German watchmaker eyes growth potential in China

Upbeat about the Chinese market, German watchmaking company Nomos Glashutte has a long-term investment plan for the country, said its chief executive.

On June 26, the company opened a lounge in Shanghai, its first outlet in China and Nomos Glashutte's second dedicated lounge outside Germany, after New York.

Uwe Ahrendt, CEO of Nomos Glashutte, said: "Just like in New York, we have our own subsidiary in Shanghai. The Nomos lounge in Soho, New York, has developed well. It has given Nomos Glashutte more visibility and, just as importantly, a place where people can experience the brand directly. We now want to build on that experience in Shanghai."

"The timing is right because several things are coming together. China is an important market for us, and Shanghai is the right city: international, design-minded and open to independent brands with a clear identity," he said.

According to the company, it took Nomos a long time to select the right location for the lounge. Instead of bustling commercial streets, the lounge is located in a historical building by Suzhou Creek. "The location connects history and the present, which makes it a fitting place for us," said Phil Wu, general manager of Nomos Shanghai.

Ahrendt explained the motivation behind the lounge, saying: "A store in a luxury mall can present watches very well. The lounge can do something more: it can tell the wider story of where we come from, how we design, how we make watches and how Nomos understands luxury in its own way. That link between tradition and the present feels especially credible in this setting."

"We want the lounge to have a strong effect on the brand — not only in Shanghai, but across the Chinese market. Through events, private appointments and press formats, we want to reach people who are genuinely interested in design, watchmaking and our Glashutte heritage."

According to the latest report issued by US market research company IDC, in the first quarter, total global shipments of wrist-worn devices reached 47.05 million units, a slight increase of 2.2 percent year-on-year. Among them, China shipped 18.14 million wrist-worn devices, a year-on-year increase of 3.5 percent, becoming the world's core growth center.

Chen Shenyu, a manager of Shanghai-based China Insights Consultancy, said that Nomos establishing its first lounge in China reflects the focus of its strategy in China. "The decisions undertaken at this stage are more focused on market penetration and consumer education. Through the lounge, the brand is actually lowering its cognitive barriers, reaching out to more consumers in China."

Ahrendt said: "In China, we tend to speak to a younger audience than in Europe. Many people are interested in distinctive brands, in design and craftsmanship, and in products with a clear story. With the new lounge, we are showing more presence in an important market. It connects Glashutte with the world and underscores the international reach of Nomos today."