The Expansion of a Niche Luxury Watchmaker: Sjöö Sandström in Europe

Abstract

The global watch industry is growing and evolving by constantly responding to fluctuations in consumer demand for luxury purchases and growing competition from new wearable smart electronic gadgets, such as Apple watches. The latest industry challenge is a recently released golden smartwatch that immediately entered the price range traditionally reserved for Swiss timepieces. Global Swiss watch sales remain strong and sustainable thus far, especially in the BRICS (Russia, Brazil, India, China, and South Africa) markets. Other makers of expensive watches, including the manufacturers of many private luxury watch brands, are less securely positioned. Newcomers from other countries, such as the Swedish brand Sjöö Sandström, normally must adopt a niche positioning strategy within the industry, which the Swiss have historically dominated. This approach to marketing should be revised, because the company has enough rigor, style, and innovations to offer the world. The objective of this analysis is to formulate corporate marketing strategies for expansion beyond Sweden and to discover and discuss potential opportunities and risks that will affect the company’s attempt to introduce its brand to European capitals. Sjöö Sandström’s current competitive position will be analyzed in the context of the market for global luxury watches. The company’s marketing mix will be evaluated in terms of the specific new markets chosen. A thorough analysis will yield recommendations to help the company overcome market challenges and place itself appropriately among the top luxury watchmakers.