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Chapter

From Abu Dhabi to Zanzibar, Europa Star magazine delivers premium information about the fascinating world of watches. Its two folios Time.Business & Time.Keeper are circulated in more than 170 countries.

Europa Star is made possible by a team of passionate people and a network of incredible contributors.

Philippe Maillard Pierre Maillard Serge Maillard Masayuki Hirota

Joe Thompson

Julie Laulusa Dominique Fléchon Mr. E Pierre-Yves Schmid Antoine Guinard

Jill Metcalfe

Fabrice Eschmann

Dr. Frank Müller

D. Malcolm Lakin Laurence Janin Véronique Zorzi

Nicholas Foulkes

Marianne Bechtel Nathalie Glattfelder Catherine Giloux

Jocelyne Bailly Alexis Sgouridis

The middle classes live largely in the big urban centres, where all the different economic, demographic and cultural currents meet and mingle; where people, cars and trains cross paths in a woven carpet of streets, tracks and bridges; where all the different architectural styles rub shoulders, the relics of the past alongside skyscrapers sprouting like mushrooms.

What better way to represent the bustling chaos of a world city than in the poetic and thought-provoking style of Li Han and Hu Yan. Their focus is China, but their drawings could easily depict any city in the world.

Founded by architect Li Han and designer Hu Yan in Beijing, Drawing Architecture Studio (DAS) is a creative platform integrating architecture, art, design, urban study and pop culture, and aiming to explore new models for the creation of contemporary urban culture.

Working in the belief that architectural drawing has great potential beyond its traditional role in architectural design, DAS’s current practice focuses on exploring new approaches to architectural drawing and examining its value in contemporary culture and social contexts.

DRAWING ARCHITECTURE STUDIO http://www.d-a-s.cn

TIME.BUSINESS

TIME.KEEPER

Aerowatch 15 Armani 41 Audemars Piguet 50, 51, 52 Baselworld 54, 55, 56, 57 Baume & Mercier 15, 23, 36 Bering 62 Bravur 60 Bruvik 59 Carl F. Bucherer 6, 7 Casio 41 Certina 32 Chanel 4, 5 Citizen 31 Corum 37 Danish Design 62 Diesel 41 ETA 21 Fossil 41 F.P. Journe 15, 45 Georg Jensen 62 GoS Watches 60 Guess 41 H. Moser & Cie 44 Halda 60 Henry Blake 59 JS Watch Company 59 Junghans 24, 33 Kolber 61 Kronaby 60 Lip 19 Louis Erard 15, 35 Mido 15, 30 Nomos Glashütte 22 Obaku 62 Omega 41 Oris 15, 34 Pansar 60 Patek Philippe 46, 47, 48, 49 Rado 30, 41 Rolex COVER IV Ronda 53 Sarpaneva 62 Seiko 26, 41 Swatch 41 TAG Heuer 41 Timex 41 Tissot 9, 28, 41, 16 Titan 40, 43 Titoni 25 Triwa 60 Tommy Hilfiger 41 Urwerk 13 Westar 63 Wolf 67 ZRC 29

A. Lange & Söhne COVER IV Anson 86 Anthony Bonja COVER III, 50, 51 Audemars Piguet 41 Blancpain 18, 19, 20, 21 Bulgari 9, 40, 55 Carl Suchy & Söhne 42 Cartier 41 Casio 44, 45, 46, 47 Citizen 42 Comité Francéclat 80, 81 Corum 63 Delma 49, 62 Emile Chouriet 74, 75 EPHJ 85 Fabergé 60, 61 Fendi 24, 25 Girard-Perregaux 11, 54 Greubel Forsey 34, 35 Hermès COVER II, 3, 36, 37, 56, 57 HKTDC 87 Jean Lassale 39 Jean Marcel 41, 72, 73 Junghans 68 Lornet 77 MB&F 10, 53 Mondaine 48 Movado 42 Nomos Glashütte 33, 69 Ochs & junior 26, 27, 28, 29, 30, 32 Ogival 43 Patek Philippe, COVER I, 12, 13, 14, 15, 16, 17 Piaget 39 Promotion 84 Richard Mille 38 Roskopf 90 Seiko 6, 7 Swatch 90 TAG Heuer 4, 5, 10, 64 Tan 82, 83 Titoni 70, 71 Traser 66, 67 Urban Jürgensen 31, 58, 59 Urwerk 22, 23 Vacheron Constantin 40 Wolf 78, 79 Zenith 65 ZRC 76

TARGETING THE

MIDDLE CLASS

And why the age of condescension should be over now

| ON ITI ED AL OB GL

10

WHY INDIA IS NO CHINA FOR WATCHMAKERS And how it could (maybe) change, thanks to the… middle class

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SWISS MADE, LOVE IT OR HATE IT Discover Episode 1 of our opinion series on a continuously sensitive topic

44

FOLLOW THE SIGNS: PAST PRESENT FUTURE

46

58

MEET THE NORDIC WANNABE WATCHMAKERS And how Scandinavian design mixes with natural wonders

56

BASELWORLD AFTER 100 YEARS: KNOCK, KNOCK, WHO’S THERE? Europa Star for sure!

Test your watch history knowledge

54

WATCH FAIRS, WHAT AN ANCIENT BUSINESS! And how their surprisingly democratic flavour vanished

50

THIERRY STERN’S SECRETS OF RESILIENCE And how Patek Philippe’s steadfast behaviour pays off in the long run

FRANÇOIS-HENRY BENNAHMIAS ON PRICE AND TRANSPARENCY And why our Chapter 1 of January stung Audemars Piguet’s CEO

SUBSCRIBE TO EUROPA STAR MAGAZINE www.europastar.com/subscribe | SUBSCRIBE TO THE WEEKLY NEWSLETTER www.europastar.com/newsletter | CHAIRMAN Philippe Maillard PUBLISHER Serge Maillard EDITOR-IN-CHIEF Pierre Maillard CONCEPTION & DESIGN Serge Maillard, Pierre Maillard, Alexis Sgouridis PUBLISHING / MARKETING / CIRCULATION Nathalie Glattfelder, Marianne Bechtel, Jocelyne Bailly, Véronique Zorzi BUSINESS MANAGER Catherine Giloux MAGAZINES Europa Star Global (Europe & International) | USA | China | Première - Switzerland | Bulletin d’informations | Eurotec EUROPA STAR HBM SA Route des Acacias 25, CH-1227 Geneva - Switzerland, Tel +41 22 307 78 37, Fax +41 22 300 37 48, contact@europastar.com Copyright 2017 EUROPA STAR | All rights reserved. No part of this publication may be reproduced in any form without the written permission of Europa Star HBM SA Geneva.

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

Subscription service | Europa Star Time.Business & Time.Keeper | 5 issues | Worldwide airmail delivery CHF 90 | Subscription orders via: europastar.com/subscribe | Enquiries: contact@europastar.com www.europastar.com |

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High on the intoxicating returns from its ascent to the dizzying heights of luxury, the Swiss watch industry has now fallen back to earth.

And it’s asking itself whether it went too far. All eyes are now redirected downwards, towards the mid-range hitherto regarded with barely concealed condescension.

Without anything to hold it up, the top of the pyramid can’t sustain itself. If you’re going to build high, you need a solid foundation. And in order for the base of the pyramid to be sturdy, it must be as broad as possible. In other words: without volume, there can be no exclusivity.

The role of providing volume – a volume of quality, that underpins the strength and permanence of the entire edifice – has fallen to what we have come to call, for want of a better term, the “mid-range”. No one likes this term. Some prefer to speak of “accessible luxury”, which is an oxymoron since, if it’s accessible, it’s not really luxury.

Having said that, there is no single “mid-range” but several “mid-ranges”, because the accessibility of a given product is relative, depending on where you live, in a developed economy or an emerging one. Similarly, there is no one middle class – there are several, and their destinies are very different.

While the Chinese middle classes continue to expand – they already represent one-third of the world’s middle classes – the Western middle classes are in decline. A recent article by Bloomberg was entitled: “Middle-Class Angst Is Depressing Swiss Watch Sales”. But a careful reading reveals that the examples cited were all about high-end watches priced at $5,000 and over, not the mid-range, which is generally defined as sitting between $500 and $3,000.

The economic pressures weighing on the middle classes, the fact that salaries are stagnating, concern about the future is rising, jobs are being replaced by robots, Europe is dealing with Brexit, the USA is dealing with an unpredictable Trump, China is dealing with anti-corruption and anti-extravagance campaigns – all this has changed the game, and it has altered the aspirations of the “middle class” which, as Bloomberg points out, “has decided that, after not getting a pay rise for many years, there are better things to spend money on than Swiss wrist jewelry.”

But that is precisely where the “mid-range” has a very strong card to play, by responding to the real aspirations of the middle classes. In their state of disillusionment, they no longer aspire to a higher social status (which is what that pricey watch was intended to advertise), but they still want something that is handsome, solid, reliable and timeless.

It’s time for the mid-range to have its day. In this issue we devote a substantial Dossier to the subject: Don’t Forget the Middle Class.

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What is a “mid-range” watch, exactly?

Just as there isn’t just one middle class but several, so there are several interpretations of “mid-range” where watches are concerned.

Has the Swiss watch industry neglected the mid-range?

Over the last ten years, the Swiss watch industry has gone upmarket, and media coverage has been monopolised by top-end watches.

Can exclusivity coexist with quantity?

That’s the paradox of the mid-range: it has to be produced in volume while giving the impression of exclusivity.

Does the current crisis offer new opportunities?

Watches costing between CHF 500 and CHF 3,000 (retail price) have weathered the storm better than anything else.

What do mid-range customers expect?

As well as price, they are looking for reliability, high-quality finishing, durability, and they want a watch that will stand the test of time.

Are we entering a period of stylistic conservatism?

A more reassuring and less ostentatious style of watch seems to be appropriate for the mid-range.

Have smartwatches affected the mid-range?

Yes, more than people think. The impact of e-commerce is also making itself felt.

Are retailers still interested in the mid-range?

They look at it as a way of increasing lacklustre sales.

Is the current crisis an opportunity to reshuffle the distribution deck?

The mid-range is also a testing ground for the changing face of watch sales.

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H TH AV C E E N L AS M I D EG SE D L E S BE LE C EN

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n recent decades, Swiss watchmakers have been preoccupied with scaling the summits in terms of pricing, mechanical sophistication and artistic refinement, while overlooking, ignoring even, an essential sector of their clientele – the middle classes.

(A notable exception to this is the Swatch Group and some strong independents.)

In our previous Dossier – The Price Issue, Europa Star Time.Business 1/17 – we highlighted the considerable increase in market share of watches priced over CHF 3,000 (export price), which grew from 15.5% in 2000 and peaked at 60.2% in 2015, falling back only slightly in 2016 to 60%.

Logically, what this also points to is that the market share of Swiss mid-range watches has fallen significantly in 15 years, especially given that the total number of watches exported has remained virtually the same, declining marginally from 29 million units in 2000 to 28 million in 2015.

This contraction of the mid-range watch sector has certainly benefited Switzerland’s competitors. In 2015, for instance, while the number of pieces exported by Switzerland fell 1.6%, settling at 28.1 million units, Germany increased exports by 4.4%, reaching a total of 21.9 million units, while French exports rose by 6.1% to 7.3 million. At the same time, Japan exported around 60 million watches with a total value of 160 billion yen (1.3 billion euros).

Given that the majority of these German, French and Japanese exports can be classed as mid-range (between CHF 500 and CHF 3,000 retail), the relative “void” left by Switzerland has been filled by its rivals.

Is the wind about to change?

The crisis that Swiss watchmakers have endured over the last two years – from the top, this time – is a game-changer.

Suddenly, their rather condescending attitude to the midrange has shifted: after all, the mid-range not only has the volume, it also seems better able to absorb the bumps in the road that are an inevitable consequence of our globalised trade.

12

It was obvious at the recent SIHH that brands that previously would not deign to discuss prices were now broadcasting them, although the subject was cloaked coyly in terms of “value”.

One brand in particular, somewhat unexpectedly in this exalted company, was thrust into the spotlight. Baume & Mercier abruptly found itself the focus of universal admiration because of its moderate pricing (see further).

The mid-range is back. Suddenly, everyone wants a piece.

Brands sense a possible growth vector. Retailers sniff an opportunity to increase footfall and stock turnover.

Interestingly, the same phenomenon can also be observed in Western politics. All at once the middle classes, who are becoming increasingly disaffected, are exerting a powerful fascination. And this is no coincidence: as we have often said, watchmaking is a reflection of its time.

The mid-range is also a laboratory The most profound upheavals in the watchmaking sector won’t come from the top – they are already happening in the mid-range trenches.

Joe Thompson, an astute observer, describes in his article (see further) the forces at work in this vital sector of the American market.

Whatever Swiss watchmakers may choose to believe, the advent of the smartwatch shook the mid-range to its foundations, and as e-commerce continues to cut a swathe through traditional consumption patterns, a flourishing grey market is upsetting the old hierarchies. And we all know that what’s happening in the USA eventually happens everywhere, a few years later.

Whether it likes it or not, the mid-range has also become the laboratory where the future of the watch industry is being shaped.

Having said all that, however, this so-called “mid-range” category is difficult, if not impossible, to define. Not only is the concept of mid-range itself relative (a watch that would be considered ordinary here might be deemed a luxury somewhere else) but it covers a very broad spectrum of products.

And this doesn’t even take into account the contradictory tastes that must be catered to.

What’s more, middle-class consumers are no longer prepared to take anything that gets foisted on them. While price may still be crucial, the concepts of high reliability, quality of finish, durability and timeless appeal – concepts they have absorbed from the shop windows and the marketing campaigns of prestigious brands – have all, with the help of the internet, become decisive factors.

So it’s no surprise that brands are now talking up the correlation between price and substance. In other words, to satisfy a mid-range client, you really have to provide value for money. Whatever the price.

PAST

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D TH OE C A L E S A ND A M M W S I ID H S D -R A E D A T E X LE N X I G A S E C T W T ?

Watchmakers would be the first to say that they don’t like the term “mid-range” – they find it disparaging. And, in fact, there is not a single mid-range – there are many. Just as the Western middle class is not the same as the middle class of an emerging economy, the term “mid-range” covers a broad spectrum of very diverse products. Also, the perception of what “mid-range” means varies according to the size of your wallet.

“The world is expecting big things from the global middle class – and the middle class is depending on big things from governments that are now struggling to deliver.”

Ian Bremmer, Time

IN OTHER WORDS: “The watch industry is expecting big things from the global middle class – and the middle class is waiting for big things from a watch industry that is now struggling to deliver.”

Nan Luo Gu Xiang ©Drawing Architecture Studio | www.d-a-s.cn

“I really don’t like the term mid-range! From a client’s point of view, I wouldn’t like to be considered in the mid-range. So I would prefer talking about accessible luxury.”

Alain Zimmermann, Baume & Mercier

“I prefer the term ‘active class’ rather than middle class. The active classes are the motor of society. They’re essential. If there are only rich people and poor people, society can’t function.”

François Thiébaud, Tissot

“The Chinese middle class is six times the size of the entire population of France.”

Julie Laulusa, Mazars

“I don’t really like the term ‘mid-range’. It’s purely theoretical. CHF 2,000 for a watch is a lot of money.

Defining that as mid-range is just arrogant.”

Rolf Studer, Oris

“In order to set yourself up in the CHF 800 to CHF 1,500 segment you need to have extraordinary industrial resources, and only the Swatch Group has those today.”

François-Paul Journe, Bilan

“As a pillar of the economy and the foundation of democracy, the middle class no longer exists. The only way of approaching it is if you split it down the middle.

The upper half has all the opportunities, and the lower half has all the problems.”

François Pilet, L’Hebdo

“To see the impact of cutting-edge change in the watch world, check out America’s big, bruising middle market.”

Joe Thompson

“The mid-range has great potential! I have always remained in this promising segment. The watch industry should be like a pyramid. If not, we’re back to the situation we were in in the 80s.”

Alain Spinedi, Louis Erard

“Exclusivity is relative: if you sell a few hundred thousand watches in China, that’s almost exclusivity!”

Franz Linder, Mido

“In recent years prices have continued to rise, and the mid-range has been neglected.”

Jean-Sébastien Bolzli, Aerowatch

“The mid-price segment in Germany is losing out. The main raison is consumers’ demand for ‘value for money’ – which either means more authentic or cheaper watchmaking.”

Dr. Frank Müller, A Bridge to Luxury

“The middle class is characterised by dependence on the dominant class, aspirations of upward social mobility and a strong regard for the established order.”

Pierre Bourdieu, sociologist

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became the world’s first or second largest watch company (it depends on your estimate of Rolex’s sales) with sales of an estimated 13 million watches worth $6 billion. Last year, though, in its first full year and despite the launch of Apple Watch Series 2, priced from $369 to $1,339, Apple’s watch sales dropped 15%, according to estimates by Strategy Analytics, a Boston research firm. (Apple does not release sales data for the watch.) Smartwatch sales for Samsung, the world’s #2 smartwatch producer, fell 11%. Overall, global smartwatch sales rose a measly 1% to 21.1 million units.

U.S. watch executives offer good news/bad news assessments To see the impact of cutting-edge of the impact of smartwatches. The good news is that they are change in the watch world, check expanding the market, putting watches on the wrists of people out America’s big, bruising mid- who would not otherwise wear them. The bad news is that they dle market. have taken sales away from traditional mid-market brands.

Just where the smartwatch market is headed is anybody’s In the 2016 U.S. presidential elec- guess. Apple and Fitbit remain gung-ho about it. But the loss tion, an ocean of ink was spent on of momentum at Apple and Samsung and the failure of smartchronicling the uncertainties and watch-pioneer Pebble (the watch was discontinued and the anxieties of America’s middle class. Despite all that, there company sold to Fitbit in December) and Motorola (it halted is one area that just-plain-folks really can’t complain about. production of its Moto360 smartwatch) has soured analysts on That’s watches. When it comes to buying a watch, Joe and the category. They have slashed 2017 smartwatch forecasts, as Jane Six-Pack have never had it so good. smart technology moves on to new applicaMiddle-class Americans today can buy tions such as home appliances (smart speakThe American midmore watch brands, boasting more techers, smart bathroom showers, etc.). market is undergoing nologies and styles, at more watch retail In an ironic twist, one smartwatch expert last outlets than ever before. some dramatic changes summer looked to traditional watch brands That’s not to say that the U.S. watch market is to boost the stalled smartwatch market. resulting from new booming. It isn’t. (Swiss watch exports to the “One of the biggest omissions in the smarteconomic, technologU.S. dropped 9.1% in value last year.) What it watch market is the absence of traditional means is that the American mid-market, watchmaker brands among the leading ical, and demographic like the global watch market, is undergoing vendors,” wrote Ramon T. Llamas, research forces. For consumers, some dramatic changes resulting from new manager for International Data Corp. in that’s good. For watch economic, technological, and demographMassachusetts, an authority on consumer ic forces. For consumers, that’s good. For technology markets. “Only a small handful of companies, maybe not watch companies, maybe not so much. traditional watchmaker brands have entered so much.

The middle segment of the U.S. watch marthe smartwatch market…. Participation from ket, which runs roughly from $200 to $1,200, traditional watchmaker brands is imperative may be the best place to see those forces at work. Somewhere to deliver some of the most important qualities sought after by in that range is what the American middle-class – defined as a end-users, namely design, fit and functionality. Combine these three-person household with an annual income ranging from with the brand recognition and distribution these brands al$42,000 to $125,000 – tends to spend on a new watch. It’s home ready have, and it’s reasonable to expect the smartwatch market to the traditional Big Three mid-priced brands, Citizen, Seiko, to grow from here.” and Bulova. It also includes a strong fashion-watch segment as Indeed, the number of traditional watch brands offering smartwell as quartz analogue watches from a significant contingent watches is growing. They include Fossil, Timex, Swatch, Casio, of Swiss brands like Movado and Raymond Weil.

TAG Heuer, Movado, Frédérique Constant, Alpina, Bulgari, Here’s a look at three forces that are shaping that important Tissot, Mondaine and more. Whether they will help the smartmarket segment today. watch market, or it will help them, remains to be seen. The game is still afoot. Silicon Valley analysts may 1 | Smartwatches consider sales of 21 million watches small peas, but in the watch world, The arrival of the Apple Watch in 2015 was a mid-priced that’s a big deal: it’s nearly as many bombshell that showed the potential power of the connect- watches as the entire Swiss indused watch. After just nine months in the watch market, Apple try exported last year (25.4 million).

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2 | E-commerce Last November, in a meeting with financial analysts, Richemont Group Chairman Johann Rupert sounded the alarm about how e-commerce was changing the luxury industry. “I am talking about a massive change in the way business is being done by going digital, a massive change in e-commerce.” Addressing the worsening slump in luxury goods sales, he said, “The sales will come back, but how will they come back? Will they come back in the same way, where people walk into retail stores? I doubt it.”

Richemont had just hired an executive from Google, he said: “We’re appointing new people from e-commerce to be ahead of that curve.”

Compared to other Swiss luxury-watch firms, Richemont may be ahead of the e-commerce curve. But compared to watch companies competing below $1,200 in the American mid-market, including Swiss ones like TAG Heuer and Movado, most Swiss luxury brands are far behind.

The U.S. market is ground zero for e-commerce. The rise of e-tailing giants like amazon.com is drastically disrupting America’s complex brick-and-mortar distribution system.

The watch industry relied on an array of retailers: independent jewellers, regional and national jewellery chains, brand boutiques, department stores, mass merchandisers, outlet stores, etc. Now, though, brick-and-mortar casualties are mounting. Malls are dying; once mighty Macy’s will close 100 stores this year; and 1,269 jewellery stores closed last year, according to the Jewelers Board of Trade. Consequently, mid-range watch firms had little choice but to embrace e-commerce years ago. Virtually all of them sell their watches on their own websites and apps. Many have a network of authorised e-commerce dealers. Citizen, for example, lists 88 “authorised internet retailers” on its U.S. website.

Moreover, e-commerce may be the solution to what many U.S. watch executives consider a serious emerging threat to watch sales: Millennials and the generation behind them, Gen-Z. These youngsters are famously immune to the lure of the wristwatch. They don’t value traditional brands or traditional modes of shopping. So how to reach them?

Electronically, via social media. There they discover products and brands that appeal to them. Including watch brands, like

California-based MVMT, founded by two American millennials. Priced between $95 and $160, MVMT is a mass-market, not a mid-range brand. But let’s see where they are in five years when the founders turn 30.

3 | Grey market The rise of e-commerce has exacerbated another distinctive feature of the U.S. watch market: the thriving grey-market sector.

Swollen inventories in Asia due to the slowdown in China and the collapse of the Hong Kong market has led to an avalanche of grey-market merchandise in the U.S. Maurice Goldberger, owner of Chiron Inc., in Montreal, is one of the watch industry’s biggest and best-known watch closeout specialists. “2016 got off to a flying start and the market is expected to grow over the next few years,” he told Switzerland’s swissinfo.com last year. “Our growth is particularly strong in North America.”

No surprise there. The size of the American market (Switzerland’s second largest market) and its deeply engrained discount culture have long made it a destination for closeout watches. Last year, though, the influx of grey goods rose to alarming levels. “It’s the worst I have ever seen,” one veteran jeweller told me. Boom times for transhippers are a bane for authorised retailers. With unauthorised e-tailers like amazon.com, eBay, jomashop.com, and others offering tons of new watches at deep discounts, it makes it harder for authorised retailers to move their own bloated stock.

Or to move new goods. At SIHH in January, Baume & Mercier unveiled a new men’s quartz analogue Classima priced at CHF 890 on a leather strap and CHF 1,090 on bracelet. The watches are “priced to sell”, particularly in the United States, B&M’s top market. On amazon.com, however, you can buy a men’s quartz analogue Classima 8485 from the existing collection for $640. Indeed, a search of amazon.com shows quartz and mechanical watches from a surprising number of Swiss brands selling at bargain basement prices aimed directly at the mid-market buyer.

Can America’s mid-market absorb all the new models flowing into it? Over time, yes. But not this year. With watch pipelines still full, for American watch consumers, it’s still a buyers’ market.

