Luxury watches and tech: who is driving whom?

Luxury products, it seems, are being trampled over by technology-enabled products enticing luxury customers.

Apple created its own version of ceramic enforced gold. The real number of the Apple watches in gold casing shipped remains a mystery although an estimated total of 10M pieces are expected to have shipped by the end of 2015.

Apple approached Hermès, the 600 year old luxury marque for a collaboration. Possibly so Apple could open a new market for itself and Hermès could make its mark on tech savvy luxury buyers.

Hermès, however, is an odd choice, seeing as it is far from being the top luxury watch maker and seller. Apple gets to borrow Hermes’s aura, their channel and possibly their customer base — Hermès does not market aggressively to its masstige customer while its prestige customer may or may not like being sold to — and Hermès gets to sell some fabulous leather straps to Apple. The collaboration looked like Apple is driving it.

Meanwhile out of Rolex, Omega and Breitling, the top 3 luxury watch marques, only Breitling has dipped its toe in the smartwatch waters. With its Breitling B55 Connected.

Brietling’s vision is to make the phone subservient to the watch, to enhance the watch. To wit: “In creating its first connected chronograph, Breitling has applied a new philosophy placing the smartphone in the service of the watch so as to enhance its functionality and conviviality. The instrument of the future.” The Breitling B55 Connected builds on the earlier launch of B50, which is an an electronic multi-function chronograph movement, with analogue and digital displays. The idea was to serve pilots — Breitling’s primary audience, but also its aspirational audience — better and to pave the way for other developments.

A few others have made their first moves too. Gucci unveiled a high fashion version of Will.I.Am‘s smartband. Will.I.Am’s role as the creative innovation lead in Intel’s wearables business is not widely known. He is not afraid to fail or experiment. Movado has teamed up with HP to create an Android and iOS compatible watch – the Movado Bold Motion – which uses Bluetooth connectivity and vibrations and visual cues to upcoming important things, all while looking stunning as Movado watches do. At Baselworld 2015, Bulgari unveiled its Diagono Magnesium Concept watch. The watch uses WISeKey’s NFC chip to unlock an application that can store encrypted data on the cloud and communicate with other devices within its range. The data is reportedly secure in an underground bunker in the Swiss Alps. Um, ok. WISeKey’s technology works with both Android and iOS. Then there is Tag Heuer’s Connected, which runs Google Wearable OS, and the order numbers have just been upped significantly to serve the upcoming holiday demand.

With all these options, one wonders: What does a customer choose first — the watch or the technology platform/ OS? More to the point, will the technology platform ever drive a watch purchase?

Curious, I conducted an unscientific survey of (admittedly male) friends, who own watches each costing over £10,000. Unsurprisingly they are all eyeing the Tag Heuer and the Breitling, but not as their main watches.

“Look, I need the battery to last weeks not 6h. I sometimes have two flights to catch in a day and a tight meeting schedule in between.”, said one.

Another said, “As I become more senior, I am less interested in being available to all messages and people all the time. I need time to reflect, uninterrupted by pings and notifications, and as far as I can tell that is all smart watches are doing right now.”

“Whatever it is, I ain’t changing my mobile phone for a god-damned watch. Something will come along that suits me and does not ask me to suit it. Capiche?”, said another. Ooh, burn.

So, if the smart watch is not the main watch, is the connectedness spiel just another nice-to-have and not really a need-to-have feature?

What does that mean for the market that can actually afford luxury smart watches?

Who understands this subtlety of customer behaviour in the luxury market?

It sure ain’t Apple. Or HP. Or even WISeKey.

The luxury brand, on the other hand, owns the customer relationship and understands their customers’ behaviour and quirks. The brand also gets to choose which tech to use, and may choose technologies that are OS-agnostic so as to serve all of their existing customers. The brand, if not inclined to investing in development by itself, could always reach out to wearable companies such as Olio Devices, which were among the first to understand that the customer doesn’t want to change her phone OS, based on the watch she covets.

So, back to — who is driving whom as far as luxury watches and tech go?

Tech may have started it all but tech isn’t driving the conversation in this space any more.

As luxury goes, consumers rule, and luxury brands are expectedly showing a more subtle understanding of the consumer than tech players may assume.

PS: I am an all-in Apple ecosystem user.

Four For Friday (29)

The luxury sector is negotiating the tight rope between its traditional exclusivity and the open-all-hours, democratising nature of the web. It is a fascinating space to watch as new ways of enticing and engaging with the customer emerge.

