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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

Cover Story

Carl F. Bucherer takes it up a gear

WATCH BUSINESS MAGAZINE EUROPEAN EDITION N°329 1/15 FEB./MARCH 02

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770014 260004

CHF12 / €10 / US$12

A YEAR OF CONTRASTS

Geneva Week – SIHH special reports The paradoxes of independence (Part I) After-sales service: a ticking time bomb?

Unique, the finely hand embroidered dials by the Maison Lesage offer an invitation to voyage through the intimate world of Gabrielle Chanel. Fine pearls, gold paillons and gold coated silk threads combine MÊtiers d’Art excellence and the refinement of Haute Couture.

18K yellow gold set with 60 diamonds (~1 carat).

THE CHANEL MOMENT

www.chanel.com

CONTENTS

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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE

EDITORIAL 8

Confusion reigns...

COVER STORY

MANERO POWERRESERVE

by Carl F. Bucherer Ref. 00.10912.03.13.01 Classic design meets technical know-how.

With an integrated power reserve indication and the high-precision CFB A1011 Manufacture caliber, the Manero PowerReserve from the Lucerne-based watch brand Carl F. Bucherer combines high functionality and sophisticated technology – indicating at all times the power remaining.

Bucherer AG Carl F. Bucherer Langensandstrasse 27 CH-6002 Luzern Switzerland Tel. + 41 41 369 70 70 Fax:+ 41 41 369 70 72 www.carl-f-bucherer.com

10

Carl F. Bucherer takes it up a gear

14

SIGNALS GENEVA WEEK - SIHH

16

Through the hushed aisles of the SIHH

27

An introductory stroll in and around the SIHH

36

Flotilla in Geneva Harbour

16 GENEVA WEEK

INDEPENDENTS (PART I) 46

Introduction: The paradoxes of independence

48

Haute Horlogerie – when independents join forces: Kari Voutilainen, Antoine Preziuso, Vincent Calabrese, Vianney Halter, Amarildo Pilo

52

Case studies: Vogard, Marvin, Celsius X VI II

46 INDEPENDENTS

BUSINESS 40

The most popular watch executives on the web

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China, Swiss watchmaking at a crossroads RETAILER PROFILE

60

58 BUSINESS

“Italy is still alive!”

DISTRIBUTION After-sales service: a ticking time bomb?

LAKIN@LARGE

66

62 DISTRIBUTION 61

An oh so yummy SIHH SPOTLIGHTS

43

Casio: G-Shock MR-G – G is for Gamechanger

56

Francéclat: French watches and clocks at Baselworld

The statements and opinions expressed in this publication are those of the authors and not necessarily Europa Star.

www.worldwatchreport.com / www.digital-luxury.com

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6 | CONTENTS | europa star

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POWERED BY SOLAR ENERGY TI S S OT T-TOUC H E X P E RT S O L A R . TAC T IL E WAT C H P OW E R E D BY S O LA R E N E R G Y, O F F E R I N G 2 0 F U N C T I O N S I N C L U D I N G W E AT H E R F O R E C A S T, ALT I MET ER AN D C OM PAS S. IN N OVATO RS BY T R A D I T IO N .

T- TO U CH . CO M

EDITORIAL

REIGNS...

by Pierre Maillard Editor-in-chief

8 | EDITORIAL | europa star

Relativity by M. C. Escher (1953)

T

here is a vague feeling that we are at a turning point, that we’re coming to the end of something, and have little idea what lies around the corner...

Uncertainty reigns, gathers in pockets, doing little to define the new landscape whose outlines are just visible through the haze. What lies ahead for watchmaking? Everything jumbles together, only adding to the confusion. There’s China, the El Dorado of luxury, whose star is waning under the growing pressure of the anti-extravagance campaign, and Russia, whose struggling economy has lost billions. There is also the indeterminate threat from a certain well-known ‘fruit’ company (whose market capitalisation, you may be interested to know, is 700 billion dollars, or the equivalent of 30 years’ Swiss watch exports at 2014 levels), which begs the question: will the Apple Watch sweep everything before it, or will it leave something behind? Then there is Switzerland itself, which also finds itself at a crossroads. Not only is its currency taking the executive elevator to the top floor, but with the end of banking secrecy, and international scandals such as the HSBC SwissLeaks affair further tarnishing its reputation, the insolent prosperity of this small nation is gradually being undermined. Where we’ll find the answers to these open questions is anybody’s guess. Things are all over the place, it seems. After two decades of relentless upscaling and brazen pricing, the industry is asking itself: can we carry on like this, targeting just the 1% of the

world’s population that controls 50% of its wealth?

Some have chosen to follow a different strategy. TAG Heuer, for instance, has put the brakes on its Haute Horlogerie and chosen to focus on ‘affordable’ products for young people. There are more examples, more symptoms: at the recent SIHH everyone noted that the Richemont group’s only mid-range brand, Baume & Mercier, finally seems to have the wind in its sails. Moreover, the efforts made by Jérôme Lambert at Montblanc to offer moderately priced complications were enthusiastically welcomed.

After the frenzy of escalation the tide appears to be turning, and a fresh current of modesty is on its way in.

Of course, there are still plenty of bulky, muscle-bound watches around, complications continue to pile up and you can’t move for tourbillons, but there is a vague feeling that we’re starting to get a little tired of it all. In the manufactures, people are wondering whether a little moderation would not be a good thing. Quite clearly, the paradigm is changing. A new era beckons, and watchmaking will adapt or die.

Europa Star has been an interested observer since 1927, and has seen and lived through its fair share of ‘historic turning points’! History teaches us that danger has always come from the threat of technological advantage. But whether this is streamlined production in the USA, or quartz from Asia, as in the past, or today’s spectre of the smartwatch, in every case the Swiss watchmaking industry has found a way to retain or regain its pre-eminent position.

And yet again, it looks like the way forward will lie in finding a new way to ‘democratise’ the Swiss made watch, to offer unbeatable value in every respect.

And this may well be the greatest challenge, in the global economy we now inhabit. p

Discover the adventurer in you SEASCOPER

www.titoni.ch

COVER STORY

CARL F. BUCHERER With the help of its five collections, all with their own distinct identity, the Swiss brand has grown spectacularly since 2010. And, given the extent of its distribution network, it has no intention of resting on its laurels, but plans to continue on this successful path.

by Serge Maillard

T Sascha Moeri

10 | COVER STORY | europa star

here are very few watchmaking brands today that can look back on a history of more than 125 years of watchmaking and jewellery expertise, and at the same time look forward to a bright future as an independent watch manufacturer. Carl F. Bucherer is one of them, a strong Lucerne-based company in the hands of the family’s third generation, namely Mr. Jörg G. Bucherer.

The traditional Swiss brand produces five clearly delimited lines, all of which take their names from Latin: Patravi (I have achieved), Manero (that which is led by the hand), Adamavi (falling in love), Pathos (dedicated to passion) and Alacria (enthusiasm and zest for life).

CEO Sascha Moeri blew in like a whirlwind in 2010, and breathed new life into the centenarian firm. In fact, the Bucherer group has been making watches for a very long time. Its first timepieces date back to 1919, when the first Art Déco ladies watch collection was launched. But it was not until the turn of the millennium, in 2001, that the watchmaking division was repositioned under the name of Carl F. Bucherer, a reference of the group’s founder.

“When I arrived, Mr. Bucherer gave me two main tasks: to further grow the watchmaking brand, and to improve its

profitability,” recalls Sascha Moeri. Although the network of shops remained the group’s primary activity, it was hoping to diversify even more strongly into a second area: watch manufacture. As the old saying goes: don’t put all your eggs in one basket. The expression is particularly relevant in these times of exchange rate fluctuations!

SPECTACULAR GROWTH With his extensive experience in the industry, Sascha Moeri quickly set to work and focused on three elements: giving the collections a clean profile, re-evaluating pricing, and expanding its distribution networks worldwide. The efforts paid off.

Between 2009 and 2014 production and sales grew from 6,500 to 20,000 pieces per year. This year, the company intends to increase production even further, by around 5,000 watches.

“We are one of the few brands that have the potential to establish themselves worldwide. “ According to the CEO, the growth spurt is not over, despite a rather sensitive situation in the Swiss watch industry. “We’ve reached a very interesting stage in our development: I’m convinced that we are one of the few brands that have the potential to establish themselves worldwide. Our company has still not reached its limits.” The great strength of Carl F. Bucherer, which already has a presence in 350 points of sale in more than 25 markets across the world, lies in the quality of its distribution networks. In addition to its parent company in Europe, it can count on its own distribution subsidiaries in China, Hong Kong, Taiwan, Japan and the US, as well as on the best and finest distribution and retail partners worldwide.

“We have developed a good balance between our distribution partners and our own networks.”

I MANERO POWERRESERVE and MANERO TOURBILLON

STRONG PORTFOLIO Each of the five collections has its own distinct and individual identity. Recognisable stylistic codes and a clear message speak directly to consumers with a wide variety of profiles.

The Patravi models, rather bold and sporty watches with a contemporary flair that make up the majority of sales, are particularly popular in Russia, the United States and the Middle East. The Manero line with its more classic models and in-house movements is on the rise. With a strong following in Asia and Europe, today it accounts for a quarter of sales. The even more understated Adamavi follows closely on its heels. Women, who make up almost half of the brand’s clients, are equally well served. The Alacria and the newly launched Pathos collections draw not only from the brand’s long-established jewellery expertise, but also from its rich experience in material and technical innovation.

“Over recent years we have focused on the product. It is the basis of our success, the watch is still the hero,” continues Sascha Moeri. Matching this mindset, Carl F. Bucherer has

developed its own line of in-house calibres, drawn from its patented calibre CFB A1000. Driven by a peripheral oscillating weight, they equip a number of the firm’s watches.

“Today, you can pick up a model with an in-house calibre for as little as 8,000 francs!” In order to continue to offer an entry price of 3,000 francs across an output that is almost exclusively automatic or manual – only the jewellery watch collection Alacria and some Pathos models run on quartz – the brand also sources movements from external suppliers.

Last year the brand launched its first tourbillon in the Manero collection in a limited edition of 188 pieces, a reference to 1888, the year the group was founded. An aperture in the dial at 6 o’clock displays the result. In the centre, a hand indicates the date, whose figures change orientation at 3 and 9 o’clock for instant readability. It is worth noting that this model’s power reserve, also visible on the dial, is a generous 70 hours. Finally, the dial features a 24-hour indicator at 12 o’clock. In an 18-karat rose gold case, this watch comes in at 99,800 francs. u

MODELS TO WATCH OUT FOR As 2015 gets under way and Baselworld approaches, there are new watch models to watch out for. First, a new model of the Manero PowerReserve, now available in gold with a black and white dial, will be presented at Baselworld. A hand indicates the power remaining on a semi-circular display at 3 o’clock. In addition to this feature, which gives this model its distinctive character, the watch also has a day aperture at 9 o’clock, large date at 11 o’clock and integrated small seconds at 6 o’clock. It is worth noting that 70% of the timepiece’s components are manufactured in-house. At its heart beats the manufacture calibre CFB A1011, appearing for the first time in a Manero model. Price: 9,400 francs in steel, 21,500 in gold. As the brand notes, “the functionality and design of the power reserve indication are perfectly combined” in the striking face of the Manero PowerReserve. What more is there to say? It’s clear, clean and effective.

I PATRAVI SCUBATEC DIVE WATCH

The Patravi ScubaTec dive watch, launched in 2013, is responsible for an important part of the brand’s recent success.

This model, which is water resistant to 500 metres, is now available with a case in daring red gold, priced at 23,700 francs. Equipped with a manufacture CFB 1950.1 movement, a chronometer and a 38-hour power reserve, it bears eloquent witness to the brand’s diversity. Also worth keeping an eye on is the Patravi TravelTec and the Pathos collections – some surprising innovations not to be missed!

DEVELOPING MARKETS

RED CARPET PRESENCE

“Today our five collections are well established,” confirms Sascha Moeri. The next step is now to further push the brand’s global presence. “We are growing rapidly, but reasonably and in proportion to our capacity. With a team of 160 we have already accomplished a lot, yet we still have significant room for growth.”

Who are the brand’s biggest clients? Asian consumers, whether they buy in Asia or elsewhere in the world. “2014 was a good year for us, both in Europe and in the United States,” notes Sascha Moeri. For him, the challenge of the strong franc, which will mean raising prices by an average of 8% across Europe, is not insurmountable. “It will require some rebalancing. However, I am very positive about our brand. If we could have produced 30,000 watches last year, we would have sold them.”

To increase recognition, Carl F. Bucherer can count on a number of watch aficionados such as Arnold Schwarzenegger, Sylvester Stallone, Joe Mantegna and Keanu Reeves. Even though they are not official ambassadors, the celebrities’ loyalty is evidence of their genuine admiration for the brand.

The brand also supported the Swiss Football Association in 2014 with a dedicated model for all members of the team that played in the World Cup in Brazil. It has also entered into partnership with the Swiss luxury ski brand Zai. However, the most important ambassador remains Mr. Jörg G. Bucherer himself, who proudly favours the Manero Tourbillon model.

“With his grandfather’s name on the dial, we have a tangible link to tradition and refuse to compromise on quality!” p

I ALACRIA ROYALROSE and PATHOS DIVA JOAILLERIE

Discover more at www.europastar.BIZ/Carl-F-Bucherer

europa star | COVER STORY | 13

SIGNALS

Outer space Jaeger-LeCoultre has introduced a new meteorite dial to its Master Calendar timepiece, making it the first dress watch to be truly from outer space! The material used to make the dials is sourced from a meteorite that came from an asteroid belt between Jupiter and Mars.

(Hauteliving.com)

SIHH The Salon International de la Haute Horlogerie kicked off the year of luxury watch trade shows in Geneva in January. The SIHH welcomed 14,500 trade visitors and members of the press, representing a 4% increase from the previous year. (www.sihh.org)

Ultra thin

8,888

In denial

Some independent watch brands were featured at the all new Swiss Independent Watchmaking Pavilion during the 2015 edition of the SIHH in Geneva. The cost of their participation in individual booths was set at CHF 8,888, a figure chosen because the number 8 is considered to be lucky in China. (Financial Times)

It appears that the Swiss watch industry has underestimated the impact of smartwatches. According to Reid Sherard, the lead watch and jewellery researcher at New York’s L2, a market research firm, how Swiss watch executives have reacted to the Apple Watch “is a classic example of people in denial”.

(New York Times)

5%

Slow growth

Between January and November of 2014, the Swiss watch industry grew by 2.3% compared to the same period in 2013, with exports totalling 19.7 billion Swiss francs. However, it represents slow growth compared to the average annual expansion of 17% in the three years leading up to 2012. (New York Times) 14 | SIGNALS | europa star

The world’s slimmest automatic split-second chronograph belongs to Vacheron Constantin. Its Harmony Ultra Thin Grand Complication Chronograph measures just 8.4 mm, but the Calibre 3500 housed inside is only 5.2 mm thick! (Forbes)

Swatch U-turn

Swatch Group CEO Nicolas Hayek was initially skeptical of smartwatches.

He once stated that Swatch luxury brands such as Blancpain were “smartwatches” because “they make you look smart.”

The brand has now taken a U-turn and plans to release its own smartwatch within three months, coinciding with the debut of the Apple Watch. (Bloomberg)

Amidst the rising value of the Swiss Franc (CHF) compared to the Euro, it appears that brands will be absorbing the increase in prices.

As a result, the Richemont group will reportedly increase its prices by up to 5% across the board in the Eurozone.

(Forbes)

Noiseless movement A group of Swiss researchers have developed a unidirectional continuous oscillator which could revolutionise the mechanical basis of watches that has existed for centuries. The so-called IsoSpring is a noiseless movement that will eliminate the ticking of watches, while also being more precise than current timepieces. (phys.org)

Emotion

Wearables for women

According to Daniel Riedo, chief executive of JaegerAccording to market research firm ants to LeCoultre, the company wants NPD Group, 25% of men are be moree accessible to the public and interested in purchasing a smartwatch, focus on the ‘emotion’ of its watches. against about 18% of women. However “We are a house with such a long wearables for women are diverse and history and such a deep technical In decline include three broad categories: smart expertise. And now we want every2014 ended in decline for bracelets that tell the time; feminine body to experience that without the Swiss watch industry, with digital watches; and analogue feeling intimidated,” Riedo the value of exports of Swiss watches watches with some smart said. (Live Mint) down 2.5% in December 2014 comfunctionality. (New York pared to the previous year. Exports were Times)

Dropping sales According to Luca Scola, analyst at Exane BNP Paribas, the Swatch Group is particularly vulnerable in 2015 and 2016.

