In 2017, A. Lange & Söhne had a problem. They were rapidly becoming one of the most in-demand watch brands in the world. All of their top models were selling instantly, with multiple buyers clamoring for the very same watch. Wait lists began to accumulate for many of their core timepieces. Far and wide, collectors were talking about how exquisite Lange’s timepieces were. What was once a watch brand only truly appreciated by those in the know, was rapidly becoming a widely known, if still esoteric, powerhouse.

But how on earth could all of that success and praise be a problem? Well, while that growth may seem at first blush to be any company’s goal, the reality is a bit more nuanced. With over 250 points of sale globally, and a yearly production capacity of around 5,000 watches, the demand for Lange’s watches was far outpacing production, and the ability to maintain inventory in those stores was reaching an unsustainable pace.

Within those retail spaces, cases were becoming less and less populated with watches that customers could actually try on and experience. Core models began to pop up here and there on the secondary market with large premiums. Slowly but surely, Lange began to feel a certain sense of disconnection with their clientele. While growth and success are both great, it is not always sustainable. This was not the kind of growth that A. Lange & Söhne was interested in, or had worked so hard to achieve.

Thus, Lange made the hard choice and began a multi-year process of pairing back their retail presence, closing doors all over the world, and examining their own retail spaces in the process. According to CEO Wilhelm Schmid, it was a restructuring that would affect every aspect of the company. “As we went through the transformation, you cannot just change your distribution strategy and believe that it’s just an external transformation. It actually is something which will basically change all touch points within your company.”

At the core of the shift was the desire to be more connected to the collectors and clients who were actually buying their watches, and in doing so, understand and curate the purchasing experience that Lange customers would have. Who is actually buying the watches, what is their first exposure to the brand like, and are they actually getting to see the watches that brought them in in the first place? Was the introduction to the brand reflective of who Lange is, or was it something else entirely? And what of existing Lange client relationships?

The initial response from the community was critical, the assumption being that Lange felt it didn’t need retailers anymore, or that it was uninterested in catering to those customers who had bought through authorized dealers (ADs) in the past. But the reality was quite the opposite. According to Mr. Schmid, the process of allocation was convoluted, oftentimes leaving both customers and the company dissatisfied.

“What we didn’t understand is that it was the same client who asked three, four, five different points of sale. They all took him or her as a serious client and interested in that watch. That was the feedback we got. We accumulated the feedback and as we have a very restricted capacity, we allocated too much capacity to one watch.”

Clear Heads Prevail

Anytime a company decides to pull back from some or all of their authorized dealer relationships, they are often met with suspicion, resistance, or outright revolt. But motives matter, and while intentions can be communicated to varying degrees of success, it is often only with the luxury of perspective that we are able to actually understand whether or not something was a good idea.

As much as it may pain us to admit, the structure of a widespread authorized dealer network may not always be the best system for a company to follow, for either the company or for the customers themselves. While it can be easy to bemoan the idea that a collector needs to buy directly from a brand instead of their AD, when the reality and availability dictates that one must canvas multiple ADs to get an allocation anyway, no one wins.

In an effort to restructure and strengthen their relationships with their end consumers and collectors, specifically, Lange has established a three-pronged retail approach comprising Flagships, Boutiques, and Salons. A few months back, the first Salon in the US was opened in San Francisco, with an invitation sent to existing customers in the Bay Area.

The idea behind the Salons specifically is that they are a space for customers and collectors to truly connect with Lange in a more relaxed and intimate atmosphere. These spaces are not necessarily street level; appointments are encouraged, but not required; and time can be spent leisurely for both the sales associate and customer alike.

With that said, there is no velvet rope across the door, no minimum spend before an invitation is extended. On the contrary, spaces like the salon will ensure that Lange is able to further craft the experience of customers new and old. “We see ourselves more as a watchmaker than a luxury producer. And for that, you need to prepare the right atmosphere. So if you come here to the salon, we have enough time and space to work with. You really know you have it for yourself. If we know upfront what you want to look at, we can also make sure that we have it because, with eight boutiques, we probably have almost all watches at our disposal. They just may not be in a certain location, but we can ship them quickly.”

The level of product that A. Lange & Söhne creates also comes with an equally high level of experience and expectation. As they continue to refine their retail presence and structure, the goal is to ensure that whether someone is interested in their first Lange or their tenth, the brand is leaving no part of that experience to chance. While there may be bumps along the way, as with all challenging transitions, the genuine feeling when you step into one of their Flagships, Boutiques, or Salons, is that they are very much heading in the right direction.

Learn more at A. Lange & Söhne here