Fillippo Loreti has returned to Kickstarter for its third campaign. Founded in 2014, when
brothers Danielius and Matas Jakutis were researching the luxury watch market with the goal of revolutionizing the luxury industry by offering high-quality luxury products at affordable prices. The believe that a luxury watch doesn’t have to be expensive to be both beautiful and dependable. Many luxury watches were (and still are) being sold at a 4,000% markup. In 2015, the brothers launched a Kickstarter that raised €926,960. Their second campaign initiated last November raised over $200,000 in the first 24 hours, securing €4,809,548, reportedly breaking the record for the world’s most-funded watch campaign.
[clickToTweet tweet=”Still time! @FLwatches 3rd @kickstarter campaign cofounders Q&A @crowdfundinside” quote=” ‘Our modern perspective on what millennials actually want is a huge advantage for us over traditional luxury brands,’ Matas Jakutis explained.”]
The Jakutis brothers are members of a rising generation of millennial entrepreneurs who are eager to take risks and break age-old industry rules. They find themselves to be in a perfect position to understand what their peers actually expect of luxury products.
“Our generation is interested in engaging with product development. Our modern perspective on what millennials actually want is a huge advantage for us over traditional luxury brands,” Matas Jakutis explained.
At this writing the third Kickstarter campaign has raised over €4,809,548 from more than 18,550 backers, already selling out their Early Bird €139 watch. Over 11,169 backers have opted for the €149 limited edition model which is €150 off future retail price (€299) and includes free shipping.
There are over 8,800 comments on the Kickstarter page with much attention focused on slow delivery — if delivered– of their second campaign’s watch. Some expected to be showing off their watches by last spring and are still waiting for their packages to be delivered:
“Ok… this is ridiculous. Almost a year later and I still haven’t got my watch. This obviously doesn’t stop you from launching a new campaign. This is a joke,” wrote backer Gustav Brandström. “Please don’t bother sending me a watch, just give me a full refund and send my watch to a new backer, maybe that can help you get your first delivery on time.”
Other backers have complained about “manufacturing defect with the timepiece’s crown” after seldom being worn. Obviously watches should be able to be worn without breaking.
But many backers have also praised their watches:
“For anyone who wants to support the 3rd Campaign rest assured that you will receive a beautiful watch. I have 5 models and love them all!” commented David Valaskovic.
The creators are trying to address issues via the comment and update boards, but it is not clear how many watches are broken and have not yet been delivered. Crowdfund Insider just contacted Fillippo Loreti regarding these issues and will publish updates as soon as possible.
Before these concerns were known, I reached out to Fillippo Loreti cofounders Danielius and Matas Jakutis regarding their decision to return to Kickstarter. Their replies follow:
Erin: After raising more than Why utilize Kickstarter not not equity crowdfunding?
Danielius Jakutis: Filippo Loreti is building a new generation of watch lovers by creating experiences that form emotional connections with their customers. We try to create out of our own inspiration and then listen to customers. Kickstarter is a great way to communicate with our community directly – without any middle-men – and understand what people really love.
In this way, they take on a test-and-learn approach that looks more like that of a Silicon Valley tech company than a traditional watch company. Tech companies like Tesla or Apple take an iterative approach to their design, releasing products to the public that they then learn from and improve upon to constantly refine the customer’s experience. Filippo Loreti is changing the way people shop for luxury watches by involving their customers in the design process.
We want to use tech, both in our products and our communication, to empower our consumers. The more we understand what their individual needs are, the better our products can become.
Erin: What are your plans for growth?
Danielius and Matas Jakutis: We plan to further develop our e-commerce strategy and enter new markets. We are also actively working on building our VIP customers’ community with special offers and services yet to be revealed. In addition to this, we are going to present our customers with the personalised presentation of the product – a service that most of the luxury brands still struggle to implement. One of our focal points is our customer service making sure that the whole Filippo Loreti ‘experience’ is enjoyable and smooth rather than a simple process of buying a product you want online.
Erin: What were some problems experienced in the first campaign that were rectified in the second? What else have you done differently?
Danielius and Matas Jakutis: The main problem Filippo Loreti had to face was the unexpectedly great support from backers during the first campaigns. (If you can say that this is a problem, of course!). Due to a huge demand, there were delays in delivery time which we learned a lot from. Now we have discussed the possible improvements in the process with our manufacturing partners. Also, we have just presented our current 3rd campaign backers a Christmas special – Christmas Delivery for one of the most popular series in the collection – the Venice Moonphase. Our backers can simply add an additional €50 to their pledge and let our watchmakers craft their Venice Moonphase timepieces so they can gift them to their loved ones this holiday season.
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