Many argue that, in the wake of COVID, the odds are now in favor of the biggest luxury groups and that independent players are doomed. LVMH’s gobbling up of yet two more brands this summer, Off-White and Etro, seems to prove the point.
But for the independent cohort, the future can still be bright and the upturn in Breitling’s fortunes proves this point just as well.
In 2017, when CVC Capital, a private equity firm, bought Breitling, the Swiss watchmaker founded in 1884 was underperforming. A new management team, led by CEO Georges Kern, reversed the situation by defining clear priorities for increasing the desirability of the brand and by applying key business agility principles. What we can see, five years into this unfolding story, is how both textbook basics and an original vision, have come together to capture opportunities presented by external trends and to future-proof the brand.
You can’t have enough desirability
Conventional strategy textbooks tell us that brands cannot create desirability without seeming unique to targeted customers. A smart and clear strategy is therefore essential. For future-proofing, these books also tell us that management must decide what to keep from the original business and what to transform. Handling this paradox is crucial; here is how Breitling approached it.
Back in 2017, Breitling’s management felt that the brand ought to capitalize on its enduring and global brand awareness and stay true to the highly sporty and technical heritage of the brand, especially amongst aviation fans. That said, it had to reach out to many more customer groups, including young people.
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The product was key. With its 600 product lines, Breitling was far too confusing for consumers. It trimmed them down to 150 references and got rid of what Kern calls “visual pollution”. Breitling put down three anchors, or collections: air, with its Navitimer theme; sea with its SuperOcean theme; and land with the Chronomat theme and elegant watches. Each collection offers 15 to 20 models. It was an overall simplification of the product offering, which helped the brand leap forward.
Stylistically, the collections shifted to “modern retro.” For instance, Breitling updated its famous Chronomat B01 but kept its distinctive rouleaux stainless steel bracelet (tube-like and linked) as well as its integrated onion crown. It resurrected and modernized the Breitling Top Time, in collaboration with Deus Ex Machina, the Australian motorbike company. (Breitling is the official timekeeper of the latter’s vintage motorcycle championships around the world.)
The idea luxury should be about rarity is also a textbook one. Thus, Bretling cut down the number of retailers to favor those who would invest more in the brand. The company also expanded its own retail network, which today accounts for 30% of revenues (vs 15% five years ago), to foster more direct relationships with consumers.
Just be cool: a 3-pronged approach
This is where the real art of the strategist comes in, as many executives can see external trends, but few are using them to create a game-changing strategic narrative. Breitling’s management has been exploiting mega trends to build three original strategic priorities, with the overall aim turning Breitling into a cool luxury watch brand. They are:
#1. Inclusivity. Before COVID, there was already growing concern in society about rising social inequalities. As such, luxury may well be seen as the epitome of inequality. Breitling’s response to this worrying trend has been extensive.
First, it has eschewed the elitist sports that many luxury brands sponsor, instead focusing on more inclusive ones such as surfing, triathlon and cycling. In the case of the latter. it has partnered with the sports app Strava. Breitling is reaching out to a completely new public, too, by when sponsoring the Drone Champions League.
Second, inclusivity has meant reaching out to Asian consumers, tapping into a region where Breitling was not present enough.
The brand has also decided to open up to women. For Tim Sayler, Chief Marketing Officer, “this started first with featuring women consistently as equals in the new #SquadOnAMission campaign; it continued with the introduction of specific women’s collections and a dedicated female Spotlight Squad, featuring Charlize Theron, Misty Copeland and Yao Chen.”
Last but not least, although Breitling offers $30,000 watches, it has strived to remain accessible by keeping its $6,000 average price, even for Swiss-made ones.
#2. Sustainable growth. A 2020 Deloitte study shows that consumers would choose a watch that is ethical or sustainable over any other watch. While millennials want to continue consuming luxury, how the brand measures up in terms of ESG criteria matters to them.
According to Kern, “We have an internal program of carbon footprint reduction. We are shifting to sourcing sustainable materials and want to be an industry pioneer for recycled and recyclable packaging. We already use packaging recycled from PET and straps from recycled fishnets. We also bet on artificially-grown diamonds.”
