Vinay Kamath
Swetha Kannan

Omega believes India will be one of its top markets.

Stephen Urquhart, President, Omega

STEPHEN Urquhart, Omega's 59-year-old President, believes in wearing his brand on his sleeve ... or at least farther down, on his wrist. Sporting a premium Omega on either wrist, one large-dialled with a bright orange strap and the other a sober black-dialled watch, Urquhart insists he isn't wearing two watches to tell the time (it's for balance, he maintains), even though one shows Swiss time and other Indian. "Well, I have two hands, so I can wear two watches, can't I?" he asks, tongue firmly in cheek, "I can't possibly wear two ties, I've got only neck," he emphasises.

But, as Urquhart says, wearing a premium high-end watch is a fashion and lifestyle statement. "Nobody buys our watches for their functionality of telling the time any more," he explains. A watch is bought today like a fashion accessory, to make a statement with its looks and craftsmanship. And, it is precisely to push the Omega brand as one of the ultimate lifestyle symbols for which Urquhart is on an India mission. He says China and India are going to be among the top markets for Omega. However, it's been a long haul in India. The growth rate is keeping pace with China's, but the figures are still much much lower, he says, refusing, though, to divulge any. But, as Urquhart says, the big change since 2003, when he was last in India, is that Omega has implemented its boutique strategy.

In Chennai to open a boutique along with a local partner, Omega's President believes that would pump-prime Omega's sales. "We opened two in Mumbai last year and we plan two more. These are exclusive stand-alone mono-brand boutiques. We started them in China ten years ago and they proved to be very successful, it was the most instrumental tool in getting the brand off the ground there." Omega will also improve distribution in other stores. The brand now has 50 stores, up from 35 in 2003 (China has 150 stores). As Urquhart says, it all depends on market development, on locations and getting the right partners.

A corporate flagship store for the brand is important, he says. "We can do stuff in a corporate store that we perhaps can't ask our partner to do, in terms of investments; it is more of an image-building role but we can also do our training process and after-sales, or we could have a museum there, it can be a whole different brand message."

Omega's President is also banking on the fact that Omega as the brand - reinforced by the likes of Cindy Crawford and Michael Schumacher — has been "revered and well-known for decades" in India. It has a good base here and the task is to build on that goodwill. The watches don't come cheap, though. Prices start from Rs 39,000 and could go on to several lakh rupees. Among the premium brands owned by the Swiss Swatch group, Omega jostles with the likes of Cartier and Rolex in the Indian luxury watch market. Swatch owns 18 well-known brands and Omega ranks right up there as the group's top brand along with Blancpain and Breguet among others. Longines and Rado, also part of the Swatch portfolio, are down the order.

Urquhart says people don't buy watches any more to tell the time. In a highly-wired world of high technology and sophisticated gadgetry, mechanical watches are coming back in a big way. " A mechanical watch has incredible historical legacy, which very few products have today. It's the same technology of 200 years ago; the more technology-oriented the market gets, the more people are inclined towards mechanical watches."

Urquhart says nobody would buy a premium watch like Omega if it were quartz. "South Korea is a wired and networked society; everybody is on hand-held Internet but also wants a mechanical watch; it's a bit of a contradiction, but it's more a lifestyle and fashion statement." A mechanical watch offers a notion of durability and craftsmanship. "When you buy a mechanical watch, you're buying something that will still be in fashion 30-40 years down the line; but when you buy something hi-tech, it could be obsolete in 10 years!".

Omega's top honcho gesticulates with passion. "Tomorrow, if we offer only mechanical watches, we won't sell one watch less. Our DNA is mechanical watches." In fact, the worldwide resurgence for mechanical watches, he says, is what saved the Swiss watch industry; otherwise it would have got swamped by the Japanese quartz. There was a period when the Swiss watch industry was sitting on the fence, not knowing whether to go the whole hog with quartz. In the '80s, even Omega went electronic with quartz watches but ran into problems till the mechanical wave came back, bolstering brands like Omega. It's a trend that's catching on in India too, both with men's and ladies' watches. Earlier, women's watches were smaller, not amenable to quality mechanical movements. But, that's changing, as women are buying bigger watches, allowing bigger movements.

Omega claims a 25-per cent market share in the Rs 600-crore premium watches market in the country. This year, the brand expects to double its sales. More boutiques are planned by the year-end - in Bangalore and Delhi — and next year in Kolkata and Hyderabad. The brand will also unveil its range of Omega jewellery. The range has already been unveiled in markets such as China, Spain and Japan. China is the biggest market for Omega, overtaking even Japan. They contribute 20 per cent each to revenues. India pitches in with 5-10 per cent to Omega's sales. He insists Omega is quite a young brand and is talking to young people. Young people are not buying a watch today that is very different from what older people have. "It's not like sneakers. Take the Moon Watch, it's a hand-winding watch; and in a sophisticated market like Europe, it's the watch young people want to buy. It can't be more old-fashioned, it's hand-winding, 50-years-old, but young people are looking for a watch with history and credibility. They are not looking for a `young' watch."

But, as Urquhart says, one cannot just sit back and count the shekels. Omega too has to follow consumers taste and trends. "My one fear is one day I get up and see younger people don't want to wear a watch. Let's face it, nobody needs a watch today to tell the time. Look at Japan, you see young kids carrying coloured cell phones on their wrists. We have to keep our eyes open and make sure we advertise to keep that need — it's not really a need today — to keep that trend going. We're selling a dream; a craftsmanship, a lifestyle statement. We're selling it like an accessory, but one, which has a unique technical aspect. It's not like a handbag, there is something inside, there's a heart there, a movement, it's a very unique product and we have to keep that notion up there." Nevertheless, he glances at his watches. It's time for him to go ... and sell more dreams.

The Omega Bond

POOR Pierce Brosnan. He doesn't just stop being Bond. He also stops being the Omega brand ambassador by the end of the year. James Bond, the character, is Omega's international ambassador, not Brosnan himself, says Omega's Urquhart. Omega will also be a part of the new Bond movie; it has three Bond movies under its belt. Not giving away anything, Urquhart says Omega will star in a different way from its earlier roles in the Bond movies.

What about India, since Shah Rukh Khan, the earlier Omega brand ambassador, shifted loyalties to Tag Heuer? "We are looking at one or two possibilities. The importance of ambassadors is not the same today as it was five years ago. While it is still important to some extent, we've shifted our priorities. We are looking at one or two new faces worldwide and in India." In India, it is either cricket or Bollywood. While film star Sonali Bendre continues to be a spokesperson, perhaps Omega will look a cricketer? Urquhart's lips are sealed.

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