Watches
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Movado winds up marketing machine in tough economy
By Joseph Dobrian
October 19, 2008
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| Jeffrey Cohen was promoted to president of Movado Worldwide this spring. |
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Paramus, N.J.--In this economy, some watch companies might be bracing for an atrocious holiday season, but Movado is viewing the downturn as an opportunity.
Downplaying the company's recent payroll cutbacks, Movado Worldwide President Jeffrey Cohen says the business outlook is rosy for brands that are willing to seize the possibilities within the current market.
A 25-year Movado veteran, Cohen says the brand is preparing for a major marketing push that will solidify its premier position in the $500 to $1,500 price point range.
"The economy has been great for us," Cohen says. "In every cycle, we seize opportunities, while others are playing it safe."
As other brands back away, Cohen sees a good opportunity to gain market share.
"If you're not advertising at a certain level, and if you're not a power brand, it will be hard to survive," he says. "You need to continue to advertise, to make yourself relevant in a big way."
Cohen says Movado now owns nearly 50 percent of the market share among Swiss watches priced between $500 and $1,500--and has hit 50 percent of the market share in the $800 to $1,200 range. This is partly because of how well the brand's "Museum" dial has held up as a corporate icon--Movado feted the 60th anniversary of the dial's development last year--and partly because of Movado's longtime association with the arts, Cohen says.
"In the 1980s, we were all about affiliation with the arts," Cohen says. "We had an Andy Warhol limited-edition watch, and one for [jazz trumpeter] Wynton Marsalis. When people think of Movado, they think of a work of art. That platform has been resonating for years. Movado is one of the most aspirational brands in the United States."
Despite the constancy of the large dot at 12 o'clock--the identifying feature of the Museum dial--Movado promotes itself as a brand that always offers something new.
"We'll continue to come out with unexpected but relevant new products, giving the consumer a reason to buy," Cohen says. "We'll employ the iconic design, plus exciting materials and mechanics--including a new automatic line with an exhibition caseback and red markings on the dial."
The sport line will still feature the dot on the 12, plus a Kevlar strap, and New England Patriots quarterback Tom Brady and New York Yankees shortstop Derek Jeter will remain the brand ambassadors for the line.
Ten percent of sales from the "Series 800" watch that Jeter sponsors will be donated to Jeter's Turn 2 Foundation, a leadership program that encourages children to avoid drugs and alcohol.
Movado is also partnering with the Alvin Ailey American Dance Theater in creating a limited-edition Museum dial watch paired with a leather double-wrap strap in orange. Ten percent of December proceeds from sales of the watch will go to the Alvin Ailey Dance Theater.
The company debuted a new advertising campaign on the back of the September 2008 issue of Vogue, which featured all of the brand's ambassadors and introduced color images instead of the black-and-white look for which the brand has long been known.
Amid the marketing push, the company has seen some internal cutbacks. Movado announced in August that it is eliminating about 6 percent of the company's full-time workforce and 10 percent of its payroll expense. Cohen says this only represents a streamlining of operations, a "flattening of the organizational structure."
"We've also streamlined our distribution, eliminating 30 percent of our retailers and working with the remainder on appropriate marketing and positioning of the brand, to ensure greater productivity," he says. "Our aim is more business through less distribution. We made the cuts based on how productive these retailers were and how well they fit our brand image. One of the main criteria was that they have a knowledgeable sales force that understands Swiss watches."
Cohen's tenure with Movado began during the company's 1980s rise to prominence as an aspirational brand, at the same time that the North American Watch Corp. bought Movado and changed its name to The Movado Group. He started as a sales trainee, developing new outlets for Movado, and worked his way up to building national accounts.
"I was promoted to vice president of sales, overseeing all North American sales; then to president of North America in the late 1990s," he says. "In 2003, I became president of the Americas, and in April of this year, worldwide president. What I most enjoy about this job is being a leader in the industry, being part of one of the power brands respected in the industry and by the consumer. If there's one thing I find frustrating about the job, it's the fact that we often can't produce enough product--both within our brand and industry-wide--to satisfy demand."
Looking ahead, Cohen says the company is looking to remain as relevant as possible.
"There's a huge following of consumers who own multiple Movados, and we're always trying to give them reason to buy more," he says.
Editor's note: This story first appeared in the October 2008 print edition of National Jeweler.
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