With its emphasis on low- and mid-range brands competing with smartwatches, Scola projects dropping sales for the Swatch Group: as much as 10% for its entry-level Swatch brand and 5% for its midrange brands like Tissot and Mido.

(Wall Street Journal)

buoyed by watches costing less than 200 Swiss francs, representing an increase of 14%, while timepieces costing over 500 Swiss francs fell steeply.

(Federation of the Swiss Watch Industry FH)

Average watch cost The average cost of a Swiss watch is $739, while the average cost of a Chinese watch is only $3! (Statistic Brain)

Interactivity The new Guess Connect smartwatch allows users to customise specific vibration patterns to different messaging, calling and social media alerts. It also houses a microphone which provides improved interactivity by allowing for voice commands and dictation.

(Wearable)

Pilot’s dream

Richard Mille has introduced a new $1.1 million chronograph called the Tourbillon RM 039 Aviation E6-B Flyback. With nearly 1,000 parts, the complex watch is a pilot’s dream: it can calculate fuel burn, flight time, ground speed and even measure altitude.

It can also tell the time.

(Wall Street Journal)

Global Luxury Watch Index: Haute Horlogerie Focus Producer of the WorldWatchReport™ – the leading market research in the luxury watch industry – DLG Intelligence is the authority in measuring, analysing and forecasting desirability globally. By analysing over 600,000 relevant online searches made daily for 18 Haute Horlogerie brands in 20 markets, the Global Luxury Watch Index – Haute Horlogerie Focus gives the decision makers an indication of the desirability of the watch industry over time.

Fastest growing Haute Horlogerie brands The brands that have seen the biggest rise in interest compared to a year ago are: Blancpain, Richard Mille and Patek Philippe.

“Worldwide consumer interest for Haute Horlogerie brands is continuing to grow for the fifth year in a row. People love exclusive timepieces and Haute Horlogerie products are considered as long term investments.”

David Sadigh, Digital Luxury Group Ϯϱй ϮϬй ϭϱй ϭϬй ϱй Ϭй

+22% Y/Y Aug-Sept-Oct. 2014 vs.

Aug-Sept-Oct. 2013

Blancpain Richard Mille Patek Philippe A. Lange & Söhne Audemars Piguet Vacheron Constantin

+45% +29% +29% +28% +26% +25%

HAUTE HORLOGERIE +12% Ulysse Nardin +19% Jaeger-LeCoultre +15% Girard-Perregaux +7% Breguet +5% Franck Muller +2% Baume & Mercier +1%

GENEVA WEEK – SIHH

THROUGH THE HUSHED

by Pierre Maillard

SUNDAY 18 JANUARY, 4 P.M., IN A LOUNGE OF THE HÔTEL DES BERGUES...

It’s a glorious day. The air is crisp, the Pont du Mont-Blanc is lined with the white flags of the SIHH, and the powers that be at Geneva’s City Hall have turned on the tap of the Jet d’Eau, which cascades down elegantly into the green waters of the lake. In front of the Hôtel des Bergues (which for the past few seasons has also sported an international Four Seasons label) limousines jockey for position. The SIHH opens tomorrow.

The only blot on this idyllic landscape: just three days ago, the Swiss National Bank announced that it was removing the ceiling on the Swiss franc to euro exchange rate. The effect was immediate: the price of Swiss watches jumped 20 to 25% from one moment to the next. “A tsunami for Swiss industry,” spluttered Nick Hayek in Biel. What will happen?

What strategies will the groups and big brands settle upon?

Will they cut their margins or pass on the costs? It’s the elephant in the room, but the huddle of people heading for the salon where Christophe Claret is about to present his Aventicum is keen to put this burning issue out of their minds for a moment, and take refuge in antiquity.

2000 years ago, Avenches was the capital of Roman Helvetia.

It was to remain so for 300 years. During this period the Romans undertook some major construction works, including an amphitheatre that remains in very good condition today. An amazing hydraulic organ was also discovered there, bearing testimony to the opulence of the city, which was destroyed in 258 A.D. by the Alamanni hordes.

In 1939 a treasure of rare splendour was discovered in a drain: a perfectly preserved gold bust of emperor Marcus Aurelius.

Reduced to a height of just 2.8 mm, it now presides over

I AVENTICUM by Christophe Claret

the centre of the Aventicum watch. Placed in the exact centre of a minuscule mirror in the form of an inverted dome, the microscopic bust carved from gold appears to thrust out from the bottom of the dial. But it is a holograph: the bust is topped with a second parabolic mirror with a hole in the centre, which generates the optical illusion. The light waves reflected off the bust are magnified, making the holographic bust appear almost twice its actual size. This magical effect, which is sometimes used in children’s toys, is called a mirascope. But achieving such miniaturisation was anything but

u 16 | GENEVA WEEK – SIHH | europa star

child’s play. “It requires cutting-edge and meticulous construction techniques, as the effect cannot work unless the two minuscule mirrors are precisely curved. At that size, it really matters,” explains Christophe Claret.

Step by step, the watchmaker is clearing land hitherto largely unexplored, that of playful Haute Horlogerie. After his delicious Margot with its falling petals, and the occasional foray into poker and roulette, Christophe Claret is off playing again.

He just can’t help himself. The back of the Aventicum features an oscillating weight in transparent sapphire1, which bears five numbered Gallo-Roman racing chariots. A flick of the wrist sends them racing around, and the chariot that stops over the letter ‘A’ in ‘Aurèle’ is the winner.

This playful object, 120 of which will be made each year, costs CHF 49,000 or, at today’s rates, 49,000 euros. At this price level, exchange rate fluctuations certainly seem less of an issue... A factor we came to appreciate as the week went on.

7 P.M., NEAR THE AIRPORT While the Aventicum’s chariots race, the roulette wheels are spinning at the Geneva Casino, next door to the airport, and consequently, to the SIHH. A flash of the credentials and I’m crossing a room filled with solitary punters mechanically feeding coins into slot machines; up a flight of steps, I arrive at a more elegant salon with large gaming tables. Look left, look right, and there is the SIWP, as the Swiss Independent Watch Pavilion is somewhat inelegantly known.

The brainchild of the dynamic Amarildo Pilo (Pilo & Cie), this new exhibition hall brings together some of the leading lights of independence: small but excellent watchmakers. It probably has more winners of the Grand Prix d’Horlogerie de Genève per square metre than anywhere else in the world.

Kari Voutilainen, Vincent Calabrese, Vianney Halter, Ludovic Ballouard, Emmanuel Bouchet, Peter Tanisman and others are here, manning their booths. Antoine Preziuso, his triple tour-

I The magnificent Bâtiment des Forces Motrices

billon in hand, celebrates his return to watchmaking after a pause for reflection. “Live happy, live small!” he enjoins, as a saxophonist invited to animate the opening launches into a riff, and the first champagne corks of the week are popped.

How will the week go? At least one person here is not the least bit worried. Kari Voutilainen, like his friend Preziuso, is keen to stay small. “I get by, and I do quite well. I produce 50 watches per year with 17 staff. I make practically everything myself. The majority of it goes in direct sales. As I rarely travel, my clients come to me. That’s the key: do everything yourself. But be careful: you have to have the courage of your convictions.” Wise words, but not everyone concurs. Some have different concerns.

[For more on the SIWP, see the round table for independents, organised for the occasion by Europa Star Première.]

8.30 P.M., BY THE RHONE To celebrate the 20th anniversary of the SIHH, the CEOs receive their guests in style at the magnificent Bâtiment des Forces Motrices, now an annex to the Grand Theatre, Geneva’s opera house. Against the post-industrial backdrop, guests in evening dress greet each other with a handshake or a kiss on the cheek, press toward the Best Workers of France, who man the buffet, or signal for the World’s Best Sommelier to come and suggest some wines. “Swiss franc... euro... dollar...” the words jump out above the laughter and the general hubbub, but that’s not really what they’re talking about. Clearly, no one has a clue what to think. Rumours are making the rounds: so-and-so has decided to put his prices up by 15% with immediate effect; another is offering handsome discounts; and a third swears he won’t budge an inch.

So let us move on. “Good evening! How are you?” But it wouldn’t do to stay up too late; another Geneva Week starts in the morning.

1

18 | GENEVA WEEK – SIHH | europa star

Reproduced under license from a patent registered by Vianney Halter

MORNING ROUTINE Monday morning. It’s 8.30, and an elegant and orderly crowd waits to pass through security. For those who have travelled from distant shores, it is just one more in an endless series of security gates. This latter-day ritual completed, we are admitted to the inner sanctum, to the familiar muted palette and tasteful upholstery of the SIHH. But relaxation is not on the agenda: first up is A. Lange & Söhne.

There’s nothing like a hefty dose of Germanic engineering to wake you up on a Monday morning. Today it takes the form of the Zeitwerk Minute Repeater, “A modern interpretation of the decimal minute repeater with digital display,” so we are told.

It’s a bold wager. Launched several years ago, the Zeitwerk was the first Haute Horlogerie digital watch, the first to feature a jumping numerals display. This original Zeitwerk, with its three discs – one for hours, one for minutes and one for tens of minutes – comes equipped with a Minute Repeater. The two hammers in black-polished steel are conspicuously located under the hours and minutes apertures and, unusually, strike not outwards but inwards. The gong, which is also visible, is not circular but follows the contours of the apertures and small seconds dial.

There are three different sensors – three snails connected to the display mechanism – which detect the time to be indicated with an audible signal: a low tone for full hours, a double tone for ten-minute intervals and a higher tone for the minutes.

Consequently, the minute repeater sounds not the quarterhours, but every ten minutes, a rarity in itself. And – it is also the only minute repeater that strikes exactly the time indicated on the digital display! Its constant force movement, comprising 771 components, has been thought out down to the smallest detail. Thus, the repeater takes precedence over the time display: if the repeater is activated just before the display is due to jump, the discs remain stationary until the chime has finished ringing. Another detail: the repeater cannot be activated if the power reserve shows less than 12 hours (from a total of 36), to ensure that the repeater function is not compromised. A red dot on the power reserve indicator serves as a warning. There is much more one could say about the meticulous detailing of this exceptional watch, whose face retains the typical Saxon understatement and simplicity. The only downside is the price: 440,000 euros, in platinum! Clearly, at this price point, exchange rate concerns seem somewhat irrelevant. But, if you are absolutely determined to own an A. Lange & Söhne – which is completely understandable – you can always go for one of the other 12 watches in the 2015 collection. Beginning with the Lange One and its instantaneous jumping Big Date, which has had a successful facelift, and is available for EUR 29,800 in red or rose gold. u T ZEITWERK MINUTE REPEATER by A. Lange & Söhne

europa star | GENEVA WEEK – SIHH | 19

GOOD NEWS FROM BAUME & MERCIER

PORTUGIESER CELEBRATES 75 YEARS While IWC is ever attentive to the design of its booth, which changes from year to year, and is a dab hand at securing the presence of luminaries and A-list celebrities to its sumptuous parties, the Schaffhausen firm is less adept at running press conferences, whose monotony regularly puts one in a state of torpor reminiscent of Friday afternoon geography lessons. This is a shame, as the big push set in motion for the Portuguese watch deserves better than such a dreary presentation. By the look of things, IWC has decided to make a statement in movement and complication design: three new base calibres are planned by 2017, and a new factory is scheduled for completion next year. The new family of calibres is called the 52000, and already equips several models in the Portuguese collection: the 52800 graces a new Portugieser Annual Calendar, with its three discs to display the month, date and day; the 59215 drives the classic and pared-down Portugieser HandWound Eight Days Edition ‘75th Anniversary’ with its 1940s styling; and the 51900 is to be found inside the Portugieser Tourbillon Mystère Chronograph. The other models in the collection, which includes six improved versions, will be gradually equipped with the new calibres over the coming year.

Aesthetically, the makeover has injected the new range of Portuguese watches with a becoming flush of youth. While the design remains virtually unchanged, the subtle graphic and aesthetic details bring some welcome new touches. The new arched-edge front glass makes the watches appear slimmer, and the curved and narrowed lugs provide greater comfort in wear, further enhanced by luxurious alligator straps made by Italian shoe manufacturer Santoni.

It’s possible that some of its Mediterranean flair has rubbed off on IWC, which nevertheless continues to apply its customary Teutonic rigour to the engineering.

I PORTUGIESER HAND-WOUND EIGHT DAYS ‘75TH ANNIVERSARY’ by IWC

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Baume & Mercier CEO Alain Zimmermann, on top form, introduces the 2015 range of the Richemont group’s only mid-range brand. In fact, he prefers the term ‘affordable’, and emphasises the ‘back to basics’ approach of his brand, which celebrates its 185th anniversary this year.

In the past, the Geneva house has had trouble finding its niche, and its products suffered as result. Now, things appear to have turned a corner, with a new strategy organised around the Classima collection, a range that Alain Zimmermann admits has “never really been supported, but it’s back now.”

The strategy is focused around the idea of celebration, whether earning a diploma, getting a job or commemorating a special anniversary. Targeting young people primarily, Baume & Mercier has established a strong network of partnerships with an impressive number of prestigious universities and technology institutes around the world. Joint activities include workshops, curriculum involvement and introductions to watchmaking. But it’s the product itself that has made the greatest progress. Classima remains a simple, classic, automatic watch, but some special touches have moved its design forward very convincingly.

T CLASSIMA MOON PHASE by Baume & Mercier

I PROMESSE by Baume & Mercier

The four new pieces in the 40 mm Classima Homme range, available in steel or two-tone versions, sport sleek lines and have a line guilloché dial centre, with a date aperture at 3 o’clock. A sapphire back reveals the automatic mechanical movement. The price, with a metal bracelet that is perfectly fitted to the case, is €2,150, or, in alligator with a triple folding clasp and security push buttons, €1,950. A bargain at twice the price.

The Classima is also available in a 36.5 mm ladies’ version with a quartz movement. The stunning precision moon phase model (29.5 days), set with a sprinkling of diamonds and fitted with a blue alligator strap, also goes for €1,950.

But Baume & Mercier’s offensive doesn’t stop there. In addition to the new men’s Clifton series (43 mm with big date aperture at 12 o’clock and power reserve indicator at 6 o’clock

– €3,400), and the rectangular Hampton automatics with their elegant design (cutaways to lighten the case, ribbing, blued steel sword hands – €2,200), a particular effort has been made with women. The new Promesse collection certainly lives up to its name. The sunburst guilloché dial makes it shine, but it is the subtle play between the round case and oval mother-of-pearl bezel that imbues this watch so successfully with a touch of the opulent. Asked about the consequences of the rise in the Swiss franc, which is logically more of a problem at this price level, Alain Zimmerman said he would talk about it after the SIHH. Who can blame him.

UNSINKABLE PANERAI Panerai is, in a way, the Rolex of the Richemont group. Not so much because of its turnover (in this respect, the Genevabased mammoth defies comparison) but for its propensity to stick to its own stylistic codes, incessantly working and reworking the same shapes. This year the new models play with the highly recognisable Luminor (the first military dive watch, dating back to 1936) and the Radiomir (1940). The result is the Luminor Submersible line, the Radiomir or Luminor Time Equation, and the Mare Nostrum, inspired by a 1943 prototype that never went into production. u T LUMINOR SUBMERSIBLE 1950 CARBOTECHTM and MARE NOSTRUM TITANIO by Panerai

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This year’s exercise is thoroughly convincing, for those who appreciate the robust and yet elegant style of Panerai. The Luminor Submersible 1950, a solid 47 mm in diameter, mounted on a rubber strap, houses an automatic chronograph movement with flyback function: the P.9100, the first automatic chronograph movement developed and produced by the Panerai manufacture in Neuchâtel. Two models are available with a choice of black ceramic or titanium rotating bezel that clicks at minute intervals; the exceptionally readable dial is enhanced with blue and green Superluminova for better legibility under diving conditions (to 300 metres).

Five hundred pieces are on sale at €14,200 which, R&D Director Frank Stalder notes, is the ‘spot price’. “It could go up or down, it depends, we don’t really know...” But the highlight is probably the Luminor Submersible 1950 Carbotech™. In 2010 it was all about bronze; now, it’s the turn of Carbotech™. This composite material formed of parallel sheets of compressed carbon fibre produces a dense, very strong, corrosion-proof and light (three times lighter than titanium) material, with a subtly striated matte black appearance. This technological innovation aside, the rest is 100% unadulterated Panerai. Mounted on a rubber strap, the watch has undeniable sex appeal. Another fascinating watch is the Mare Nostrum. Originally developed in 1943

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I HARMONY TOURBILLON CHRONOGRAPH by Vacheron Constantin

for officers of the Italian Royal Navy, only one or two prototypes of this model remain in existence. They were used as the basis for the creation of an almost identical reproduction, this time in titanium. A classic chronograph with two push-buttons, today’s model features a tobacco brown dial and is supplied with a topstitched brown calfskin strap. It is produced as a collector’s edition of 150 units (latest price around €37,000).

