zOwie Omega Discussion Forum

Manufacture/Distribution/Retail Sales

When manufacturers try to replace the Distribution/Sales with their own people, the assumption is that they can do it better than the groups they are replacing. Omega we all know has a reputation for their service already. Now we will see how well they can manage the daily operation of a retail chain.With Omega's current position in the watch world, I doubt that a high margin/high volume is a realistic goal.In order to achieve that they will have to spend as mutch as Rolex has on brand recognition. That will take years here in the states. In the meantime the manufacturing volume will still be there, and they will have to send the watch's somewhere. Discounts will still be available at other locations that have a high volume/low profit marketing philosphy. This marketing plan usually fails in a couple of years. The problem is that the retail locations that have built years of customer loyalty will be gone, or no longer willing to take on Omega as a brand.