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The Watch Lounge Speaks With Alon Ben-Joseph, CEO of ACE Jewelers

Tom is the founder and editor of The Watch Lounge. Together with his team he is dedicated to bringing you the best, original content you won't find anywhere else on the net. To read more articles by Tom please click here.

Article posted in: Interviews

I was very fortunate this week to be able to chat with Alon Ben-Joseph, the CEO of Amsterdam based Ace Jewelers. Specializing in watches and jewelry from some of the best known brands in the world the company is owned and operated by the Ben-Joseph family and is comprised of three different jewelry stores and an online eBoutique. Alon himself first became active in the family company in 1998 after successfully obtaining his Bachelors degree in New York. He then completed his Masters degree in Business Economics at the University of Amsterdam.

Today he talks to The Watch Lounge about Ace’s sales philosophy, the challenges the company faces and what the future holds.

TWL: Ace Jewelers is well known for being innovative and modern. How do you ensure you keep ahead of the the constantly changing trends in wrist fashion?

ACE: As a self-confessed watch freak and ambassador of watch brands (through our three retail and online eBoutique) I am committed to being on the front line of watch fashion. In order to achieve this we attend all the major watch fairs, read all the leading trade & consumer magazines, read leading blogs such as yours and even visit the brands in Switzerland. Over time we have also forged strong relationships with some of the brands we stock, to the point where we can now even give some input regarding their brand strategy and direction.

As an entrepreneur and advisor to consumers, I want to add value and give our customers what they really want. That’s why ACE puts in so much effort to stay on top of the constantly changing trends in wrist fashion!

TWL: True to its spirit of innovation the company was the first Dutch luxury jeweler in The Netherlands to open an eBoutique and this was largely driven by your efforts. What was your motivation in setting up the online store and what challenges have you faced along the way?

ACE: To put it simply, we truly believe in eCommerce. We launched our first website in 1998, but until last year never offered online purchase possibilities. In 2008 we identified this gap in the market and founded our fourth store: Ace Online. Although we are located in Amsterdam, we service many returning international customers and they literally demanded an eBoutique from us!

It was not easy though at first as all the watch and jewelry brands were opposed to the idea. Despite this we persevered and in 2008 we commenced our etail adventures and we haven’t looked back since. I think we can say that today there is a new wind starting to blow through the land of watches. Slowly but surely one brand after the other is coming to realize that eCommerce is not just a passing trend but rather a very real part of the future of watch retailing.

TWL: Since launching the official eBoutique in 2008 have you experienced an increase in international sales? Do you feel that this has helped grow your presence both in Europe and also the international market?

ACE: We want to emphasize that we are jewelers and our business is all about emotions. It is a common joke within our company that looking should not only be done with your eyes, but also with your hands. You need to touch the piece, see how it looks on you, listen to how it speaks to you. You cannot do this through the internet but that is fine because it was never our intention for Ace Online to replace our stores and this is still the case today. We truly believe they complement and help each other (in our industry – I can image this is not the case for every industry).

In recognition of this, therefore, we have adopted a new strategy, a cross-channel strategy where we have three physical retail stores, website(s) and most importantly a solid back-office that answers phone calls and instant messenger chats immediately, replies to e-mails within 24 hours and supports the sales teams in the stores. All our back office team members are trained in-house and also work in our stores. We don’t outsource anything!

I am very proud to say that we have noticed that this new strategy works very well for us. Not only are able to service our current (international) customers better we also attract many new customers (both nationally and internationally). To show our customers how much we appreciate their custom we send every order free of charge and therefore do not alienate a potential customer simply because of where they live. And, for orders outside the EU, we even send them tax-free!

TWL: The Global Financial Crisis has had a significant negative impact on the luxury watch industry over the past 18 months. How was Ace affected by the global financial crisis and what strategies did you put in place to help the company ride out the economic uncertainty?

ACE: As was to be expected we experienced a downturn in sales, but funnily enough it did not stop the sale of the more unique products we offer. What we have noticed is that many people got a reality check. Stocks, Bonds and Banks are not everything and why store your money at a bank and risk losing it all when you can use it to purchase watches that keep their value (or even go up in value over the course of time) and enjoy them daily in the mean time?!As such, we did not experience the same level of decline we saw other major groups undergo. On top of that our eCommerce activities continually help us create new business opportunities.

Besides, everything that goes up, must come down… And, visa versa. We have been in business for many decades, so this is not the first time we’ve experienced such volatile times and I’m sure it won’t be the last. Everything we do, we do with a long-term view, so we are confident we will become stronger from all of this.

TWL: What are the biggest challenges facing the company going forward? Do you have any plans for further growth within or outside of the Netherlands?

ACE: The biggest challenges are: lack of trained and skilled employees (solution: we run our own state-of-the-art in-house training programs); escalating criminality and violence (solution: our stores are like Fort Knox), Internet (solution: instead of fighting it, we’ve joined it!) and the power of economies of scale (solution: be a business partner for the brands, so they can’t go around you).

TWL: And finally, what watch are you wearing at the moment and why?

ACE: Most important question when interviewing a self-confessed watch freak, I also always want to know when I read an interview about someone else!

Currently I am at work and therefore I am suited up. When I suit up I love to wear one of my all time favorite watches: the IWC Portuguese Rattrapante. I have been in love with this watch since I was a kid and still enjoy it every time I wear it!

To find out more about Ace Jewelers and to check out their online eBoutique log on to Ace Jewelers.

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