A Few Minutes With Marcella Dolan

I first bumped into Marcella Dolan back in October at the District Time Show in Washington DC.  She and her partner Stephen Rowley have been working away at the launch of their new brand - Stella.

Courtesy of Stella W

We had a brief chance to speak and we did a brief write up about their launch prior to their Kickstarter announcement - 

Breaking the Sapphire Crystal Ceiling with the Stella Watch Company

I am particularly enamored with the Downtown Red -

Courtesy of Stella Watch Company

Now that the dust has settled on the Kickstarter campaign, I thought it would be a good time to follow-up.  So gentle reader, a few minutes with Marcella Dolan

James Henderson - Tell us about your first watch.  Was it a gift?  Is there a story behind it?

Marcella Dolan - The first watch I actually remember falling in love with was a sterling silver Navajo design with turquoise stones and hand tooled feathers on the arms. It had a mother-of-pearl dial and an expansion back and fit my scrawny wrist perfectly. My mother and I would roam the flea markets on Saturdays and when I saw this on a table with a bunch of odds and ends, I thought I found a treasure! That was sometime in the late 70’s, early 80’s when I was into fringe leather jackets and moccasins so this was for sure my pièce de résistance! 

JH - When you were younger, what did you want to be when you "grew up"?

MD - That’s easy - a starving artist! My dream was to live in a small, sunny art studio where I could have the solitude and freedom to paint all day and night. I assumed I could sell a piece of art whenever I needed to eat or, you know, pay rent. It’s a romantic dream until you have to, you know, pay rent!

JH - Where did you go to school?  What did you study?

MD - It’s a long story but for the sake of brevity, I’ll just say I did not go to school. I lived in and traveled around Europe for three years after high school. Paris, Aix-En-Provence, Germany, Belgium, Amsterdam, Italy and Luxembourg. It was the school of life and I do not regret a moment of it.

The education that would lead me to a career came later when I first set eyes on a Macintosh computer. Remember the first Mac commercial, “1984” with the woman throwing a sledgehammer at a projector screen? That was just a few years before I sat down in front of my first Mac and was instantly enthralled. Although the programs were still very rudimentary, I was amazed that you could create art digitally! I found a book and taught myself how to use the programs and from there, taught myself everything I needed to land my first graphic design job. I have been an autodidact throughout my entire career and I believe hands on learning is the best way to gain knowledge (unless you’re a surgeon).

JH - What did you do before you got into the watch business?

MD - See above! I’m going to just admit here publicly that I lied my way into my first “real” job as a graphic designer. It was for a firm that manufactured ATM machines and they needed a graphic artist to render the machines in real life settings. I hadn’t learned the program they were using yet but when asked if I had the experience I said yes and then immediately found the “how to” book in the library (remember those days of no internet?).  At the next interview I got the job. From there I had a few graphic design jobs before a previous boss left to work for a small watch company and subsequently asked me to work for him. It was very early in my career and since that first job, I never left the industry. Along the way I learned everything I could, not only about watches, but also about business and eventually became the VP of Timepieces for a large NY fashion accessory company.

JH - As someone who has worked in the watch industry for some time, how long had you been thinking about starting your own brand?

Courtesy of Stella Watch Company

MD - I would say it’s something I always wanted to do. I love designing watches but when you’re designing for someone else, you have to work within the constraints of that brand’s DNA. I do enjoy sculpting out a watch line as the extension of a brand. But the idea of having the freedom to create something with the only constraint being my imagination was always enticing. It was my partner Stephen’s idea to start our own business.  Having worked together before, we developed a mutual respect for each other’s talents and work ethic and when he approached me with the idea, I was all in. 

Courtesy of Stella Watch Company

JH - So what makes Stella special?

MD - I think what makes Stella special is that it is not trying to be something else.  I have tons of respect for the microbrand community but I have seen a lot of homage watches and that is not what we wanted. Stella is a watch with its own DNA and you would be hard pressed to put a “label” on it.  Some reviewers have called it a type of field watch or a dress watch but Stella was intended to be just a cool looking watch that you could wear every day, on any occasion. It can be dressed up or dressed down, depending on your vibe. It is neither masculine nor feminine and at 40mm, it really can be worn by anyone.  That is what we wanted to create. 

JH - I often talk about the Sapphire Crystal Ceiling - essentially, that the watch business is fairly replete with middle aged white men and not necessarily so welcoming for women in the upper echelons.  This is of course, my opinion as a middle aged white man.  What's your take on the industry as an insider of many years?  

