A few weeks ago, Akio Naito, President of the Seiko watch responsible and an important figure in the ever-rising success of Grand Seiko, visited Australia. The trip, celebrating the success of the Japanese brand down under, was something of a remarkable return for Mr Natio. Nearly 20 years ago, Naito was in charge of Seiko’s Australian market presence, and, as he told us, Grand Seiko had a very different reputation. Today, things are completely different, as the brand is set to open a boutique on Melbourne’s Collins Street, in the historic Block Arcade, following on from the tremendous success of the brand’s first stand-alone boutique on Sydney’s Market Street.

The growth in popularity of Grand Seiko worldwide has been exceptional since 2017. What are the lessons you have learned from the last seven years?

Well, we need to go back even further. In 2010, the brand made a global debut. And for three or four years, the sales didn’t pick up, you know, it was very difficult for us, not just in Australia, but all over the world outside of Japan. The consumer perception of Seiko is that it’s a mid-priced brand that is affordable but not necessarily luxurious. That was the perception we had to overcome. Finally we made a decision to separate Grand Seiko from Seiko. Previously, the Grand Seiko logo was under the Seiko logo. Now it would read Grand Seiko only. That change was in 2017.

I was transferred from Tokyo to the US in 2016, one year before the separation; at the time, I was not in the watch business, I was the CFO of the holding company, and I was given a specific mission by Mr Hattori to go the US and develop Grand Seiko. I went there and started a fairly significant restructuring. Nobody seemed to be confident in developing Grand Seiko in the US market, we had zero top retailers — the type that carried the major Swiss brands. We quickly changed that, and from 2017 on, everything started to improve. In a period of five years, sales of Grand Seiko increased more than 10 times.

One of the greatest lessons we learned as a brand since 2017 was how important it is to clearly communicate Grand Seiko’s brand identity. Although we introduced Grand Seiko overseas in 2010, we struggled with growth for several years because the general perception of the name Seiko outside Japan was that it is a mid-priced brand. The international public had difficulty distinguishing the perceived image of Grand Seiko from that of the Seiko brand. At Baselword 2017, we announced the independence of Grand Seiko from Seiko to communicate the two brands as different entities with distinctively different characteristics and qualities. Clarifying the difference between the two brands was a challenge, but we put a lot of effort into overcoming it.

Marketing and communication has been a key part of this success, educating the world on the differences and qualities of Grand Seiko — what has been the approach here?

We also put in effort to communicate the uniquely Japanese characteristics of Grand Seiko to differentiate the brand from our Swiss counterparts. I believe that Grand Seiko is unique and different because Japanese craftsmanship stemming from Japanese culture and the influence of the natural environment of Japan give our watches a uniquely Japanese character. For example, the harmonious interplay of light and shadow is central to the Japanese idea of beauty and is essential to the ideals of Grand Seiko. Its brand philosophy, “The Nature of Time,” is expressed in many Grand Seiko watch dials inspired by the landscapes around our manufacturing studios and the precision of its movements.

I am delighted to have also learned that there are many watch fans outside of Japan who find an emotional connection to the uniquely Japanese qualities of our brand, and this emotional connection is crucial in succeeding in the luxury watch market.

You’ve come an incredible distance in the last seven years; what do the next seven look like?

The next seven years will also be crucial to us, as we aim to increase brand recognition to the wider public and not just watch fans. Eventually, I would like to see Grand Seiko as the brand of choice, not just for watch fans, but also for the general public who are looking for a true luxury watch with a cultural history and unique aesthetic appeal.

I understand you looked after the Australian market in the early 2000s; how has it changed since you left?

The Australian watch market has changed a lot over the last 20 years since I left the country in 2006.

When I was in Australia, it was prior to the global debut of Grand Seiko, and there were voices, even back then, calling for Grand Seiko to be available in Australia — I actually explored the feasibility of this; I visited the top retailers in Australia, and it was a disaster — their image of Seiko was totally different then, and they were of the opinion that their clients would not pay that much for a watch that said Seiko. Clearly, that has changed. The market overall has evolved, too.

Australians used to travel overseas to purchase some of the finest timepieces. Today, many brands have increased their retail footprint in the country, and Australians now expect to be able to find the best a brand has to offer in their local boutiques. In addition, Australians are very discerning customers. We see this today in the car industry, where, as I understand, they quite often order high-spec cars with many upgrades. Australian watch collectors today appreciate truly exceptional timepieces. Because these collectors have a keen understanding of what makes a watch a quality watch, they very much appreciate Grand Seiko.

Finally, we’re coming off an immensely successful period for the watch industry and looking at a softer global market — how do you think the changing economy will impact Grand Seiko?

Obviously, this past year or two has been a very difficult time for a lot of luxury brands, not just watches, but in general; we have developed, as I said, Grand Seiko in the US market. The US is the most influential when you look at the global market, and for us, it is always the biggest market outside of Japan. So it was a priority for us to become successful in the US, and this success has elevated our success globally.

Having said that, Grand Seiko is still a relatively new and small brand overseas so large trends in the watch industry or macro-economic situations do not affect us as much as they do some of the major watch brands from Europe. On the other hand, many tourists are coming to Japan because of the exchange rate, and we have booming sales of Grand Seiko in Japan from inbound tourism.

However, I believe there is still much more room for growth in the luxury watch industry, especially for Grand Seiko. This is because luxury products are items with emotional value. In a world where people can conveniently look at the time, analogue watches have a strong presence as an emotional item beyond their function. I am convinced that luxury watches with unique characteristics, like Grand Seiko, will remain relevant. I foresee that luxury watch brands will continue to work on communicating their uniqueness and identity to separate themselves from their counterparts, allowing the customers to choose the watch that best resonates with their character.

You mentioned tourists coming to Japan — do you have any suggestions for fans visiting the home of Grand Seiko?

Well, depending on the level of interest or knowledge, I would definitely suggest a trip to Ginza in Tokyo, where the brand was born. There are many things to see there, including the Seiko and Grand Seiko Museum and the flagship boutique, in a relatively small area. Of course, if you have the time to visit the Grand Seiko Studio Shizukuishi, which is a three-hour train journey from Tokyo, that’s a unique experience. It’s very popular, though, so we suggest booking well in advance, as allocations disappear quickly.