Luxury Retail Insights with Grand Seiko

Holiday Shopping Trends & Luxury Retail Insights with Grand Seiko | Marketing MadMen Podcast

Join Nick Constantino and Trip Job on The Marketing MadMen podcast as they explore the evolving dynamics of holiday shopping and luxury retail. With special guest Vic Johnson from Grand Seiko, they delve into the significance of experience-based gifts, the impact of digital and in-store experiences, and the importance of relationship-building in luxury retail. Discover strategies to attract new customers, maintain brand integrity, and navigate the holiday season with exclusivity and appeal. 🎧💎

Key Takeaways

• The shift from traditional gifts to experiences and services during the holidays.
• The stable demand for luxury goods and the importance of maintaining pricing power.
• Insights into Grand Seiko’s branding and differentiation in the luxury watch market.
• The role of personalized customer service and relationship-building in luxury retail.
• Strategies for attracting new customers and maintaining brand integrity during the holiday season.

Luxury Retail Insights with Grand Seiko Explore holiday shopping trends and luxury retail insights with Nick Constantino and Trip Job on The Marketing MadMen podcast. Special guest Vic Johnson from Grand Seiko shares strategies for attracting new customers, maintaining brand integrity, and navigating the holiday season with exclusivity and appeal. 🎧

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Summary

• Holiday Shopping Trends:
  • The hosts reflect on the shift from traditional shopping to seeking experiences and services as gifts, noting the increasing popularity of travel and exclusive experiences over physical items.
  • They discuss how consumer demand for luxury goods has remained stable, with brands maintaining their pricing power.
• Role of Sales and Discounts:
  • The conversation highlights the constant presence of sales throughout the year, which has diminished the excitement of Black Friday and holiday-specific deals.
• Luxury Retail and Branding:
  • Nick and Trip introduce their guest, Mr. Vic Johnson from Grand Seiko, discussing the significance of Grand Seiko’s new boutique opening in Lenox just before Christmas.
  • They explore the fundamentals of luxury branding, emphasizing the importance of long-term vision, brand commitment, and the perceived exclusivity of luxury products.
• Impact of Digital and In-Store Experiences:
  • The hosts touch on the trend of successful online brands opening physical stores to offer in-person experiences while maintaining their online sales channels.
  • They discuss the value of curated experiences and how luxury brands like Grand Seiko and Rolex create a perception of rarity and exclusivity.

Continued Summary:

• Grand Seiko’s Unique Approach:
  • The discussion delves into how Grand Seiko has distinguished itself from its parent brand, Seiko, through a focus on craftsmanship, clear lines, and luxury. Despite lacking the historical prestige of brands like Rolex, Grand Seiko has successfully positioned itself in the luxury market.
• Culinary and Home Experience Trends:
  • Trip observes a growing trend towards kitchen and cooking-related gifts, emphasizing how these items bring people together and offer a unique experience. This shift is seen as a response to the rising costs of dining out and the desire for restaurant-quality experiences at home.
• Changing Luxury Market Dynamics:
  • The hosts discuss the challenges and opportunities within the luxury market, including the impact of hyper-targeted marketing and the differences between entry-level and high-end luxury items. They highlight how brands like Grand Seiko navigate these dynamics to appeal to both new and established luxury consumers.
• Affordable Luxury and Perceived Value:
  • The conversation touches on the concept of affordable luxury, where brands offer high-quality products at more accessible price points. This strategy helps brands build customer loyalty and attract a broader audience without diluting their luxury image.

• Expert Insights from Vic Johnson:
  • Vic Johnson shares his experience with luxury retail, including his journey from being a salesperson at Macy’s to managing the men’s division at Saks Fifth Avenue. He discusses how Grand Seiko has evolved since becoming an independent entity in 2017 and the strategic partnership with Reeds Jewelers to open boutiques in the U.S.
  • Johnson also explains the technical excellence behind Grand Seiko’s movements, such as the Spring Drive and high-beat movements, and how these innovations contribute to the brand’s reputation for precision and craftsmanship.

  Building Long-Term Customer Relationships:

• Vic Johnson emphasizes the importance of relationship-building in luxury retail. He advises his team to maintain contact with customers beyond the initial sale, ensuring they have positive experiences with their purchases and fostering long-term loyalty.
• Personalization is highlighted as a key factor in creating lasting business relationships, with brands focusing on individual customer needs and preferences.

  Challenges in the Watch Industry:

• The discussion turns to the challenges faced by the watch industry, such as the rise of the gray market and the need for brands to differentiate themselves.
• Johnson explains the value of purchasing watches from authorized dealers like Grand Seiko and Reeds Jewelers, emphasizing the security and warranty benefits that come with buying from reputable sources.

  Attracting New Customers:

• The hosts discuss strategies for attracting new customers to the Grand Seiko brand. This includes offering unique and limited edition pieces that cannot be found elsewhere and leveraging the brand’s rich history and craftsmanship.
• Johnson also touches on the importance of educating customers about the technical aspects and innovations of Grand Seiko watches to build appreciation and interest.

  Holiday Strategies for Luxury Brands:

• The hosts explore the strategies luxury brands use during the holiday season. Unlike mainstream brands, luxury retailers avoid overt sales tactics, focusing instead on offering exclusive, high-quality experiences that draw customers into their boutiques.
• Johnson highlights the importance of maintaining brand integrity and avoiding the dilution of the luxury image by refraining from heavy discounting.

