WatchPro’s Post

Transcript

Mike, I don't think I'm the first person to say, in fact, I think you may have said it before me that it's taken you 20 years to become an overnight sent, an overnight sensation indeed. And it would be easy for people to think that that's kind of all about the Bel canto and the award-winning of that. But I suspect there's an awful lot more that's come together at this time. What's it been all about? It's about a lot of hard work over a long period of time by a lot of very committed, smart people. The coalition of all of that work effort ended up creating a product called the Belcanto and it all came together and that gave us a sort of a turbo boost. Welcome Rob to our new offices at the Yard in Maidenhead. And this is our new environment, which we're very, very pleased about. So Bel canto pictures, I and the Belcanto pictures on the Belcanto classic that we we are incredibly proud about, but I look forward to showing you around. Great cheers. Setting aside the difficulty of making a watch of this complexity is easy to say that it that it was something obvious that you should be doing, but there's no obvious demand out there for for chiming watches costing. The few 1000 lbs I defy anybody quite quite the opposite. If anything, I'll defy anybody in a in a piece of market research to ohh, you're not gonna find a focus group that is saying what we need is more timing watches No, and therefore a bit of a bit of gut instinct and. A a fair dose of luck as well. So into the watch clinic, Rob Popper workshop. Yeah, noise noisiest room in the building. Not all diligently working away. A big step U and a big change from the facility we had in Park Street. The most obvious thing, as I say, is that the team are now together as one team. So this is all servicing and repairs to stand here worldwide. Yeah, you can get 5000 watches a year for you here. Yep, these guys are efficient. But actually the end of 2022, I mean, I would say again, it wasn't a time that people were crying out for chiming watch that you could spend what's the price foreground online to 3 1/2 and half apologize. To buy and I wonder whether you were thinking we might sell these in the hundreds, not in not in the thousands. And then you talked about the supply chain issues that you had to overcome as it suddenly became incredible demand. Absolutely. The blue 300 pieces sold out in six hours and that was interesting. And then we decided there to bring forward the 2nd 300 in green to the Friday that sold out in two hours. And so that's not normal. So we then knew that this was something. That we needed to think about. We had by the end of that weekend, I think it was 2700 people who were tried to get one of the 600 O. We knew there was a latent demand there that there needs to be fulfilled. So we decided let's go open series, let's get 4 new colours, let's put them on sale. And then, you know, the demand just grew and grew and the real challenge was fulfilling it. And then you got the marketing team. They are in the creative hub. So we're really proud of this and it's probably, I think everybody's favorite space. And you announced some changes a few months ago and we're doing a story on, you know, you're ramping up your production significantly. Yeah, I mean, we're now. Able to produce up to 750 Belcanto's a month and it's become a really sort of, well machine where the Belcanto Classic, which we've just recently launched is the first build out if you like, of of the Belcanto line. It's hard to be certain, but I think the Bell cancer will be with us for quite a number of years. Yeah. I mean, I, I don't know whether it's because I'm more of a, a visual guy, but actually the the mechanics of the Bel canto. I are impressive, but it's the dial work I think that you've been doing in the in the last couple of years, not just on the Belcanto, but with the 12. I think that that was a big step forward for you as well. So you can see how these building blocks find their way into one finished product, but actually they're impacting more of the business. Yeah. And that's again, credit to the, I think the design team really their level of expertise has grown, the level of confidence has grown. And so we're able to take on. Those sorts of challenges that perhaps well we certainly 10 years ago we, we just wouldn't have been able to. It's very exciting. I'm more excited now about the future than ever in the business. It's like, it's like we're starting again. It's brilliant. The design team will at the moment is talking to YOG Matt Swetman, who is our junior designer working on OHH, very interesting. Some hot desking logistics it. Quality sit here as well, so some of the admin block. To talk about quickly on some of the numbers in terms of how it's transformed the company and you're talking about from 2022, yeah, into 2023 sales up by 80% to 30 to 30 million trembling since 2020. Profit up from more or less a break even the previous year to almost ��4 million. I mean the the growth is amazing and in fact that profit figure is after your commitment of 2% donated to to your various charities, 2% to charity is. Is embedded into the structure of the business. I think it's one of the things that people in the business probably most proud of, but I don't think most people are aware of it. And I think without us wanting to make it the reason that you'd buy a Chris Ward watch, we want people to know that they're they'll be contributing and if we hit our. You know targets for this year and you know that will be 7 figures going to charity which for business