MD - Honestly, I don’t consider this industry different from any other.  The unfortunate truth is that women have to fight harder, work harder and constantly prove that they are just as capable, or even more so, than their male counterparts in every profession. But in this industry in particular, yes, I agree there are a lot of “old school” stodgy middle aged white men who don’t understand the benefit of having a woman’s perspective. And that’s a huge miss in my opinion.  If there were more women in this industry, classic upper echelon “men’s” brands would try to do more than just vomit diamonds on smaller rose gold versions of their best sellers and call it the “ladies collection”.  Come on, it's degrading! If I were running a brand (which I am!) I would respect that in 2020 diamonds are a cliché and women have more depth of character. I would take the time to design interesting models without a gender label and I would do my best to accommodate all wrist sizes (which I am!)

Courtesy of Stella Watch Company

JH - You were able to raise a decent amount of funding through Kickstarter.  Did the campaign go as well as you'd hoped?

MD - Given the timing of when we launched, yes, we were very happy with the campaign. Stephen and I debated whether we should go ahead with the launch or hold off for “better” times.  We ultimately decided to just go for it because we were anxious to “be in business” and the Kickstarter campaign was the launch. We already decided to go ahead with production months earlier because we were fairly confident we would be well received and we didn’t want customers to wait so long to get their watch. We didn’t have production worries since I already knew which manufacturers I wanted to work with and because of our long-standing relationships, they were happy to take on the venture. Still, in a time of Covid, it was a gamble but what in life isn’t?

JH - Who do you see as the "Stella" customer?

MD - Everyone and anyone who appreciates a well-made Swiss watch with a cool, unique design. I’ve learned not to tell my customers what they like. If it appeals to someone, that’s our customer.

JH - What are some of the challenges that you've encountered during this process?

MD - Even with all the experience Stephen and I have in the industry and in business, there are things we had to learn, like how to build an e-commerce website or what is the right demographic for a Facebook advertisement.  When it’s your own business, you are the designers, developers, marketers, sales team, accountants, procurement managers and file clerks! If there’s something you need to get done and you don’t know how to do it, you learn it – quickly!

JH - Who else is making watches out there that you admire?

MD - Honestly, I admire anyone who has a vision and the drive to see it become a reality. Stephen and I both have a strong work ethic but building your own company from the ground up takes a LOT of work and commitment. Anyone doing it and succeeding is to be admired.  But there are a number of brands that I think have done a great job, from design to a good quality build. Chris Ward tops my list although I don’t know if we can still consider them a micro? Farer as well, they have a unique aesthetic and I love their use of color. Jonathan at Brew because I love that he sticks to his brand story. I think Aevig did a really nice job with the Huldra, Nodus is solid, the new Marternero Bayshore is sharp and I’m hoping it will be as good in person. Monta, Halios, Baltic, there really are so many.

JH - If you weren't doing this, what would you be doing?

MD - Starving - as an artist.

JH - What advice do you have for the next Marcella Dolan out there?

I’ve been very fortunate to have been able to build a career doing something I love. I’ve seen a lot of ups and downs over the years in this industry and today I don’t know if I would recommend it as a profession to go after. BUT, I know that having a passion for watches cannot be denied. So, I would say if you have been bitten by this bug, find a way to make it work. Whether that’s as a career or as a collector, seek out people who are knowledgeable and never be afraid to ask questions. I think most people in the watch community have this hidden fear that it will someday be a lost art and are therefore happy to pass down their knowledge. Embrace it, and it will embrace you, for better or for worse!

Smartwatches, and all that Glitters

Story by Francis Jacquerye

Preamble

Since the launch of the Apple watch in 2015, it has become a commonly accepted fact that smartwatches are out to take luxury watches. After all, sales of luxury watches are dropping and sales of apple watches have overtaken them... so it must be true, right?

Besides possibly ignoring economics trends and consumer behaviour, this reasoning seems to oversimplify the value proposition of luxury goods. If customers cared more about utilities (technical specifications) than luxuries, there would not be a $1,171 billion global luxury industry [1].

In this first part of the series, the author would like to look at how Apple influenced the conversation about smartwatches, and wether there are overlaps with luxury watches. The author has worked for both the luxury industry and the consumer electronics industry (within Swatch Group AG from 2007 to 2013 and Goertek Inc. from 2015 to 2019),  and has been an Apple customer for the last 10 years, so his perspective cannot really be accused of being partial or biased.

The Successful Contrarian

There is no doubt that Apple is a polarising company. On one side they enjoy an almost-cult like following, and on the other they are the subject of criticism.

Something that everyone can agree upon however is that the company's history could be divided into a pre Dot-com bubble [2] era (with an outspokenly anti-IBM Steve Jobs being ousted) and a post Dot-com bubble era, with Steve Jobs back at the company's helm and the company becoming a leader of market segments.

