want others or IWC to consider about how you view the future direction of selling these wonderful timepieces.

Looking forward to what's on your mind.

Andy

Staff at IWC boutiques generally don't give discounts,although there are rare exceptions.AD outlets do offer sensible discounts,because there're selling other brands,which allows them a greater degree of freedom to discount to the customer.So I'm all for the AD not becoming an endangered species.
Regards.
Kenneth.

We are, I think, highly unlikely to get a boutique in New Zealand any time soon. So I don't see anything changing in this part of the world for quite a while.

I think it will be a while in the UK before the ADs are replaced with Boutiques - we do not have even a single Boutique. I do like the thought of being able to see the entire range in a single shop, something even the larger ADs cannot do, however I also like the thought of having a shop nearby and not having to travel into London everytime i want to see what a watch looks like on my wrist.

I would not buy a watch without trying it on. The group IWC belongs to has put one of its brands onto the net with a concierge service including a shopping basket. I guess if you can't find the exact model you are looking for then try on the model the AD has and then order the exact one you want from the website. Strangely it does not include accessories such as straps, something I would buy thorough that site.

I guess I a not alone in enjoying the relationship I have built up with my favourite AD. This is not because of price but due to the knowledge, enthusiasm and understanding the salesperson has shown me on the numerous occasions I have visited them.

Hello Andy

Good and interesting questions. I enjoyed the time with the former IWC Boutique in Zurich, as they had expertise and also a watch maker attached who could do things like change a strap or adjust a watch. Also, they were able to give me as a good customer some discount in any or the other way.

Now, with the new, fully IWC-owned Boutique, things have changed dramatically. First there is a discouraging guard standing at the entrance, then the boutique does not have any watch maker (so everything has to be sent to the service centre) and discount discussions are useless. These are the new rules, even though one of the former IWC Boutique staff has joined the new team.

Generally, with many AD - be it a Boutique or not - I feel strange when I have more knowledge about the brand or a particular watch the "professional" sales who are trying to sell to me. Sometimes I even miss an accurate treatment of me as an existing or potential customer. This is the point where I start to ask myself why I would buy a watch there, knowing that at least 30% of the money will stay there.

I once or twice visited a boutique, in Schaffhausen and Geneva. Only to look. The boutique may have quite a bit of very special watches, but indeed, for me these watches are only to look at. AD's may not have all the IWC models, but they have other brands too, so the total range of interesting watches is far broader.

I most of the time buy my watches at an AD that is part of a chain. This way it is easy to obtain a watch that that particular AD may not have. I like the fact that I can negociate a bit, but that is not the most important part. My AD could regulate one of my watches, the watchmaker was competent, that was great service.

A few times I visited an AD in Lucerne that had a guard at the door. That was quite OK by me, considering the amount of robberies on jewellers: some safety by deterrence is welcomed.

To me the AD versus boutique discussion is not very important. I like watches, the rest, like AD's and boxes, is very second place.

Kind regards,
Paul

I have bought far far more IWC's at AD's than I ever have or likely ever will at IWC Boutiques.

The Boutiques are provided far superior stock and accessibility to new models. Unfortunately, there are no Boutiques anywhere close to where I live, and none are likely. In the US, that generally requires a plane flight to get to one. By the time you add an overnight in a hotel, it adds about $1000 to the cost of a watch I want to see before buying.

As others have said, the pricing model is far different at Boutiques than at AD's. For most IWC's, Boutique pricing policies adds several thousand dollars more to the cost of the same watch at an AD. So a difference of $4000 or so on a $10,000 watch makes it far less likely I will buy at a Boutique.

My buying policy is to simply wait for a lightly pre-loved watch to appear on the aftermarket at a significantly lower price from a known seller. I may not be "first on the block" with the newest model, but by paying many thousands less, I can own many more watches. Availability? In last few months, what has not been available? I have seen almost all the BP's, including Ali, Tribute to Japan, and DFB. I have seen numerous Pure Classics. I have seen the Handwind Ports, including models that were only available for one year. All the Laureus series except the new Yacht Club, almost all the pilots, all the 5001's, Portofino 8 days, most of the Vintage Collection pieces that are out of production, etc etc. The fact is, I have seen almost everything except the newest 2013 models, and those are likely to appear by the end of the year.

Wait six months to save many thousands of dollars? Oh yes. And there is a Laureus Yacht Club and possibly a Port Chrono Ardoise out there somewhere with my name on it. I can wait. The vultures are patient. So very patient.

I mostly agree with many comments here on all sides of the topic. My longtime Authorized Dealer in Costs Mesa, CA lost their IWC business. IWC closed them when they opened the Boutique down the street at South Coast Plaza - even though, the clientele at SCP is completely different and would have little impact on the volume of business that my dealer does (which was significant). This certainly interrupted my purchasing - for the fact that I've been buying from them for 10 years.

My old dealer is mostly "over the shock" already and remodeled their IWC corner with 2 other brands.

The other unfortunate thing is what was happening to IWC distribution sales people responsible for managing the ADs. Their livelihood was impacted because of this shift and many moved on...

Increase the AD licensing, many of us do not have the luxury of access to boutiques. Also, ADs provide services such as, but not limited to, sending watches to service centres.

