Nicolas Allaz, CEO of FIVE OCEANS Inc.:
“A custom-made watch for you, one of a kind in the world!"

1. Please tell us about your company history and business line.

Nicolas Allaz, CEO of FIVE OCEANS Inc.

Our company is a 100% subsidiary of Art-collectif in Switzerland, which is jointly managed by Mr. Thierry Sermier, CEO of the Swiss parent company, and me. The Japanese subsidiary was established on December 14, 2007. In establishing our company in Japan, we initially utilized the incubation office facilities offered by JETRO Osaka Office and received their total support. In addition, the Osaka prefectural government picked up part of the corporate registration costs.

Our business line is marketing custom-made Swiss watches on the Internet. Our watches are hand-made in Switzerland by five watch makers, and it takes from one to two weeks to deliver the products after receiving orders. Also, and this is still in the preparation stage, but a partner company is planning to incorporate our watch-selling website into theirs to directly market our products under private labels.

2. What motivated you to establish your company in Japan?
I'm from Switzerland and Mr. Thierry Sermier is a long-time friend of mine. Art-collectif and Custime companies collaborated and developed their own ordering system. While they were thinking of expanding their business into Japan, I was offered to join them since I had been living in Japan for six years and was familiar with the market in this country.

How to order watches on the internet

3. What was the decisive factor in locating your office in Osaka?
We market Swiss-made watches on the Internet and are not restricted as to where the company or inventory facilities should be located. There are people who say Tokyo is much better suited to do business in, but in the long run I felt that it would be better to work in a place I liked. I have been living in Osaka for six years and I like Osaka very much. That's why I founded the company in Osaka.

4. What are your company's

All watches are made manually in Switzerland.

advantages?
Our company has three advantages. The first is that the watches we market are made in Switzerland and we are confident about their product quality. The second is that, unlike ready-made products, our watches are custom-made, one of a kind in the world. The third is that ours is a new marketing method on the Internet that had never existed before. For example, it is possible to print your own designs or corporate logo on the dial plate.

5. Please tell us about some of the difficulties and enjoyment you experienced after starting your business.
We had difficulty initially with the ordering system on the Internet. Our website was prepared originally in French, and many different problems occurred when we tried to convert it into five languages including Japanese. It took much time and effort to solve them.

Our Japanese clients would place the order in Japanese, and this information would arrive in French in Switzerland where the watches are produced. We had to develop a system to ensure that all order data would arrive in Switzerland without mistakes. This was a very difficult task. On the other hand, we are pleased to have started this business because, unlike ready-made watches, we are now able to produce watches with the client's choice of designs.

6. What are your future goals including business expansion plans?
We are currently engaged in a “B-to-C” (Business to Consumer) business, but we are planning to convert our operations into a “B-to-B” (Business to Business) business.

A custom-made watch(sample)

For example, let us assume that a Japanese brand plans to produce watches under their own private labels. If they work with us under our system, then we will assume inventory and other risks so that it won’t be necessary for them to purchase parts, for example, in large quantities. In addition, we offer discounts for large orders (more than ten pieces). Furthermore,we do not simply produce identical pieces in large quantities; we can produce each piece with different designs for dials, watch hands, straps and others for these large orders.

As for our website, we plan to continue making improvements by speeding up slow-moving sections as well as making it easier for our clients to use. We currently offer four basic watch models, but in the near future we are planning to produce and market original designs exclusively for Japan by doing research on what kinds of watches our clients want and what their needs are.

7. What advice do you have for businesses hoping to advance into Osaka in the future?
They should take advantage of and utilize the various services offered by JETRO if they want to come to Osaka. They will help them with dealing with unforeseen problems that accompany starting up a business in this country. In coordination with Osaka Prefecture, they will provide a wealth of advice and suggestions even including subsidies that are available for new start-ups. They were very helpful for us.