Under the Caribbean sun
Tourism is taking off again in the Caribbean, and watch sales with it. In Saint Martin, Barbados and Porto Rico, purchases are made in a matter of minutes, and retailers must explain complex timepieces to holiday-makers in less than an hour.
Imagine white sandy beaches, a turquoise sea, the gentle lapping of waves on the shore, and exotic-sounding cocktails à la caipirinha, coco loco and mojito. Imagine breathtaking landscapes and peaceful surroundings. Where else but the Caribbean, a constellation of islands criss-crossed by luxurious cruise liners carrying crowds of holiday-makers. According to the Caribbean Tourism Organization (CTO), tourists arrivals in the region increased by 4.5% between January and April. The CTO also recorded a 6.5% increase in arrivals from the United States and a 7% rise in hotel occupancy. This resurgence, which should be even more noticeable in the summer months, comes after a 12.3% decline in arrivals in 2009. The CTO is optimistic that this trend will be borne out. And what do these tourists do with their dollars, euros and sterling? They buy souvenirs, hammocks, t-shirts and… watches, lots of watches.
In Saint Martin, Barbados, the Bahamas and Porto Rico, Fine Watch brands welcome the sight of busier harbours and an upturn in economic activity, as these islands account for a significant share of their sales in the Americas. According to industry sources, the Caribbean represents between 5% and 10% of the market for Swiss timepieces in Latin America and is back on track for growth. “These past months have been marked by economic uncertainty, less spending and fewer payments by credit card. Following this crisis period, however, many European and North American tourists have more cash than ever,” comments Philippe Alluard, Caribbean and Latin America President at LVMH Watch and Jewellery. “The conditions are ripe for a significant upturn in the Caribbean, where sales are reaching similar levels to 2007 which was a record year for many of the region’s retailers.”
Nowhere is this recovery more obvious than in Saint Martin. According to specialists, this tiny island is currently enjoying the strongest growth. “The island can thank a vast programme to develop port infrastructure, and renovation of the shopping mall in Marigot which now has beaches, attractions, restaurants and boutiques,” Philippe Alluard observes. The companies he represents enjoy a dominant position, as he explains: “TAG Heuer ranks second behind Rolex. Cartier is the third highest-selling brand.” As Alluard explains, in the absence of specific statistics for the region, figures are supplied by brands’ local retailers.
30 minutes max
“The region attracts a lot of tourists,” says Charles Marin, who represents brands such as Harry Winston and Roger Dubuis in the Caribbean. “80% come from the United States and the remaining 20% from Canada, Europe and Latin America. Local residents aren’t active in the watch market. They only invest in Jamaica, Porto Rico and the Dominican Republic.” Customers are therefore holiday-makers who aren’t familiar with the islands and have only limited contact with the jeweller or retailer from whom they make their purchase. This profile is the exact opposite of the North American customer, who likes to develop a close relationship with their jeweller. In the Caribbean, customers don’t know who they are buying from. Brand name and potential discounts are decisive factors in a sale that can be over in minutes, as Charles Marin explains: “Retailers don’t have time to explain the subtleties of watchmaking. A lot of sales are made in half an hour, at best an hour, whether the watch in question costs $2,000 or $50,000. Staff must have a flair for sales and good reflexes.” Indeed, the Caribbean has been dubbed the tourist trade market and the giant duty free.
Appearances, however, can be deceptive. Despite these quick-draw sales, the Caribbean is far from being an immature, emerging market dominated by high-profile brands. On the contrary, the region has become a magnet for the kind of selective tourism favoured by individuals with high purchasing power. And they are arriving in droves. According to the CTO, the Caribbean islands welcomed 18 million tourists in 2009. “All the leading names in watchmaking are represented, from Patek Philippe to Baume & Mercier,” comments Charles Marin. Independent brands also have their names over the door, such as Urwerk, Hautlence and Christophe Claret. “All the stores are selling major pieces, including minute repeaters,” Charles Marin concludes.
Anouar Guerraoui, Director for Latin America and the Caribbean at IWC, says recovery kicked in last December. “We’re coming to the end of high season and can report a positive trend compared with last year,” he confirms. “We’re expecting very good results from October when the next tourist season begins.”
Imagine white sandy beaches, a turquoise sea, exotic cocktails and quality watches. After the worst global crisis in years, the Caribbean is getting back on its feet. Tourists are returning and want to make the most of their holiday. What better than a watch as a reminder of these few weeks of rest and respite, and to count the minutes to the next vacation under the Caribbean sun.