 Transcript

Happy. Welcome to the marketing Mad Men, Nick Constantino and trip job here live from the battery. The air is nippy. Is Christmas time. Luckily, I did all my shopping already because my add does not allow me to wait till the last minute. Everything’s done. ‘S packed. Everything. I’m excited about. I get to enjoy the. Holidays but. How you doing bud?

I’m doing. I did the same I for one of the few few times I got stuff done by 1st of December.

So yeah, they we have a way of sucking the fun out of everything, don’t we? I mean, Halloween starts September 1st, the last, then the.

Yeah.

Halloween is on all the Christmas stuff is there? You want to kill yourself by the music being played the. Time all you gotta. Your head is my goodness, baby. Cold. It’s such a rapey song. How is? How are we still playing this? But that being said, it’s an oldie but a goodie, and I love it. Let’s talk about the holiday. Let’s talk about some things you’ve. I want to put a big focus on luxury because we have a guest coming on, Mr. Vic Johnson from Grand Seiko, who I mean, they just opened a new boutique in Lennox for the holidays. Who? To hear about one of the world’s most prestigious watch brands, opening a brand new take two weeks before Christmas, what better to hear from? We have fun. With Victoria. But what are you seeing out there, Trev? What has stood out to you about the? You know the year past two years, but what do you see out there? And then we’ll go a.

Little bit more specific about luxury. I think in general the last year or so the trends have been. You know away from just things and to experiences or something that really stands out.

Me and my wife looked at each. We said school presence and for Christmas and Valentine’s Day, we’re going to go to. For four. Why in Christ name am I buying more garbage to have when I can go to hop on a plane to London for, you know, not the same amount of money, but close when it’s all said and done?

Yeah, and. And you know, I was actually. Presentation with. The head economist for Huntington Bank, and he actually shared how much the economy has changed this year around service based and experiences.

Yeah, service base. Yeah.

You know, there’s a lot of factors to it.

So why Live Nation’s doing so well? Stocks people.

Well, that’s even talked about that in the. I won’t go there because they’ll take up all our time, but.

Yeah. Yeah. But I mean, a change in demand leads to a change in. But what you’re seeing is is the lower level stuff that doesn’t have the same fan base is going for peanuts on the dollar. The big events SCC championship haunted.

Right it but and and you guys get involved in it, but it’s it’s the events with the Braves. Events with, you know, Georgia Tech in Georgia. And it’s these experiences, VIP packages and I think I think you’re seeing more and more of those. I’m actually seeing more of them offered. Right. I mean, we’ve seen it’s been a trend for a.

Few years, but it used to be something that was only available to the bourgeois and Uber elite. And now.

Every year. Or the.

Been for sure for sure.

You know, it sponsors now. Now anyone can get in and.

All you do is sell your first. Child and you’re in. Exactly. It’s that simple, but.

I do see, I think that theme is coming out also in the holiday season and some of the.

Yeah, yeah.

Gifts because it’s something unique.

Yeah, Jesus has the world like that. Kind of.

I’m not giving you something, everybody.

Right.

Where you can’t go to the store and buy it’s curated. Another word I can curation is really important, right? It’s an experience that’s done for you. That’s why people love the on location, all those things. Get to everything. Care for you. You to spend that much money. Do you want to deal with? Hassle. So I I agree with that. Now one of the things I’ve noticed. Sales suck. Everything’s been on sale the whole year.

Yes.

Christmas. It’s not even a sale. They’re just regurgitating whatever you search for the year and said buy this. So like I I some of the fun has been taken out of it. No. Like, why are people lining up on Black Friday? ‘S on. All the time nowadays.

So lining up, that’s true. OK, wait a second.

Well, like queing up online.

Up. Wait a second. Did you actually go out on Black Friday?

Hell no, I’ve not been there. Store and God knows how.

I was playing golf on Black Friday.

Actually, I played golf the Wednesday before Thanksgiving, but not but look, but but again. If you. Me there was a store that I gotta go into have this earth shattering experience. That was gonna I was gonna buy it and I loved it. I would go. They don’t exist. They don’t. Oh, you know what they are now in the mall. It’s all the online people who had success online that some investors had opened a store, so they open a store and in that store, like all you do is try the stuff on and you go buy it online.

Yeah.

And like they only now, I think there are some value to. My wife got my wife an aloe gift card and they only put it on sale like 4 * a year at 30% off. It’s always the same sale. It’s on everything. OK, there is some value to that because even three months is enough to know looking at a full price, when you see 30% off, you’ll buy it.

Yeah.

I think there’s to that and I think that bleeds in well with luxury. That’s luxury to me, the definition of luxury is somet. It does not have has the pricing power to keep at a price that people want. That’s luxury to me because. Anything that has the band on it, the. Is worth more.

You sold through Macy’s does not have luxury. It.

Well, that’s why they’ve caught so.

That’s.

I also know freakin omics did a great freakinomics did a great episode on is the parade the most valuable thing they have.

Why there’s a sale every that’s a sale every day there.

That’s what they. They’re like, dude, you couldn’t even keep Nike like it’s an offense to Nike, but Nike makes the full gamut of clothing, and I couldn’t even keep it.

I bet. Yeah. Yeah.

But the the, the the tricky part. Macy’s on Bloomingdale’s. So what do they care? Put all that stuff in Bloomingdale. So they have both ends of the spectrum. So again, that’s corporate greed more than is anything else is corporate greed, I think. Luxury, I think. The. Market has not changed at all, right?