This long Luxury Society piece explores the emerging influencers and how brands are finding their feet in this new dance. The most telling line in the piece:

“The internet is a chance for luxury, because in order to maintain the dream value of the brand, you have to permanently refuel that dream…”

Refuelling dreams repeatedly is easier when the shop front is really open-all-hours as the web makes possible.

Relevance. As thing go digital at a rapid pace, relevance is the holy grail for luxury brands too, as Rebecca Robins writes.

An even more fascinating movement among the legacy brands is the movement across brands – the “brand tangos” that boost their reputation through collaboration. Think the Apple Watch Hermès cross-over. Legacy brands are tapping into tech brands to increase awareness and connect with consumers. Tech brands are tapping into legacy brands for their heritage and exclusivity.

The resulting blurring of boundaries increasingly calls into question whether we will even be defining brands by sector in years to come.

Talent is central to this ongoing quest for relevance. Lately luxury brands have been poaching talent from among mass market brand leaders. The skills at a premium? Time to market and omni-channel reach.

“Traditionally reliant on in-store experiences, the luxury end of the market is slowly realising that online retail is a crucial factor in future growth. .. Luxury brands are looking for broader retail skills to match today’s omnichannel retail world, Twyford said.”

“Twyford explained that luxury brands pale in comparison to the likes of Uniqlo, H&M and Zara when it comes to their speed to market. As mass-market brands soar in their ability to maintain low-costs while still appealing to millennials, logo-reliant brands like Ralph Lauren feel static,..”

And finally, a luxury good we all desire more of — silence. The essay discusses advances in airlines and automotives, to create silence which may be physically nauseating — our vestibular system draws upon noise to give us a sense of balance and spatial orientation —  and ends on a note which summarises why silence is truly a luxury good.

The hushed halls of affluence buffer the rich from the hubbub of poverty, but for the poor, the clatter of modern life—like other forms of pollution—is inescapable. And as noise continues its inexorable advance into the quietest eddies of wilderness, even the rich may find a silent retreat impossible to locate.

Bonus link: An impossible to locate silent retreat is what Rachel Nuwer found when she set out to locate the last place on earth without human noise. Two fascinating nuggets stand out:

Hempton and Krause hope that nations will adopt a quiet area program akin to dark sky programs. They are pushing for the US National Park Service to adopt such regulations in 2016, in time for the agency’s centennial. “I absolutely believe we will have our quiet places,” Hempton says. “Just like we went through with water quality, things have to get really bad before we recognise them as a basic value and clean them up.”

Where others tend to become uncomfortable in the disconcerting silence, Foy relished the chance to be completely cut off. But minutes into his stay in the chamber, he noticed that the silence was in fact broken. His own body, it turned out – his breathing, his heartbeat, even the scratchy sound his scalp made rubbing against his skull when he frowned – was betraying his quest for auditory nothingness. “The only time you’ll hear absolute silence is when you’re in no position to hear it, because you’re dead,” he realized.

Authenticity, genuineness and the luxury brand

A friend of mine is a genuine, passionate Porsche fan. Awaken him from deep sleep and start asking him about the Porsches he has owned through the years, and you begin to see how deep his fountain of knowledge, and his genuine affection for and attachment to the brand run.

Porsche North America Welcome KitHe showed me the letter that he received with his car. The opening paragraph talks about how Porsche is an exceedingly rare breed of automobile and continues to extol its virtues as follows:

“One born in the art of hand craftsmanship, with sporting bloodlines as genuine as the exhaust note. Every Porsche we build is a monument to authenticity … and the kind of unflinching performance that transforms the daily driving routine into one of fun, freedom and pure excitement.”

In the above, the bold is mine, the ellipsis theirs.

This is how the OED defines “genuine”:

adjective
1. Truly what something is said to be; authentic:
2. (Of a person, emotion, or action) sincere:

As I sat rifling through the pristine, understated luxurious contents of the welcome boxes  — he keeps them all — the conversation turned to engine sound enhancement technologies. My friend told me about the Porsche sound symposer, an intake sound amplifier now fitted into the new 911 and the Panamera. Intake sound amplifier to them, fake engine sound enhancement technique to you and me.

I cannot speak for anyone else. But two months on from that conversation, I am still reconciling “as genuine as the exhaust note” with the “sound symposer”.