Image: Steve Jobs outside IBM's NY headquarters in 1983, photo Andy Hertzfeld/Jean Pigozzi. Reproduced under Fair Use / Fair Dealings 

In the pre Dot-com bubble era, Apple was defining itself as being contrarian to the mainstream computing corporations. Their chosen narrative presented them as a David against Goliath.

Image: Apple's 1984 Super Bowl commercial, directed by Ridley Scott. Reproduced under Fair Use / Fair Dealings 

« This commercial was classically disruptive... This wasn’t a machine where you were going to be kowtowed in the workplace, this was a machine for the young, innovative, entrepreneurial mind. It really inspires the creative individual to break free and start something different. » [3]

In the post-Internet era, Apple has defined itself as the "underdog". Their success stories always follows the same template: Apple enters an existing product category, releases their own improved version, beats the biggest guy on the yard and ultimately dominates the market.

They started with the iPod, which remains the most successful portable media player of the post Dot-com bubble era. They followed suit with the iPhone, which managed to spell trouble for industry leaders such as Blackberry, Motorola, Nokia and Sony-Ericsson; and continued with the iPad, which dominates the market of tablets.

The Biggest Guy on the Yard

In 2014 the market of smartwatches represented a modest volume of less than 5 million devices. Since there was no Goliath of smartwatches to pick on, Apple looked at the market of wrist wear and decided that the closest thing to a big guy were Swiss luxury watches.

This offered two opportunities: by name dropping luxury brands, Apple could avoid comparison on utilities with its direct competitors, they could lean on overlapping aspirational values with luxury brands and they could anchor the image of their smartwatches as quasi luxury goods.

Avoiding Comparison

Although it is true that Apple did use comparison with direct competition in the early 2000s (the LOL funny "Get a Mac" campaign with Justin Long) [4], they did promote the overall experience instead of focusing on utilities. Once that the company got the upper hand on portable media players with the iPod, and on smartphones with the iPhone, they could afford to focus on the brand experience. This tactic has the benefit of leaving adversaries with no other option that competing on utilities or price.

Focusing on Aspirational Values

Interestingly, this strategy is closer to luxury brands than consumer brands. Patek Philippe for example, promises customers to travel across generations.

Image: Patek Philippe's "Generations" campaign: « You never actually own a Patek Philippe. You merely lok after it for the next generation. »

As for Rolex, founder Hans Wilsdorf practically invented athlete endorsement and cemented the brand's promise to customers of traveling across the globe.

Image: Mercedes Gleitze, British professional swimmer and first woman to cross the English channel in 1927. Reproduced under Fair Use / Fair Dealings.

Apple's promise to customers is to travel with their mind. The company's stated mission is « ...bringing the best user experience to its customers through its innovative hardware, software and services. » [5]. Everything in the brand experience, from advertising, retail design, approachable staff, packaging, industrial design, interface and ecosystem upholds those values.

Image: Working at an Apple store. Image credit Apple Inc.

Using Anchoring

In order to cement the apple watch in the public's imagination, Apple used three elements of anchoring:

Firstly, when Tim Cook unveiled the apple watch in 2015 he pitched it against a shortlist of watch brands ranked by sales value. Half of the brands on this list belong to the High End segment, so it had the benefit of instilling the idea that the apple watch could by all means compare to the likes of Rolex, Omega or Patek Philippe.

Image: Tim Cook 2015 keynote, credit Apple Inc. Reproduced under Fair Use / Fair Dealings.

Secondly, the first apple watch edition features an 18k gold version, and it helped to cement the idea that if Apple wanted to play head to head with giants of the luxury industry, they could. But they ultimately would not, because Apple was probably producing the 18k gold watch at a loss. However it still served its purpose as a publicity stunt.

The apple watch 18K gold red

Thirdly, Apple sought a collaboration with Hermès, so even if the comparison with luxury brands or the release of an 18k watch did not work, the apple watch could at least benefit by proxy, from being associated with at least one bona fide luxury brand.

The Hermès apple watch edition

If Apple felt a need to use anchoring to position the apple watch as a quasi luxury item, this begs the question: where does the apple watch overlap with luxury watches?

Differences and Overlaps

Speaking of luxury watch brands or luxury brands in general, there are four characteristics that make their products different from consumer goods: namely purchase decision, scale, sustainability and resale value.

Purchase Decision

According to Prof. Henry Assael of NYU, most consumer purchase decisions can be summarised as complex buying decisions, dissonance buying decisions, variety seeking decisions or habitual buying decisions.

The author explored in detail what the model represents and how it can be applied to luxury watches in Understanding Luxury Brand Equity through Consumer Purchase Decision, but looking at Apple's shortlist of watch brands, Rolex, Omega, Cartier and Patek Philippe would probably fall into complex buying decisions: the customer needs a high involvement in gathering information about the brand, and there are numerous differences between competitors.