INTERPLAY OF SHAPES AND LIGHT For its 260th birthday the venerable Vacheron Constantin manufacture is promoting its talents as a ‘horological sculptor’. This exercise, which owes more to Brancusi than to Tinguely, has resulted in the new Harmony line.

Like many others, Vacheron Constantin has also plundered its archives for inspiration, looking to one of its original bracelet chronographs dating from 1928. The result is a multifaceted case of subtly sleek lines and curves that play beautifully with light. Like a cambered square, its curved cushion case provides a wide 1920s-inspired dial opening with leaf-type hands and blue numerals.

There are seven watches in the first wave of the Harmony series: three monopusher chronographs – the world’s slimmest flyback automatic at just 5.20 mm deep, a tourbillon model and one with a pulsometric scale – a ladies’ chronograph with double pusher, and three dual-time models including one for women. We will no doubt be coming back to this collection, which certainly lives up to its name. Some observers complain that there was ‘nothing really new’ at this SIHH. The expertly driven Harmony, although it won’t revolutionise watchmaking, does show that watchmaking is also, perhaps primarily, a matter of meticulous attention to detail, angles, lines, reflections, composition and balance, all of which are brilliantly executed here. Sometimes, this is more important than provoking a cacophony of tweets with a strident announcement that fails to deliver on its promises. But when you are 260 years old, it’s true that you can afford to take your time.

We should point out in passing that Vacheron Constantin is also focusing on its Métiers d’Art this year, specifically its hand-engraved movements; there are also twelve one-of-akind Arca table clocks, whose openwork calibre is displayed within an arch sculpted from rock crystal.

HALLMARKED SKELETONS For Roger Dubuis, this is the year of the skeleton. Not only because of its architectural qualities but also because “it’s the best possible way of exhibiting the Geneva Hallmark,” which distinguishes above all the quality of workmanship that goes into movement finishing. Once through the entrance to the booth, which reproduces the inside of a 7-metre-high skeletonised movement, there are automatic skeletons that even have openworked rotors (without losing any of their winding power); Brocéliande, a ladies’ skeleton watch overgrown with ivy, whose leaves of precious gems, white mother-of-pearl and diamonds twine in and around the movement; ‘technical skeletons’ such as the Excalibur Spider Skeleton Double Flying Tourbillon, a fearsome beast sporting titanium surfaces and elements of fiery red aluminium; and the Excalibur Spider Skeleton Flying Tourbillon, the first watch in the world with a diamond-set rubber bezel (patented by Genevan gem-setter Pascal-Vincent Vaucher).

The least one can say is that Roger Dubuis has confidently opted for a baroque aesthetic, taking a road far less travelled

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T BROCÉLIANDE by Roger Dubuis

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than current trends dictate. Practically everywhere else, sizes are being reduced, appearances are subdued, and lines are finessed and polished, but the world of Roger Dubuis is full of the sound and the fury, like the deafening promotional films that illustrate the back-story of its Skeletons. For many onlookers, however, the multiple sources of inspiration cited make the message paradoxically somewhat opaque. We are fed a mish-mash of images of Arthurian forests, corals, Romanesque churches and Gothic cathedrals, but also architects, suprematist painter Malevitch, even fantasy director Tim Burton! The prices bandied about are equally polarising: from 54,000 Swiss francs (euros?) for a Skeleton automatic in titanium, to CHF 300,000 for the diamond-set Excalibur Brocéliande, not forgetting the odd 250,000 here or 280,000 there. This arresting watchmaking is certainly not for the faint of heart.

“TO THE STARS...”

Skeletons may be rising from the ground, but it was by lifting their eyes to the stars that humans learned to measure time. Fundamentally, watchmaking is nothing more than a pathetic attempt to represent this elusive concept in physical form. Watchmaking, a micro-mechanical translation of the macro-movement of the celestial bodies, has always had a ‘date with the moon’.

This is the theme explored by Jaeger-LeCoultre this year, with a raft of beautiful pieces inspired by the moon and stars.

Some are highly complex, like the Duomètre Sphérotourbillon Moon, others more simply stunning like the charming Rendez-

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I DUOMÈTRE SPHÉROTOURBILLON MOON, RENDEZ-VOUS MOON and MASTER GRANDE TRADITION GRANDE COMPLICATION by Jaeger-LeCoultre

Vous Celestial in burgundy aventurine (when asked the reason for this colour, we are told, “Because, as the poet Eluard said, the sky is blue like an orange”). They all radiate an undeniable magic, a magic that is further enhanced by the great watchmaking skill that went into them. Hence the high-precision moon that cohabits with the Sphérotourbillon. The real lunar cycle is 29.53094 days, but for most watchmaking purposes it is taken as 29.5 days. This means it loses one day every two and a half years. The moon of the new Sphérotourbillon will be just one day out after 3,887 years; the Rendez-Vous Moon after 927 years. Pointless? Maybe. But exquisitely beautiful in themselves, such is the extreme degree of miniaturisation required to insert these complex moons into the reduced dimensions of a women’s watch, or into existing complications. The large moon of the Rendez-Vous Moon, in almost hyper-realistic mother-of-pearl, stands out against a dark blue lacquered guilloché sky, which glitters with a scattering of brilliant-cut diamonds.

This astral theme is also played out aesthetically and technically in other pieces, such as the Master Calendar, whose dial bearing a complete calendar is cut from a meteorite that fell from space some four billion years ago; and the Master Grande Tradition Grande Complication, whose orbital flying tourbillon parades around the dial, indicating sidereal and solar time. p For other Geneva Week/SIHH brands, read Serge Maillard’s article.

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GENEVA WEEK – SIHH

AN INTRODUCTORY STROLL

• Confessions of a newcomer, discovering the Geneva watch fair for the first time, venturing into its salons and making forays further afield. On the menu: women, transparency and slightly cold feet.

by Serge Maillard

T

he first blow is half the battle, as they say. So I’ll lay my cards on the table: this is the first SIHH I’ve covered for Europa Star. So I’m uniquely qualified to give an impartial view of the tourbillons, the chandeliers and the diamonds, the miles of smartly dressed tables and the gallons of champagne. But let’s not get distracted...

Before giving a full account of my impressions of the actual visit, a quick summary is in order (busy readers, feel free to stop here). At the close of Geneva Week 2015 I was left with the impression of three broad trends: • Feminisation: whether expressed in ladies’ versions of historic watches such as the Royal Oak, or models specially designed with the fairer sex in mind, there is definitely a wind of change. Interest in complications for women is growing, and gem-setting is spreading to models hitherto considered exclusively masculine. This evolution reflects the business reality: the promising new wave of female clients is also becoming more demanding.

• Transparency: as we announced in our French-language edition Première, 2015 is shaping up to be the year of the skeleton. Visible movements, and full or partial nudity have the wind in their sails. It’s the height of fashion to put the inner workings of your timepiece on display. Welcome to the era of transparency!

• Consolidation: this year there is no new crop of innovations, no one-upmanship in mechanical complications or the artistic crafts. What we have observed is a consolidation and development of existing collections, reflecting a somewhat more skittish market. The blue chips are all present and correct and, unlike what we have seen in recent years, there’s a distinct lack of daring.

Bearing in mind these indicators, we seem to be heading for a watchmaking world that is more feminine, more transparent, but also more conservative in 2015. So let’s get on with the tour.

At the Parmigiani Fleurier booth a ladies’ watch catches the eye: the Tonda 1950 Squelette. A superb watch, skeletonised but delicately veiled, sanded and sprinkled with a judicious dose of diamond dust – not too much, just enough to pique the desire! The frosted effect is very successful. Its

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I TONDA 1950 SQUELETTE by Parmigiani Fleurier

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I BUGATTI MYTHE by Parmigiani Fleurier

men’s counterpart, with its 145 components, is a worthy companion. They are both hand decorated. This is the first time Parmigiani has produced a skeleton movement, a feat that takes its watchmakers at least a week to achieve. It also classifies as ultra-slim (2.6 mm thick). At CHF 40,000 it is undeniably good value, particularly when compared with the models on display just a few booths away...

Parmigiani Fleurier is also unveiling three limited editions of the Bugatti timepiece to celebrate the 10th anniversary of their partnership. The brand has also built on the partnerT GMT BLACK by Greubel Forsey

ship cemented four years ago with French master glassmaker Lalique to create five new table clocks, with features such as the Earth goddess, Gaia, and snake motifs. These exclusive pieces each required 2,160 hours’ work. The price, accordingly, goes from CHF 350,000 to 1.2 million.

Clocks, movements and watches: a highly diverse offering in a small area. The visit left me with the impression that the Fleurier brand is consciously feminising its range. Of the 6,000 or so pieces it produces each year, 40% are ladies’ models. Their stated aim is absolute parity. Europe remains Parmigiani’s core market, absorbing half of its output. The brand has nevertheless just set up a distribution subsidiary in Japan. It has several own-brand boutiques, for example in London, Gstaad and, more recently, Miami.

Greubel Forsey is opting for a travel theme, with the GMT Black and its conspicuous globe, which could equally well be named the ‘blue planet’! The point of the watch is to be able to tell the time at any point on Earth at a glance. Another strong theme is art, as seen in the Robert Filliou Art Piece.

This watch, driven by the Fluxus movement, is a tribute to the eponymous designer, who died in 1987. The dial is decorated with Filliou’s ‘principle of equivalence’: “bien fait, mal fait, pas fait” (well made, badly made, not made). Who knows, perhaps this motto will help to rejuvenate the ‘Swiss made’ label, currently under attack from all quarters. When will we be able to focus on the more simple and universal, but equally explicit (though less Swiss) ‘well made’?

In association with Philippe Dufour, Robert Greubel and Stephen Forsey have also decided to tackle the sensitive topic of the transfer of watchmaking expertise (and often, today, its loss) via the project Naissance d’une montre (Birth of a Watch). Through a mentoring scheme, watchmakers are introduced to new ideas, which they can then pass on to

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I ROBERT FILLIOU ART PIECE by Greubel Forsey

I LADY ARPELS OISEAUX DE PARADIS by Van Cleef & Arpels

their own students (see sidebar). In short, it’s the snowball effect applied to watchmaking: a stand against the ravages of time, which all too often slips through one’s fingers.

Moving on...

At the Van Cleef & Arpels booth they are pushing a “positive view of life, particularly in our current times” (a reaction to the strong franc, the Chinese slowdown or just a general, existential disillusionment with modern life? We didn’t feel able to ask...). Something to soothe the spirit, then, inspired by the constant renewal and enchantment of nature. On the

BIRTH OF A WATCH

H

e was cutting it fine. Two days before the opening of the 2015 SIHH, Michel Boulanger was still assembling the base of his watch. It is a three-hand manually wound tourbillon, produced without the use of any CNC machines. The result of four years’ work, it is the first fruit of the Le Garde Temps – Naissance d’une montre (Timepiece - Birth of a Watch) project launched by Robert Greubel

menu are floral motifs, naturally, such as buttercups and crocuses, and poetic complications in the jewellery house’s purest tradition, personified in the Lady Arpels Coccinelles and the Oiseaux de Paradis.

Inspired by nature, there is the richly decorated watch bracelet (not bracelet watch) Carpe Koï, set with more than 8,000 coloured gems (3,450 hours of work, one-of-a-kind model).

A delicious irony: in French, carp are known for their inability to speak; here, its tongue tells the time.

The Parisian house has also brought back a 1930s watch, the Cadenas, so discreet that only the person wearing it can read

and Stephen Forsey in partnership with Philippe Dufour. But it’s just a stage win, as other timepieces – a total of eleven – are still on the workbenches. This first model is still awaiting its decoration.

A young teacher at the Ecole d’Horlogerie in Paris, Michel Boulanger was selected to take part in this mentoring programme, the main objective of which is to create a watch starting with a completely blank canvas, producing all its parts on the workbench, with the guidance of prestigious mentors. The underlying aim is to train up a watchmaker with the expertise

u

of past masters, so that he can pass on this knowledge to future generations.

Behind this is the fear that the knowledge of true craftsmanship will disappear.

Rather than choosing to publish yet another commemorative book, Greubel Forsey and Dufour decided to invest their own time, get their hands dirty, and pass on the craftsmanship ‘bug’.

Part of that means using tools that very few people now know the names of, still less how they are used. p The project blog can be found at : www.legardetemps-nm.org

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(and a new world record): this time, Piaget has pulled out all the stops to shave its manual chronograph flyback movement down to 4.65 mm. Some of its 240 components are thinner than a hair, measuring just 0.06 mm. It’s a little like some Olympic disciplines, the 100 metres, for instance; year after year, the pundits wonder whether the new record will ever be beaten; in other words, if one day we will hit some kind of insurmountable ceiling on performance.

The house is also following its predilection for skeletons, widely shared this year, with a new model, the Emperador Tourbillon Skeleton. For aficionados of Jackie Kennedy or Andy Warhol, it is a reinvention of the elegant and/or ‘pop art’ watches that were the height of fashion in the 1960s.

I ALTIPLANO CHRONOGRAPH by Piaget

the time. The original iteration of this avant-garde timepiece was inspired by the Duchess of Windsor, Wallis Simpson. Those readers who have seen “The King’s Speech” will know to whom I refer: a controversial figure who, although she would never bear the title of Queen, certainly earned the title ‘passionate’.

Piaget, meanwhile, continues its quest for the ultra-slim. A book recounts the history of this adventure, and that of a house that has brought out 37 calibres since 1957 from its two manufactures in La Côte-aux-Fées and Plan-les-Ouates.

A reworking of the Altiplano adds another brick to the wall

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Let us leave the ultra-slim classic and move onto a completely different style, with Richard Mille. “Nothing much new to see at the SIHH,” we are warned. “They’ll come out later in the year.” Nevertheless, there was enough to satisfy the brand’s devoted followers: a 30-unit limited edition of the RM 51-02 with ‘extreme’ decoration to its tourbillon carriage, and, most eagerly received, a flying tourbillon embedded in a magnolia flower – the RM 19-02, also limited to 30 pieces. The mechanical flower opens and closes at regular intervals. Van Cleef & Arpels certainly doesn’t have the monopoly on floral motifs at this salon... But Richard Mille was not the most obvious candidate to join them!

Although some observers found this SIHH to be short of new ideas overall, a visit to the Cartier booth, Richemont’s flagship, might have changed their minds. There were no fewer than 110 new models, variations and reworkings! Four clear trends T RM 19-02 by Richard Mille

were apparent: the skeletonised Haute Horlogerie grand complications; the launch of the Clé collection with a new calibre; new versions of métiers d’art models, and finally, the secret watches.

The Haute Horlogerie sector features around fifteen new departures, the three main ones being: the Astrotourbillon Squelette; the Grande Complication with flying tourbillon, minute repeater and perpetual calendar (Cartier’s most complicated watch to date, with 578 components and the Geneva Hallmark), produced in a limited edition of 50; and the Crash Squelette (more proof, if any were needed, that 2015 is the year of the skeleton) which reprises the deformed case of the original 1967 watch while baring its insides. These models attest to Cartier’s desire to be considered a full member of the club of creators of grand complications (see sidebar).

The Clé collection, which goes on sale in April, nevertheless remains the company’s most important new departure, from the point of view of both sales and strategy. Its name is derived from the crown, which turns like a key. The perfectly round watch is available in three sizes, in yellow, white or rose gold.

CARTIER, MECHANICAL OFFENSIVE The great Parisian house is hoping to make its mark in the small world of grand complications.

S

ince 2009, when Carole Forestier joined Cartier’s Movement Development and Design Department, which she now runs, the ‘king of jewellers’ has gained new credentials in mechanical Haute Horlogerie. In just a few years, no fewer than 30 movements have been developed by a team that today numbers 70 watchmakers, and 35 engineers and R&D technicians. The aim of this route march to ascendancy is to establish the brand firmly in the relatively closed circle of ‘real’ watchmakers.

Although Cartier has been making watches for a very long time – the Santos dates back to 1911 and the Tank to 1917 – the

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great Parisian Maison has been associated more with the design of shapes, icons even, and known as an ‘assembler’ rather than a complete watchmaker with mastery over the entire creative and production chain.

