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Final Outcome for Gelber & Mundy

Posted By: John Rochowicz (161.176.121.70.cfl.res.rr.com)

Date: 9/25/06 18:51:01 GMT

I wish I could post some positive news, but I just found out today that Omega refused to reinstate Gelber & Mundy's AD status. As I suspected and feared, Mr. Swift did indeed build a case against them to give to the powers that be in Switzerland. Gelber & Mundy's sales rep called them this morning to tell them that it's a "done deal" and that they will not be reinstated.

John, Although I never did any business with Gelber & Mundy, I am genuinely saddened for them about the entire situation, disappointed in Omega and especially in Mr. Swift's and his staff's (in)action(s), although I'm not particularly surprised at the final result.

I only found out AFTER they lost their AD status that Gelber & Mundy are actually located inside a large Jewelry Exchange in New York City. In other words, they do not have a separate, detached store, but rather, they have the largest store floorspace inside the jewelry exchange. The pictures they sent me of the store look like any other jewelry store you'd go into, but it doesn't have that "luxury, upscale, what type of latte would you like with your Seamaster?" look of a Tourneau-type of store. This was one of the reasons they lost their status. The other, as I mentioned in previous posts, was the fact that they don't carry any other exclusive brands. TAG had always been their #2 selling watch (behind Omega), but TAG isn't considered upscale enough by the folks at Omega.

I'll wager that TAG-Heuer will be their #1 selling watch now. Omega will be exceedingly hard pressed to match the sales that Gelber & Mundy generated and Omega seekers will have fewer options when it comes to finding an Omega at a fair price.

To be blunt, this is really the "straw that broke the camel's back" for me. I have really lost faith in Omega as a brand. What I now see is a company that keeps producing more expensive models which offer less "bang for the buck", a company that is poorly managed by idiots who don't have any sense of loyalty to a 25 year partner, and a company that is basing its "new, upscale image" on Piguet-based chronograph movements that are the LEAST reliable movements in the Omega catalog. For the first time since I became a watch enthusiast, I have absolutely no desire to buy another Omega watch.

I guess I'm fortunate that my interest is much more towards vintage watches than new watches in that there are few new Omega's that really appeal to me. Certainly there is a thrill with being the first person to deploy a particular watch on one's own wrist, but I've always had a stronger attraction to the watch that's done a bit of traveling on it's own and has developed some character.

I expect for me that after the 50th Anniversary celebration of the Speedmaster in 2007, the 40th Anniversary of the Apollo 11 landing in 2009 and the Vancouver Olympics in 2010 I doubt Omega will introduce anything on their current path that will interest much less excite me if they continue on their current course.

As a friend just suggested, perhaps I will start looking at vintage Omegas, which reflect a time when Omega as a company had its head on straight. I will keep my Bond SMP only because I love the watch, but I have now sold every other Omega watch I owned. Sadly, the passion is completely gone for me.

I suspect you'll enjoy vintage should you choose to pursue that path. Of course, it's in many ways more difficult (in finding good examples to purchase) and more costly than it was a couple of years ago, but fortunately there is more information available on-line now than in the past.

Again, thank you to everyone who took the time to sign the petition and to show your support for Gelber & Mundy. The owners wanted me to convey their sincere thanks to everyone.

It was the least we could do. It's a shame that Omega doesn't listen to it's customers much these days. Surely a policy that will hurt them dearly in the future.

I'm sorry to read this John.

Posted By: SteveW62 (pD9E9BF65.dip0.t-ipconnect.de)

Date: 9/25/06 21:30:13 GMT

In Response To: Final Outcome for Gelber & Mundy (John Rochowicz)

Hi John,

I'm very sorry to read this. I really was hoping that someone at Omega had the courage & back-bone to stand up & correct this disgusting decision.

I'm sure that Mr. Swift dug his heels in very effectively, regardless of how much the temperature had been turned up. [If it was even turned up by Bienne at all]

I fail to see how a company , which is trying to improve its image & present itself as a "quality" company, can treat it's customer of 25 years in this way.

Simply put it's a lousy way to do business and I'm certain it will give Omega's other business partners reason for pause. And Omega's competitors a wedge to make advances with.

I fully understand that Omega want to go upmarket & that maybe G&M don't meet Omega's vision of their future stores, but to just not deliver an order then let a customer of 25 years know the reason for this decision in the way that Omega did .......

It's shameful and I'd certainly hope that people responsible for such (in)action are swiftly and solidly repremanded. But having watched Omega the past couple of years, I have my doubts that anything harsher than a ,,that's not a good way to handle it,, was dispensed.

It's almost beyond words. It shows a complete lack of respect for people. A complete lack of feeling for customers ( & their families ).

