Business model
The following characteristics of our Group are considered a key differentiator to our competitors and create a high barrier to entry for new entrants into the market.
How the Group creates value
Strong and long-standing relationships with the most recognised and prestigious luxury watch and jewellery brands. These relationships have been forged over many years and include new relationships with developing brands.
We collaborate with our long-standing brand partners to elevate and expand their distribution and partner on demand forecasting, product launches, showroom projects, online, clienteling, marketing events and learning and development for our colleagues.
Our clients purchase our products through our retail network of directly operated showrooms. These include multi-brand showrooms, a presence in travel retail, online and a growing portfolio of mono-brand boutiques in partnership with our brands.
Our well-invested showrooms are luxurious, open, welcoming, contemporary, spacious, non-intimidating and browsable. The design concept is regularly assessed in order to ensure we continue to appeal to a broad client demographic and drive high levels of productivity across our estate.
We offer the greatest choice of brands and products in the world of luxury watches and jewellery. We aim to make our clients feel welcome through unintimidating, inviting, browsable, modern and luxurious environments in our showrooms and online.
Our showroom colleagues provide expertise and knowledge to ensure an exceptional client experience through extensive learning and development.
We have developed our industry-leading Xenia Client Experience Programme throughout the business.
We deliver impactful marketing focused on digital communications, Client Relationship Management, PR, client experiences and co-operative activity with brand partners. Our editorial content across watches and jewellery provides an authoritative voice within our market.
Our multi-channel model spans a well-invested showroom network, with flagships, regional showrooms, travel retail and mono-brand boutiques complemented by market-leading ecommerce platforms. The Group has a truly multi-channel approach, which includes click and collect, appointment system and the Luxury Watch and Jewellery Virtual Boutique.
Technology: Our fully integrated IT systems are based on a single SAP platform powering showroom points of sale, CRM, reporting solutions, live inventory availability and operations. The single platform enables rapid expansion capabilities in new markets or through acquisitions.
Merchandising: Dynamic inventory management optimises stock availability, enhances showroom productivity and in the UK, allows for nationwide coverage, giving us a key competitive advantage.
Retail operations: We aim to continually drive productivity and profitability, with a high level of accountability and performance management.
High barriers to entry created through national coverage in the UK with a portfolio of 158 showrooms and a growing presence in the US with 56 showrooms (as at 28 April 2024).
Through focused investment we drive growth, generate shareholder value and ensure the long-term sustainable future of the Group.
Financial performance: We run all our showrooms to be profitable, leveraging showroom and central overheads through top line growth with strict investment criteria on projects or investment opportunities.
Cash generation: The strong, consistent generation of cash is fuelled by strict working capital management, with sufficient liquidity to fund growth and to provide for potential acquisition opportunities.
We take a disciplined and data-led approach to return on investment, aiming to deliver long-term sustainable earnings growth whilst retaining financial capability to invest in our business and to execute our strategic priorities.
We are committed to building a great place to work by giving colleagues every reason to join, grow and stay with our Group. We recognise the many benefits a diverse and inclusive workforce can bring and embrace all talent.
We aim to develop and grow our colleagues through significant investment in training and development. This is supported by promoting an open and inclusive environment through listening to our colleagues.
The Group has launched The Watches of Switzerland Group Foundation which supports a number of causes, with an emphasis on helping poor and vulnerable people out of poverty.
We are determined to operate to high levels of environmental stewardship, while safeguarding against climate related risk and supporting a more circular economy, through our repairs and pre-owned businesses.
We are committed to making sure our supply chain operates responsibly and that everyone we do business with, respects and protects the lives of workers, their communities and the planet.
We have reinforced our commitment to caring for our planet, by linking our existing loan facility to the achievement of our near-term science-based emission reduction targets and circularity goals.