At the head of her own team, Carole Forestier, who in 2012 was awarded the prize for ‘Best Watchmaker’ at the Grand Prix d’Horlogerie de Genève, was able to start with a blank slate. As she readily concedes, this was an extraordinary opportunity for her to develop a highly original approach to Haute Horlogerie in complete freedom, without the baggage of a tradition to be maintained or a legacy to continue. Her watchmaking would seek inspiration in the world of the arts, in the exploration of shapes – like the 1967 Crash – and in the idea of ‘magic’, like the mysterious complications that have emerged in recent years.

Thus we have witnessed a procession of Perpetual Calendars, Tourbillons, Mysterieuses, Astro-Calendars and AstroTourbillons. With a highly recognisable style, Cartier’s Haute Horlogerie unapologetically distances itself from the tradi-

I CLÉ by Cartier

tional Swiss aesthetic. Its lines are strong and confident; the movements are often skeletonised, the dials picked out with assertive Roman numerals, the colour palette in tones of grey, silver and black, producing a bold and dynamic effect. Is it paradoxical that the most distinctive Haute Horlogerie of our time is being developed by a woman?

“TAKING IT TO THE NEXT LEVEL” “We’re showing that Cartier is a watchmaker in the fullest sense of the term, that we are capable of producing grand complications in the purest tradition.

We’re taking it to the next level,” asserts Carole Forestier, presenting a new piece that caused a stir at the SIHH 2015. The figures are impressive. “The Rotonde de Cartier Grande Complication is the most complex watch ever created by Cartier.

This movement, which has 578 components in a 5.49 mm thickness, was five years in development. It requires fifteen weeks to make the components, five weeks to assemble and ten weeks to

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At its heart beats a new 100% manufacture movement.

Prices are around the CHF 17,500 mark. With this new model the company, which employs around 1,600 people in Switzerland, hopes to seduce consumers and, perhaps, lift the short-time working arrangements imposed last year in the face of oversupply combined with a slowdown in the market.

“If Steve Jobs were here, he’d say: one more thing...” No long keynote speeches at Montblanc, just a presentation of the first “bridge between luxury and new technology”: the TimeWalker Urban Speed e-Strap. Currently at the prototype stage, this watch strap aims to offer the “best of both worlds”, in the words of the brand itself. Due for launch in June 2015, it will perform three tasks on the wrist, thanks to its Android and iOS-compatible Bluetooth connectivity: SMS messages and alerts; music and camera remote control; and an activity tracker, which will be welcomed by fitness fans and runners. u

decorate – such are the prerequisites of the Geneva Hallmark. This skeletonised automatic movement combines a minute repeater, perpetual calendar and flying tourbillon. The watch illustrates our design abilities in complex Haute Horlogerie, and the extent of our expertise in engineering, analysis, component manufacture and finishing, assembly and tuning. But having said all that,” she

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I TIMEWALKER URBAN SPEED E-STRAP by Montblanc

I ROTONDE DE CARTIER GRANDE COMPLICATION

continues, “we haven’t reinvented the wheel. That was not our goal.”

Indeed, everything in this watch is classic, in its own way, whether in the base movement construction driven by a flying tourbillon, whose titanium carriage has a gold counterweight; the unidirec-

tional automatic system with platinum double micro-rotor on ball bearings; or the repeater with inertia-free fly wheel and titanium hammers, an ‘all or nothing’ system that requires full winding of the dedicated barrel; and a ‘surprise’ system that ensures perfect tonal harmony of the hours and minutes.

In Carole Forestier’s opinion, “The real achievement is to have succeeded in fitting all this into a height of 5.49 mm and a final diameter of 45 mm.” This grand complication is the keystone of an Haute Horlogerie offensive, if one considers that at this year’s SIHH Cartier is introducing no fewer than three new movements and seven new models. These include the exceptionally legible Rotonde Cartier Quantième Annuel, fitted with the 9908 MC calibre; the Rotonde de Cartier Tourbillon Lové Calibre 9458 MC with its radiant, pared-down appearance; the Crash Skeleton; the Astrotourbillon Skeleton; the Rotonde de Cartier Reversed Tourbillon; a Double Mystery Tourbillon in rose gold; and the Rêves des Panthères with its changing sky behind three iconic panthers, carved in bas-relief. p (PM)

On the traditional watch front, the brand also has some new offerings, taking us on a journey not to Silicon Valley but back to the time of the Great Explorers: a number of models in the Héritage Chronométrie range pay tribute to Vasco da Gama. One of them features a moon phase display representing the sky of the southern hemisphere, a nod to the stars that helped the Portuguese navigator find his way to the Indies. It reproduces the same constellations that were visible in November 1497, when Vasco da Gama rounded the Cape of Good Hope. Engravings of his flagship, the São Gabriel, also adorn a number of the timepieces. New versions of the Héritage Chronométrie range also include a Dual Time, a complete calendar, an annual calendar and an ExoTourbillon Chronograph. The star of the show is the Tourbillon Cylindrique Géosphères, immediately recognisable by its two hand-painted half globes illustrating the northern and southern hemispheres.

I TOURBILLON CYLINDRIQUE GÉOSPHÈRES by Montblanc

Montblanc has entered into exclusive, albeit time-limited contracts with external partners to develop the product, which will eventually be sold separately from the watch, as an accessory. Although on the wrist the strap feels quite comfortable, the legibility of the screen remains to be evaluated.

Only an extended period of wear will show whether it is sufficiently user-friendly or not. Nevertheless, Montblanc certainly deserves points for initiative.

T ROYAL OAK CONCEPT RD#1 and MILLENARY by Audemars Piguet

Audemars Piguet is following two main axes of development. First, it wants to bring minute repeaters and chimes “into line with 21st century expectations.” Around eight years’ work, in collaboration with the EPFL, were required to design the Royal Oak Concept RD#1. Although currently just a prototype, it is already possible to hear the power, intensity, purity and clarity of the gong, installed in a specially-designed resonance chamber. By analysing several of its old chiming watches, Audemars Piguet designed a model that, through the power of complex algorithms, can cut through ambient sound, resonating even more clearly some distance away, just like a cricket. This tour de force involved identifying just

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europa star | GENEVA WEEK – SIHH | 33

those frequencies that are most perceptible to the human ear.

The other axis is... women! With men currently representing three-quarters of its clientele, Audemars Piguet is hoping to make its collections more appealing to women, and has

BEYOND THE SIHH

T

he Geneva Week journey doesn’t end at the doors of the SIHH; many brands take advantage of the event to showcase their new models on the sidelines of the main event. One such is Hublot. Among other new models, the LVMH brand announced a Big Bang Broderie with skull motif, which calls upon the expertise of embroiderers from St. Gallen. Like many other brands, Hublot has recently turned its focus to the artistic crafts, as one way of attracting more female clients. Today the men still have the advantage, representing around 70% of Hublot’s output. To celebrate the ten-year anniversary of the Big Bang, the brand is also bringing out a tourbillon model with power reserve indicator.

Like other brands, Hublot is choosing to mark time, consolidating its collections and its crafts. Later this year, it will be inaugurating a new 8,000 m2 building to house its 300-strong staff, which has

34 | GENEVA WEEK – SIHH | europa star

accordingly unveiled a number of new ladies’ models with mechanical complications. These include the new gem-set Millenary models, designed to meet the expectations of a female clientele while exploring new horizons. p

grown from 50 employees in 2007.

Eventually the company, which calls upon Dubois-Dépraz, ETA, Sellita, La Joux-Perret and El Primero (Zenith) to supply base movements for the 40,000 watches it produces each year, is hoping to develop in-house calibres. For the time being, however, it plans to increase production volumes and the number of complications, and also capitalise on the high added value of its crafts.

Consequently, the staff of Profusion, a company specialising in carbon fibre, which was bought in 2011, will be joining Hublot in its new quarters.

The marathon continues with a stop at Watchland, where the Franck Muller group has its WPHH salon. On the menu (in increasing order of price) are also many ladies’ models: the Vanguard Lady in pink, blue and white; the famous variations of the Color Dreams; the hands-free Double Mystery with its full diamond bracelet; and the aptlynamed Giga Tourbillon, also set with gems. Of the 50,000 models produced annually by Franck Muller, a 700-strong company whose production is almost

completely vertically-integrated, around 1,000 are tourbillons. Its main markets are Japan, China and the United States. With a view to diversifying its output away from watches, the brand has launched Franck Muller Yachts. Its two first boats are currently under construction in Italy. Their arresting feature is a luminous signature along the hull which announces its presence from afar, and is guaranteed to cause a stir on an evening cruise in the harbour of St Tropez or Marbella.

Also at the WPHH, London diamond company Backes & Strauss presented the key pieces of its watchmaking collection. The company naturally focuses on sumptuous ornamentation centred on its signature symmetrical ‘ideal cut’ diamond, designed to show maximum radiance. Its quintessentially British style is epitomised in the Piccadilly John Bull model, which proudly bears the Union Jack. This diamond company, established in 1789, entered the watchmaking fray in 2009, and has around ten employees.

Its primary market is Japan – a distinction it shares with Franck Muller. p

GENEVA WEEK – OUTSIDE THE SIHH

FLOTILLA

by Pierre and Serge Maillard

T

he SIHH, which this year celebrated its twentieth anniversary, is a victim of its own success, attracting an increasing fleet of hangers-on around the flagship event. The flotilla includes large cargo vessels (Hublot, Zenith), frigates such as Ulysse Nardin, pleasure cruisers (de Bethune, Christophe Claret, Urwerk, FP Journe, MB&F, Bovet, Manufacture Royale) and ocean-going monohulls such as Revelation and Ollivier Savéo, to name just a few. They all mill around the bay, not far from the Cité du Temps, an artificial island inhabited by the Swatch Group, which is exhibiting Breguet and Harry Winston there. A short distance away, on the Rue du Rhône, all the watchmaking boutiques, singleand multi-brand alike, are staging their own ‘exhibitions’.

And we shouldn’t leave out the Franck Muller group, which is entertaining in high style at its country seat, and Cvstos,

which is partying like there’s no tomorrow in its arcade, with the help of the larger-than-life Gérard Depardieu.

Fabienne Lupo, the welcoming and considerate director of the SIHH and FHH, is resigned to the phenomenon. She nonetheless draws a distinction between the independents who, understandably, are trying to make the most of the opportunity, and the powerful groups that turn up on the doorstep, uninvited. Some years back she toyed with the idea of organising a parallel exhibition for Haute Horlogerie independents in a chateau close by the SIHH. But the brands exhibiting at the SIHH opposed the idea, and it was dropped. Which is a shame. Evidently, even elephants are afraid of mosquito bites.

Whatever the case, it was possible to find some extremely attractive deals during this hectic week. Here, as a kind of appetiser, are some from the independents (in alphabetical order, so as not to ruffle any feathers), but we will cover them at greater length in our next issue (ES 2/15) which will be published to coincide with Baselworld. Most, if not all, will also be present at the Basel fair.

O ARTYA Launched in 2010 by Yvan Arpa, the brand is expanding its ‘Son of’ range with ...a Gun, Sound, Gears, Earth and Art. You may remember its models, whose blued cases were produced by real lightning from an electrical coil. The watchmaking entrepreneur is presenting some new variations on his Son of Sound, drawing inspiration from musical motifs and stringed instruments. This iconic piece will soon be on display at the MoMA in New York. Available in some 60 sales outlets, the brand also offers one-of-a-kind and bespoke pieces. (SM)

36 | GENEVA WEEK – OUTSIDE THE SIHH | europa star

BOVET U The Val de Travers brand presents several richly worked and elegant pieces. For ladies there is the Miss Audrey, whose Amadeo system allows the watch to be easily detached from its bracelet and converted into a pendant, pocket watch or table clock. Another model to watch is the jumping hours Virtuoso with five-day power reserve, optionally set with gems, in rose or white gold. The Braveheart transparent tourbillon with retrograde minute hand is also worth a look!

The brand is equally active in bespoke watches; around 30% of its sales are for custom models. Bovet is also continuing its push for vertical integration, with 75% of base movements produced in-house in 2014, compared with 50% the previous year. (SM)

O BREVA Breva has espoused an unusual take on watchmaking. Its Genie models, launched in 2013, have much in common with scientific instruments. The first complication was a barometer, a sort of weather-forecasting watch. The second, sportier series, was built around an altimeter. The new model, the Genie-03, which goes on sale in June in a limited edition of 55 (CHF 48,000), includes an anemometer that calculates ‘instant speed’ (not to be confused with the tachymeter, which calculates average speed) and maximum speed. This scientific gambit is an accurate reflection of the brand’s name: ‘breva’ is the name of a wind that blows over Lake Como in Italy. We hope this southerly breeze bodes well for the future of the horological start-up! (SM)

DE BETHUNE U It is always a distinct pleasure to meet Denis Flageollet, the watchmaking heart of De Bethune. David Zanetta, its aesthetic soul, prefers to play the deus ex machina, but he is also entirely present in the unique watches that the two men create together. Introducing the latest DB25T Zodiac, Denis explained that it was about “rediscovering emotion in historical fine watchmaking.” Dials decorated with symbolic zodiac figures flourished in the classical watchmaking of the golden age. Here they are given new life, finely carved into a stunning watch of rare simplicity and rare emotion. But De Bethune has plenty more tricks up its sleeve, notably in its more technical pieces, which we will come back to in our forthcoming Baselworld issue. (PM)

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europa star | GENEVA WEEK – OUTSIDE THE SIHH | 37

O FP JOURNE “I am always going back over my collections. In 2000 I revisited the Resonance, reworked the movement completely, and added a new, rather sophisticated free detent escapement, which no longer needs a spring. The escapement wheel is making a comeback. In the same vein, I have now returned to one of my classics, the Octa Lune, which was starting to show its age. I redesigned it, enlarged it and substantially improved its readability by, among other things, doubling the size of the date,” explains François-Paul Journe. Who could fail to rejoice at the renaissance of this elegant and understated watch, the epitome of Journe’s watchmaking. But we should also prepare for the long-awaited launch of two models that could not be more different: the Quantième Perpétuel and the Elégante, whose technical problems have now been resolved. Watch this space. (PM)

MANUFACTURE ROYALE U Bought a year and a half ago by the Guten family, the ‘Voltairian’ firm presents a new calibre, the MR-06: a flying tourbillon with skeletonised movement (yes, another one!). It follows a tourbillon minute repeater (MR01), a tourbillon (MR02) and a tourbillon with power reserve indicator (MR03). The new movement will drive the Androgyne Origine, produced in a series limited to 20 in gold and 45 with matte black PVD coating, with prices ranging from CHF 56,000 to 72,000. The brand turned over 150 watches in 2014 and hopes to sell 200 this year. But what of the MR04 and 05 calibres? Did they miss the boat? See you in Baselworld... (SM)

O MB&F Amply living up to its reputation as a ‘horological laboratory’, MB&F is launching into outer space a ‘pirate’ watch unlike anything you have ever seen. Its organic forms are dominated by four sapphire domes in its four corners housing the regulating ‘turbines’ for the winding mechanism, and hemispherical hour and minute indicators. The central dome opens up to reveal a flying tourbillon with a ‘retractable hemispherical shield’ that protects its beating heart from UV rays. Inside, a highly complex motor required three years’ work to perfect, and mind-numbing 90° angular gears to work around. But the HM6 Space Pirate has now lifted off. We can also soon expect the latest edition of the HM3 Frog, MB&F’s bestseller, with more than 500 sold out of a total of 1,500 pieces produced by MB&F since it began.

There is more to discover in our next issue. (PM)

38 | GENEVA WEEK – OUTSIDE THE SIHH | europa star

REVELATION U In the words of Revelation, “It was important that we began to show off some of the great potential of our mechanical system, which essentially allows a single watch to have two faces, whether with the aid of polarising crystals, as was the case hitherto, or some other element.” To illustrate his comments, Anouk Danthe shows us the prototype of a breathtaking ladies’ watch that can reveal or conceal a ceramic ladybird. The powerful and more obviously sporty Revelation Legend displays the hour, minute and seconds against a black background, which opens to reveal a large date and power reserve indicators on a deep red background.