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SS C A N E TI O N

TH C E H M SI I I N G X D TH RE TIM D ES O E AT E L F P E S E E FR O R C A PU TH LA N L A MA

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China has a middle-class population of 350 to 400 million people, over six times the population of France. Those earning 120,000 RMB or more are considered to be part of the middle class, and according to Chinese law, must declare their yearly income.

We can further divide the middle classes into three segments: from 120,000 to 200,000 RMB; from 200,000 to 400,000 RMB; and 400,000 to 1 million RMB for the upper-middle class.

Beyond this level, we move into the upper class.

Another important distinction is the distribution of these different segments of the middle classes, who are for the most part city-dwellers. First-rate cities, like Shanghai, Beijing, Shenzhen, and Canton, are home to most of the second and third segments. The middle classes in second-rate cities are from the first and second segments.

RANKINGS Regarding the brands most sought-after by the upper-middle classes, the studies largely agree: Omega is clearly no. 1, in second and third position are Longines and Rolex or Rolex and Longines respectively, Tissot is fourth, Citizen and IWC are fifth, and Rado is sixth. While Cartier comes top for jewellery, the brand is ranked eighth for watches.

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Urban density and property price rises The density of the middle classes in top-rated cities is the result of constantly rising salaries that have increased by as much as 8, 15, and even 20 per cent in certain sectors over the past seven to eight years, primarily affecting the tertiary sector. These dramatic rises can partially be explained by the cost of living in cities such as Beijing and Shanghai, which is now higher than in Western cities, as a recent comparison by the Financial Times has revealed.

The property market has seen considerable rises. In Shanghai, for example, the price per square metre has gone from 4,000 to 5,000 RMB in 2000-2001 up to between 80,000 and 100,000 RMB today. (It should be noted that these prices include a compulsory fee of around 30% for communal areas). These rocketing prices demonstrate the incredible accumulation of wealth by this significant section of the Chinese population.

Today, spending 2 to 3 million RMB to buy a home has become commonplace. That being said, in China, as in the West, social differences have been exacerbated.

The majority of wealth is concentrated in top-ranking cities – where land is now becoming scarce – as these are magnets for growth, where you can find more opportunities, where you can get rich, and where the money is. On the other hand, third- and fourth- rate cities are experiencing serious difficulties. There has been a lot of speculation, meaning that many new buildings now lie totally empty.

Retail property is also noticeably suffering, following rapid changes in purchasing habits. We’re now witnessing a real explosion in e-commerce. While the majority of sales take place in a select few shopping malls, many others are suffering badly, with some closing altogether. Although it has to be said that in some places shopping malls are to be found every 100 metres. Department stores are also seeing a real loss of interest, and business has slowed or come to a total stop for many single-brand stores.

Mechanical watches — the absolute priority Three recent studies on watch-buying in China have revealed interesting insights into the market, all drawing similar conclusions. They were conducted between 2014 and 2015 on very large samples of the population between 18 and 55 years old. According to the results, the Chinese love watches and nearly 50 per cent of those questioned said they had more than three, and between 21 and 25 per cent have up to five.

As for the reasons behind their purchase choices, one-third said the brand is the most important factor, while another third prioritises style, materials, and the movement, with a mechanical movement an absolute must-have for 85 per cent of those surveyed. Only 25 per cent prioritise price, and the remaining 5 per cent focus on after-sales service.

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SMARTWATCHES The Chinese love innovation, but when it comes to watches, it’s clearly not what they’re primarily looking for. 86 per cent prefer the mechanical watch and fear that the smartwatch, while trendy, will quickly become outdated. 55% say that they will definitely never buy a smartwatch. 32% are unsure, saying they will see how smartwatches evolve but don’t intend on buying one in the immediate future.

After-sales service, a major factor Anti-corruption and anti-extravagance campaigns have upset buying habits. Now, the Chinese buy for themselves, and we can see that purchases from 50,000 to 100,000 RMB have decreased. Tastes have also been affected. Consumers are less partial to brands seen as being ‘for the rich’, and are more interested in simplicity and refinement. When selling to the middle classes, the notion of quality is important, of course, but the word ‘timeless’ doesn’t mean much to the mid-range Chinese consumer. It needs to be ‘fashionable’, but not so much that it risks becoming quickly outdated. Elsewhere, brands need to be aware that the quality of after-sales service is an increasingly important purchasing motivation. Many consumers don’t trust Chinese watchmakers’ after-sales service. They fear being tricked, and that original gold components will be switched with fakes without their knowledge.

And if they have purchased a Swiss watch, they often don’t know who to send it to, who to trust for after-sales services.

It’s a major issue. They also prefer mechanical watches, since these are expensive and open doors to the upper-middle class and the country’s wealthy elite. It’s a sign of success. For men, social status is the primary concern.

Women care more about design and fashion, yet a mechanical movement is important to them, too. There has been a significant increase in women’s purchasing power and we are seeing more and more women collecting watches for themselves.

Out of 100 watch purchases in China, 40 per cent are made by women. Just three years ago, it was only 27 or 28 per cent.

Finally, we must not forget that Chinese consumers learn fast, very fast. Online, through social networks, and on their travels, they seek out information, make comparisons, search for more personalised styles, and now even look for niche brands. Chinese watch lovers have truly come of age.

Lugas Pho Pho ©Drawing Architecture Studio | www.d-a-s.cn

According to a recent study by Bain & Company in the fourth trimester of 2016, watch purchases in China have decreased in value by 8 per cent, but we’re seeing a rise in private and local-level purchases of luxury products. Don’t forget that since 1 April 2016, all luxury goods (over 10,000 RMB) purchased abroad must be declared to customs and taxed at 60 per cent. Local purchases are also taxed at about the same rate (20 per cent customs duties, 20 per cent luxury products tax, and 17 per cent VAT).

As for internet purchases from foreign websites, you are exonerated from customs and VAT up to 20,000 RMB. Above this amount, you must pay the taxes in full.

Another interesting phenomenon is the development of duty-free stores selling mid-range watch brands within China itself. In one of these stores, a Chinese person coming back from abroad can make a purchase of up to 5,000 RMB tax-free. The idea is to encourage the consumption of goods within China itself. That said, I anticipate that import taxes will be reduced for watches below 10,000 RMB. But not for luxury watches above 100,000 RMB. But this category represents less than 15 per cent of watch purchases, while 60 per cent are for less than 10,000 RMB, 20 per cent below 50,000 RMB and 6 per cent are between 50,000 and 100,000 RMB. Around 80 per cent of Chinese consumers say they prefer buying Swiss watches. But notably, for them it’s the brand’s Swiss origins that count, and not about being Swiss Made, as the latter is not a key factor in their eyes.

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and manufacturer) are also internationally known – and all are privately owned apart from Union (Swatch Group).

To various degrees, these offer exclusive internal manufacturing capabilities too, yet also take advantage of sourced Swiss movements.

But it would be a mistake to assume that the growing success of locally manufactured watches in the midprice segment has negatively influenced the demand for imported Swiss timepieces. Indeed, Helvetic shipments of watches with a per-piece retail value of between €750 and €5,000 have dramatically diminished over the last ten years, from 37.6% down to 29.9%. The decline, however, began only Germany is considered a conservative and demanding in the aftermath of the Lehman Brothers crisis (2009), as watch market. Due to its overall robust economy, in in 2000 the proportion of imported mid-priced watches times of crisis the watch market feels negative impacts amounted to 37.0%. In comparison, total global Swiss exports less. During good times, however, its dynamism is more for the mid-range shrank from 52.7% in 2000 to just 29.0% last measured. Consumers generally focus on high-end watch- year. Hence, the global squeeze of the mid-priced segment making (complications, movement finishing, brand au- seems to have hit Germany much later than it did elsewhere. thenticity). And since German reunification prompted Nevertheless, the current watch crisis has also taken its toll the astonishing renaissance of local watchmaking, espe- on German watch consumers, who increasingly seek out cially at the traditional manufacturing site of Glashütte, either high-end watchmaking or cheap offerings, for better high expectations regarding quality and innovation have perceived value for money. And the trend is not over yet. been cemented further.

Recent representative market research indicates that those consumers who would be ready to spend For Switzerland, Germany’s importance as a maximum of €2,500 for a watch continThe current watch an export market has remained relativeue to be price sensitive. When asked about ly stable over the last decade, oscillating crisis has also taken their purchase intentions for the next two between 4.2% and 5.6% of total business. years, in 2013 36.2% said they planned to its toll on German In 2016, the country ranked as the 8th bigbuy a watch retailing above €1,000, while gest destination for Helvetic timepieces in 2015 only 31.5% were ready to do so. Yet, watch consumers, (source FH). for watches with a selling price of less who increasingly Of all German brands positioned in the than €1,000, the percentage grew withmid-price segment, Nomos especially has seek out either high- in two years from 63.8% to 68.5% (source been able to create an impressive success Responsio Watch Monitor). It could be end watchmaking or interpreted as a hopeful sign that, in the story in the last 25 years. Just shortly after the wall came down, the company was the first same study, buying intentions had imcheap offerings. non-local one to be founded in Glashütte proved by 20% among young consumers in the former East Germany. Since then, aged 20 to 29. However, this demand can Nomos has continually invested resources into in-house probably be linked to the phenomenon of smartwatches. manufacturing capabilities, and today is able to produce In 2016, this relatively new horological product category, complete movements internally (including assortments). competing with the low and mid-price segments and – surRetail prices range from €1,000 to €3,000 for timepieces with prisingly – virtually unchallenged by the traditional watch steel cases. Watchmaking authenticity, a clear Bauhaus- industry, is said to have sold 9 million units, which would inspired design, attractive pricing and discipline in brand- represent roughly 30% of total Swiss exports in terms of ing have been reasons for strongly growing global demand. quantity (source Canalys).

But Nomos is not the only German player in the mid-field price category. Among a list of around 20 more companies, Junghans, Mühle, Sinn, Tutima, Union and Wempe (retailer

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What has caused the decline of the mid-priced segment in Germany and elsewhere? And can it recover? What needs to be done to make this revival happen?

1. trading down to avoid the mid-price segment; 2. trading up beyond the €5,000 MSRP threshold; or 3. holding on to the segment.

Holding the segment would make most sense because this is where the brands’ credibility is highest. Yet this asks for disciplined strategic actions: offering attractive, emotional branding; creating new (and smart) watch functions; starting to sell online; and, of course, introducing professional cost management and streamlining business procedures for higher efficiency.

But there is no easy or speedy road to success. The problem of the mid-price segment in Germany is a global one. Up to 2020, consultancy firm The Bridge To Luxury TBTL forecasts global annual growth rates at a moderate 2-4% only. The industry will continue to face a period of tough restructuring. These are the times entrepreneurial courage is needed to invest in countercyclical measures with the goal of building up a new, younger customer base – regardless of country, regardless of price point.

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JUNGHANS: CLEVERLY FILLING THE GAP OF MIDDLE CLASS WATCHES The largest German brand in terms of volume (60,000 watches per year) has taken advantage of a “vacuum” left by Swiss brands in the mid-range segment. Its models, carefully priced from 500 to 2,500 euros and designed with a vintage Bauhaus-inspired flavour, are a must for the middle class, in its stronghold of Germany but also more and more outside (36% of sales were international in 2016), particularly in Southern Europe and Singapore last year.

Indeed, the Schramberg-based brand, founded more than 150 years ago and independently owned, recorded a +4.3% growth in 2016 (+9% overseas). But its CEO Matthias Stotz expects tougher competition ahead, as Swiss brands are trying to reposition themselves in more moderately priced areas, after years of inflation. Excerpts.

“We feel good within the ‘middle-range’ brand categorisation, because the middle class is made of people who earn their money with their own work, so they look for reliable products, they have no money to ‘waste’ and they have to think carefully about their investment.”

“Lately, there have been very interesting business opportunities for us, mainly for two reasons. First, many brands upgraded their prices these last years, so we have been ‘filling the gap’ of middle class watches. And the style of our watches, influenced by the Bauhaus movement, is very appreciated nowadays. When we re-launched the Max Bill series in 1997 and the Meister in 2011, the ‘retro’ style was not as much praised as it is today. We are lucky that we match both price and style expectations of many customers today.”

“On the other side, we feel that some Swiss brands from the higher level want to drop their prices to come back to the middle range, so the competition will be higher in the future. It will be challenging but we are very strongly established within the middle price range, where we offer great value for money.”

Xi Zhi Men ©Drawing Architecture Studio | www.d-a-s.cn

In general, mid-priced products are believed to be fair, honest and reliable. Consumers who do not have time to venture into an exhaustive process of research limit their risk of buying the wrong product by taking the “middle way”. Yet the danger of positioning a brand between the extremes is that it can be attacked from both sides. The renaissance of in-house-developed and -produced mechanical movements has pressurised the credibility of the midfield from above. By sourcing largely standardised and widely available movements from ETA and others, even strong individual efforts by the midstream brands to become a true “manufacture” look inauthentic. And with the current global economic downturn, pressure from the top is intensifying as brands with higher watchmaking reputation are trading down to the neighbouring lower price segment. At the same time, the smartwatch has started to offer new functionality at attractive prices, attacking the segment from the bottom.

The mid-priced segment of the watch industry unfortunately increasingly serves as a meaningful business case for being “stuck in the middle”, and probably rightly so. In terms of product innovation, creative branding, better after-sales service, etc., the brands concerned have done too little to maintain consumers’ trust. Even worse, recent price reductions and grey market activities have added to the problem. The mathematical rule is clear: after a price reduction of 10%, a company manufacturing with a gross margin of 50% must increase sales by 25% to maintain its former profitability. Obviously, under current market conditions, this is not realistic. Hence, cost pressures are rising, marketing budgets are cut further, sales are dropping instead of rising – and consequently a downward spiral is set in motion that will endanger a substantial number of companies.

Brands and retailers in the mid-price segment need to find solutions to the challenge. The basic options are:

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The Japanese market is relatively stable and mature. Regardless Breitling Japan is the best example: the brand has continued of economic trends, luxury watches have been constantly to educate store staff carefully, so that their loyalty is now exappreciated in the country. tremely high. Well-trained Breitling sales personnel are one However, it is worth noting that the middle range and the of the reasons that the Japanese market is always second or upper middle range markets are currently undergoing a ma- third to the brand in terms of sales volume. jor change. Specifically, the Grand Seiko range of watches by Another likely reason for specialty stores’ strength is the Seiko is beginning to occupy a large position in this segment existence of “interest-free loans”. The biggest factor in con– where Rolex and Omega traditionally stant sales is long-term interest-free loans had an overwhelming position. of up to 60 times or now 120 times.

Well trained staffs But as these two giants are reducing their However, well trained personnel and “inand “no interest number of stores and asking them to have terest-free loans” never stimulate enthumore inventory, a growing number of spesiasts if the watch itself is not attractive. loans” never stimcialised watch retailers (and not only departIn 2016, the Japanese market recorded the ulate enthusiasts if ment stores) are interested in a partnership world’s best sales of Zenith, but the drivwith Grand Seiko. Seiko executives may not ing force is not lifestyle marketing but the the watch itself is admit it, but their breakthrough is linked to legendary “El Primero” movement. not attractive.

Rolex and Omega’s strategies. The brand has Currently, many watchmakers like Jaegeralso convinced the market of its products’ LeCoultre, Zenith and IWC are focusing advantages for more than ten years now, another important on lifestyle marketing. In a mature market like Japan, there factor in earning the trust of conservative consumers. may be little possibility of success. Japanese consumers are Indeed, as a feature of the Japanese market, many luxury watch- relatively knowledgeable and it is necessary that watches are sold in department stores, like in the United States. makers show clearly what they do better than competitors, On the other hand, watch specialty shops have shown lots especially towards customers that can buy middle range of efforts, refining their knowledge and presence, in order watches. This is not a feature unique to the Japanese marto establish a unique and strong position on the market. ket, but more and more to the whole of Asia. Education is Highly trained store staff are generally trusted by watch con- still the key to conquer Japan and the Asian markets! noisseurs and their advice has an even stronger influence on purchasing than websites and magazines.

San Li Tun ©Drawing Architecture Studio | www.d-a-s.cn

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SEIKO: “WE SEE ONLY GROWTH IN THE SALES OF OUR HIGHEST END WATCHES, LIKE GRAND SEIKO.” “Middle range” means different things in different contexts. For the Seiko brand, we think of middle range as being from around 500 to 2,000 euros, where our best mainstream collections are priced. It is in this area that we see consumers today seeking out exceptional watches that offer affordable luxury and unique functions. It is the biggest growth area of the market.

From the media and from much of our industry’s communication, it can sometimes seem that the only good watches are very expensive. At Seiko, we profoundly disagree with this misconception.

We are proud to offer watches at every price point that offer great functionality and give lasting pleasure to the buyer. We always remember that, for the vast majority of people, 500 euros is a large amount of money to spend on a watch and that, for the person who pays this amount for one of our products, such an amount could be a much more important investment than 10,000 euros might be to a very wealthy person.

The watch buying public is very smart and well informed. If any brand tries to gives itself an image that is not supported by the quality of its watches, the public will not accept it for long. Seiko believes that true quality will always win in the end and that true prestige and a superior image can only be earned by the quality of the product offered.

Economic cycles of course affect our business, but we do not see a crisis in the attitudes of watch lovers in Western markets. We see that watch buyers are smarter than ever and that they seek greater tangible value in the watches they buy. Realism has always governed the way that we communicate with our customers, so we see no reason to change the way we design our collections or talk to our customers. Perhaps the trust that Seiko has earned over many decades is helpful in these nervous times.

The vast majority of our sales have always been of steel watches and, if we offer watches in precious metals, they are usually part of limited editions. We have no need to change our approach Contrary to Swiss export statistics, we see only growth in the sales of our highest end watches, like Grand Seiko. Our relations with retailers are indeed evolving, but only in the sense that they see that Grand Seiko is a watch that offers remarkable value, undisputed quality and that has a very bright future. More and more of the top retailers in Western markets are showing interest in the brand and we are very pleased to see this trend develop.

The connected watch is the most important development in our industry in decades. It is still too early to assess its exact impact, but we are certain that many consumers will buy them and will like them. The connected watch is here to stay. Seiko believes that all its watches should be long-lasting, fully autonomous watches that deliver real-world benefits that consumers really need and perhaps the global success of Astron is a sign that the consumer agrees with us. We have the technological resources to make a connected watch and, if we decide to do so, it will fit with the high standards that our public demands.”

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Of the three major Swiss watchmaker groups, only the Swatch Group has fundamentally industrial origins.

While Richemont and LVMH have, with a forced march, gradually caught up some of the ground between them and industrialisation, their tropism is still the luxury segment (with the exception of TAG Heuer at LVMH, which is making major inroads into the medium range, and Baume & Mercier at Richemont – see below).

The historical and geographical heart of the Swatch Group lies in the town of Biel/Bienne, which developed into a watchmaking centre relatively late, around the middle of the nineteenth century. While Geneva and the Joux Valley specialised for centuries in top-range, “artisanal” watches, the Bienne watchmaking sector was from the outset a highly industrialised affair and thus geared to mass production. In other words, to medium-range watches.

This historical industrial heritage can be observed at the heart of the Swatch Group, the different brands of which “are highly disciplined”, as Rado CEO Matthias Breschan explains. Each of the Group’s brands covers a precisely delimited territory: “To the Swatch Group’s way of thinking, there’s the entry-level range, the medium range, the high-end range and the prestige range. That way, the positioning of the Group brands is clear at all times. That said, the different segments are defined by price: the entry-level range is priced at under CHF 1,000 and the medium and high end between CHF 1,000 and 5,000, while the prestige range is anything above that,” he explains.

So, the group’s spread consists of a rock-solid portfolio of brands which are carefully “terraced” to cover the entire, broad, medium-range spectrum: Certina, Tissot, Mido, Longines, Rado and, right at the top, Omega, which has one foot in the upper medium range and the other in the high-end range.

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TISSOT, THE FLAGSHIP OF THE MEDIUM RANGE Tissot is without any doubt the Swatch Group’s most iconic mid-range brand. Its CEO François Thiébaud recently responded to questions from Europa Star.

VERBATIM

• By going for quantity, you can create an industrial tool at the service of people!

“With an output of four million watches a year, Tissot is an industrial brand, but our objective is and has always been to produce quality watches at affordable prices. Our products are situated in the 400-1,200 franc range and our annual output is around two million quartz watches and two million mechanical watches. We have 350 boutiques and are represented in some 13,500 outlets worldwide.”

• Gold watches for the price of silver “We make affordable luxury. Like the slogan says, it’s a gold watch for the price of silver! One example of this philosophy is that in 1998, not long after coming to Tissot, I wanted to introduce a sapphire crystal for the watches, but a crystal cost 22 francs per piece. To keep the price of a model down to 295 francs, I needed a crystal at 17 francs. Well, Nicolas Hayek Sr. came down on our side! Today, a sapphire crystal costs 5 francs. By going for quantity, you can create an industrial tool which is at the service of people! And the quality is no lower. Thanks to automation, the welds of a Fiat have a better finish than those of a Ferrari!”

• The strength of the Swatch Group is that it covers all segments “Everything is relative when you talk about price or social class.

Sometimes, you don’t make the right comparisons. We’re still number one in terms of volume in China. But those who used to earn 200 francs yesterday might earn 1,000 francs today and can go on to another brand of the Swatch Group. Our strength is that we cover all segments.

The intermediary classes are in the process of increasing their purchasing power. And when that happens, things that used to be rare become banal. The advantage of our watches is that they’re mobile: our playing field is global and we can move from one market to another. And people are a bit fed up with extravagance at any price: 60 percent of the watches we sell are classic in style. There’s a return to greater simplicity.

A blue dial is all very well, but does it go with all the clothes you wear on an everyday basis?”

• The active class “I prefer to talk about the “active” class, rather than the middle class.

It’s the active class that makes society work, all those people who really keep the world ticking over every day. They shouldn’t be forgotten – a society made up of only rich and poor can’t function. We have to come back to this active class, which creates businesses, innovates.”

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THE RETURN TO MINIMALISM IS GOOD NEWS FOR RADO Rado, the pioneer and grand specialist of ceramic watches and a historically strong brand in China, is something of a special case in the medium range: few other mid-range brands place their stakes primarily on design and materials.

An interview with Matthias Breschan, Rado’s CEO. VERBATIM

• The important thing is the relationship between price and substance “The pertinent thing in my view is to know what you’re offering: it’s the relationship between price and substance. In the past 15 years, we’ve seen a lot of repositioning. But it was often just a repositioning of prices, with no adjustment to the substance.

That‘s dangerous, because it’s a kind of deceit, it’s cheating! The brands that indulged in that kind of manoeuvring were the first to suffer.”

• The average selling price has fallen “Rado is situated between Tissot at the bottom and Omega at the top. Our prices range from CHF 1,000 to CHF 3,000, with a few models at CHF 4,000. That was true of the past ten years, and it will be of the next ten to come. Our price range hasn’t changed: it is situated between CHF 1,000 and 3,000. But what has changed these past two or three years is that sales have been better at the lower end of the range than at the upper end.

The market is more price-sensitive and the average selling price has fallen.

But this average price differs from region to region. In China for example, which is a market of automatic watches, it’s different from Europe, the United States or Japan, markets where people are more inclined to buy quartz chronographs.

The Basel trade fair attracts numerous top-range watchmakers.

In the midst of all them, Rado almost looks like an entry-level brand. But let’s not overlook the fact that CHF 1,000 is a lot of money for lots of people! We address the middle class – which has grown hugely in emerging economies like China and elsewhere.»

• Investing efforts in the look “It is true that current trends are more for a pared-down, minimalist style than for watches with character. And that’s a good thing for Rado. Others try to set themselves apart through the movement or complications. We don’t: we invest our efforts into the look – the materials and design. But as luck would have it, today we’re seeing ceramic used by lots of brands, even in the top range! So over the past few years, ceramic has grown into a noble material, and that’s helped us a lot.”

