Between Mono-Brand and Multi-Brand: Where Is the Watch Retail Industry Headed?

For years, brick-and-mortar multibrand specialty retailers have been viewed in some parts of the watch industry as a business model under pressure. Major brands have taken greater control of their own distribution, opened their own boutiques, and expanded their direct contact with customers. Many up-and-coming brands are now following this path as well.

This trend isn’t going away. But it appears to be entering a second phase. Boutique retail chains are becoming more selective, and there is an increasing focus on key locations. At the same time, the number of small, independent brands seeking visibility and access to customers is growing. And consumers, too, have long since stopped making decisions based solely on digital factors.

The outlook for multi-brand specialty retailers may therefore be somewhat less bleak than is sometimes portrayed.

After the expansion: early signs of consolidation?

The first phase of the direct-to-consumer model was heavily focused on expansion. Monobrand boutiques began to appear even in areas where brands had previously been represented exclusively through specialty retailers. Nowadays, calculations are more precise, and brand-owned locations are also being evaluated from a purely business perspective.

It would be inaccurate to say that brand manufacturers are generally pulling back from their own retail operations. Prime international locations remain important, and some flagship stores are even expanding. At the same time, however, individual boutiques are disappearing or being converted into other types of retail formats.

This is particularly evident in the United Kingdom at the moment. TAG Heuer, Breitling, and Omega reduced their presence at certain locations, while Tudor continued to expand. TAG Heuer, for example, closed its flagship store on London’s Oxford Street but remained present there through Watches of Switzerland in a multi-brand setting. In Leeds, the single-brand boutiques of IWC, Panerai, Jaeger-LeCoultre, and Montblanc were closed; the brands subsequently returned to Berry’s.

This does not represent a fundamental shift in strategy back toward specialty retail. However, it does show that having a dedicated boutique is not automatically the most economically sound solution at every location.

Richemont is also pursuing both approaches in parallel: direct-to-client remains dominant, but wholesale is growing as well. The overall strategy, therefore, is to maintain a direct presence where it makes strategic sense—and to rely on retail partners where they can better combine reach, customer access, and efficiency.

It is precisely in areas just outside the absolute prime locations that opportunities are opening up for specialty retailers.

New Brands, New Opportunities

Added to this is a second trend: The watch market has become more diverse in recent years.

At the Geneva Watch Days and other events, more and more small, young, and independent brands are making their presence felt. Many feature unique designs, innovative technical concepts, or unconventional positioning. What they often lack is reach.

As Jean-Christophe Babin recently explained in an exclusive INSIGHT interview, smaller brands need, above all, visibility and access to the press, collectors, and retailers. At the same time, retailers are looking for new brands because major houses are taking greater control of their own distribution.

Babin sums it up: “Multi-brand retail remains important because people want choices.”

This gives retailers more flexibility. With well-chosen smaller brands, they can differentiate their product lineup and develop their own unique profile. Of course, young brands must first prove their ability to deliver, provide good service, and demonstrate long-term stability. But this is precisely where the role of specialty retailers comes in: selecting, evaluating, and deciding what truly suits their own customer base.

New brands need visibility—and specialty retailers need brands that help them stand out.

Get information online, compare in person

These days, the purchasing process often begins online. Prices, reviews, and technical specifications are readily available, and videos and social media quickly bring new brands to the forefront.

However, that doesn’t make brick-and-mortar retail obsolete. Especially when it comes to high-quality and emotionally appealing products, factors such as size, weight, proportions, craftsmanship, comfort, and perhaps the look of a watch face are things that can only be assessed to a limited extent online.

Then there’s the comparison. A multi-brand retailer can display several brands side by side, showcasing well-known brands alongside independent and alternative ones that might not have even been on your personal list before.

Babin also describes this process: Customers make a preliminary selection online, but the final decision is often made in the store.

This brings two trends into play: an increasingly well-informed customer and an ever-widening range of brands. This is precisely where the strength of multi-brand retail lies.

The Internet provides information. Specialty retailers offer selection, comparison, and context.

Not like it used to be—but it’s not over yet either

Multibrand specialty retailers will not return to a time when manufacturers relied almost entirely on independent dealers. Direct sales have become too important for that.

Brand boutiques are here to stay and, in prime locations, will tend to be larger, more exclusive, and more focused on customer loyalty. But there is still room for strong partners alongside them.

On the other hand, as brands increasingly concentrate their boutique networks in prime locations, opportunities open up for multi-brand retailers. In addition, young brands need visibility and distribution channels. Customers research products online but still want to experience and compare watches in person.

This can lead to an interesting combination, particularly in the DACH market, with its network of regionally established jewelers.

This does not mean that the multibrand retailer has suddenly become the retail model of the future again. But it is also far from being the outdated model it is sometimes described as.

Its strength lies where single-brand stores and online retail reach their limits: in selection, comparison, and access to brands the customer may not even have known about yet.