Anouk Danthe is optimistic: “Things are starting to happen, distributors seem to be reassured by the progress we are making, retailers are showing more sustained interest, the press is following us.” We look forward to seeing more at Baselworld. (PM)

O ROMAIN JEROME According to Manuel Emch, its astute CEO, the brand found its audience, with its unique DNA, by ‘concretising’ (both literally and figuratively) in its watches some of the great legends that touch the collective imagination. Among the latest models to be launched is the Batman, released in October 2014, limited to 75 pieces. There is also the Berlin-DNA, which celebrates the 25th anniversary of the fall of the Wall and supports the East Side Gallery, the world’s largest open-air gallery, where street artists are invited to give free rein to their imagination along a 1.3 km stretch of the wall. The watch features a map of Berlin, with the wall traced in red. On the back there is the famous ‘Fraternal Kiss’ of Leonid Brezhnev and Eric Honecker, one of the most well-known graffiti from the East Side Gallery. (SM) p

URWERK U It’s amazing what a little bit of wood and a strip of tweed can do for a watch! Urwerk’s usual practice and strategy is to close down a collection after a few short years. Accordingly, the UR 110 has been invited to its last dance. On this occasion, it wears a bezel of rare wood, black or red macassar ebony, and sports a tweed strap. And in the process, it has been completely transformed. For the first time, Urwerk has given one of its watches a look that is less technical but far more... posh. A touch of English refinement, like the cosy interior of an old Jaguar, contrasts with the futuristic satellite display.

Limited to two sets of five units. (PM)

europa star | GENEVA WEEK – OUTSIDE THE SIHH | 39

BUSINESS

THE MOST POPULAR

by Sophie Doran, Digital Luxury Group

L

eadership. It is perhaps one of the most-important yet least-discussed aspects of luxury brand management. Corporate culture has long been cited as a source of business success or failure, yet the luxury industry remains largely silent on the internal strategies that keep its best-known brands moving forward.

Consider for one moment, the impact that a sole individual has had on the luxury industry, Bernard Arnault.

Whether one chooses to admire or admonish his aggressive approach, his influence is undeniable. He has effectively revolutionised the way that luxury brands are organised, marketed and sold, and the way in which luxury is understood.

Most of all, he has created ‘star’ executives, ‘star’ designers and ‘star’ brands.

Such senior luxury executives are photographed on the red carpet as just as often as they are found in the boardroom.

rising

stars 40 | BUSINESS | europa star

Stars in their own right, they move from brand to brand in a dizzying display of executive musical chairs. It is a game the watch industry is becoming quite good at.

Bernard Arnault has revolutionised the way that luxury brands are organised, marketed and sold In 2014 alone, Stephane Linder exited TAG Heuer after a career with the brand spanning 21 years. Jean Frederic Dufour was confirmed as the new CEO of Rolex - its third since 2008 - having served as CEO of Zenith since 2009.

Jean-Claude Biver returned to LVMH, appointed in the newly created role of Head of Watches, overseeing Zenith, TAG Heuer and his beloved Hublot.

Luc Perramond moved more quietly

from La Montre Hermès to Ralph Lauren Watches. Michele Sofisti stepped down as the CEO of Sowind Group, and eventually as CEO of Gucci Timepieces & Jewellery. Former Montres Corum CEO Antonio Calce has recently been named to succeed Sofisti at Sowind Group, at the same time that Christophe Arteaux was named CEO of Qeelin.

This reshuffle follows the creation of Kering’s first Luxury – Watches and Jewelry division, and the appointment of Albert Bensoussan as its first CEO. The leaders of Boucheron, Girard-Perregaux, JeanRichard, Pomellato, Dodo, Qeelin and Ulysse Nardin now report directly to the former LVMH Group executive and industry consultant.

In September 2014 Thierry Andretta moved from CEO to Vice President at Buccellati, whilst also taking on Board of Director responsibilities at Mulberry. Former Gucci executive Gianluca Brozzetti was named as his successor, having served as executive director of the jewellery and watch division at Bulgari.

#1

#2

#3

LVMH Watches

Kering

Richemont

Jean-Claude Biver

Francois-Henri Pinault

Johann Rupert

After ten years at Louis Vuitton, JeanMarc Mansvelt has taken over CEO duties as Chaumet, effective January 2015. The industry still awaits an official announcement from La Montre Hermès as to who will lead the ambitious French brand into the future. And we haven’t yet made it to Baselworld, where no doubt a new a stream of leadership announcements will be made.

Whilst the need for creativity and innovation is undeniable in luxury, with rapidly changing business conditions, intense competition and frequent economic headwinds, the role of the CEO has never been so important. As the watch industry continues to consolidate, turning privately-owned brands into stock-market stalwarts, growth and performance has never been more important.

2014 gross sales for the Swatch Group exceeded CHF 9 billion for the first time Consider this: 2014 gross sales for the Swatch Group exceeded CHF 9 billion for the first time ever, an increase of 4.6% over the previous year, despite the negative impact of the Swiss franc’s exchange rate. Operating profit clocked in at CHF 1.75 billion. The watch industry is therefore increasingly becoming the stock market option to watch, as consumers tire of purchasing entry-level monogrammed handbags.

In a trading update issued this January, Richemont claimed that weak luxury watch demand in Hong Kong and Macau made sales growth ground to a halt in the final quarter of 2014. Despite slowed growth during the quarter, the group reported third-quarter revenue to the tune of 2.94 billion euros.

TOP

10

LUXURY WATCH LEADERS

Bernard Arnault

1

LVMH

François-Henri Pinault

2

Kering

Johann Rupert

3

Richemont

Jean-Claude Biver

4

LVMH Watches

Nick Hayek

5

Swatch Group

Jerome Lambert

6

Montblanc

Juan-Carlos Torres

7

Vacheron Constantin

Caroline Scheufele

8

Ricardo Guadalupe Thierry Stern

9 10

LVMH’s Watch and Jewellery division reported relatively flat revenue growth of 3% during 2014, but it remains one of their most stable sources of income, netting over 2.5 billion euros in revenue for the group. Their Wines & Spirits division revenues dropped by 5% as Fashion & Accessories advanced 10%.

And as their conglomerates consistently report profits in the billions, their leaders inevitably feature - rather prominently - on the world’s wealth rankings.

Bernard Arnault is a tabloid favourite, as the richest man in France, and the 15th richest person in the world with a net worth over $35 billion. (Forbes Billionaires 2014)

Chopard Hublot Patek Philippe

Francois Pinault and family rank 60th on the very same list (net worth $15.1 billion), followed by Alain and Gerard Wertheimer at #132 (net worth $9.5 billion), Giorgio Armani at #181 ($7.3 billion) and Ralph Lauren at #194 (net worth $6.9 billion).

Richemont CEO Johann Rupert has an estimated net worth of $7 billion.

As a result, the leaders of watch and jewellery brands are inevitably on the radars of an increasing number of people: financial analysts, competitors, the global business press and even the general public. And according to Digital Luxury Group’s DemandTracker technology, the watch industry executive who garnered the most search interest in 2014 was Jean-Claude Biver. u

europa star | BUSINESS | 41

Bernard Arnault is a tabloid favourite, as the 15th richest person in the world Aside from the fact that Jean-Claude Biver remains one of the most quotable watch executives of all time, his comments on the Apple Watch in 2014 no doubt played an important part in the 45% increase in online interest compared with 2013. As did his announcement that TAG Heuer will move into the Smartwatch market in 2015.

The executive was quoted telling Forbes that Apple’s debut smartwatch ‘lacked soul’ and ‘aesthetic tension’ and ‘is not sexy at all’. Explaining to reporters he said that “this watch has no sex appeal. It’s too feminine and looks too much like the smartwatches already on the market. To be totally honest, it looks like it was designed by a student in their first trimester,” added Mr Biver.

His appointment at LVMH after his 2013 retirement from Hublot no doubt also contributed to his rising popularity.

And one can only expect this interest to grow in 2015, given the announcement of Cara Delevigne as TAG Heuer ambassador during his service as Interim CEO. The impending launch of their smartwatch will undoubtably extent his capacity to comment on behalf of LVMH. Jérôme Lambert, CEO of Montblanc, ranks as the second most-searched for watch industry executive in 2014.

Overall it was a momentous year for the brand, as the 11-year veteran of JaegerLeCoultre breathed new life into the manufacturer of writing instruments, leatherwoods and timepieces.

The unveiling of a Perpetual Calendar for

42 | BUSINESS | europa star

under 15,000 Swiss Francs marked his definitive arrival in 2014. On January 1st 2015 the brand again garnered headlines with the launch of the Montblanc Timewalker e-Strap watch line, which connects to Android and iOS using low energy Bluetooth to signal notifications and track activity.

The more recent appointment of Charlotte Casiraghi as Global Brand Ambassador will continue to push Montblanc further into the future. Juan Carlos Torres, CEO of Vacheron Constantin, was the third most-searched watch industry CEO of 2014.

FASTEST MOVERS Aside from Jean-Claude Biver, who was the most-searched watch executive, as well as the executive who registered the biggest increase in search traffic volume year-on-year (45%), interest in Georges Kern, CEO of IWC, grew fastest at 42%. Without scandal or billionaire listing, one can attribute the increase to the overall momentum maintained by the brand in 2014.

The executive who registered the third largest increase was Thierry Stern, up 26%.The outspoken CEO of Patek Phillipe created huge buzz around Baselworld 2014, remarking to the Swiss Press that the brand could be forced to move its headquarters away from Geneva or to sell up because of “high taxes”.

The leader of the family-owned watchmaker was also identified as a billionaire in 2014, with Forbes estimating his net worth around $3 billion. Patek Philippe also celebrated its 175th Anniversary, celebrating with some of the world’s most rare and accomplished pieces of haute horlogerie.

What do all these executives have in common? For one thing, all of their brands are well sold and understood in the marketplace. Each has a distinc-

tive vision, identity and consumer base.

Jean-Claude Biver is widely credited with resuscitating Hublot with his unwavering vision, creating a specific niche for an even more specific clientele of next-generation ultra high net worth individuals.

With the exception of Patek Philippe, each of the brands with the mostsearched CEOs are inherently digital.

Leading the way in terms of online campaigns, branded content, social media activities, video, mobile and SEO. In some cases, these brands are beginning to bridge the gap between the digital and the physical.

Baselworld is fast approaching, and CEOs face no shortage of pricing dilemmas given the recent controversy surrounding the Swiss Franc. At Davos, Oxfam made headlines claiming that half of global wealth is now held by the wealthiest 1%, just as the Richemont Group opened doors to present its most innovative (and expensive creations) at SIHH in Geneva.

2015 will present itself as another challenging year in watchmaking, as luxury continues to transcend its position as an industry. Today luxury is of key fiscal, ethical and political concern, and watches that can sell for anywhere between €1000 and €100,000 will continue to draw attention from all corners.

Brand leaders will be faced with difficult political environments in key growth markets, a public increasingly aware of the haves and the have-nots, and uncontrollable currency fluctuations that directly impact revenues. All the while they will be expected by shareholders to continue growth and maximise profitability. p

SPOTLIGHT

G-SHOCK MR-G

G IS FOR GAMECHANGER For Casio, the new MR-G watch is a gamechanger. In the past, Casio G-SHOCK watches were designed to be tough, but they were constructed of resin and were relatively inexpensive.

Now, the new MR-G range will completely alter your perception of the G-SHOCK. Not only is it not resin (it features a titanium case and bracelet), it’s the most expensive Casio ever. And, packed with so much advanced technology and so many functions, it’s a real value.

europa star | SPOTLIGHT

THE BRIEF With the MR-G line of watches, Casio was out to develop a timepiece that was virtually indestructible. The designers and engineers at Casio were determined to develop a watch with absolute toughness and precision, and the result is the top of the Casio G-SHOCK range. Incorporating incredible durability and resistance, the MR-G watches also pair the ultimate in precision with Casio’s GPS Hybrid Wavceptor system. This groundbreaking timekeeping system uses two receptors; the first a GPS satellite signal and the second a terrestrial time-calibration signal reception (radio-controlled Multi-Brand 6). As a result, the watch always receives and displays the correct local time, no matter where you are in the world. With this dual system timekeeping, when you get off the plane in a new country, all you have to do is alert the watch that you are in a new time zone and it automatically determines the right time and synchronizes the main display. Don’t worry, it has a flight mode you can switch off while you are on that plane.

The GPS antenna has been redesigned and miniaturized, incorporating a new material, alphaGEL (made by Taica Corporation), which offers a higher level of shock absorption.

In addition, the watch has both world time and two time zones displayed on the dial. You can pick a second time zone to be displayed in the subdial at seven o’clock, but

SPOTLIGHT | europa star

there is a separate display for world time (27 cities, and 40 time zones, with daylight savings time function).

“I created the G-SHOCK shock resistant structure, and I also initiated the full-metal G-SHOCK project,” says Casio chief engineer Kikuo Ibe. “My dream was to develop G-SHOCKs to match our customers lifestyles, from casual to formal, and the MR-G certainly fits both casual and formal styles.”

FEATURE PACKED The MR-G, as the top of the line for Casio G-SHOCK, is loaded with special features that are not found on their normal range of watches. The first is the proprietary Clad Guard case construction, a new design that protects the watch more completely and also safeguards the new redesigned electronic crown, which controls the world time, alarm, and timer. These features were designed and engineered to function seamlessly, but still look dynamic and classic at the same time.

The MR-G features a titanium case and bracelet, with DLC (Diamond-like Carbon) coating, making it virtually scratch proof. This is the first time a G-SHOCK has been made in metal, which adds to its robust and elegant look. The bracelet also has a deployant clasp to which Casio has added a sliding lock, so it’s impossible for the bracelet to open accidentally.

Most of Casio’s watches come with a mineral crystal, but Casio’s MR-G line offers a sapphire crystal with an anti-reflective coating that offers 99% transparency for incredible visibility.

The timepiece is solar powered with power-saving mode, using Casio’s Shadow-Dispersing solar panel, offering the highest efficiency when turning light into power.

At the same time, the MR-G line features Casio’s Tough Movement, incorporating automatic hand correction, which means the module checks hourly to see if the hour and minute hands are out of alignment (due to a shock or magnetism, for example) and then re-aligns them.

For visibility in low light conditions, the MR-G has the Super Illuminator LED light, which is exclusive to Casio.

All the displays are analog, making the watch very easy to read and offering a classic, luxurious, yet ultra-tough look.

In addition, the watch offers a 1/20th of a second chronograph, a countdown timer, alarms, a fully automatic calendar, and the watch is water resistant to 200 meters.

The MR-G collection is produced on a special production line which allows for more attention to detail and

hand finishing processes, like the Sallaz mirror polishing of the case and bracelet, which are done by hand.

The Casio G-SHOCK MR-G is different from any other G-SHOCK Casio has ever made, raising the bar for what was already one of the toughest and most durable watch lines on the market.

“We are targeting the active male who is traveling all around the globe,“ says Shingo Ishizaka, the designer of the MR G-1000. “This watch provides accurate time information anytime and anywhere in the world. At the heart of the G-SHOCK line is functionality and durability, and we applied innovation to make the MR G-1000 even more durable and shock resistant than ever before.”

The MR-G price range starts at 2,300 Euros, and for the customer who is looking for the ultimate in precision and toughness, it’s worth every penny.

http://world.g-shock.com/mrg europa star | SPOTLIGHT

INTRODUCTION

THE PARADOXES (PART I)

T

In parallel with the burgeoning independent scene, the watchmaking industry has become more vertically integrated and concentrated in terms of design, production and distribution.

This concentration in the hands of a few powerful, publicly quoted rival groups has fundamentally transformed an industry that was previously fragmented into small, often family run, companies, forcing it to submit to the tough laws of the globalised economy: increased demand for profitability, financial efficiency, vertical integration, competitiveness, marketing savvy, distribution foreclosure, etc.

Whereas, in the past, everything began with the watchmaker at his workbench, this figure has become just another link in a production and distribution chain that starts well upstream,

46 | INTRODUCTION | europa star

The Fall of Icarus by Merry-Joseph Blondel, 1819

he last decade has seen the emergence of a number of new independent firms, all passionate about their products, most of them concentrating on the high end of the mechanical sector. After several years’ investment and development, some of these small brands, which have also been genuine horological research laboratories, find themselves up against a brick wall or, perhaps more accurately, a glass ceiling.

Once the euphoria of the media hype has died down and preliminary production is under way, these brands often come up against all kinds of problems, which prevent them from going up a gear and really taking off.

These difficulties may present themselves upstream – suppliers bought out by groups, delivery delays, shortage of expertise – or down – inability to break into sales networks, locked-down distribution, risk-averse retailers. Added to this, the time needed for development and reliability testing is too often underestimated or skimped by these young turks keen to make a splash in an increasingly competitive market and a saturated watchmaking landscape.

In the end, many of these small independent firms are forced to close down or sell up. where the strategic decisions are taken, and ends far downstream, where the market is king. But is this process of ‘creative destruction’, as liberal economists like to call it, inexorably stripping watchmaking of the very thing that has ensured its survival through the centuries? Has its ‘soul’ become an empty shell? Has it deserted the workbench, leaving just a shallow reflection of itself on the advertising billboards?

