SPEAKER: Times are tough for Rochat and Schmid,
SPEAKER: Times are tough for Rochat and Schmid,

a 100-year-old Swiss maker of luxury timepieces.
a 100-year-old Swiss maker of luxury timepieces.

In the increasingly important, but fiercely competitive,
In the increasingly important, but fiercely competitive,

Chinese market, sales are flat.
Chinese market, sales are flat.

Wei Song is a director at R&S overseeing greater China
Wei Song is a director at R&S overseeing greater China

from his base in Shanghai.
from his base in Shanghai.

It's up to him and his VP of Marketing, Pearl Zhang,
It's up to him and his VP of Marketing, Pearl Zhang,

to figure out how to boost sales, especially
to figure out how to boost sales, especially

during the upcoming Chinese New Year ad blitz.
during the upcoming Chinese New Year ad blitz.

They have a big meeting tomorrow with Simon,
They have a big meeting tomorrow with Simon,

R&S's strong-willed chief creative officer,
R&S's strong-willed chief creative officer,

who's generally resistant to new ideas.
who's generally resistant to new ideas.

But Song and Pearl know they need
But Song and Pearl know they need

to breathe some new life into R&S's marketing
to breathe some new life into R&S's marketing

and decide to check out an event by their chief competitor,
and decide to check out an event by their chief competitor,

Berlinger, whose splashy new campaign stands
Berlinger, whose splashy new campaign stands

in stark contrast to R&S's traditionally more
in stark contrast to R&S's traditionally more

restrained approach.
restrained approach.

PEARL ZHANG: Song, you asked what
PEARL ZHANG: Song, you asked what

we could do to boost sales.
we could do to boost sales.

The answer is something like this.
The answer is something like this.

WEI SONG: Yes, Berlinger is great at splashy promotions.
WEI SONG: Yes, Berlinger is great at splashy promotions.

But R&S doesn't do diamond-encrusted anything.
But R&S doesn't do diamond-encrusted anything.

R&S stands for subtle elegance, and you know
R&S stands for subtle elegance, and you know

how Simon feels about bling.
how Simon feels about bling.

PEARL ZHANG: Simon has to understand
PEARL ZHANG: Simon has to understand

that subtle marketing in this city, this country,
that subtle marketing in this city, this country,

just can't compete with that.
just can't compete with that.

If Geneva depends on us to make their yearly numbers,
If Geneva depends on us to make their yearly numbers,

they need to understand what we're up against.
they need to understand what we're up against.

WEI SONG: I agree we need to generate more buzz.
WEI SONG: I agree we need to generate more buzz.

We'll need to present some innovative ideas to Simon
We'll need to present some innovative ideas to Simon

tomorrow.
tomorrow.

Are you ready?
Are you ready?

PEARL ZHANG: I sure hope so.
PEARL ZHANG: I sure hope so.

SPEAKER: The next day, Pearl makes her pitch
SPEAKER: The next day, Pearl makes her pitch

to Simon for a calculated departure
to Simon for a calculated departure

in R&S's Chinese marketing.
in R&S's Chinese marketing.

She pitches an endorsement deal with Changchang Gao,
She pitches an endorsement deal with Changchang Gao,

a Chinese singer and actress with 30 million followers
a Chinese singer and actress with 30 million followers

on Weibo, many of them millennials.
on Weibo, many of them millennials.

When she releases a song, they download it.
When she releases a song, they download it.

When she wears a dress, they buy it.
When she wears a dress, they buy it.

Pearl is friendly with Changchang's agent,
Pearl is friendly with Changchang's agent,

and could guarantee a reasonable rate
and could guarantee a reasonable rate

if R&S can commit to a three-year contract.
if R&S can commit to a three-year contract.

Changchang would be the face of a new slogan--
Changchang would be the face of a new slogan--

You Deserve It.
You Deserve It.

SIMON: Pearl, I admire your creativity.
SIMON: Pearl, I admire your creativity.

But I've always found endorsement deals a bit lazy.
But I've always found endorsement deals a bit lazy.