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• The group’s industrial strength “Innovation is and has always been one of our top priorities. If you stop innovating, you’re dead… And incidentally, Rado has launched highly innovative products, not only as far as the materials are concerned but technologically too, such as the Esenza Ceramic Touch, which instead of a crown has sensors in the ceramic case. This kind of innovation is a good example of the group’s industrial strength: the movement is made by ETA, the electronic components were developed at EM Microelectronic-Marin, the ceramics at Comadur, and so on. It’s crucial for the Swatch Group to conserve this kind of industrial fleet in Switzerland.

As for any potential projects in the field of connectivity, the Swatch Group has just announced a partnership with CSEM of Neuchâtel to develop an ‘operating system’ for connected objects. That’s of interest to Swatch, Tissot and Hamilton first and foremost, but to Rado too, of course.”

MIDO – “HUGE” GROWTH Less well-known in Europe than Tissot, Mido is highly reputed and occupies a historically strong position in Latin America –a position that the brand, situated in the CHF 700 to CHF 3,000 price range, is seeking to extend to other regions of the world, notably Asia. Franz Linder, CEO of Mido, answered our questions.

VERBATIM

• The Swiss middle class is not the same thing as the Indonesian middle class “Mido addresses the middle classes. But you have to remember, for example, that between a teacher in Switzerland and in Indonesia, although they’re both middle class, the difference in purchasing power is huge. A teacher in Switzerland can buy a Swiss watch without any problem, while in Indonesia they have to make far more sacrifices, as it represents more than a month’s salary.”

• Customers want more – and more – for their money “Recently, customers have begun looking more and more closely at what they get for their money. This preoccupation with the right ratio between price and quality is nothing but an advantage for us. And recently we’ve felt a reversal in our favour. At one time, when we looked around for retailers many of them wanted to sell only very expensive watches. But things have changed these past few years. There are numerous high-end retailers today who are looking to round out their offer with affordable watches because they also bring in custom. The winds of distribution have turned in our favour.”

• We sell timeless timepieces

CERTINA: SPOTLIGHT ON SPORT Completing the Swatch Group’s would-be exhaustive mosaic of mid-range brands, Certina fills the space marked “sports watch”. A large majority of chronographs suited to all disciplines, extremely reasonable prices and – fashion oblige – a vintage line called Heritage. An interview with Adrian Bosshard, CEO of Certina.

San Li Tun Noodle Shop ©Drawing Architecture Studio | www.d-a-s.cn

“We specialise in mechanical watches. We sell timeless timepieces that can survive through several generations. That’s one of the reasons for our success. We’re in the long-term business.

Smart watches are short-lived. Up to 200 francs, that’s impulse buying, there’s a market for that. But spending 1,000 francs on something you use for two years – I don’t think that’s really a viable business model.

If you look at the 25 million watches Switzerland exports compared with the world population, there’s still plenty of room for growth, volumes, besides smart watches. Looking at our sales, Mido is still gaining market share. We’ve experienced huge growth these past few years because we’ve remained true to our principles: offering the best watches at the best price. Our automatic watches offer extraordinary quality for price. And customers are looking first and foremost for quality watches with a sound after-sales service.”

• We don’t change strategy at each glitch in the economy “A product’s finish, quality control, communications, distribution and customer service have to be flawless, and the brands that succeed in maintaining all these competencies to near-perfection succeed in winning customers’ hearts. And our strategy doesn’t change at each glitch in the economy: both the group and our brand always work with a view to the long term.”

• Focus on opportunities

VERBATIM

• We sell a lot of watches in countries where the average income is a tiny percentage of the average Swiss income “The terms ‘entry level’ and ‘medium range’ reflect the way of thinking of watchmaking professionals. Since Certina works principally in the CHF 300-CHF 2,000 price segment, our ambition and strategy is to offer premium products in that price range: a high-quality, Swiss-watchmaking product at a reasonable price. For many Swiss customers, a price situated between CHF 300 and CHF 2,000 still represents a lot of money, so we have to remember that we sell lots of watches in countries where the average income is a tiny percentage of the average Swiss income.”

• It’s crucial to generate volumes “In the Swatch Group, we never neglect entry-level and mid-range products, because we’re aware that a great majority of the global population buys watches in the price segment below CHF 1,000.

A brand like Certina proves that it is possible to offer major innovations and Swiss watchmaking skills in that segment too. These skills allow us to generate the volumes that are crucial both from the industrial production perspective and from that of footfall in our retail outlets.”

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“Whatever the economic changes, there are always opportunities and risks. We focus on the opportunities, in other words, even if a local market is shrinking in comparison with the economy as a whole, there will always be customers in search of a product with the kind of exclusive, specific DNA that we offer – that is, a broad collection of watches that are both sporty and sleek. But it’s only befitting that a brand with a history going back to 1888 should also have a Heritage watch collection. Sales trends for both these collections are currently excellent.”

• The watchmaking industry is cyclical “Smart watches are not impacting us, because you can’t compare Certina with the electronic giants. We aim to sell emotion, as well as the horological values of product longevity and durability, not just functions. Watchmaking is, and has always been, a cyclical industry. Since I started twenty years ago, watch exports have more than doubled. That’s why I feel it’s an exaggeration to talk about crisis. Distribution is production’s other half: you have to keep a cool head when the economy goes into overdrive, and when the going gets tough be brave in the knowledge that the economy will soon bounce back. That’s why Certina is able to perform well both when the economy is buoyant and when indicators are down.”

A time for pioneers.

Not only does the Meister Driver Day Date display the time, it also evokes an entire era: the early years of modern motoring, a time of great technological pioneers. Its appearance is inspired by the design of historically-significant classic cars and their dashboard instruments. Like no other watch, the Meister Driver combines the distinctive charm of these automobiles with our passion for mechanical timepieces. www.junghans.de

M RG C ID E T LA D : SS LE ORIS, THE DEMOCRATIC PATH

“Yes, we’ve increased our market share in recent years! That’s partly down to our products; and partly because consumers no longer want to be frivolous with their money. The drop in prices at some of our competitors has made customers furious, because they paid full price for their watches.”

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• Customers no longer want to be frivolous with their money

Historically, Oris has always focused on a ‘democratic’ offering.

Established 113 years ago with the aim of producing high-quality mechanical watches for mass distribution, Oris produced up to 1.2 million watches a year before the quartz crisis disrupted the entire industry. Taken over in 1982 by two of its former directors, Oris immediately stood out by focusing only on mechanical watches when everyone else used quartz. Its hugely successful slogan explains its ambition: ‘Real watches for real people’. Rolf Studer, co-CEO of Oris.

VERBATIM

• Products that make sense at a price that makes sense “I don’t really like the term ‘mid-range’. It’s purely theoretical. 2,000 francs for a watch is a lot of money! Defining that as mid-range is almost arrogant.

You can’t lose sight of the fact that it’s a purely Swiss definition – in other countries, 2,000 francs is whoa! The last time I went to the United States, I spoke a little with the immigration officer. When I showed him my 3,000-franc watch, he told me: “I could never afford one like that. Or maybe in 20 years’ time. For us, that’s top of the range!” It’s all subjective, you have to put yourself in the customer’s shoes!

That said, if you’re asking for a definition of mid-range, I would say it’s around 1,000 to 5,000 francs.

The phrase ‘accessible luxury’ isn’t really accurate – if it’s accessible, then it’s no longer luxury! I prefer to say that we have products that make sense at a price that makes sense.”

• Staying credible “The most important thing is to offer good value for money. It applies just as much to Patek Philippe as it does to us!

We are really pleased to be in this segment, really pleased that we weren’t too extravagant with our prices when we could have been, and really pleased to not have to lower them today. In a word, we’re credible.”

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• A global price structure “We have a global price structure, which is of course influenced by our competitors. Except for Great Britain, where we increased our prices by 10 per cent eight weeks after Brexit. Many waited a long time before following suit.”

• Functions that make sense “Our customers ask for functions that make sense, useful mechanical complications. Other brands focus more on appearance and embellishments. When it comes to us, we haven’t changed. On the contrary, we have to continue what we think is right for the brand, and not be swayed by particular circumstances.”

• No hybrid products “They’re not a competitor for us. Quite the opposite: what would be dangerous is if young people stopped wearing watches altogether.

Smartwatches might encourage them to wear one.

As for making hybrid products, we have no plans to do so. The mechanical watch is an emotional product, and we only make pure mechanical watches.”

• The web is bigger than our stores “We haven’t made any changes regarding our retailers, but we have reviewed the allocation of sales resources for our stores, traditional points of sale, and online sales. For several years, we have been supporting retailers who also have a web presence, for example Tourneau in the USA and Goldsmiths in England.

We have to acknowledge that the web is bigger than our stores.

But we want to maintain control over certain things: we can talk directly with customers online, and direct them to our stores for after-sales service.

Not all retailers are online yet, but we can already see a clear difference. And we are also thinking about other sites that aren’t owned by retailers.”

Xi Ba He ©Drawing Architecture Studio | www.d-a-s.cn

LOUIS ERARD, THE TRIBULATIONS OF AN INDEPENDENT WATCHMAKER “More than a brand, we are Made in Switzerland at a reasonable price,” Alain Spinedi likes to say, after successfully relaunching Louis Erard, a brand founded in 1929, with a small group of investors in 2003. Since then, he has faced the market as an independent watchmaker, often at a handicap, to bring his beautiful range of classic, understated, and superbly-designed watches to this difficult market. Alain Spinedi, CEO of Louis Erard.

VERBATIM

• The middle classes have less money now than in the past “Louis Erard is positioned between 500 and 3,000 CHF, and the latter figure is well into the upper mid-range. When I revived the brand in 2003, at first I positioned us between 600 and 2,000 CHF, which is the true mid-range. But obviously, this definition varies depending on the market. However, I have neither the resources nor the staff to conduct sociological analyses in the various countries where we sell our watches. I concentrate more on the exchange rate: the euro has lost almost 50% of its value, and the rouble is worth three times less than before! In Russia, where we were well-positioned, sales have waned. The product mix – with quartz watches – has also changed. The middle classes have less money now than in the past. In Asia, on the other hand, many young people from the middle class are willing to spend money on a mid-range watch. My definition of this segment applies to Switzerland. In Italy, where the minimum wage is close to €1,000 in the south, things are different.”

sivity within the segment. But obviously, that doesn’t work in every country. For that to work, Louis Erard needs to remain a niche brand.

The demand for limited editions is ever greater. For example, in the Middle East, a regulator is not a mid-range product, but rather topof-the-range. But as a limited edition, it can work very well.

That’s what we call accessible luxury, and this idea perfectly describes Louis Erard. Luxury means a certain rarity. However, many top-of-the-range brands inundate the markets! At 1,200 CHF, our products can certainly be considered luxury. We incorporate elements of sophistication.”

• Local strategies “More and more, we are prioritising a local strategy rather than an international one. We play around with prices and models. But obviously, that requires far more work with our partners. And so in Italy, where we are now distributed by Eberhard & Co, we sell more ladies’ watches than men’s.

Before moving into the watch industry, I worked for Bolex video cameras. In this sector, there were very precise market studies. However, none of that existed in the watch industry, apart from export statistics. In this field, you choose your direction using the understanding you have of such and such a market. This naturally leads to discussions with partners, to understand on-the-ground realities.”

• Classic style and coherence “We have always worked with a classic style, and we’ve always remained coherent. Recently, however, I released a chronograph that’s a bit sportier than the others, to try and attract a younger audience. But that doesn’t mean that we’re going to go totally crazy! I have nevertheless noticed that we may have become too similar to our competitors, a bit monotone. Now, am I expanding the range to break this monotony or to counter the drop in sales? I think something was missing from our collections.”

• An essential segment

• Quartz

“The mid-range harbours great potential! I have always stayed in this promising segment. The watch industry must imperatively resemble a pyramid. Otherwise, we’ll return to the situation we saw in the 1980s.”

“We make approximately 75 per cent mechanical watches and 25 per cent using quartz. Quartz has enabled us to expand our clientele in the Middle East, which now makes up 30 per cent of our sales. In Switzerland, on the other hand, we don’t sell a single quartz watch!

Nor in Malaysia. It’s all down to reputation.”

• Accessible luxury “Louis Erard produces fewer than 100,000 watches a year. So, that’s not what I would call mass production. It allows us a certain exclu-

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THE EXAMPLE OF BAUME & MERCIER While in the past many looked down upon Baume & Mercier as though its reasonable prices made it something of an ugly little duckling come to frolic in luxury waters, all eyes were on Richemont’s ‘mid-range’ brand at this year’s SIHH. Presenting a perfectly-balanced range available at ‘fair’ prices and well-prepared to survive the troubled waters of 2017, Baume & Mercier has shown the way. Alain Zimmermann, CEO of Baume & Mercier.

VERBATIM

• What is the mid-range?

‘I really don’t like the term mid-range! From a client’s point of view, I wouldn’t like to be considered in the mid-range. So I would prefer talking about accessible luxury. It’s more dignified to explain: there is this notion of an accessible range; there’s also the implication of an initiation, a starting point. When someone has just spent 1,000 or 2,000 CHF, that might be a huge sum for them. It’s not an ordinary thing to do.

That said, the heart of accessible luxury is around 2,000 to 4,000 CHF, but it can sometimes go beyond that for iconic pieces that use a special movement, special materials (such as gold), or particular finishes. Finally, we have strengthened our range of 1,000 to 1,500 CHF gift watches for special occasions.”

• Price changes?

“This definition of accessible luxury applies to all markets. But depending on the currency, there are psychological thresholds you have to respect. Today, the franc, dollar, and euro are all very close. Exceed 1,000 francs, for example, and you move into a price range where there is no longer the same rate of engagement. Especially for gifts.

We have always focused on maintaining reasonable prices. This is why we haven’t increased our prices in seven years and we have no plans to raise them. This strategy has enabled us to attract a younger clientele looking to enter the world of luxury watches. So I don’t need to change them! I am, of course, playing a central role in the debate, and this is opening up real opportunities for us.

That said, we obviously cannot ignore the context. But we always ask ourselves questions relating to our criteria for quality – we don’t make short-term opportunistic compromises. But there are other solutions, such as quartz, for example. The new My Classima is a perfect alternative for smaller budgets, without making any concessions. It has been pre-launched in the United States and the results are very promising!”

• Mid-range = middle class?

“I don’t think so. That was previously the case. But today, many people have significant purchasing power, without actually necessarily buying expensive watches. They no longer have ostentatious tastes, but are comfortable with fair and reasonable watches.

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Equating the mid-range with the middle class seems a little too easy. Nevertheless, in China, when the economy allows a certain section of the population to buy more than the essentials, we talk about the middle classes. And I think this segment will grow significantly in the coming years.”

• Mass-production versus exclusive?

“Perceived value is very important. There are several ways to develop it. Firstly, through tradition and history: it’s a way of reassuring the end customer, of reassuring them that they are doing things properly. Then there are iconic pieces, separate from our usual collections. Through them, we show that we are capable of going the extra mile. You also have to surprise, by looking for partnerships such as that with Shelby Cobra, which are logical and complementary. In this way, watches become unique and you can treat yourself and feel good. That’s accessible luxury!

Everyone wants to own a beautiful watch. Over the past five years at Baume & Mercier, we have been working hard on the Clifton collection: for 3,200 CHF you can have a small complication, which provides high perceived value. Is this still classed as mid-range?

Obviously, this changes from one market to another. Not forgetting ladies’ watches, which are a market of their own. What counts is creativity. That’s at the heart of success.”

• Style changes?

“At Baume & Mercier, we talk about the characteristics that form the brand’s signature. Adapting our style is very important if we want to stand the test of time. But there’s also the idea of brand recognition.

Baume & Mercier is quite a classic brand. But when I look back at previous models, things have totally changed! Only the brand’s hallmark characteristics remain. Studio Design, our in-house design workshop, is the gatekeeper of these hallmarks.”

• The impact of smartwatches “We have to monitor every trend. But I have a problem with planned obsolescence. Function will never supersede the emotional symbolism of a watch worn for status or to commemorate a celebration.

Nevertheless, it’s worth analysing this market to know if it merits exploring.”

• New distribution opportunities?

“We change our approach from one continent to the next: we’re very secure in the United States and Europe. In Asia, i.e. China, we are in the process of entering the market with specific strengths.

There are also opportunities in e-commerce. But that remains complementary. We have established some projects with partner retailers. Above all, this highlights changes in consumer habits. Not just in e-commerce, but also in e-retail. We need to monitor this movement, which opens up a fundamental debate as to how we can reach out to customers.”

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One of the fastest growing economies with a large, young population and a sizeable middle class, the south Asian power has not held all its promises for the global watch industry. While India’s potential still makes it an attractive destination, many hurdles remain for the subcontinent to become a boon for international watch-makers, as it still lags behind a number of smaller emerging countries‌ At least for the time being.

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ake a short walk around any big Indian city and one thing is obvious: watches have become a common fashion accessory for everyone. From working-class neighbourhoods to posh clubs, restaurants and corporate offices, almost every Indian flashes a timepiece on his or her wrist. Long gone are the days when Hindustan Machine Tools, better known as HMT, was the sole player on the Indian market. Now a struggling relic of Indian post-independence socialist times, the public company started under the country’s first Prime Minister Jawaharlal Nehru finally shut its doors for good a year ago, leaving its vintage mechanical and automatic models to nostalgic collectors. The first challenger to break the monopoly was the Indian private group Titan, which came along in the late 1980s and soon began digging HMT’s grave.

Titan, a subsidiary of the Tata conglomerate, has thrived ever since and today commands over 50% of the Indian market, estimated at over 500 million dollars.

It is in the last 15 years, however, that the watch market has witnessed formidable change. Sunil Karer, editor of Watch Market Review, the first Indian horology magazine, founded by his father in 1953, remembers when India started to abandon its strict protectionist policies. “Until the year

2000, watches were not allowed to be imported into India. I organised an exhibition for Swiss watches in India for eight years. We invited the industry ministers and explained to them that they shouldn’t ban them because they were not competing with HMT at all. Then they allowed watches over 1000 dollars to be imported… slowly (with a heavy duty of 90 or 100%), we got watches off the restricted list”. India has since opened its doors wide to Swiss, Japanese and American watch companies who, along with Titan and its various brands, have flooded the market.

A young population hungry for watches India’s economic boom of the last decade has been reflected in the watch industry, which can be divided into three broad sectors: the mass-price market, the mid-price market, and the premium price segment. While the mass-price segment (watches under 1000 rupees) is the biggest in terms of volume, it represents about 37% of the total market in terms of value. The mid-price segment represents approximately an equal share while the premium segment takes about a quarter of the pie. The rise of disposable income in India has boosted

• Total Indian population: 1.34 billion (50% less than 25 years old) • Indian watch market estimated at 1 billion dollars

• Luxury watch market estimated at 500 million dollars and growing at 20-25% annually in India • Over 50 million watches sold every year in India (= average price 20 dollars) • The Indian watch market has grown at a rate of over 9% for the past 10 years • Market share by brand: Titan (50% in value), Timex (20%), Swatch Group (14%), Casio (7%), Citizen (5%), LVMH (1.8%), Rolex (0.5%), others (1.7%) • India is only ranked 26th in terms of exports for Swiss watch brands

the premium market in particular, especially in the “afford- try in the next year. The group, which aims to compete with able premium” bracket, which takes into account watches Swatch Group brands Rado, Tissot and Omega, has also enfrom 10,000 to 100,000 rupees. Online sales of watches are tered the online market aggressively, opening a “mini-site” also growing at a tremendous rate, keeping pace with rap- on Amazon. According to Dinesh Kumar, it is already offerid internet penetration in India. It is growing at an annual ing stiff competition to the Swiss brands: “A Rado automatic rate (CAGR) of 50%, mainly in the retailing of watches under starts at 1.5 lakhs. If you purchase a Seiko Astron you will get 50 000 rupees. Five major e-commerce websites – Amazon a lot more features like a GPS, or solar for that price”.

India, Flipkart, Jabong, Myntra and Snapdeal – have taken Casio, is slowly but surely becoming a serious player in the over the market these last few years, together sharing over game in India. The Japanese electronic giant has captured 5 90% of the total online market. to 7% of the watch market, depending on different estimates.

A young population and rising disposable income are key The brand enjoys good visibility, from malls to airports factors in the growth of the wristwatch market, especially in to local wristwatch stores in Indian cities, and its reasonthe mid-price and affordable premium market. “People who ably priced sporty G-Shock and Edifice model are highly earn 50,000 rupees a month will be willing to spend up to appreciated by a younger demographic. “They are my best 10,000 on a watch on average,” says Vinay Kumar, a salesman selling watches, with Titan in the lower price range,” says at Helios in New Delhi, a multi-brand chain Gaurav Kumar, who runs a small watch of stores owned by Titan. Although the store in south Delhi. This statement, ech“In the fashion Indian giant does well, in particular in the oed by Dinesh Kumar of Mahindra Watch more affordable watches (under 5000 ruCompany and many other retailers in the segment, Guess, pees), most young Indians who can afford Indian capital, explains why the company Armani, Diesel and it prefer to go for international brands, has surpassed – in terms of market share – Tommy Hilfiger are which have become a status symbol, as in Citizen, another well-established Japanese many other emerging countries. In that brand. doing well, and bracket, two American players have fared in the technology well in India: Timex, the American giant, A difficult time for luxury brands which has captured a 20% market share, market, Fossil is and to a lesser extent Fossil, which counts doing well and The Swiss watchmakers, traditionally assomany brands under its umbrella in addiSeiko and Casio are ciated with the highest quality and luxury tion to its own and has made a successful time-pieces have on the other hand found it foray in what the company likes to call the doing very well.” difficult to truly conquer the Indian market. “bridge to luxury” segment.

After a steady rise since 2005 (excluding a In the busy commercial neighbourhood of Lajpat Nagar in New Delhi, Dinesh Kumar has been running dip after the 2008 economic crash), sales have dropped since his store for over 50 years. He started out selling HMT watch- 2013. The Swatch group still controls a sizeable portion of the es but now offers many international brands, mostly in the market (around 15%) with brands like Swatch, Omega, Rado 10,000 to 15,000-rupee bracket. “For about the last 15 years, and Tissot, which have built a reputation since entering the young people have been treating watches as a fashion state- Indian market in 1998 and are still selling relatively well. The ment. They buy watches as gifts, for their girlfriends. 60% of higher-end brands, like those of the LVMH group, are strugmy customers are after the brand and the remaining 40% are gling a bit more. Anil Madan, who owns six watch stores in after the technology,” says Kumar. “In the fashion segment, Connaught Place, New Delhi’s traditional commercial district Guess, Armani, Diesel and Tommy Hilfiger are doing well, in the centre of the capital, maintains that some of its brands, and in the technology market, Fossil is doing well and Seiko in particular TAG Heuer and Hublot, remain popular among his customers. Nonetheless, despite an aggressive marketing and Casio are doing very well,” he adds. strategy – Bollywood superstar Shah Rukh Khan, one of India’s most famous actors, has been the brand ambassador of TAG Casio and Seiko, full speed ahead Heuer for many years – LVMH shut down its Indian operations last year and now relies on a local partner for distribution in Seiko, which entered the market in 2007 and boasts an an- the country. nual growth rate of 25%, has so far made a successful entry “The luxury market has definitely slowed down in the past into India. Its watches are sold in 385 multi-brand outlets few years,” explains Sunil Karer. “Because of all the duty strucand it has opened six exclusive boutiques in several big tures, premium watches are facing some problems.” High taxmetros around the country. Unsurprisingly, the Japanese ation, which complicates business for many Indian retailers, brand is targeting the 25-to-40 age group in India, according remains a huge impediment. Since December 2015, the Indian to Seiko’s country president Niladri Mazumber, who hopes government has made it compulsory for buyers to give their to double the number of exclusive boutiques in the coun- Permanent Account Number, or PAN, for any purchases above

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200,000 rupees. A PAN number is the code that links every Indian national to the Income Tax Department, and hence exposes the purchase to taxation. This has pushed many potential Indian buyers to go abroad for their watches, particularly Dubai and Hong Kong, two destinations Indians can fly to in a few hours, which were already popular among luxury watch aficionados in the country. “Most Indians nowadays are travelling a lot to Dubai and Hong Kong. Dubai is a very strong base for watches and it’s close to India. In Hong Kong there are Indians who give you any brand you want at a very competitive price,” confirms Sunil Karer.