To fuel the debate over these paradoxes of independence, Europa Star has organised a number of round tables and meetings, and compiled several case studies to analyse the reasons behind the success or failure of these small, independent brands. Read on. p

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M A R C H 19 – 26 , 2015

INDEPENDENTS

WHEN INDEPENDENTS JOIN FORCES

Living in the shadow of the sector’s giants, what place is there for small independent watchmakers in the highest echelons of creative watchmaking? Are they equipped to meet the many challenges they face, alone? Debate.

by Serge Maillard Almost all of them are the product of the same fertile breeding ground: the Académie Horlogère des Créateurs Indépendants (AHCI), which was founded in 1984. While they might not agree on everything, they share a common outlook. Between the poker and roulette tables of a casino adjoining Geneva

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Airport, not far from the SIHH, over the course of a week they exhibited their latest wonders and some older models, several of which have been awarded the prestigious Grand Prix d’Horlogerie de Genève. Watchmakers Kari Voutilainen, Antoine Preziuso, Vincent Calabrese and Vianney Halter have been brought together thanks to Amarildo Pilo, instigator of the first Swiss Independent Watchmaking Pavilion (SIWP).

Europa Star met up with them one evening to discuss the future of ‘independence’ in Haute Horlogerie. During an informal, interactive and uncensored debate, punctuated occasionally by some unprintable words, these creators expressed their hopes and fears, and ended up brainstorming a new business model and exploring ways to work together to defend their position. Love them or hate them, they are certainly worth listening to. So, what does independence really mean? Here are some possible answers.

What does it really mean to you, being ‘independent’ in watchmaking terms? It’s a bit of a catch-all term.

Antoine Preziuso: The word is something of a misnomer, because you are always dependent on something...

Vincent Calabrese: It’s a term I’m very attached to, given that I used it thirty years ago when I created the Académie Horlogère des Créateurs Indépendants. At the time, the term was reserved for watchmakers who worked alone. Today it is often used to describe far larger companies, which is a misuse, in my opinion. The same goes for the word ‘watchmaker’, which is bandied about indiscriminately. That is why the name of the academy specifies ‘watchmaking creators’.

Kari Voutilainen: Whether you work for yourself or for a company, independence means creating alone at your workbench, in total freedom. But there are two aspects: financial independence and creative independence. The one is supported by the other.

So, independence in watchmaking is primarily a matter of size?

Vianney Halter: No, on this point I must disagree with my colleague! A large watchmaking company that is not accountable to any investors or financiers who might impose external criteria is also entitled to consider itself independent. A company such as Rolex could be considered independent, perhaps even more than myself! (Laughter)

Independence is not about size; it’s about freedom of spirit and action. When it comes down to it, who are we really accountable to?

Independence is not about size; it’s about freedom of spirit and action. When it comes down to it, who are we really accountable to? A lone watchmaker might be independent, or he might not. Some of my colleagues were independent in the past, but aren’t any longer. Or they have lost some of their independence because they are associated with other organisations that support them.

You began your activities last century. Do you think it’s more difficult to be independent today – given the problems of distribution, for example – or is it easier because of the new design tools, and communication tools such as social networks?

Antoine Preziuso: I often compare independents with mice.

Mice are resourceful, they can slip through the cracks. We rub shoulders with giants, but we always find our own little place.

We don’t have their hitting power, but we also don’t have their inertia. We adapt, and that’s an ongoing process. These days, I use the internet and blogs a great deal, as a communication vector and sales tool. The Grand Prix d’Horlogerie de Genève is also an excellent showcase for independents.

Vincent Calabrese: Going back a few years, ‘unknowns’ were not always allowed into the watchmaking world. That has changed. Every year now we see new brands appearing. There has been a kind of renaissance in watchmaking over the last thirty years: some independents, such as Franck Muller, have grown very big, which has caused problems for the established groups.

Today, the most difficult thing is the strong competition.

Obviously, new brands continue to appear, but the imbalance between independents and groups has worsened. You see greater pressure on retailers when it comes to taking on a new brand. Many are born, but many go out of business or are bought out. Watchmaking’s success has created a climate of emulation, but a lot of people have lost their shirts. It’s a little like the casino we’re in today! u

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Kari Voutilainen: It’s true that distribution has changed a great deal; by creating their own mono-brand boutiques, watchmaking groups have caused problems for retailers. On the other hand, you could also say that it provides an opportunity for independents to fill in the gaps...

Fundamentally, the groups don’t always like us, because they can’t control us. But it’s the groups that bring high-quality Swiss watchmaking to the attention of the entire world. And we reap the benefits. Without the groups, there might not even be any Swiss watchmaking today.

Vianney Halter: There are certainly too many products on the market today, and not enough of the right products.

Supply exceeds demand.

Antoine Preziuso: Storefront visibility nevertheless remains key, and the independents’ position in the shop windows is coming under increasing pressure. It’s a big problem.

Thankfully we still have the internet, the virtual shop window.

Because it’s extremely expensive to have your own shop.

Vincent Calabrese: But there are also a few more billion people on the planet since a few decades ago. There may still be room...

At the same time, the groups are promoting Swiss Made output around the world, and new markets have opened up. You’ve benefited from that too, haven’t you?

Vianney Halter: It’s true that twenty years ago, when we turned up out of nowhere with our strange, complicated watches, there wasn’t really a market for all our new products. At the time, people would split their sides laughing at my watches! My first Baselworld, in 1998, that first day I genuinely asked myself what I was doing there. On the second day I realised I’d created an opening, I’d engaged people; they were laughing a lot less. The groups helped me to secure contracts, which enabled me to design and finance my own products.

These days, it’s possible for certain small quality independents to pull ahead of the mass of brands that need considerable investment to survive.

These days, it’s possible for certain small quality independents to pull ahead of the mass of brands that need considerable investment to survive. Even compared with powerful groups, we’re appreciated for our specific characteristics. Having said that, I don’t want to downplay the difficulties. It’s by no means easy these days to launch a brand, to sit down at your workbench and create a watch that will put food on the table. You need nerve and persistence.

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Vianney Halter: Visibility is a matter of personal will, and it’s also dependent upon the spirit of community between us. At one point, Vincent Calabrese came up with the idea of helping independent creators to join forces. And the academy is going from strength to strength. The creation of the SIWP is an extension of that idea: letting people know that we’re here, on the sidelines of a major exhibition, inviting people in and telling them about our work.

We must be responsive, we must be able to work together, pool our resources.

And are the independents doing enough in this respect? Could you take this partnership further?

Vincent Calabrese: That’s where the problem lies: being independent, and cooperating with other independents. It’s a paradox, don’t you agree?

Antoine Preziuso: We could cooperate more. For example, we could club together to buy a CNC machine to build our cases...

Vianney Halter: Well, look at what we’ve done here: we are funding a joint communication platform! Machines are important, but communication is equally so.

A few years ago, the Fondation de la Haute Horlogerie considered creating an ‘independent annex’ to the SIHH. Certain brands were against it. Is that because you could cause problems for them?

Vianney Halter: People can be wrong! The problem is that the games of musical chairs between brands are worse than I ever saw at nursery school. As independents, paradoxically, we often have a better idea than the groups of the direction we want to go in. There is more continuity in our management.

As talented watchmakers, you must sometimes be approached to join bigger companies. Are you ever tempted to abandon your independence?

Antoine Preziuso: Of course there are always temptations.

And sometimes they provide an opportunity to tell a beautiful story. One example is the Opus watches for Harry Winston.

They asked certain members of the academy to create timepieces for them, and the project was a success. It helped us, because we were able to piggy-back on their prestige.

We also file patents. We’re full of ideas. And groups ask to buy them. That also helps us. There are positive relations, and some excellent opportunities.

Vincent Calabrese: When they need a hand, there are no hard feelings (laughter).

Vianney Halter: I think we’ve reached an understanding.

There is no war. On the contrary, some group managers support us. But it is true that distribution is an increasingly critical factor, not only because of the pressure being brought to bear by the groups, but also because retailers don’t always support us.

Retailers regularly give my products away to their best clients, to thank them for a big sale or to win their loyalty. It drives me crazy! Retailers should also be more independent in their choices. Today, their stocks are full. Some would do better to clear out a few drawers full of products they know they’ll never sell, and have a bit more imagination.

Watchmaking history is a succession of cycles of concentration and decentralisation. What cycle are we in now?

Vincent Calabrese: Today we are talking about the relationship between independents and groups in Switzerland. I think that a major change is on the horizon, which will colour everything else. Tomorrow we’ll be talking much more about the relationship between Swiss watchmaking and Chinese watchmaking, or foreign watchmaking in the broadest sense.

That’s what’s around the corner.

be extremely beneficial for us all if the mid- and high-end independent watchmakers could cooperate more.

The former Audemars Piguet CEO George-Henri Meylan created MELB Holding to relaunch H. Moser & Cie and Hautlence (read our next issue). He says he’s ready to welcome other small independent brands, to set up a ‘pool’ on the marketplace. There could be opportunities for independent mini-groups.

Vincent Calabrese: I believe it’s the only way forward: set up small groups of independents, as the academy has done, and perhaps also incorporate the mid-range. At MELB Holding they also have the advantage of producing their own escapements. That’s a key factor; it is difficult to find independent suppliers.

Vianney Halter: There are now a few retailers, still sadly in a minority, who are making it a priority to represent independent brands. The public wants to see greater diversity.

Antoine Preziuso: But we should go further. I think we should open our own AHCI shop! One in Hong Kong and one in New York, for example. We could probably find someone to fund it. After that, we’d have to agree which of us would be treasurer (laughter).

Vianney Halter: But if it was just down to us, it wouldn’t last long! We’d have to find people with skills that went beyond pure watchmaking; we’d need a marketing and sales structure to attract people to our shop.

Vincent Calabrese: We’d need a manager. I’ll give you an example: Max Büsser, the founder of MB&F, is a hugely talented communicator. He’s an example to follow.

You have a business model! It’s your destiny to form a group!

Vianney Halter: (laughing) Let’s take it slowly. Ten years ago, you wouldn’t even have got us around the same table to talk about it... p

Amarildo Pilo: I’m the only representative of the mid-range sector at this table. Fifteen years ago, the Swiss watchmaking industry represented 7% of global watch sales; today, that figure is 2.5%. I think we’ll be obliged to go even further up-market to maintain our presence. There is a danger that the entire mid-range will slip through our fingers. It could

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INDEPENDENTS

(PART I) • To illustrate the various difficulties encountered by independents, Europa Star has chosen a series of particular cases.

• You’ll find below the first part of these studies per brand. More to follow in our next issue (ES 2/15 Baselworld).

NO. 1:

VOGARD

“As a shareholder I’m happy; as a creator, disappointed”

I

n 2002, a little over twelve years ago, Michael Vogt, a marketing executive who had previously worked alongside Christian Viros at TAG Heuer, launched his own brand: Vogard.

With the help of the extremely talented young master watchmaker Thomas Prescher he designed, perfected and patented a unique way of setting the time zone simply by rotating the crown. It was a first for mechanical watchmaking, and it made him the envy of many major brands. His watch is beautiful, exquisitely designed and highly recognisable. It is ridiculously easy to use, and it is the first watch capable of displaying half-hour time zones (as in Nepal, for instance) and Daylight Saving Time.

It is easily customisable to meet specific requirements (for example, pilots can display major international airports, or golfers can consult the time at the world’s greatest golf courses); it is available in steel or precious metals, with or without subtle gemstone inlays, and will eventually be produced in several models: Datezoner, the only watch in the world that

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can coordinate time and date changes via the rotating bezel, and Chronozoner, which combines time zones with a chronograph function.

An aficionado of what he calls ‘useful luxury’, Michael Vogt offers watches at modest and eminently reasonable prices: around CHF 7,000 for the basic model in steel, CHF 12,500 for his Chronozoner and CHF 15,000 for the Datezoner. Over ten years he expects to sell 5,000 units, an entirely respectable figure for a small niche brand such as his. The company’s development was completely self-financed, without any bank assistance, although a minority investor helped to the tune of 10%.

Despite this relative success, Michael Vogt has decided to throw in the towel. At the end of November 2014, he announced he had sold his patents to IWC. Everything points to his having hit the notorious ‘glass ceiling’.

“As a niche manufacturer and modest watchmaking workshop, we no longer have the financial or structural resources to continue to develop and exploit the full potential of our Timezoner technology,” he told Europa Star.

“I really had no choice. We sold well in the Middle East and the USA as, in both these regions, consumers and retailers alike are much more open to new ideas than they are elsewhere. Asia, a crucial market today for all brands, is much more difficult. It is very hard to find distributors who are genuine partners; they all dream of just one thing: working with the big, established brands. The Chinese, for example, don’t buy a product, they buy a brand. Initially, Vogard attracted a great deal of curiosity and interest from retailers, who all privately rail against the big brands, and complain that their margins are being eroded. But when it comes to putting their money where their mouth is, they balk; they’re afraid of taking the risk of developing a brand over the long term when it is still relatively unknown to the general public. For example, I wanted to open a boutique in Shanghai, but when I saw the conditions of the ten-year lease, which stipulated that everything had to be imported from Switzerland – furniture, POS materials, etc. – I realised I was about to jeopardise everything for a single sales outlet.”

While distribution is the biggest stumbling block for a small brand such as Vogard, which has never sold its watches on a consignment basis, other factors have also played a part.

“It has become extremely difficult, with just our own resources, to continue to develop distribution, open our own-brand stores or shop-in-shops, and diversify our range as we need to. To give just one example, R&D costs have rocketed over the last ten years. In 2003 one hour cost CHF 150; today we pay CHF 450!

Another concern is that over time I have seen several major brands sniffing around my patent, analysing it in detail and trying to get around it. Some even went right out and copied it anyway, but even though I won in court (editor’s note: against Villemont, which subsequently went bankrupt), I didn’t get anything out of it. Quite the opposite, in fact. It was time to come to a decision! And IWC, which was one of the three firms I had identified as possibly being interested in my patents, was very keen. As a shareholder, I am happy. As a creator, I’m disappointed.” So what are his plans now? “Vogard will continue to provide after-sales services for all the watches we have sold, but on the creative side I am going to take some time out. And personally, I admit, I’m looking for a new, bigger adventure!” he acknowledges, as if worn out by all the recent struggles. (PM)

NO. 2:

MARVIN “We simply couldn’t go any further.”

“

Given the many challenges Marvin faces as an independent brand if it is to continue to offer the best in a highly competitive, mature market, there is no option but to invest heavily. As it was not realistic for us to do this on our own, we have taken the decision to sell the brand to a third party in order to guarantee its future.”

The words of the press release issued at the beginning of December 2014 leave no doubt as to the straits in which Marvin’s independent owners found themselves, seeing no other course but to give up their brand or shut up shop. It was Chinese distributor M. Wu who won the jackpot. There is no sense that they have failed; quite the opposite in fact.

Cécile and Jean-Daniel Maye (Time Avenue SA) took over the Marvin brand in 2002. Created in 1850 in Saint-Imier by the Didisheim brothers, Marvin has had its share of the limelight, particularly in the 1950s, when it employed up to 350 staff.

But it subsequently fell out of favour. Cécile Maye stepped up to give the brand a new lease of life. The new models are very well designed, with an elegant revivalist touch, putting a modern spin on a fascinating heritage that offers many story-telling opportunities. Its marketing is well-thought-out, understated, effective and original. The products are precisely targeted and affordable, offering a good balance of quality, price and image. They are intended for a young, educated urban audience with an appreciation of design, architecture and 20th century style. Marvin entered into a partnership with Sébastien Loeb, nine-time rally driving world champion,

u

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“Given the sums involved, independent brands, lacking any real possibility of making economies of scale, forced to squeeze their margins, cornered both upstream and down, are unable to move up to the next level.” whose signature graced a chronograph collection starting at €1,000. People were astonished that such a high-profile champion should choose to support such a small brand.

Cécile Maye announced at Baselworld in 2014 that the brand, which had already sold 20,000 units, had seen a 63% increase in orders. So what went wrong?

“We simply couldn’t go any further, we couldn’t invest the sums necessary to take us to the next level. We hit a critical barrier,” explains Cécile Maye. “The brand enjoys an excellent reputation, where it is recognised,” she adds. “In order to activate this recognition, we need to have access to the markets. We have a sound distribution network, with almost 300 sales outlets. But clearly that’s not enough! Distributors are in trouble, they’re not buying the stock. Retailers are under pressure. We are told the market is saturated. I don’t really believe that. Let us just say that we are being watched. There is no doubt in my mind that the big groups and established brands have a decisive advantage.

