The Real Time Show: Tackling the Holy Trinity — Alon and David Discuss

Release Date: December 8, 2024
Hosts: Rob Nudds & Alon Ben Joseph
Special Guest: David Vaucher

Introduction

In this engaging episode of The Real Time Show, hosts Rob Nudds and Alon Ben Joseph delve deep into the intricate world of luxury watchmaking. With a special guest, David Vaucher from Fontainebleau, France, the discussion centers around the Holy Trinity of watch brands, their design philosophies, market strategies, and the evolving landscape influenced by key players like Hodinkee.

Understanding the Holy Trinity in Watchmaking

The episode kicks off with a fervent discussion on the concept of the Holy Trinity in the watch industry. Traditionally, this trio consists of Patek Philippe, Vacheron Constantin, and Audemars Piguet. However, David questions the inclusion of Audemars Piguet (AP) solely based on their iconic model, the Royal Oak.

• David's Perspective:

  • Timestamp [02:41]: David draws parallels between AP's reliance on the Royal Oak and Rolex's potential limitation if they only produced models like the Datejust. He posits, "If AP continues to only sell the Royal Oak, I think they will do fine. But I also think that they would gain in credibility and sales because I think they're a business at the end of the day."

• Alon's Rebuttal:

  • Timestamp [01:05]: Julia Alom vehemently argues against AP's narrow focus, stating, "Yes, yes, yes, yes, yes, it's bad... How can you rely on one sole horse in your stable?"

The hosts explore whether AP's strategy is sustainable or if it signifies a lack of long-term vision compared to other members of the Holy Trinity.

Comparative Analysis with Other Brands

To contextualize AP's position, David introduces a comparison with Porsche's 911 model.

• David's Analogy:
  • Timestamp [02:41]: "If Porsche only made the 911, could they keep going? I think they probably could."

Alon counters this by highlighting the differences in brand strategies and market dynamics between the automotive and watch industries.

Redefining the Holy Trinity

The conversation shifts to redefining what constitutes the Holy Trinity in modern watchmaking.

• Alon's Criteria:

  • Timestamp [12:37]: Julia emphasizes that true Holy Trinity brands must exhibit high craftsmanship, in-house manufacturing, and a diverse range of models and complications: "A lot of different types of watches, complications, metiers. So diversity."

• David's Agreement:

  • Timestamp [17:19]: David concurs, suggesting that AP lacks the breadth and innovation required to remain in the Holy Trinity, advocating for brands like Jaeger-LeCoultre (JLC) to take its place.

The Case of Hodinkee: Transformation and Challenges

A significant portion of the episode is dedicated to analyzing Hodinkee's evolution from a watch blog to a multifaceted retail platform.

• David's Insights:
  • Timestamp [20:55]: "Their aesthetic worked two ways for Hodinkee because on one hand I think it really propelled them ahead of everyone. On the other hand, I think it led them down this path of... we can be a lifestyle brand."

He critiques Hodinkee's strategic pivots, including their foray into pre-owned watches and collaborations, arguing that these moves diluted their original focus.

• Julia's Observations:
  • Timestamp [30:02]: Julia contrasts Hodinkee with peers like Ariel Adams and Blog to Watch, noting, "A blog to watch has never had a crisis of identity like the one that Hodinkee is currently seeming to be having now."

The discussion underscores the challenges faced by media outlets in maintaining objectivity while diversifying revenue streams, especially in niche markets like luxury watches.

Retail Strategies: Mono-Brand Boutiques vs. Multi-Brand Dealerships

Another pivotal segment explores the tension between brands adopting mono-brand boutiques and the traditional multi-brand dealership model.

• Alon's Experience:

  • Timestamp [36:08]: Julia shares her perspective as an independent multi-brand retailer, highlighting the pitfalls brands face when shifting to mono-brand strategies: "We have been forced by many brands to open a mono brand as a franchise for them or I'll lose the dealership."

• David's Analysis:

  • Timestamp [36:49]: David examines specific brands like Lange, Audemars Piguet, and FP Journe, debating whether their shift towards mono-brand boutiques is a sustainable move or driven primarily by higher margins and control over distribution.

The hosts debate the consumer appetite for brand-specific experiences versus the brands' motivations rooted in profitability and market control.

Lessons from the Automotive Industry

Drawing from earlier comparisons, the hosts revisit the automotive analogy to extract relevant lessons for watchmakers.

• Alon's Insights:
  • Timestamp [50:03]: Julia reflects on how Nike manages different product tiers under a single brand, contrasting it with the stricter segmentation in watchmaking. She suggests that brands like Rolex have a tighter pricing strategy, which may contribute to their lasting prestige.

Concluding Thoughts and Future Outlook

As the episode wraps up, both hosts reflect on their aligned viewpoints and the consensus reached throughout their discussion.

• Julia's Closing Remarks:

  • Timestamp [53:48]: "Definitely. So, and it's actually shocking how much we've agreed on this episode."

• David's Final Words:

  • Timestamp [54:34]: "If Hodinkee does well, we all do well. It's a big name historically and the more great content we can consume, the better off we are."

The episode concludes with a call to action for listeners to engage more with the show, suggest topics, and support through subscriptions and shares.

Key Takeaways

1. Holy Trinity Revisited: The traditional lineup is under scrutiny, with arguments for including brands like Jaeger-LeCoultre over Audemars Piguet based on diversity and innovation.
2. Brand Strategy Matters: Over-reliance on a single iconic model may jeopardize a brand's long-term standing within the luxury watch hierarchy.
3. Hodinkee's Evolution: Diversification into retail and pre-owned markets presents both opportunities and identity challenges for media brands.
4. Retail Dynamics: The shift towards mono-brand boutiques reflects broader industry trends but may alienate independent retailers and affect brand perception.
5. Industry Parallels: Lessons from other industries, like automotive and apparel, provide valuable insights into brand management and market strategy.

Notable Quotes

• David Vaucher [02:41]: "If AP continues to only sell the Royal Oak, I think they will do fine. But I also think that they would gain in credibility and sales because I think they're a business at the end of the day."

• Julia Alom [01:05]: "Yes, yes, yes, yes, yes, it's bad... How can you rely on one sole horse in your stable?"

• Julia Alom [12:37]: "A lot of different types of watches, complications, metiers. So diversity."

• David Vaucher [25:56]: "They have tried to differentiate themselves from everyone else. That doesn't really seem to have worked out."

• Julia Alom [30:49]: "A blog to watch has never had a crisis of identity like the one that Hodinkee is currently seeming to be having now."

• David Vaucher [36:49]: "There's just some things I don't understand that contribute to this."

Final Thoughts

This episode provides a thought-provoking analysis of the current state and future prospects of luxury watch brands within the coveted Holy Trinity. By juxtaposing industry strategies and examining influential media players like Hodinkee, The Real Time Show offers listeners a comprehensive understanding of the forces shaping the watchmaking landscape today.

For more insightful discussions and expert opinions on watchmaking, visit The Real Time Show or follow them on Instagram at @therealtime_show.