The Dive Watch Connection

Pretty good read.

Nice interview.

Definitely an interesting read.

I was especially curious to read their perspectives on discounts and grey market sellers (essentially saying they were against both) given the recent JomaShop offer (which seems to have cratered).

My guess is the Doxa AD contract requires a distributor who wishes to end their relationship with Doxa to return their unsold inventory for a refund. This is what Richemont Group requires (and they famously destroyed a bunch of returned watches in order to maintain their brand exclusivity).

The article states that Doxa produces about 10,000 watches per year, half of which are sold directly using Doxa's own e-commerce platform. The other half are sold through their AD network.

If we assume maybe 2,000 +/- watches are currently in AD inventories for sale, and AD's contractually cannot dump them on a grey market dealer and must return them to Doxa, how does that inventory get represented on Doxa's books?

By this I mean, even through Doxa has "sold" the inventory to the AD, the inventory is still a liability if that AD decides the brand isn't selling and wants to return the stock for a refund. The unsold inventory in their AD network represents a fairly large financial liability. (kind of like one of us selling a watch using PayPal only to have the buyer want to return it 4 months later)

My suspicion was the JomaShop thing was just the tip of the iceberg with a single AD trying to figure a way to make a bit more on their Doxa inventory than the Doxa return value.

Cool interview, makes me want a Doxa more, which I suppose is the point