BackThis Is The Time For Grand Seiko
Seiko president Shinji Hattori speaks about watchmaker's centenary and the newfound global ambition for the Grand Seiko
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One of the highlights of this watch season has been the robust offerings by the big Japanese brands. It is as if the risk-averseness of the traditional European brands has helped to highlight how much original thinking comes out of Japan each year. Seiko was no exception. In 2013, Seiko celebrates 100 years of fine watchmaking. We spoke to Shinji Hattori, president of Seiko Watches, about the centenary and the company’s newfound global ambition for the Grand Seiko. Edited excerpts:
This is a big year for Seiko.
Yes. We are marking 100 years of watchmaking at Seiko.
How are you celebrating the occasion? Are you doing something special? Perhaps in Japan?
Nothing special, really. We’re focusing on making good watches. To mark the occasion, we are making a special version of the GPS Astron. The Kintaro Hattori Special Limited Edition. As you know, Kintaro Hattori was the founder of the company. If you look on the other side, we have inscribed it around the logo. And the logo is the original logo that was registered by Kintaro Hattori in 1900. It also has the founder’s motto: One step ahead of the rest.
Interesting combination. You have your old history on the back. And your latest watch on the front…
And it is middle-aged in the middle! A 100-year-old sandwich.
We touched upon this briefly in our interview last year. There is a big challenge in the world to source movements. A lot of people are very worried. And you are one of the world’s biggest movement makers. Do you see a strategic opportunity there for you?
We do sell a few mechanical movements to the others. But the vast majority we still use for our own watches. The sales for Seiko and Grand Seiko are really growing. So we have no intention of expanding our sales to the others. All our efforts are still to meet the growing demand internally.
And where is this growth coming from? Which global markets are doing well?
India, for example, is doing very well. Asia and the Middle East are particularly strong.
The Japanese brands have always had a reputation for making high-tech watches that combine telling time and new technology. Suddenly you are seeing a booming interest in the smart watch. Everyone is talking about it. Everyone from Apple to Microsoft seems to be interested in making one. Where is Seiko on this? Do you see potential? Will we see a Seiko smart watch? Are there secret plans?
Nothing special now. I have read articles about these items. I think, without a doubt, they will be a factor. They will create new demands in the watch industry. They will create a new segment.
The important thing is that the wristwatch is not just a tool to tell the time. We’ve seen this kind of talk before. When the world was flooded with digital watches. Yet we are still growing in the traditional watch industry.
These smart watches are really tools. And I don’t think Seiko wants to be in the business of making tools. We want to invest and grow in the field of traditional watchmaking. We want to bring in new technology. No doubt. But within sight of our brand history. We want owners to be excited by our watches. But we will not approach it as an IT product or a tool.
Still, there is a threat here. Young people might decide that instead of spending money on Swiss watches or traditional tech, they might just want to acquire one of these tools. Is this youth segment important for you? Are your targeting them in any way?
The Grand Seiko is a mature product for a mature buyer. Perhaps someone who is 50 or 60 years old. Younger buyers will reach for functional watches. Watches like the GPS Astron and our other models are targeted at them.
Two years ago, I think, at your press conference, you said you wanted to expand the reach of the Grand Seiko line and make it a proper global brand. How far advanced is that project?
It is coming to India this year. The Grand Seiko line is growing. Especially in Asia. It is a little bit slow in Europe. And presence in the United States is slow…
Do you worry about that? Do you have the capacity to really push for growth in these markets?
We have plenty of capacity to make watches. That is not a problem at all. Japan continues to be the core market for the Grand Seiko line. But already we have around 100 retail partners in 25 countries. We’re very happy with that result.
In India, we will launch it from Seiko boutiques this year. In Europe, especially Germany and France, it is slowly doing better.
Interesting question. Pricing, perhaps, is a problem. For years and years, we have been selling middle-priced watches in America and Europe. So I think we have this established brand image amongst consumers of being a middle-priced watchmaker.
The Grand Seiko, obviously, costs several times more than ordinary Seiko watches. It will take some time to change people’s mindset. It is a deeply entrenched idea of the brand.
In fact, it took us a long time to educate the Japanese market itself about the Grand Seiko. And today, we’re doing double-digit growth for the Grand Seiko in what is essentially a lumping Japanese market. We’ve doubled Grand Seiko sales in Japan in five-six years. In Asia, we have a higher brand image than elsewhere.
To me, it just seems to be a problem of markets appreciating what goes into making a Grand Seiko.
Exactly. In markets like France and Germany, where there are a lot of people who really understand sophisticated watchmaking, our high-end pieces do very well. That is a positive sign. The more appreciation for fine watchmaking grows, the better Grand Seiko will do in these markets.
In fact, this morning, one journalist from Hong Kong told me that the Grand Seiko was too low priced. Compared to its build quality…you know.
Also, this seems to be the right time for a Grand Seiko. Ten years ago, when we were making these elegant, sober watches, everyone else was making huge watches. Today, when the economy has slowed down, there is a renewed appreciation for sober design.
Finally, how is India doing for you? Are you happy?
For us, India is the market in Asia with the highest potential. And we are expecting to do well with the Astron and the Grand Seiko.
In India, we’ve been waiting to create the right kind of space with the right kind of people to retail the Grand Seiko. The space must do justice to the watches.
The last time I met you, you were wearing a vintage Credor. Now you’re wearing the new GPS Astron. Have you moved ahead in time and become modern and high tech as well?
Personally, I really like thin watches. Credor does very well in Japan. It is not very widely known outside. But for now our intention is to focus on Grand Seiko and the Astron as our focus lines for the international markets.
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