The WatchBox Lounge at Dubai Watch Week offered visitors a chance to explore a curated selection of pre-owned watches from the company’s $80 million global inventory, and engage with WatchBox’s expert advisors to learn more about the global pre-owned platform and the services available to watch enthusiasts worldwide. Amanda Ellison – Global President & COO of WatchBox – sat down with us on the side lines of Dubai Watch Week to explain the new concept that is taking the world of horology by storm
Can you tell us about WatchBox and how it was started?
WatchBox was birthed in November 2017, officially as a brand. But its origins lie in a 100-year-old retailer in the US, by the name of Govberg. The pre-owned was a really strong market for Govberg, and they were pioneers in the field of pre-owned. When Danny Govberg partnered with Liam Wee Tay and Justin Reis, they decided that they were going to really focus on the pre-owned market and then we came up with the concept of WatchBox.
How did you cover the huge investment needed as start-up capital for WatchBox? And how does the whole concept of re-sell and buying pre-owned watches happen on WatchBox?
We have our investors who believe in us. We work differently; rather than describe ourselves as an e-commerce platform, I like to describe WatchBox as a personal-commerce forum. The journey starts online, but generally ends on the phone. We do buy from the consumer and sell to another consumer, and nobody does that. You usually go to 47th Street in New York or to the Souq here and the dealer is flipping; it is little, small margins that the dealer gets. We look at the watches in a very different way; we invest in our watches, we re-finish our watches; we service our watches; we guarantee our watches. We really take the primary mindset and apply it to pre-owned and elevate the whole pre-owned experience.
How does the selection process work? Do you buy all the watches that come to you, or do you buy only select brands and/or select models?
We actually manage our portfolio almost like a stock portfolio; we have analysts, we look at certain aspects of each brand and we buy according to the data we have through the portfolio management. There is also the personal touch and the gut-feeling of the trader; I would say that in our buying choices, science meets art and that is how the decision is made. We don’t buy every watch that comes our way, and we own all the watches that are offered on WatchBox.
Now that WatchBox has gone global, would you be expanding your portfolio to independent brands as the Asian market is more welcoming of independent watch brands?
Yes, you always have to be sensitive to the nuances of each region; the cultures are different as are the approaches and the tastes. You have to understand that not one size fits all. But we have understood through analytics that certain core brands and certain core models work in each and every market. There are also nuances to each market and special models and brands are more popular in one market than another. We look at it globally; we also look at it locally. It is global mindset, local expertise.
Which brands are doing the best globally? And other than these global brands, which brands are doing best in regional markets?
Our number one brand is Patek Philippe. Number two is Rolex, then F.P.Journe, followed by Audemars Piguet. In the regional markets, Officine Panerai does very well in the US; Richard Mille is a hot-seller in Asia; we are still learning about Dubai. In Switzerland, I don’t think any particular brand has stood out.
How did the partnership with Ahmed Seddiqi & Sons begin?
The first contact happened through Patrik Hoffmann, the Executive Vice President of the company’s Swiss division. Patrik knew Abdul Hamied Seddiqi, Vice Chairman, Ahmed Seddiqi & Sons, from his days at Ulysses Nardin, and he made a brief presentation at Basel to Mr Hamied, who then came out to visit us at Philadelphia in July of 2018, followed shortly after by the family. I came here later; there were a few visits back and forth. I have probably been to Dubai six times in the last year. It is a true relationship that has formed over time. I think the special thing about this partnership is that core values are the same. The partnership is a very natural one; I personally like to do business with people, not companies so the relationship comes first, and that is the number one thing with the Seddiqi family that trumps everything else.
Will the Dubai office of WatchBox serve only Dubai or is it for the whole of Middle East?
It will be for the whole of the Middle East. We already have opened a boutique here, at the DIFC, and this is going to be the first of many. The joint venture covers the GCC and the Levant so we are looking at the whole of Middle East. This boutique here in Dubai is the first step, and we have around 200 watches on offer here in the boutique now. Also, if we buy a watch here, it would get serviced here, using the Seddiqi service centre.
How do you source your watches?
We can take your watch in trade against a pre-owned one; we can take your watch in trade against a new one; we can just buy your watch outright; or we can sell you a watch. We give our clients all options. It is really what the customer wants. They want options, and WatchBox offers them that.
How did you get such an expert team, when the field of haute horlogerie is so vast and some brands sometimes have a lot of references that come and go?
It is not easy; I believe that we have one of the strongest teams and expertise. We need to just look at their knowledge base, and it is unusual to have such a team. We personally believe and invest very much in education. We have the whole WatchBox studios and we want to educate our clients and consumers but we also want to focus very much on educating our traders. We give them the resources, the training, and set them up for success.