Longines and Tissot would probably fall into dissonance buying decisions: the customer needs a high involvement in gathering information, but there are few differences with competitors such as Certina, Concord, Ebel, Eberhard, Eterna, Frédérique Constant, Louis Erard, Maurice Lacroix, Mido, Raymond Weil or TAG Heuer.

Fossil and Casio would probably fall into variety seeking decisions: the customer needs a low involvement in gathering information about the brand, but there are numerous differences amongst competitors. This would typically be where all fashion and lifestyle brands belong.

Seiko and Citizen would probably fall into habitual buying decisions. The customer needs a low involvement in gathering information and there are few differences amongst competitors.

What is noteworthy about Apple is that they manage to tap into complex buying decisions with their brand equity while also tapping into variety seeking decisions because of democratic prices on their entry lines. By leaning on the most compelling buying decision categories, they leave competitors like Samsung to work with dissonance buying decision and low cost competitors to work with habitual buying decisions, which precisely try to compete on utilities and price.

Scale

Voiceovers of Sir Jonathan Ives on Apple ads try to convey the quasi luxury status of Apple products, by using hyperbole words such as "precision", "exquisite" and "craftsmanship". Regardless, the fact remains that Apple products are mass-produced and intended for intensive distribution.

Image: iTunes Match’s launch with iTunes 10.5.1 beta 3, The Next Web. Reproduced under Fair Use / Fair Dealings.

In theory there is no limit to how many consumer goods or how many consumer electronics can be manufactured. This is why the industry has managed to saturate the market of personal computers, laptops and mobile phones: every consumer who can afford it buys one, so the demand is in decline.

In contrast, luxury goods are constrained by a scarcity of raw material and a scarcity of artisans capable of turning these into finished products. not every consumer who can afford it can buy one, so the demand is rising. It is without surprise then that most luxury goods can only be sold through selective, if not exclusive channels.

Philippe Dufour, a living legend and a Swiss national treasure, takes more than a month to produce watches to a degree of finishing that puts Patek Philippe to shame. The fastest that he can work is with electrically driven and hand controlled tools.

Philippe Dufour, image source FHH Journal. Reproduced under Fair Use / Fair Dealings.

Sustainability

The sustainable dimension of luxury products takes various aspects: first, the source of raw material must not be depleted, so it is in the best interest of luxury brands to preserve an existing symbiosis or an ecosystem. I previously discussed the economic benefits of the luxury industry in an answer to « Does it hurt the economy when people spend on luxury goods? ».

Secondly, besides being produced with superior materials and according to a superior design, luxury goods can be repaired, which dramatically extends their lifespan.

In comparison, consumer electronics pose several human rights and environmental problems in how raw materials are harvested and processed. A race to release newer devices faster means that products do no longer have to be build to last long. Before the iPhone, the criterion for shock resistance was much more stringent. It would have been considered a design flaw it a screen broke the first time that a phone was dropped.

However, the iPhone had the effect of lowering the standard for a whole industry. Example like this have prompted the European Parliament to put laws into place to protect the interest of consumers and force manufacturers to build products that are more durable and easier to repair [6].

The iPhone and other smartwatches are almost always designed and built like consumer electronics, so they do not offer the same repairability as luxury watches.

Resale Value

Because their quantity on the market in finite, used luxury goods tend to appreciate in value over time because of the law of supply and demand. Typically, 40 years old luxury watches and more recent ones can easily be kept in perfect working conditions, because spare movement parts can easily be procured for movements, and most components such as crystal and gaskets are standard. There has been a push from dominant luxury brands to undercut independent repair shops and force a monopoly on repairs and servicing [7] so the customer's best interest could be in jeopardy.

To Apple's credit, the company is one of the few whose products are highly sought on the second hand market. Besides refurbished products that Apple officially sells in 21 countries [8] to a market of more than 2,300 million consumers, there is a thriving parallel repair and resale market around their products.

In 2015, Android Police calculated that Apple offered software updates for older devices up to 41 months in average, which was practically double that of Nexus android devices (21 months). From 2018 onwards, Apple has been giving customers the option to have their iPhone battery swapped, which according to CEO Tim Cook allowed customers to hold on to their iPhone a bit longer than before [9]. Asymco analyst Horace Dediu estimated that the average lifespan of an Apple device in 2018 was slightly more than 4 years [10].

Image source: Software Updates: A Visual Comparison Of Support Lifetimes For iOS vs. Nexus Devices - Martin Lobao, Android Police, September 2015

In Conclusion

The author tried to outline Apple's branding strategy to present their products as quasi luxury, which sometimes overlaps with luxury branding, particularly when it avoids direct comparisons with competitors and it focuses on aspirational values. When it comes to the apple watch, there are many differences in its production and distribution scale that makes a head to head comparison with luxury watches impossible. Apple does however manage to overlap with luxury watches by tapping into similar purchase decisions and by offering longer software support and superior resale value than its competitors.

