The luxury watch industry and the internet
Marc Frisanco
The article of Michel Jeannot on the luxury watch industry and the internet brings to mind a remark made by a specialist in luxury in the early days of the internet: he said that one should approach this new medium as one should approach two porcupines making love - very, very carefully.
The wisdom inherent in this commentator’s observation is perhaps best evidenced by the bursting of the internet bubble. Michel Jeannot seems, at least implicitly, to reproach the luxury watch industry for not having moved faster to embrace the internet. It is far from clear that having moved faster would in any way have benefited the industry be it in terms of distributional advantages or with regard to image.
Nevertheless, today, the internet has fundamentally changed social behaviour, creating virtual and specialized communities networking with each other. The potential opportunities thus created for the luxury watch industry - in terms of advertising and business practices - are enormous. For example, some projections show that 30 million dollars worth of advertising revenue will flow from the written and television media over to the internet in the next three years. Of this amount, 50% will go to Google and similar internet advertisers (such as yahoo). Brands have no choice other than to integrate this reality into their business plans.
The new power provided to clients
Michel Jeannot rightly points out in this respect that so far, luxury watchmakers have not yet availed of the internet’s advertising opportunities; at best, they have created institutional websites to communicate about their corporate identity, heritage and values.
Another facet of the internet as it exists today and which will impact the way in which end clients are treated by luxury brands is the new power provided to clients. Web-specific technologies, such as P2P communications, VOIP, price comparators, and search engines are examples of tools that have empowered the client to procure information with no involvement by the brand. The luxury sector needs, again, to take stock of this reality and to create the conditions to satisfy end client needs while still being true to core brand values.
Approaching the internet is undoubtedly a “prickly” business (and in this respect Michel Jeannot reminds us of how painful counterfeiting on the internet can be). Yet it is up to the watch industry to tame this wild love-making porcupine in order to capitalise on the opportunities internet has to offer. Let us, collectively make haste to discover these opportunities… but make haste carefully! ■
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