Emotions peak with Movado products
The Movado Group is one of the world’s premier watchmakers, that designs, manufactures and distributes watches for ten of the most recognized and respected names in the horology industry: Movado, Concord, EBEL and ESQ Movado along with Coach, HUGO BOSS, Juicy Couture, Lacoste, Tommy Hilfiger and Scuderia Ferrari licensed watch brands
The brand was founded by a Cuban gentleman named Gedalio “Gerry” Grinberg, who left Cuba after the revolution for the United States. Already a talented watchmaker, he wanted to bring his expertise to the American market and soon secured the distribution rights for Piaget, which was an unknown brand at the time, and made it into a well-known company from which it grew into what we know it as today. His business thrived and acquired more and more brands. Today it is managed by the President of Movado, Ricardo Quintero, who chatted with Day and Night Magazine to give us an insight into the brand’s strategies.
You recently had a career change. What made you take such a risky step?
I joined the Movado Group in July 2014, because I wanted to challenge myself in a new role with a new type of product. My previous role was within Estée Lauder, which is a beauty company specialising in luxury women’s beauty products and fragrances that are priced above the average beauty brands, so I wanted to remain in the luxury industry but diversify in the product. Choosing the horology industry was easy as I have always had a fascination for timepieces; the aesthetics as well as the mechanism ignite a passion that pushes me to do my best. Although the Movado group is a small company, it has an extraordinary portfolio of brands with a lot of ambition. However the brands are not developed to their full potential and I feel I possess the knowledge and skill to assist in making a colossal change to the growth of these brands.
How is working in the watch industry different to the beauty industry?
Both industries are similar in terms of the driving need behind each purchase of a luxury product. Research has showed that purchases are made with emotions – it’s how the product makes you feel. Women purchase make-up because it makes them feel beautiful, whilst watches are purchased either for status reasons or to make the wearer feel proud of being able to wear such luxury – hence happy. Generally, the biggest difference I have experienced is that the purchase cycle in the cosmetics industry is a lot shorter than the horology sector. The beauty industry has fast-moving consumer goods, whereas watches are not bought as regularly, so the retail metrics differ between the two industries.
The Movado Group works with many brands. How can you manage such a large portfolio without causing internal conflict?
The Movado Group has an extensive portfolio which must be managed efficiently – to do this we have adopted a pyramid structure strategy that allows us to realise the importance of catering to various niches. EBEL, along with Concord sit at the top of our pyramid structure, this segment caters for the minority who have enough disposable income to pay for quality timepieces. Then below this triangle, are other brands with various design aesthetics and price positioning that cater for the masses, these watches are more affordable and easy to maintain. Each segment does not compete against each other as the brands are targeting a different client base in different countries – for this reason it becomes easier to manage so many brands.
What elements do you look at before deciding to take a brand under the Movado wing?
We look at several elements before choosing to support a brand. Our strategy is based on three criteria: What opportunities can that brand offer the Movado Group? Who is the targeted audience? And what segment is growing – which means does the product on offer have a potential to grow? To ensure the growth of a brand requires a lot of time, effort and money – so it is imperative that we make the right decision. However, if the growth is already present, then chances of success double.
Movado has active ties with the Lincoln Centre for Performing Arts. How does art incorporate into the companies activities?
One of the unique gifts of human endeavour is creativity. Global evolution is centred on creativity – the ability to change things for the better. However, the vision of one person doesn’t go as far as the inventiveness of a number of people working together to achieve a common goal. In the horology business, creators tend to manufacture products with an artistic expression of the preferences of people. Even as a wearer, you would wear something that speaks out to you – something that allows others to see what type of person you are. This brings us to the question; how does the Movado Group inspire itself to achieve the ultimate personal expression that would make people purchase their watches? Well, the answer is you surround yourself with artists who exude creativity and this is where the Lincoln Centre for Performing Arts comes in.
Do you think advertising plays an important role in the purchasing of a new watch?
To be honest, it doesn’t play a large role in influencing a sale. Sure, it educates prospective customers about new watches and its features but the actual emotion connection is made once the watch is experienced first-hand. Either through a friend who already owns the watch or when the customer is in store trying it on their own wrist. In many ways watches are like shoes – they look perfect in the store but when you try them on, the fit has to be perfect otherwise they are never looked at again.