Demonetisation: adding fuel to the fire The brands that are faring the best, like Seiko for example, are those that have priced their watches under the dreaded 200,000 rupees limit. But late last year, the Indian luxury market was dealt another sudden and unexpected blow: on November 9th Prime Minister Narendra Modi’s government announced the overnight demonetisation of 500 and 1000 rupee bills, a draconian economic measure aimed at curbing “black money” in India, where cash transactions are the norm and tax evasion rampant. As Indians were queuing up for hours at a time in front of banks, the rich also refrained from spending. “It has had an immediate impact on sales,” admits Anil Madan. This setback is likely to have only a short-term impact but has further dampened an already fragile market.

Yashovardhan Saboo is the founder and CEO of Ethos, India’s biggest luxury watch chain, which retails brands such as Rolex, TAG Heuer, Breguet, Jaeger-LeCoultre and, more recently, more niche horologists like Corum and Favre-Leuba. When asked about the state of the Indian market and its challenges, he gets mildly irritated at having to state what has now become the obvious for industry insiders. “I’ve said it before… the market is not developed, duties are not ok, taxes are high.

There is nothing new about it.” He admits that this has caused

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a lot of caution on the part of Indian buyers, but maintains that if the Indian market is still finding its feet, the brands that do persevere will eventually find a huge payoff.

The Chinese mirage There is another reason why this payoff has so far not been the one expected by global watch companies who have invested heavily in India. After the explosion of the Chinese luxury market, it was easy to imagine a similar scenario in India. The country, like its Chinese neighbour, is also an Asian giant with a high growth rate, a very large population and, above all, a booming middle class, which has seen massive income growth in the last decade. These striking similarities are however deceiving and hide many important differences between the two countries. First of all, the categorisation of what constitutes “the middle class” is not the same in both countries. Any Indian earning above 13,700 dollars a year is counted in the middle class, while the threshold is 28,000 dollars for China, according to Credit Suisse.

Furthermore, despite its population of over 1.2 billion people, only 3.2% of Indian citizens qualify as middle class. In comparison, the Chinese middle class will be represented by 76% of the population by 2022, according to a 2013 McKinsey report. The growth for luxury consumption, which many international watch brands fall under, will therefore remain limited. This helps in explaining why India is ranked only 26th worldwide in terms of exports for Swiss watches, behind even Thailand, and with a sales volume more than ten times smaller than that of China, despite growing at a faster pace than its Asian rival in the last few years. While India’s evergrowing number of millionaires and billionaires will always sustain a sizeable upper market, it is the evolution of its middle class and its disposable income which will truly define the future of the Indian watch market and that of its major players.

Extract from Titan advertisement

TITAN, KEEPING THE MARKET LOCAL The Indian flagship brand has held and even strengthened its strong grip on the local wristwatch market since its inception in the mid-eighties. Despite retaining more than a 50% share, the group is not resting on its laurels and continues to innovate, and even successfully expand into other markets like jewellery and eyewear. Appealing to a large segment of the Indian population, the group has so far managed to stay the course, despite growing international competition.

Titan’s rise has been steady since the 1984 joint venture between the Tata conglomerate and the Tamil Nadu Industrial Development Corporation (TIDCO), which gave it birth. Titan Watches Ltd, soon changed to Titan Industries Ltd, launched its first line of wristwatches three years later, becoming the dominant player in a closed market in just a few years. “When we started in 87 we had one market, one watch brand and came out with well designed quartz watches. From 87 to the early 90s we rapidly became very popular around India, and started putting up our own showrooms. After that, we expanded to jewellery and the watch business expanded to Middle East, parts of Europe and south east Asia,” says Suparna Mitra, head of marketing at Titan.

The entry of foreign brands into the market has forced the group to diversify its products, something it has been able to do well. Its Fastrack line, chunky sporty watches in the 1000 to 3000-rupee range, has been extremely popular with young people since its launch in 2004. Other models, like the Raga line exclusively for women, which came on the market a few years later, or the Octane chronograph line for men revealed last June have

also been a success. To keep up with trends in the market, the group has recently launched its line of smartwatches, the Juxt and Juxt Pro models, soon to be followed by the Gesture, in a few months from now. Only time will tell if they will be able to compete with big players like Samsung or Apple. Over the years, Titan has however developed a wide array of models to maintain its share of an increasingly competitive market. “Titan has done what Swatch Group has done. It starts at less than 1000 rupees and goes up to premium brands. A Titan Nebula will start from a Lakh (100,000 rupees).

They also brought over Favre-Leuba and they are now retailing and distributing Mont-Blanc,” says Sunil Karer of Watch Market Review In addition to these luxury brands, the Indian group also has a retailing license for several international mid-market fashion brands like Tommy Hilfiger, Kenneth Cole and Police. It uses its chain of multi brand retail stores, Helios, to sell these brands. Titan has two main advantages: a reputation of reliability and “bang for your buck”, and a large distribution network, both of which come with three decades of operating in India. “Our brand name is associated

with trust and quality and our after-sales network is big. We also have more than 700 brick-and-mortar stores across the country,” explains Suparna Mitra.

The Indian giant has done particularly well in penetrating semi-urban and rural areas, where disposable income is lower. “Our Sonata Modern, which caters to the 500 to 2000 rupee bracket, is doing great in those areas,” says Mitra.

An overwhelming proportion of Titan’s market share is indeed in the lower-price segment. Its luxury watches, like the Nebula, struggle to compete with established Swiss brands. “Beyond 10,000 rupees, Titan are losing the market,” asserts Dinesh Kumar, who claims average sales of 500 to 600 Titan watches per month at his store. This focus and reliance on the lower-end segment has so far paid off in India, as wristwatch sales are still growing at a healthy 9% annually. As competition intensifies, Titan is at risk of losing its dominance over the market. Its international operations may give a glimpse of this scenario. While the Indian group is present in 32 countries, mainly in the Middle East, South and South-East Asia, its penetration in those countries remains shallow. “International business is a smaller part of the watch division. Also, unlike India, most markets abroad are highly cluttered with cut-throat competition. The number of active brands is significantly more. And so most brands enjoy only single digit market share. This is true for Titan as well in our key markets,” says Vijesh Rajan, head of international operations for Titan.

The Indian giant has not yet, for now, made a mark outside its own borders.

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Edouard Meylan, the young and dynamic boss of the venerable H. Moser & Cie brand, created one of the buzzes he’s so good at generating (having tried his hand in the past at smartwatches) by releasing a strong statement in favour of stricter regulation of what can be called “Swiss made”. Because, despite remaining grey zones and a period of ambiguity, the new legislation setting the gauge at 60 percent of a product’s value came into force on 1 January 2017.

Beyond his Vacherin-cheese watch and his taste for provocation, Europa Star asked Edouard Meylan to expand upon and clarify his thoughts on the notion of “Swiss made” – as well as the solutions he recommends, such as a multi-speed quality label. Here they are.

Throughout 2017, the first year of the new criteria for “Swiss made”, Europa Star will be talking to public and private stakeholders about this thorny issue: those who believe the new legislation is balanced, those who find it too restrictive and too hastily implemented; and, lastly, those who – as here – decry a definition of “Swiss made” which is insufficiently…Swiss.

Edouard Meylan, CEO, H. Moser & Cie “Originally, Swiss Made was defined to protect various Swiss industries and their savoir-faire. Unfortunately, different industries mean various needs, with different specificities and competitive environments. Today, the Swiss made label is not strong enough for the Swiss watchmaking industry as it is still possible to produce almost all components of a movement abroad and still be Swiss made. If we want to defend traditional mechanical watchmaking, we need to be very strict. At H. Moser & Cie., we design, develop and produce all of our components from start to finish, including the hairsprings and regulating organs from our sister company, Precision Engineering AG.

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And anything that we cannot achieve internally is sourced from Swiss suppliers. We believe in Swiss values and fight every day for them.

The Swiss Mad Watch that we recently launched during SIHH is more than a watch; it is a symbol. Our idea behind this product was to tackle the Swiss Made debate head on to bring more transparency around this label. With this unique watch, H. Moser & Cie demonstrates the importance and urgency of returning Swiss Made to its former heights. “Make Swiss Made Great Again” is our call to action, to the Swiss watchmaking industry, the authorities and watch enthusiasts.

The Swiss Made label is useful to brands trying to justify themselves, this is not the case of the high end manufactures for which the product should express on its own the highest level of quality and craftsmanship. It is necessary to have a label better defined and controlled. A system with different levels or categories could be a solution, under the strict control of an independent and authorised entity. While potentially difficult to implement, such a solution would be less misleading to end customers, for whom there is a big gap between their perception of Swiss Made, assuming that the item is 100% Swiss, and the reality of the 60%. At H. Moser & Cie, we have opted for the 100% Swiss label. Our watches are truly Swiss, watches that are steeped in watchmaking tradition and centuries of experience. Concretely, all new watches created from 2017 onwards won’t have the Swiss Made label on their dial but will be engraved on the back of the case with the mark ‘100% Swiss’.”

More on the question of “Swiss made” from another opinion leader in the next issue of Europa Star!

91 Octa Divine were manufactured in 2016 , of which 48 were in Platinum like this model.

Ref. DN automatic movement in 18 K rose Gold

“ I invented and made it �

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Patek Philippe is a reference, a virtually inviolable icon of Swiss watchmaking. How did this family firm, one of the last, get through the annus horribilis that was 2016? What are the secrets – if there are any – of its resilience?

What do you think of the current downturn in the watch industry? The situation is unsettled, to say the least.

or too pushy. Rely on trust. The trick is to maintain visibility without increasing stocks. And I don’t want to increase production. So we proceed by taking small but consistent steps, as we have always done. And if you need to stop and take a rest, then you do it. It’s a matter of internal regulation. It’s not always the easiest path to take, but in the end our model has proved effective – as well as being agreeable to everyone. We are also fortunate that, as a family firm, we have no pressure from shareholders. We are sheltered from power games, strategic changes of direction, repurchasing, number-crunching and deep discounting – all the things that have brought us to where we are today. 2016 might not have been a record year, but we are fortunate that we don’t have to keep chasing records. We have time on our side.

Thierry Stern: The overall situation isn’t catastrophic – far from it. One reason for the current slowdown is overproduction. Many companies insisted on production at any price. The markets became saturated, and then indigestion kicked in. But in our case foresight came to our rescue; we have been extremely vigilant for some years now. Back in 2015 we started the year with a cautious outlook. We specifically And yet you’ve made a number of an“Our strategy of looked at the number of pieces we wanted nouncements this year. trust in our retailers to deliver, and were careful not to force the has proven decisive. hands of our retailers, not push things too What can I say! We’re watchmakers, we It means that we far. We never really had to reduce delivery love to create. It’s our profession, and our levels, because it was never our intention passion. We’re often tempted to do too don’t just think to increase them at all costs, but we did much. For 2017, I had 50 new items ready about ourselves; we apply the brakes a little. We also took the to go into production. We deliberately take into account risk of keeping stock here, within our own limited ourselves to 20 or 25, including upthe needs and walls (in fact, we’ve been pushing for that dates to our current collections. However, for a long time, and, as things turned out, we are presenting a coherent selection of expectations of our stocks were basically exhausted within new products, across all our ranges and our distributors, the year). series. Having said that, easing off a little our retailers, and In the marketplace, this restraint enabled does allow us to focus on our processes, our end clients.” us to work in greater depth, with fewer the future and, something that for me is pieces, placing the emphasis on rarity and essential – reliability. We do pretty well in an enduring focus on the long term. that respect, but we’ll never achieve zero returns. Nevertheless, we must continue to improve our after-sales service – its quality, efficiency and speed. Today, At the same time, watch customers have become more our clients demand product reliability above all else. From a volatile, more restless, less loyal. technical standpoint, we regularly bring out two new developments each year. But before they are ready to be launched We have always given priority to our local clients, wherever they must offer maximum reliability. They are bench-tested, we are in the world. That, in our view, is vital. In a way, you road-tested and checked from A to Z. And they must be availget the clients you deserve: loyalty and continuity before able for prompt delivery. That’s how you win the war. the volatility of passing trade. We have enormous confidence in our 400 or so retailers. In addition to the fact that they are often built on historical partnerships, they give us Do you think the current slowdown has also triggered a an insider’s understanding of the markets, their differences stylistic and aesthetic “recalibration”? and how they evolve. For a long time now, unlike many other companies, we have stuck with our strategic decision to Watchmakers went too far into gadgetry and ostentation. prioritise our retailers. We have only three Patek Philippe There’s no doubt about that. Today, our customers are boutiques, in Geneva, Paris and London. And, let me just somewhat apprehensive about the future, and they’re looksay, I find it utterly unfair to retailers, when watchmakers ing for a more conservative stylistic approach. Design is open their own boutiques right next door. Today, our strate- central: how can you make a simple, attractive watch with gy of trust in our retailers has proven decisive. It means that three hands that delights and enchants? That’s the hardest we don’t just think about ourselves; we take into account thing. Designers, get your sketch books out! But stylistically the needs and expectations of our distributors, our retail- speaking, I don’t mind admitting that I’m proud of our colers, and our end clients. You should never be too greedy, lections, which I believe are extremely strong in this regard.

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The Patek Philippe brand is perceived as being traditional in spirit. And yet, you invest a great deal in research.

Are you afraid that we are coming to the end of a cycle, that people are falling out of love with watchmaking, that everything could change?

If there is a Patek Philippe tradition, it’s also very much a tradition of innovation. But innovation, in a technical and As I said, the watch industry took things too far. There was visual sense, that comes second to usefulness, reliability and too much of everything and a lot of nonsense, and it led to precision. saturation and then indigestion, which is what you get when Our research and development labs are here, at the heart of you eat too many sweets. But there’s a sense that things are the manufacturing facility, and they are equipped with the turning around, that the desire is back again. Our history most cutting-edge resources available, all the necessary tool- gives us the luxury of a certain amount of detachment, ing and the finest engineers. which helps us to keep the ups and downs in perspective.

Testing is front and centre of our strategy, and we spend a For example, our enamelled Dome table clocks suffered considerable amount of time on this. Sometimes the direc- through a period of distinct apathy. But not only did we contion we take is very promising; other times we’re disappoint- tinue to stock them, we continued to make them, in order to ed. But our efforts never cease. We work with organisations preserve the savoir-faire. And it proved to be the right decisuch as the EPFL in Lausanne and the CSEM in Neuchâtel, and sion because, although we don’t fully understand why, one sometimes in consortium with other seday the tide turned and we sold out of our lected companies. We pioneered the use of entire stock. silicon, and today around 85% of our watches “How can we not be have silicon components. confident, when we What can you tell us about your market Historically, Patek Philippe has always have invested 500 distribution, in these uncertain times? helped watchmaking to evolve, but we million francs out want to avoid technology for its own sake.

We remain very strong in Europe, which When we develop a new technology it has of our own pocket accounts for 40% to 43% of our sales. This is to work, and we have to be able to integrate in a new building, the result of comprehensive, long-term efit into our production. In fact, we consider as we are in the forts with our local clientele. Ten years ago, it our duty to continually innovate and process of doing?” the USA was also very strong, at around evolve. But when we innovate, we remain 30%. Today, although it is down to 15%, there “traditional” in our own way, and this also is still great potential there for us. The USA applies to the watch casings and external parts. It’s important also to bear in mind one cardinal rule: is home to some of the finest Patek Philippe collections – all our innovations must be capable of being repaired in 50 there are some breathtaking pieces in the hands of collectors who have kept a very low profile. Asia, as everyone knows, has or 100 years’ time. calmed down considerably – Hong Kong first and foremost – A Patek Philippe is, and remains, an investment. but it still makes up 30% of our market. Things are going very well in Singapore, for example. Japan less so. But the market You seem quite confident about your future. that has suffered the most is Russia, without question. There, it’s all or nothing.

How can we not be confident, when we have invested 500 million francs out of our own pocket in a new building, as we are in the process of doing? And all to produce barely 60,000 Patek Philippe regularly makes the headlines with exwatches a year. It’s a hefty investment! This unit, next door to traordinary results at auction. Is this the result of a deour current manufacturing facility, is our investment in the liberate policy? future. One of its purposes is to strengthen our after-sales service, and train up the watchmakers of tomorrow. But we Absolutely not, it’s the result of a policy focused on quality, reliwill also bring in our watch casing department, which is not ability and the long term. Remember, we have made a commitfar away, as well as installing our component manufacturing ment to be able to repair or restore anything, forever. We are set and research divisions here. I would also have liked to keep up to do this, and we do it every day [see ‘The manufacture within some empty space for future projects, but the 50,000 m2 we the manufacture’, Europa Star March 2016, www.europastar.com]. have planned are already filling up too quickly.

But of course we’re absolutely delighted with these extraordinary results. We welcome them heartily, but we don’t use them.

They serve to confirm that we have made the right choices, and they attest to the exceptional trust in which our clients and collectors continue to hold us.

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Stung by Europa Star’s last feature on the sensitive issue of the pricing practised by watchmakers, François-Henry Bennahmias, CEO of Audemars Piguet, felt impelled to respond: no, price should not be the main question of the day; but yes, transparency is set to become the new norm in watchmaking. He talked to Europa Star.

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t all began with a phone call. On the other end of the line was François-Henry Bennahmias, Audemars Piguet’s CEO. Courteous but irritated, he explained that the last feature in Europa Star, devoted to the delicate or even taboo issue of watch prices, made him “take off like an Ariane space rocket”. Especially the table comparing the growth in the prices of iconic models since 2000, which showed a substantial increase in prices.

“Your figures are inaccurate! Those models have evolved, and you can’t compare apples and pears…” And: “Price-wise, the watchmaking industry is very restrained compared with what goes on in the leather goods or hospitality sector, or even the automotive industry!”

You can feel that the issue is a sore point. “I want to be constructive and I’m absolutely transparent!” So, to discuss the matter further we agree to meet at Le Brassus for a long conversation – which, besides prices, reveals many other facets of the watchmaking industry and the mindset of Audemars Piguet, its boss and the notion of value; all this in the presence of his figurines of Master Yoda, Arnold Schwarzenegger’s autograph and even an evocation of the film Rain Man...

In our last issue (Europa Star Chapter 1/17), we published a table based on a handful of iconic models on the French market which showed a strong global rise of around 60% in watch prices between 2000 and 2010, which then slowed down to around 12% between 2010 and 2015.

François-Henry Bennahmias: You published your table and I did the same thing here. I mobilised my teams to find those figures and I didn’t get the same result as far as the steel Royal Oak model with the date display is concerned. But more importantly, the models you compared have evolved: we’ve moved on to an open-worked design, a manufacture calibre, a larger size, and so on. It’s a better model! And I’ve got an eagle-eye for figures. They just jump out at me. I’m a bit like the main character in Rain Man...

For this model and the others, do the price increases for watches seem justified to you?

I feel that watchmakers have been extremely measured compared with other sectors of activity or other brands.

Here’s an example: in the year 2000 the price of a room in a luxury hotel cost the equivalent of 160 euros. How much do you imagine it costs today? Over 1,000 euros! Another example: in 1994, for my thirtieth birthday, I was given a Hermès messenger bag. At the time, it cost 14,000 French francs, or around 2,000 euros. The price today? 8,000 euros.

Similarly, a pair of quality women’s pumps cost 500 French francs, under 100 euros, in 2000, compared with at least 600 euros today!

Even so, comparisons with other sectors aside, the question of price is still of prime importance for the customer, you can’t just brush it off…

Prices have been an issue for two years. Nobody talked about them in 2010. So why are they doing it today? Because there’s a kind of crisis. People think they can find a solution with prices. It’s not the right solution. The solution lies in innovation, that’s where we have to look. You can’t simply equate luxury with price, that’s a slippery slope. On that point I agree with Jean-Christophe Babin when he says in your feature that “we associate crisis with a lack of money, but it’s not necessarily the right reflex response, nor a solution, and you don’t necessarily get out of it by lowering prices”.

Yet a certain number of brands have lowered their prices, and numerous retailers are offering huge discounts.

Is there any going back?

Look: the answer is this watch that I’m wearing on my wrist, the new black, ceramic Royal Oak Perpetual Calendar. It’s worth 91,800 francs – not much less than a Royal Oak in gold.

We presented it the Friday before the SIHH and it sold like hot cakes. Every retailer wanted it. Now, I haven’t received a single email demanding explanations about its price. We could have sold more, but our production capacity is limited to 100 items a year. All this talk of competition makes me laugh: today, the competition for our brand doesn’t come from other watch brands, it might come from a work of art, a car or a travel package. Real luxury isn’t a question of price.

What is your definition of luxury?

For me, the luxury threshold starts at 7,000 francs. Going below that would be suicidal! Do you know why no watchmaker has prices that end in .99? It smacks of supermarket promotions. That’s not the world of luxury. Psychologically, what counts more is the 10,000-franc barrier: the difference between 43,000 and 49,000 francs is less important than that between 49,000 and 55,000, for example. But what really counts is emotion! And when you have money, emotion comes before the sole criterion of price. Recently, one of our ambassadors came to visit the manufacture with his children. They’re children of the digital age – how could a mechanical product like a watch possibly be of interest to them? Well, I can assure you that they were just blown away.

They let go of their tablets, I can tell you.

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But it’s those tablets that keep consumers better informed – and more punctilious and aware of whether prices are pertinent or not.

Today, the customers are often better informed than the sellers. Retailers talk a lot about money and price, because all too often it was their main weapon. I often notice that car salespeople know more about their product than people who sell watches. If the only argument the latter have left is the price, they’ve failed.

Whether it’s a matter of prices, the way watches are distributed or innovations on offer, social, geopolitical and digital change is happening so fast that many watchmakers seem a bit disoriented...

“Price is not an end in itself when you’re talking of real luxury. The current crisis is not a luxury crisis. There has never been so much wealth and so many potential customers in the world.”

With society changing the way it is, everybody’s heading off in all directions. It’s anarchy, we’re seeing 360° turns in strategy.

And behind all that, we can see that the notion of transparency is becoming more and more important. We’ve entered the age of transparency! The industry cannot go on hiding everything. And we want to play fair. Go and see other watch brands and see if they’re as transparent as we are on the question of price.

But if we understand you properly, above a certain threshold the issue of price no longer plays a role in whether someone buys or not?

You have to pay attention to the price, of course, we carry out benchmarks, but it’s a factor that has to be taken out of the equation pretty fast. The price and the perceived value have to coincide exactly. Two years ago the boss of Hermès, Axel Dumas, hit the nail on the head when he told at the Forum de la Haute Horlogerie: Hermès products are expensive… to make! Which more than justifies the price.

In fifteen years, watches priced at over 3,000 francs have grown from representing 10% to 60% of the value of Swiss watch exports. Aren’t we experiencing the backlash of this “gold rush” today?

Make no mistake, selling luxury products is still an extremely difficult exercise! Many small, independent brands are currently experiencing difficulties, despite the fact that they sell quality products. Demands are high and you can’t afford to disappoint; on the contrary, you have to surprise people.

But if I offered a Royal Oak at under 7,000 CHF, I’d kill the brand! Price is not an end in itself when you’re talking of

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real luxury. The current crisis is not a luxury crisis. There has never been so much wealth and so many potential customers in the world. But when the storm clouds gather, people turn to the stronger brands, the ones which put quality before quantity. We’re one of them and we’re reaping the benefit: that’s why we achieved turnover of nearly 900 million francs in 2016. Even back in the crisis of 2008-2009, we were already seeing this concentration on the better brands. We absolutely have to figure in the top third of the list.

What sets you apart from the others?

We’re a serious brand that doesn’t take itself seriously. Codes have changed. You can no longer judge people by appearances: I always say to my teams, ‘treat a customer in shorts the same way as you would a customer in a suit and tie!’”. But I’m surprised how hard it is for some luxury brands to adjust. Another anecdote: recently, I was in a major Paris hotel at brunch time, casually dressed, and when we walked in the maître d’hôtel said to me: “Let me draw your attention to the fact that it will cost 150 euros”. Incredible, indefensible!

You must also have customers who are increasingly used to having free access to services and products, like music or films. What can you do to withstand that kind of pressure?

