Reputation matters - and can go some way to helping organisations through lean or changing times. This article focuses on smart vs. mechanical watches; many have predicted the demise of the 'Swiss' mechanical watch but, as Rolex shows, there is more to the purchase of a watch than just having the convenience of 'time' on your wrist, you have your smart phone at hand for that.
The article explores that having built such a powerful brand and differentiated its watch from others, Rolex has not succumbed to the supposed disruption brought about by the smart watches.
But I also found it interesting to see that Rolex tops the Reputation Institute's reputation tracker - this is a watch brand associated with wealth and luxury yet it also scores highly in a host of other areas. The Institute believes that reputation is based on emotional connections and looks at seven dimensions that spark an emotional response that leads to action, essentially - think, feel and do!
- quality of products and services
- how innovative and forward looking the business is
- what type of workplace culture does it offer
- how important is corporate governance
- is it a good corporate citizen
- how do its leaders behave
- and lastly does it perform well, is it profitable?
It takes a long time to achieve a good reputation and it has to be built on rounded and good foundations. As Rolex shows!
Its appeal isn’t perhaps as obvious as you might think. After all, as the Reputation Institute’s chief reputation officer Stephen Hahn-Griffiths reminds MT, Rolex has traditionally been association with conspicuous consumption, social status and elitism – hardly a recipe for public admiration when the economy is sluggish with uncertainty. But reputation is a complex beast: the RepTrak list assesses everything from innovation and performance to governance and citizenships. Hahn-Griffiths identifies three areas where Rolex stands out. ‘Rolex has built a strong emotional connection over time. It’s been highly effective in leveraging celebrity endorsements and sports sponsorships to comtemporise its reputation,’ he says. Think Roger Federer, Wimbledon and the British Open golf.