Swiss watchmaker Omega defies e-commerce boom by expanding physical stores network in China

At a time most retailers are turning to digital channels to stay competitive, one Swiss luxury watchmaker is doing things differently.

Omega is sticking with good old-fashioned physical shops to underpin its expansion in China even as e-commerce takes the industry by storm.

“Sometimes [luxury shopping] is about waiting and longing for the product and experiencing the build-up of emotions as you personally visit the store and touch the product itself,” said Raynald Aeschlimann, president and CEO of Omega, in an interview with the South China Morning Post.

“E-commerce shouldn’t be taken as a way to replace anything, it should be complementary. While we are working on some [digital] strategies, we’re still very much investing a lot in bricks-and-mortar stores in the main cities in China.”

The brand currently does not have an official Chinese platform for consumers to shop online, nor are they collaborating with any third party e-commerce platforms in the country. Consumers can only shop for Omega’s products online via the brand’s official US website.

It is estimated that 60 per cent of consumers now use online or digital channels to research prices and information when purchasing watches, and social media’s influence is proving to be supremely significant. Industry experts predict watch brands will invest more heavily in Chinese digital platforms such as Weibo and WeChat this year, and less in bricks-and-mortar stores.

Aeschlimann said the physical shops are strongly tied to emotions and experience. It is important to strike a good balance between online and offline channels, in order to meet different consumers’ demand.