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Published on July 26, 2007

At a time when the world has many issues to worry about - economic crises, currency fluctuations, terrorist attacks, political manoeuvring, climate change and much more - Cindy Livingston believes people will set the problems aside and continue to enjoy their lives. And as long as they continue this enjoyment, there is an opportunity for businesses and the economy to carry on.

As president and CEO of Swiss-based wrist-watch manufacturer Sequel - makers of Guess and GC (Guess Collection) watches - she maintains a cheery optimism for the future and has even set a personal goal of achieving sales of $1 billion (Bt33.7 billion) next year, up from $800 million expected this year. Her business plan for next year is already formulated and fixed.

"People cannot keep worrying about these things every moment of their lives. They want to enjoy the outdoor life and make themselves look good," she says.

And being a regular traveller, making marketing visits around the world, she has witnessed occasions on which countries' economies have fallen sharply because of unexpected events, only to recover their prosperity again.

She gives the bombing of the London subway as a case in point. The July 2005 incident kept people in shock for six months. They were afraid to walk outdoors, and shopping malls were nearly empty. But eventually, people could no longer bear such a stressful existence and began to do as they wanted once again, and this led to an economic revival.

Another good example is the October 2002 bombings on Bali, she says. Not only were local people worried, but also foreigners, for a whole year. Again, the situation gradually returned to normal after a certain period of stress.

The same thing occurred in China after the Sars outbreak and in Asian countries following the economic crisis 10 years ago.

Therefore, Livingston dismisses Thailand's current woes, including its sluggish economy and political uncertainty, as mere "hiccups".

"Thais still don't know when a general election will be held. Managing the economy seems to need more time, and people might feel uncertainty at a certain level and don't want to spend money for a while. But then you have very good infrastructure for transportation, and you have great department stores - just right there - so the time will come when people just don't want to live with stress any more."

She believes the recovery process in Thailand has already begun and that conditions should soon return to normal.

She also believes Thailand will continue to be among Sequel's major markets in Southeast Asia for its GC watches. Indonesia is the largest market, followed by Singapore, with Malaysia and Thailand tied for third largest.

One factor that fills Livingston with confidence is Sequel's good performance in the Thai market last year, doubling its sales-growth figures despite the political turmoil, economic shocks and the September 19 coup.

Sequel has already set next year's global business plan. Its focus for now is marketing the GC brand, which Livingston says was established to hold onto Guess' loyal customers.

Guess, which was established as a US brand, targets people aged 16-25 and who are in the midst of career success. The wrist-watches are fashionable and have lifestyle features. GC, on the other hand, was established as a Swiss-made brand. It targets people aged 25-40 with watches that have a more elegant, sophisticated look, yet are still affordable.

Guess watches are manufactured in the US and Hong Kong and priced between Bt4,000 and Bt8,000, while GC watches are manufactured in Switzerland with retail prices from Bt10,000 to Bt30,000.

The company's plan is to invest heavily in increasing its production capacity, with a new plant in Switzerland that will be ready for production in September. It will spend $10 million on advertising and another $10 million for marketing activities, and 5,000 selling points in 70 countries (including 25 points in Thailand) will be redecorated by September 2008. Five new boutiques will open in Malaysia, Indonesia, Singapore, Dubai and Thailand, and new product packages will be introduced.

In the world of wrist-watches, consumer desire is perceived as wishing to wear a watch that best reflects one's personality, be it fashionable, sophisticated or simply elegant. And in the premium segment, to which both Guess and GC belong, correct features are paramount, with price of secondary concern.

"Watches are not just tools for telling the time any more. People own more than one watch, so they can wear different watches for various occasions," Livingston says. And if people still enjoy owning fine watches that make them look good, if they are still willing to spend money for this enjoyment, then businesses should be prepared to go out and serve them and, for their part, enjoy the beautiful returns.

Nitida Asawanipont

The Nation