Troverie—an online marketplace for luxury watches—launched today in the United States, offering a vast selection of timepieces from 16 brands, most of which are Swiss—including Omega, TAG Heuer, Breitling, Zenith, and Bulgari. Unlike Tourneau, America’s largest watch retailer, Troverie does not have a brick-and-mortar presence. Rather it has established partnerships with more than 70 watch retailers in 22 states, which allows for next-day delivery with most purchases. The site is also promising a concierge quality experience—with Troverie “ambassadors”—at each retail location.
“We offer brands and retailers an authorized infrastructure that combines speed, convenience of online service and expert guidance of independent jewelers for an elevated customer experience,” Fred Levin, CEO of Troverie, tells Forbes. “We are helping generations-old family-owned businesses expand their reach and enhance their digital presence in a seamless omni-channel platform.”
According to a 2017 report on the Swiss watch market by Deloitte, 60% of consumers research watch prices and information online, but a majority still make their purchases in-store. Troverie, part of the Authorized Luxury Group, believes it is well positioned to bridge this gap between online and offline shopping by offering a vertically-integrated experience. Above all, as an authorized retailer for each of its brands, Troverie is guaranteeing authenticity, which is always an issue with luxury watches.
“Previously a brand either had a relationship with a platform or with a retailer,” says Georges Kern, CEO of Breitling. “This is the first time you have a triangular system where the retailer, platform and brand are aligned.”
According to Levin, who has previously served as the Global CEO of the Concord Watch Company and was head of the luxury division at NPD, independent jewelers are responsible for around 90% of the new luxury watch sales in the U.S. The marketplace enables these retailers to participate in online business, while controlling transactions, fraud risk and customer experience through its trained ambassadors. Troverie’s algorithm identifies which retailers have which products in store, and matches a customer order with a retailer based on availability, proximity and service rating.
Troverie CEO Fred Levin previously specialized in collecting data from watch retailers to help the industry's stakeholders better understand market conditions and opportunities.Troverie
Michael Pollak, CEO of the Denver-based luxury watch retailer Hyde Park Jewelers, was eager to be part of the Troverie network as it offers him greater access to a larger customer base. “Troverie allows authorized U.S. retailers to seek new clients and additional revenue,” he explains. “Retailers finally have a voice and the opportunity to be part of the omnichannel online experience.”
Troverie doesn't hold inventory, nor does it have a physical presence. But, as a veteran-backed middleman, it hopes to streamline sales in the watch industry. Pollak and Levin both declined to disclose the commission rate per sale retained by Troverie.
While Troverie’s catalog is impressive, there some obvious gaps in the luxury brands it features, most notably Cartier, Rolex and Patek Phillippe—brands that are available at Tourneau. Acquired by European retail giant Bucherer Group in February, Tourneau offers new and certified pre-owned watches online and in its brick-and-mortar stores, and its customers have the opportunity to purchase Rolex and Patek Philippe watches only in its boutiques. But according to Levin, Tourneau only serves around half of the markets in which Troverie is available.
Tourneau’s resale business represents a segment of growing importance in the luxury watch landscape. Small independent brands such as MB&F and H. Moser & Cie have reclaimed control of the secondary market by taking pre-owned sales in-house, but others are betting it will be a big part of the watch market’s future. In June, Richemont announced its acquisition of Watchfinder.co.uk, the world’s largest seller of pre-owned watches, signaling an increased focus by the conglomerate on e-commerce solutions. In Asia, global watch resale marketplace Watchbox has enjoyed huge success: its chairman touts $200 million in revenue and 40% compounded growth.
For now, Troverie will focus exclusively on selling new watches, but Breitling’s Kern hopes this will change. “If we want to fight the gray market and ensure transparency for the consumer,” he says, “having platforms that work hand in hand with certifying pre-owned watches is a big thing to do for the future.”
Troverie’s focus on Swiss brands will also bolster the weakened Swiss watch industry. After two consecutive years of declining growth, exports of Swiss watches rose in the second quarter of 2017 to around $5 billion, despite the fact that more people bought Apple watches than Swiss watches during last year’s holiday season.
As for whether Troverie can actually improve the fortunes of watch brands and retailers, as always, time will tell.