“An independent has to do everything itself: design and production, obviously, but also finance, stock management,

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marketing, etc.... We could approach financiers, but they would need a return on their investment that we could not guarantee. We were looking to raise 6 million with a turnover of 3 million. But we have always refused to take the easy way out. We are looking, we were looking, at the long term.

Upstream, suppliers are either bought out, or they limit their sales, or they lose control of their orders. Given the sums involved, independent brands, lacking any real possibility of making economies of scale, forced to squeeze their margins, cornered both upstream and down, are unable to move up to the next level.”

What will become of Marvin, now that it has been taken over by its Chinese distributor? “At the end of August 2014, when the takeover was confirmed, M. Wu agreed to take on the entire Marvin team. Fundamentally, the brand’s direction and its location in Switzerland will not change. Marvin is continuing along the course we set, although, clearly, it is no longer our course. It’s a great shame that we have to leave it here, just as everything was taking off. It just goes to show that distribution is absolutely key. In two or three months, M. Wu has already opened 40 new sales outlets in China. And in the current political climate, our modest prices have become a significant factor.”

What do the Mayes plan to do now? “We’re taking a break, taking a step back, taking some time out. We might go off somewhere for a year...” Such is the harsh reality and the privilege of independence. (PM)

NO. 3:

CELSIUS X VI II

Haute Horlogerie telephone: number unobtainable

O

n 23 October 2014, a rare example of the Celsius LeDIX portable phone went up for auction by Maître Dufrèche in Besançon (France). “After a frenzied auction involving numerous telephone bidders, Philippe Roland, a Besançon collector, who attended the sale in person, won the coveted telephone for the sum of €11,000 plus fees, making a total of €12,584. At its launch in 2010 the telephone cost €250,000. Only eight were made before the company responsible for the project went into receivership,” reported local newspaper L’Est Républicain.

It all began in 2005, when a young mechanical engineer in industrial design, Thomas Pruvot, had the idea of applying mechanical solutions inspired by watchmaking to the time display of mobile phones. The Celsius concept was born, and all the good fairies of the kingdom were invited to gaze upon the cradle: young entrepreneurs Romaric André and Alejandro Ricart, along with luminaries of the telecommunications industry including Jean-Marie André, and of watchmaking, such as Edouard Meylan (who now chairs H. Moser & Cie), consultant Hugues-Olivier Borès and the famous Richard Mille, who agreed to sit on the board. By mid-2008, Sofinnova Partners, European leader in financing for technology start-ups, agreed to provide funding.

Like the Celsius LeDIX, a hybrid object made up of 600 mechanical components, with an eccentric tourbillon and the patented Butterfly Winding mechanism, the Celsius phones sought to marry mechanical Haute Horlogerie with the world of telephony. The approach was a highly original one, and went far beyond simply setting gold phone cases with jewels. Some innovative solutions were found: the subsequent model, the Optic GMT, was the first to use fibre optics to display information generated mechanically in the bowels of the movement. But despite all these good intentions and a fearsome array of experts, the concept never really took off.

Why not? Undoubtedly, the high price of these mobile jewels restricted their purchase to a very small circle of extremely

wealthy buyers. The fact that the year of its launch – 2009 – coincided with the financial crisis, and the subsequent watchmaking crisis, certainly didn’t help. It became increasingly unacceptable to display ostentatious signs of wealth.

And finally, smartphones really began to come into their own.

In January 2007, Steve Jobs presented the first Apple iPhone, then due to be released in June. The rest is history. Dubbed the ‘Invention of the Year’ by Time Magazine, it took telephony to a crucial new level. From that point on, people would talk about pre-iPhone and post-iPhone. The telephone’s traditional function became just one function of many.

In this landscape, which had suddenly been reconfigured from top to bottom, the Celsius remained a stunning and prestigious object, but a marginalised and functionally obsolete one. What lessons can we draw from this failure? Does its unfortunate fate prefigure an equally compromised future for traditional watchmaking in the face of the smartwatch?

Probably not. In fact, watchmaking has the opposite problem. The Celsius’s aim was to introduce a mechanical movement into an electronic object, whereas the watchmaking industry is now looking at adding electronic components to a mechanical object whose secular legitimacy is securely established. The watch, still virtually the only jewellery for men, is also protected by its status as a mechanical exception in a world that has become almost exclusively electronic. (PM) p

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SPOTLIGHT

FRENCH WATCHES AND CLOCKS AT BASELWORLD More than 40 French watches, clocks and jewellery brands will be present at Baselworld from 19th to 26th of March 2015.

Among them, more than 15 brands will be dedicated to watches and clocks.

Come to visit us at Baselworld and discover the latest French creations!

ALL BLACKS (SMB) • BERTHET • CERTUS (SMB) • COBRA • DODANE GO, GIRL ONLY (SMB) • HECTOR H (SMB) • FOB • KORLOFF • MICHEL HERBELIN PEQUIGNET • PIERRE LANNIER • YVES BERTELIN (COBRA) • SAINT-HONORÉ • UTINAM SPOTLIGHT | europa star

WATCHES, JEWELLERY & HIGH JEWELLERY HORLOGERIE, BIJOUTERIE & JOAILLERIE

HALL 2

HALL 1 Korloff

1.1 A63

Berthet

2.2 F38

Messika Design

1.1 B05

Cobra

2.0 B63

Michel Herbelin

1.1 A59

Dodane 1857

2.2 F40

Pierre Lannier

1.2 A27

FOB

2.2 F31

Saint-Honoré

1 .1 E 2 1

Gay Frères

2.1 L70

SMB

1.2 A09

Groupe GL

2.1 L02

Isabelle Langlois

2.0 K41

Joïa

2.1 M58

Marcel Robbez Masson

2.1 A61

HALL 3 Alain Boite

3.1 D25

Garaude

3.1 A09

Porchet

2.1 L58

Marc Princ

3.1 A07

Schmittgall

2.1 M58

Marcel Poncet

3.1 E23

Utinam

2.2 F39

Piat

3.1 D01

Waskoll

2.1 K70

HALL 4.U

PALACE

Robur

4.U D41

Verlux

4.U B23

Péquignet

www.emotionfrance.com

O F. 5 A

BUSINESS

CHINA, SWISS WATCHMAKING

Europa Star recently spent some time with Julie Laulusa, an astute and knowledgeable executive from the Mazars consulting group.

She shed some light on the far-reaching consequences of China’s anti-corruption and antiextravagance campaign.

by Pierre Maillard

THE ‘ANTIEXTRAVAGANCE’ CAMPAIGN Europa Star: Everyone has a different take on the impact of China’s anti-corruption campaign on watchmaking. What exactly is the situation? What concrete effects has this campaign had – from an economic point of view, certainly, but also on people’s attitudes?

30-40%. That year, sales of high-end watches were estimated at $653 million, the same figure as 2004! This was no coincidence: the luxury watch, a discreet and yet greatly appreciated gift, had become the symbol of corruption. Bloggers and contributors to internet forums, in publicising the campaign, accentuated the impact even further.

By 2014 the market had begun to stabilise, recording a drop of around 5%.

Swatch was the exception: sales of its iconic plastic watch rose by 15%!

At the same time, exports of Swiss watches to China increased in value by 15%.

How do you explain this paradox?

Julie Laulusa: The anti-corruption campaign began to have an impact on sales in mid-2012, although at that point the effects were relatively mild. In 2013 things began to snowball, with the result that sales fell sharply, by around

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JL: In 2013 no one replaced their stock.

And in the meantime, the consumer profile had changed so comprehensively that it had a considerable impact, in terms of both choice of models and price range.

I Shanghai-based Julie Laulusa is Managing Partner-Mainland China and French Foreign Trade Advisor for Mazars.

Mazars is an auditing, accounting and management consultancy group with its headquarters in France.

Employing more than 13,000 professionals worldwide (compared with 33 in 1977), Mazars ranks fifth internationally in a consultancy market dominated by British and North American companies.

Price levels were completely different pre2012 from what they were after 2012, the year the campaign was launched. The anti-extravagance campaign, the moral prong of the anti-corruption campaign, followed a similar pattern. The watches that came in to replace the old stock were different; stylistically, they had no visible signs of extravagance. To give an example of how anti-extravagance was implemented in practice, in 2013, Louis Vuitton was forced by the Shanghai authorities to withdraw the oversized trunks on display outside its shop.

Interestingly, Hermès, which tended to have a relatively low profile compared with its more flamboyant competitors, is now doing good business in China. These days, the handbags carried by elegant Chinese ladies no longer have logos.

Nevertheless, the watch remains the favourite luxury item of the Chinese, and it looks to remain so for some time.

But a different watch, perhaps...

JL: In the view of the Chinese, a watch, and particularly a Swiss made watch, should be made to last; you should be able to hand it down to the next generation. Engineering and functionality have increased in importance. As sales of watches intended as ‘gifts’ have dropped sharply, the customer profile has changed: clients are buying for themselves; they are investing, rather than spending. Little by little, the Chinese market is maturing.

Does this phenomenon affect the whole of China, or just the big cities?

JL: If I had one piece of advice to give to watchmakers, it would be this: invest in the mid-sized cities (in China, these may have several million inhabitants). In 2014, sales fell in the big cities, but they increased in the second- and third-tier cities, where tastes are still a little more ‘bling-bling’, more nouveau riche. It will take another five years or so for them to catch up.

Moreover, outside the main centres, foreign travel visas are more difficult to obtain, so clients have fewer opportunities to make their purchases abroad; there is a more captive audience.

CHINESE WATCHES GO UPMARKET Has the fall in Swiss watch sales been a boon for Chinese watchmakers?

JL: Officially the world’s biggest economy since October 2014 (a fact that gained little publicity in China, where the enormous disparities in salaries are an embarrassment to those in power), China has witnessed a spectacular increase in the size of its middle class, which by 2025 will count 600 million people with a net household income of €50,000 to €70,000. This category of customer goes for quality and value, and the history of each brand becomes extremely important. It will be up to Swiss watchmakers to tailor their products to suit the characteristics of this market!

But things are also moving for the Chinese watchmaking industry. For example, Seagull, which was bought by Chow Tai Fook, has expanded its range considerably. Today, its prices go from a minimum of €500 up to €10,000. That would have been unthinkable not so long ago. But in terms of both design and

“China lost all its watchmaking expertise, and it will take time to reacquire.

For the time being, a Swiss watch remains the dream.”

engineering, Chinese watchmaking is not yet a serious competitor. I don’t think that, within the next decade, there is a Chinese brand capable of pulling ahead.

Except, perhaps, in ‘ready-to-wear’. China lost all its watchmaking expertise, and it will take time to reacquire. For the time being, a Swiss watch remains the dream.

Do women play an important role in purchase decisions?

JL: In 1995, 90% of luxury spending was by men. Today we’ve reached parity, it’s 50/50. The buying power of Chinese women played an extremely important role in the upmarket trend. They see watches above all as jewellery that you can change depending on the occasion.

As you might expect, Cartier is undeniably the number one in this area. And, interestingly, Rolex is noticeably less popular among women in mainland China than it is with their counterparts in Hong Kong. Nevertheless, the biggest luxury market in China is for jewellery, not watches. And we will almost certainly start to see some Chinese brands making inroads in this sector.

Where does the smartwatch stand in all this?

JL: I think that young people will flock to buy smartwatches. But they will be considered novelty items, disposable even.

However, as the younger generation joins the middle classes, at the point where

they start to think about investing, they will turn to Swiss watches again to make their first purchases around the €1,500 to €2,000 mark.

If I may digress a little: because the anticorruption campaign focused on high-end luxury watches, glasses have jumped in to fill the void, and have become discreet luxury items in their own right. Glasses have now become jewellery; they are even set with precious stones.

THE ROLE OF THE INTERNET IN CHINA JL: In my view, it is only a matter of time before the internet becomes a viable sales outlet for watches, not just in China but across the whole of Asia. Nevertheless, in order to be effective it must be highly innovative, and tailored to the individual as much as possible. Retailers will have to offer bespoke services, even for watches in the €5,000 to €6,000 price range.

Customisation has become a major phenomenon in China, probably as a consequence of the one-child policy.

Considerable efforts will also have to be made in after-sales service. The client must feel completely respected, and there is a lot of work still to be done in this area. Retailers must be capable of providing extra services over the internet. For example, why not offer home delivery? Or the option to make items available on a trial basis? The internet also has a major role to play in educating the public about watchmaking. p

europa star | BUSINESS | 59

RETAILER PROFILE

“ITALY IS The Bartorellis, retailers in Italy since the 19th century, have adopted an original but successful strategy: they have opted out of the urban centres to reach out to both tourists and a local clientele.

they opened another boutique, a little more upmarket this time, in Riccione, also in Emilia-Romagna. At the time we sold brands such as Universal, IWC and Omega.

by Serge Maillard

How did the company develop from there?

E

uropa Star met Carlo Bartorelli on the sidelines of the SIHH, in a large Geneva hotel. Down-toearth and friendly, this latest in a long line of watch retailers in Emilia-Romagna on Italy’s Adriatic coast straightforwardly and confidently explains the challenges he has to overcome: the fall in the numbers of Russian clients, economic uncertainty in Italy, and the price increase due to the strong Swiss franc.

If the phrase ‘every crisis is an opportunity’ sounds like a platitude, it does seem particularly apt for the Italian retailer.

While many boutiques are in trouble, last year he opened a new branch on the Mediterranean coast. The move was the result of a radical strategy played out

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over the long term: rather than following the crowds to the cities, Bartorelli has chosen to remain on the lookout in the provinces, ready to seize any opportunity that presents itself. Interview.

Europa Star: What is the history of Bartorelli?

Carlo Bartorelli: I represent the fourth generation at the head of the company, which was founded in 1882. In the beginning, my great-grandfather didn’t own his own shop. He travelled on horseback throughout Emilia-Romagna, along the Adriatic coast, selling jewellery, for example on the market at Rimini.

It wasn’t until after the Second World War, in 1950, that my father and my uncle opened their first shop in Cattolica, in the Rimini region. A dozen years later

Carlo Bartorelli

CB: During the 1960s and ’70s tourism boomed in the Adriatic region, the economy grew, and we profited from that.

I studied business in Bologna before gradually taking over management of the company. The company has grown substantially: in addition to Riccione we have shops in Forte dei Marmi, Milano Marittima (a seaside resort, not to be confused with Milan), Pesaro and, since 2008, Cortina d’Ampezzo.

Who are your clients?

CB: We have a very tourist-based clientele, mainly Russians and Germans, who represent around 60% of our sales. But also Italians: as our shops in Riccione

and Milano Marittima are open on Sundays they attract customers who live in Ancona and Bologna. During a crisis, Italians look to invest in safe bets, like Patek Philippe, which they can hand down to their children.

about clients’ needs, not just paying lip service to them. The first three minutes are the most important. That’s where you need to make a difference, because you might not get a second chance.

also a source of opportunities. Many shops that were struggling have now gone. While we’re still here, we can capture some of their clientele. If you want proof, look at the shop we opened in 2014 in Forte dei Marmi.

What is your development strategy?

Which brands are the most profitable?

CB: In terms of margins alone, Patek Philippe and Panerai are the most profitable. In terms of volume, Cartier and Rolex have the top spot. We also offer popular high-end brands such as Audemars Piguet, Bulgari and Ulysse Nardin.

What are the keys to retail success, in your opinion?

CB: High-quality communication. Faultless after-sales service – for seven years our Riccione shop has been registered as a Patek Philippe Authorised Service Centre (one of only sixty or so around the world). And finally, genuinely caring

CB: It’s quite simple: we avoid the big cities. They are already saturated with shops, and there is too much competition. Outside the cities, thanks to the strategic location of our stores, we have a wide catchment area: the Cortina d’Ampezzo shop covers the north of Italy, our historic boutiques on the Adriatic coast cover the centre, and the Forte dei Marmi shop on the Mediterranean covers the east and Tuscany; we even get some clients from further south. I call that the ‘Italian boot’ strategy!

Was 2014 a good year?

CB: Very good. The crisis is not over in Italy, the market is smaller, but this is

Many shops that were struggling have now gone. While we’re still here, we can capture some of their clientele.

Are you indirectly affected by the economic sanctions against Russia?

CB: We have certainly seen a drop-off in the number of Russian tourists since September 2014. That’s why it’s important to have a solid base of quality local clients. Also, the number of German, Swiss and American tourists we see has remained stable.

What did you think of SIHH 2015?

CB: It was fairly quiet, there weren’t many new products. The strong franc is also making people cautious. On average, prices have gone up by around 5%.

