Luigi Verga Orologi is a Milanese retailer that rose to prominence after the Second World War. Today we spoke to Federico Verga, the fourth generation of his family working in the business, and an excellent representation of the next generation of the watch industry.
The Verga family with Federico on the top right.
Andres Ibarguen: Luigi Verga Orologi is an important retailer in Milan, how and when was the business founded?
Federico Verga: The shop Orologeria Luigi Verga was born in 1947 and it was my great-grandfather, Luigi, who founded it with my grandfather, Valerio. So, I’m the fourth generation of my family that works in the shop. Valerio still works here too – he is 90 years old now and he comes to work everyday. Then there is my father Umberto, who also works in the shop, along with myself and my brother Riccardo for the last 5 to 6 years.
After the Second World War, Milan was destroyed. My great-grandfather Luigi worked as a watch repairman at another shop, and after the war he decided to start his own shop for repairing and selling timepieces. His wife and his son also worked with him. They started with a little shop in via Mazzini in the center of Milan and now that same shop is four times bigger than the original space.
AI: When did you personally get interested in watches?
FV: It’s been a long time because now I’m 25 years old and I received my first watch at 8 years old, a super cool Swatch. Since I was very little, I’ve always had a watch on my wrist and I love them. It’s in our blood; in our family we have a keen interest in watches.
AI: Did this interest in horology coincide with your interest in joining the family business?
FV: I started working after school, so I didn’t do university or college. I finished school at 19 years old and in September I went to work. It was a bit hard on me since most of my friends went away to university but it was great to work in the shop with my father and grandfather, I really enjoyed it.
AI: What’s your favourite watch in your own collection?
FV: I really don’t have a favourite watch, because I like a lot of different watches, but I do prefer vintage watches over new ones.
AI: What would you say is the most important aspect of customer relationships given all of the new technology available in the watch industry?
FV: We have an important relationship with our customers given that it is a family business. We get a lot of customers who send us messages after hours, on days when the shop is closed. We always answer regardless of the time, which is something that many other retailers don’t do. We maintain the boutique feel given how closely we work; when you come in the shop you speak directly to us, we’re right behind the counter.
One of the Verga boutiques
AI: How important do you think having an online business has been to growth over the last few years? What about more recently in the face of the lockdown?
FV: We do not have an e-commerce business, and I think that for watches, it’s too early to go for e-commerce. Since it’s such a precious object that costs a lot of money, I feel like there’s an important emotional aspect of speaking with the customer. So, I’d say that in Italy, e-commerce wouldn’t really work. We see that a lot of customers come here, they try the watch a few times, come back with a friend or a wife – every time asking us different questions, needing our support to make their choice. So, I think that in Italy e-commerce won’t work. And I speak with a lot of our competitors in Italy that have e-commerce, and they say that they had underwhelming sales during the lockdown.
AI: What aspects of technology (social media, digital marketing etc.) do you see as critical for your business going forward?
FV: Technology that we use a lot is social media: Instagram, Facebook, WhatsApp – because its very important to maintain relationships with new and old customers. In terms of marketing we do 3-4 events per year with our mains brands, in our shops or maybe other locations. This is very important for keeping in touch with customers and for getting them to experience our love and passion for watches.
AI: How do you see the interaction between the new, pre-owned, and vintage watch market, developing in the future?
FV: A lot of brands like Rolex, Patek etc. are now starting to have interest in pre-owned and vintage watches, even a lot of retailers like Bucherer, Hausman in Rome and us, Verga, are opening specific shops for these segments. We opened our first pre-owned shop in 2014, so six years ago we got in the pre-owned market and two years ago we started with vintage watches. I think it’s a service that we need to have for our customers, we see that a lot of people like to buy the new version of their watch, or sell a watch to buy a watch of higher price, and I think this is a very good thing that is happening – the market is developing very well.
One of Verga’s newest boutqiues near Piazza Gae Aulenti
AI: When did Verga get into the vintage watch market?
FV: We started vintage two years ago with a new company called @Verga Vintage, but my dad and my grandfather started vintage about 20 years ago. So, we have a lot of vintage watches. It’s going very well; a lot of customers who were previously bought new watches are now buying vintage watches. They have the assurance that we sell quality vintage watches and have a lot of experience doing so. We also have a lot of repairmen who can repair vintage watches, something critical for this segment.
AI: In Milan, what is the relationship like between different retailers? Do you know each other? Is it more of an atmosphere of collaboration or competition?
FV: In Milan there are a lot of watch retailer but we all know each other and we have a very good relationship. Not only in Milan but in all of Italy, I know a lot of people that have shops like ours and there is a lot of friendship.
AI: How do you see the prospects for the watch industry going forward?
FV: The watch world will continue, I saw the last auction at Phillips this weekend in Geneva, it went so well. I thought that in this period of COVID it wouldn’t go as well but it did so I’m very happy. I also think that for new and vintage watches the market will continue to do well in this period and it will continue growing.
Thank you for participating, Federico.