Quality and creativity take time and have a price, or rather: value! Today, the notion that you can get everything for free has done a lot of harm to our society. I never download music for free, I always buy it. But I believe that in this throwaway, everything-for-free age, people are paradoxically in search of greater authenticity. They want to discover what’s behind the façade and they want it to coincide with the image it presents. So a high price – ok, but only if it’s justified.

During the year Europa Star will be returning to this first major feature of 2017 devoted to the issue of price in the watchmaking sector, with reactions, follow-up and opinions.

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Although they differ greatly in appearance, the markets of the Middle Ages and today’s big watchmaking exhibitions share the same commercial ambitions. These events have nevertheless become increasingly professional over time, slowly leaving behind their educational and universal vocation. A look at eight centuries of buying fever.

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word of Latin origin, fair harks back to religious practices or pilgrimages. Once assembled, the participants, who had come from far and wide, began to trade, sometimes to acquire commodities that were unknown to them, and sometimes simply for their own subsistence during their stay.

Today, only the commercial transactions remain.

Whereas markets are traditionally designed to sell artisanal products and local foodstuffs, the first fairs, which date back to antiquity, offered wholesale merchandise to merchants who came to stock up on goods so as to resell them.

With the Crusades, travel by land, river and sea routes increased. Medieval trade took advantage of developments such as the shoeing, harnessing and teaming of horses, as

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well as iron rings inside the wheels of carts and wagons, and the improvement of roads. Brotherhoods of a religious nature flourished during the Carolingian period.

As time went on, artisans from the haberdashery, goldsmith, silversmith and drapery trades formed guilds that were tasked with defending the interests of their members.

For their part, merchants formed guilds in order to protect themselves from banditry and excessive tolls. In the late Middle Ages, structured labour law was introduced in Italy, Flanders and Champagne.

At fairs, tradesmen were transformed into businessmen, who were able to deal with a high volume of transactions thanks to promissory notes, a means of payment that made it possible to honour a debt from afar by going through two bankers who communicated with each other. A form of capitalism thus emerged.

Swiss watchmaking joins European fairs and exhibitions From the late 13th century, gold and silverware were presented at fairs in Geneva. The first watches made in Geneva in the 16th century were, for the most part, exported, given the lack of local prospects. Forced to leave their country out of economic necessity, the city’s merchants travelled to the lands of their ancestors, participated in the great European fairs of Reims, Troyes, Cologne and Leipzig, and also visited eastern capitals such as Constantinople from 1592 onwards.

In the 16th and 17th centuries, Swiss watchmaking towns were a dependency of Geneva, before freeing themselves from the city’s tutelage. As of the 18th century, they exported their products autonomously, via fairs in Leipzig, which was the most important, Frankfurt, and Augsburg, a gateway to the Central European market.

Exhibitions were not an extension of traditional fairs, but rather the continuation of events organised in France and England in the 18th century by Academies and Societies of Fine Arts in order to present the latest artistic creations to the public.

The importance of national and regional events

The first Basel Fair (1917)

In 1804, the first Exhibition of Fine Arts and Industry took place in Bern. This unusual name can be explained by all the different kinds of expertise necessary at the time to transform materials. This first modern exhibition was followed by others in 1810, 1818, 1824 and 1830, all of which were held in Bern. Beyond its commercial objective, it allowed the country to showcase its dynamism and promote its values of technological progress, work, competition and the development of a collective identity.

In 1843, the National Artisanal and Industrial Exhibition in St. Gallen brought together two different approaches to production, while the exhibitions in Bern in 1848 and 1857 took place under the banner of Swiss industrial exhibitions.

The regional events of the 19th century benefited from the work of industrial associations. As a result, regular events in Geneva specialised in watchmaking and jewellery, as did an 1881 exhibition in Neuchâtel. An exhibition in Appenzell in 1881 focused on embroidery. The 1863 Neuchâtel Watchmaking Exhibition coincided with the Swiss Shooting Festival, and a mechanics section was added in 1879. From then on, specialisation became more pronounced, with an event held in La Chaux-de-Fonds entitled the National Watchmaking Exhibition and International Exhibition of Machines and Tools Used in Watchmaking, as well as the International Exhibition of Watchmaking, Jewellery and Related Fields that took place in Geneva in 1888.

Nevertheless, after 1900 enthusiasm for progress and industry started to wane. The nature of world’s fairs had to change.

The first Swiss Design Fair Basel took place on 15 April 1917, with 831 companies from all sectors of the Swiss economy and a section devoted to watchmaking and jewellery. The event continued to develop over the following decades. In 1942 Geneva celebrated its bimillennial. On this occasion, manufacturers, journalists and historians from the world of watchmaking came together to organise an exhibition of Genevan production.

Intended as a one-off, the Geneva Watches & Jewellery Fair was such a success that it continued for forty years. From 1942 to 1982 the event took place at the city’s museums and hotels celebrating both the old and the new. In 1961, the Musée Rath called it the “most important watchmaking and jewellery event”, to the extent that it was hosted by Goldsmith’s Hall in London and the Hotel Bayerischer Hof in Munich in 1975 and 1977 respectively.

Global and industrial showcases World’s Fairs emerged as of 1850. They were also called Universal Exhibitions as they dealt with every aspect of industry. Initiated during the Industrial Revolution, these fairs served cultural (educational), political and economic purposes. The first world’s fair took place in London in 1851, and was followed by fairs in Paris (1855), Vienna, Philadelphia and Chicago. Among other things, these fairs consolidated the reputation Swiss watchmaking had acquired on the international market since the 18th century.

At the Melbourne (1880) and Chicago (1893) fairs, Genevan watchmakers insisted on presenting separately from other Swiss watchmakers in compliance with criteria that demonstrated their specificity. In Chicago, their catalogue championed the superiority of watches from Geneva and the excellence of its school for watchmaking and its observatory.

In line with the notion of universality promoted by the Exposition Universelle of 1900 in Paris, Swiss watchmaking was presented in five sections: group exhibitions of Genevan watchmaking; manufacturers from Fleurier; manufacturers from Le Locle; mechanics specialists from Couvet, and manufacturers from La Chaux-de-Fonds.

From fair to exhibition From 1921, watchmaking, together with other disciplines, was part of the Swiss Design Fair Basel. In 1931 the first Swiss Watch Fair was held. It had its own pavilion. It became the European Watch and Jewellery Show in 1973 and was renamed Basel ten years later. In 2003 it took on the name of Baselworld Watch and Jewellery Show.

In 1991 the Salon International de la Haute Horlogerie made its début at the Palexpo in Geneva. It was a private event that brought together the watchmaking brands of a large international group, in compliance with the specific criteria of the luxury industry.

As professional events designed for professionals, the two exhibitions share the same objectives and definitions as the earliest fairs. But the education of the public and the transmission of values, so important in the 19th century, no longer have a place.

QUIZ

What was the “Basel Fair” like in 1970?

The floorplan of what was still called the “Basel Fair” 47 years ago, taken from our Europa Star archives, shows some similarities and some major differences.

How many brands are still present today?

How many have disappeared off the face of the earth?

How big were the booths, and where were they located?

Is it possible to infer some sort of hierarchy?

Take a few minutes to have a good look at it. You’ll find it very interesting, and probably quite surprising too!

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Where brands from the North are concerned, there is not only Daniel Wellington from Sweden, Suunto from Finland and Skagen from Denmark (and quite a few from China, one might add).

These last few years we have seen a series of interesting watch brands popping up out of the Scandinavian circle, offering minimalistic and original designs, often influenced by nature, the Arctic, giant moons, fjords… Our passionate watch explorer and blogger Mr. E brings you some fresh air from the North: here is a short introduction to the full pieces that you can find on www.europastar.com.

NORWAY Bruvik, Norway’s watchmaking pioneer Bruvik Time was founded by Rene Bruvik in 2009, and the beginnings weren’t exactly a breeze.

Because there was no watchmaking heritage in the country, retailers were sceptical of Bruvik and his Scandinavian designed and Swiss made watches. But persistence pays off, and three months later Bruvik got himself a spot in a retailer’s display window, right next to Breitling. Not a bad start.

Since then the brand has expanded its collections, and what I like is that each one channels its Norwegian roots. Arguably the most popular is the Fjord line, which houses a drop of pure water from a Norwegian fjord in the case back. [$$$]

Henry Blake, railroad-inspired The man behind this brand is not called Henry Blake; he was actually a fine civil engineer and the inspiration for the brand. The company founder is actually Reza Shojaei (who is himself trained as an engineer), who founded the brand as recently as 2015. His company is still in its early stages.

What initially struck me about the brand is how well the rail motif travelled onto the design of the watch. Not just in the name of the brand, but also the distinctively rail-inspired logo on the very cleanly arranged black dial. [$]

ICELAND JS Watch Company, the most underestimated watchmaker?

Did you know that Iceland is where time begins? Technically speaking, at least, it’s true. That’s because Iceland is perpetually on Greenwich Mean Time, so they don’t change their clocks with the seasons. Just with that bit of trivia, any watch brand doing business in Iceland can start with a great story! The public persona behind JS Watch Company Reykjavik is Mr. Gilbert Gudjonsson, a master watchmaker who has over 45 years of experience: I’ve been told by my uncle – another watch enthusiast who just happened to travel there – that if you pass by their shop in the heart of Reykjavik, Gilbert Gudjonsson will take his time and have a chat about anything watch or Iceland-related for hours. Their watches too incorporate a bit of Iceland in every model, whether that is something physical or metaphorical. [$$$]

*Price categories: $ Less than 500 dollars • $$ 500-1,000 dollars • $$$ 1,000-3,000 dollars • $$$$ 3,000-10,000 dollars $$$$$ 10,000-50,000 dollars • $$$$$$ 50,000-100,000 dollars • $$$$$$$ More than 100,000 dollars 59

SWEDEN Kronaby’s first smartwatch collection At first glance, all Kronaby watches look like relatively classic timepieces and I would never have guessed they were connected watches had I not known in advance. And we would expect no less from a Malmo-based company channelling a strong Scandinavian design heritage.

Indeed, the philosophy driving the brand is to put design at the centre of watchmaking and only add the most relevant smart features. The idea is not to put all of our trust in smart technology, which more often than not will just end up distracting us. Rather, the focus is on what the brand calls “human technology”. [$$]

Halda, the best of both worlds?

The evolution of watchmaking will be interchangeable. That’s according to this Swedish watchmaker, which developed a modular watch design with both traditional mechanical and modern electronic movements. The first manifestation of this modular concept tackled the final frontier: space. After testing and consultations with astronauts, the Halda Space Discovery was born. The watch design was so well received that it picked up a Red Dot design award. [$$$$$]

Triwa wants to transform the watch industry, the Swedish way Triwa’s goal is to “change the attitudes in the watch industry.” It was founded on the notion that the industry is too focused on status and tradition. It was even named after the cause, Triwa being an amalgamation of “Transforming the Industry of Watches.” In ten short years, the company has grown from four friends to thirty friends and yes, they are still actually friends. The growth of the team is in part because they have expanded their product line and have become more of an accessories company, also offering stylish sunglasses and bracelets. [$]

60

Pansar, Sweden’s auto-inspired watchmaker Another young and well-received brand carrying the blue and yellow flag is Pansar. The company was founded by Patrik Palovaara, an award winning industrial designer. And his timepieces definitely show it. Specifically, the company founder has applied the design methods of the automobile industry, which was familiar territory for Palovaara thanks to his time working at Volvo. The emphasis with his watches is on proportionality and dynamic lines that similarly add character to the world’s best cars. The overall result is a solid collection of stylish yet rational watches. [$$]

Bravur, essential Swedish design The company is the union of forces between friends and industrial designers Johan Sahlin and Magnus Svensson and their Stockholm-based company, which came into being in 2011. Every watch is designed with simplicity in mind and there is a notable attention to detail. Take the hands of their watches, for example, which have been cut out at their tips so that the indicators below perfectly fill in the gap with the passage of each minute and every hour. Their tagline, after the brand’s name, simply says: “Bravur, Since Now”… [$$$]

GoS Watches, crossing swords with Damascus steel What do you get when a master bladesmith (Johan Gustafsson) crosses swords with a master watchmaker (Patrik Sjögren)? It’s GoS Watches, a luxury Swedish watchmaker based in the placid town of Linköping. I’ve been a fan of the small watchmaker since it was established back in 2007, and it’s been interesting to see it develop over the last decade.

That development has resulted in the duo perfecting the use of Damascus steel in watchmaking, and more recently even developing their very own in-house movement. [$$$$$]

DENMARK

Georg Jensen, democracy in design

Bering, Arctic-flavoured Danish sailor Vitus Bering was the first European to cross the strait between Asia and America in the Arctic Ocean way back in 1728. The strait was named after the adventurer (Bering Strait) as well as a time zone (Bering Time). Now, you can add a watch brand to that list. The founders themselves – René Kaerskov, Lars Skjoennemann and Michael Witt Johansen – are apparently quite the adventurers too, and not just because they took the risk to start a new brand in a congested market. In a few short years, 1.5 million watches and more than 500,000 pieces of jewellery have been sold. By now, the brand has properly established itself as a lifestyle brand, having a very broad range of both watches and jewellery. [$]

Obaku, fusing Zen philosophy and Danish design In 1661, the Obaku branch of the Zen philosophy was established at the foot of Mount Obaku in Japan. The philosophy entails basic values that pay tribute to simplicity and calmness. The objective, then, is to see things as they are, as essential things without any distortion. What might that look like in practice? Well, as one example, you might notice that some Obaku watches have a hidden crown, keeping the case perfectly circular and thus staying true to the Zen philosophy of completeness without distortion. Such values have been interpreted and brought to the world of watches by Christian Mikkelsen and Lau Liengård Ruge. [$]

Georg Jensen might not be the biggest or the newest watchmaker hailing from Scandinavia, but we could not avoid mentioning it, with its rich history: today, it is very much a lifestyle brand, known for producing a range of products from homeware, to jewellery, and yes, even watches. Georg Jensen’s philosophy was all about democracy in design, with a focus on both functionality and beauty for everyday use.

Whatever the product might be, the brand’s creations can be recognised by their timeless aesthetic. We’ve come to expect no less from any company that has Scandinavian roots, and Georg Jensen can certainly boast a proud Danish heritage. [$$$]

Danish Design: the brand with the double Ds Consistent minimalism. That’s what describes the Scandinavian watchmaker’s near 30 years in existence, remaining true to its design DNA despite an industry in flux. Back in 1988, the demand for modern minimalist designs was on the rise, yes, but the quality of the supply was relatively low. That’s where designer Jan Egeberg entered the scene, producing some of the first watches for Danish Design.

Over the years, other freelance designers have worked for the brand, but the overall aesthetic has remained true to Denmark’s famed design ethos. That is, timeless and classic timepieces. [$]

FINLAND Sarpaneva, the moon variations of an unorthodox watchmaker

Stepan Sarpaneva is known for his bold watch designs that are definitely something off the beaten path. After finishing his course at the Finnish School of Watchmaking, the founder came to the Mecca of watchmaking, Switzerland, to hone his craft. His most successful model is the Korona Northern Lights, which comes in three luminous timepieces: Green, Blue and Violet. The moon is a recurring theme in Sarpaneva watches, whose bold and unorthodox timepieces are “not for everyone”. But that’s the way Stepan prefers it. [$$$$$]

62

N FO E W R S YO U!

Fr ee H AV ly s pe E I G ak O ing T M D. BY

CO AL

LM

LA KI N

S

louched in a deckchair on the terrace in the sun, puffing serenely on my pipe with the remnants of a delicious cappuccino beside me, my mobile telephone rang. I didn’t recognise the number. “‘Allo,” I said in my best anglicised French.

“Ah, is U.” “Yes it’s me.”

“No is me U. Hueng Loe.” “Hello U. How are you?”

“I well, making bizness with yo ol fren Lewoy.”

“Leroy Hornblower? Doing what?”

“We in Monaco see man about washes. You time for lush?”

“Lush? Oh lunch, tell me where and when and I’ll be there.”

We met in La Brasserie du Café de Paris in Monte Carlo a couple of hours later, and there in the midst of the Belle Epoque decor, dressed in expensive summer suits stood the diminutive and enigmatic U. Hueng Loe beside the towering American Leroy Hornblower, his piano key smile sparkling against his nut-brown face.

U. bowed and shook my hand, Leroy high-fived me and gave me a bear hug that dented my rib cage.

After we’d ordered lunch I asked about their business.

“Well man,” Leroy explained excitedly, “U. came into the watch store in New York and asked for the boss. He wasn’t in so I thought, cool, gave him my smooth sales patter thinking that since U. is Chinese I’d make a big sale.”

“I no wan buy,” U. interrupted. “I looking sell new wash, special model, no complicate, velly simple.”

“So tell me about the wash, I mean watch,” I said, “and why you’re here in Monte Carlo?”

“We lookin’ for man invest. Lewoy take horiday for to come here ’cos he like idee. We maybe make company for make and sell wash.”

64

“Fine, but why Monte Carlo?”

“People in New Yok no like idee.”

“It’s a real cool watch man,” Leroy beamed, “It’s so simple, no busy dials, no chronograph or perpetual calendar, nothing to complicate your life dude, it’s revolutionary.”

“So what is it?”

“Is got no hans,” U. squeaked enthusiastically.

“No hands?” I said bemused.

“Is wash with Chinese mechany mooment, velly cheap make big tick. You hear, you no care time, tick make you fowget, feel good.”

The waiter brought our lunch and we ate in silence as I tried to come to terms that U. and Leroy were trying to sell the idea to someone to put money into the production of a mechanical watch with a loud tick that doesn’t tell the time.

My thoughts were interrupted by U.’s mobile ringing.

“Is U. Yes we come. Now? Hokay, we on way.”

“We have go now,” U. said getting up and rushing to the door.

Leroy looked wistfully at his half-eaten lunch, left money on the table for the meals, gave me another bear hug and followed U. out of the brasserie. He stopped at the door, shot me a two-octave smile and shouted, “Confucius said life is really simple man, but we insist on making it complicated,” and disappeared.

On the train back to Menton I had just enough time to read on my ’phone a watch editor’s blog whose prognosis that complicated watches were out of fashion and simple timepieces were the trend. Man, have I got news for him …

Lash Clock by Bina Baitel

A C N O EN RD T IA EN LE T E

W FR atc h A E N N wo D C r EN H ds G LI SH J BY

ILL

ME

A TC LF E ux

tap

es

try

rather than supplanting the old words, the new ones took on a life of their own, meaning almost the same thing, but not quite.

When they talked about beef, pork or mutton, these Norman aristocrats were referring to the meat on their plates, not the noisy, smelly creatures sharing the living quarters of their serfs. And that, I’m more or less guessing, is why we English speakers often use French words to impart a veneer of refinement to otherwise ordinary things. A bouquet of flowers is far more impressive than a bunch. A connoisseur is the most impressive kind of expert (an amateur somewhat less so). Social climbers must avoid committing any gaffes or faux pas if they are not to appear gauche. And so on.

But where watchmaking is concerned, the attachment to French is not just snobbery (or not always, in any case). This is where I have to bring in the mother of all untranslatable terms: terroir. The Collins English Dictionary defines this as “the combination of factors, including soil, climate, and environment, that gives a wine its distinctive character.” For someone reading in English about Swiss watchmaking, all those petites sonneries and grandes complications, all that guillochage and perlage are part of the goût du terroir; they help to convey the distinctive flavour of an industry built on unique geographical factors, and the particular historical, political and religious upheavals that helped to shape it.

So that’s why, sometimes, I leave some of the French words in French. And anyway, it saves me a job.

Ba ye

A

s a translator, my job is essentially to take a load of French words, and turn them into a load of English words. Although it’s unclear exactly how many words each language actually has (I did try to find out…) I think most people can agree that English has more. Possibly a lot more.

The main reason is that, while the French have been keen to preserve the purity of the language of Molière through the centuries (with the help of the terrifying Académie française), English is a laissez-faire mongrel of a language that has welcomed and absorbed its Germanic, French and Latin incursions with nonchalance. Insouciance, even. The result is that, for every French word I encounter, there should logically be two or more English equivalents for me to choose from.

But it’s not quite as simple as that. Another important part of my job (and actually the part that Google Translate is far less likely to be able to take over in the near future) is making sure that the text as a whole is stylistically coherent. I have to watch out for mixed metaphors, awkward constructions, Americanisms and any unconscious Frenchification that might slip in through over-familiarity. Sometimes, however, I do find myself choosing a French word or expression, rather than a perfectly proper English one.

But why say haute horlogerie when ‘fine watchmaking’ is perfectly okay? Why talk about watch manufactures when we have the word ‘factory’ for big ones and ‘workshop’ for smaller ones? Why bother with savoir-faire when ‘skills’ or ‘craftsmanship’ will do the job?

To answer this question satisfactorily I think we probably need to go back to 1066, when William of Normandy claimed the English throne and established French as the language of the ruling classes. So, while the rustic English peasantry already had their cows, pigs and sheep, the new words boeuf, porc and mouton were the ones preferred by their exotic overlords. But

65

A last word to start “THE DANGER IS NOT THE HUMANISATION OF ROBOTS BUT THE

ROBOTISATION OF HUMANS”

BY PIERRE MAILLARD

T

he German futurologist Gerd Leonhard was invited to the 8th Haute Horlogerie Forum last autumn. He had one piece of advice to give to young people looking for a future career path: choose whatever you like, provided you can’t be replaced by a robot!

On closer inspection, the choice isn’t actually all that wide. Hairdresser (probably).

Plumber, given that a robot will never be as good at disentangling tubes and pipes as a human being. (An image of Robert de Niro as the heating engineer in Terry Gilliam’s brilliant dystopian science-fiction film Brazil comes to mind...)

Lawyer – probably not. Since May 2016, a robot by the name of Ross has been working in the Cleveland offices of BakerHostetler. Ross has already fathered children. His father is IBM. Ross’s area of expertise is corporate bankruptcy (I’m not making this up). He doesn’t speak in court (although that day may come); what he does is analyse, extremely efficiently, thousands and thousands of documents relating to corporate bankruptcy. Some of which is probably caused by robots.

Banker – that’s definitely a no. Trading is already dictated by algorithms.

Journalist? The industry is already on its knees – and robots are rubbing salt into the wounds.

“Researchers from the Intelligent Systems Informatics Lab (ISI) at the University of Tokyo have developed a new prototype capable of travelling around, interviewing people, collecting information, taking photos with an onboard camera, performing web searches and posting articles online, completely independently. Eventually, they could replace reporters in areas considered too dangerous for humans,” explains Romain Serre of the prestigious European Communication School in Paris.

Watchmaker, then? They do make quite a fuss about their manual skills: the painstaking hours they spend polishing chatons, angling bridges and mounting tourbillons in their handcrafted cages.

But let’s not be coy: robotisation and automation are already key factors in many aspects of watchmaking. In many cases, and increasingly, human beings are only there to set up the robots. A new division of labour is emerging, as we saw when we visited the Omega factory in 2014: “Each time a bridge is added to an assembly, a single screw is inserted manually purely to secure the movement during its transport. The remaining screws are then selected and screwed in automatically by a special robot,” we wrote.

A very well-known watchmaker said to us a few weeks back: “There is an urgent need to put humans back at the centre.” Yes, but which humans?

As our German futurologist warned, “Contrary to what everyone is saying, the danger lies not with the humanisation of robots, but with the robotisation of humans.”

66

EUROPE N°341 & INTERNATIONAL N°394 Two folios – Not sold separately

COVER STORY

| ON ITI ED AL OB GL

PATEK PHILIPPE NAUTILUS: A LASTING CRUSH Nick Foulkes on the saga of PANORAMA the legendary watch ANTARCTICA UNDERWATER WORLD

T AP CH

12

2 ER 017 .2

OUR COVER

PATEK PHILIPPE Nautilus 5711 Launched in 2006 for the 30th anniversary of the Nautilus, this iconic “steel jumbo” version, reference 5711/1A, is directly inspired by the historical reference 3700 born in 1976. The basics are here: stainless steel octagonal case, two lateral hinges, an integrated bracelet, a mix of brushed and polished surfaces, a simple display on a grooved blue dial. But the new 3-part case has grown a bit to 43 mm and is equipped with a sapphire caseback, the hinges are slightly curved, the crown is larger and the bracelet has rather flat central links.

