Even before its first watch, The Runwell, sold out within eight days of its 2013 launch, Shinola had already achieved its most important goal.
“Our mission from day one was to create jobs in the US. We’ve made a commitment to rejuvenating American manufacturing,” says Jacques Panis, president of the Detroit, Michigan-based company, which was founded in 2011. Among The Runwell’s many fans are former US presidents Bill Clinton and Barack Obama.
“We started with watches because it is an industry that left our shores years ago. When you think about a watch movement, it is essentially the engine that powers the watch, so it’s appropriate that we are assembling them here in Detroit,” Panis explains — a reference to auto-industry giants Ford, GM and Chrysler, which all have their headquarters in the area. And the choice of the name Runwell was simple, he adds: “We say that it is built to last.”
Watches account for more than half of the company’s business, which has since expanded to become a lifestyle brand that also includes Pamela Love jewelry, leather goods, bicycles and audio equipment. In the overall watch market, the company is positioned as “affordable luxury,” according to Panis; the majority of watches retail between $475 and $2,000, putting it “above the price of most fashion brands and just under most Swiss brands,” he says.
The average Shinola customer is 35 to 45 years old, a media-savvy urban dweller, interested in travel and politics. Within each watch category, Shinola offers a range of styles and price points, and each watch is individually numbered.
“The Runwell goes through 34 different hands before it is finished, and we use the best materials available, like sapphire crystal and premium American leather,” Panis relates. The Canfield model is typically paired with a suit, while The Runwell Chronograph is “a bit more sporty.” However, Panis points out, “we find that a lot of our styles are considered unisex and purchased interchangeably between men and women.”
Sales of women’s watches are quickly catching up to men’s. In 2016, the company introduced the Shinola Diamond Collection, which coincided with a company push to expand products for women. “We saw this as an area we could grow. We launched women’s jewelry around the same time, and the pieces are designed to be worn together,” Panis explains, adding that the diamond watches are “selling well.”
Shinola has 28 free-standing stores worldwide — 26 in the US, plus London and Toronto. The watches are also distributed at 350 locations around the US, including through partnerships with luxury department stores such as Nordstrom, Neiman Marcus and Saks Fifth Avenue.
“We approach our retail stores as a 360-degree sensory experience,” Panis says. “We try to offer something special, whether it be a floral shop in our Detroit flagship, a tattoo shop in the back of our downtown Los Angeles store, or exclusive products in some cases. A ‘Willard Bar’ offers a selection of watch heads and straps so customers can customize their watches.”
In another nod to American industry, the bar is named for Willard Bixby, one of the founders of the iconic 1920s Shinola shoe polish brand. The name was later acquired by Bedrock Manufacturing Company, which owns the current business.
Panis cites Shinola’s “extremely engaged” social media following. “We leverage user-generated content like our #myshinola campaign, where happy customers share pictures of their purchases. That kind of word-of-mouth is essential to our brand and is a tangible way to see that we are fostering long-term relationships with our customers. We also recently launched a #RollUpOurSleeves campaign, featuring the motivated people who inspire us by rolling up their sleeves to make a difference.”
While Panis acknowledges that “made in Detroit” is definitely a conversation-starter, he stresses product quality in creating this distinctive American brand. Shinola intends to apply the same standards to the hotel it plans to open in 2018.
“We made a commitment to bringing back jobs to the US,” Panis says. “We’ve made great progress; we knew it could be done.”
Image: Shinola's flagship store in Detroit.
Article from the Rapaport Magazine - November 2017. To subscribe click here.