At times using social levers for environmental protection and CO2 reduction targets, Breitling has partnered with the NGO Ocean Conservancy. The two firms have co-branded a SuperOcean Heritage Chronograph 44 limited edition, with part of the proceeds going directly to the NGO. It also now offers a funky range of Econyl straps, all made from recycled nylon produced by Aquafil and available at affordable prices.
Sustainability also means more transparency towards consumers, which is a governance choice. In March 2020, Breitling rolled out an NFT passport for each watch, secured on the Arianee blockchain protocol (a French startup). Arianee’s solution blends the phygital and the digital and consumers will be able to get a digital twin alongside their Breitling watch.
For Antonio Carriero, Chief Digital and Technology Officer, “blockchain is way to connect with any Breitling owner, with a compelling ecosystem, eventually also giving customers the instant value of their watch”. Here the vision is to reduce information asymmetry by empowering owners. The bet on blockchain, ultimately, to enable Breitling to manage its own pre-owned business, and to help consumers to trade up and to bypass pre-owned platforms.
For Kern, the tracking solution on the blockchain “is also a way to have traceable sourcing and be more authentic… We are already working to get our suppliers into the blockchain because 10 years from now, it will be the standard way of doing business.”
#3. Casualization. In fashion, there is no better example of this trend than the massive adoption of sneakers in everyday life. For Breitling, one way to respond to a more casual society is to replace the traditional watch store format with loft-style stores. “This means that customers feel instantly welcome, at ease and literally at home when entering a Breitling store”, says Nasr Benaissa, Chief Sales Director.
Another way is to create fun and games. For instance, Breitling has partnered with Drest, an immersive fashion and styling gaming app popular with the GenZ. When the SuperOcean 57 Heritage collection for women appeared on the scene in July 2021, a challenge was launched on Drest where users could pair the watches with clothes and accessories from over 200 brands. Winners could go home with one of the watches.
There will always be a bright future for smart strategists, big or small in size, and Breitling is showing just how.
Digital and accessible, all in the name of agility
For future-proofing, a brand needs to establish its direction. This lends focus and stability to all employees and stakeholders. However, being adaptive and flexible enough to deal with the surrounding turbulence is also crucial. And this is where business agility comes in.
Breitling is applying four of the key principles of business agility featured in my new book Resetting Management. They are:
1.Playing across time horizons
Business agility requires an intensification of innovation in the core business to respond to increasing competitive pressures. Thus, while Breitling continues to believe in physical commerce as consumers’ preferred manner of purchasing, the brand has shifted 70% of its communication to digital and is actively building e-commerce capabilities to create a 360-degree relationship with consumers. It expects that online buying will reach 20% due to COVID; much higher than anticipated for hard luxury.
The brand has also introduced financing solutions with Affirm, a new partner, in order to be more accessible and inclusive. It will have to ensure, however, that it does not dilute its appeal.
There is no agility if a brand does not build a portfolio of future-looking businesses. Breitling’s next bet in this vein is a subscription model called #BreitlingSelect, launched in the U.S. last March and operating online only. Consumers pay a one-off fee of $450 and then $129 monthly. They can enjoy three watches per year and accumulate points with which they can buy a watch from the subscription pool. If consumers do not have enough points, they can add cash. Breitling offers guarantees of authenticity and the refurbishing between users. In the 360-degree consumer relationship model, consumers enjoy bespoke offerings and pricing.
What’s less known is that Breitling used an agile approach to go from pilot bet to larger-scale investment. And it formed yet another partnership to do so — with Crown & Caliber. Before its American big bet, Breitling first tested a program online in which consumers could trade-in their old watches from Breitling or any other brand – for a voucher towards a new Breitling purchase.
This subscription model aims to catapult the brand into the circular and sharing economy, in line with its sustainable strategy. Breitling hopes 60% of subscribers will become buyers. And here is where tough-to-resolve contradictions come in for luxury brands: on the one hand, the brand makes a positive contribution by growing in the pre-owned segment. But on the other, the goal is still to introduce more brand-new watches into the program. The question remains: what is therefore the net environmental impact? Like most luxury brands, Breitling will have to address the tension between circularity and selling more.