Yeah.

You have to be committed to a brand. You have to have a long. Vision. You have to have. I hate the word, but you have to have people of. Wearing your. That’s never going to change and and and we’re going to talk about Grand Sico with Vicki because that’s a great example. Grand Seiko. I gotta make sure I send it right. You know, Rolex is the pinnacle. Probably of luxury. Probably in the world is probably the most synonymous thing.

Yeah, sure.

And the reason I say it, but what?

Don’t know. Rolex is an institution. It’s not a for profit company. Don’t have to declare earnings. So all their reason is because it is a perceived sense of not being able to get it. That being said, they sell more Rolexes than I’m. Watches in the. Anyone can get one if no channels, but because they don’t share that information.

Yeah, they had.

Nobody has a clue how many Rolexes are out there. So and even if you look at, there’s what, what do we have 7 billion people. Right. And they sell 56 million a year. That’s .01% of the people even getting access to it. You still have that perception of not seeing it. So I think they’re the pinnacle. I think Grant Seiko has a great brand themselves and they are approaching this differently from Japanese. Been more craftsmanship. Clear lines. But again, they’re opening in Lennox. Mall, a Japanese watch store boutique without the pedigree of around right around Christmas. It’s going to be a fascinating conversation. Else you seen out there?

Be. You know, I think and and you pray more in this area, but I’ve seen. More around the. Let’s call it to the kitchen. The cooking. I mean it can be, you know, product, seasonings, it can be you name.

Yeah.

But I think this idea of let’s give something that while it is a product, it brings people together because people enjoy. The art of cooking and the entertainment and things of that nature, and I think it’s been going for a year or two, but I I see more of that this year.

This year, I think that is a over calculation knee gut reaction to the fact that we are going to restaurants are going. I think that there are so many restaurants out there that are going to fold and the reason is they’ve gotten so expensive and they have to staff, they have to have people. They’re thinking people are going to start cooking at home and they want that same experience that they get in the restaurants because it’s following. Trend. The hottest restaurants in the country have. At every. Michelin star everything are all like these weird cuisines from parts of the world that were ignored, right? You’re. Not Mexican, but like the South tip of the Baja Peninsula in this one town. That food. Georgian food from the country, Georgia.

Peruvian Ruby bring back.

Proven food was popular for a long time, but yes, the first Peruvian restaurant in Atlanta just opened. Insanity.

Yeah.

So that you see that and I think it’s just following those trends, but I I really do think that people realize how expensive it is and you know give you an example on the high end side, the bourbon industry.

Uh.

Is getting demolished right now. Why they’re selling? Full of wine right now. Like it’s just so all the. Gifts in the world and wine’s a great thing. Not if the person doesn’t drink, and I think people are more cognizant. More loud about it. If there was a person who didn drink, he didn’t walk around telling people he didn’t drink. Every *** that doesn’t drink like I don’t drink and I feel great. Like. That’s none of my business. Why are you telling me so? I think a lot of that shopping. They’re trying to follow trends and get out ahead of it or reacting to trends, but that’s been the. As all this time.

Yeah.

What else are you seeing?

You know I. I think that everything is decorated for so long that everything becomes a holiday experience that by the time Christmas comes it just it just done with it, like everything has to be decorated, every mall, every place, every store, every business, everything is decorated and it takes some of. Fun out of it. Like it used to be, you go to 5th Ave. to see decorations and it’s like the most amazing thing in the world right now. 3rd House has to have a whole graphic display because it’s become so cheap to do it ’cause you buy everything from China for? Nothing. So I think I hope we get to a point where it becomes more special and more about the moment than all the crap leading into it. But we shall see, my man. We shall see.

Yeah.

We shall see. I also think that the luxury market hold at as a whole is in for reckoning. I think the targeting that people are able to do.

Really.

With customers, if you have a brand and a really good brand. That you don’t play that game and you establish a brand once you do have access to targeting income levels and you can really hone in on who your market is, you’re going to be unstoppable. Shoes is a great example. They didn’t start that. They built their demand the old fashioned way, and now they go in and hyper target and they are.

Unstoppable right now, one of the things would be interesting too, is to see. You see their perspective of the difference between I call it. Bite size, luxury and larger luxury items such as, you know, expensive cars or 86 figure cars.

Yeah, you can call what is. Could call a fake. You could call it as fake lungs Riggs level luxury. The watch brands, watches and watch brands are a.

‘S whatever. Their luxury within their category.

Example of that. A protectfully perpetual is $250,000, right? You know.

But you can. Get a $1500 luxury watch.

We’ll just. It or less for the.

Rest of your life and it’s a lot different than you know, buying $110,000 Maserati, right?

Yeah, cars, cars, the. I have a genesis, my Genesis entry level. But if you drove my car in $100,000 BMW, you would not feel that much of a difference. I think you’re. You’re talking about that entry level luxury has become an area of focus because it is. Look, if you get in an entry level, you’re more likely to go to the aspiration or bigger stuff also. That’s why Mercedes has always offered a $30,000 car.

Yes, Sir.

Don’t make money on.

Piece.

It’s a piece of crap, but they’ve done it.

A family. Want to watch and you’re going? OK for another 3-4 hundred dollars. I can get you something. You’re going to think about and have the memory for years and years and years.

