Swiss luxury watch brand Raymond Weil is lookig to scale up its business by entering tier II towns and offering more designs and products in the country. In an interview with Raghavendra Kamath, its president & CEO Olivier Bernheim talks about the brands strategy and plans.
Since the government has allowed 100% foreign direct investment (FDI) in single brand retail, will you look at opening stores on your own instead of franchise route?
Since government has taken this decision two weeks ago, we are still studying the implications. So far we have stores run by franchisees; we will go back to Geneva and take a decision on issues such as running stores ourselves and so on. We will adapt our strategy according to new change in the policy.
How will Raymond Weil penetrate deeper into Indian market where customers are spoilt for choices?
Because of recent interest in luxury brands in India, we are really developing ourselves and growing ourselves more than ever. We have opened more standalone boutiques here than many other major markets this year. Customers are showing enormous interest, requiring us to teach them more about technology and craftsmanship. They know about Raymond Weil. My father-in-law (Raymond Weil) opened Indian market with our watches. We are developing more horological pieces for Indian market. In a market where men are also going for more sophisticated watches and one generation are passing on the watches to next generation. They are ready to spend more as they know they would pass them on to next generation. We are offering more sophisticated and complicated watches and boutiques are important in giving confidence to customers.
How are you differentiating yourself from other luxury brands?
Raymond Weil is known to manufacture best technology for years. Nothing is new, nothing is better. We are offering better technology. Raymond Weil is known for art, culture and music. We are investing in that direction in India. We are supporting painting exhibitions. We are sponsoring photographic competitions. We are defending our DNA and create a niche for ourself in the market. Of course, competition is there and it requires each of us to better than others. There is a fierce competition but it is interesting. We are offering products which are highly recognizable and those stand out. We are known as trendsetters.
How is your business growing in India?
It is growing in double digits. We are as per our plan despite slight economic slowdown and difficulties. We are quite sure that market will pick up due to late Diwali this year, through Christmas and upto Valentine's Day next year. We are entering into highest season. Since we are private family-owned business, we can not talk about numbers.
What are your plans for next year?
We have quite covered the boutiques, now we are looking to open huge shop-in-shops in tier II cities such as Coimbatore, Bhopal, Indore and Ludhiyana.
In terms of business you generate, where does India stand?
China is growing by far. In BRIC countries, India stands second. Custom barriers affect local spending here. People buy cheaper goods abroad. With the growth of economy and improvement in consumer mood Indian can be top five markets for us in the next five years from top 12 in the world in the next five years.
In the past, you have said business from India can be double by 2015, if you have a stable economy. How do you see it now?
It all depends on the confidence world will have on India. Rupee has dropped tremendously because of low confidence. Bringing confidence is key for future and development of the country. Buying power is there but mood is little down. Rupee has gone down from Rs 40 to Rs 60 and going back to original levels will take a long time.
Why do you think festive season will be good?
There are many reasons why festive season will be good. First of all, we are offering new products, new designs. Second, it is best gifting period. People are in a mood to spend. For the last two-three days, people are coming and asking for the products. People will need to buy. Festive mood will overtake economic phenomenon. People are waiting for the festive period to spend.