How authentic or genuine is the latter?

Is it ok to use it because customers demand a quiet cruise and yet the primal pull of the sound we have all come to recognise as the Porsche engine?

Indeed my friend’s car doesn’t have this amplifier. When I am visiting him and am at home, that engine sound is how I know he is back. To that extent the signalling effect of the Porsche brand of cars does lie in its exhaust note.

Of course, I realise that the car itself is a manufactured artifact.

Given that, does sound enhancement detract from the authenticity of the engine roar?

Or should it be seen as just another way to make the customer happy by addressing his or her changed needs, and indeed, in case of hybrid cars, a way to address the critique that their quietness is potentially hazardous on the roads?

Signalling is often of the key functions a luxury brand serves. And brands know that.

“We are not selling watches to tell the time. We’re selling them to people who belong to a certain social class, who want to show off.” — Dominique Perrin, President, Cartier (in 1987)

Luxury brands also seek to deliver a wholesome sensual experience encompassing sound, sight, smell and touch. Porsche’s sound symposer, one could argue, just serves to enhance the audio experience and the signalling function of the brand.

Are existential questions such as this surplus to the conversation about brand building, or integral to it? What then is the source of a brand’s claim to authenticity?

 

Pretty and other things about tech wading into luxury

I see a lot of chatter on Twitter about how some lollipop/ icecream/ sundae update on Android doesn’t work on this device or that from different manufacturers. Then there are the workarounds, the fixes that one needs to learn, and consequent boasts on Twitter. And the many exhortations to do factory reset and start from scratch.

And I wonder.

This is 2015.

I have been using a mobile phone for 20 years now.

A technology that is pervasive and unarguably central to our lives, like water and oxygen, needs to be easier than this Android malarkey. It needs to be low cognitive load. I think often and a lot about cognitive load because I research and teach masterclasses in better decision making. That is my beat. The decisions can cover a vast scope — from organisation design, to product design, to making it easy for a customer to find, buy and use the product.

My iDevices — the iPhone and the iPad in particular — are low cognitive load. The UI is intuitive, and the capacitive touch screen is sensitive and easy to use for older and younger persons alike.

Some may say these iDevices are dumbed down, and use derisive words such as Mactards (!) for people like me. Frankly I would rather use my cognitive surplus (thanks, Clay Shirky, for that wonderful coinage!) on things more productive than making my mobile phone work.

If one wishes to create a business or a product for high frequency or pervasive use, making it easy to use is essential.

Then there is designing for human follies. And real world use. And end-of-life considerations. In business speak, these are considerations for process and incentive design.

Have you ever lost an iDevice? Then again, have you ever lost any other mobile phone or connected device? Let me know how you got on with the latter!

Recently I have misplaced a device, and had a device stolen. The lost one was found because I could locate it and track its movement from the time the loss was registered with the authorities in charge to the time it was found and returned. The time one was stolen, at least I could trigger the remote wipe as soon as the thief tried to get in.

Insurance companies replace the device not they can not replace the data, which is far more valuable.

Which brings me to back-up and synchronisation.

Yes, the iTunes UI could be much improved. It is far from being the best showcase for user friendly design. But the back-up and synchronisation happen easily. Without much effort (or cognitive load, see above).

Then there is seamless recycling for old or end-of-life devices. Apple’s recycling partner agrees a sum of money during the online registration process. I wipe the data on the old devices and ship it free-of-charge to the recycling partner and receive the money. Apple is in compliance with the WEEE Directive in Europe. As a consumer, I am happy not to have old devices cluttering my shelves, and as a citizen, I am pleased I am not contributing to environmental garbage in the world.

JeanPaulGaultier_Barbican2014

Then there is pretty.

The iDevices are pretty. There is no getting away from it. I work in luxury. Pretty is luxury’s calling card. The iDevices fit the bill.

When a consumer spends a considerable chunk of money on one’s product, it behooves us as businesses to deliver a seamless, satisfying, low effort and pleasant consumer experience all round.

It is harder than it looks, it costs money, it needs a lot of imagination and profound understanding of the consumer’s journey with the business.But above all it takes commitment.

For the tech companies looking to play in the luxury or premium markets, there is a lot to learn from Apple. As well as from the fact that the best regarded luxury sector players demonstrate that serious commitment at every step of the customer’s journey with them. Those that don’t may not and often do not last. More’s the pity.