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Thursday, March 2, 2017

Huh... part deux

I want to get it, want to understand it, but I just don't.

I suspect it is not new news to regular readers, but to be clear, I am no fan of Invicta.  And in fairness, I therefore do not cover them.

Having said that, many people had mixed emotions when Invicta purchased Glycine.  My feeling at the time was that Glycine was drowning and they needed oxygen (or more specifically, money), and that so long as Invicta was treating this as a purchase/investment and tried to help Glycine recover from the mess it was in, well then it would not necessarily be a bad thing.

But then some interesting things started happening - Glycine watches began to run fast and thick in the grey market and it was clear that the intention was to liquidate large portions of the previous collections.  While this might have quickly infused some much needed cash, it had two other consequences -

1.  Retail partners, you know the ones who you had been working with and encouraging to buy your watches?  They were really not happy and the current number of retail partners in the US appears to have thinned and reflects that sentiment.

2. Previous customers and Airman devotees felt that Glycine had simply abandoned them as they watched the resale value of their collections plummet.

Interesting to relate, new Glycine Airman models have popped up on the Glycine website and to put it gently, they are pretty underwhelming -


Courtesy of Glycine
And maybe, just maybe it might be necessary for Glycine to simply go bland.  Ultimately, it is a business, and they have to run it the way they see fit, but why in God's name would I, the consumer, would pay full price or even a modest discount when I can pick up a fire sale priced Airman from the light grey market?

https://www.massdrop.com/buy/glycine-airman-18-automatic-watch

https://www.touchofmodern.com/sales/glycine-15ff1e7e-5751-4d43-850d-3e0c5f9d659f#

Again, brands have to do what they have to do, but if they continue to slash and burn to clear stock at less than 30 cents on the dollar, they continue to do irreparable damage to themselves.  And what makes me really frustrated when I think about Glycine and other brands out there doing dumps in the light grey market?  They could simply open their own damn online shop, and offer the occasional special offer to ease overstock without simply dumping it and gutting their own market.  And in the process they would not only solve short-term cash flow problems, they would strengthen the bond between themselves and their customers who felt that they got a good deal, and that their loyalty was rewarded - not taken for granted.

Nothing can stay the same forever, but I will hang onto my Airman for now, and hope that more long-term planning will emerge from the Glycine/Invicta brain trust.



1 comment:

  1. For certain brands ostensible MSRP pricing exists only to show a maximum apparent discount. The actual net price these brands intend to sell the watches for is pre-determined and usually less than 50% of the MSRP. It might seem deceptive , but if it works among the marginally aware consumer that only cares about the biggest discount, who's to say if its right or wrong if it works?

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