Consumer Software & Services: Company presentation by Philipp Man, CEO of Chronext at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.
3. CHRONEXT IS CREATING THE DIGITAL PLATFORM
FOR THE WATCH INDUSTRY
THE PREMIER DESTINATION FOR LUXURY WATCHES
4.
5. 4
We control communication, authenticity and logistics for every transaction
HUB
authentication &
quality control
Brands
Authorized
retailers
Independent
retailers
Private
sellers
To own the experience, you need to own the product flow
Supply Demand
Payment of Goods
Buyers
Logistics inbound
Secure Payment
Logistics Outbound
6. WE ARE WATCH PEOPLE
MISSION:
BUILDING THE MOST RELAXED WAY
TO BUY, SELL AND OWN A LUXURY WATCH
7. WHAT WE HAVE ACHIEVED SO FAR AND THE OPPORTUNITY
AT HAND
8. 7
CHRONEXT has rapidly evolved to the premier luxury watch destination
Market leader in DACH
region and increasingly strong
market position in all
relevant markets
97% NET REVENUE
GROWTH IN H1 2019
NO. 1
MARKET POSITION
Strong growth track record
with major take-rate
improvements
Huge untapped
market potential
€5,000
AOV
€80BN LUXURY WATCH
MARKET OPPORTUNITY
Average order value
at the top range across
online players, well above
customer acquisition cost
Integrations of global
supplier inventory
30,000 HAPPY
CUSTOMERS TO DATE
ACCESS TO €1.3bn
IN NEW WATCHES
Excellent customer satisfaction
underpinned
by consistent top reviews
across major trust sites
Numerous brand partnerships
built to date exemplify the
exceptional trust from the
luxury watch industry
15 BRAND
PARTNERSHIPS
Unparalleled choice of
verified and authenticated
watches on platform with
immediate availability
10,000
LUXURY TIMEPIECES
DACH
9. 8
The luxury watch industry is facing change like never before
Source: Bain & Company
Today
Today:
Offline and mostly new
Mostly offline and mostly new watches being sold through
authorized POS
Majority of pre-purchase research already online but ultimate
transaction in store
Demand mainly from baby boomers and Gen X that are not
fully online savvy yet
Customer is confronted with waitlists, limited offline selection
and little to no high quality pre-owned choice in the market
Online as the dominant channel with a strong click & collect
proposition, with significantly less POS globally
Every single luxury watch purchase begins online and will
either convert or be initiated via e-commerce
Demand mainly from digital-savvy Gen Y and Gen Z:
“the hipster” who favors limited drops, vintage and CPO
(certified pre-owned)
Pre-owned as significant revenue stream effectively sold
alongside new watches with watch brands embracing the dual
verticals co-existing
Tomorrow:
Omni-channel and rise of CPO
11. 10
Winning combination of new watches and certified pre-owned
New Watches
Fast availability of highly
sought after current
collection models
Fair market prices,
updated daily
Guaranteed authenticity
and end-to-end customer
service
Certified Pre-
Owned Watches
High CHRONEXT certified
pre-owned standards for
quality
Wide selection from
current collection models
all the way to rare vintage
pieces
Ability for customers to
trade-in their own pre-
owned watches
Trade-Ins
12. 11
We offer the most relaxed way to buy, sell and own a luxury watch
Widest selection
of new, certified pre-
owned and vintage
Instant availability
with next day shipping
High quality content &
photography
Best-in-class
customer reviews
Personal
customer service
Guaranteed authenticity
& 24-month warranty
15 pick-up lounges
across the globe
Simple selling
and trade-in
13. 12
TrustScore 4.8 / 5
Very good – 5/5
“Ordered a Rolex Chronograph and I‘m very
happy with my choice. The price was more
than okay and the watch delivered for free.
Moreover the support answers are very fast
and professional if you‘ve got any questions
with your order.”
Very good – 5/5
“This shop is great. International shipping.
The email traffic works perfectly, as well
as the telephone service. Thank you
for the competent advice and free
international shipping.”
TrustScore 4.93 / 5
Very good – 5/5
“The order worked perfectly. The speedy
shipping to the Lounge in Berlin and the
personal pickup – in combination with a
pleasant conversation – were really fun.”
Very good – 5/5
“That was all around a successful purchase.
The order, the delivery time and then the
pickup were first class. That was certainly
not my last purchase. Many Thanks.”
Source: Trustpilot, Trusted shops
The result is strong traction with our customers
15. 14
Fast and simple process for private customers to sell and trade-in watches
enables us to become the leader in the €20bn pre-owned watch market
Customer places
appraisal request
CHRONEXT makes
purchase and/or
commission offer
Watch picked up
and verified
Pay out or credit
for trade-in
Ability to trade in watches drives repeat transactions that are mostly not possible offline
Simple, consumer
oriented process allows
anyone to sell their watch
Risk free for customer
compared to traditional
marketplace models
Ability to trade-in old
watches for any watch
sold on CHRONEXT
Attractive CM1 with
20%+ take rate
17. 16
SaaS tool for retailers to accept trade-ins
Our solution enables instant part-exchange pricing for customers in traditional retail stores
18. 17
Fast process powered by CHRONEXT technology platform
Our solution enables trade-in for customers in traditional retail stores
Retailer POS Terminal
100 retailer locations already
onboarded
Average trade-in basket > €6.000
Monthly paid subscription model for
retailers
Pricing Engine
CHRONEXT
purchases pre-owned
watch from customer
Retailer
sells new watch to
customer
19. 18
Accessing €800bn in global pre-owned inventory
Building out both consumer and retailer platform to gain access to the world’s pre-owned inventory
Retailer
platform
Consumer
platform
€800bn inventory
20. 19
CHRONEXT certified pre-owned standard offers exceptional quality to consumers
Guaranteed authenticity
& 24-month warranty
In-house refurbishment
by highly-skilled
watchmakers
Rigorous quality
assurance
Wide selection from
vintage to current
collection
22. 21
Very strong trading in 2019 year to date
YTD Sep 19YTD Sep 18
+97%
YTD Sep 18 YTD Sep 19
+94%
YTD Sep 18 YTD Sep 19
-17%
Net sales are growing 35x faster than the luxury watch industry
Net Sales Take Rate Customer Acquisition Costs
24. 23
Key strategic goals for CHRONEXT
Build out certified pre-owned business in partnership with retailers
Continue partnering with luxury watch brands and retailers to help the industry
transition into the digital space
Help brands create a single unified view of all inventory