Yeah. And I cannot wait to hear how big markets are because insanely competitive category, if you look 5th Ave. used to be closed and housewares it is freaking watch after watch because the margins are so high and because it’s become such a desirable thing to show.

That’s an affordable luxury.

Your wealth. You know it’s cars and. I mean, you know, I’m not going to say who told me stripper in Vegas, but the only thing people look at to determine your wealth is your shoes and your watch. That is from a stripper in Vegas whose only job is to discern wealth immediately. So shoes and. So dudes are listening out there and you feel obliged to be at a strip club. Sure, you got nice shoes.

His name for me? For me, the opposite would be like rare old tennis shoes and.

Nice. Watch on.

Did.

1. Do. The relatives Mr. talking about strippers. But but but the good ones.

Hey now.

Gift cards away. You never.

Well, now you know how to either defend yourself or go on the offensive. If you’re going to. Out to Vegas, I guess.

That’s a move, so I can’t wait. Get to Victoria. Trevis will be the last episode that airs before the holidays. So happy holidays to. Happy holidays to everyone out. You’ve been listening to the marketing amendment on Extra 106 three and we’ll be right back with Victoria from Grand. Boutique looking forward. Welcome back to the marketing Mad Men Nick Constantino here with trip. And we’re going to keep on right plowing through. So we talked a little bit about our special guest and I say special for many reasons. One, because it is actually one of my most favorite brands in the world. Love everything they’ve done. But we’re talking to Victor Johnson, who is the team lead. Do we want to call?

General manager of the new Grand, Seiko and Reeds Partnership boutique at Lenox Square.

So. A lot to unpack there, but first and foremost, let’s talk about Grand Seiko. So one of the things that so Seiko is a huge mega company been around for a long time.

This 1860.

Most people probably perceive it as like $50 watches that are like Mickey Mouse on them and stuff like that. So my first question before we get to your background, how does a brand completely set up set off a separate line and now price it at the five to $25,000 range? What did you learn in the experience of seeing how they’ve positioned the brand? About how to go upscale because it had to be a huge learning experience for you.

It was a huge learning experience, Grand Sacles, one of those brands, have always been infatuated with, didn’t know a lot about until Reeds reached out to me. But Grand Seiko was was a division of Seiko Seiko found in eight late 1800s in Japan. Grand Seiko started in. 60 and up until 2010, you could not get a Grand Seiko watch. In the United.

Well, could.

You had to go to Japan.

You just go. Channels anyways, there are ways there are ways.

You had to go to Japan. But in 2010, we started some distribution and then 2017 Grand Seiko broke off into a separate entity. So now Grandseco is his own company. And you you can get grants that over the United States in. Parts of the world.

Yeah. One of the things they did, a really good job of was. Originally it was a Seiko logo with the Grand Seiko logo between. So it was almost what they did with hook line and Genesis and you kind of see that spin off. I mean the the evolution is it’s it’s just cool because you actually see the evolution again if you’re a watch guy, you can go on eBay, you search grand psycho, you see this crazy evolution of what they were to what they’ve become. Talk a little bit about I know precision and I know all those things, but talk a little bit about the movements because Spring drive in in what I know about watches is is, is, is high of level of watch making. There is talk about that and how long. Took to actually happen.

It’s a. Level of watchmaking and we test our watches to be certified better than cost certification which is not used by Rolex Omega other brands out there so.

Yep.

Yep, that is the Swiss certification card.

Chrome, Chrome, Chrome. So ours, we actually do our own house. That’s one second plus or minus better than cost rating.

That’s something we hang our hat on. Jaffe’s craftsmanship at its best. Our finishing is called Sriracha, finishing a zeratsu finishing. Sorry.

You’re just hungry.

Finishing, but it takes a watchmaker five years to learn how to finish our watch.

But you can see it visibly, even from afar. One of the only watch. I see it in yours, but if you look from afar, it looks like a mountaintop, like the peaks and valleys of a mountain and snow.

Right, right.

Is unbelievable thing.

Not as in Japan. In 2017 began, we can’t became our own entity. Started opening. The partnership with reeds here in Atlanta, we’re the 4th Grand Seiko boutique in the country, so we’ve got Grand Seiko in the front. Partnered with Reeds Jewelers out of Wilmington, NC. An 80 year old family owned business and. Our. President, Mr. Allen, he’s always wanted to come back to Atlanta and watch space and grand cycle provided us a great opportunity to do that and be in Linux Square, one of the most luxurious malls in the. States I.

Love. And again, I wanted to unpack the watch stuff first, because there’s a lot more to talk about for marketing. The other thing that I love about Grant is that. Most people scoff at Quartz watches, but the way they built, I think it’s the 9F the model. But they build a quartz watch that is. Mean it’s more. I mean, it pretty much will never. Will always be on. I think I’ve seen a second by year.

Go down a second. Year maybe?

That crazy.

15 seconds of the year, but it’s it’s an amazing move.

But it also has the sweeping hands to look like an automatic. Is the one thing those snobs they know. Little thick. Thick. That’s a quartz watch because of vibrations. They. It’s a sweeping hand and it is a pretty thing to look at, so I I I know the watch not to how they feel about quartz, but as a. They put a lot of time into even their quartz watches, which is a powerful thing, Tom.