In this series, the author will offer a different perspective of the observed drop in sales of luxury watches and will explain the "Kodak syndrome" and how it dominates the conversation. The reader will be offered an insight into radical changes that the Swiss industry undertook long before any hint of the 1980s crisis, and how they made it possible to manufacture smartwatches today. The author will try to show how comparing sales of smartwatches with watches works, except when it does not.

References

[1] Luxury goods worldwide market study, Fall–winter 2018, Bain & Company
[2] Dot-com bubble, Wikipedia
[3] How The Greatest Super Bowl Ad Ever — Apple's '1984' — Almost Didn't Make It To Air, Aaron Taube, Business Insider
[4] Apple’s Steve Jobs didn’t want those Mac-vs.-PC commercials to be LOL funny, Mike Murphy, Market Watch
[5] Investor Updates, Apple Inc.
[6] Making consumer products more durable and easier to repair, European Parliament
[7] Apple Refurbished Products: Should You Buy Them?, Juli Clover, MacRumors May 2019
[8] Rising Demand for a Declining Watchmaking Trade, Francis Jacquerye, Woodshores
[9] Apple CEO Tim Cook: Customers Are Holding on to Older iPhones 'a Bit Longer' Than in the Past, Juli Clover, MacRumors January 2019
[10] An analyst estimated how long Apple customers hold onto their devices — and the findings might surprise you, Edoardo Maggio, Business Insider March 2018

Anniversaries, Watches and Hermes

June 4th is a special day every year at Henki House.  And this year was particularly auspicious as Wendy and I celebrated our 25th wedding anniversary in Montreal, where we had our honeymoon back in 1994.

On the morning of the 4th, I set out from our hotel to fetch bagels (when in Montreal, do as the locals), and upon opening the door to our hotel room found this sitting in the entry way -

Now point of full-disclosure, I had toyed with the idea of an Apple Watch as a "work out" watch.  I certainly thought it was sort of cool.  But I had been burned by connected and smart watches before.  Functions never worked as advertised.  The watches frequently "pooped out" after a short amount of time.  I have given up on doing smart/connected watch reviews because of the three that I have done in the past:

1.  Watch crapped out in the middle of the 2 week review period
2.  Watch "soiled the sheets" approximately 3 weeks following the review period - i.e. it made it 1 month and 3 days.
3.  Watch worked great out of the box.  Ran fine for about 2 months, then software got buggy and never quite recovered despite multiple updates and re-sets.

So that's me, a little cynical.  

Now although we are only 2 weeks into this relationship, I take a lot of comfort in Apple's track record for reliability is pretty strong, and as an "Apple Guy" since 1987 I am definitely a fan of the interface, look and feel of Apple products.


And as I said, for a long time I have always been a mechanical fan, and even developed an appreciation for "clever quartz" pieces like Michael Happe's passion project, the Gavox Aurora -

As well as a new-found love for G-Shock following my visit to their factory last September -

But then I started wearing this -

The Apple Watch, in and of itself is quite a nice little timekeeper.  I refuse to call it a "wearable" because I feel if you're going down that road, you have to apply it to pretty much everything (just one man's opinion).  After a few weeks of blissful wear, I have discovered some of the pleasant benefits of wearing an Apple Watch.  The "walk measure" meter I use daily.  While driving if I am using my phone as GPS through the CarPlay?  The watch will "buzz" on my wrist with an arrow indicating what direction I need to turn.  I have not set-up the ECG function yet, but as a man of a certain age?  It's on the to-do list.  Other updates are pushed through, and again I actually appreciate it.  Before, anytime my phone pinged I was distracted and felt I needed to pull my phone out of my pocket, and check it.  Now?  A quick look at my watch tells me if it is important or not.  Also, like my two GPS enabled G-Shocks, I can be certain that the time is correct.

I love the ability to change faces.  I know, sort of silly, but I dig it!

While a standard Apple Watch gives you quite a few face options, the Hermès Apple Watch gives you, well, the 

Hermès faces!  So far I am sticking to the black, white and orange options as they really go with the tri-color straps.  

Another Hermès touch is (and I know this is VERY un-Henki), the packaging!

A larger Orange 

Hermès box holds two smaller boxes within.  One of them holds the watch head and an Orange rubber strap. The second box holds the AMAZINGLY wonderful 

Hermès leather strap -

Now I have seen 

Hermès straps on Hermès watches at BaselWorld, but in truth had never worn one.  I realize that hyperbole is an annoying trait displayed by those in the 4th and 5th Estates specializing in the luxury industry, but this is one wonderful strap.  

