Okay here you go people. This is the article from the Daily Telegraph ( UK ) in full. If there are any typos then that is just too bad.

Enjoy

Daily Telegraph wrote:Christopher Ward is proud of his watches. With swiss made mechanisms and quartz movements they are as good on the inside as many selling at 10 times the price.

He says, "With classic English faces and diamond-encrusted cases,his range of 200 watches is a fair match to the likes of Gucci, Tag, and Omega on the outside too," he reckons. But Christopher Ward watches are missing one vital element: a brand name.

Despite sellingwatches that Ward says are as good as, if not better than, the well known names, he needs to convince the watch buying public of that if he is to see his £1m business reach its £15m income target in a market estimated to be worth £850m.

" Having a good quality watch is seen as something of a status symbol " said Ward. Thats his problem: flashing a watch with the Longines logo or Breitling badge is an instant way of broadcasting affluence, he admits. Despite the pedigree of its components its here that a Ward watch wanes a little.

It may use the same Swiss made timing, Far Eastern produced cases and Italian leather straps as its better known rivals but without the same big marketing budgets, celebrity endorsements and high street shop window space, Christopher Ward has to rely on other ways to reach his market..

Its the lack of a costly ad campaign and high profile ambassadors that allow him to sell his watches so much cheaper he says. Ward only sells his watches online and if any famous fashion icon wants to buy a watch they will have to logon like everyone else he says.

"Im not paying anyone to wear my watches, I want people to pay me. Were not into that ethos that surrounds perfume and Prada bags. One of the reasons we are able to offer watches for a fraction of the price is that we dont have to pay Tiger Woods or Nicole Kidman to wear one".

The Ward sales pitch is simple: why pay for a £1620 for a Longines La Grand Classique when you can buy an equivelent Christopher Ward Divine Ronde diamond watch for £275?

" Ours is better, but we can only prove that once they get the product in their hand or on their wrist. " said Ward, who trained as a watchmaker after a career as a buyer with the likes of Littlewoods and Olympus. Lasy year Ward sold 5000 watches at an average price of £200. His most expensive is £450. " I dont think of our watches as cheap, £200 is still a big slice out of a pay cheque for most people ".

He plans to expand the range to include watches aimed at the highly brand-conscious younger market. " We are planning a £1000 watch. The equivelent of a LOngines would cost £10000. The aim this year is to double sales and turn a profit for the first time. The target is a 10% pre tax margin ".

The bulk of this years business( 85% ) was generated by one mail shot. It has prompted Ward to contemplate progressing his online business into a mail order firm with a coffee table type brochure.

" We mailed 300000 catalogues and got a 1.4% conversion rate. If we mailed out 3 million we would sell 42000 watches on the back of it and thats just from the UK. There is no reason why we cant do the same in the US, Canada or France. We are only scratching at the surface at the moment ".

He targets the same aspiring 35 to 50 year olds as the big name brands.

" But we are something of an anti brand. As you get older you become a little more discerning " he said. " Luckily there are a lot of smart buyers out there who realise one reason you pay £3000 for a Breitling is to cover the cost of John Travolta to endorse it ".

Christopher Ward London was created 3 years ago by Ward and financed by Mike France and Peter Ellis. The Berkshire based business is owned by all 3.

" We realised that there was a gap in the market. We wanted to produce the cheapest, most expensive watches in the world. " Ward said.

The firm outsources most activities including marketing, customer care and design, alongside the watch assembly which is currently done in the Far East but which will soon move to Switzerland.

"We dont use agents or distributors who add a 40% margin and we dont use retailers who demand evidence of a marketing campaign to guarantee window space. With the exception of Google ads the business model precludes advertising. We rely on referrals- 26% of our customers came to us by word of mouth".

So unless you are told otherwise, those people who are looking for a quality timepiece will be left wondering as they contemplate a Cartier as to just what a Christopher Ward watch is all about.

" When you see a Christopher Ward watch you will either think it is in the £50000 bracket and that is why you have never heard of it or that it is a piece of tat " he said. " When you are an unknown brand a lower price gives the perception of cheap. The problem we have is convincing people that this is not the case. "

© 2008 http://www.telegraph.co.uk

*** Article originally written by Philip Smith published in the UK Daily Telegraph on the 22nd Of April 2008.

The End

Many, many thanks T2!