A lot of time on the courts watches a lot of time in the movement and one thing people don’t know about Grand Seco. We’re more of an attilae brand. We the components are made in Japan in one of our two facilities, but each watch is built by 1 watchmaker. So it’s not a, it’s not a Miss assembly line. It’s not a machine, it’s one man build. Watch individually, which is, which is amazing to think about in today’s.

Yeah.

Sure, where watches are spit out day in and day out, hours are really a la carte.

So how do you tell that story?

Just like. Did. Yeah, there you go.

That’s why here.

I got just. Grand sake. Since 2017, we’ve been our own entity. A lot of people. Don’t know about. So when we come in and clients start asking questions, tell me about this, is it secure grant security? Tell the history of the brand. But we also say look, the movements are amazing. The cases are hand finished. And one watchmaker makes your watch from start to finish. A major selling point.

Yeah, but they have the. Because when you hear that you assume 30 forty $50,000 more probably. So they have the scale and they’ve been able to make this for the everyone can have access to it, which I think is also a really powerful tool.

Right, yeah.

I’m not saying anyone can afford to buy a $3800 watch, but I’m saying most brands don’t start their price level there, where it’s relatively attainable and man, you don’t have to change a quartz watch battery for. Years and if it’s working one second a year, that’s insane. When you think about it.

Amazing. Amazing.

Value proposition.

And one of the things we learned in training is we have the HQ team come down and help us out is I’m a boxing fan, so this kind of resonant. With me Grand Seiko, we punch above our weight class.

For sure.

We’re a welterweight or a middle weight that punches like a heavyweight for sure. And you see a high beat movement or one of our GMT. It’s selling for anywhere from 6 to $7000 with all the work you put in that another brand would have that watch. Probably north of 10,000.

For sure.

You get a lot of watch and you get a lot of history and prestige.

Value. Price. Yeah, so high. Let’s cover that one real fast, because one of my favorite parts, high beat means it.

Beats at 36,000 for 36,000, basically.

28 it’s 36, so it’s going.

Every six, 36,000.

It goes faster and suits all the way across, which is another probably and for those that. Don’t know the way watches work. You wind or spring, or in the sense you wind up a spring, which is why it unwinds and how the watch moves. If you’re doing that faster, it should go out of power quicker. But it’s still got 60-70 hour power reserves.

The the.

High Beast got a three day power. 2. We’ve got some of our movements that have an 8 day power, so just absolutely.

Alright, so I’m done geeking out trip so to watch. So let’s rewind a. So you’re a expert in the luxury retail? Space talk a little bit about how you got there and talk about.

What the heck that means? I’ve been blessed. I started my career in the late 80s in Atlanta at. I was in a salesperson executive training after about five years at Macy’s.

Oh, we have a. Of questions. I think we’ll end with a little talk of where went wrong with Macy’s.

I can tell you over.

Go out there. Half that conversation at the.

All right, let’s make sure we have a great segment here first.

End. Know segments. I. I was blessed to be recruited to Sax 5th. I was at the Saks here in Atlanta for eight years. My last couple years I ran the men’s division. Was a group manager.

Yeah.

Got selected to go out to San Francisco in the early 2000s and when men’s clothing was still king, guys were buying 678 suits a year. Armani’s in your Brioni. So I came back to Atlanta in 2002 and I was been bless. To be recruited some great. I worked for Ralph Lauren, Giorgio Armani. Spent five years at the Torno. Store in Atlanta so and as a watch geek, that was a dream job spent a couple years at the Zenyat boutique and I’ve always been blessed to be recruited to to different things and I was coming back from lunch when they and saw the Pxg watch store being.

I’ve ever. That’s it, yeah. Yeah.

Built went home, updated my resume and I got to work in. Golf space for three.

Yeah, yeah.

So but this opportunity with Grand Seiko came about. Was really cool. Reach back out to. It’s having seen my photos on LinkedIn and my history. That was a watch. They’re really trying to launch the brand in Atlanta. And I was fortunate to be right there at the right time with reeds and grants a key.

Yeah. And it’s you’re going from something like PhD, which was a complete startup in the luxury space, which is very impossible to do, by the way. Don’t get many startups in luxury that they’ve been able to do. That’s another story for another. But Grant Sego they more have the pedigree. They’re coming into a new country. Are very traditionally Japanese. Yeah. And so this is a, you know, this is still a different country, Atlantis, a different city in a mall, which is not as big there. I have to imagine that that search took a long time for them to find the right person. But what was it about the connection you made with them that they felt like you were the right guy?

I think my history in luxury in in the market, my time in watches. And being able to be a part of, like events in golf tournaments, to really just get the brand out there, that’s what we’re doing. Sorry here today if you want to get the.

For sure.

With grand second.

The storytelling is unbelievably important.

With the family partnership with Reeds Jewelers, it’s great. Got reeds, has stores all over the. We’ve got 65 stores as far north as Delaware down to Tampa over to Texas, but this is our 6th, what we call Mono brand store. We ran three stores for Taco. In different markets, we have an Omega boutique in Charlotte, A tag boutique in Charlotte. I would just open the Grand Seiko reads combination here in Atlanta.

Yeah, I I love it. And I think it it opens us up for a little conversation in the watch industry as a whole. So you mentioned a lot of the pedigree. Rebrands we don’t need to get. The brands, but. About how they sell their watches and. A lot of people are trying to fix and change that model. Want to go more direct to consumer? Want to remove the. They want a little bit more control, you know, even with Rolex buying Butcher, who now owns Torno, has created this whole chain of events. Does protect the leaf really want Rolex selling them? Talk a little bit about the space and and how we’ve gotten here and how a partnership like reads and grants came about.