So much so, that I am already saving my pennies for 2 options -

Courtesy of Apple

Courtesy of Apple

One suggestion I would put out there for 

Hermès and Apple?  Make an Hermès strap case/pouch that could hold 3 or 4 different straps.  I know that you can park the straps "wherever", but let's be honest, when you're talking about an Hermès product, you are willing to go a little bit further to have something special.  So Hermès, if you go for it, no charge for the idea ; )

And when it comes to the Apple Watch itself?  Well I know that it is early days, and yes the Apple Watch has a few drawbacks, most notable for many of us is the need to re-charge it on a fairly regular basis.  And for many people out there, the feeling is that it is a LOT of money for something that might be outdated in a year or two.  Well, yes and no.  Ultimately, nothing is 100% permanent.  I have several friends and colleagues who are still wearing and enjoying their early versions of Apple Watches.  In addition?  Apple does offer a trade-in (providing your watch is "trade-in-able". 

Lastly, I will say that I was, and continue to be, profoundly touched by this gift.  If I had any doubt that Wendy "gets" me, well let's just say that she does.  

Enjoy your watches!

Influencer

This continues to be a hot topic, and it will continue to be so long as brand CEOs, managers and marketing folks keep dipping into the till to pay off popular boys and girls in the hopes of being relevant to the Millennial demographic. 

It has now seeped so far into the public awareness that various sources beyond the Urban Dictionary are defining it.

noun

1A person or thing that influences another.

‘he was a champion of the arts and a huge influencer of taste’

‘genetic factors are key influencers of your metabolic rate’

‘Frank's been a teacher and cultural influencer for years’

1.1Marketing A person with the ability to influence potential buyers of a product or service by promoting or recommending the items on social media.

‘influencers can add serious credibility to your brand’

Ultimately, brands will push the envelope as far as they can until the FTC or the public at large gets tired of the never-ending game of Manchurian Candidate Kabuki theater that is the "influencer trade".  It is false, it is deceptive and it is manipulative.  And I would like to think that the powers that be could be a little less disingenuous (lacking in frankness, candor, or sincerity; falsely or hypocritically ingenuous; insincere: Her excuse was rather disingenuous.).

But I'd like to propose that the guys and gals writing the checks at HQ consider a different way to go about this whole influencer thing.  Now back at the turn of the century, there were a few people out there who were influencers before such a thing existed.  And they did it in a way that was honest, forthright, and understandable.

While it is very true that Hublot became a sensation through the tireless work of Jean-Claude Biver, there was another guy who made Hublot and its story his passion, which then became his career.  While Mr. Biver can be thought of as the father of Hublot, in many ways Mr. Margolis is the American uncle.  This did not simply happen because Mr. Margolis demanded several thousand dollars to feature Hublot in his communication.  It happened because Mike was passionate about Hublot, and his passion was contagious.  And here is the key thing - YES - he became an employee of Hublot - but that did not make his passion any less real, or his communication any less honest.  In many ways it did just the opposite.  It was a way of saying - yes, I work for these folks but I'm also a fan.  And I am going to go to every event, pour coffee, shake hands and kiss babies to spread the word because I believe in it.  

It is safe to say that in many ways Mike was the prototypical brand evangelist for the watch industry.   And I think that is the way many watch buyers and fans would like to see things evolve.  

An instafamous influencer is a gun for hire.  While they may appear in a brand's SIHH video with other instafamous influencers, they will then turn around and cash the check for yet another brand to feature them in their social media feeds.  So if you bought brand X based on the desire to be like them, you will then not be like them in next week's instagram feed ; )

Guy Kawasaki became Apple's evangelist.  And in his way he did as much (and in some cases more) than Steve Jobs in spreading the good word.

At a time where things are in flux, the industry does not need more bullshit.  It needs more transparency.  And it needs some sincere people who are truly passionate about what they are promoting, not merely bottom feeding for the next instafamous check.

Bring back the evangelists!

Here's To The Crazy Ones...

One of the great privileges of writing about the watch industry is you get to meet some genuinely nice and interesting people who are working to create a brand, maintain one, or in some cases?  Bring it back from the dead. 

These are folks that have never sought out the spotlight.  They come in early, they stay late.  They answer the phone when a call comes in.  These are the people you don't read about, you don't see them on the red carpet.  But they are there.

These are also the people that, had they been dealt a better hand at the big poker game?  Or (if we are honest) had a more mercenary approach?  They'd be running "big boy" brands, rolling in cash and swimming in champagne.  

These are also guys and gals that tend to do whatever it takes to ensure that even in bad times, employees will be taken care of.  But these are also the folks that when they put down their chips and place their bets?  They tend to do it with their own money first.

