'Price sensitivity is in the minds of people,'Arun Marc D'silva,Frederique Constant
'Price sensitivity is in the minds of people,'Arun Marc D'silva,Frederique Constant
In an candid conversation Retailer Media, Arun Marc D'silva, India Director, Frederique Constant expresses  his views about the luxury watch industry..
 
Tell us about FREDERIQUE CONSTANT's journey so far?
Frederique Constant was introduced into the Indian market in 2009 by Retail Interface Pvt Ltd which is today India's leading brand management firm for Swiss watch brands. Starting with a single outlet in 2009, Frederique Constant today retails from 42 Points of Sale (POS) in 13 cities. The brand has grown by 100% year on year and today stands among the most respected Swiss brands in the premium and luxury space.
 
Being an established player of the luxury retail segment, do you observe a shift in the retail paradigm?
Sure! Customers are getting much more aware, and only advertising is no longer the basis for their choices. They have specific needs and look for brands that are in sync with their lifestyles.
 
You are retailing through MBO's and franchising in India, do you have plans to venture through single brand retailing?
Not in the coming year. Establishing an independent presence requires much more preparation which the brand is in the process of organising.
 
In the luxury watch market, are there any trends specific to India? 
There is a definite shift towards more classical designs as even the younger customers want to have pieces that are elegant and luxurious. So the shift appears to be from sporty quartz chronos to slim elegant automatics.
 
Tell us about the smart watch that you have unveiled recently? Do you think Apple's I watch can be a challenge to the Swiss luxury watchmakers?
The Frederique Constant watch is a Horological Smart watch. Its predominant function is to tell time. As additional features, it has connectivity to a smart phone and therefore is a valuable piece for personal health tracking. It has perpetual time and date, since it take this from the phone. It is not to be compared with devises that are used for various other functions including communication but are termed watches because they are worn on the wrist.
 
How effective your marketing efforts are?
Looks like our efforts are fruitful considering the exponential growth the brand is experiencing.
 
Talking about the price sensitive Indian market, how have you priced the smart watches? 
The smart watches are priced between INR 70K to 80K which is an excellent price. 6 pieces sold on the day of the soft launch itself, and customers commented that they felt the prices would be 30% higher.
 
Is it true that there is a decrease in trained timepiece technicians? Does this sector have any backup plan?
As of now we are not experiencing this problem.
 
Watches are not something people strictly need, especially in a country like India. So how do you see the sector in long term prospect?
Watches are accessories that excite people, and anything that excites has a future. And fortunately for all of us, there are millions of people who remain excited.
 
As a matter of fact, this industry is actually price sensitive because of materials, manufacturing, and currency fluctuations? How does your company address this issue?
Price sensitivity is in the minds of people who do not have the creativity to develop markets. In India unfortunately we believe that everything has to be compared with a local low cost brand. That's not the way people who travel extensively think. They want value and are willing to pay if they believe the brand is giving them value. Brands need to think how to deliver this value and also how to create the perception of customer delight.
 
Doing business in Switzerland is, of course, expensive. Any plans to move manufacturing unit elsewhere?  
Not at all! Switzerland is the world's most respected location for watch making. Frederique Constant will continue to manufacture in Switzerland.
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading