The Embassy is a collection of some of the finest watch brands in the world. We balanced the offering between a more traditionally male and female representation and the price point coverage is designed to develop customers from their first watch into the wider watch world.
The name, The Embassy, comes from us representing those brands and Stratford-Upon-Avon having historically been a meeting point both for people within the United Kingdom and internationally because of it being William Shakespeare’s birthplace.
It is a small town, but it is extremely accessible for an affluent part of the UK and appealing to international visitors.
The brands that we have chosen to represent in The Embassy are ones that we have worked for over many years.
At the same time as opening The Embassy with these brands, we have been reducing the representation of some mainstream brands and have begun representing a number of independent brands in Pragnell.
We now represent Ferdinand Berthoud, which is new to us, along with Greubel Forsey, Laurent Ferrier and Ludovic Ballouard, which have all been extremely successful.
Yes. Of the brands that we have moved into The Embassy, we believe that Bulgari has a very interesting future, and we are relatively new to that portfolio. Brands with a jewellery heritage are strong and appealing currently.
We are seeing an increase in ladies wanting to buy fine watches, and we are particularly seeing demand for watches in yellow gold, for which we have seen sales rise substantially in the last year.
We see that as a ten-to fifteen-year trend, so those brands specialising in yellow gold watches are interesting to us right now. This trend is interesting from a socio-economic standpoint. If you look back over the past 200 years, you will see a white metal to yellow metal cycle of demand that alternates over a couple of decades.
We are entering a period of yellow gold, which almost always coincides with the high price of gold.
We have been in a transition period for a while from white to yellow metal, and you often see rose gold becoming popular during this transition. You saw it in the 1940s when the Art Deco period with white gold and platinum turned to rose then yellow gold.
Watch brands that are strong in the jewellery sector, most notably Cartier, Bulgari, Van Cleef & Arpel and Chopard, are very interesting at the moment.
We have also found a new lease of life from some of the Richemont brands that have shown a willingness for a stronger partnerships with us in recent months.
We have always been a great admirer of their brands and watches and they have made a number of recent announcements about their support and belief in relationships with independent retailers. It is becoming evident that they are moving in this direction.
That became evident when, unfortunately, we were not able to come to a mutually beneficial arrangement with Swatch Group.
Which means you have stopped selling Omega or any of the Swatch Group brands.
We could not find a mutually beneficial arrangement to continue.
Well yes. We were able to find a mutually beneficial arrangement with Jaeger LeCoultre, IWC, Panerai and Cartier. We have long standing and very good relationships with all of them. They are great brands.
The brands seem to want to be stronger with fewer [retail partners]. That is an obvious tend we have seen in recent years. That meant each of our meetings had a refreshing new dynamic this year.
The increase in the price of gold and the price of gold watches lends itself to retailers that are confident and comfortable in selling jewellery and have a strong female customer base. That has led us into some interesting conversations at the show. It is a great opportunity for all jewellers in the UK.
There is certainly evidence that in some cases watch manufacturers have discovered the challenge of retail and creating a high quality experience for customers is a highly detailed and personal quest.
As the standards and expectations of customers have risen, the challenge of satisfying those customers to the level they expect has become more difficult.
Those companies like ours that have been doing this for a very long time have the experience to adjust for different economic conditions, evolve as different styles are introduced, when the gold price increases substantially or any other changing circumstances.
These skills that have been developed over generations become more valuable to the brands.
It takes a very long time.
Absolutely. And I do not think it is possible to get to know your customers properly if you sell one brand or one product time. You need to get a know your customers personally. The people who work within Pragnell are our extended family; the vast majority have been here a long time. That longevity is felt by our customers, who feel part of our community.
I would also say there is a spirit of evolution and innovation within our company that customers like to see from the people they are dealing with. There is an appeal to feeling that we are all evolving together: the owners, the team and the customers. That takes a long time to establish.
There are some very good stores that are owned and run by brands with excellent teams. The same is true for the major retail multiples, which have some excellent showrooms and people who are there long-term and build great relationships with their customers.
