Canadian Luxury Brand RUFUS GERARD Realigns Strategy, Cites Changing Consumer Behavior
Rufus Gerard, Canada’s only independent luxury watch brand, has realigned its business strategy to accommodate changes in consumer behavior due to the deteriorating global economy.
The company’s flagship model, the Lacus Temporis luxury automatic chronograph, is currently available in a limited edition of only 350 watches worldwide, and
despite a price tag of US$8,800, continues to do well.
However, chief designer Rufus Lin says: “Although we continue to see customers for whom price is not a consideration when purchasing a high-end luxury watch, the
number of people willing to pay up to US$10,000 for a watch has dropped significantly, compared with even a year ago.”
Instead, according to a detailed study by the company of market conditions in North America and Japan, the number of people considering fine watches from Switzerland and Germany in the US$1,000 to $5,000 range has grown considerably. This has led to luxury watch manufacturers scaling back on introducing new top-end models, but instead increasing production of watches in the lower price range.
Notwithstanding the shift in consumer behavior arising from the economic climate, retailers have reported that consumers continue to demand the highest quality,luxury finishes, fine materials and customer service, even though their budgets have shrunk.
In view of the findings, the Rufus Gerard Watch Company has revamped its product strategy, so that subsequent models fall within the retail price range of US$3,000 to US$5,000. “We are pleased that our exclusive limited edition watches will now be available to a broader group of consumers,” notes Mr. Lin.
In order to reduce the price without a substantial drop in luxury or quality, various innovations are currently being implemented in design, production, marketing and
Rufus Lin Designs specializes in the distribution of high-end luxury watches from independent watchmakers in Germany and Switzerland, and is the worldwide sole distributor for the Rufus Gerard Watch Company. For further information, please contact David Leo, Manager Business Development at [email protected] or phone: (604) 232-9765. Interviews and high-resolution watch images can be arranged.