FPJ Going Boutique Only

[mockingboy]

Just heard from my AD - FPJ will no longer sell through ADs in 2022 and will Boutique only.

Crazy how these brands got built up through ADs and then they dump the ADs.

[stonejordan]

Originally Posted by mockingboy

Just heard from my AD - FPJ will no longer sell through ADs in 2022 and will Boutique only.

Crazy how these brands got built up through ADs and then they dump the ADs.

If this is true, I think this is a good move by Journe. Having visited multiple boutiques, and a few AD's, without a doubt, the boutique experience is better, and likely not replicable by AD's (especially the Miami boutique, but even LA, and to a lesser extent, NY). I will likely be visiting the boutique this week or next so will see if they have anything on this.

[WatchEater666]

Makes complete sense to me.

ADs offer negligible value to a brand in most cases. My firm does nothing but DTC brands and moving off retail channels that devalue a luxury brand in most cases is a go-to play.

We actually wiped all the US dealers entirely for one brand we acquired. They just ate up margin for no real reason. In this case geo coverage barely matters. If someone can afford an FPJ, chances are that they travel a lot and fill find their way to a boutique.

[rockdrock]

I can see why. After a 4 year waitlist with one AD that went nowhere and getting the cold shoulder from another after years of purchase, I like going straight to the brand now. They keep my history, go the extra mile, and brands can work with me on new releases.

Another issue I had with a Patek AD was that after I moved from the city/country even though they knew me, I was not allowed to purchase anything since I was no longer in country. BS! FPJ, as an example, have treated me with open arms everywhere I’ve gone and have open communications with me all the time.


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[kaiserphoenix]

The AD business model is finished imo. Not enough watches to go around anyway. There are at least 9 FPJ boutiques already? Production cant keep up.

[kaiserphoenix]

Originally Posted by rockdrock

I can see why. After a 4 year waitlist with one AD that went nowhere and getting the cold shoulder from another after years of purchase, I like going straight to the brand now. They keep my history, go the extra mile, and brands can work with me on new releases.

Another issue I had with a Patek AD was that after I moved from the city/country even though they knew me, I was not allowed to purchase anything since I was no longer in country. BS! FPJ, as an example, have treated me with open arms everywhere I’ve gone and have open communications with me all the time.


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This is true. I talked with several FPJ boutique managers around the world and they all told me that Journe does not descriminate in terms of location or where your "loyalties" are etc. Unlike Patek they have some type of maximum radius and you need to be "local" whatever that means these days.

[christianj]

I understand why they might do this but reality is the AD helped get them to the point at which they are now and then they give them the shaft. A lot of people would never have know about FPJ if their local ADs hadn’t represented and to some extent pushed the brand. If I remember correctly there was a long discussion on some ADs even being to blame for the rise in the FPJ prices not long ago.

[WatchEater666]

Originally Posted by christianj

I understand why they might do this but reality is the AD helped get them to the point at which they are now and then they give them the shaft. A lot of people would never have know about FPJ if their local ADs hadn’t represented and to some extent pushed the brand. If I remember correctly there was a long discussion on some ADs even being to blame for the rise in the FPJ prices not long ago.

Maybe true in 1990 but not anymore. It's business not a charity lol.

If you were running a consumer brand, think about this:

-Dealers leech margin
-Dealers may misrepresent the brand
-Dealers will 100% discount your product and tank brand value
-You lose interaction and control of the customer

Etc...

No real point to a dealer for luxury goods unless they are a hyperspecialized retailer able to offer something unique. They are at capacity anyways btw, so why throw away margin?

[GreenLantern]

During down times, ADs (being independent) can help prop up a brand.

If their retail network is 100% in-house, they're disadvantaged during tough times.

I worry that the whole industry is moving towards the latter during good times (other than the first few months of the pandemic, the industry has been booming, obviously). Decisions like this shouldn't be made when things are bubble-levels rosey.

[christianj]

@Watcheater666...not sure why you felt the need to make your case again....if you reread what I posted, I said I understood why they might make this decision and I realize it’s not a charity but I was merely stating a fact that ADs helped them get where they are and now they are shafting them.

[texasmade]

Originally Posted by christianj

@Watcheater666...not sure why you felt the need to make your case again....if you reread what I posted, I said I understood why they might make this decision and I realize it’s not a charity but I was merely stating a fact that ADs helped them get where they are and now they are shafting them.

Basically AD’s help brands channel stuff inventory during slow times. Like Greenlantern mentioned, decisions shouldn’t be made with the assumption that things will always be this good.

[WatchEater666]

Originally Posted by GreenLantern

During down times, ADs (being independent) can help prop up a brand.

If their retail network is 100% in-house, they're disadvantaged during tough times.

I worry that the whole industry is moving towards the latter during good times (other than the first few months of the pandemic, the industry has been booming, obviously). Decisions like this shouldn't be made when things are bubble-levels rosey.

This isn't true at all, retailers do not provide any sort of countercyclical benefits, especially in luxury.

BTW, when you sell to larger retailers, it's usually done on net terms and they have no issue defaulting + leaving you without cash. If they BK in a ch11 you can't even get your inventory back if it's been 30+ days etc. Look @ recent BKs by luxury retailers. Completely screwed vendors over.