It’s an interesting partnership because for a while you had stores like torno that had eight different watch brands and then of course there was a competition, watches of Switzerland mayors. They had Rolex, so mega. So you had these interesting. Positions where big stores had met multiple. Brands now brands are kind of going to go out on their own content. Grandseco wanted a partner and be in Atlanta, so we partner with reeds. Got other brands and. They’re finding it interesting where the brands can supply the watches and companies like Reeds will supply the manpower, the managers, the advertising. It gives brands brands like Gran Seco the space in a market. But being around brands like reeds to supply the manpower and the selling know.

How? But does it also allow them? Partner reads in this case to. Extend outside of just watches because of your consumer with but still having the focus on Grand Seiko.

Absolutely. It’s kind of a a, AA, AA double win for us because we got the grand cycle brand out front. Have the reeds in the back, but we’ve got our own online store. Let’s say you walk in and you have a great conversation. We sell your grand Seiko, but you know I need. I need something for my wife so I can pull up the iPad. We can go through the reads inventory and you can pick out something for your.

Right.

We call it DTC direct to consumer, can have it in your House in a couple days and you could soften the blow by that watch.

Yeah.

Didn’t need. With a piece of jewelry for your wife.

Or the other way you’re like, wait a second. I’m about to spend 30 grand. My wife.

Right.

Deserve something here?

Exactly.

This is not how this works.

Yeah, yeah.

Nick and I talk a lot about lifetime customer value and I think that’s one of the intriguing things in the luxury watch space is not that people may not have a couple. Of. But how do you create that larger lifetime customer value? It sounds like this is an opportunity here.

Oh it it it. And our our our President, Mr. Alan Zimmer, they believe in not just family business but treating customers like. So if I have a great relationship with you or Nick and we’re still talking about watches, you know, oh, my God, my anniversary is next week or the big holiday coming up. Christmas. My wife doesn’t know. She wants, like I said, we pull up the iPad and we search and we find that perfect gift for you.

Yeah, yeah, I love it. Think it’s. I think it needs explanation and I think it it you need to be doing things like this because it’s jarring, right? Like oh, here are these gorgeous watches. And here’s this boutique in the side, and like you have to explain to people the setup and why it exists and why grandico grandeco went to go to reeds, right because of the pedigree you guys have. And it’s like one of those match made in heaven. It’s not. Women by this and men by this. Are plenty of women. Nice watches and plenty of grandsea watches that are made for women.

It’s funny in that space, some of the women watches are, you know, smaller 2830. But we’re seeing women in the last few years in the Watchmen. Business they’re buying that 3840 million block.

Isn’t that? Because men’s watches are going smaller, so they’re.

Women want to go, so there’s kind of this really odd dynamic and like you can put a watch that’s a 38mm next to one that’s 42 and you can find A use for both watches.

Yeah, for sure.

The for for years it. Everyone was going bigger, bigger, 4446, even some 48mm watches. Now we see it kind of coming back to where that classic look that 38 to 42mm.

Spot. Yeah, so.

Yeah, I only got 2 big, you know, the iPad was actually. Your wrist, that was.

Breitling bud. I’m gonna go. I’m going to go a little off topic, but being that we will, this episode will air this weekend.

On. Sure.

Mean. Holiday season is what is going on in the mall. You’re. You’re looking. I mean, I’m. I came in to see you and it’s the first time I’ve been in the mall. If I’m being honest around the holidays and I was shocked most of the stores are actually just online brands that have opened a store. What is going on in the mall is this. Demise of the mall really happening? It looked like there were plenty of people in there. What are you? Let’s take say, go and reads out of this. What are you? Going on in Lenox mall.

I’m seeing a combination of things. The whole Black Friday as we remember it years ago where it’s this mass rush to the mall. That’s really. Slowed down in the last few years.

Yeah, they’re also pacing the sales over.

The end sales start in October. Black Friday. So people are much more deliberate. They want to find what they. They want to get in and out, whether that’s in store. I think the key for brands like any brand, a luxury brand is going to be relationship. If I have a relationship with you that makes you want to come to the mall on a Saturday at 3:00 to pick up that watch because you could easily go online and put in a couple of numbers, put your credit card in and get it shipped to. House. But I think the key for luxury going forward, whatever brand you’re in is is. People want experiences and they want relationships. If we can deliver on relationships, the business will come.

The idea of.

The easier said than done.

Personal consultant, right? That understands you and your family and they call you up in September with an idea.

Yeah.

And I tell Mike, my colleagues all the time, people that work with me, I don’t say work. Say work with me. Nick just bought a watch from. Don’t just call him when he’s having talk about another watch. How’s your? How was the event you wore the watch to a special event? Did it go? Build a. That’s what keeps long lasting business.

Yeah, and I.

And what’s most brands worth it be the big department stores like Demon Sachs. It’s more about personalization these days than it is just about consuming.

And I love what you said because we’re taking about. It’s not just about take over the watch industry, but is a lost art. Were talking in previous episode just customer services over it doesn’t. It’s impossible to get ahold of brands and people don’t understand the lasting impact that those poor. Make right. So if you’re going to invest all this time in the real estate and the training the people are they equipped to have the conversations that extend beyond just the products in which you’re buying.

Yeah.

