Chris Ward: Christopher Ward Case Study

3. Timeline
• Initial idea formulated in 2004

6. Watches
Ornament
Leather
Jewellery
Garden
Medicare
Household
Gadget

7. 0
10
20
30
40
50
60
70
Ad occurences
Watches Ornament Leather Jewellery Garden Medicare Household Gadget
Series1

8. This report is supplied in accordance with Mintel's terms & conditions.
© Mintel International Group Limited
Jewellery and Watches Retailing - UK - October 2003
Executive Summary
High levels of consumer confidence driving growth
The jewellery and watches market has benefited from high levels of consumer confidence, more innovative designs and the trend towards more
branded jewellery. Total consumer spending on jewellery and watches grew strongly between 1998 and 2002, increasing by 28% to a value
of £3.2 billion. At constant 1998 prices, sales increased by 18%.
Precious jewellery is the dominant segment
The largest market segment is precious jewellery, which includes gold, silver and other precious metals. It also includes diamonds, which have been
a very buoyant sector of the market in recent years. Spend on precious metal jewellery rose by 17% between 2000 and 2002 to reach nearly
£2.2 billion. Watches also had a buoyant time, with a rise of 7.1% in consumer spending. The costume jewellery market increased by 12.3%
to reach £365 million.

9. Mintel Key points SWOT
watches = quartz digital, quartz analogue, mechanical MARKET
40% internet usage at home amongst adults and growing SO
45% Digital/cable SO
68% on mobile phone NA
Acorn - expanding, aspiring = jewellry = 22%=main O
trend toward branded Jewellery SO
Growth market @ £3.2bn SO
Core market is actually ,people like us at the ABC1 end S
Working women - growth area O
Traditional watches/jewellery in decline O
Jewellery is more for today than for longevity O
Regular change is more O
watch replacement can be encouraged O
Argos especially important C1C2 D T
45yrs plus like specialist TW
index/argos/qvc=high level trust/no need to touch SO
co-ordination more to the fore O
Asda / walmart threat? T
department stores maybe good benchmark NA
Good retail design important - away from traditionalist SO
Polariasation to two sectors 15-24 & 45+ O
Distribution channels will expand O
future is bright S
mkt growing @5% in real terms over 10 years S
Design led can demand a slight premium O

16. Timeline
• Initial idea formulated in 2004
• Simple aim – to bring high quality luxury
watches within the reach of most people
• Or.. To Make the Cheapest Most Expensive
Watches in the World
– Using Swiss movements
– Assembled in Asia
– Appropriate Business Model

17. Business Model
Cases £30
Mvt. £50
Other £20
Total £100

18. Business Model
Cases £30
Mvt. £50
Other £20
Total £100
x2.5 to x3.0

19. Business Model
Cases £30
Mvt. £50
Other £20
Total £100
x2.5 to x3.0
£250 to £300
£275

20. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Swiss Brands ‘R’ Us

21. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Swiss Brands ‘R’ Us

22. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Brand Hype £18
Swiss Brands ‘R’ Us

23. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Brand Hype £18
Brand % £50
Swiss Brands ‘R’ Us

24. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Brand Hype £18
Brand% £50
Distributor % £68
Swiss Brands ‘R’ Us

25. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Brand Hype £18
Brand% £50
Distributor % £68
Total £235
Swiss Brands ‘R’ Us

26. Business Model
Cases £27
Mvt. £45
Other £18
Total £90
Agents £9
Brand Hype £18
Brand% £50
Distributor % £68
Total £235
Retailer @x4 £940
Swiss Brands ‘R’ Us

27. Business Model
£940Swiss Brands ‘R’ Us
£275

45. Timeline
• Initial idea formulated in 2004
• 12 months development to 1st watch

49. Timeline
• Initial idea formulated in 2004
• 12 months development to 1st watch
• Advertised - sold first watch off the page 2005

50. Timeline
• Initial idea formulated in 2004
• Sold first watch off the page & PPC in 2005
– Supported by a simple transactional website
– Call centre

54. Timeline - 2005
• Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work

55. Timeline - 2005
• Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work
• Expanded the range
• Developed the website a little

61. Timeline - 2005
• Soon became clear that 1 product in 1
Advertising Channel was going to be hard
work
• Expanded the range
• Developed the website a little
• Entered the world of PPC in 2006 – with an
outside agency

62. Timeline - 2006
• Conventional wisdom said “the Holy Grail was
at the end of a ‘long tail’ of keywords”
• Conventional Wisdom lied….
• ROI severely dented through wasted effort on
non-converting terms