as small as ours is. I think the team can be pretty pleased about and it's not small. Well, we know, we know the United States became your biggest market in a couple of years ago now. Yeah. It's something you've invested in more. Is that the direction now where the, I mean, obviously the UK is, is still an extremely strong market. I think in their last accounts 9 million, yeah, compared to 12 million in in in the States. Is there a particular emphasis on growing faster outside of the UK than than here? Yeah, I mean the big pushes into the United States has been for some time. As you rightly say, we've invested in in people out there. Mike Pearson has joined us, came from Zodiac and has done an amazing job in allowing the watch communities of which there are many in the US to see and feel Christopher Ward in the metal as well as virtually through the website. We're now able to have not just one showroom, but three. So we can customize and bespoke your watch for you in front of your eyes, you know, and it's just a really great environment for for people to connect with the brand. The the view through into the clinic adds a bit of theatre. Anybody who's into watches or even anybody who's not into watches, if they come hit, that just is something that they really, really, really want to get on there. Yeah. You talked about seeing things in in the metal and now that's obviously been something that Christopher has never really been particularly associated with, but it means essentially you've got face to face contact with customers on a on a very, very regular basis now. And that wasn't an opportunity five years ago. No. And so we see it as just that an opportunity. We think the business and the brand is now ready and we do it in a, you know, we've opened a showroom in Dallas and we'll have a showroom next year in. Would be on Northern Hub, which will be in Everton's new stadium where a founding partner of the new stadium. It looks and feels like, and I've always felt this, that there's a big opportunity for physical locations on our terms, which are actually the customers terms. In quite a few locations worldwide. So the showroom space that we've seen here in your in your headquarters is a, is a model that's almost a, a style of furniture and presentation and a lot of work went into trying to create the best possible experience. And that's being transported in a different way because you have to reflect the geography and the customer base and American customers are different to British customers in some really subtle ways. You need to make sure that. Have the ability to learn, Taylor learn, keep tailoring, make the experience as good as it can be. And that's always why, you know, that's the advantage of working with retailers. They are the people who understand their local community best. Well, I know you give up margin, but well, you know, between Peter and I, we, I opened close to 1000 stores in my career. So I probably know a little bit about retail as well. Sure, that's true. That's a fair, fair point. I guess to finish, I would like to touch on the Alliance of British Watch and clock. Delighted to I can be cynical. About quangos and cooperatives and and all this sort of these sort of things that can, you know, can confine themselves quite quickly, justifying their own existence rather than making anything happen for for but I but I would say hats off. You've achieved way, way more than I expected in the in the first few years. I thought the British watchmakers day earlier this year was it was phenomenal and I look forward to next year's addition as well. What's what's actually happening in terms of ensuring that the that the individual. Parts for the British watch industry add up to more than their Yeah, this yeah, some of the parks yeah. The purpose of the the alliance is to effectively put some sunlight onto the British watch industry and I think things like the British watchmakers Day and the the first bellwether report that has ever been commissioned on the. Industry in this country we're also. Very, very, very keen to encourage more and more of the best talent wherever they are. To come into the industry, we're just trying to facilitate. Those conversations and those engagements and shine a light on it and. Thus far, it's, it's proven to be something that is a value to the 100 and now 102 companies who are involved. But I think a lot of people would have thought that watchmaking is in the is in the title. But your philosophy is more that the British are entrepreneurial, great designers, great marketing, great at hustling, you know, probably, probably willing to roll up their sleeves and, and get stuck in a little more than other parts of the, of the watchmaking watchmaking world. Is that, is that where we're likely to be over the next 10 to 20 years? Is it ever likely to get there? Could we get to German levels? I don't know. Nobody knows. But I suspect it's unlikely that we'll get to German levels. Might be wrong by that. I think we can be a leading player in terms of the development of new ideas in watchmaking and we have such a rich heritage in mechanical engineering this country. I still think it's in our DNA. What matters is that we encourage more people to get interested in. Designing, producing watchers buying watches in the UK than ever before and that in itself should generate some sort of upward momentum. Great. Well, congratulations on the 1st 20 years. Look forward to the next 23 places on the new, on the new headquarters and showrooms. It's all looking great. Thank you. Alright, cheers. Cheers.