Nice read that eh? So, 'Swiss Made' to replace 'Swiss Movt' on the face. One less thing for the doubters to have a pop at too.

So, who's lining up for that £1000 number then?

ch33ky wrote: So, 'Swiss Made' to replace 'Swiss Movt' on the face. One less thing for the doubters to have a pop at too.

It was a pleasure and thanks to Jill for pointing it out.

I like the fact production is to move to Switzerland but not for the reason some of you might find obvious. If Chris really is in this for the long haul then that means that those of us who bought early models will have something even more unusual and collectable in the coming years. In time they may be regarded as inferior models from a production point of view but the simple fact that they will be no longer made will kind of make them a bit special.

It is interesting how things change. I bought my father a C4 for xmas and I felt that it was just somehow not as good as my earlier version. Just small things like his serial number was etched on rather than engraved. A small detail I know but I am kind of glad I at least got some unique early production models especially as 2 of them are pre production which has to add to the novelty factor as the years march on. If I ever have any I just hope my Grandkids realise what legacy their Grandpa left them.

Daz wrote:So long as it's made up with a quality movement and complications and not just a wrist full of sparklers.

I agree Daz. Even for the ladies a $45 quartz movement inside of the sucker just wont do.

Back to the article.

Now that I have had time to digest it well it is certainly very interesting. Chris and his partners must have their work cut out. 5000 watches last year may sound a lot but is it ??? Also it seems they have yet to turn a profit.

Now okay that is fair enough. Not many start up companies expect to make one initially but you have to make one someday. Now its not my business so I guess it is interference to say so but the article makes many valid points as to flaws with the business model. By that I mean being 100% reliant on the internet and word of mouth only. While this will certainly reduce initial start up costs of any business can you actually sustain this long term. Although the foundation of CWL are noble ones ie minimising costs to pass on the savings to us the customers I am just not convinced that it is workable in the long term. Of course articles like the one seen today can only boost the profile of the company and draw in even more potential customers but is it really enough ???

If it was me ( and it is not ) and my company reached this stage I would for one now be considering rolling out my watches to high street shop jewellers but not the multi chains to keep my principles intact. There are still quality family businesses out there who do not sell big brands but would offer the service and advice that the modest purchaser would enjoy. Basically they would sell the watches for CWL. Also they would more than likely appreciate the additional prospect of extra revenue because many of them will be struggling to compete with the big boys. They probably wouldnt stand a chance in getting a Big Brand franchise despite offering a good service. I would imagine for the reasons Chris talks about above that many of these jewellers would balk at the investment required to become an agent for the the likes of Omega or Rolex.

Im not suggesting Chris puts his watches on stalls in a local Sunday market but I think ( and I am only guessing ) he is a bit blinkered on sticking to his original ethos noble though it is. I would have thought the natural progression of any new company would be to at least have an open mind to opening up other avenues for business.

Maybe he should give this a little thought. He could start small to test the water. Find a decent family run jeweller or two within 150 miles of his workshop who is not an Omega or Tag dealer who will be glad of any potential extra income but still give the product the respect it deserves. If it works then you slowly but surely roll your product out nationwide but keep to the ethos and target only select jewellers to sell the product. Who knows in time you could then roll this out worldwide. This would be another string to their bow for them to get excited about the product themselves to then pass on the passion to us. That way he wont need John Travolta or Tiger Woods but the punters in the street actually get a proper look at the watches in a proper setting.

Am I wrong ??? Well I dont own a watch company so maybe I am. Then again maybe I am not.

ch33ky wrote:Many, many thanks T2!

Nice read that eh? So, 'Swiss Made' to replace 'Swiss Movt' on the face. One less thing for the doubters to have a pop at too.

So, who's lining up for that £1000 number then?

Thanks also T. Swiss made, gotta love it. Can only help Chris to establish value and cache'.
$2000 watch. Could this be the Flagship model?

ch33ky wrote:So, who's lining up for that £1000 number then?

I need to know what it is first, but a £1000 CW doesn't scare me.

Terminator 2 wrote:Back to the article.

