The internet and its associated technologies are disrupting every industry. The watch business is no exception. Online sales and upstart brands have challenged longtime industry leaders with lower overhead, new direct marketing methods and faster supply chains that are adaptable and agile to excel in an increasingly crowded marketplace. For watch brands to remain relevant and profitable, adopting new technologies that streamline operations and provide a better customer experience are essential.
In this 5 part series, we examine the most troubling issues facing the watch industry today, the underlying cause of each and how implementing the FINS solution solves them for watch brands.
Not Adopting New Technologies
When the industry’s last big boost in revenue occurred resulting from increased sales in China and Asia, many brands responded in a very traditional way – expanding existing facilities, hiring more employees and increasing inventories to supply product for markets that were yet to be proven and turned out to be unsustainable. When overseas sales slowed, those brands faced costly results – closed factories, layoffs, and overstock of completed watches. By relying on a traditional mass-production model with traditional distribution to retail stores, they were not able to respond appropriately to changes in the market. Failure to adopt cost-saving manufacturing philosophies and powerful new sales and marketing tools, is severely impacting the famously traditionalist watchmaking industry.
Retailers across all industries were caught by surprise with the rise of internet shopping and ecommerce. As other industry brands have been forced to adapt (or disappear) the same is occurring in the watch industry. The top luxury brands of the watch industry have also been reluctant to transition to online sales, perhaps believing that the status and prestige of their products may suffer. However, this doesn’t agree with consumer trends and individuals’ changing preference to the convenience of online shopping. Increasingly, consumers are more comfortable with shopping and buying online not just for consumer goods but for luxury goods as well. For today’s shopper, there is less convenience and little incentive to buy at traditional brick & mortar locations when they can save money and time by buying online.
Watch brands need to adapt to be successful. They need supply chain and manufacturing systems that take advantage of the Lean Inventory practices, Micro-merchandising, Cloud ERP and Business Intelligence tools that are transforming companies across all industries.
FINS is the 1st Cloud ERP solution created specifically for the watch industry supporting Just-In-Time manufacturing. FINS uses lean inventory practices, micro-manufacturing and advanced merchandising with end-to-end traceability managed by an online portal customized for your watch brand.
FINS was designed by watchmakers, for watchmakers and addresses the biggest problems facing the industry today…
Cloud ERP – Cloud ERP (Enterprise Resource Planning) innovation has been one of the most important components moving manufacturing into the future. A Cloud ERP gives instant access and real-time data for any team member anywhere in an organization. A good industry-specific ERP connects all stages of procurement and production as well as sales and marketing. The FINS Cloud ERP has storage capacity for huge amounts of data, redundancies for hardware failures, and Big Data analytics for highly detailed reporting, sales forecasting, inventory control and market analysis.
Lean Inventory & Micro-Manufacturing – FINS utilizes the latest in Lean Inventory practices as the foundation of its solution for the watch industry. By carefully analyzing past and current sales as well as identifying slow moving and dead stock, FINS drastically reduces component stock and eliminates non-moving inventory. By reducing inventory carrying costs, producing only the watches needed at any given time, and responding automatically to changes in market demands, FINS avoids the pitfalls of mass production and remains flexible to quickly change output to perfectly match demand.
Online Sales – The FINS solution includes the ability to implement ecommerce and online sales customized for any brand. The ability to add a proven and reliable online sales platform puts brands into the lucrative online shopping marketplace quickly and gets their products in front of the modern online consumer.
Product Personalization – FINS includes powerful tools for point of sale customization and product personalization. Using an intuitive online visual watch builder, customers can personalize their own watch, selecting different models, colors, styles and options for a bespoke design of their choosing, an important option that better engages consumers who expect uniqueness, and greater input into their fashion choices.
Retail giants across many industries have suffered and in many cases, closed their doors due to a reluctance to innovate with available technologies. As the market becomes more crowded and the internet has democratized opportunity for smaller brands and niche makers, longtime industry leaders have seen their market share diminish and sales decline year on year. Many are playing catch-up with ecommerce and scrambling to reorganize slow, costly supply chains. For watchmakers too, the outlook is clear – those that fail to innovate and adapt will pay a heavy price. However, by taking advantage of new tools and technologies, watch brands can build their future rather than simply react to it.
As the only Cloud ERP and Supply Chain solution designed specifically for the watch industry, FINS gives watchmakers the tools they need to create a flexible, efficient system to control and optimize every aspect of the watch business. FINS is adaptable, upgradable, and flexible. It uses the latest in manufacturing protocols and internet technologies to prepare watch brands for the future.
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the FINS manufacturing software solution for the watch industry.