If they’re not equipped to do. Then they’re just salespeop.

Squirrels fear squirts.

Le and we have done a very poor job of breeding clerks and it’s loyalty is out the door. We know that. It’s really hard, I imagine. To get people one of the things that about tornado, well, it’s impossible to not show favoritism, right? If you’ve been a Rolex guy your whole life, how are you not going to push somebody to Rolex, right? Know what I? It’s like when a player in the NBA came from New York. Do you think they’re going to walk into Madison Square? Be like, Oh my God, this is the best thing in my life. Can’t hide that so, but for you guys. Have a honed. How are you training people? Is the. How much of it is, hey, because you better have that product knowledge if you don’t, it’s going to be possible.

Well.

To build a relationship online shopping and. Most clients know more about the what you’re looking for than than you do, so you’ve got. We did the extensive training, studying. We constantly drill because to go to YouTube and if there’s a watch I like, if it’s a slow period, I’ll tell my thing, pull that watch. One you like is easy to sell. Take about for one. That’s you’re not as familiar with, so learn it. When the client comes in. There’s a it’s almost a give and take in it.

Yeah. So you’ve done a good. So that is about the clients who are already. For you, OK. So let’s talk a little about them. There’s two things that. One they go look for a watch and they look and they have Gray market, Juma shop and it’s 12115. Dollars. So what is the message to those people as to why they should come see you in the boutique versus buying that that? Discounted version online.

There’s a few. One, when you buy online, you don’t know where the watch has been, who’s owned it, how they kept it, how they took care of it. When you buy a watch from grand sake or reads, when you get the history of reads, which we back all of our watch. Our warranty Grand Seiko offers a five year warranty from their timepieces and if you buy it in a grand Sequo boutique like we have. You get an extra year, so you get 6 years of warranty on the watch. That’s something you can’t buy from. You don’t know who had it, who touched it? If it’s been open.

And grand cycle will not have the warranty apply to something bought not directly through them because again, they don’t have that control and they need that controller.

Parts.

Is losing money.

Yeah, when you bother watching at the store, I’m gonna actually do the warranty for you. Go on the website and link it to your watch right before you leave.

Yep, great.

Yep, there’s a lot of security in vying from venue. When you buy something online, you don’t know what you’re going to get.

That’s valet service. That’s what people. Yeah. What about the? Because again, I’ll I’ll learn out for one more second trip. About the boutique. The ones you can’t get anywhere else. Ones you. Get online. Some of those colour colour. Show me that are just one of a. Talk about those because I think that’s as big of a draw to the store as there is.

Huge draw. In fact, we the funny story. We opened store in October and Grandma did save some of the limited edition pieces for us that were sold out throughout the country throughout the world. Saved for the boutique. We had the gentleman come in and he’s been looking for this watch for months. Couldn’t find it. And I said, well, hold on. But I got a surprise for I go back in the safe and pull out this beautiful. The Tokyo lion. Stainless steel red dial chronograph fantastic. Watch. You bought it on the spot. So there is some uniqueness about that when there’s only 1300 and more. Sort of a sweet. Right for for grants like up.

Number, but you can’t give away too many because then the limited edition, so you can’t. I promise that experienced everybody, but I’d imagine when you give that experience to somebody, their likelihood to come back. Triple budget I.

He bought. He bought, he bought another watch that so exact, another limited.

Let’s be. Honest.

So we’re actually going to start what we kind of call a writer first refusal for some of our VIP clients because those watches do come out in maybe if it’s 1000 unit worldwide, the United States may only see eighty of those watches. So each retailer may get one or two so.

Sure.

And that’s part of the changing of the watch industry is so look the the quick version of this, which I’ll naming names is there are some brands out there that have had the benefit of creating their own demand because no one knows how many watches they make so. They have perceived huge amount of demand when realistically it’s really just a regular supply demand curve. So a lot of brands are trying to fake their way into that and everything is. Or they trying to mark it up. Is worth 4000. You get it for 250. And I think that was a trick for a little while, but I think we’ve the watch industry has weaned out a lot of the Bitcoin millionaires and a lot of that stuff, and it’s starting to become real again.

Uh.

You see brands, they’re changing their strategy. Know you mentioned tag. Know they’re. They want their own boutiques. They botched. They were devaluing. You can buy $400.00 tag, no ones going to buy it $14,000 watch if you can buy. So talk about that. What the future looks like and how you’re being trained by Grant Seiko to talk about, you know, these brands. Is what a limited edition is. This is how we control. This is how we regulate. About that for what it looks like for.

The next couple of years, I think it’s going to be great because as the ransack at one point we had regional limited piece. Now we’re doing those worldwide, so you’re going to see not a lot of limited but special pieces, but there’s also going to be that focus on the core collection where it’s the whether be the diver or the GMT where that watch is going to be available all the. But for the collector, those limited edition pieces are going to be even more valuable because. Because we delivered.

It sounds like there’s actually a strategy. So you’ve got a portfolio strategy that is looking years into the future unlike what some of what you described was people flash jumping, jumping on trends, jumping on opportunities and not thinking about what’s the longer term pretty sure.

Well, for the record, I’m. Quote me if I’m wrong, I might get the years wrong, but the springdrive moment was made for 20 years before they actually put it out there. Something insane like.

Before they put it out.

So like 80 years before they put it out. So they started working on something and just the movement alone took 18 years. If you’re going to put that much attention to a movement, you better have a plan for the future in the long term.

