Product
Advice on what to look for when choosing a creative who will be able to deliver cost-optimized designs.
Advice on what to look for when choosing a creative who will be able to deliver cost-optimized designs.
Insight on the pricing structure of watches, typical markups of distribution channel and cost breakdown.
Comparison between consulting and private label, and recommendation of suppliers based on finishing grade.
Watches belong to the hard goods category of luxury, and according to The Economist Intelligence Unit, “...managing luxury is not only more difficult than ever, it is actually one of the most difficult managerial tasks. This is deeply embedded in the nature of luxury…“
When it comes to entrepreneurship, it is generally considered that the 3 pillars of a successful business will be Finance, Sales & Marketing and Operations. However according to watch distribution expert Thomas Baillod, Operations is the most critical task:
If you master your costs, you master your sales and marketing strategy. Production is the key to everything. First (you need) to get the right product, but you need to master your cost and make sure (that) you have the right quality. Don’t leave this to improvisation, and remember: the right people bring you to the right people.
…and I would add that if your Product is not optimized, it could easily lack value proposition or cost more to manufacture than you can afford.