The relationship between high-end watchmakers and retailers has become increasingly tense in recent years. Over the past decade, this dynamic has shifted in a direction that has left many retailers frustrated. The golden era of collaboration is fading, and what was once a harmonious partnership is now marked by growing competition and mistrust. As brand-owned stores have proliferated, investment in retail channels has risen, but so has the pressure on retailers to meet higher standards.
Bernard Formas, co-CEO of Richemont, recently emphasized the need for stronger performance from the distribution side. He stated that retailers must be more active partners in building brand presence and enhancing customer experience. This isn't just talk—Richemont has raised its expectations for its partners, and some are no longer meeting the criteria. In response, the group has opened numerous brand-owned outlets. For instance, Bellevue, a Richemont subsidiary, now generates 52% of its revenue through its own network. By the end of the 2013–14 fiscal year, the group operated 1,043 self-owned stores globally.
Similarly, the Swatch Group aims to increase sales through its own stores to 35%. While currently only 20% of its revenue comes from these outlets, the company plans to expand further. Nick Hayek, CEO of Swatch, acknowledged that while this goal is still a long way off, the trend is clear: more brands are setting up their own retail spaces. Brands like Hour Passion, which focuses on high-end collections, have expanded rapidly, opening over 50 stores across China, Italy, Germany, and the UK by 2013. Their global expansion continued into cities such as London, New York, Las Vegas, and Poznan.
Omega, part of the Swatch Group, has established 123 exclusive boutiques and 322 total sales points in just 13 years. Its leadership prefers single-brand stores over traditional retailers, citing reduced risks associated with partner instability. Stephen Urquhart, Omega’s CEO, remarked that in an ideal world, the brand would operate only its own stores. This stance has sparked concern among retailers, especially in Germany, where it caused a stir. Some worry that competitors may outperform them in single-brand settings, leading to declining profit margins. For example, Romain Jerome’s profit ratio dropped from 40–50% to around 30% in recent years.
However, not all brands are moving toward full ownership of retail spaces. Rolex remains a notable exception. Unlike others, it continues to rely on trusted partners rather than establishing its own stores. Rolex collaborates with historic Swiss retailer Bucherer to open flagship locations, maintaining a balanced approach. The brand believes this model will remain unchanged. Patek Philippe has also reduced its retail network, focusing instead on strengthening relationships with existing partners. President Thierry Stern stated, “There is no retail partner without us.â€
While official responses suggest that single-brand boutiques won’t harm retailers, the reality is more complex. Brands like Hublot have opened 70 boutiques worldwide, often capturing sales that might otherwise go to independent retailers. Retailers claim they can still offer customers a wide range of choices, but the market is becoming more saturated. With growth slowing, the role of travel shopping—especially from China—has become crucial. But what happens if tourism declines? Will single-brand boutiques or multi-brand stores continue to thrive? The answer remains uncertain, but one thing is clear: the watch industry is evolving, and both manufacturers and retailers must adapt to stay relevant.
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