Ornatus-Mundi
[Zenith]
7136
You summed it up quite to the spot, however...
You never know when such a decision was made (here: its at least 1 month old ;-)). Thus, reducing the prices might be a very easy to implement short notice measure. I.e. if you are pressured in time and need quick results.
Announcing a phasing out of any given reference is miore difficult. You don't know whether this will drive demand. Also, if you just passed a certain threshold which deters customers such measure would not help. And such threshold might just have happend (not intended by Zenith) when the Swiss National Bank lifted the peg of the CHF to the EUR. Zenith might have waited a bit to see how the situations develops, and then decided accordingly (taking the entire global market development into account).
Personally, my preferred way of action might have been different. I would have liked to see Zenith offering a new entry level collection at a lower price ab inito.
Cheers,
Magnus
BREAKING NEWS: Zenith reduces prices of 14 references by up to 20%
I was just informed that effective as of 01 March 2016, "with respect to the current economical context it has been decided to reduce and reposition some specific models in the El Primero and the Elite collection ". The price adjustments apply to all mark...
Thanks for sharing!
So now we know, which manufacturer decided to lower the prices All that remains is to find out, which will up the content at constant pricing...
Instead of doing discounts, maybe announced these models may be discontinued by year 20xx.
That will be more positive, right? It may/will drive demand up and they don't have to keep producing less popular series or models and give discounts. As with any news, good for those who are in the market but bad for those who already bought. I always re...
You summed it up quite to the spot, however...
You never know when such a decision was made (here: its at least 1 month old ;-)). Thus, reducing the prices might be a very easy to implement short notice measure. I.e. if you are pressured in time and need quick results. Announcing a phasing out of any ...
Good marketing strategy? or....
By reducing the price of course it will be more sales, since the watch itself become more affordable. And i do believe they already do a research to put this pricing strategy into action. But in the long term, will this strategy harm the brand image itsel...
All these implications are certainly a discussion during my meetings with them in Basel...
next week. I am pretty sure they'll have procedures in place to deal with clients who bought just before the price adjustment. I also hope that their long term goals and strategy will become clear to me. Stay tuned! Best, Magnus
Interesting indeed...
I wonder if will just be Zenith under the LVMH umbrella? Interesting times ahead especially on the run up to Basel. I would be really bummed if I bought one of these for myself at Christmas.... Thanks for the update Magnus. Cheers Andrew
Interesting, the smallest reduction in price....
... is for the most expensive model that is in gold. I am amazed that Zenith can see the light to lower prices but some other brands are still 50% too high and they know it and they dont touch their MSRP
The most classical get the lowest reduction...
whereas the new Sport collection is highly discounted. I think there is an underlying message as well. Magnus P.S.: The Volcano, for my taste (;-)) could have benefitted from a steeper reduction as well ;-)!
watch market is brutal right now
There may well be some companies closing. Overproduction and more over production.
If someone is planning on buying a watch, does this mean it's better to hold off and wait?
And assume that many other watch brands will be reducing prices as well? It's about time we finally get reductions in watch retail prices. They've been going straight up for years like the cost of healthcare! - AT
