High-end brands shift strategy from luxury to quality

"I am now confident in having the brand here, with developing new markets in second-and third-tier cities," Urquhart said.

Explosion of riches

China enters new luxury market era

"China is not just one or two cities. Beijing and Shanghai are important. But other cities are much more mature than people think. I am amazed to see that the retail environment in other cities is not at all backward; on the contrary, it is very advanced," Urquhart said.

Urquhart acknowledged that competition is becoming more fierce. Almost all the international luxury brands have opened stores in China as the country overtook the United States to become the world's biggest buyer of personal luxury items, accounting for 29 percent of global purchases.

"When we first came here 15, 20 years ago, it was our market, and we could do what we want. But now, many more brands have come in, and it is much more competitive. We must keep the growth momentum by staying creative, building up good relationships with the retailers and the landlords, getting the right location, the right distribution," he said.

But customizing the watches' design is not necessary for the China market, according to Urquhart.

"The Chinese want to buy an Omega watch that has an Omega heart, Omega soul, Omega history and Omega design," he said. "They don't want to buy a watch made for Chinese." he said.

If there is any difference in taste, he admitted, Chinese customers do prefer more gold on watches. So watches with gold sell better in China, he added.

 

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