Representing over 600 leading global brands, Al Tayer Group is undoubtedly a diversified distributor. With its headquarters in Dubai, Al Tayer has firmly secured its position as a luxury leader in the Middle East. Executive speaks with CEO Shireen El Khatib on the insides of the lavish watch industry.
E What is your definition of ‘luxury’? In your opinion, which are the 5 top selling luxury watch brands in the Middle East?
I would like to combine my answers to these two questions. To me, luxury is about craftsmanship of unmatched quality and the utmost attention to detail, and it’s about unique pieces and designs, with a very limited production. The top selling brands are therefore difficult to qualify as it’s not determined by numbers.
For example, BRM (Bernard Richard Manufacturing) watches are all designed to a unique motor racing concept — each model reflecting a different element of a sports car — and once the limited production of models are sold, they will never be reproduced. Another brand that reflects the true definition of luxury is Backes & Strauss, who specialize in diamond watches — every single diamond is hand-cut and hand-set especially to fit the shape of the watch, thereby making each piece a one-of-a-kind.
E Let’s talk about the most luxurious timepiece you are selling at present. How much is it, what is it comprised of, etc.? What is the most popular luxury watch you have sold?
With a portfolio such as ours, it’s difficult to single out what can be considered ‘the most luxurious timepiece’. However to quote one example among several, we have recently sold one piece by Swiss watchmaker Vulcain, who are presently celebrating their 150th anniversary. They only produced twelve pieces of their award-winning Imperial Gong Tourbillon, and we had number one. A very high profile watch collector travelled to Dubai especially from Europe just to buy this piece.
E From your perspective, what kinds of customers purchase luxury items in the region? Are they a mixture of upper-middle class and high-class or strictly high-class patrons?
The luxury consumer ranges from the avid collector, who may buy several items per year, be it a complicated watch, the new designer ‘It bag’ or even a sports car — to the less frequent customer who is attracted by a certain piece, their heart becomes set on it and they will endeavor to own it.
E Do you have payment plans for those purchasing a luxury item or are customers expected to pay in one shot?
No, in fact payment has never been a factor for the luxury consumer. Allow me to borrow the words of Guccio Gucci, founder of the Gucci group who famously said, “Quality is remembered long after price is forgotten”.
E What are the latest trends in luxury watches in the MENA region? Recently, people have been sporting large, luxurious timepieces. What will be ‘in’ next year?
Currently the trends are for large-sized chronographs and ladies wearing men’s watches and with more complications (e.g. historically they have always been more comfortable with the quartz movement, but now there are more and more ladies choosing automatic watches). Men are wearing more discreet, finer watches than in the past — for example, black gold is very popular right now, with some gems set while remaining understated.
Next year, whilst the large sized models will no doubt remain popular, we may see some people opting for smaller sizes in order to buck the trend. However unique shapes and designs will remain at the forefront — round, square, or anything in between — like the new Odyssey by Clerc, whose original shape and futuristic design is inspired by space exploration.
E What was your total profit last year? Are you expecting an increase this year? Why? How much are the global and Middle East luxury watch markets worth?
It’s Al Tayer Group policy not to reveal sales and financial figures.
E VAT is in the process of implementation in the Gulf, and is already present in the Levant. Also, on top of the current VAT taxes, the GCC reportedly plans on imposing a 100% tax on all luxury goods by 2012. How do taxes on luxury items affect your sales?
The designation of what constitutes ‘luxury goods’ has not yet been defined for the purposes of taxation. However, we don’t really anticipate sales being affected too much as the luxury market is not driven by price. The luxury consumer is motivated by fine quality, limited availability and unique designs; and this will continue to be the case.
E In the last decade, what would you say the demand focus has been? How have manufacturers responded to this demand? How often do consumers buy luxury watches?
Brands have been moving towards developing timepieces with higher complications, higher value, and a longer lifespan as consumers have been converted into connoisseurs; becoming more educated and passionate about watches, and are constantly adding to their collections. Watch enthusiasts will purchase several pieces each year, whereas in the past a watch was a purchase that was made traditionally only on special occasions, such as graduation, marriage, and other milestones.
E How important is the Middle East luxury watch market? How is this reflected in the consumer demand?
It’s a very important part of the Middle East luxury industry. Demand is such that the region’s watch enthusiasts often attend the annual BaselWorld jewellery and watch trade fair, and have thus become important watch collectors. Also, thanks to the proliferation of features published in the media, the market has become a great deal more aware and educated about the different brands and innovations, and what makes each piece unique.
E Of all luxury timepieces, which is your personal favorite? Why?
Over the years I have acquired many favorites, among the brands that we carry. Currently I am wearing the Guy Ellia Time Square Convex. It is unbranded, it sits perfectly on my wrist due to its unique curved shape, it is big and bold and yet understated and refined — it epitomizes luxury to me.