Now that I have had time to digest it well it is certainly very interesting. Chris and his partners must have their work cut out. 5000 watches last year may sound a lot but is it ??? Also it seems they have yet to turn a profit.

Now okay that is fair enough. Not many start up companies expect to make one initially but you have to make one someday. Now its not my business so I guess it is interference to say so but the article makes many valid points as to flaws with the business model. By that I mean being 100% reliant on the internet and word of mouth only. While this will certainly reduce initial start up costs of any business can you actually sustain this long term. Although the foundation of CWL are noble ones ie minimising costs to pass on the savings to us the customers I am just not convinced that it is workable in the long term. Of course articles like the one seen today can only boost the profile of the company and draw in even more potential customers but is it really enough ???

If it was me ( and it is not ) and my company reached this stage I would for one now be considering rolling out my watches to high street shop jewellers but not the multi chains to keep my principles intact. There are still quality family businesses out there who do not sell big brands but would offer the service and advice that the modest purchaser would enjoy. Basically they would sell the watches for CWL. Also they would more than likely appreciate the additional prospect of extra revenue because many of them will be struggling to compete with the big boys. They probably wouldnt stand a chance in getting a Big Brand franchise despite offering a good service. I would imagine for the reasons Chris talks about above that many of these jewellers would balk at the investment required to become an agent for the the likes of Omega or Rolex.

Im not suggesting Chris puts his watches on stalls in a local Sunday market but I think ( and I am only guessing ) he is a bit blinkered on sticking to his original ethos noble though it is. I would have thought the natural progression of any new company would be to at least have an open mind to opening up other avenues for business.

Maybe he should give this a little thought. He could start small to test the water. Find a decent family run jeweller or two within 150 miles of his workshop who is not an Omega or Tag dealer who will be glad of any potential extra income but still give the product the respect it deserves. If it works then you slowly but surely roll your product out nationwide but keep to the ethos and target only select jewellers to sell the product. Who knows in time you could then roll this out worldwide. This would be another string to their bow for them to get excited about the product themselves to then pass on the passion to us. That way he wont need John Travolta or Tiger Woods but the punters in the street actually get a proper look at the watches in a proper setting.

Am I wrong ??? Well I dont own a watch company so maybe I am. Then again maybe I am not.

I know where you are headed T, but don't you think it is still early for CWL to stray to far from his model and probably his 5 year plan. I fully understand that one must be flexible and that markets are continually changing, yet the internet it still in its infancy stages. I see it a little differently.

I think if it was me I would put my focus into PR and marketing. Exposure is what I believe is needed. Without advertising in them, I think CWL needs to get into the major trades and consumer related magazine and on various lists of manufactures that are available. One will probably preclude the other.

Eventually once a profit has been turned, and most of the bugs have been worked out I would be more inclined to go your route. Even at that I would certainly be very cautious as based on what we know now, CWL is not looking to fall into the same trap as many other brands.

I am not saying that what you say is flawed. I am only speculating on CWL perspective and where I would head if it were me. We may have to agree to disagree and find the reality is somewhere in the middle.

I dont know Kip. Im just going by the revealing info in the article. Its just a case of getting the brain in gear and breaking it all down.

If it is correct then CWL are looking for a 15 fold increase on the current turnover. I can only presume that is the figures Chris and his partners reckon will make the venture worthwhile. That is 75000 watches per annum if the figures are correct. I just cant see it based on the current business model ie a 15 fold increase in business. While they may be steadily growing year in year out that is a heck of an increase by anyones standards and if they achieve it in a short space of time then that would be an incredible achievement. Is there any one concern/company punting out 75000 watches via the net ??? I doubt it. An individual manufacturer may well sell more than that but he will have multiple retail points doing it for him but I would be surprised if there is a one stop shop doing numbers like that.

Okay Chris can print his 3 million catalogues but where do they go ??? In a Sunday Paper along with the rest of the dross I get every week with my newspaper which ends up in the bin. 3 million of those would cost a fortune. Money better spent if you ask me with a decent adverts in a GQ , FHM or a Maxim magazine.

I dont know but I think at some stage Chris will have to accept that some form of advertising is inevitable. He might not employ Brad Pitt or George Clooney as ambassadors but I reckon it is inevitable if he wants a 15 fold increase in business.