[shafran]

Actually govberg just built a new journe centered boutique and was told today they are being closed by journe

[BigAppleBill]

Originally Posted by shafran

Actually govberg just built a new journe centered boutique and was told today they are being closed by journe

Interesting, as Govberg/WatchBox easily own more FPJ pieces than all of the FPJ boutiques.

[GreenLantern]

Originally Posted by shafran

Actually govberg just built a new journe centered boutique and was told today they are being closed by journe

Wow!

[GreenLantern]

Originally Posted by BigAppleBill

Interesting, as Govberg/WatchBox easily own more FPJ pieces than all of the FPJ boutiques.

Probably the reason why Journe is "hot" considering they practically cornered the pre-owned market over the past 2 years and pushed the brand hard.

[sgwatchguy]

Originally Posted by mockingboy

Just heard from my AD - FPJ will no longer sell through ADs in 2022 and will Boutique only.

Crazy how these brands got built up through ADs and then they dump the ADs.

Do you know if US only or globally?

[DoraTheExplorerII]

Originally Posted by shafran

Actually govberg just built a new journe centered boutique and was told today they are being closed by journe

Biting the hand that fed you....

[walds11]

Originally Posted by BigAppleBill

Interesting, as Govberg/WatchBox easily own more FPJ pieces than all of the FPJ boutiques.

I wouldn’t doubt it. Currently, there are 29 FPJs listed on watchbox.com.

Originally Posted by DoraTheExplorerII

Biting the hand that fed you....

Exactly. It came back to bite them.

[Swaye]

Originally Posted by walds11

I wouldn’t doubt it. Currently, there are 29 FPJs listed on watchbox.com.



Exactly. It came back to bite them.

And piles more in the safe.

[1William]

A Boutique for a Boutique brand. Makes sense.

[walds11]

Originally Posted by Swaye

And piles more in the safe.

No doubt. I’ll keep my mouth shut from here on in about this topic. I don’t want to ruffle any feathers.

[christianj]

Originally Posted by GreenLantern

Probably the reason why Journe is "hot" considering they practically cornered the pre-owned market over the past 2 years and pushed the brand hard.

That was what I referenced above as well. They were dragged through the mud on the forum for inflating prices of pre-owned pieces and pushing the brand too hard so that it created too much demand and now this news comes out.

[77T]

Originally Posted by mockingboy

Crazy how these brands got built up through ADs and then they dump the ADs.

Brands are not built up by distribution channels - ADs sell many brands and are loyal to their own customers, the buying end-user.

Ask any AD and they’d much rather decide how their floor plan and display cases are built.

FPJ would be mixed in with Cellini, Patek, Cartier, JLC, Glasshute...



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[Russell996]

Originally Posted by 77T

Brands are not built up by distribution channels - ADs sell many brands and are loyal to their own customers, the buying end-user.

Ask any AD and they’d much rather decide how their floor plan and display cases are built.

FPJ would be mixed in with Cellini, Patek, Cartier, JLC, Glasshute...



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Patek and Rolex dictate the floorpan to AD's

[christianj]

Originally Posted by 77T

Brands are not built up by distribution channels - ADs sell many brands and are loyal to their own customers, the buying end-user.

This is true BUT have you never been shown a brand at your local AD that you were not aware of or wasn't on your radar? I think we need to remember that most buyers are not on TRF or other watch forum and are not as knowledgeable as most here are. I know for a fact that my local AD showed me the FPJ CB when I went in to look at another piece from another manufacturer. I didn't buy but the CB but instead stuck with my original plan but that is another story.

[77T]

Originally Posted by Russell996

Patek and Rolex dictate the floorpan to AD's

Yes that is my point - ADs would prefer making their own decisions on floorplan and display cases.


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[77T]

Originally Posted by christianj

This is true BUT have you never been shown a brand at your local AD that you were not aware of or wasn't on your radar? I think we need to remember that most buyers are not on TRF or other watch forum and are not as knowledgeable as most here are. I know for a fact that my local AD showed me the FPJ CB when I went in to look at another piece from another manufacturer. I didn't buy but the CB but instead stuck with my original plan but that is another story.

I think your experience actually makes my point. Remember that you came in to see a piece from another manufacturer...

How did showing you FPJ help build brand value for the other manufacturer?

You stuck with your plan - your AD was either staying loyal to you or had some other motive.


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[CFR]

Originally Posted by mockingboy

Just heard from my AD - FPJ will no longer sell through ADs in 2022 and will Boutique only.

Crazy how these brands got built up through ADs and then they dump the ADs.

Just checked with another (US) FPJ AD. They got the same news yesterday from the brand -- finis.

In the case of FPJ, this doesn't surprise me. His passions are watchmaking, women, and wine (vs. just money). Dealing with a million points of sale, all owned by different people, was probably more of a distraction. It'll be interesting to see if FPJ opens any more boutiques in major US cities as they closing various ADs but production remains relatively low.

On a related note, I bet the Chanel folks are elated that their recent investment in FPJ seems to have paid off thus far, given that they partnered with FPJ right before the brand recently took off.

[Skyrider01]

This makes sense as almost all Journe pieces now have to be ordered. Due to the demand which has skyrocketed, you won't find much stock, if any, at the boutiques. Journe is trying to make sure they don't sell to flippers, so they are allocating pieces based on your relationship with them. If they sold through ADs, they wouldn't be able to control this.