2.Breitling’s marketing squads
Whilst most brands go for individual ambassadors, Breitling prefers teams of three; its “marketing squads.” The squads are aligned with Breitling’s new collection segments: air (the aviation pioneer squad), sea (the surfing squad) and land (the cinema, triathlon and exploration squads). Brad Pitt, Charlize Theron and Adam Driver compose the cinema squad.
Although the “squads” concept has its origins in the brand’s aviation background, it happens to also facilitate the more modern concept of agility. For Breitling, having three different world-recognized masters in their profession in each squad, provides more flexibility, different angles and the required diversity to make the brand “cool.” They make storytelling more relevant and richer; the very spirit of agility is to capitalize on diversity for greater customer centricity.
3.Fine-grained customer segmentation
The creation of personalized relationships and the ability to identify customer micro-segments gives a brand much more flexibility thanks to more informed decision-making. It’s a condition of agility.
Breitling is making great strides in this direction. In fact, it’s an industry leader. Using machine-learning algorithms, the brand combines and crunches the data it collects online with the data from its CRM. The brand now has such a fine-grained view of consumers online and offline that it can determine if it should write to customers during weekdays, Saturdays, Sundays or evenings. It can also determine who prefers visuals and who favors content, adapting accordingly.
This capability enables the brand to convert more of the 4-out-of-5 customers who do not buy when they push open a store door than any other brand (in fact, most brands still focus on converting one person in the store and forget about her afterwards if she does not buy).
With this capability, Breitling has been able to grow the conversion of non-buyer, from 20 to 60% in about 100 days. During the pandemic, the brand proved able to stay much more locally relevant than many of its competitors.
4. Manufacturing flexibility
A key principle of agility is to be consumer centric, and to adapt as consumers change. As such, Breitling has reversed its manufacturing priorities: rather than manufacturing what production wants, the company has made its production tool more flexible to adapt the production to what the market wants. Not only does it cut down on unsold stock, which damage prices through grey markets and improve margins, but it also helps with sustainability since waste is reduced. ‘Running a demand driven manufacture plant, totally changed the way we engage with our suppliers, shortening development and production cycles’. says Daniel Braillard, Chief Operations Officer.
By redefining a differentiating direction, using business agility principles and multiplying partnerships, Breitling’s new top management has been able to modernize and future-proof the brand. Independent brands can do marvels with top talent. The unanswered question for Breitling is: with a private equity owner, how long can it stay independent?
FAQs
Is Breitling a luxury watch brand? ›
In contrast, Breitling is the 15th most recognizable Swiss watch brand in the world. It is still considered a major luxury watch brand, but most people recall the Rolex brand more than Breitling. Breitling was founded in 1884 by Léon Breitling.
What kind of person wears a Breitling? ›Breitling watches traditionally appeal to confident, bold men with a healthy dose of testosterone coursing through their veins. Breitling wearers are successful movers-and-shakers, fighter pilots, and world-class athletes – sometimes all three simultaneously.
What is Breitling famous for? ›Breitling has been producing seriously-made, aesthetically pleasing watches since 1884. It is best known for its technical, highly accurate chronographs – the Aviator 8, for example, or the Transocean Ultimate Pilot, which offered simultaneous readings in all 24 time zones.
Is Breitling entry level? ›Breitling is widely praised for its precise time-keeping and is considered the leading manufacturer of aviation watches. The Breitling Chronomat in particular is a smart entry-level watch: an iconic and robust design at an accessible price point.
Is Breitling more expensive than Rolex? ›Rolex Prices VS Breitling Prices
Rolex Prices start at about twice the price of the cheapest Breitling. At the moment, the cheapest new Rolex would be the Rolex Oyster Perpetual 39mm men's watch which starts at about $6,000 followed by the Rolex Datejust 31mm ladies watches which cost only about $200 more.
Breitling is another brand that demonstrates a love of the finer things in life. These watches can demonstrate a sense of self-assuredness. They indicate that the wearer does not wish to boast about his success but is unwilling to hide it. Breitlings can convey power, high self-esteem and an air of ambition.