To my thinking, the issue is not an "either/or" one: both are good. There are advantages to the boutiques and there are advantages to dealers. Everyone has favorites but there are strengths to both distribution networks.

That said, in this discussion please be mindful here of the forum rules, which in section 19 state in part "Members will not post ... any information concerning prices, pricing practices, discounts, or other terms or conditions of sale either obtained by or offered to another entity relating to IWC products". The forum rules can be found at www.iwc.com/en/forum-rules/

Thank you Michael for the clarification to us on Forum rules. Your point about advantages of the sales channels is a perfect example of how this might impact us as we move forward with our passion for collecting fine watches. While I live in a very densely populated area and still have the advantage of a couple of Boutiques and AD's (although shrinking), many do not have that luxury. What do members do when they see something of interest and want to try it on, feel it, see what it truly looks like in the flesh. Like someone has already said, I will not buy a watch I haven't tried on. Are there many of you out there who will drive/fly/train for the sole purpose of buying a watch? If your past purchasing has been through a AD and it is now history, what is your plan ? Those of you who use both sales channels, how do you compare the level of customer service, the knowledge, any follow-up or after sales contact . Do promotional items enter into the picture and how do they differ between a Boutique and a AD. Would you consider using concierge services and utilizing the return polices if necessary?

Each members expectations of what constitutes a exciting watch buying experience is unique. Each may be influenced based on logistics. Given this changing environment, what will (if anything) IWC need to do differently to ensure your buying experience is a easy and positive one?

I am in no hurry at all. I see watches here and at other fora. Those few that interest me, I cannot buy them all, mostly because a want to wear my watches on a regular basis. I want to see and try the ones I want to buy to be sure I like them. As I go to watch paradise called Switzerland once a year, I don't encounter problems, there are enough AD's that can serve me in a satisfactory way.

Kind fegards,
Paul

I think what you say is very sensible and probably the best way to approach it if you want to save money. And I agree with you.... but.... I just love buying a "new" watch. Being the first to own it is a buzz. And, I intend to never part with any of my watches. So, I am happy (ish) to pay new prices.

However, your approach is far more sensible.

And may I add that I too see the advantages to both buying approaches. For me, I'm not a trader or a seller. Paying for the privilege of being the original owner is understood but an important factor to me. I insist on knowing that I have full control over the watches history and handling from right out of the box. In fact, unless it is a model that can no longer be ordered and is only available from display stock at a AD, I prefer to have the watch ordered. Part of my luxury watch buying experience is receiving notice that my watch is inbound. My AD then holds it in the safe until my arrival. Then he brings out the familiar cardboard box ( you all know the feeling seeing that thing ) and says...it's all yours ! I enjoy the process of step by step opening. Seeing it factory fresh is just part of the excitement. Being the first to try it on is indescribable. It's a adrelidine rush !! In the end, I'm OK paying a fair price for a brand new "out of the box" watch. My AD has come to know my makeup and creates the perfect environment that ensures my purchase experience is the best it can be and that I'm walking out the door with a great big smile on my face.

Oh, and he never fails to present me with some parting gifts (SWAG). It's icing on the cake !

Boutique's offer exclusive models and unique promotional items. They play an important role just as the AD does. I can only hope that IWC recognizes the importance of both sales distribution channels and continues offering the customer a choice.

As others have stated I think there will always be a place for both AD's and Boutique's in most parts of the world. I for one would welcome a boutique / flagship in Sydney but mainly from the point of view of opening up the model range, there are simply too many watches we just do not see in Australia under the current model. I walked into my AD when the new Ingenieur range was announced and flat out said I would take one of the new Carbon Performance's, sight and price unseen but to the best of my knowledge (and this may be a marketing issue) the range has not yet toured Aus, nor has a Carbon Performance made it to Aus let alone my AD or choice.

I do find the AD process a little warmer - for me it feels nice to have a sales person use all the tools in their arsenal to get you over the line, especially when you are not 100% decided - including price and in a lot of cases this flexibility with pricing often leads to you "buying-up" or being a sucker of the up sell and walking out of the shop with something you would not have purchased had you not received a perceived discount - it is always a nice feeling to think you have got a good deal.

Cheers,

Ben

It would be great if Sydney got a boutique. I get to Sydney a couple of times a year so having a boutique and its range so close would be excellent.

Tricky subject to discuss openly here. As ADs disappear boutiques need to ramp up services provided at their locations. A local boutique didn't even have a demagnetizer in the store and offered to send the watch to Texas. I just walked down the street to a regular watch shop.

And what's with the need to have a big security guy standing at the entrance like a night club? I do not see guards at ADs or family-owned watch shops with larger collections.

Ray

Interesting and important topic!

I oppose the idea of eliminating dealers for the sake of the boutiques. I suspect part of the motivation on the company's part is to discourage discounting. But as prices for new IWCs appear to be rising faster than the rate of inflation, the continuing availability of significant discounts becomes even more important for buyers, like myself, with moderate incomes.

I was doubly saddened to learn that the dealer from which I purchased my Mark XVI was dropped by IWC, because I received a very attractive discount and also because the people I dealt with over the phone (there is, alas, no IWC dealer in the St. Louis region) were perfectly lovely. And the fellow at the dealer who relayed the unfortunate news to me about being dropped by IWC seemed genuinely sad at the development.