Following its purchase of Roberto Coin, Watches of Switzerland Group (WoSG) intends to amplify the Italian brand’s presence in the United States, executives said on a May 9 conference call.
WoSG, which is known primarily as a watch retailer, paid $130 million for Roberto Coin Inc., the New York City–based entity that handles Roberto Coin sales in the U.S., Canada, the Caribbean, Mexico, and Central America. The rest of the company, including its Vicenza-based manufacturing facility, will remain independent.
Roberto Coin Inc. will continue to be headed by Peter Webster and will still be based out of New York City, WoSG said.
On the call, Watches of Switzerland’s North America president David Hurley said WoSG is already cooking up a Roberto Coin ad campaign for the holiday season and hopes to boost co-op advertising with its retail partners. The company also plans to enhance Roberto Coin’s digital presence, as well as open more monobrand boutiques, some of which it will own and operate, while others will use franchise and partnership models.
The Coin acquisition comes as Watches of Switzerland looks to increase its exposure in the jewelry sector, which CEO Brian Duffy called “attractive from a margin standpoint generally.” WoSG stores already carry a variety of jewelry brands, including De Beers, David Yurman, FOPE, Messika, Repossi, and Pomellato, noted Duffy.
“The global market for precious jewelry is moving inexorably towards branded product from non-branded,” he said, adding that branded jewelry generally brings higher “selling prices [and a] higher frequency of purchase in what is a collectible sector with brand loyalty.”
Because distribution of branded jewelry is limited, it is less likely to be subjected to promotional discounts, Duffy said.
Even so, he couldn’t say whether WoSG would purchase additional jewelry brands.
“There’s nothing we’re working on right now in that category,” he said. “This deal has taken a lot of time and attention.… If anything else came along [where we could add value], obviously we’d look at it.”
Overall, WoSG will remain focused on acquiring established watch and jewelry retailers, particularly in the United States, said Duffy.
“We are leading players in the world of luxury watches and an increasingly important player in the world of luxury jewelry,” he said. “The U.S. market’s been a revelation to us. We’ve learned a lot. We’ve developed a lot. We’ve done a lot. We can really see huge potential there.”
(Photo courtesy of Watches of Switzerland)
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