Podcast Summary: "Jean-Claude Biver's Cost Versus Value Equation Analysed And More..."

The Real Time Show hosted by Rob Nudds and Alon Ben Joseph delves deep into the intricate world of watchmaking, exploring themes of perceived value, brand strategies, watch maintenance, and the challenges posed by modern retail dynamics. Released on September 15, 2024, this episode specifically analyzes Jean-Claude Biver's approach to balancing cost and value in watch marketing, among other pertinent topics.

1. Introduction

The episode kicks off with Rob Nudds and Alon Ben Joseph welcoming listeners back and engaging in light banter about previous episodes and upcoming questions. They encourage audience interaction, inviting listeners to send in their queries for future discussions.

2. Jean-Claude Biver's Cost Versus Value Equation

Main Discussion:

The focal point of this segment revolves around the question posed by Berndt regarding whether Jean-Claude Biver's new "Carry On" models offer double the perceived value relative to their price. Berndt challenges the notion, referencing Biver’s recent auction where a unique piece fetched approximately $1.6 million, speculating on its retail value.

Rob’s Perspective:

Rob counters by emphasizing that at higher price brackets, watches transcend being mere products—they become treasures or collectibles. He remarks:

“What you’re talking about is they are pieces. Maybe one could say they are treasure. They are something else. They’re beyond the scope of mere mortals in many ways...”
(03:09)

Rob expresses reservations about the sustainability of Biver's strategy without Jean-Claude's leadership, highlighting his disappointment with the brand's recent offerings which he feels deviate from the classic elegance he associates with Biver’s legacy.

Alon’s Insights:

Alon acknowledges Rob's points and brings up the strategic appointment of James Marks as the new CEO, indicating a move towards organizational stability and longevity for the brand. He underscores Biver’s commitment to building a lasting brand presence.

“...Putting a CEO in place shows responsibility, it shows maturity...”
(12:14)

Notable Quotes:

• Rob: “If these watches had come out from an unknown maker at this price point, they’d have been panned...”
  (05:15)

• Alon: “It creates objectivity as well. So I find it a very interesting move, but a very smart move as well.”
  (12:14)

3. Handling Mainstream Brands and Retailer Relationships

Lawrence’s Question:

Lawrence from the TRTS network inquires about managing mainstream brands, particularly addressing the challenges of handling unsellable stock without resorting to hefty discounts.

Rob’s Response:

Rob shares his experiences managing sales networks for brands like Nomos and Fortis. He contrasts the rigid, top-down approach of brands like Rolex with the more flexible, collaborative strategies of smaller, independent brands. He emphasizes the importance of building mutual trust and adaptability between brands and retailers to ensure successful partnerships.

Alon’s Agreement:

Alon concurs with Rob, highlighting the respectful and mutually beneficial relationships they've maintained with brands such as Zenith. He criticizes large conglomerates for their often asymmetrical and pressuring relationships with retailers, advocating for more balanced interactions.

Notable Quotes:

• Rob: “...a retailer will come down basically to how much they want that retailer to be their representative.”
  (28:11)

• Alon: “It’s not healthy. In the end, it’s the big groups... they push and push and have no idea where these watches end up...”
  (35:17)

4. Watch Maintenance: Cleaning Watches

Max’s Question:

Max asks for advice on how to clean a watch and the recommended frequency for maintenance.

Alon’s Comprehensive Guide:

Alon provides an extensive overview of watch cleaning techniques, emphasizing the importance of rinsing waterproof watches with fresh water after exposure to saltwater or chlorinated pools. He details the significance of checking the watch's water resistance and offers practical tips for different types of straps and materials.

“...if you have, for example, a cognac leather strap, which is one of my favorite colors to wear a watch on, I would sooner stain the entire thing a little darker with a saddle cleaner than I would have sweat patches showing...”
(16:40)

Rob’s Practical Approach:

Rob shares his personal watch cleaning routine, highlighting his meticulousness, especially with bracelets. He discusses the importance of using appropriate cleaning agents and tools to maintain the watch’s appearance without causing damage.

Notable Quotes:

• Alon: “If you have a waterproof watch and you’ve went into the ocean or a swimming pool, always rinse it with sweet water.”
  (14:01)

• Rob: “I never really notice that there’s a buildup of skin cells, shall we say, or dirt on watches until it’s more obvious...”
  (16:40)

5. Price Transparency and SKU Strategies

Emiliano’s Comment:

Emiliano raises an insightful point about how brands like Montblanc and Bulgari adopting SAP systems have led to price transparency issues. He uses Invicta as a case study, illustrating how creating separate SKUs for online and brick-and-mortar sales aims to prevent retailers from engaging in price wars.

Alon’s Technical Analysis:

Alon differentiates between Invicta’s strategy and the challenges faced by luxury brands like Montblanc and Bulgari. He criticizes the latter for their poor implementation of SAP, leading to duplicate reference numbers and confusion in the market. Alon advocates for a unified product coding system to streamline operations and enhance consumer trust.

“I really urge everyone in the watch industry, please stop playing around, stop mucking around, stop fucking about. Let’s all work to a universal product coding system...”
(49:21)

Rob and Alon’s Consensus:

Both agree that manipulating SKUs to obscure price differences is ineffective in the age of advanced search technologies like Google Lens. They emphasize that transparency is paramount and that brands risk devaluing their products through such strategies.

Notable Quotes:

• Rob: “You can’t keep one reference number the same. If there is a real difference in either design or functionality...”
  (53:02)

• Alon: “If there is a price parity, that’s your issue. Apparently it’s not that wanted or not that well or you should stop selling on Amazon.”
  (50:14)

6. Conclusion

Rob and Alon wrap up the episode by acknowledging the depth of the discussions and inviting listeners to engage further with their questions and comments. They tease future content, including interviews, Q&As, and articles, ensuring listeners stay tuned for more insightful discussions in the watchmaking world.

Final Thoughts:

This episode of The Real Time Show offers a compelling exploration of the delicate balance between cost and perceived value in the luxury watch industry, the importance of strong brand-retailer relationships, practical watch maintenance tips, and the complexities introduced by modern retail and e-commerce strategies. Rob Nudds and Alon Ben Joseph provide expert insights, backed by real-world experiences and thoughtful analysis, making it an invaluable listen for watch enthusiasts and industry professionals alike.

For more episodes and content, visit www.therealtime.show or follow them on Instagram @therealtime_show.