How can you tell a real Breitling from a fake? ›How to Spot a Fake Breitling Watch | SwissWatchExpo - YouTube
What does a watch say about a man? ›You are dependable.
Regardless of the style of watch, people who wear watches are seen as dependable and reliable. To others, seeing a watch on someone's wrist says that that person is punctual and values not only his or her time but other people's time. After all, time is money, friend.
It is most definitely a bold combination of high precision, innovative technology, and vibrant design. Breitling have equipped the Endurance Pro collection with a Breitling SuperQuartz™ movement, which is ten times more accurate than standard quartz, and is chronometer certified by COSC.
Why do pilots like Breitling? ›The brand has won pilots' favor over the decades due to the functionality and rugged build of the watches themselves, which have evolved over time as much as the planes the pilots are flying. Breitling began to supply “onboard chronographs” for aircraft in the late 1930s.
What is the meaning of Breitling? ›
Breitling may refer to: Breitling (Warnow), a bay at the mouth of the River Warnow in the Baltic. Breitling (Bay of Wismar), a bay between the mainland and the Baltic Sea island of Poel. Breitling SA, a Swiss watch manufacturer.
How accurate is a Breitling watch? ›To earn the much-coveted title of an officially certified chronometer, the movement must meet seven extremely rigorous eliminatory criteria, including a mean daily variation in rate of less than -4/+6 seconds - corresponding to a 99.99% degree of accuracy.
What Steel does Breitling use? ›Breitling uses only top-class metals such as the 316L antimagnetic stainless steel alloy, or grade 2 titanium. Particular care is devoted to the parts most exposed to external influences, such as the crowns and pushpieces. Water resistance is guaranteed by highly sophisticated systems.
Are all Breitling watches Swiss made? ›Breitling Movement
Due to the school of aviation, the company guarantees high quality and 100% Swiss made instruments. They submit all of their products to the merciless test of the Swiss Official Chronometer Testing Institute – the highest criterion of precision and reliability.
Breitling watches are some of the most sought-after due to their outstanding designs, high-quality materials, and timeless durability. Aside from this, they are also some of the most expensive watches on the market. Breitling has quite a few models that utilize gold, stainless steel, and titanium.
How often do I need to service my Breitling watch? ›A complete service is recommended every 4 to 6 years and includes: disassembly, cleaning, exchange of standard movement parts (including certain hands), assembly, lubrication, adjustment and setting of movement function parameters; changing all seals, checking water resistance; battery replacement for quartz watches; ...
What is the most expensive watch? ›1. Graff Diamonds Hallucination – $55 Million. Claiming the title of the worlds most expensive watch is the Hallucination by Graff Diamonds.
What is the Holy Trinity of watches? ›The big 3 watchmakers in the world are Audemars Piguet, Patek Philippe, and Vacheron Constantin. Together they form the holy trinity of watches, and each of these Swiss luxury watchmaker brands set the standard in innovative complications and style.
What is the cheapest Rolex you can buy? ›What Is The Cheapest Rolex. The cheapest Rolex is the 36mm Oyster Perpetual which costs $5,800 MSRP. The Oyster Perpetual is a no date stainless steel sports model that is considered the most affordable or entry level men's Rolex.
Who makes the best watches in the world? ›1. Patek Philippe. Known for inventing the very first wristwatch, Patek Philippe & Co has become a top watchmaker and is one of the most sought-after in the world. Everyone would agree that it would be a disservice to make a top 10 list and not mention this watchmaker.
What kind of person wears a Rolex? ›
People who wear a Rolex are usually keen on details. If at one time or another you have found yourself staring at a Rolex wearer and noticing there is something bold and brilliant about him or her, it is probably because they are quite unique in a handful of ways.
How many turns per day does a Breitling need? ›Most Breitling watch automatic movements can be wound properly by most watch winders. Usually Breitling's automatic movements need to rotate 650 to 800 revolutions per day and can wind in both directions.
How many watches does Breitling make a year? ›Last year Breitling produced 150,000 watches, all of which were COSC-certified. Only 2 per cent of all Swiss watches manufactured receive the stringent COSC certification that attests to the accuracy of the timepiece. The only other brand which has 100 per cent of its production COSC-certified is Rolex.
