Joel Bixenspanner, head of the e-commerce department for Embix Watch Importing in Montreal, says having the right brand at specific price points can help create demand for certain lines over others.
“When the higher-end price point of a brand matches the lower-end price point of a more recognizable brand, the customer tends to decide on the more recognizable brand even though they may be getting fewer features,” Bixenspanner says. “They want the watch their friends will [be impressed by].”
Fashion watch brands that offer apparel also appear to be a bigger draw for consumers. “They want the watch that matches the t-shirt or jeans they’re wearing,” he adds.
Jay Cameron, vice-president of sales and marketing for Fiori Canada, says Internet sales are cutting into retailers’ bottom lines.
“The watch business is unique in this respect because people can specify a model number, look it up online, and see where they can get it for the cheapest price,” he explains, adding the weakened Canadian dollar is further aggravating the situation. Distributors like Fiori Canada are purchasing stock at 30 per cent more than a year ago and being forced to take smaller margins so as not to appear over-inflated against Internet suppliers.
“Taking smaller margins hurts, but doing so can create loyalty among retailers, as they can see the value of a company that is helping them to be competitive,” Cameron adds.
The end of the summer shows paves the way for the busy holiday shopping season.