The 5711 is equipped with a new automatic winding in-house movement calibre 324 SC (for seconde centrale or central second).

A freezing dive beneath the continent’s icebergs

18

PARAPHERNALIA

IN THE MIND OF URWERK’S MARTIN FREI A photo report on the tools that inspire him

22

PATEK PHILIPPE SA Ch. du Pont-du-Centenaire 141 CH 1211 Genève 2, Switzerland Tel. : +41 (0)22 884 20 20 www.patek.com

26

90

ARCHIVES

ROSKOPF, THE FORGOTTEN PROLETARIAN WATCH Diving into Europa Star’s treasure of archives

88

INDUSTRY

TOWARDS HUMAN OBSOLESCENCE? Finding the right balance with our robotic friends

50

PORTFOLIO

LESS, PLEASE !

When “Bigger is better” hands over to “Less is more”

HIGHLIGHTS TO WATCH

One watch per brand, and try to convince us!

SUBSCRIBE TO EUROPA STAR MAGAZINE www.europastar.com/subscribe | SUBSCRIBE TO THE WEEKLY NEWSLETTER www.europastar.com/newsletter | CHAIRMAN Philippe Maillard PUBLISHER Serge Maillard EDITOR-IN-CHIEF Pierre Maillard CONCEPTION & DESIGN Serge Maillard, Pierre Maillard, Alexis Sgouridis PUBLISHING / MARKETING / CIRCULATION Nathalie Glattfelder, Marianne Bechtel, Jocelyne Bailly, Véronique Zorzi BUSINESS MANAGER Catherine Giloux MAGAZINES Europa Star Global (Europe & International) | USA | China | Première - Switzerland | Bulletin d’informations | Eurotec EUROPA STAR HBM SA Route des Acacias 25, CH-1227 Geneva - Switzerland, Tel +41 22 307 78 37, Fax +41 22 300 37 48, contact@europastar.com Copyright 2017 EUROPA STAR | All rights reserved. No part of this publication may be reproduced in any form without the written permission of Europa Star HBM SA Geneva.

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

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Editorial

“EXPLOSION” GENERATION

BY SERGE MAILLARD

M

anpower recently released the results of an interesting survey it conducted among 19,000 young people born between 1982 and 1996 in 25 countries. It paints a picture of a generation whose aspirations differ dramatically from those of the previous generation, who were marked paradoxically by both the idealistic revolutionary spirit of 1968, and by the “loadsamoney” decades that came later. They had been freed from societal conventions, and all sorts of financial, economic and physical barriers had been lifted. The result: that tired old stereotype of the former revolutionary who now drives a sports car, and soothes those occasional pangs of guilt with a bit of retail therapy and a nice new watch.

Generation Y, on the other hand, has a far more straightforward relationship with career and money.

Paradoxically, the absence of a guilty conscience gives these Millennials more freedom to pursue the ideals their elders abandoned: prioritising professional harmony over an obsessive pursuit of financial and professional success; treating their peers the same, whatever their social status; achieving a work-life balance; returning to more conservative values; yearning for boundaries, limits, and at the same time a more friendly environment, when it seems everything has gone out of the window, and nothing is as it was. This generation has moulded itself into a paradox where individualism and resistance to authority have never been stronger (the result of the “social explosion”), but at the same time, the “digital explosion” has fostered an urge to rebuild bonds and (re)connect with their roots.

The tangible results of the attempt to reconcile these contradictory forces are clear from the Manpower study, which shows that acquiring personal skills (73%) is more important to Millennials than building managerial skills (27%). Just 16% are interested in leadership positions, while “working with great people” is far more important for 33%. Most favour the idea of “being their own boss, not being told what to do”. Manpower urges employers to remain open to “alternative ways of working”.

What are the consequences of these attitudes for the watch industry? Let’s look at two of them (there are many more).

As members of the workforce, Millennials, who have at their fingertips a palette of digital tools and countless inspiring figures to emulate, are keen to test the entrepreneurial waters, or to create their own space within a company, while maintaining a connection with their peers. It is no accident, then, that the charismatic CEOs Jean-Claude Biver (TAG Heuer) and Max Büsser (MB&F) are probably the most visible figures in our industry, given that both in their way have attitudes that will resonate with Generation Y. Mr Biver is known to be a “great guy” – dynamic and rich but not arrogant, and Mr Büsser promises his employees no more and no less than that they will “work with good people in a creative environment”. I rest my case.

As consumers, Generation Y are all over the place, which goes some way to explaining why, as we try to process the vast “explosion” of everything that is safe and familiar, the watch industry seems to have lost its direction. Torn between the authenticity of the local shop and the convenience of online shopping, they are riddled with contradictions that torture and tempt in equal measure. There are few signposts in this vast chaos, where sometimes it looks like those who shout loudest always win, before they are suddenly eclipsed by a newcomer that prides itself on moderation and reason. And so we turn from bling-bling to vintage. XXL machismo is replaced by the understated cool of Mad Men. That’s what happens, when you have a period of unprecedented and rapid technological, social and economic upheaval. In all of this, the Millennials are both executioners and victims, trapped between the previous generation, which lit the fuse, and the future digital natives who will reap the fallout.

There’s a French film called “Life is a Long Quiet River”. I’m not so sure about the “quiet” part.

10

LAUREATO, STEEL CASE, 42 MM

Calibre GP 1800 Hours, minutes, central seconds and date

info@girard-perregaux.com

In 2016, the 40th anniversary was marked, fittingly, with a model that mirrors the aesthetic of the original Nautilus: the white gold 44 mm Ref. 5976/1 chronograph, made in a limited edition of 1,300. Its sibling, of which there are only 700, is the platinum Ref. 5711/1. Both models sport diamond hour markers and an anniversary inscription on a blue dial.

Cover Story

Nicholas Foulkes is the author of the newly published Patek Philippe, The Authorized Biography.

NAUTILUS, A LASTING

COUP DE FOUDRE

BY NICHOLAS FOULKES

The 1970s was a period of immense change. It was the decade of the oil shock, punk rock, runaway inflation, and a humiliating defeat for America in Vietnam. This was an era of disruption, but it was also a decade that marked some outstanding achievements. Take 1976. It was the year that the supersonic Concorde entered regular service; the year that Toronto’s CN Tower became the world’s tallest building; and the year that Patek Philippe launched its steel sports watch, the Nautilus, water resistant to a depth of 120 metres. Mankind was travelling faster and building higher than ever before; and for the first time since the company was conceived in 1839, Patek Philippe customers could take their watch diving. Concorde would remain in service until 2003, after which we had to return to subsonic crossings of the Atlantic. The CN Tower would retain its title as the world’s tallest tower until 2010. But the Patek Philippe Nautilus is still very much in service and on the wrist.

T

oday the Nautilus is a family of watches with numerous members, and also a close relative, the Aquanaut, introduced in 1997 (see sidebar).

Back in the 1970s there was just the Ref. 3700/1a, the watch known fondly as the “Jumbo”, but it was enough. Almost everything about it was different from the Patek Philippes of the past: a steel watch that was more expensive than a gold one; the depth underwater to which it could be worn; the stunning integrated case and bracelet design conceived as an aesthetic whole; the idiosyncratic porthole-shaped case; the unusually large case diameter; and even the funky period packaging of a cork box were all departures from the Patek Philippe norm.

Conceived by the designer Gérald Genta, this watch has entered horological history as one of the outstanding and enduring designs of the second half of the twentieth century. It is interesting therefore to hear Philippe Stern say of the watch: “I was not quite convinced in the beginning.” At the time Philippe was taking on

more responsibility from his father for the running of the company, and in that context his caution was understandable. “It was some time after Gérald Genta suggested we make something like this for Patek Philippe that we finally said okay,” he recalls. “We decided we were going to make a prototype. And once we had made the prototype, we decided to launch the Nautilus.”

His hesitancy was rooted in the belief that the watch was counterintuitive. “This was during a difficult time. It was difficult for us to fight against quartz watches that were very thin and very fashionable.” The Nautilus dared to be different: it was mechanical and it was big. “A fine watch used to be small and thin. This was not quite a new philosophy but a new strategy for Patek Philippe. The Nautilus was a completely new line; it was for new customers, younger customers, people who travelled and played sports.” In short, men like Philippe Stern himself. continued on page 16

13

1976

1980

Ref. 3700/1

1981

1996

Ref. 3800/1

Ref. 4700/51

1998

Ref. 3710/1

Ref. 3800/1JA

Ref. 3900/1JA

2004

2005

2006

Ref. 3712/1

Ref. 3711/1G

Ref. 5060/S

2007

Ref. 5711

Ref. 5711/1

Ref. 5712/1

Ref. 5980/1

Following on from the success of the original steel “Jumbo” (top left) of 1976, which remained in the collection until 1990, the Nautilus has been remodelled in a variety of metals, sizes, and dial designs.

Milestones include the introduction of medium-sized models in 1981; in 1996, Roman numerals and the first strap model – this hybrid watch paved the way for the Aquanaut launched the following year (read sidebar); and the first ladies’ version in 1980.

In 2009 the original designer, Gérald Genta, collaborated on a new ladies’ model; while 2013 saw the launch of new strap and bracelet versions with more feminine dials; in 2015, the most recent ladies’ watch in the collection was launched, the first self-winding steel ladies’ model without diamonds.

Initially a simple time and date only watch, the Nautilus incorporated complications for the first time in 1998, introducing a winding gauge, followed in 2005 by a moon-phase model.

The collection’s 30th anniversary in 2006 was marked with a self-winding chronograph; while 2010 saw the introduction of an Annual Calendar model with a strap (a metal bracelet version followed in 2012) and the first strap chronograph.

Two popular, practical complications, a Travel Time function and a chronograph, were combined for the first time in a Nautilus case in 2014.

In 2016, the 40th anniversary was marked, fittingly, with a model that mirrors the aesthetic of the original Nautilus: the white gold 44 mm Ref. 5976/1 chronograph, made in a limited edition of 1,300. Its sibling, of which there are only 700, is the platinum Ref. 5711/1. Both models sport diamond hour markers and an anniversary inscription on a blue dial.

14

Ref. 5800/1

Ref. 5712

2008

2009

Ref. 5713/1

2010

2011

Ref. 5719/1

2013

Ref. 5726

Ref. 7010

Ref. 7010/1

2012

Ref. 7008/1

Ref. 5722

2015

Ref. 5980/1AG

Ref. 7118/1

Ref. 5976/1G

Ref. 7018/1

Ref. 7014/1

Ref. 5980

2016

Ref. 5711/1P

Ref. 5990/1

Ref. 5726

Ref. 7011/1

2014

Ref. 7118/1200

Ref. 7021/1

Ref. 5724

The original Nautilus box

One of the first advertisements for the Nautilus, stressing the versatility of the watch.

lapidage… all of the various polishing techniques applied to the Nautilus’s many surfaces: some rounded and smooth, some sharply defined and angular, some polished to brilliance, others satinated.

Creating the Nautilus and its bracelet remains demanding and exigent work, even 40 years after its launch. In the early 1970s, it was positively daunting, recalls Jean-Pierre Frattini, the veteran Patek Philippe case maker and designer who worked with Gérald Genta. “When waterproof watches came in, they brought new problems. We made water resistant watches that could withstand being held under a tap, but they were not waterproof for wearing while swimming,” remem(continued) bers Frattini. “There were problems with production at first, relating Then in his late thirties, Stern was a vigorous man. He was an to the joint that was visible from the side. We had many discussions accomplished skier who, had he not entered the watch industry, about this. The waterproofing was farther inside the watch, not at could have competed at the highest level. He was a keen yachts- this joint where there was a kind of lip, so if some water did get into man, too, and a frequent victor in regattas on Lake Geneva – a the watch it couldn’t get out again and could stagnate.” fact of which Genta was well aware, as his widow, Evelyne Genta, Working with specialists, the problems were gradually overcome. explains, “The Stern family was always sailing. So Gérald thought Nevertheless, it is ironic that, at first, such an avant-garde deof boats, and when he thought of boats he thought of the shape sign had to be made in a traditional way with parts that were not of the portholes.” interchangeable and case components that Gérald Genta had designed the Royal Oak for needed to be numbered to insure that they re“When the watch Audemars Piguet a few years earlier. It shares mained paired, and dials and glass that would some of the characteristics of the Nautilus, sometimes have to be recut to fit. However, by made its debut, it but the later watch shows the development 1975 the functioning prototype was undergowas greeted with of Genta’s style. Much like the great artists ing testing, albeit of an informal kind, on the whose work continues to evolve over the wrist of Gérald Buchs, who was in charge of overwhelming… course of a creative lifetime, looking at the watch creation at Patek Philippe at the time. incomprehension. preliminary sketches and paper maquettes it “I remember being in Zermatt in 1975 and I is possible to follow the designer’s thinking as At the beginning, the was wearing the first prototype,” says Buchs. “I he worked toward a horological expression of dip it into all the fountains and streams public was not really would functional elegance or elegant functionality.

I came across –testing it to find out if it was In Genta’s opinion, the Nautilus represented watertight. I would put it in the sun to see if it ready to understand a progression from the Royal Oak. showed any condensation under the glass it or to accept it.”

“He wanted it to be more anatomical than the as it dried. And of course, it passed the test!”

Royal Oak,” Evelyne Genta continues. “He felt The following year the watch made its debut. the Royal Oak was really only sporty – although now people It was greeted, Philippe Stern recalls, with overwhelming… inwear them with dinner jackets,” she laughs. “By contrast, he felt comprehension. “Maybe at the beginning, the public was not rethat the Nautilus was sporty but that it could be worn all day.” ally ready to understand it or to accept it,” he says, adding with This was something that early advertising for the Nautilus made typical understatement, “but little by little it became established.” clear, stressing the versatile elegance of the piece as much as There were some for whom the Nautilus was a coup de foudre its ruggedness and water resistance. “They work as well with a – a case of love at first sight – among them its designer. “It wet suit as they do with a dinner suit,” was one advertising slogan. was his favourite watch. He loved his Nautilus,” recalls Evelyne However, there was a downside to this new type of Patek Genta of her late husband. Among all the various models he Philippe watch. It was incredibly difficult to make. It appeared owned, it was “the prototype that he liked best of all. Later in at a time when watchmaking companies were bringing more of life, a few years before he passed away, he worked on a new the manufacturing process in-house and that included case and dial.” Far from being bored by revisiting a design he had made bracelet making. A few years ago I visited the polishing workshops a generation before, “he loved it, he absolutely loved it. He felt at Patek Philippe where I marvelled at the satinage, polissage, that this watch hadn’t got a wrinkle. To him the Nautilus was an chutage, anglage, avivage, sablage, lavage, feutrage, emerisage, amazing masterpiece; it always was.”

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NAUTILUS SPIN-OFF

AQUANAUT

CELEBRATES ITS 20TH BIRTHDAY

In 1996, 20 years after the Nautilus was launched, its seemingly unstoppable popularity appeared to stall. In response, Patek Philippe decided to launch a new version designed to appeal to a younger clientele.

Thus the reference 5060/S became the first Nautilus to come with a leather strap.

The dial was given Roman numerals, and some alterations were made to the 35.6 mm gold case: the two “hinges” on either side, affectionately called the “ears”, were shaved back, giving the watch an appreciably different look from previous Nautiluses.

This new reference was very well received by the public. So much so, in fact, that it was sent off to found its own family, closely related to the Nautilus. And so the following year, 1997, the Aquanaut was launched.

The octagonal steel case of the new Aquanaut was reminiscent of the Nautilus, but the design was rounder, more mellow. The highly distinctive embossed chocolate-bar dial motif was echoed on the composite rubber strap. The applied Arabic numerals and chunky hands made it highly legible. The first model was equipped with the same 330 SC movement as the Nautilus that inspired it.

The Aquanaut thus offered the younger generation a watch that was both sporty (being water-resistant to 120 m) and stylish: truly a go-anywhere watch. It was instrumental in helping Patek Philippe win over new, younger, converts.

Like the Nautilus, the Aquanaut collection would go through a number of iterations over its (so far) 20year history. It would be produced in gold, with a gold bracelet, and its size changed, inflating up to 38.8 mm for men and shrinking down to 29.5 mm for the ladies’ model. In 2004 Patek made a definitive bid for the women’s market with the highly anticipated 35.6 mm Dame Aquanaut Luce collection. This model introduced a whole new colour palette – Pure White, Mysterious Black, Midnight Blue, Adventurous Khaki, Ocean Blue and Luscious Plum – and a diamond-set bezel.

For its 10th anniversary, in 2007, the design was slightly modified to give it a sturdier, more powerful presence. Then, in 2011, a complication became available for the first time: the Aquanaut Travel Time.

This year, to celebrate the Aquanaut’s 20th anniversary, Patek Philippe is proposing the Aquanaut Reference 5168G, a men’s model in a new 42.2 mm diameter Jumbo size, driven by the automatic calibre 324 SC. With an embossed dial subtly shading from black to midnight blue, a satin-brushed bezel and a generously proportioned white gold case water resistant to 120 m, its unapologetically masculine appearance is the epitome of contemporary sport chic. (PM)

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After several days at the edge of the ice, it’s time for the baby Emperor penguins to take the plunge! And take it they finally do, but only after some hesitation‌ 18

Panorama

BENEATH

THE ANTARCTIC

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Beneath the ice I discovered a tropical garden. I was surprised to find the shades and colours of submarine flora reminiscent of the Caribbean at the South Pole! It’s cold, but the creatures take advantage of the stable conditions.”

The Gombessa project, led by French submarine biologist and photographer Laurent Ballesta and supported by pioneer of modern diving watches Blancpain through its Ocean Commitment programme, has already given rise to three major expeditions. The first led to an encounter with the coelacanth, a veritable “fossil” fish, off the coast of South Africa. The second took him to the atoll of Fakarava in French Polynesia to observe the intriguing annual gathering of camouflage groupers.

This time around, the explorer took his lenses and thermal diving suit to the French polar base, Dumont d’Urville, in the Antarctic in the company of film director and founder of the Wild-Touch foundation Luc Jacquet (March of the Penguins) and animal photographer Vincent Munier. Although the Emperor penguin reigns in solitary splendour on the surface, the submarine life is incredibly rich: Weddell seals, soft corals, crustaceans, jellyfish and starfish – a festival of colours and utterly unexpected at these latitudes.

The multiple dives in the Antarctic’s icy water – two years in the planning for two and a half months in situ – were not exactly easy: “They were the toughest dives I’ve ever done… You age very quickly, swimming in icy water at -2°C. I was unrecognisable when I came out of the water, the cold affected my face so much. My toes suffered the most, they took months to recover!” explains Laurent Ballesta.

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But the risk was well worth taking: “We made the deepest and longest dives ever made beneath the poles. We went down to 70 metres: we could have gone deeper, we would have liked to, but we didn’t get governmental permission...

Even so, it still enabled us to discover new, previously unrecorded species of fauna and flora.”

The expedition, which was also aimed at measuring the impact of climate change on the polar regions, resulted in a documentary film Antarctica, sur les traces de l’empereur (“Antarctica, in the footsteps of the Emperor penguin”) on the TV channel Arte, and a book entitled Adélie, terre & mer. Not forgetting, of course, the documentary L’Empereur by Luc Jacquet.

On this occasion, Blancpain is showcasing a new watch, the Fifty Fathoms Bathyscaphe Chronograph Flyback Blancpain Ocean Commitment II (BOC II), which sports for the first time an all-blue ceramic case. For each timepiece sold in this series of just 250, the sum of 1,000 euros will be donated to scientific expeditions. The sales of the first model of the watch helped to fund Laurent Ballesta’s Gombessa project to the tune of 250,000 euros, through Blancpain’s Ocean Commitment programme (more information at www.blancpain-ocean-commitment.com). It allowed the diver and biologist to continue his explorations in French Polynesia, this time focusing on the behaviour of the grey reef sharks.

A solitary Weddell seal, surrounded by the ice. By reducing its heart beat from 140 to 16 beats a minute, it is capable of holding its breath for nearly 70 minutes and diving to a depth of 600 metres.

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Paraphernalia

MARTIN FREI: TOOLS THAT INSPIRE

IMAGINATION

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©Niels Ackermann/Lundi13

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artin Frei is the co-founder and principal designer at Urwerk. It is virtually impossible to separate his work from that of watchmaker Félix Baumgartner. Working together in total harmony, in 1997, they opened new pathways in mechanical watchmaking (we need only consider the famous satellites that tell us the time) and prepared numerous as yet unexplored formal avenues. Their watches truly do not resemble any others available, either aesthetically or in their functionality.

We can’t really detach the formal work of Martin Frei from the mechanical research executed by Felix Baumgartner. But where does Martin Frei’s personal inspiration come from? His watches sometimes appear to have come straight out of a strange science-fiction film. What sort of imagination could they have been inspired by?

To allow us to understand this a little better, and just for us, Martin Frei has opened up his personal treasure box. At first sight, it’s just a mish-mash of flea-market junk, but on closer inspection, we start to get a grasp of the conceptual pathways that led to the creation of watches that are far from the ordinary. A journey inspired by insatiable curiosity, by an immoderate taste for “tools that can allow us to see the world from another perspective”, by an ongoing sense of sensuality and by an ever-present taste for unusual encounters that dates back to his childhood. Or, as Lautréamont said, the taste for what is “as beautiful as a sewing machine and an umbrella, meeting by chance on a dissecting table.” (PM)

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4 1 A heart “I was living in NY. I had met a girl and we decided to visit the flea market. I spied this heart and she offered to buy it for me. But over and above it being a sentimental memory, a heart is a machine, it’s our internal clock but without cogs. Evolution has developed this. It seems so simple to understand and yet it does an incredible job, unbelievable.”

2 Contrast Glass “This is a tool that allows us to view image contrasts, indispensable to all filmmakers. The day I bought it, I felt that I’d become a real filmmaker.

I still make films, videos and artistic documentaries. For me, being able to escape from watchmaking is as important as being part of it.”

3 Watercolours “This is a little rustic box of watercolour paints.

I still use these a lot. I love their absolute simplicity, with their own little corked water container and the little brush as fine as a cat’s whisker. Total freedom!”

4 Wooden object “This is the first thing I made at art school, made of hardwood, it has an incredibly delicate feel. I was inspired by a volcanic rock that I reproduced and enlarged. We could call it a big cumbersome spoon.”

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5 Mirror “I love all types of ‘machines’ that allow us to see the world differently. A mirror is also a machine. Since my childhood, they’ve fascinated me, I love the optical deformation. Show me someone who has never looked at their own deformed face on the back of a spoon.”

6 Minox camera and binoculars “I’ve always been fascinated by anything that enhances our senses. Pirates’ spy-glasses, telescopes and microscopes. To observe distances or close-up, here both are combined.

The fabulous Minox, a true design masterpiece, thought out to the last detail by Walter Zapp in 1936 and, because I‘ve been hugely inspired by these, I’ve doubled them up with an old set of Zeiss binoculars. A real do-it-yourself spy kit.”

The UR-T8 Reversible, the latest from Urwerk

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7 Mechanical map measurer “This has a little roller at the end. By pushing it along a road on a map, we can precisely follow the route and the instrument indicates the distance travelled in relation to the scale. I always look for instruments that show us something.

They’ve each got something different to teach us. Moreover, indicating time in a different manner gives us another perception of time.”

8 Duduk mouthpiece “This is truly simple object that older people will already know. It’s the mouthpiece and reed of a Duduk, a sort of ancient Armenian oboe. A gipsy musician gave it to me during a tour in Armenia. He had made it himself, but it’s perfect! There’s even sticky tape on it. It has a kind of warm - soft note.”

9 Transmission drive chain “This magnificent steel drive chain came from an abandoned industrial building in Zurich. They built enormous machines there. I went there and collected all sorts of pieces. I love all sorts of raw materials and this heavy but supple drive chain is an industrial masterpiece.”

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10 Crystals, seashells, cellphone antennas “The crystals have a geometrical order, the shells have fractal structures, the cellphone antennas washed by the sea become like coral. The physical laws of nature create order.”