I have a great, great deal of admiration and respect for these brand owners.  It is no small feat to be a mid-level director or employee for a watch brand.  I do not make light of that.  But to gain that experience, then to find a struggling brand, put your money on the table to buy it, and make a go of not just running it, but saving it from certain extinction?  That's some pretty salty stuff!

I realize that these are not the people you will be seeing at the GPHG, they will not be featured by the "elite" watch journalists because, well, it's not like they are going to spend any REAL advertising money, are they?

And that is why it really sucks when despite all of the effort, the reality of the business steps in.  Even with their best efforts, new investors coming in, a LOT of enthusiastic customers and potential customers out there, they just can't make a go of it.

With the big boy brands and the big boy egos involved in this business, I talk a lot about the "Transfer Window".  This is mostly due to the way that the industry has hyped up the image of being the CEO of a watch brand to similar levels of being a professional football player.  Seriously - have you ever seen a consumer magazine for toothpaste?  We all use toothpaste (hopefully) but it doesn't tend to lend itself to the passion and fan worship that exists out there for the leaders of the watch industry.  

But there is a parallel watch industry reality.  One where brand owners and CEOs are not worried about finding a new car partner so that they can have a sexier company car, or making enough in bonus to finally pay off their third home in the south of France.  This parallel watch world is filled with normal people, leading normal lives.  People working hard trying to make a dream come true without the benefit of multi-million dollar investment funds.  People pursuing what in then end turns out to be an unfulfilled dream.

But I hope that some of these dreamers that have been "transferred out" will dust themselves off and get back in the game.  This is a business that can lead to some extremely cynical behavior on every side of the BaselWorld booth.  Trust is hard to come by, and motives are frequently questioned and doubted.  The industry needs some more dreamers, and a few less egos. 

I'd like to leave you this morning with a quote from Steve Jobs that is often re-shared by my friend Rod Hess:

Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes... the ones who see things differently -- they're not fond of rules... You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them because they change things... they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.

Steve Jobs

 

Gooseberry Wants To Make Your Watch Smart!

With their new Smart Buckle.

Courtesy of Gooseberry

Having tried a few smart or connected watches, I generally return to my favorite mechanical (or in the case of the Gavox Aurora, even quartz) watches before too long.  More often than not, I tend to come to the same compromise - connected watch on my right wrist, preferred "real" watch on my left.  The connected watches thus far have failed to live up to both the hype, and then the adjusted expectation level.  In some instances the functions do not work as promised, in others the watch breaks down quite shortly after purchase, becoming a somewhat frustratingly expensive paper weight.  The frustration level for the customer I suspect only increases when it seems that the brand is more intent on spending money on brand ambassadors and events and not worry too much about after sales support.  Because if we're honest, if it doesn't work as advertised, as the customer you are more apt to abandon the whole idea and stop wearing the now apparently "not-so-smart" watch.


MMT offered up the E-Strap this past year, but if I am being completely honest, it is still a limiting solution as it requires you to purchase the entire strap.  So this begs the question, what do you do when the strap is worn out, or if you would prefer to switch straps?  More to the point (and I will gladly accept being corrected if I have gotten the wrong end of the stick) my understanding is that the MMT Smart Strap is strictly a "B to B" solution, meaning that as a consumer, you can't go out and buy one for yourself.  You buy it from the watch brand as an OEM item.  Which means, you guessed it, you're going to be dipping pretty deeply into your pocket for it, and as it is an OEM item, it is going to be as challenging as getting any other OEM item in the post sales environment.  Meaning you will wait months, and frequently not be able to get it in a reasonable amount of time, and it is going to be expensive.

So let's get down to brass tacks -

Courtesy of Gooseberry

As a reminder, this solution as proposed is a buckle with the smart technology component built into it.

Courtesy of Gooseberry

It offers what is pretty much the expected level of features currently found in the majority of connected watches -

Courtesy of Gooseberry

My understanding is that additional features will be forthcoming as they are created and stabilized to ensure their functionality, so I will be curious to see how this develops over time.

Courtesy of Gooseberry

The buckle itself is rechargeable and is reported to last on average 7 days presuming a usage level of 8 to 10 hours.   The good news?  Only 60 minutes (1 hour) to recharge.

You can order the new Smart Buckle through Gooseberry's Kickstarter and save a good margin on the $99 US retail price point.

I have not personally used one, but I can say that if it does perform as advertised, it could be a very interesting step in the evolution of the connected watch.  

I will keep you posted - stay tuned!

