India a valuable country to build long-term customer relationships: Omega CEO

48-year-old Raynald Aeschlimann took over as Omega’s President and CEO in 2016. Aeschlimann started with the brand in 1996 as a sales and marketing project manager. In 2001 he became vice-president of international sales. During his 15-year stint in that role, he restructured the distribution channels and rebuilt the trust of customers in the Bienne-based brand. In 2001, he opened the first Omega flagship store in Zurich, the first of many.

In an interaction with Business Today, Aeschlimann discussed the importance of India as a market for Omega, the brand’s legacy, e-commerce and the way ahead. Edited excerpts:

How has the pandemic affected Omega? Did you bounce back in 2021?

Like most industries, the pandemic presented Omega with some real challenges. The restrictions on tourism have been one of the biggest issues for sales. But we are a company that has been running since 1848, so naturally, we have experienced many global difficulties during our lifetime. We have learned to adapt to those situations. I would say that 2021 was very positive in terms of sales and we therefore have good confidence for the near future. It seems to be going in the right direction.

How important is India as a market for you?

We’ve always seen India as an important market, especially because the customers in this country have a good eye for quality and a genuine respect for heritage. We view it as a valuable country to build long-term customer relationships, and that’s something we are working hard to continue.

What are your growth/ expansion plans in India? Will we see online sales?

The growth of online sales is a big part of Omega’s current strategy, and we’ve already seen how successful e-commerce can be in places such as the USA and Europe. Of course, starting online sales in any country requires a lot of logistical planning, so we’re taking our time to assess all the possibilities. Our hope is always to reach as many customers as possible in a market, so I can certainly see the benefits of online sales in a large country such as India. Like I say, we’re open to all opportunities as we move forward.

Omega has a lot of legacy attached to it, from space exploration to the Olympics. Which aspect of the brand, in your opinion is most attractive to Indian buyers?

The space exploration, as you mention, is a great human story. So, I think that legacy would certainly appeal to anyone – including customers in India. Those values of pioneering spirit, quality and adventure can connect to the emotions of us all. I also know how passionate India is about sports and entertainment, so there are stories such as the Olympic Games and James Bond, which I think might be attractive. With 007, there’s so much sophistication and glamour, which are really special qualities.

You started e-commerce in the US in 2017, ahead of many other large watch brands. How has this affected the watchmaking landscape and sales for the company? Is e-commerce the way forward and will retail channels slowly shrink?

As I said, e-commerce is a major area of growth for Omega. The online store in the USA has consistently been one of our best performing sales channels, so it’s been a great success. It’s clear that modern customers like to have that online option, and I think it’s important that the luxury industry recognises this and adapts its strategy. However, I want to say that our Omega Boutiques remain an important part of sales. It’s more effective to have that balance of e-commerce and retail. With boutiques, you get personal service and the chance to experience the brand in person, while also trying watches on your wrist. We still think there is great value in that.

James Bond has been wearing an Omega for twenty-five years now. In the long run, what has that done for Omega’s sales, and its reputation in general?

The James Bond connection is a really special part of our DNA. It connects us to values of precision, sophistication, strength and adventure. Furthermore, it’s a really fun association. We smile a lot with this partnership. Certainly, we see a positive boost in sales when a new James Bond film arrives, and our 007 watches receive huge interest and popularity. It’s a great way to reach a wider audience too. Even if you don’t know much about watches – you know that Omega is the “Bond watch”.

Omega has released many historical, vintage-inspired watches over the past few years. What is the reasoning behind that? Going forward will this continue?

Omega has a totally unique heritage with some really incredible milestones and iconic designs. For us, it’s important that we celebrate that history and allow our customers to be part of it too. Vintage styles are very popular, but they also carry a lot of emotion and storytelling. We’ll continue to honour our past, but we are also committed to our evolution. Omega is at the forefront of watchmaking today, so along with vintage inspired pieces, you’ll also find state-of-the-art timepieces that are very modern and pioneering.

The average price of an Omega watch has tripled during your tenure. What has this meant for Omega as a whole, and how is it changing your relationship with younger buyers?

Rather than talking about price, I prefer to talk about value. Omega invests a lot of resources and time into research, development, and innovation. The result is that we have some of the highest standards in the industry. Not only in terms of quality, but also in terms of materials and precision, such as our modern Co-Axial Master Chronometer movements. That brings a lot of value to the timepiece you buy. For younger buyers, especially, an Omega watch is something to aspire to. You can see it as a worthy investment, and something you’ll be able to cherish forever.

You’ve been with Omega for nearly twenty-five years — how would you describe the enduring appeal of the brand? What is it that makes a buyer walk into your boutique instead of the one next door?

The Omega story is always moving forward. When I began at Omega in 1996, we had just signed Cindy Crawford as the brand’s first ambassador. We had just started our partnership with James Bond, and we were just starting our relationship with Team New Zealand in the world of sailing. It was such an exciting time. But it’s always been like that. We are always developing our passions and creating exciting stories for the customer to believe in. There’s an authenticity that I think makes us appealing.

What do the next five years look like for Omega?

This is a time of great innovation and I think the next few years will see the continuing development of new materials and other pioneering features in terms of our watchmaking. We have a network of experts at the Swatch Group, which is helping Omega to push forward with powerful new designs. I’m looking forward to seeing what we can do, and of course continue growing our passions such as sport, exploration, social causes and entertainment.

Are there any strategies that you adapted during the pandemic that you would like to keep?

I wouldn’t say there were any new strategies, but certainly we recognised the value of our online communication. Staying connected to customers and finding new ways to reach them and tell our stories became so important during the pandemic. This is something we’ll try to maximise even further into the future.