The relationship between high-end watchmakers and retailers has become increasingly tense in recent years. Over the past decade, this dynamic has shifted significantly, leaving many retailers feeling frustrated. The initial excitement of collaboration has faded, and the once-close partnership is now more competitive than ever. This shift is no longer a secret—brands are taking greater control over their sales channels, and the traditional retail model is under pressure.
Bernard Formas, co-CEO of Richemont, recently highlighted the importance of strong performance in the distribution sector, stating that the company needs active partners who can help build brand presence and enhance customer experience. As a result, Richemont has been expanding its own retail network, with its Geneva-based subsidiary Bellevue now generating 52% of its revenue through company-owned stores. By the end of the 2013-14 fiscal year, the group had over 1,043 self-operated stores worldwide.
Similarly, the Swatch Group aims to increase its direct sales to 35% through its own stores. Although currently only 20% of its revenue comes from these outlets, the company plans to grow this share significantly. Nick Hayek, CEO of Swatch, emphasized that future sales will depend heavily on these stores, even though he admits it’s still a long way off. The group is also expanding its multi-brand retail concept, such as Hour Passion, which now has over 50 locations across China, Europe, and the U.S.
Omega, a key brand under the Swatch Group, has opened 123 exclusive boutiques globally, with 322 total retail points. Omega’s leadership prefers single-brand stores, believing they reduce risks associated with partner instability. This approach has raised concerns among traditional retailers, especially in Germany, where some have felt betrayed when brands opened nearby stores.
While most brands are moving toward direct sales, Rolex remains an exception. Instead of opening its own stores, the brand continues to work closely with long-time Swiss retailer Bucherer. Rolex insists this strategy won’t change, and Patek Philippe has also reduced its number of retail partners, focusing instead on maintaining strong relationships with select retailers.
The rise of single-brand boutiques has raised questions about its impact on traditional retailers. While officials claim there’s no negative effect, it’s hard to ignore the growing competition. For example, Hublot has opened 70 boutiques globally, leading to increased sales that might otherwise have gone to other retailers. However, retailers argue they still offer customers a wide range of choices.
With tourism-driven sales declining, the future of retail models is uncertain. Will single-brand boutiques or multi-brand stores prevail? Both have their strengths, but the industry is clearly evolving, and the balance of power is shifting.
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