After a major yearlong restructuring, 2007 will end up being a crucial year in the life of Sector Group USA.
The New York-based watch and jewelry distributor, a subsidiary of Padua, Italy-based Morellato & Sector, which last year had a turnover of 195 million euros, or $276 million at current exchange, is out to increase its infiltration in U.S. stores, bringing to retailers an impressive array of designer watch and jewelry brands.
“We have completely restructured the company this year because we want to aggressively expand the distribution of the brands that existed before, and to launch all the new brands that exist under Morellato & Sector,” says Marco Frison, chief executive officer of Sector Group USA.
The umbrella company that owns Sector is regarded as one of Europe’s leading watch and jewelry companies. In November 2006, Morellato – which began in the Thirties as a maker of leather watch straps and now makes a full line of men’s and women’s watches and jewelry under that name – joined forces with Sector, a popular brand of sporty watches. The new group now runs a hugely successful timepiece and jewelry retail business in Europe, where it operates some 287 multibrand stores under the name Bluespirit.
“The DNA of Sector Group USA is totally different now with respect to what it was before the acquisition,” Frison says. “Before, it was oriented toward independent business, mainly with the Sector brand. Today, the scenario is much wider, because where before we focused just on watchesfrom one brand, today we have watches and jewelry in different positionings and through different brands.”
The alliance also brought together the various licenses held by both companies, including high-fashion name Miss Sixty and red-carpet favorite Roberto Cavalli. Morellato & Sector also recently announced it would launch a collection of John Galliano watches at the Basel Trade Fair in April 2008.
In September, the Miss Sixty watch line was rolled out nationwide, while Miss Sixty jewelry was shown at the JCK show in Las Vegas in June. JCK was also the launching pad for Just Cavalli women’s jewelry. Just Cavalli jewelry for men entered stores for fall 2007. Sector jewelry was also at JCK, and the existing watch collection is being repositioned nationwide. Morellato jewelry andwatches will be introduced to the U.S. for next year. Philip watches, another brand under the Morellato & Sector umbrella, celebrates its 150th anniversary next year, which will coincide with a deeper rollout in the U.S. And Pirelli – the company best known for high-end tires and a famous calendar heaving with supermodels and A-list actresses – is redesigning its signature rubber-strap watch, with new styles coming on line next year.
Massimo Carraro, president and ceo of Morellato & Sector, says the alliance with John Galliano, one of the most prestigious names in couture, would give the company even greater visibility and penetration.
“We are working with him personally on the collection,” says Carraro. “He’s an incredibly creative artist and is very involved with the line.”
The Galliano collection will join the Roberto Cavalli line at the top end of Morellato & Sector’s brand pyramid. Frison says the long-term objective of the company is to have something for every customer at every price point. The Miss Sixty jewelry and watch lines retail from $50 to $190; Morellato will go for $55 to $250, and Just Cavalli from $100 to $300 for both jewelry and watches. Sector will carry pieces from $65 to $900. Roberto Cavalli watches cost up to $1,900 at retail, Philipwatches are priced between $230 to $1,300 and Pirelli between $500 to $2,000. The anticipated retail prices on the John Galliano line will be between $1,200 and $3,000.
Frison adds that he anticipates being in 1,500 doors by the end of 2008 – up from between 600 and 700 now – including majors like Macy’s, Saks Fifth Avenue and Bloomingdale’s, as well as specialty watch and jewelry stores.
“There will be a big difference in our visibility from December of this year,” says Frison. “Next spring will be a real switching point in our business.”