Does a Breitling watch tick? ›Check for Breitling basics
Breitling seconds hands move with the distinctive and uniform tick of a mechanical movement. Most fakes will be automatics so the movement will be a continuous motion. There are automatic Breitling models so you need to know those details thoroughly in case you do come across one of them.
All genuine Breitling timepieces will have a serial number and reference number as described previously, so this should be the first thing you check for if you aren't sure about your watch's authenticity.
How often should I wind my Breitling watch? ›If it's new, you should gently wind it 40 times (or more) clockwise to fill up the power reserve. If it's not new and it's an automatic watch, you should occasionally wind (gently) it 5-10 times only. Do not worry about winding the watch too much since mechanical watches (automatic) have winding limiters.
What type of person wears an Omega watch? ›Omega watch owners are mainly in their 30s and 40s. 71% of them are men. However, luxury watch owners aged 50+ own more Rolexes than Omegas. The average Omega watch is declared as being worth £3k and the average Rolex is worth two Omegas.
How many watches should a woman own? ›However, when it comes to ladies, it is prudent for them to keep at least three to four watches in their wardrobes. They can wear them for different events and occasions. The older generation of women ensures they step out with a watch on their wrists. They choose the above timepieces as per the dress and occasion.
What does wearing a watch in right hand psychologically mean? ›People who wear clocks on the right-hand face up tend to be spontaneous and candid. High spirited and cheerful. They are sleek and easy to get along with anyone. Right hand in or down direction. His character tends to be very emotional, and perfectionist in terms of timeliness.
Who is the face of Breitling? ›Basketball Superstar Giannis Antetokounmpo
In 2021, he also led the Milwaukee Bucks to win the team's first title in 50 years. Today, Breitling announced that the basketball superstar would become its newest Squad Member, representing the luxury watchmaker as one of the faces of the brand.
Is Breitling waterproof? ›
All Breitling products have a certain degree of water resistance, described in meters or in bars (1 bar ~ 10 m ~ approx. 33 ft).
What watch do airline pilots wear? ›What kind of watches do pilots wear? Professional pilots wear watches by brands like Garmin. Fighter pilots have a preference for timepieces by Casio. Luxury watches by brands like IWC and Rolex are also popular choices among mechanical aviator watches amateurs.
Do pilots wear pilot watches? ›The answer is mostly no. Indeed, some professional pilots don't wear watches at all. It comes down to personal preference. Times have changed, said Mark Vanhoenacker, British Airways 787 pilot and author of “Skyfaring” and “How to Land a Plane”.
Are Breitlings pilot watches? ›Breitling Navitimer - one of the most popular pilot watches.
Why did Breitling change their logo? ›He got rid of the wings to push Breitling to be a commercial powerhouse and become a general brand, not just one known for making aviation-themed watches. The change did not sit well with most customers, but some saw sense in removing the wings, saying the “B” had a cleaner look that added to the aesthetic appeal.
How do I pronounce Breitling? ›How to Pronounce Breitling? - YouTube
Where is Breitling watch made? ›The battery is called a "5 year battery", but they don't last that long. My experience is between one and two years, depending on whether you let the LED display run all the time, how much you use the timer, alarm and other functions.
Does Breitling watch have battery? ›All Breitling Quartz movement watches rely on batteries for their power source. However, some of these batteries, such as in the Emergency II and Cockpit B50, are rechargeable. All batteries have a finite lifespan and will need replacing in the future. Automatic and hand wound Breitling movements do not need a battery.
Are Breitling watches automatic or quartz? ›Every new Breitling watch is a COSC-certified chronometer with maximum average deviations of -4 to + 6 (mechanical) and -/+ . 07 seconds (quartz) per day.
Is Breitling a high end watch? ›
In contrast, Breitling is the 15th most recognizable Swiss watch brand in the world. It is still considered a major luxury watch brand, but most people recall the Rolex brand more than Breitling. Breitling was founded in 1884 by Léon Breitling.