Not customers, Steve... Business partners! Everyone else doing business with Omega should be watching Omega and this sorry tale closely. For they may well be next! And sadly, the writing is on the wall for us customers of Omega too.

I'm in complete agreement with the various posts that suggest that "Omega isn't what it used to be". Whenever I read a post from someone about their fathers ( or grandfathers watch ), it seems to ooze a feeling of respect, awe & compassion.

Omega's actions of the past several years, all too often, are that of a company that not only does not understand what it is, it doesn't understand what got it to where and what it is.

I wonder what the next generations will write about Omegas....

I had a thought about that this morning that I'll share at the end of this post..

"This is the watch that my father paid a absolute fortune for, sent back 3 times & then gave up on. The scratches didn't come from him."

Oooo... That's good Steve, probably as yood or better than what I am going to say!

I'm disappointed.

Me too! Big time. However, I'm not surprised in the least, for this is what Omega's become.

Steve

my personal opinion

Posted By: georges zaslsvky (reverse.completel.net)

Date:
9/26/06 10:31:35 GMT

In Response To: Final Outcome for Gelber & Mundy (John Rochowicz)

Hi

I think that Omega is not what it used to be since Hayek baught the firm and instated it in the Swatch Group. Since Hayek, only mishappenings happened:

- poor customer service

- poor quality control

I don't have first hand experience with Omega Pre-Hayek... So I can't easily compare pre-Swatch Omega customer service and initial quality control with the current Omega.

What I do know is that Omega's customer service is not on par with what it was 5-7 years ago, the quality control on new products is worse, and we have far more problem reports than back then. Both of these "data points" are well within the Hayek era.

- marketing hyped movements with poor reliability not based on prestigious ebauches or movements

- horrible price rise for a product that doesn't match the vintage quality products

While I deplore price increases, I'm not certain that I can critize Omega much for their increasing MSRP's. Certainly costs have gone up, especially fuel, and the exchange rate between the Swiss Franc and the US Dollar (for example) isn't what it was 5-7 years ago. Some price increases are justified.

On the other hand, I certainly would question Omega's actions in killing their entry level products and marching upscale in a time of economic uncertainty. In the USA, gas prices reached points that were double what they were 2 years ago, and nearly triple what gas was not very long after 9/11. When people are paying $70 to fill up their car's when it used to cost $35 a couple of years back that money is not being spent on watches.

- despicable policy of Omega towards some of its best and more successful ads

- sacrifice and lack of care of existing customers

As exemplified by the relentless pursuit of new customers and the ongoing and increasing neglect of existing ones.

- policy of selling Omegas in Tourneau like stores

... and I have no problem with Omega's being sold at Tourneau... That's fine. What I do have a problem with is Omega having a financial stake in Tourneau, it creates a conflict of interest that is a very suspect method of conducting business.

Some people will say that I criticize Omega too much but marketing hype is not quality it is just marketing. When you ruin the reputation of a brand you ruin it for good. And no Omega isn't what it used be an it never wil lbe what it used to be with Hayek and people who are deeply stuck into the Marketing Hype rainbow and thinking that sacrifying their loyal customers and ads is the solution.

At this point I'd be happy if Omega was handling things as well as they were 5-7 years back. I don't think it's going to happen with the emphasis being placed where it has been as of late.

just my 2cents and sorry of my rant

regards

georges

Your thoughts were concise and to the point G, nothing to apologize for (at least in this post!)...

Re: my personal opinion

Posted By: Felix (terraverda1.cyberlink.ch)

Date:
9/26/06 10:45:31 GMT

In Response To: my personal opinion (georges zaslsvky)

Dear Georges

Maybe it's because I am living in Switzerland therefore am closer to Bienne and Geneva that I don't see any problems with Omega customer service and quality control.

It must be good to live so close to the mothership. The problems people have had with repairs, and reports of substandard watches on dealers shelves have been widespread both geographically and in number.

Neither do I see any problems with their movements.

Count yourself fortunate.

And certainly the current Omega movements do match the vintage quality (I talked to several watchmakers to get this confirmed).

Well, realize that Georges rarely has good things to say about ETA, Valjoux, Dubois Depraz or that ilk. However, Omega's in-house movements used to hold their own (and more) against all comers back in the day, and their F. Piguet movements have proven to be leagues below the quality of what is resquite for Omega...

I am sorry, if your experience is somewhat different.

Felix

Unfortunately, many many peoples experience is far different from what you have described as bing what you see.

and:

Re: I'm sorry to read this John.