Right.

Think. Fantastic.

One to get the amazing thing about Gran Seco, you can sure you feel that when you. It the way ’cause we’re. Make our own steel. In Japan, we make our own titanium. So there’s a density and a field to our watches that don’t feel like.

Yeah, tactile. And that’s and it’s, it makes its way through the polishing like you talked about ’cause, there’s that.

Friends.

There’s many other kind of polishing and special things that they do. You know the snow. Is one of the most famous one just because of the kind of white and how it looks the lacquers I mean again. I’m trying to avoid nerding out on all the watch stuff, but you know one of the questions we’re going to when we get back from the break, especially we’re going to talk a little bit about. Great for people who know the brand. How are you? Ambassador to get new people to the brand. I think that’s equally as. So we’re going to come back on the break with that before we do. What does the holiday season look? You can’t put sales up OK and destroys a luxury brand. The word sale is almost dirty, OK. So what is the? What differentiates you in the holiday? Do you do? Because everyone else has have a. Are you just saying? Oh, you know what, you’ve on your sales driving to the boutique and we’ll we’ll walk them in here once they’re already in the mall. The strategy.

About. Engagement. Getting that client in because as they come in through the mall and we don’t do, we don’t. Not on. We’re not a sale brand. We do have some promotions on the Reed side, but Grand Seiko is a full price you’re in.

Right. Which helps you because now you get into if you come in for jewelry. Not saying that chance is 100. But. You can have the disposable income to buy a nice piece of jewelry. You probably. Them by a nice watch too. Correct? Correct.

So we’re seeing that again, clients are more direct. Know what they. They’re coming in with a mission. Guys are. I want to see these three. They may know the name of the watch and the model number better than we do so for. Plus it’s about getting them in and giving that education and just. Facilitating what they want to already already have it.

All right.

And that true customer experience?

Correct does it.

Do you see? Let’s let’s do dirty words. Do you see people coming in coming to see you, and then they buy the watch online and someone else?

No, we.

That’s important.

We’ve actually had people who shop a look online and they come in sore, so there’s still people that want to come to the brick and mortar store because when you make, it’s not like you’re buying a.

Thank God you.

A shirt or a shirt or a pair of shoes. A watch is an emotional investment. I tell guys all the. Unless you get a Holy Grail watch, you’re not buying it for the investment. You’re buying it for.

The emotional attachment, if you think you are, then you’ve already have the money to buy it and have the back end set up.

So the emotional connection for the watch is and the experience is just as important as. Topics I think all.

Time, but I think all watch people go through those phases. I first by watching it was like Swiss watch and I was like, OK, well now I’m bored here. Then it became complications. Then it became inhouse. Movements and you’re always searching and that’s not how it does the watch. Talk to you. There a connection that you feel and let’s be.

Honest. Really. Do it. How you.

React and do hot chicks compliment you. Let’s be honest. Let’s call what it is so.

Hot chips are cool guys like. There you go.

That’s all you need. I tell you need in life.

Great. Well.

All. So we’ll we’ll be back after the break. We’re going to continue the conversation. We’re going to talk about getting new customers and we’re going to also talk about where Macy’s went wrong. An extra 106 three, right? Welcome back to the market amendment on Action, 106.3. Had a sudden herpie flare up, so he left us. Me and Victoria are here and we’re still talking. Victoria so. Talk about the store, talk about where it. Talk about a fine. I know you’re doing a fun event. I see sip and shop and honestly like that’s what I make my dumbest decisions and all my greatest purchases are when I’m drunk. So talk. Talk. Talk a little bit about. Talk about the location store where it is in the mall. Get. It’s a big mall where it is the incentives for people coming in and talk about the sip.

And shop event we are right in the middle. Middle of Lenox. We’re in between Bloomingdale’s and Macy’s on the main level, just across from the Mont Blanc store, San Jose store. We’ve got a really great. Location in the center of the. You can park at any of the parking lots and get to it’s relatively easy. We’ve been in. We opened October 12th, so we’re coming up on our second month in the. So it’s it’s a really fun time to be a part of this brand and be part of grand. And Reed’s Jewelers. So.

Yeah, you love. And look, this is what I tell people. If you’re shopping and you’re bored and you’re overwhelmed, this is a tranquil space. Enjoy yourself. I love. I mean, there’s something about. Like and we’ll talk about what Macy’s were wrong, and I don’t want to bash them. But you walk into Macy’s and look like someone took a grenade. In the middle, the clothes just fall wherever they do, and that’s it. It’s not. Not a good experience, it’s nerve. It’s like I can’t find what I want. You welcome to Grand Seiko and again that influence from Japan is abundantly there, but it is calming you open with the heritage collection so you’re not overwhelming them with the sport models, right? The hair you come in, everything is nice and tame. Pictures are easy, clean white lines. Go check it out. Even if you don’t buy, it’s not a bad thing for you not to buy.

It’s.

Understand the. Learn it’s half. Museum if you do it the right way.

It’s an elegant it’s an elegant. They did a great job building and it’s an elegant space with a really. Shopping experience.

Yeah, and not to bash any other brands, but there are some brands that do the. They’ll hit you in the face with all these models and sports, and which there has its audience for, for. But if you need a break from the mall or you want to go shop for yourself, or you know you’re going to get crappy gifts and want something that is better for yourself, please go check out the grand cycle pa