What movements do Breitling use? ›ETA Movements: Breitling has used ETA movements in the majority of their watches for a very long time, to say they have a very beneficial and close relationship would be an understatement.
How much do Breitling watches sell for? ›Depending on its movement and case material, this timepiece can demand anywhere from 4,800 to 43,000 USD.
Does Breitling hold value? ›Breitling watches are a luxury item & as such, they come with hefty price tags. However, Breitling watches hold their value well & can be expected to increase over time. They also last for years & years (some models have been around for decades).
Is Breitling made by Bentley? ›In 2002, Breitling and Bentley Motors began the longest partnership between a watch and automobile manufacturer, crafting the prestigious Breitling for Bentley collection.
Does Breitling have sales? ›For a limited time, we are offering attractive discounts on Breitling watches in the Breitling Black Friday sale. From mid-November, you can get bestseller models such as the Navitimer, Transocean or Colt at greatly reduced prices! Take advantage of the best Black Friday Breitling offers while stocks last.
Are Omega better than Rolex? ›In terms of overall accuracy, Omega wins, since they not only make mechanical watches but also quite a few quartz watches. Quartz watches, as we all know, are more accurate than their mechanical counterparts. Rolex, on the other hand, doesn't manufacture quartz watches anymore.
How do I pronounce Breitling? ›How to Pronounce Breitling? - YouTube
How do I know if my Breitling watch is real? ›Breitling's crowns and pushers are made to absolute precision, so if the fitting isn't precise, or it's oddly-shaped, then it's most likely a fake. Most Breitling watches also have the B cursive logo etched on the crown, in a very clear, precise and centered manner.
What is better than a Rolex? ›RESALE VALUE: Patek Philippe's watches are known to either hold their value or even appreciate over time. Patek Philippe has one of the highest resell values among its competitors with the exception of Rolex.
What watch do astronauts wear? ›
While the Speedmaster was the official watch issued by NASA, some astronauts brought their own watches along: During the Apollo missions, the Rolex GMT-Master was worn by astronauts such as Alan Shepherd, Dr. Edgar Mitchell, and Eugene Cernan.
What type of watch does James Bond wear? ›Since 1995, James Bond has worn OMEGA Seamasters in every film. Over the years, we have also created some very special limited edition timepieces whose special features honour 007 and his legacy of more than half a century of genre-defining movies.
Why do people buy Breitling watches? ›It is most definitely a bold combination of high precision, innovative technology, and vibrant design. Breitling have equipped the Endurance Pro collection with a Breitling SuperQuartz™ movement, which is ten times more accurate than standard quartz, and is chronometer certified by COSC.
What is the meaning of Breitling? ›Breitling may refer to: Breitling (Warnow), a bay at the mouth of the River Warnow in the Baltic. Breitling (Bay of Wismar), a bay between the mainland and the Baltic Sea island of Poel. Breitling SA, a Swiss watch manufacturer.
Do Breitling watches need batteries? ›All Breitling Quartz movement watches rely on batteries for their power source. However, some of these batteries, such as in the Emergency II and Cockpit B50, are rechargeable. All batteries have a finite lifespan and will need replacing in the future. Automatic and hand wound Breitling movements do not need a battery.
How do you say Omega watch? ›How to Pronounce Omega? (CORRECTLY) - YouTube
How do you pronounce Piguet? ›How To Pronounce AUDEMARS PIGUET like a FRENCH ... - YouTube
How do you pronounce brightling? ›How To Say Breitling - YouTube
How long does a Breitling battery last? ›The battery is called a "5 year battery", but they don't last that long. My experience is between one and two years, depending on whether you let the LED display run all the time, how much you use the timer, alarm and other functions.
How often should I service my Breitling? ›A maintenance service is recommended every 2 years and includes: checking movement parameters and watch functions, changing all seals, checking water resistance, cleaning the case and metal bracelet; changing the battery for quartz watches.
Does a Breitling watch tick? ›
Check for Breitling basics
Breitling seconds hands move with the distinctive and uniform tick of a mechanical movement. Most fakes will be automatics so the movement will be a continuous motion. There are automatic Breitling models so you need to know those details thoroughly in case you do come across one of them.