Chanel and Dior Attempt to Challenge “Professional Watch-making” by Three Steps
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No matter how traditional watch brands show their snot of contempt, fashion luxury brands like Chanel and Gucci have demonstrated their determination to enter the complex watches business.
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Measure 1: fashion brands boost design value
Everyone knows that Chanel has been long beyond the influence of a luxury brand, especially when it has across oceans and seas to reach China, and every young Chinese girl has heard about Coco Chanel and NO.5, the symbols attached to Chanel; the other side about Chanel that these girls may not know is that Chanel has quietly occupied a place in the field of watches that men concern. It has in fact represented dozens of traditional fashion brands full of ambitions on the watch industry.
As a matter of fact, the entering of fashion brands into the watch business is influenced by the quartz crisis of the 1980s, which event has led to the great success of Japanese watch brands who are good at electronic equipments and simplified watch making. The low-cost integrated quartz watch production has lowered the threshold for some brands with no watch-making base. When fashion is becoming the theme of life for some people, these watches with better looks and are easier to match with clothes are attracting more and more consumers for their great value of fashion brands.
It is worth noting that, although many fashion brands today are fighting for market share in the watch industry in a very high-spirited attitude, they cannot make them the main stream in the opinion of the media. Most fashion brands only aim at expanding their product lines, and there is very few focus on the production of mechanical watches.
This is why traditional watch brands despise the watches launched by fashion brands. When every famous watch brand is making a parade of their brand story and talk about the experiences they inherit, fashion watches always feel in lack of confidence for their short history and they can only earn extra points by shallow tags like design and fashion. The most fundamental reason is that mechanical watches are still the most respected type in the field, but most fashion watch brands are unable to develop a movement on their own. And the fashion watch brands who have gained a firm foothold in the market today, without exception, all have one or two core or exclusive technologies worth showing off.
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Measure 2: fast fashion brands dominate the market by low price
However, not everyone can afford a Patek Philippe or Rolex watch. Efraim Grinberg, CEO of Movado Group who owns several fashion watch brands told the reporter that, the sales of watches launched by Coach, Tommy Hilfiger and Hugo boss had accounted for half of the Group’s profits. He also described to the reporter the different styles of the brands belong to his group in detail: Coach is very modern and colorful when the style of Hugo Boss watch line is similar to its ready-to-wear line, easy to match. Efraim Grinberg is optimistic and confident in fashion brands launching watches, “their brands can attract many loyal consumers, and their designs are related to the brand, and prices more affordable.”
The power of the brands are enough to attract consumers, for example, Armani watch has a lot of fans of Armani Haute Couture, and Gucci has spent a lot on advertising, thus they don’t have to worry about the sales even though they neglect the publicity of Gucci watch line. These seeming successes encourage some brands that are irresponsible about themselves to develop watch accessory. The sales may be satisfactory in short term, but the quality is no compliment, to put it in a mean manner, it is like selling their logo.
It appears that no matter how well the watches launched by most fashion brands, they post no challenge to traditional watch makers, as their targeted consumer groups vary greatly and thus competition relationship does not exist. The few fashion brands that are performing well in the watch market avoid being labeled as fashion watches and “professional watch-making” is the word they prefer for self-description.
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Measure 3: work with professional watch-making factories
Chanel may be the most representative example. Since it founded its watch workshop and launched its first watch Première in 1987, its reputation has kept growing. The technology of high tech precise ceramics has strictly distinguished Chanel from other fashion brands for it prevents abrasion on Chanel watches.
Another asset of Chanel is their cooperation with the famous Swiss watch maker Audemars Piguet Factory started from 2008. The Calibre3125 of Chanel’s J12 series is regarded as a classic piece by collectors. This watch’s movement Chanel-AP3125 is produced by Audemars Piguet Factory.
Bulgari is another excellent performer. It has much longer watch making history than Chanel. Bulgari began creating jewelry watches since the 1920s, but it was not until the 1980s that Bulgari took watch making seriously as a profession. To achieve this goal, Bulgari has carried out a series of acquisitions, including two Swiss brands, Gérald Genta S. A. and Daniel Roth S. A., and Finger in 2008, which companies are known for manufacture of high-end complex watches.
Besides Chanel and Bulgari, Hermes has cooperated with traditional watch maker Parmigiani, Dior has its own watch factory in Switzerland, and Cartier through the integration of resources has received the Geneva Seal, the highest standard of Swiss watch industry.
Real competition, in fact, has just begun.
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