And even if we did do celebrities,
And even if we did do celebrities,

which we don't, this Changchang Gao
which we don't, this Changchang Gao

seems too young and flashy for Rochat and Schmid.
seems too young and flashy for Rochat and Schmid.

PEARL ZHANG: But Simon, Chinese consumers are young.
PEARL ZHANG: But Simon, Chinese consumers are young.

They make up a big part of the luxury sales market
They make up a big part of the luxury sales market

and they like flash.
and they like flash.

If we aren't going to offer watches with added bling,
If we aren't going to offer watches with added bling,

like Berlinger's, our only other option
like Berlinger's, our only other option

is to kick up our marketing in ways
is to kick up our marketing in ways

that appeal to their tastes.
that appeal to their tastes.

SIMON: Elegance always trumps excess
SIMON: Elegance always trumps excess

with luxury buyers, Pearl.
with luxury buyers, Pearl.

The trend is toward inconspicuous consumption,
The trend is toward inconspicuous consumption,

even in China.
even in China.

WEI SONG: That may be true, Simon, but will trends
WEI SONG: That may be true, Simon, but will trends

change fast enough to deliver growth to our shareholders
change fast enough to deliver growth to our shareholders

this year?
this year?

As you know, if we lose ground in China,
As you know, if we lose ground in China,

it affects the whole company.
it affects the whole company.

So maybe Pearl is right and we need to shake things up.
So maybe Pearl is right and we need to shake things up.

SIMON: We're not changing our product designs now,
SIMON: We're not changing our product designs now,

and we shouldn't change our marketing, either.
and we shouldn't change our marketing, either.

Let's not lose track of what value
Let's not lose track of what value

Rochat and Schmid offers the market.
Rochat and Schmid offers the market.

PEARL ZHANG: Simon, I understand we need to honor our heritage
PEARL ZHANG: Simon, I understand we need to honor our heritage

and maintain a consistent image worldwide.
and maintain a consistent image worldwide.

But as you said yourself, China is a unique market.
But as you said yourself, China is a unique market.

Our existing campaigns are beautiful and on-brand.
Our existing campaigns are beautiful and on-brand.

But in a crowded and stagnating market,
But in a crowded and stagnating market,

they're simply not working as well as we'd like.
they're simply not working as well as we'd like.

SIMON: And how do you know that this endorsement will actually
SIMON: And how do you know that this endorsement will actually

work?
work?

SPEAKER: How does Song know Changchang's endorsement would
SPEAKER: How does Song know Changchang's endorsement would

work to boost R&S's sales in China?
work to boost R&S's sales in China?

While Song mulls this question over,
While Song mulls this question over,

he takes a cell phone call from Rolfe, R&S's CEO.
he takes a cell phone call from Rolfe, R&S's CEO.

ROLFE: So, my friend, I hear from Simon
ROLFE: So, my friend, I hear from Simon

that you and Pearl want to shake up your marketing.
that you and Pearl want to shake up your marketing.

WEI SONG: Yes, Rolfe, we are indeed
WEI SONG: Yes, Rolfe, we are indeed

considering a new direction.
considering a new direction.

It would be a departure for R&S. Have you seen Pearl's mockups?
It would be a departure for R&S. Have you seen Pearl's mockups?

ROLFE: Yes, yes, and Simon told me he thinks it's off-brand.
ROLFE: Yes, yes, and Simon told me he thinks it's off-brand.

But he doesn't run the company, I do,
But he doesn't run the company, I do,

and I trust your knowledge of the Chinese market, Song.
and I trust your knowledge of the Chinese market, Song.

If you can stay within budget, do you
If you can stay within budget, do you

want me to overrule Simon on this?
want me to overrule Simon on this?

SPEAKER: Song knows the status quo is not working.
SPEAKER: Song knows the status quo is not working.

But he wonders, is a celebrity endorsement deal
But he wonders, is a celebrity endorsement deal

really the right tool to help boost R&S's market
really the right tool to help boost R&S's market

share in the Chinese luxury watch market?
share in the Chinese luxury watch market?

Should he enlist Rolfe to fight Simon on this?
Should he enlist Rolfe to fight Simon on this?

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[MUSIC PLAYING]