11 12 13 14 15 16 17 18 19 In no particular order, but the list could go on and on: pilots’ goggles - made in the USSR to observe atomic explosions / a scale-rule / a Duchamp disc / a six-sided spinning top / “20,000 Leagues Under the Sea” by Jules Verne / a mechanical photographic cell / a penknife / nail file from the Okura Hotel Tokyo / a portable armillary sphere.

SPOTLIGHT

INTRODUCING

FENDI ISHINE Elegant and feminine, the new Fendi IShine Watch Collection displays three different gemstone looks with a simple twist of the crown. The Fendi IShine timepiece combines noble materials and precious stones in a sophisticated play of light and shade.

On the occasion of Baselworld 2017, Fendi Timepieces presents the new Fendi IShine Watch Collection, celebrating the FENDI DNA. Inspired by the eternal power of light, it features unique bright effects enhanced by a sophisticated colour palette, ranging from white to pink and red, recalling the pure light of the sunrays from sunrise to dusk.

By rotating the crown adorned with a prong-set precious stone at 3 o’clock, three different gemstone configurations are revealed: 12 white topazes, 12 gradient pink and red topazes or 12 black spinels adorn the dial, alternating with Arabic numerals and indexes for a sparkling effect.

The architecture of the new Fendi IShine Watch Collection is versatile yet audacious. Its new concave and convex case design transcends tradition and defines a new shape highlighting the polished and satin-brushed case flanks.

The watch is proposed in different versions including stainless steel, two-tone or stainless steel with soft touch flanks. The two-tone version features a black lacquered dial enhanced by a faceted white mother-of-pearl cabochon at the centre, drawing reflection effects like those of a diamond-cut jewel, in a beautiful contrast with the 18-karat gold-plated bezel, case flanks and black spinel-adorned crown.

Its refined allure is further emphasised by the satin-brushed stainless steel bracelet featuring faceted 18-karat gold plated central links.

The new 18-karat yellow gold plated and stainless steel Fendi IShine watch is enhanced with a ring of rotating gemstones on a sophisticated black and white mother-of-pearl dial.

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Portfolio

LESS, PLEASE !

WE’VE HAD “BIGGER IS BETTER”, NOW IT’S TIME FOR “LESS IS MORE”.

BY PIERRE MAILLARD

The trend seems to be reversing.

Slim, simple and nano are the newest buzzwords.

After a long decade when everything had to be bigger and better, we’re on the rebound, and less is definitely more. After an era of increasingly complexity, more complications, more functions, more displays, more components, XXL sizing, busy dials and inflated prices, the needle is swinging back towards a more elegant and understated style, with reduced sizes, a renewed taste for ultra-thin cases, and prices beating a hasty retreat. But there’s also a demand for lightness, refinement and technical simplification, and promising new research points the way to something people are calling “nano-horology”.

But, as we will see in the following pages, “less” can sometimes be more complex than “more”. Ludwig Oechslin, the master of simplification, puts it like this: “To make things simpler, you have to think harder.”

Designing a “simple” three-hander that will stand out from the thousands already in existence can be far more difficult that stuffing a dial full of scales and counters. The same goes for slimness, lightness, and reducing the number of components, and equally for the avenues of research leading to nano-horology, such as the explorations of Greubel Forsey (and others who continue to work behind closed doors).

PERPETUAL CALENDAR by Ochs und junior

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DR LESS

“My pieces seem simple, but the intellectual path to a simple build is extremely complex. Making things simple is not the same as simplifying. For instance, it might mean designing a single part that can perform three different tasks and solve three problems.”

LUDWIG OECHSLIN

When we ask Ludwig Oechslin about “simplification” he immediately corrects us: “My aim is not simplification per se; my aim is to make watches that are useful, reliable, precise and durable. Reducing the number of parts, and thereby simplifying the movement, is a way of achieving this. By increasing the number of parts you increase the possibility of error. Some parameters are impossible to calculate, particularly those concerned with friction.

Mathematically, precision is calculable, but physically, it’s relative.

In my view, functionality is more important than beauty, or the number of parts. My kind of watchmaking is completely the opposite to Haute Horlogerie.”

Dr Ludwig Oechslin is an unusual figure among the great watchmakers of our time. The former curator of the International Watchmaking Museum in La Chaux-de-Fonds (MIH) is a Renaissance man, someone for whom the usual boundaries between different intellectual disciplines simply don’t exist. After graduating with degrees in Classical philosophy, Latin, Greek and archaeology, he embarked upon a watchmaking apprenticeship while simultaneously teaching him-

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self mathematics, astronomy and mechanical engineering.

He also found time to study theoretical physics as part of his studies in the philosophy of science, and was awarded a doctorate by the Swiss Federal Institute of Technology in Zurich for his thesis on “priest-astronomer-mechanics”.

“But what was fundamental for me,” he explains, “was the analysis I had to perform on the Farnese clock in the Vatican Museum. It is an extraordinary clock, extremely complicated, which uses several levels of epicyclic planetary gearing. What is fascinating is that Bernardo Facini, who built the Farnese clock, didn’t have all the mathematical tools he needed to calculate the gearing, so a large part of his work was based on experiment. As I worked on the clock I developed my own mathematical models, which subsequently enabled me to work out potential new systems. Having to recalculate and rebuild something according to a pre-established mechanical blueprint requires serious thought. And thanks to this analysis I was able to rediscover those lost ideas, which today have become innovative ideas.”

The Trilogy Ludwig Oechslin’s first creation, presented in 1985, which was a direct result of this research, remains a landmark. In 1981, in collaboration with his watchmaking mentor, Jörg Spöring of Lucerne, he built an astrolabe clock. Rolf Schnyder, who had just taken over as CEO of Ulysse Nardin, asked if it could be made into a wristwatch. This became the Astrolabium Galileo Galilei, which has a movement based entirely on epicycles, and which indicates the position of the sun, the moon and the stars in the sky at any given time. It also indicates sunrise and sunset, the phase of the moon, solar and lunar eclipses, the month and the day of the week. All this comes in a 40 mm case with a thickness of 12.8 mm. It requires adjusting once every 144,000 years. A phenomenal achievement.

Two further watches would follow, to complete the Astronomical Trilogy: the Planetarium, “mechanically simpler, because the five planets rotate around a single axis with a precision of several thousand years, but mathematically more complex,” and the Tellurium, which uses a coloured dome to display the daylight side of the Earth. “But I had to find an extremely slim solution to fit on the watch dial.

I came up with the idea of a wire that could be deformed by means of two torque points, one at each end. The Moon is mounted on an epicycloid, so that it always faces the sun.”

A MANIFESTO OF REDUCTION Facts about Ochs und Junior watches • Concept: Rigorously simple watches by Ludwig Oechslin.

• Unique point 1: Ludwig Oechslin creates ochs und junior watches for his own pleasure. They are not designed to meet the needs of the market.

• Unique point 2: ochs und junior watches use gear systems to implement functions. Their turning wheels support Oechslin’s goal of displaying time horizons in analogue fashion. Traditional mechanical watches implement functions using levers and springs (and far more parts).

• Unique point 3: Oechslin’s date spiral is designed to make the time the first information in the watch’s visual hierarchy, and to make the date readable from the same distance as the time.

• Unique point 4: Patination and milling for dial contrast.

• Unique point 5: Visibly machined cases, crowns and buckles that do not obscure the raw materials they use.

• Unique point 6: No logo and no descriptive text on the dial or the case.

• Current models: Oechslin’s perpetual calendar watch is executed with just 9 additional parts, and the date can be adjusted forwards and backwards. His moon phase watch provides 3,478.27 years of precision using 5 parts. His annual calendar watch offers analogue display of the month, date and weekday using 3 additional parts. Oechslin’s date watch has just the essentials, and his two time zones watch displays two time stories on one hand.

• Price range: CHF 6,000 – CHF 22,000

In addition to these astronomical performances, Ludwig Oechslin threw himself into the pursuit of reliability, which resulted in the Perpetual Ludwig, created for Ulysse Nardin in 1996. Abandoning traditional levers in favour of the exclusive use of wheels and gears, he succeeded in eliminating all risk of user error, which until that time was the main problem with a perpetual calendar. Simplification, in the service of reliability.

There followed the brilliant Freak, also for Ulysse Nardin, which appeared in 2001. The aim of this project, which took him ten years to bring to fruition, was “a simpler and more reliable escapement than the pallet escapement. I achieved this by means of an entirely symmetrical escapement: the two wheels supply the same amount of energy to a tiny central component. It’s very simple from a theoretical point of view, compared with the complex angles of a pallet escapement. It’s also easier to make, and more reliable. What’s more, there is very little friction, which makes lubrication unnecessary. We used silicon for this escapement: we needed a very strong and light material to reduce inertia.” The escapement is mounted on a carrousel, which performs one rotation per hour. “Everything is epicyclic, except for the barrel, which occupies the entire back of the watch, and provides a power reserve of eight days. The movement is wound by means of a bezel on the back of the watch, and the time is set using the front bezel.” Simple, when you think about it. But there aren’t many people capable of thinking about it quite like that.

Radical simplification From 2002 to 2014, Ludwig Oechslin was director and curator of the Musée International d’Horlogerie in La Chauxde-Fonds. When he left Ulysse Nardin he left behind all the countless ideas he had developed for them – as far as the watch industry was concerned, he worked exclusively for them. Among these ideas was one that would result in the MIH watch; it saw the light of day because Rolf Schnyder generously agreed to hand over the copyright. “I wanted to make a genuinely useful watch, with a calendar function that put the day, date and month on a single line. This could only be found on Patek Philippe pocket watches. I had to find a solution that would allow it to be big and highly readable. I moved the line to the side, because it wasn’t possible to have it in the centre. And that is how my annual calendar was born.”

But there was still so much that Oechslin wanted to do.

“During my time with Ulysse Nardin I made many other proposals to Rolf Schnyder, some of which he considered ‘too simple’ for his brand. He agreed to liberate this potential so that I could use it elsewhere.”

And that is how Ochs und Junior was born.

In possession of his own brand for the first time, Oechslin had complete freedom to develop all his ideas for technical simplification and optimum legibility.

See three examples of simplification on the next pages:

PERPETUAL CALENDAR For his Perpetual Calendar, which has the same perforated analogue display as the Annual Calendar, Oechslin achieved “extreme simplification” with just nine additional components, and three modified components*. This drastic reduction also means far fewer interactions between the parts, and thus superior reliability.

The Perpetual Calendar is no longer adjusted by means of a traditional pusher system, but simply via the crown.

The date can thus be adjusted in both directions.

It takes just 23 minutes to assemble the Perpetual Calendar watch.

1. Dial* • 2. 12 hour ratchet wheel* • 3. Date disc* • 4. Baseplate for perpetual calendar mechanism • 5. Date ratchet wheel • 6. Bridge 7. Month ratchet wheel • 8. Another bridge • 9. In-between wheel • 10. Month disk • 11. 4-year ratchet wheel • 12. Additional tooth

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ANNUAL CALENDAR Oechslin’s goal is not only technical, requiring the number of parts to be reduced to a minimum; it is also functional and ergonomic, offering the simplest and most direct way of displaying calendar information.

So, for his Annual Calendar, the holes in the dial serve as analogue indicators: 31 holes around the outside show the date, 7 holes at 6 o’clock display the day of the week, and 12 holes at 12 o’clock indicate the month.

The date is adjusted once a year, on 1 March.

Technically, Oechslin has succeeded in designing an annual calendar mechanism with just five components (compared with the usual 150 or so):

1. Dial that serves as a module in the gear system • 2. Month disc and cog with 5 teeth, double-toothed • 3. Weekday disc • 4. Collar with two fingers bonded to the hour rod 5. Date ring 1 30

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MOON PHASE Oechslin has applied the same extreme technical simplification to the moon phase function (which requires adjustment every 3,478.27 years) by offering a direct and instructive reading of the relationship between the Earth, the Sun and the Moon. The centre of the watch represents the Earth, and the golden disc at 12 o’clock represents the Sun. Full moon is indicated when the Moon is at 6 o’clock, directly opposite the Earth and the Sun. The new moon is when the Moon is hidden between the Earth and the Sun, at 12 o’clock. At that point, the Moon is represented by a black disc at 6 o’clock. There are also 31 perforations to indicate the date.

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An epicyclic gear train driven by a central finger (1) bonded directly to the hour pipe turns the lunar disc (2) beneath the dial counterclockwise. The central finger engages with a wheel that has 12 teeth (3), whose pinion with 14 teeth meshes with an 18-tooth wheel (4), whose pinion with 14 teeth meshes with the fixed recessed ring gear with its 109 teeth (5) machined into the underside of the dial. In addition, there is a date ring (6).

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New: The Graduates’ Club

Congratulations! We’re celebrating academic success with the Campus series — b eautiful mechanical timepieces, made in Glashütte, Germany, for wherever life leads next. And on the back: space for parents, grandparents, aunts and uncles, and all their best wishes as a complimentary engraving. nomos-glashuette.com, nomos-store.com

FROM LESS TO NANO…

GREUBEL FORSEY MECHANICAL NANO

The minuscule deadbeat second, spinning inside the case, seen through a hole in the case equipped with a magnyfing glass.

This drive wheel can operate using power of 20 nano-Newtons, which is 100,000 times less than the energy required to move an escapement wheel.

ø 35 mm •

ø 35 mm •

On paper, the advances that would enable watchmaking to take a nanometric approach are spectacular, and we can expect some major upheavals. Just look at the advantages put forward

by Greubel Forsey, as a result of their groundbreaking research: • gains in volume, resulting in up to 90% more space available • gains in energy, with consumption reduced by up to a factor of 60 • simplified mechanisms with up to three times fewer components required (in the 2016 prototype) renewed creativity and new approaches.

Barrel, nb/tr: 14.70 •

Barrel, nb/tr: 14.70 •

Nano is watchmaking’s next frontier. For a number of years now, watchmakers’ R&D departments have been exploring this promising new territory. Greubel Forsey, through its EWT Laboratory, has been working for the last ten years “in the greatest secrecy” on pushing back the limits of miniaturisation. At the recent SIHH, Greubel Forsey took the wind out of everyone else’s sails by unveiling some of their theoretical advances, providing a glimpse of a minuscule deadbeat seconds, barely one millimetre high, spinning swiftly inside the case.

CONVENTIONAL WATCH MOVEMENT

3 days power reserve

Mechanical nano • mecanism zone

MECHANICAL NANO WATCH MOVEMENT

180 days power reserve, volume gain + 90%

Through the loupe built into the caseband we were able to admire in person the crazy nano-hand, galloping through the eighths-of-a-second, nestled in the heart of the watch.

It’s truly mind-boggling.

“Gaining this much energy and this much space opens up perspectives that we could never have dreamed of before,” explains Stephen Forsey. “By economising energy consumption by up to 60 times, we can achieve power reserves that, at this stage in our research, are as high as 180 days, using a regular-sized barrel. What is more, we can use the energy produced by air turbulence inside the movement: ‘draughts’ have become functional. So a drive wheel can operate using power of 20 nano-Newtons, which is 100,000 times less than the energy required to move an escapement wheel.”

Contrary to what one might imagine, working on a nanometric scale (there are one billion nanometres in a metre) is not about using the same components, only smaller. Far from being a microscopic reproduction, moving from a scale of tenths and thousandths to billionths provides an opportunity to completely reconfigure the energetic and spatial distribution of a movement. The space freed up – which is considerable on the scale of a watch movement – provides an opportunity to consider hitherto undreamed-of functions. But which? “A whole new space has opened up,” replies Stephen Forsey. “It forces us to think about what we’re going to do with all this volume. It really is a Terra Incognita. We’ve already added a frequency indicator. But what comes next? The creative and functional opportunities are literally unheard-of.”

Over the course of 2017 and 2018 Greubel Forsey will unveil the results of its research, implemented in two prototypes.

We are promised a look at the first Mechanical Nano timepiece “in the near future”.

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LESS STRESS, MORE EMOTION SLIM D’HERMÈS L’HEURE IMPATIENTE

The way we tell the time alters our perception of time. The sight of sand running through an hour glass is not the same as a chronograph ticking off the seconds. An hour glass gives a visual depiction of both elapsed time and the time that is left, in the form of the sand waiting to run through that little hole in time. Inside the hour glass, past, present and future occupy the same space.

With Le Temps Suspendu, and then L’Heure Masquée, Hermès introduced us to a new way of coping with time, by suspending the inexorable march of the hands around the dial, or by playing hide-and-seek with them. With the brand new L’Heure Impatiente, Hermès provides the triumphant closing chapter to a truly unique trilogy.

“Rather than measuring, counting down, or controlling, we prefer to play with other ways of looking at time, inspire an emotional response, open parentheses in time, create poetic spaces. We want to sidestep traditional watchmaking, we want to be a bit off-centre. What we love is fantasy, levity, whimsy and liberty. We don’t want to take ourselves too seriously, but we are serious about what we do,” explains Laurent Dordet, CEO of La Montre Hermès.

The inspiration for L’Heure Impatiente comes from Philippe Delhotal, director of development and creation. Reminiscing about how impatient he was as a child, waiting for a promise to be kept or, later on, how his heart raced in anticipation of a date, he got out his pencil and quickly sketched out his idea.

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The watch counts down from 60 minutes, chiming softly when the time is up. It’s like an hour glass on the wrist. With a simple, pure, minimalist dial.

“It took him two minutes, but it took me five years!” laughs Jean-Marc Wiederrecht, who works with Hermès on its most poetic timepieces. “It’s never been done before. And we had to fit it into a standard Slim case, which actually ended up 0.8 mm wider.

There’s a small dial that shows the time of the meeting, which is adjusted via a push-piece, and a hand that counts down 60 minutes, activated by another pusher. And then there’s a 1½ second chime. We had to be able to produce the sound at a given time, using just the energy supplied by the movement. And the energy had to be available without disturbing the running of the watch. We designed a prestressed helical spring that, thanks to a concentric 360° cam, accumulates energy over the course of one hour, and releases it at the scheduled time. We also had to find the right shape and material for the gong, leaving as much air as possible around the movement for sound quality. The difficulty lay in resolving these issues while simplifying as much as possible.”

Some, indifferent to this vision of time, will no doubt consider this a “pointless” complication. But it’s a safe bet that its wearers will use it more often than chronograph wearers use their “useful” complication. For some, the hour glass is half full; for others, it’s half empty.

LESS HEAVY RICHARD MILLE RM 50-03 MCLAREN-F1 Less than 40 grams. That’s eight sheets of standard A4 paper, or two small slices of bread. At 39.55 grams, the RM 50-03 McLaren-F1 is quite simply the world’s lightest mechanical chronograph.

How was this achieved? Thanks to graphene, a nanomaterial six times lighter and 200 times stronger than steel, which was isolated in 2004 by Andre Geim, a physicist working at the University of Manchester, who won the Nobel prize for physics in 2010 for his discovery, along with Konstantin Novoselov.

When graphene is injected into TPT carbon it considerably reduces the carbon’s density, while simultaneously increasing its strength. The 600 layers of parallel filaments, each no more than 30 microns thick,

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which make up the carbon fibre, are injected with a graphene-rich resin. The layers are then assembled by a CNC machine, which adjusts the orientation of the fibres by 45° between each layer. After being heated to 120°C at a pressure of 6 bar, the composite is solidified.

Richard Mille has access to this technology through its close relationship with the McLaren Technology Group and McLaren-Honda, which work together to incorporate graphene into their Formula One racing cars, in collaboration with the University of Manchester, McLaren Applied Technologies and North Thin Ply Technology.

The movement on its own weighs just seven grams. This is achieved by using a combination of grade 5 titanium and TPT carbon for the plate and bridges. Extreme skeletonisation of the components does the rest.

LET’S BE SLIM

technicians and stylists alike with a movement so thin that it defied the logical underpinnings of watch mechanics, measuring just 1.2 millimetres thick. This calIf you needed a demonstration that time is cycli- ibre is as bold as it is brilliant. It incorporates a numcal, the ebb and flow of trends could serve as use- ber of ingenious solutions that could be of interest to ful pointers. After a decade in which watches have all watch manufacturers, although not at a thickness continued to grow in size, they are now of 1.2 millimetres...” shrinking again, in both diameter and Designed by watchmaker Pierre Mathys, thickness. Slim, thin, extra-flat watches this movement was revolutionary in a are the latest trend, as they have been on number of ways, but particularly in one occasion in the past. of its more unique aspects: for the first In 1976, for example, the cover of Europa time, every element of the gear train Star was dedicated to Jean Lassale, who rotated on a single bearing driven into had just unveiled “the world’s thinnest a bearing block, which itself was part of watch”, with a hand-wound movement the baseplate, incorporating the thickmeasuring just 1.2 mm thick (2.00 mm for ness of the movement itself. the automatic version).

However, the Jean Lassale company got Jean Lassale, Europa Star 1976 At the time, Gilles Baillod, editor-in-chief into difficulties, and Seiko took over in of L’Impartial and a great watch connoisseur, wrote: “In 1979 (beating Omega to it). The patents for calibre the field of mechanical watchmaking, we didn’t real- 1200 and calibre 2000, however, ended up in the hands ly expect any more mechanical inventions that could of Nouvelle Lemania. Lemania supplied them exclube considered great discoveries. And yet! At the Basel sively to Piaget and, later, after Piaget was taken over Fair in April 1976, a man who was unknown, or virtu- by Cartier, Lemania also supplied them to Vacheron ally unknown, to the watchmaking establishment, Constantin. unveiled an innovation that captured the attention of Today, slim watches are making a comeback.

PIAGET ALTIPLANO Piaget didn’t wait around for Jean Lassale to develop his 1200 calibre to venture into the domain of the ultra-thin watch. As early as the 1957 Basel Fair, Piaget presented its manually wound calibre 9P, which measured 2.00 mm (0.8 mm more than Lassale’s future 1200). Three years later, in 1960, the 12P made its appearance: an automatic 2.3 mm calibre, made possible by the use of an off-centre micro-rotor. This achievement was justly applauded at the time.

This mastery of ultra-thin movements, combined with a generous dial size, enabled Piaget to develop a particularly elegant, understated style which became an international success.

This year, to mark the 60th anniversary of Piaget’s commitment to the ultra-thin watch, the company is unveiling a whole series of new slim versions.

They include the Altiplano Tourbillon Haute Joaillerie, a rare example of a tourbillon in an extra-thin watch.

The movement that drives it, the manually-wound 670P, measures a remarkable 4.6 mm deep. The tourbillon cage weighs just 0.2 g.

ALTIPLANO TOURBILLON HAUTE JOAILLERIE

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VACHERON CONSTANTIN PATRIMONY QUANTIÈME PERPÉTUEL Among the great watchmaking houses, Vacheron Constantin has some very serious references in the ultra-thin segment, including the calibre 1003, which came out in 1955. At its debut, this manually wound Geneva-hallmarked movement was the thinnest in the world, measuring just 1.64 mm (almost the same as a 5 Euro cent coin), a mere 0.44 mm more than Jean Lassale’s calibre 1200, which would not appear until 21 years later.

Vacheron Constantin’s expertise in ultra-thin technology goes back even further, in fact: in 1931 Vacheron Constantin unveiled the world’s thinnest pocket watch, built on a movement 0.90 mm deep. But at such minute tolerances, the exercise becomes something of a tightrope walk.

The last product of Vacheron Constantin’s longstanding relationship with millimetres and their tenths and hundredths is the automatic 1120 QP calibre, which is 4.05 mm deep. This stunning achievement of miniaturisation and reliability was the result of a classic, traditional construction. Displaying hours, minutes, perpetual calendar (day of the week, date, 48-month counter with leap year) and moon phases, the Vacheron Constantin Patrimony Quantième Perpétuel comes in a case just 8.90 mm deep.

BULGARI OCTO FINISSIMO TOURBILLON SQUELETTE At a record-setting 1.95 mm, the Bulgari calibre BVL 268 Finissimo Tourbillon remains the world’s thinnest tourbillon movement. Now fully skeletonised and visible from both sides of the watch, it gives up some of the “secrets” that enabled Bulgari to achieve this astonishing feat of miniaturisation.

The cage of the flying tourbillon is driven by a peripheral mechanism mounted on ball-bearings, which considerably reduces the total height of the movement. Its 62-hour power reserve, an amazing feat for an ultra-thin movement, is also the result of innovative use of ball-bearings: the barrel spring is in fact a slip-spring, and the barrel itself is supported on three ball-bearings, which doubles the height of the spring and thus achieves an 80% increase in the power reserve.