63. Timeline - 2006
• Inadvertently entered the Social Networking
world
• Independent Forum created dedicated to CW
• Still independent
• 3000+ members
• 100000 posts
• 7000 topics

64. Sales Growth
0
20
40
60
80
100
120
140
160
180
2005 2006 2007 2008 2009 2010 2011
7+69%

65. Timeline
• Initial idea formulated in 2004
• Sold first watch Off The Page & PPC in 2005
• Social Networking in 2006

66. Timeline - 2007
• Engaged in Affiliate Marketing Programme
• At the time accounted for 25 -30% of revenue
• Signed around 2300 affiliates
• Expanded the range again
• Tweaked the website
• Trialled our first catalogue
• Upgraded our email platform

67. Sales Growth
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010 2011
25+190%

68. Timeline
• Initial idea formulated in 2004
• Sold first watch Off The Page & PPC in 2005
• Social Networking in 2006
• Email, Affiliate and Catalogue in 2007

69. Timeline - 2008
• Supposed to be consolidation and push on
catalogues following success of 2007 trial
• 500,000 catalogues
• Priced up
• Production to match

71. Timeline - 2008
• Supposed to be consolidation and push on
catalogues following success of 2007 trial
• 500,000 catalogues
• Priced up
• Production to match
• Swatch group stop supplying movements in
Asia
• Armageddon hits in October 2008 - Recession

74. Timeline - 2008
• 12% increase in £SP due to move to
Switzerland
• Further 8% increase due to exchange rates
• Production already made plus missed budgets
meant overstocks in 2009.
• Cash becomes tight

75. Sales Growth
0
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010 2011
53+142%

76. Timeline
• Initial idea formulated in 2004
• Sold first watch Off The Page & PPC in 2005
• Social Networking in 2006
• Email, Affiliate and Catalogue in 2007
• 100% move to Switzerland and Recession in 2008

77. Timeline - 2009
• A new Website was developed with Screen
Pages on the Magento Platform
• Conversion increased by +20%
• Emphasis was given to SEO rather than PPC
• Supply Chain sorted
– Better quality
– Access to better movements
– Shorter lead-time – allowing reduced stockholding

78. Timeline - 2009
• The Pig in the Python need to be addressed

79. Timeline - 2009
• The Pig in the Python need to be addressed
• The current Marketing Mix consisted
– Email to a very retentive database
– Affiliate Programme taking 33% of the revenue
– Search focussed on SEO rather than PPC
– Catalogue – including offers to Database
– Higher converting Website

80. Timeline - 2009
• As a luxury brand still relatively young – Slash
and Burn tactics on the site ... ? ... NO
• Email – targeted campaigns
• Affiliate – Incentives, exclusive discounts &
Vouchers
• Allowed us to keep site relatively clean
• Retain Brand Integrity
• Reduce stocks to 6 weeks forward within 1 year

81. Sales Growth
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2005 2006 2007 2008 2009 2010 2011
71+47%

84. Timeline
• Initial idea formulated in 2004
• Sold first watch Off The Page & PPC in 2005
• Social Networking in 2006
• Email, Affiliate and Catalogue in 2007
• 100% move to Switzerland and Recession in 2008
• New Website – Focus on SEO - 2009

85. Timeline - 2010
• A change from Catalogue to Magalogue

86. Timeline - 2010
• A change from Catalogue to Magalogue
• Online Version too

87. Timeline - 2010
• A change from Catalogue to Magalogue
• Online Version too
• Extension to the range – up to £750

89. Timeline - 2010
• A change from Catalogue to Magalogue
• Online Version too
• Extension to the range – up to £750
• Swiss Chronometer Status
• Secure supply chain
• Trading +65%
• AOV = £259 from £178

90. Sales Growth
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009 2010 2011
82+65%

91. Timeline - 2011
• Further integration of front & back end
systems
• Improved content on website – mainly video
• Move towards direct from Switzerland
• Setting up a world beating after sales service
• Creation of a Euro site

92. Sales Growth
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2005 2006 2007 2008 2009 2010 2011
82+35%

93. 2011 & beyond
• Target- to be the UK’s largest watchmaker by
2014
• Nurture Social Networking
• Wind down Affiliates – currently down to 11
• Improve the way we present ourselves
• Rebrand
• Develop much more complicated watches

115. Looking back over 10 yrs
• Still growing at 35% compound
• Selling 300 watches
• 3 websites and plans for more
• In house capability for movements and
assembly
• Operations in UK, Switzerland, USA and China
• With combined sales of close to £10m

116. Work Smart
Work incredibly Hard
Have Fun