If the franc remains high we should expect further increases. In my opinion the next few years will see some consolidation in watchmaking, and perhaps some growth in the jewellery sector.

Are you still a family company?

CB: Yes, five of our 37 employees are family members, including my three sons.

I’m confident they will follow the family tradition and take over the company.

What does the future hold for your Italian clients?

CB: I trust Matteo Renzi to get the country back on its feet. Italy is still alive! We have a talent for sales, and we’re used to dealing with problems. We know how to get through it. The Italian watchmaking scene has fewer actors and fewer retailers now, but greater quality and greater accuracy. p

europa star | RETAILER PROFILE | 61

DISTRIBUTION

AFTER-SALES SERVICE:

• With exports of Swiss mechanical watches growing year on year, after-sales service has become a key element for the industry.

• A solution needs to be worked out urgently to meet the demand, or the situation will quickly become unmanageable.

by François H. Courvoisier, Dean of the International Institute of Watch Marketing at the School of Business Administration Arc, Neuchâtel.

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T

he issue of after-sales service is more relevant than ever. Each year, almost 30 million Swiss watches – including around 6 million mechanical watches – reach the market, and join the tens of millions of mechanical watches produced over previous decades.

At the 16th InternationalWatch Marketing Day, Philippe Boutié of LAMTAR Planning & Communication in Paris talked about the “after-sales service time bomb”. To support his argument, he referred to a study he had conducted on watchmaking and its subcontractors, in which he noted that the “return rate just after [expiration of the] guarantee is one of the best-kept secrets of watchmaking.” Indeed, brands do not divulge any figures relating to returns under guarantee or once the guarantee has expired.

Nevertheless, Philippe Boutié takes no credit for the phrase ‘after-sales service time-bomb’. Back in 2007, as the world financial crisis began to take hold, Jean-Philippe Arm devoted an entire article to the subject in his magazine WatchAround, interviewing the CEOs of a number of leading brands.

He quoted François-Paul Journe as saying, “After-sales service is the cancer of every brand.” At the time, Mr Journe estimated that 10% of watches each year “break down because they are old, need servicing, have a fault or have been mistreated.”

50,000 NEW JOBS TO MEET DEMAND It was in order to find out more about brands’ strategy in this regard, and to clear away some of the smoke and mirrors with which clients are faced when they seek after-sales service, that the International Watch Marketing Days chose to tackle the topic in 2013. The concept of after-sales service was covered comprehensively, not only from the technical angle of watch maintenance, repair and exchange, but also and above all from the angle of managing client relations with a view to generating brand loyalty. Indeed, after-sales is just one aspect of the relationship between the brand and the client, whose foundations are laid with pre-sales service, when the client starts to think about buying a new watch, and which is cemented by ad hoc service, when the sale takes place in the shop.

Catherine Bourdin Mougel and Laurent Sage of the Chamber of Commerce and Industry in the Doubs department of France have noted that brands are heavily involved in sales of their new watches, and virtually absent from second-hand watch sales. They observe that the luxury watch market is increasingly evolving towards a service market, with a growing number of aftersales interventions compared with new watch sales. These after-sales transac-

If three million pieces are exported every year for ten years, in the eleventh year around three million watches will require after-sales service! tions, both under guarantee and out of guarantee, should lead to an increased presence of brands in the second-hand market. Catherine Bourdin Mougel and Laurent Sage believe that by 2025, growth in after-sales service needs to generate 50,000 jobs worldwide, if it is to handle the maintenance and repair of the millions of mechanical watches that have entered the market.

ASIA, THE WEAK LINK Maarten Pieters, director of watchmaking training institute WOSTEP, points to the difficulty of sourcing enough good watchmakers for after-sales service worldwide. According to his analysis of annual Swiss watch export figures over the last decade, mechanical watch exports have doubled (from 3 to 6 million

units, approximately). Using his previous experience in micro-mechanics and high-end watchmaking, he calculated that if three million pieces are exported every year for ten years, in the eleventh year around three million watches will require after-sales service! In fact, for the watchmaking industry as a whole, he estimates the coefficient of watches returned for after-sales servicing at between 0.7 and 0.9. That means, according to a reasonable forecast of new watch production, after-sales service worldwide will affect between 4.9 and 6.3 million units per year.

This will require setting up an entire after-sales business: administrators, customer service agents, operators, polishers, etc., 40% of whom will be involved in administration, with 60% in technical roles, according to Maarten Pieters.

As a result, around 45,000 workers will be required to handle Swiss made after-sales service around the world.

The watchmaking industry will need to train around 800 additional personnel each year in order to maintain current staffing levels.

The main challenge, as far as Maarten Pieters is concerned, is to strengthen Swiss made after-sales service in Asia, particularly in China, given that one in two watches are sold there, along with a further one in four to Asian customers travelling outside their home country. However, there are currently very few watchmakers in China and Asia with after-sales training, to cover a large number of watches requiring maintenance and repair. These regions therefore need to be fed with qualified personnel; to be precise, around 10,000 people with a good technical level, employed within a structure that is capable of keeping up with future demand.

After-sales service can no longer remain the poor relation; it is an integral part of sales, and it paves the way for the next sale. If no such structure is put in place, in Asia or elsewhere in the world, the entire Swiss made edifice (major groups and independent brands alike) will suffer the consequences when the time bomb detonates. p

europa star | DISTRIBUTION | 63

EDITORIAL & ADVERTISERS’ INDEX A Académie Horlogère des Créateurs Indépendants (AHCI) 48, 49 A. Lange & Söhne 15, 19, 66 All Blacks (SMB) 56 Antoine Preziuso 48, 49, 50, 51 Apple 42, 55 Apple Watch 8, 14, 42 ARC (School of Business Administration) 62 Artya 36 Audemars Piguet 15, 33, 34, 51, 61 B Backes & Strauss 34 Bartorelli 60 Baselworld 36, 41, 42, 47, 50, 54, 56 Baume & Mercier 8, 15, 20, 21 Berthet 56 Blancpain 14, 15 Bovet 36, 37 Breva 37 Breguet 15, 36 Bugatti 28 C Carl F. Bucherer COVER I, 10, 11, 12, 13 Cartier 30, 31, 32, 59, 61 Casio 43, 44, 45 Celsius 55 Certus (SMB) 56 Chanel COVER II (International), 4, 5 Chaumet 41 China Watch & Clock Fair COVER III Chopard 41 Christophe Claret 16, 18, 36 Cobra 56 Citizen 65 Cvstos 36 D De Bethune COVER IV, 36, 37 Digital Luxury Group (DLG) 40, 41, 42 Dodane 56 Dubois-Dépraz 34 E Emile Chouriet 17

Emotion France (Comité Francéclat) 56, 57 EPFL 33 ETA 25 F Federation of the Swiss Watch Industry (FH) 15 Fob 56 Fondation de la Haute Horlogerie (FHH) 36 F.P. Journe 36, 38 Franck Muller 15, 34, 36 G Giorgio Armani 41 Girard-Perregaux 15 Go, Girl Only (SMB) 56 Grand Prix d’Horlogerie de Genève (GPHG) 49 Greubel Forsey 28, 29 Guess 15 H Harry Winston 36 Hautlence 51 Hector H (SMB) 56 Hermès 40, 41, 58 H. Moser & Cie 55 Hublot 34, 36 40, 41 I, J IWC 20, 53, 60 Jaeger-LeCoultre 15, 24, 42 K, L Kari Voutilainen 48, 49, 50, 51 Kering 41 Kolber 26 Korloff 56 Lalique 28 Louis Vuitton 41, 58 LVMH 40, 41, 42 M Manufacture Royale 38 Marvin 53, 54 Mazars 58 MB&F 36, 38 Michel Herbelin 56 Mido 15 Montblanc 8, 32, 33, 41, 42 O Olivier Savéo 36 Omega 60 Orient 35

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P Panerai 21, 22, 61 Parmigiani Fleurier 27, 28 Pascal-Vincent Vaucher 23 Patek Philippe 15, 41, 42, 61 Pequignet 56 Philippe Dufour 29 Piaget 30, 66 Pierre Lannier 56 Pilo & Cie 18 R Ralph Lauren 40, 41 Revelation 36, 39 Richard Mille 15, 30 Richemont 8, 14, 20, 21, 30, 41, 42 Roger Dubuis 23, 24 Rolex COVER II (Europe), 3, 21, 40, 49, 59 Romain Jerome 39 S Saint-Honoré 56 Seagull 59 SIHH 8, 14, 16, 19, 21, 23, 27, 30, 32, 34, 36, 42, 60, 66 Swiss Independent Watchmaking Pavilion (SIWP) 14, 18, 48 Swatch 14, 58 Swatch Group 15, 36, 41, 66 T TAG Heuer 4, 5, 8, 40, 42 Thomas Prescher 52 Tissot 7, 15 Titoni 9 U, V Universal 60 Ulysse Nardin 15, 36, 61 Urwerk 36, 39 Utinam 56 Vacheron Constantin 14, 15, 22, 23, 41, 42, 66 Van Cleef & Arpels 29, 30, 66 Vianney Halter 48, 49, 50, 51 Vincent Calabrese 48, 49, 50 ,51 Vogard 52, 53 Y, Z Yves Bertelin (Cobra) 56 Zenith 36, 40

EUROPA STAR HBM Europa Star HBM SA, Route des Acacias 25, CH-1227 Carouge/Geneva - Switzerland Tel +41 22 307 78 37, Fax +41 22 300 37 48, contact@europastar.com • www.europastar.com EDITORIAL Editor-in-Chief: Pierre M. Maillard • pmaillard@europastar.com Managing Editor / all editions: Serge Maillard • smaillard@europastar.com Senior Editor: D. Malcolm Lakin • mlakin@europastar.com International Editor: Keith W. Strandberg • keiths821@aol.com Editors China: Jean-Luc Adam, Woody Hu • watches-for-china@europastar.com Editor Spain: Carles Sapena • csapena@europastar.es Art: Alexis Sgouridis • asgouridis@europastar.com Editorial Consultant: Casey Bayandor • cbayandor@europastar.com Asst. Publisher: Nathalie Glattfelder • nglattfelder@europastar.com Contributors • Switzerland: Isabelle Guignet, Velibor Jakovleski • France: Antoine Menusier • Australia: Martin Foster • Italy: Paolo de Vecchi • Germany: Gerhard Claussen, Timm Delfs • Russia: Vyacheslav Medvedev • Portugal: Miguel Seabra PUBLISHING PRINT/E-MEDIA Executive Director: Casey Bayandor • cbayandor@europastar.com Editorial, Production & Advertising Manager: Talya Lakin • tlakin@europastar.com MARKETING & CIRCULATION PRINT/E-MEDIA Marketing & Circulation Director: Nathalie Glattfelder • nglattfelder@europastar.com Marketing & Circulation Manager: Jocelyne Bailly • jbailly@europastar.com ADVERTISING / INTERNATIONAL SALES DIRECTORS Switzerland / Italy / US: Casey K. Bayandor Tel: +41 22 307 78 37 Fax: +41 22 300 37 48 • cbayandor@europastar.com Europe & International: Nathalie Glattfelder Tel: +41 22 307 78 37 Fax: +41 22 300 37 48 • nglattfelder@europastar.com Spain: Carles Sapena Tel & Fax: +34 93 112 7113 • csapena@europastar.es Asia: Maggie Tong Tel: +852 9658 1830 Fax: +852 2527 5189 • maggietong@europastar.com Ukraine: Julia Mostovenko Tel: +38 044 205 4088 Fax: +38 044 205 4099 • jmostovenko@karavan.ua PUBLISHER: Philippe Maillard MANAGEMENT / ACCOUNTING Business Manager: Catherine Giloux. Tel: +41 22 307 78 48 • cgiloux@europastar.com Credit Manager: Alexandra Montandon. Tel: +41 22 307 78 47 • amontandon@europastar.com MAGAZINES Europa Star - Europe - International - USA & Canada - China Latin America / Spain - Ukraine, Europa Star Première, Bulletin d’informations, Eurotec, CIJ International Jewellery Trends & Colours WEBSITES www.worldwatchweb.com, www.europastar.com, www.watch-aficionado.com, www.watches-for-china.com, www.horalatina.com, www.europastar.es, www.europastarwatch.ru, www.CIJintl.com, eurotec-online.com E-newsletters: www.europastar.com/newsletter MAGAZINE SUBSCRIPTION One year 6 issues, CHF 100 Europe, CHF 140 International.

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LAKIN@LARGE

AN OH SO YUMMY SIHH

by D. Malcolm Lakin

O

n the first day of the SIHH I managed to find a vacant table just prior to the lunchtime scrum and settled down with a newspaper to read about the really important events of the weekend: Arsenal won 2:0 at Manchester City and Chelsea beat Swansea 5:0.

I then ordered lunch from one of the myriad of attentive and amiable staff and carried on reading to discover on a page tucked away in the business section, that everyone and their mother seemed to be in a total panic because the Swiss National Bank was no longer pegging the exchange rate of the Swiss franc against the euro. The result as you all know was that the official currency of the Eurozone went into free fall.

The following day, having by then attended several press conferences and discovered some intriguing timepieces, I managed with great difficulty to find a seat at a table for lunch next to a journalist I knew from the U.K. whose main claim to fame amongst the horological literati is to pick other people’s brains as to what is good, bad or indifferent amongst the latest watch collections.

We passed the time of day with the standard meteorological discussion about the weather, debating the pros and cons of Switzerland’s snow versus England’s rain whilst he studied the lunch menu.

Then he asked the inevitable question: what’s interesting this year? I immediately informed him that I’d had the Oriental soup and the smoked salmon yesterday, and today I thought that I’d try the beef with the fruit salad as a dessert.

With that he got up muttering something about an appointment he’d forgotten and drifted off in search of someone more forthcoming with tips of what to see and what to write about.

By late Wednesday, I’d discovered for myself the timepieces that I would immediately place an order for if I win the lottery - if not for myself, then for the ladies in my life. For the ladies I would plead with Richard Mille to give me a major discount on his unbelievably expensive, but particularly beau-

66 | LAKIN@LARGE | europa star

tiful Tourbillon Fleur with its opening and closing floral tourbillon; then I would go for either of the three Montres Charms Extraordinaire - Espérance, Désir and Amour by Van Cleef & Arpels with their uniquely colourful painted enamel on sculpted mother-of-pearl dials.

And for myself? I’d happily wear Vacheron Constantin’s handsome cushion-shaped Harmony Chronograph Ultra-thin Grande Complication in either platinum or rose gold, or the Piaget Altiplano Chronograph in 18 carat rose gold - the world’s thinnest hand-wound flyback chronograph. If I had any money left after these purchases and I could get my hands on the Lange & Söhne Zeitwerk Minute Repeater with its jumping numerals display, I’d go home a happy bunny.

As was expected, the foremost topic at this year’s SIHH, apart from watches, was the Swiss franc.

The participating brands and the Swatch group, as if in one voice, pronounced prices would have to increase - the logic of which is beyond my economic comprehension given that prices are usually quoted in Swiss francs. Anything priced in euros or any other currency for that matter would, needless to say, have to be adapted. But why increase the Swiss franc price? Why not take a little less profit and lower the Swiss franc price when exporting?

Understandably, the smaller independent brands made it known that they were fearful that sales would drop dramatically and revenue that is used to continue production would become even more difficult to come by.

We’ve had similar crises before and the Swiss watch industry is still going strong - as is the Swiss franc!

Which inevitably reminds me of a biblicallythemed story about the time when God was creating planet Earth. He was still developing Europe and had already completed the initial phase of Switzerland’s creation. So He summoned the three wisest Swiss men to his side and told them he would give each of them a wish.

The first of the men said, “I would love to have mountains, big eye-catching ones.” So God created the Matterhorn, the Eiger and the Jungfrau and a whole host of other magnificent mountains the like of which had not been seen before.

He then asked the second of the wise men what he would like.

“I would like vast green fertile meadows with many cows because I have a feeling that their milk is good for you.” And God created lush green meadows with an abundance of dairy cattle.

“Do you mind if I taste the milk from one of the cows,” the second wise man, asked God, “just to be sure?”

“Of course not, please go ahead,” God said as he produced a glass for him. The man tasted the milk and smiled. “Is it good?” asked God. “It’s delicious, why don’t you try some?” he said as he passed the glass back to God. “Mmm, you’re quite right, it’s excellent,” God said with an approving nod.

God then turned to the third of the Swiss wise men and said, “The final wish is yours. What would you like?”

The man looked at God and slowly held his hand out.

“Five francs for the glass of milk!”

Well, you’ve got to laugh haven’t you. p