Very interesting article to read, must get a copy to keep so I can look back on it in another 2-3 years while hopefully wearing my flagship £1k mens' CW watch, although my suspicion is that the £1k watch will be a ladies one.

As for the CWL business model, I am extremely confident that Chris and his financial backers have developed a sound approach and are doing their level best to see it through. Sadly one of the pitfalls for many new businesses is they do not stick to their business model and suffer badly for it. You have to crawl before you walk and then walk before you run.

It will be in the next year or two that they will start to look forward and beyond and develop the second phase of their growth, the business has to be established, problems ironed out and confident they have the capacity to sustain future growth. These things don't happen overnight. You can see these thought processes in the move to swiss made, new models and more upmarket timepieces. And as sales grow, buying power increases and net costs reduce.

Chris states in the article he is looking for a 15 fold increase in turnover from the current £1m (5000 watches @ £200 avg. sale), this doesn't necessarily mean he has to sell 75000 watches to achieve this. A good portion of CWL watches currently sell for 10-25% less than the quoted £200. If the worldwide watch market is worth £850m then CWL want just 1.8% of this to deem his business a success. The internet is a powerful tool and in the untapped markets of the Sub-continent, Far East and South America CWL may just be able to provide the high quality swiss made watch at a tenth of the price for those that have no way of ever buying one of the big brands. That alone is an enticing prospect.

As for advertising or lack of, look at the figures, 26% of business was generated by word of mouth (1300 watches), repeat that year on year and your looking at fairly decent growth. A mailshot in the UK produces 1.4% conversion rate (which is v. good), do the same but worldwide and you are starting to talk big numbers for fairly little real outlay, hence the idea of mailorder on coffee tables.

You don't set up a business like this to make money overnight, to turn a profit within the first 5 years would constitute good management, but its how you proceed in the following 5-10 years that determines how successful you are. I believe that Chris and his partners are very much aware of the challenges facing them, but patience is a virtue (e.g. crawl before you walk, walk before you run).

This is my opinion only and should not to be taken by anyone else as objecting to their opinion/s.

Personally I'd look at the example of 'Toy Watch' whose products are crap but have been featured all over the place and sell through at a couple of places like Libertys and Oi Polloi.

If you haven't heard of Oi Polloi then shame on you! It's the finest menswear emporium in the north of England and a PERFECT fit for CWL. Very decent clothing for the discerning gent who appreciates quality. I guarantee that CWL would sell a load through them if that's the way Chris wanted to go.

'Toy Watch' have been very clever in the amount of glossy fashion shoots etc that their stuff has appeared in and still have a small route to market. Whilst they're aiming to be the next Swatch... they are in the same price bracket as CWL! Given a choice between the two, the Liverpudlian is a clear winner.

The three chaps behind CWL know what they are doing and that it's going to take time. 1.8% of any market is a huge amount for a young start up. Better to have slow organic growth in an uncertain economy cycle than to risk over exposing the business.

And we'll be behind them every step of the way!

Can't believe I never noticed it before: I've just checked some of the pdfs in the 'on the drawing board' section and some, including the C2 Lido, C7 Rapide and C8 Pilot are emblazoned with 'Swiss Made'.

Don't know wether it means anything or not.

Terminator 2 wrote:Okay Chris can print his 3 million catalogues but where do they go ??? In a Sunday Paper along with the rest of the dross I get every week with my newspaper which ends up in the bin. 3 million of those would cost a fortune. Money better spent if you ask me with a decent adverts in a GQ , FHM or a Maxim magazine.
I dont know but I think at some stage Chris will have to accept that some form of advertising is inevitable. He might not employ Brad Pitt or George Clooney as ambassadors but I reckon it is inevitable if he wants a 15 fold increase in business.

This I agree with. I sent him an email once suggesting this sort of approach, probably a bit too early for him, but it has to come. If he goes down the route of a catalogue in with the rest of the junk in the sunday supplements it will project the wrong image for his product and probably wouldn't go down well with his already established customer base. It would be a real p*sser to see them in some cheap tatty catalogue wouldn't it ? He hasn't really elaborated on his catalogue idea in the telgraph piece, but i hope it's not something like you describe T2. It would be the wrong way to go. A lot to be optimistic about in the article though, so we just have to trust him...