AD vs Boutique

[Juantxo]

Originally Posted by jon_jon

Rolex's strategy is to have "boutiques" in partnership with local watch retailers in major cities. This is in contrast to Omega's strategy to have boutiques owned by Omega, alienating the local watch retailers. By having company-owned boutiques, you have more control over sales, inventory, profits, etc. But no one knows the local customers as well as the local watch retailers. So overall I think Rolex's strategy is better than Omega's.

I wonder if Swatch's strategy of owning the retail outlets is working for them. The Omega gray market is so strong and the prices so low, I wonder who would buy from a boutique. The same applies to many of their other brands. Of course, their margins now are greater but they also have more expenses in keeping the stores open.