Evolution and Survival of the Fittest

So a guy I tend to listen to shared with me a slice of reality that I suspect a lot of independent reps and reps looking for new gigs probably are not sharing with their "employers to be".  And that is that per the Jewelers Board of Trade, 1,669 business in the jewelry segment closed in 2016.  Oh, and that is just here in the States.

Let's take a moment and let that sink in.

If we divide that number by 12 months, that means that 139 per month.

If we divide by 52 weeks?  Slightly more than 32 per week.

If we divide by 365 days?  4.57 per day.

If it hasn't become clear yet, it should be starting to.  The old way of buying and selling jewelry and watches has changed.  Moreover, the number of potential outlets in the traditional channels (watch and jewelry stores) is continuing to contract as stores close up and disappear like available seats in a game of musical chairs.

For brands thinking about coming in and fighting it out in this gladiator's ring, keep in mind that you will be going toe to toe with some very strong, very wealthy companies who have far more money to burn than you to get their product into the dwindling number of watch and jewelry stores.  And even if you do get in, it does not guarantee that you will sell through.

Maybe, just maybe it is time to seriously consider a different approach?

You know where to reach me -

The Watch-o-Matic!

It slices, it dices, it's the last watch you'll ever buy!

The difference between Ron Popeil and some watch executives might be only a passport ; )

For those of you unfamiliar, Ron Popeil is the man behind Ronco -

Courtesy of the world-wide info-web

Now I want to start this out by saying that I actually have the highest respect for Mr. Popeil as both an inventor of stuff we really didn't want or need, and more importantly, convincing us that we couldn't possibly live without it.  The man could sell.

Steve Jobs had his Reality Distortion Field, per Wikipedia:

this was said to be Steve Jobs's ability to convince himself and others to believe almost anything with a mix of charm, charisma, bravado, hyperbole, marketing, appeasement and persistence. RDF was said to distort an audience's sense of proportion and scales of difficulties and made them believe that the task at hand was possible. Jobs could also use the RDF to appropriate other's ideas as his own, sometimes proposing an idea to its originator after dismissing it the week before.^[3]

Does this sound like some people we know?

What sort of got me caught up in this theme yesterday and today was reflecting on the "miracle" of Tag Heuer's Connected watch and the Reality Distortion Field that was spun around it.  After first poo-pooing the Apple Watch, Mr. Popeil's possible "brother from another mother" announced that, in fact, smart or connected watches were, in fact, GOOD!  Not only that, his brand would be offering one!  

As I've said before, the idea of a connected watch is not in and of itself not so crazy.  But it is a question of how many features can you actually use (really use) in a smart watch?  

For better or worse, there are only so many features you can put into a wrist bound Tamagotchi -

Shamelessly borrowed from the world-wide info-net

How many features, realistically, are worth having in a connected watch?

The Apple watch has proven itself to be a bit of a unique outlier.  Yes, it offers a ton of different features that may, or may not work well in a wrist-bound environment.  But this is not what really drives the sales of the Apple watch.  What drives the sales of the Apple watch is Apple itself.  It is a strong aphrodisiac.  It is why many people, including me, will spend MORE for an iPhone, Mac or iPad than those in the Windows tribe.  I have tried an Apple watch, and it was not quite the revelatory experience for me that it clearly has been for others.  And I LOVE Apple stuff.  But for me it was just too much.

As an experiment I tried a Withings watch and found it to be too far in the other direction - it was supposed to give time, a wake up alarm and a step counter.  The alarm did not work as advertised, the step counter did not count correctly.  It was a disappointment. 

And then we have the watch world's two notable entries - Tag Heuer's connected watch, and the offering from Frederique Constant / Alpina / Mondaine.  While the Tag Heuer offering provides all of the promise of the Apple watch, it is significantly more expensive.  And apart from the big displays at BaselWorld, I have never seen a Tag Heuer connected watch "in the wild", despite the exclamations of large sales numbers.  And the same could be said for the FC/Alpina/Mondaine offerings in terms of actual visibility.  

More than anything, regardless of what technology firm they partner with, the watch brands are now competing in a different arena.  And it is one with a lot more price sensitivity, and a requirement to evolve and innovate at a much faster pace than they are used to.  So it becomes, and will continue to be, a never ending game of catch-up.

The brands that keep the functionality actually functional have the best opportunity to grab market share.  BUT, and it is a big but, they have to put the price of the watch at a level that the market will bear.  What the Fit Bit boom underscored is that there are functional aspects that people want and will pay for.  But when we delve into just how many features they want on their wrist and just how much they will pay for it?  Well that becomes a different matter.

This is another case of less having the potential for being more.  Find four or five functions, stick with them, and make them perform perfectly.  But in addition, produce and sell it at a price point that the market will bear.  This is the other thing that Apple figured out that everyone else is still struggling with.

So we shall wait, and we shall see.