However, to achieve long term direct, rounded relationships is extremely difficult and yet to be achieved by global brands. This is our role as a small family company.
A lot of our creative decisions are taken because they sound fun and engaging to us, and we think our customers will enjoy them. These things are personal to us, and not the sort of individualism and character that can be run from afar.
We think this is part of luxury. It is a luxury to be able to play with ideas and be creative with what we make and what we do with our customers.
There is an increased freedom in the market. A number of changes that have happened around the world have led to previous limitations or restrictions that were imposed by mainly the large watchmaking groups have been released. There is a feeling that the market has had a release. For some that has not been good, for others it provides great opportunity.
I have been going to the annual watch fairs for 27 years and the feeling was more similar this year to how things felt in 2008-15 when there was a liberation and expansion of the watch industry globally. It felt more like that this year because some of the controls we had become accustomed to had changed.
Yes, but it is different depending on the brand. It is fair to say that there have been too many doors in certain parts of the world, and this is recognised by many brands and they are reducing that number. That has concentrated their attention on fewer partners, which gives us a slightly different flavour. There is change afoot, and that will be disruptive. But, overall, I see opportunity for us here in the UK.
WATCHPRO: Were you still in Geneva on the day after President Trump’s Liberation Day address when he slapped a 31% additional tariff [since paused] on all Swiss imports? Did you see more ashen faces than usual the following morning?
CHARLIE PRAGNELL: There was certainly an atmosphere. People were trying to understand the implications, but I would not like to speak for everybody.
WATCHPRO: Not withstanding the Trump intervention, the general consensus is that this has been a good year for great new watches, which will always put a spring in the step of retailers.
CHARLIE PRAGNELL: What we have seen from Rolex this year is phenomenal. The new movement in the Land-Dweller has been improved in terms of accuracy, shock-resistance, the reduced need for lubrication, the better anti-magnetism, its slimness. It is an exceptional, ground-breaking development and a huge and permanent boost for the entire watch industry globally.
The collections that were launched by both Rolex and Patek Philippe were as strong as I can remember. The new case shape for the Land-Dweller adds a whole new style and aesthetic to the Rolex collection, and there is a new movement. It is incredible to get both at the same time and genuinely important for the industry.
Patek Philippe’s innovation and ability to launch different styles into every collection — and they work every time — is incredible. This year was a great example of the brand showing its foresight and its strength.
The Cubitus is fantastic. The larger model works best for my wrist, but the new mid-size will make it appealing to men and women. Its slimness makes it extremely attractive and easier to wear.
WATCHPRO: Cartier is having a bit of a moment right now and fits with your positioning as a historic fine jeweller.
CHARLIE PRAGNELL: Yes, Cartier is very strong. Its product development is superb. It is very good at ladies’ watches; very good at yellow gold. Historically, when gold prices are high, jewellers with watches do well. Cartier has an archive of incredible designs and they have adapted them superbly for the modern market.
WATCHPRO: People have told me that Christmas was not the sort of washout that some had feared, although some said sales came very late last year. Was that your experience?
CHARLIE PRAGNELL: It does feel like it gets later every year, but when you look at the facts it has not changed that much in our case.
We tend to hold our jewellery exhibitions at the beginning of November after communicating about them in October, and that seems to pick up the pace for us both internally and with our customers.
WATCHPRO: Bringing the conversation full circle back to The Embassy opening. Is this the first of many, or a one-off for Stratford-Upon-Avon?
CHARLIE PRAGNELL: We only need one in Stratford-Upon-Avon and no plans — currently — for anymore.
WATCHPRO: It appears you are not finished here in Stratford because I could see Pragnell hoardings up on storefronts between your Pragnell showroom and The Embassy a few doors down. How do you intend to use those additional units?
CHARLIE PRAGNELL: Too early to say. We have got various options available to us and there is no rush.
WATCHPRO: So far you have not opened a single monobrand store. But, as you described earlier, brands want bigger and better stores. Might we see a time when you are running boutiques with Rolex or Patek Philippe above the door?
CHARLIE PRAGNELL: I would not rule anything out.
