The Hindu Business Line : The Omega story

MARKETERS often say that to make a brand, one has to live the brand. In other words, even one's thinking and approach should in some way imbibe and reflect the values of the brand. This is possibly one of the first thoughts that come to mind when visiting the factory of Swiss watchmaker Omega, a Swatch group brand, in Switzerland's prime bilingual town Bienne (or Biel, as the Swiss Germans call it). The attire is formal, the surroundings orderly and unobtrusive. The air conveys the seriousness of about 200 watchmakers at work in full concentration. A remark in this regard gets an affirmative acknowledgement. In fact, officials point out that the scenario would be totally different at the headquarters of another group brand, Swatch, where employees zip into office in casuals and the brightly painted surroundings convey the youth and vibrant qualities that define the brand.

The second striking aspect about the factory is its magnitude. One would imagine the manufacturing operations of one of the world's largest watch brands would be a sprawling set-up, ticking with action. Not quite so in reality though. The operations at Omega are neatly divided depending on the line of the watch and equipped with precision instruments used by only about 200 watchmakers at the factory. The division, for instance, where the famous Tourbillion watch (about Rs 17 lakh) is made, has got specialist watchmakers who create the famed movement of the watch. On the notice board are charts showing orders placed by consumers located in various countries for the Tourbillion (the watches are customised according to a customer's preference). In fact, a watchmaker in the division remarks that with only 20 Tourbillions made per year, there is a sizeable waiting list for the watch.

Meanwhile, a cursory glance at the notice board reveals that many of the orders placed for the watch come from markets such as China and Russia, showing perhaps Omega's rising potential in developing markets. Though India does not figure on the list yet, Omega does see India as one of the high-potential markets for luxury watches. In fact, the Omega President, Stephen Urquhart, had said that India has the potential to become one of the ten largest markets for Omega in the next five years.

The Omega facility also sees the interesting trajectory of the watch from the design stage to the final one. An official remarks that this is just one of the things that makes a watchmaker tick. Says Jean-Claude Monachon, Vice-President (Product Development), Omega, "It gives a real sense of satisfaction to see an `idea' progress on to the consumer's wrist." While the development of a new product can take at least 18 months, a new movement will take about three to five years to develop. A facelift to an existing model takes from six months to about a year-and-a-half.

Along with product development, brand building is an essential component at the watch company. Associated with glamour and sports the world over, marketing exercises at Omega revolve around the five different aspects which it stands for. That is: O for Olympics (referring mainly to sports time-keeping), M for Mega-precision, E for Elegance, G for Geographic and A for Astronaut. Strange acronym? Not really, considering the fact that the watch has been used by marine divers and astronauts alike for the past many decades. Omega is the only watch to be approved by NASA to be taken into outer space.

Anna Kournikova at the Bobsleigh Cup in St. Moritz

A glimpse of Omega's association with both the lifestyle and the sporting aspect could be had from the recently-held Omega Bobsleigh Cup at the high-profile Swiss ski resort of St. Moritz which saw participation from not only the Omega brand ambassador Anna Kournikova but also Omega spokespersons from seven different countries including Sonali Bendre from India. The bobsleigh run was followed by the launch of a new St. Moritz watch (which will also be rolled out in India soon) and the announcement of a new partnership between the Swatch Group and St. Moritz. Other `global' brand ambassadors of Omega include Pierce Brosnan, Michael Schumacher, Cindy Crawford and Alexander Popov among many more. Incidentally, the company also follows a local strategy in its key markets by signing up local ambassadors.

The Omega Speedmaster watch, which went to the moon

Omega has also diversified its product offering to include jewellery, which is now sold under the Omega Bijoux brand name. And given the Indian consumer's fancy for jewellery, Omega is set to launch the range in the country as well later on this year. The jewellery, which consists of necklaces, earrings, rings and cuff links, will be sold through exclusive Omega boutiques in India, the first of which is coming up in Mumbai followed by Bangalore and Delhi at a later stage.

Market analysts point out that though Omega's watch sales might at present be less as compared to developing markets such as China, the company may just hit the right chord with its jewellery. Of course, it may have to take the help of much research to understand the psyche of the local consumer (such as the Indian consumer's affinity to 22 carat and yellow gold) before launching the jewellery. But the main focus would remain the watches. With its distribution network now in place in the country and growing purchasing power and awareness, it is probably just a matter of time before the tick of the more than 150-year-old brand gets louder in India as well.

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