Is there a difference in working with a mom-and-pop wholesaler versus a larger, more institutional entity like the Watches of Switzerland group. How does this affect the experience they can provide, the training of the sales staff, and ensuring it aligns with the brand's desired experience?

For instance, there's a historical smaller retailer in Lausanne, a relatively large city in Switzerland, known for selling the most complicated watches. They work with super niche and high-end independents due to their in-depth knowledge and passion. It's family-owned, with one brother running it and the other as the boutique director of the Patek Philippe flagship in Geneva. Such smaller dealers excel in the quality and depth of relationships with local clients.

Is there a difference in working with a mom-and-pop wholesaler versus a larger, more institutional entity like the Watches of Switzerland group. How does this affect the experience they can provide, the training of the sales staff, and ensuring it aligns with the brand's desired experience?

In contrast, at Watches of Switzerland, Bucherer, or similar authorized dealers, staff turnover is high, with young staff you might not see again in a few months. Mom-and-pop shops, by definition, remain stable, allowing them to build more authentic relationships. Smaller dealers might be appealing to small independents due to their ability to understand and communicate the brand's essence to their customers.

When working with a wholesaler, how do you decide which products to send through the wholesale channel versus going direct, and how much visibility do you give your partners?

I'll give you a concrete example. Let's take the Daytona, for instance. If the Daytona is a very strong product, as it is, you'd rather keep it for yourself as the brand, like Rolex, even though they don't have their own boutiques. For the sake of argument, you'd rather keep it than leave it to a partner because those watches sell themselves, and you don't need a partner to make the sale. The work is already done, so you're essentially giving away free margin for nothing. Plus, there are behaviors you'd like to avoid. If you have super hot pieces, you might be tempted to keep them for yourself.