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“We are a high-volume brand with a real focus on the customer. We pass the value we create directly on to the consumer; that’s why we sell around 1.6 million watches a year“ |
Trevor James Sales Director Sekonda |
UK. Sekonda, the UK’s best-selling watch, is celebrating a double victory as the brand continues to go from strength to strength in both the duty free and domestic markets.
The first triumph relates to the UK market where, for the first time in 19 years, Sekonda achieved a milestone by becoming the number one brand in both sales and volume terms last year (source: GfK data, year ending June 2007), breaking all records in the watch industry. Partly thanks to a huge advertising spend – some £1.9 million this year alone – the brand now sells an astonishing 1.6 million watches per year.
Secondly, that remarkable high street success has spilled over into the travel retail channel, where the brand has been massively expanding for the past year.
Travel retail distribution has progressed swiftly across Europe and beyond since the brand began focusing seriously on the sector in 2006. Last year, Harding Bros launched the brand on its cruise ships, while on dry land Dufry became a key customer. Starting from a listing at Belgrade Airport in January 2007, the Swiss travel retail group has since boosted the brand’s presence to another five shops. Expect to see Sekonda in hot tourist spots including Marrakesh, Casablanca, Algiers and Sharm el Sheik.
And the inflight sector is also looking rosy for Sekonda. Tourvest has taken the brand for its airline customers South African Airways, Virgin Atlantic and Namibia Airways, and listings with another key player are under negotiation.
“South Africa is a big focus for us,” said Sales Director Trevor James during a recent interview with The Moodie Report in London. “We think we can really expand in this area, in part because of Sekonda’s high brand visibility among the British expats as well as the huge number of tourists visiting the region.”
Flying especially high is the Seksy fashion watch brand, which made it onto the back cover of Virgin’s inflight catalogue for the important summer season. The airline carries two styles network-wide: a Sekonda dual time watch and the Seksy Twist model.
Customer service and logistics
James believes the secrets of Sekonda’s success are manifold. “We are a high-volume brand with a real focus on the customer. We pass the value we create directly on to the consumer; that’s why we sell around 1.6 million watches a year,” he says.
In addition, in a world where watches are becoming part of the impulse-buy, fast-fashion phenomenon, logistics and the ability to supply retail partners in far-flung locations are paramount. To this end, Sekonda’s brand owner Time Products (UK) Ltd has over 1 million watches in stock, keeping delivery times to a minimum. James reckons this level of support is critical in the firm’s dealings with retail partners. He explains that this service level even filters down to the shop floor, where members of management help set up all aspects of the watch merchandising and train the sales staff on an ongoing basis.
Customised units are available to all travel retailers, many of whom face big challenges in their often-cramped retail areas. Innovations include wrap-around units specially designed for pillars onboard ferries.
Significantly, James claims Time Products “de-risks” the watch business, because all product ticketing and merchandising unit development is done in-house and not by the retailer. But perhaps most attractive of all is the company’s returns policy. “We take back any unsold stock at the end of the agreed listings period, taking this burden and risk away from the operator,” he says.
VIEW THE SEKONDA PICTURE SLIDESHOW BELOW:
SEKONDA FACT FILE: Founded: 1966 Owner: Time Products (UK) Ltd, based in Leicester, UK Brands: Sekonda (watches for men and women), Seksy (fashion watches for women). ONE fashion watches for men, Xpose outdoor watches, children’s, 9ct gold Key travel retail customers: World Duty Free, Nuance Group, Alpha, Dufry, Aelia, Dubai Duty Free, Harding Bros, Tourvest, Qantas, Mauritius Duty Free Global travel outlets: 73 airport locations (18 international locations); 43 ferry/cruise ship locations (3 international locations); 24 airlines Best-selling products: Seksy Eclipse model, Sekonda mainline collection New product highlights: Rose-gold men’s chronograph watch (retail price: £60/US$120) and diamond-studded gold watch for women (£80/US$160) Total advertising spend: £1.9 million (2007) |
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Brand and product innovations
In product terms, Sekonda is known for manufacturing value watches, and this tradition continues with two new products, namely a rose-gold chronograph for men with a recommended retail price of £59.99 and a diamond-studded gold women’s watch priced at £79.99. Amazing prices, but you read them right.
The rose-gold model will make its travel debut on both MyTravel and Thomsonfly airlines for this winter season, priced at £50 onboard. “The diamond watch will most likely be featured in airports and ferries but it will not be introduced until later in the year when selections are reviewed,” says James. “The RRP of this watch is £79.99 and the travel trade price will be around £68.”
Sekonda’s Seksy sub-brand of fashion watches has become a hot property. Targeted at 25-year-old women, the range is constantly being expanded. “Seksy’s Eclipse model is always number one, wherever it is listed,” James enthuses.
New developments for the brand include an upscale, fashion-inspired merchandising unit. “We’ve developed a unit for the Seksy brand that displays the watches as hero products,” says Time Products Commercial Manager Helen Campbell. “The presentation is similar to that of fashion accessories; the models are displayed in individual pods, like clamshells opening up.”
Each pod holds three watches and features full product information. “Demonstrating our products in the best way enables our partners to increase volume and margin yield,” adds James.
Perhaps surprisingly, Sekonda performs best when merchandised on a floorstanding unit that is situated outside a store’s watch area and not on a backwall. “Our experience has shown that the most sales are made from units placed in front of the watch area, not actually inside the watch area,” asserts James.
Promotional strategy and travel exclusives
According to James, marketing and retail promotions are an important way to boost sales. “Last year we spent £1.5 million [on media and television advertising] and in 2007 this will rise to £1.9 million. Our budget has not been set for 2008 but it highly likely to rise given the success that our campaigns are having.”
The TV advertising strategy includes buying ad spots in popular UK celebrity programmes. Viewers are invited to text-message a number to find out stockists of the Sekonda watch featured. “These ads are so successful we’ve even received emails from retailers afterwards,” says Campbell.
At retail level, one of Sekonda’s most successful promotions has been with World Duty Free, where “phenomenal” sales have been generated by a Travel Trade Specials offer of two watches for £30 (US$60).
Another recent, successful airline promotion saw the popular Seksy Eclipse model offered with a free Swarovski crystal heart pendant. Airlines have seen sales rise by over +40% as a result of this free gift, reveals James. The domestic retail price for this watch is £49.99 and it is sold on airlines from £40 to £42.
In line with the company’s partnership approach, exclusive items are offered to all travel retailers who buy at least 500 pieces of each model or style.
One such client is World Duty Free. From September 2007, the duty free specialist has been offering a collection of exclusive watches in its airport stores. Sekonda and World Duty Free are also working on an exciting new stand design for London Heathrow Terminal 5 which is to be sited in two locations. Additionally, special items will be created for the company’s T5 retail complex, set to open in March 2008.
Exact details of the brand’s flagship T5 presence remain firmly under wraps, but what’s certain is that Sekonda is the one to watch in all travel retail locations across the world.
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