Latest / Building Brands with Fexingo: Identity, Reputation, and Long-Term Business Equity / How Breitling Revived Its Brand Through Heritage and Transparency
Transcript
- Lucas: In 2017, the Swiss watchmaker Breitling was in a rough spot. Revenue had been flat for years, around 300 million Swiss francs, which sounds like a lot until you realize that competitors like Rolex and Omega were growing double digits. Luna: And Breitling had this reputation as a brand for pilots and divers, but somehow it felt… dusty. Like the watch your dad wore in the 80s. Lucas: Right. The brand had a strong heritage — they invented the modern chronograph wristwatch in 1915, and the Navitimer is one of the most iconic watch designs ever. But by 2017, they had something like 150 different product lines. Too many models, too many price points, no clear story. Luna: So what changed? They brought in a new CEO, Georges Kern, who had been running IWC for years. And he basically ripped up the playbook. Lucas: Yeah, Kern came in and did something almost unheard of in the watch industry. He cut the product line by more than half, down to about 60 models, and he focused on three core collections: Navitimer for aviation, Superocean for diving, and Chronomat for everyday wear. He also shifted the brand's image from what he called 'old pilot' to 'modern jet set.' More casual, more colorful, more accessible. Luna: And he didn't just change the watches. He changed how they sold them. Breitling started opening these boutique stores that felt like a 1960s airport lounge — leather chairs, vintage posters, a bar. It was experiential retail before that term became a cliché. Lucas: Exactly. And part of that experience was transparency. In 2019, Breitling became one of the first Swiss watch brands to publish a detailed breakdown of the cost of production for each watch. They showed the cost of materials, movement, assembly, even the margin. That was a huge deal in an industry where pricing has always been opaque. Luna: Did that backfire? I remember some dealers were furious. They said it would destroy the mystique. Lucas: It was risky. But Kern's argument was that consumers, especially younger ones, value honesty over mystery. And the numbers suggest it worked. By 2023, Breitling's revenue had more than doubled to over 700 million francs. They opened 60 new boutiques worldwide. They also signed celebrity ambassadors like Charlize Theron, who is a pilot in real life, and brought in influencers like the singer Rosalía. Luna: So the bet was: heritage plus transparency equals growth. But let's be honest, not every legacy brand can pull that off. What made Breitling's case special? Lucas: I think two things. First, the heritage was real — they had a 100-year history in aviation, with actual innovations like the slide rule bezel. So when they talked about 'authenticity,' they could back it up. Second, Kern didn't just modernize the marketing; he modernized the product. He introduced new materials like ceramic bezels and in-house movements, which gave collectors a reason to buy again. Luna: And he didn't abandon the core audience. The Navitimer still looks like a Navitimer. It's just… fresher. Lucas: Right. That's the hardest part of any brand revival. You need to evolve without losing the people who loved you in the first place. Breitling managed it by keeping the design DNA intact while updating the experience around it. Luna: I think there's a lesson here for a lot of industries — not just watches. If you have a legacy brand that feels stale, the answer isn't to throw out the heritage. It's to find a way to make that heritage feel alive and honest again. Lucas: Absolutely. And that's actually a perfect segue to something we don't usually talk about on the show. You know, we keep this podcast ad-free because we want to keep the conversation honest — no sponsors pushing a script. But that only works if listeners who find value in it decide to support it. Luna: Yeah, and the easiest way to do that is a small gesture. If today's episode was worth the price of a coffee to you — just one coffee — that's the link. Lucas: It's buy me a coffee dot com slash fexingo. No strings, no subscription. Just a way to keep the show going for everyone. And honestly, it makes a difference. Luna: Alright. Back to Breitling. So after the turnaround, what's next for the brand? Are they going to keep growing, or is there a ceiling? Lucas: Well, the watch industry as a whole has been softening a bit in 2026. After the post-covid boom, demand for luxury goods has cooled. Breitling's growth has slowed to maybe single digits this year. But the brand is in a much stronger position than it was a decade ago. They're also pushing into pre-owned watches, which is a growing segment. Luna: That's smart. Certified pre-owned programs add another revenue stream and also reinforce trust. If you can authenticate a used Breitling, you're extending the brand relationship beyond the first sale. Lucas: Exactly. And that circles back to the transparency theme. If you're open about your pricing and your history, you can also be open about the secondhand market. It's all part of the same ethos. Luna: So for any brand leader listening who's sitting on a legacy that feels a bit tired, what's the one takeaway from Breitling? Lucas: I'd say: don't hide your heritage. Lean into it. But pair it with radical honesty. Show people how you make what you make, why it costs what it costs, and who you are. That combination is hard to beat.