Posted By: Felix

Date:
9/26/06 07:43 GMT

In Response To: Re: I'm sorry to read this John. (Sean Quinn)

Dear John, Steve...

I understand your feelings and that the negative outcome for your personal AD is a highly emotional issue. However I also understand Omega's way to become a more exclusive brand.

I along with the vast majority are at a lost as how Omega is going to become a “more exclusive brand” via their trend of the past 5 years of: replacing proven reliable models/movements with new initially untried, flawed and unreliable movements, apathetic quality control at the end of the production line that allows new watches with dust specs, hair, fingerprints on hands and dials, into dealers hands for sale, a service channel that is incompetent, neglegent and at times nigh criminal, a communications/pr department that is at best confused.

To move up you have to improve, not just say you want to be thought of differently.

And they just behave in a very consequent way.

and the consequences of the manner which Omega is behaving will harm them greviously in the future.

Why doesn't Gelber & Mundy upgrade its whole store regarding offered watch brands?

Honestly, F... What do you think Omega's interest would be in having Gelber & Mundy become an authorized dealer if they added IWC, JLC, Rolex and Zenith? How much display space would Omega lose if G&M added those brands?

Or should they invest capital funds and build on to their facilities in hopes of keeping their partner of 25+ years?

Does he have to invest in expensive interior decoration? Or would he risk loosing too much money by surrendering other lower-positioned brands? I am sure, there would be a way for him to keep the Omega-brand. But this doesn't work without compromises from his side.

To hear John tell it, G&M has gone the extra mile to try to accomodate Mr. Swift and Omega. While I was not a party to the conversation it seems that Mr. Swift position was stratified (set in stone) and no amount of adjustments by G&M would have changed anything.

That Omega has recently invested a sizeable financial stake in one of G&M's competitors in the same city also likely had a great deal to do with this outcome.

In light of the proceeding globalization in the field of luxury brands (Chinese and other developing markets),

However, I don't feel the Chinese or Indian's, etc. are stupid. The way to become a more exclusive brand is to improve your product:
Improve your product, improve quality control, fix the deficiencies that are existant within your organization, improve the methods of communication within the firm and with the public.

Omega just intend to get rid of the mass-product-image by reducing the numers of their outlets.

Omega isn't going to separate itself from “the mass-product-image” by continuing to offer Valjoux, ETA and Dubois-Depraz powered products. Nor are they going to be sucessful in their attempt to “become a more exclusive brand” by ignoring the widely known problems existant within their organization.

This is a painful process but without this consequent step, Omeaga will dilute with other mid- and low-level brands like TAG Heuer, Ebel, Sinn and other brands.

Quite frankly many Omega owners, collectors and watchers would be doing handstands if Omega's quality as of late was the equal of those brands you name...

The bottom line here, and the one that Omega seemingly is missing ever more often these days is that the only way to ,,move your brand up,, in the tier of competeing brands is to improve your product and improve the manner in which you do business. Omega is failing badly at both.

Frankly, I'm really not sure where Omega is going to replace the volume of sales that G&M generated for them with some "Boutique" store and lower quality product.

This might be a way too, but they didn't choose this way to go.

I really don't understand the seeming biological urge of Omega to try to re-image itself into a ,,sportive Blancpain or Bruguet,,. I'm simply not seeing this gulf in the Swatch brands. This is not their customer base nor their heritage.

Omega is within a real transition period.

Omega has been transitioning for the better part of five years. Unfortunately thus far the trend has been steeply down.

Were I in the position of Mr. Swift and I or my people had handled this entire affair with a business partner of over a quarter of a century, as he has, I would have fully expected to be asked for a letter of resignation and/or be circling want ad's the evening after word had circulated back to the mothership.

The message on the wall is that Omega.ch either approves of these types of tactics or are at least OK with it enough that nothing has changed) speaks volumes about what the rest of the dealer channel and the little guys, Omega's customers, will likely experience in future. I wouldn't be expecting any quarter from Omega.

The way things are going, 10, 15, 20 years from now, people in the watch community will talk of Omega the same way that Heuer and TAG-Heuer are today. Heuer is typically remembered fondly as a company which produced a wide variety of interesting, durable and collectable watches which was transformed into TAG-Heuer, a firm who chased after trends and image and produced a wide range of forgettable watches that few serious collectors have any interest in, save for the early "Transitional" models and their "Retro" models which try to recapture their former glory.

It has been painful watching TAG-Heuer, I'd hope I don't have to watch a repeat with another of my favorite brands, Omega. But that seems to be Omega's bound and determined course at this stage.

Regarding Sean's comment "to finally switch over to a decent Rolex": I just sold my brand-new DD since I neither liked the watch nor the brand.

Felix

-- Chuck