Tough times for ADs in Klang Valley?

[2ndOpinion]

I was on the hunt for a newly discovered love of an iconic watch over the past 2 weeks. As usual, I checked out ALL the authorized dealers (ADs) at ALL the major shopping malls. I haven't been watch hunting in KL like for over 3 years now. And guess what? OMG! I discovered that just about all the AD outlets have relocated!

At one swanky mall, this large AD ("AD One") used to occupy 2 floors of prime shopping space. They're now remotely tucked away at the very end of the mall - and downsized. AD Two in the same mall, has been downsized as well although barely holding on its premier location

Across the road, AD One's sprawling boutique has more staff than customers. And AD Three's boutique, just 2 blocks away, is not exactly where it should be as the mall it's located has more customers frequenting the G-Shock outlet upstairs.

At an even more swanky mall, AD Two's presence has evaporated. AD One's one time location on a prestige brands floor is now banished to - yes, you guessed it - the ultra end of the mall.

AD Three's location in the same mall above is best described as "off the beaten track".

So just going by the 3 major ADs relocations from prime to sub prime locations, it's doesn't take a genius to conclude that they are indeed facing tough times. The business hungry sales staff validated that conclusion. And it's now the festive season when sales should be on fire!

I guess anyone buying from the ADs - the 3 usual suspects - should be able to cut a fine deal for themselves with deeper than usual discounts. And I intend to with that haunting watch that's keeping me awake at nite lol.

So given the hard times facing the ADs,  has anyone's gotten some bargain basement prices for their grails and/or have easier access to "reserved" limited editions stashed away from preying non VIP eyes at the shop front? Well, if you have not, do it pronto the next time lol. Until the GST kicks in, Msia is just about the cheapest place on earth to buy a good to great watch albeit the scarcity of hard-to-get pieces that remain the preserve of Spore and HK.

Cheers!

[Yoda]

I think another way to determine is frequency of sale by by Member Merchant.

Its 2 side of the sword.

1st : We can be getting some good bargain

2nd : Why that happen because of our economy which also hit and as we may have to delay our purchase, and the chain effect

In conclusion, its not good for everyone

[Gigi]

Hmm i think the effect was worse during the 2008 crisis. Guessed now is better and those ad's changed location as the result of those aftershock.

Think some of the collectors actually prefer to go to gray market or used dealer as the person who sold it are way more knowledgeable and the prices are more competitive then those salesperson in ad's who are more keen to only complete sales and reach their quota.

[sidestreaker]

As long as we continue to see Chinese tourists coming in bus loads, parked outside our major malls, it's still a good sign...

Even so (and watches aside) and as an overall, I had the impression that retail and domestic spending is rather healthy and in a positive climb, especially in the luxury sector. If I miss anything, please correct me...

[dpkong]

As long as we continue to see Chinese tourists coming in bus loads, parked outside our major malls, it's still a good sign...

Even so (and watches aside) and as an overall, I had the impression that retail and domestic spending is rather healthy and in a positive climb, especially in the luxury sector. If I miss anything, please correct me...

If the target market is for the ultra-rich, then I don't see them suffering in sales. The rich aren't getting poorer. The ADs that the TS is referring to must be those targeting the middle-class and those are feeling the pinch.

[chrisyen]

Today, I seen 4 watches...
One RO, one Roo, one Piaget polo 45, one Rolex
All gold cases and full diamond on case, dial n buckle...

But sadly, owner said he bought this from Taiwan few days ago... Not from msia! When I ask why not msia, he said he don't see the bling bling in msia shop...

[jason_recliner]

The internet is killing retail here.  It's probably a similar situation in Malaysia, and everywhere else.

[gapnap]

The internet is killing retail here.  It's probably a similar situation in Malaysia, and everywhere else.

For watches , the internet price isn't too far from retail price. For certain brands (especially those AD want to clear off) , retail is cheaper than the internet.

[jason_recliner]

The internet is killing retail here.  It's probably a similar situation in Malaysia, and everywhere else.

