No e-commerce yet for Japanese watch maker Seiko

As the watch industry moves from just being a device to tell time, or even an accessory, to becoming a multi-purpose device, pure-play brands have to innovate, albeit in their own way. Seiko, a Japanese watch company founded in 1881, is also innovating - more recently with its GPS enables watches.

However, one leap that the company is not yet willing, or is not ready enough, to take is e-commerce. While the medium is important as a communication tool for Seiko, the company still does not sell online.

"We do not like the discounting that is happening on the internet," says Atsushi Kaneko, Managing Director, Seiko India, adding that the company had some problems with third-party sellers (who would buy from authorised sellers and sell through e-commerce at discounted prices) initially, but has now resolved the issue. "We've tried to stop that to some extent by trying to speak to our (exclusive) retailers and encouraging them to not give out products to these third-party people," says Kaneko.

Seiko maintains a strict stand on warranty and clearly states that anything bought on the internet does not come under warranty. Multi-brand outlets use online with an omni-channel approach where consumers can place an order online, and it gets fulfilled from the brick-and-mortar stores.

The company is currently exploring and trying to understand the medium, but does not intend to get on the platform right away. "In future, we might look at (e-commerce). But honestly, our brick-and-mortar retailers continue to be the backbone of Seiko's business today," Kaneko says.

Kaneko also points out that discounting in India is extreme. "If you look at business in the long term, this will kill the industry. It cannot continue for a long time," he says. "We haven't run a discount program in this country till date and it has been seven years of existence."

For Seiko, which sells its products at 350 points of sale - including exclusive and multi-brand outlets - brick and mortar still rules.