For watches , the internet price isn't too far from retail price. For certain brands (especially those AD want to clear off) , retail is cheaper than the internet.

Really?  That's interesting.  I've never found watch prices in Malaysia that cheap.  I've only bought one though, an Orient, in Penang,  just because it looked nice and I was on holidays. The price, however, was much more (>50%) the (very cheap) Orient USA prices available at the time.  But I've window shopped quite a few more.  My wife bought a Rolex in KL (Pavillion) early this year; the price was ok compared to Australia, but still quite a bit more than the grey market prices you see around.

[2ndOpinion]

The downsizing of the 3 major ADs is an indicator of the continuing downturn of the watch market in Msia in general I believe. Apart from turnover, a market downturn in anything means the ready availability (got stock or not? lol) of a model one wants, not necessarily the latest and greatest, is simply not there when one wants it. BUT you can almost always find it in Stinkapore...oops....Spore where the watch market is white heat hot. It's not that I'm adverse to buying what I want when I want it outside Msia, but hey isn't it great to take a drive down to Pavilion or KLCC, grab that beauty sitting there in Sincere or Cortina or Hour Glass waiting for you to own her, and then admire that beauty over a beer at Tom, Dick & Harry? And then mutter smugly to yourself "mou tak teng wor....".

So yes, that's what my first rant was all about - it's getting harder if not impossible to grab a much desired watch model in KL ranging from a humble SBBNO15 tuna to a bragging rights 5960R. And that's because of a possible no growth watch market in Msia evidenced by the much smaller footprints of the major ADs here.

I know, I know. We've a Starhill that's oft touted to be a horological calling of sorts for watch nuts, loonies and fanatics from all persuasions. But if you were to lust for AP's Lionel Messi in SS in Starhill, your odds would be better on a Sky Moon Tourbie presented by Stern Senior himself - move over Junior.

So I enjoy buying my watches from ADs in KL. Firstly, the prices here are just about the best in the world, and I do travel a lot (for business) to conclude on that. Secondly, nothing beats a local warranty. Thirdly, I like supporting Msia and Msian businesses. But, it's the ready availabilty, or even a decent wait time, for stocks of desired models that frustrates me to no end.

For some models, I can buy online of course but I don't for many reasons.  One is that major insurers won't insure Msian bound parcels. Yet another is that I'm anal over the conditon (minty if not BNIB) and completeness (full papers and boxes plus tags lol) of what I buy. It's harder to control my control fetishes with an online purchase unless it's an eyeball to eyeball transaction.

And gray dealers in Klang Valley? Maybe a little better than ADs when it comes to desired models availability but that also comes at a premium price. And the "international warranty" offered is as useful as a long expired local one.

Cheers

[Calibr]

And gray dealers in Klang Valley? Maybe a little better than ADs when it comes to desired models availability but that also comes at a premium price. And the "international warranty" offered is as useful as a long expired local one.

Cheers

For the average first time buyers of expensive branded watches, this forum's listed merchants and other grey dealers would appear less intimidating than those ADs filled with their sales people and the entrances bolted and guarded. If less customers walk into those ADs, it just means less sales opportunities. It's a different story if the ADs are interested to serve and sell only to recommended/known/repeat customers. Not an easy path for the ADs to tread, having to balance privacy of customers, security, and at the same time projecting a friendly and welcoming image for potential new customers. Those who don't adapt to this "Google Age" will soon be extinct.

[dpkong]

With the points put forward by 2ndOpinion, I tend to agree that we can find better availability of models at ADs outside Malaysia. I believe it's due to local Malaysian buying power for high-end models of any brand. Tourists also do not flock here to buy loads of high end watches and carting a few steel Rolex(s) home isn't high end anyway.

While I would, and have bought Rolex from outside the country, I would prefer buying AP or Patek from a local AD. Prices elsewhere not quite good after applying exchange rates. And at those prices, a personal experience is always preferred.

Also, I don't agree that ADs who don't sell online will disappear, at least not when dealing with high-end brands. Buying/selling a Swatch or Casio online is a completely different issue.