The Octo Finissimo Tourbillon Squelette is the latest addition to the Octo Finissimo collection, following in the footsteps of the extraordinary Minute Repeater presented last year, which was equipped with the calibre BVL 362, itself no slouch in the thinness department, at 3.12 mm.

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CARTIER DRIVE EXTRA-PLATE With a total thickness of 6.6 mm, which is 40% slimmer than the previous automatic version, the Cartier Drive Extra-Plate is undeniably elegant. Its slim profile is down to the manually-wound 430 MC movement. The same movement, with its 131 parts, was used to drive the very slender (5.1 mm total depth) Tank XL ultra-thin, which came out in 2012.

JEAN MARCEL NANO 3900µ

AUDEMARS PIGUET ROYAL OAK EXTRA-THIN The calibre 2121 that drives the new AP Royal Oak Extra-Thin is the secret behind the legendary Royal Oak, which made its debut in 1972. Contrary to appearances, the apparent solidity of Gérald Genta’s design of the first Royal Oak required an ultra-thin movement.

But the calibre didn’t come out of nowhere. It was preceded by a long history of rivalry and collaboration between Audemars Piguet, Jaeger-LeCoultre and Vacheron Constantin. Its heritage can be traced back to 1921, when Audemars Piguet introduced a pocket watch movement measuring 1.32 mm thick, in response to the 1.38 mm movement unveiled by Jaeger-LeCoultre in 1907. This was followed in 1953 by the calibre 2003, developed by all three watchmakers in collaboration, then in 1967 the first automatic calibre, the 2020 measuring 2.45 mm, designed by a fourth partner, Patek Philippe.

Its descendant, the 2121, with a thickness of 3.05 mm, launched by Audemars Piguet in 1972, is where the Royal Oak saga begins. The latest chapter of that saga features the new extra-thin Royal Oak in yellow gold, driven by the 2121.

Breaking the 4 mm barrier was the challenge Jean Marcel set itself after the success of its previous collection, the Ultraslim, which successfully met the mark of 4.5 mm. After a number of feats of engineering wizardry, the brand overcame the challenge with a case measuring 3.9 mm (hence the name – Nano 3900µ).

With a water resistance of 3 atm, sapphire crystal and a simple, elegant face, the Nano collection features some of the slimmest watches in the world.

La Royale

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CITIZEN ECO-DRIVE ONE Record: broken. Encased, the Eco-Drive One measures an incredibly slender 2.98 mm, which makes it unquestionably the slimmest solar-powered quartz watch in the world.

In order to achieve this spectacular and extremely elegant result, Citizen’s engineers designed a movement 1.0 mm deep. They had to redesign all the components, and pioneered the use of new materials for the case, including cermet, a composite of ceramic and metal. The bezel is made of “binderless cemented carbide”, which is extremely hard and impervious to oxidisation.

“Technology exists to enhance beauty. That’s how we define it,” states Toshio Tokura, President and CEO of the Japanese watchmaker.

CLASSY MINIMALISM

CARL SUCHY & SÖHNE WALTZ Nº 1

MOVADO ULTRA SLIM Created in 1947 by the famous Nathan George Horwitt, the Museum doesn’t look a day older as it prepares to celebrate its 70th birthday. It remains the undisputed symbol of stylistic rigour and simplicity. Brilliantly reinterpreted in 2016 by designer Yves Béhar, who fulfilled his sensitive brief with a daring concave shape, this year the Museum displays a more slender profile. With a depth of 6.3 mm, it is more minimalist than ever.

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After a creative break of almost 100 years, the watch brand Carl Suchy & Söhne, founded in 1822 in Vienna, Austria, is reborn. The Swiss-made COSC certified mechanical watch “Waltz Nº1” is the result of an inspiring collaboration between Marc Jenni, member of the Académie Horlogère des Créateurs Indépendants, designers Reinhard Steger and Milos Ristin as well as creative director Robert Punkenhofer.

“Waltz Nº1” follows a design approach inspired by Adolf Loos, the pioneering architect of Vienna around 1900. It expresses a strict minimalistic aesthetic direction. The iconic seconds hand is a reference to the Viennese Waltz and Vienna´s sense of time where the second does not count.

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SPOTLIGHT

CASIO COMBINES TRADITIONAL

JAPANESE CRAFTSMANSHIP WITH CUTTING-EDGE TECHNOLOGY

THE NEW LIMITED EDITION G-SHOCK With the MRG-G2000HT, Casio continues its quest to combine rugged durability and high-tech with the beauty of ancestral Japanese craftsmanship.

The flagship of the G-Shock series features GPS Hybrid Wave Ceptor technology to ensure the watch remains accurate in any location on Earth, under virtually any conditions. The watch receives standard time information via terrestrial radio waves, GPS satellite signals and, now, Bluetooth transmission.

The watch selects the most appropriate system for the conditions, and supplies the correct time and daylight saving information for the current time zone.

The companion MR-G Connected smartphone app provides additional functionality, with World Time for over 300 cities, automatic time adjustment and watch status display, over a Bluetooth connection.

But the premium MR-G range is not just about high-tech.

This limited edition showcases the distinctive kasumi tsuchime technique, first used over 1200 years ago to decorate armour and copperware. The bezels and strap inserts of each of the 500 watches in this limited edition are worked by master craftsman Bihou Asano of Kyoto, whose family has safeguarded the tsuchime tradition for generations. The age-old metal-hammering technique uses deft strokes of a special tool to impart a distinctive pattern to the metal surface. Here, the technique used on the bezel and centre band leaves eye-shaped indentations that ensure that no two watches are exactly alike. After hammering, the forge-cast titanium is subjected to a deep layerhardening process, and a blue-DLC (diamond-like carbon) coating is applied to the bezel, case back and metal plate at 10 o’clock. As well as improving abrasion resistance, it provides an opportunity to apply colour to selected parts of the watch. Casio has developed a unique shade called Japan Blue, based on the Japanese indigo hue familiar from traditional dyed fabrics. To achieve this unique deep shade requires a complex and labour-intensive process, made even more difficult by the irregularities in the hammered surface.

Integration of traditional Japanese craftsmanship with advanced CASIO technologies

KASUMITSUCHIME –HAMMER TONE–

MR-G Connected Smartphone app Developed specifically for MR-G premium models, and updates information of time zones and DST. • Automatic time adjustment* • World Time for over 300 cities* • Watch status display * Updating of internal data to reflect the latest time zone / daylight saving time information

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THE G-SHOCK GRAVITYMASTER The GPW-2000 G-SHOCK GRAVITYMASTER has been designed with the needs of aircraft pilots in mind.

As well as supremely accurate timekeeping, the GPW-2000 offers superior shock resistance to cope with extreme altitude and speed. The Triple-G construction provides protection from three types of gravitational stress – external shocks, centrifugal force and vibrations – and an anti-magnetic plate within the module prevents the hands from beaing moved as a result of magnetic forces. The case is constructed from carbon fibre, a material extensively used in aircraft for its superior strength and lightness, with the additional protection of FRP (Fine Resin Parts) both within the watch’s frame and at the ends of the strap, to strengthen stress points and provide further vibration resistance. Optimum readability under difficult conditions is assured by bold phosphorescent hour markers and dashes of red, all within a dramatic multi-layered 3-D dial. The low specific gravity of the vermilion carbon fibre second hand makes it possible to increase its size while maintaining impact resistance. Night-time visibility is provided by the Super Illuminator, a highbrightness LED. As well as time zone and adjustment functions, the G-Shock Connected smartphone app also features a flight log function, which can store location and time data to provide a travel history, including point of departure, interim and final destination, and return destination. A latitude/longitude display and Coordinated Universal Time (UTC) indicator provide further navigational aids.

G-SHOCK Connected Smartphone app Developed exclusively for GRAVITY MASTER, updates time zones and DST information.

• Automatic time adjustment* • World Time for over 300 cities* • Flight Log function * Updating of internal data to reflect the latest time zone / daylight saving time information

Shock-resistant

Vibration-resistant

Centrifugal force-resistant

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CASIO WATCH+ Smartphone app

Easy setting of various watch functions.

• Automatic time adjustment * • World Time for over 300 cities* • Target Time Indicator • Phone Finder • Stopwatch data transfer * Updating of internal phone data to reflect the latest time zone /daylight saving time information Target Time Indicator & Stopwatch data transfer [Smartphone App] Linkage with a smartphone app has led to development of stopwatch functions that are useful for managing and employing race data.

These functions were developed based on suggestions from pro racing teams, and spectators also find them helpful.

THE NEW CONNECTED EDIFICE The EDIFICE EQB-800DB is a sporty, high-performance metal analogue chronograph inspired by the world of motor racing and designed with input from professional racing team members. The bold, dynamic design with blue accents features a retrograde hand driven by a dual-coil motor to indicate speed, while displaying stopwatch measurements in 1/20-second increments. The same hand also shows smartphone connection status and battery level.

The on-board chronograph functions are augmented through connectivity with the Casio Watch+ smartphone app, which provides individual lap management of up to 100 laps, as well as a target time indicator.

A countdown begins 10 seconds before the target time, acting as a reference for the target car’s approach, and the indicator displays the difference from the target time for each lap.

The EQB-800DB enjoys all the other features that make the Casio G-Shock an obvious choice for intelligent men who enjoy an active lifestyle: an abrasion-resistant sapphire crystal with non-reflective coating, integral guard structure to protect the crown, and Tough Solar technology with shadow-dispersing technology to extend battery life.

www.casio-watches.com/basel/en 47

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SPOTLIGHT

MONDAINE

IT’S TIME FOR AN EVOLUTION! Mondaine proudly presents the new SBB evo2 watch as a successor to the iconic EVO collection. It sticks with its success factors, being easy-to-read and true to the original, while optimising functionality and design at the same time, with its ergonomically designed watch case and lugs and its functionally designed crown.

Continuing this unification of the classical with the revolutionary, Mondaine has created a successor to the classic and revered Mondaine SBB evo - the Mondaine SBB evo2.

The new Mondaine SBB evo2 has been subtly refined for contemporary life. Its slightly rounded shape with an almost seamless transition to its case back has been ergonomically designed for ultimate comfort. Refined case lugs and a new functional crown sit in perfect proportion throughout the whole collection for precise balance.

The scratch resistant sapphire crystal ensures the new model hosts the highest technical and aesthetic quality. With the addition of a stainless steel mesh bracelet and leather strap, with visible black stitching on the IP black plated models, the collection is completed by the internationally revered ‘Swiss Made’ stamp of approval, which Mondaine wears with pride alongside its iconic status.

These intelligent updates are almost invisible, but the sum of its collective parts makes the evo2 a desirable contemporary range.

It has been over 15 years since the original Mondaine SBB evo was introduced and Mondaine anticipates that the new line will continue its omnipresent position in the watch market.

Ergonomically designed watch case and lugs.

Functionally designed crown.

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SPOTLIGHT

ANTHONY BONJA CREATIVE TIMEPIECES

For more than 40 years now, Anthony Bonja has continued to astonish the world with breathtaking new designs of watches and unique pieces of jewellery. Since 1974, more than 150 watches have been created to amaze the eyes of the clientele and to embrace the distinctive world of luxury timepieces. When every single art creation is driven by passion and inspired by the power of time and professionalism, it always attracts collectors and amateurs from all over the world to appreciate the value of each item.

PRINCESS WATCH Based in Lebanon, Anthony Bonja embarked three years ago upon the creation of his new art invention in collaboration with the international jewellery expert Aaron Shum known for his “Coronet” line. The result of this partnership was crowned a “Princess” to stand proudly among all watches, set with an 18 karat white gold coronet that holds seven diamonds rotating in harmony with time under the crown of luxury. A not-tobe-missed watch that shines with elegance to match the strong character of a real princess.

• Model: TC756 Coronet |Movement: Ronda 1032 | Nr of diamonds: 258 (including 7 pcs coronet diamond on dial) Case: SS 316L/18k gold bezel | Also available in stainless steel

SPACE WATCH The new ‘Space’ watch blends unique proficiency and high end composition in the mastery of a major watch production for 2017. Benefiting from decades of expertise, feminine and masculine ‘Space’ watches come together to present complexity and elegance along with the finest luxury and class. While the masculine watch beats with your heart and takes you to the horizon, the feminine version makes a women curl in circles of bright diamonds.

• Automatic: SA.3 | Model: World time | Movement: Sellita SW200 |Nr of diamonds: 164 Case: SS 316L/18K gold | Also available in stainless steel • Model: World time Space Quartz SQ.3 | Movement: Ronda 7004.N | Nr of diamonds: 219 Case: SS 316L/18K gold | Also available in stainless steel

www.bonja.com

Basel 2017: Booth A32 Hall 1.1

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PRINCESS

SPACE

HIGHLIGHTS In this section, Europa Star provides brands with the possibility to express themselves. The concept is straightforward: one watch per brand, on one or two pages, and deliver your arguments to convince the markets! So, do you accept the challenge?

This is a visually efficient way for retailers, distributors, collectors or simply watch lovers to catch up with the latest offerings on the market.

We give a price indication of the watch presented, using the following categories: Less than 500 dollars $$ 500 – 1,000 dollars $$$ 1,000 – 3,000 dollars $$$$ 3,000 – 10,000 dollars $$$$$ 10,000 – 50,000 dollars $$$$$$ 50,000 – 100,000 dollars $$$$$$$ More than 100,000 dollars $

HIGHLIGHT Sponsored content

MB&F HM7 AQUAPOD – RED GOLD LIMITED EDITION After pushing the limits of horological exploration by blasting into space, launching into the sky and powering down the road, MB&F plunges into the water... The jellyfish-inspired design is surrounded by a “floating” rotating bezel and regulated by a 60-second flying tourbillon. $$$$$$$ | www.mbandf.com 53

HIGHLIGHT

A dance of the cosmos! The majestic high-speed Tri-Axial tourbillon by Girard-Perregaux welcomes two captivating, delicately miniature-painted complications: a rotating globe with day/night indication and a precision moon-phase display. The Planetarium watches bear the technical and aesthetic signature of the Swiss Manufacture. A complex structure revealed by an iconic and luminous design. $$$$$$$ | www.girard-perregaux.com 54

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GIRARD-PERREGAUX TRI-AXIAL PLANETARIUM

HIGHLIGHT Sponsored content

BVLGARI LVCEA MOON PHASES Light meets the moon. The Roman jeweller loves playing with contrasts and is ramping up the seduction of its glowing LVCEA by enriching it with moon-phase indications. Two-tone gold and steel, 36mm, automatic Caliber BVL 210, pink gold bezel, cabochon-cut stone with a diamond on the pink gold crown; white mother-of-pearl dial with diamond indexes; shiny purple alligator strap with a pink gold ardillon buckle. $$$$$ | www.bulgari.com 55

HIGHLIGHT

HERMÈS

SLIM D’HERMÈS QUANTIÈME PERPETUEL PLATINE A CONFLUENCE OF WATCHMAKING SKILLS Slender, pared-down, minimalist: the Slim d’Hermès welcomes a new entirely in-house-crafted model in platinum.

The remarkably technical ultra-thin Manufacture H1950 movement is equipped with one of the most demanding horological complications: a perpetual calendar. This authentic ‘mechanical memory’ ensures that the date of months with 30 and 31 days is automatically adjusted, while taking account of leap years by indicating February 29th every four years without any need for corrections. Adorned with a ‘sprinkling of Hs’ and meticulously hand-bevelled, the movement also powers day/night, dualtime and moon-phase indications within a composition measuring just 4 mm thick. This impressive demonstration of horological expertise may be admired through the sapphire crystal case-back.

www.hermes.com

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With its new Slim Quantième Perpétuel Platine, Hermès unites the full spectrum of watchmaking skills. Its gleaming platinum exterior provides a perfect setting for mechanical complications to rub shoulders with the skill of case and dial-making artisans, while an Abyss blue alligator strap reflecting impeccable leather craftsmanship sets the perfect finishing touch.

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The apparent simplicity of the all-blue-clad Slim d’Hermès Quantième Perpétuel Platine immediately draws the gaze. The numerals with their font specially designed for the Slim collection stand out with light and airy grace. While the date, month, dual-time and leap-year indications are displayed on various counters, a mother-of-pearl moon phase graces an aventurine sky backdrop at 3 o’clock. The elegant and graphic dial melts seamlessly into the surrounding precious platinum case.

HIGHLIGHT

URBAN JÜRGENSEN 1140 PT L BLUE

UNCOMPROMISING CRAFTSMANSHIP In accordance with its extraordinary history and high level of watchmaking, Urban Jürgensen presents its new limited edition of 30 pieces, the 1140 PT L Blue.

At first glance, the 1140 PT L Blue exhibits a simplicity that conceals the complexity of its creation. The construction method and craftsmanship used are deliberately intended to appeal to connoisseurs of fine watchmaking. While some design elements and finishing are clear to see, others are virtually hidden from view. This new model complements the Jürgensen 1745 collection as a blend of the brand’s most precious examples of craftsmanship, Urban Jürgensen Hands, guilloché and white gold appliques with an in-house P4 movement.

The 40mm classical case design used in this reference has a round form, teardrop-shaped lugs and stepped bezel combined with exquisitely finished dial and hands.

Urban Jürgensen hands are hand-made. They comprise a significant number of components that are individually honed, assembled and finished.

This naturally implies numerous hours of highly skilled workmanship and is a key feature of Urban Jürgensen timepieces.

Urban Jürgensen is considered a master of the art of the hand finished guilloché dial. In the new 1140 PT L Blue, this can be appreciated in the great attention to detail in the dial layout and the selection of grain d’orge and guilloché damier patterns. Each dial requires up to 700 operations and takes 2 full days of manual work to complete on a guilloché lathe.

$$$$$

www.urbanjurgensen.com

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The White Gold Urban Jürgensen Arabic numeral appliques are inspired by the hand-painted enamel and grand feu dials of our historic pocket watches – an inspiration that imparts almost impossible challenges in crafting them in solid gold.

HIGHLIGHT

FABERGÉ

VISIONNAIRE CHRONOGRAPH THE FUTURISTIC ANSWER TO A CENTURY-OLD QUEST The legendary artist-jeweller continues a 100-year-old chapter from its archives with a new automatic movement that changes everything we know about chronographs.

www.faberge.com

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The Fabergé Visionnaire Chronograph brings timekeeping legibility and precision to unprecedented levels, thanks to a groundbreaking new movement by Agenhor. The modular construction of the cal.

6361 also means that its production and servicing processes have been streamlined and decluttered. This ensures high performance as well as mechanical resilience, qualities that play a key role in Fabergé’s plan to obtain the prestigious Geneva Seal certification.

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Among the most famous of Fabergé creations are the Imperial Easter Eggs, an annual tradition started in 1885 by Tsar Alexander III. Each of these Eggs were exuberant showcases of traditional decorative techniques and their heart contained a surprise. The last Egg designed by Fabergé was the Constellation Egg, which featured an engraving of the constellation of Leo. However, it was never completed because the February Revolution broke out in 1917.

One century later exactly, the Fabergé Visionnaire Chronograph pays homage to the unfinished egg. Indeed, the constellations of the universe allow us not only to look back in history, but also to measure the time that has elapsed between cosmic events. The watch is powered by the automatic cal. 6361, a revolutionary new movement developed in Geneva

by Agenhor that features unprecedented clarity, precision and efficiency.

Almost without exception, the one issue that afflicts the chronograph is the relative difficulty in reading it. The unique construction of the cal.

6361 - an annular base movement with a chronograph module set in the central hollow - solves this issue. Time-telling and chronograph indications are intuitively segregated. Thanks to an integrated camshaft, chronograph indications are shown co-axially on large central counters in a familiar and comfortable configuration.

One further key feature of the cal. 6361 that elevates the user-friendliness of the chronograph is its instant-advance indications, achieved by a system of snail cams and levers. Additionally, the cal. 6361 has a central camshaft that controls both the advance of indications and the zero reset of the chronograph.

HIGHLIGHT

Inspired by the celestial navigation of history’s great skippers, this automatic chronograph with moon phase and full calendar features a unique day-and-night indication showing a miniature view of a star-spangled night sky opposed by a radiant depiction of the golden sun. $$$$ | www.delma.ch 62

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DELMA KLONDIKE MOONPHASE

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CORUM GOLDEN BRIDGE RECTANGLE Bridging refinement and watchmaking know-how: following the design codes of Art Deco, the Golden Bridge Rectangle shows a timeless and discreet elegance, yet focuses on the functionality of its brilliant movement. Perfectly proportioned, the Golden Bridge fits beautifully on the wrist. $$$$$ | www.corum.ch 63

HIGHLIGHT

The Autavia, created in 1962, was the first collection christened by Jack Heuer. The name “Autavia” is a portmanteau, combining the notions of AUTomobile and AVIAtion. The 2017 model, which reflects the motor racing spirit of this era and the world of timekeeping, with its simple yet effective lines, is the result of the Autavia Cup, organised last year by TAG Heuer. Collectors and fans were asked to choose their favourite model from a shortlist of 16 Autavia watches which had been released in the past, and to vote online. In total, TAG Heuer recorded over 50,000 votes, with the winning watch being the Autavia “Rindt”, produced in 1963. The 2017 reinterpretation of this model is inspired greatly by this piece. $$$$ | www.tagheuer.com 64

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TAG HEUER AUTAVIA HEUER-02 CHRONO 42 MM

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ZENITH PILOT EXTRA SPECIAL CHRONOGRAPH An imposing bronze case, a wide ratcheted easily adjustable crown, oversized luminescent numerals and a high-beat El Primero mechanism: the new “Pilot” by Zenith proudly flaunts the DNA of a line of airborne conquerors. In 2017, this famous aviator’s watch with its distinctive design expresses its trailblazing style in chronograph mode. With its sandblasted black dial and its khaki green oily nubuck leather strap, it showcases a neo-retro look fuelled by an adventurous spirit. Exactly like that of the aviation pioneers that the Manufacture accompanied right from the early days of flight. $$$$ | www.zenith-watches.com 65

HIGHLIGHT

TRASER SWISS H3

FUNCTIONAL WATCHES FOR SMART PEOPLE The P67 Officer Pro Gun Metal “Lime” spectacularly reaffirms the brand’s expertise in the field of self-activated illumination technology and purpose-built functional watches.

Beyond fashion and passing trends, Traser Swiss H3 watches are distinguished by their unique ability to assure constant visibility of the time display at a single glance, even in complete darkness and under poor visibility conditions, thanks to the in-house manufactured Trigalight® selfactivated illumination technology.

Adding the Officer Pro Gun Metal Lime to its collection, Traser Swiss H3 continues this tradition in a spectacular way. This watch’s tidily arranged dial provides the most reliably legible time display under all lighting conditions.

By combining the 24/7 permanent glow of Trigalight® self-activated illumination with the progressively dimming luminosity of Superluminova, the dial begins an amazing metamorphosis as soon as ambient lighting fades.

Entirely coated with lime-colored Superluminova, the watch face offers the perfect stage for 17 Trigalight® self-activated illumination tubes inserted in the hour markers, the hands, and beneath the logo.

Available in five different versions, the P67 Officer Pro Gun Metal is destined to accompany its wearer through the most demanding missions, roughand-tumble sports such as night sailing, camping, fishing, hunting and spontaneous discoveries, adventures – and well-planned journeys that suddenly take unpredictable twists.

$

The metamorphosis of the P67 Officer Pro Gun Metal “Lime”

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HIGHLIGHT

Not only does the Meister Driver Automatic display the time, it also evokes an entire era: the early years of modern motoring, a time of great technological pioneers. Its appearance is inspired by the design of historically significant classic cars and their dashboard instruments. Like no other watch, the Meister Driver combines the distinctive charm of these automobiles with our passion for mechanical timepieces. $$$ | www.junghans.de 68

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JUNGHANS MEISTER DRIVER AUTOMATIC

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NOMOS CLUB 38 CAMPUS NACHT NOMOS Glashütte is celebrating academic success with the Campus series – mechanical timepieces for wherever life leads next. This eye-catching model is Club 38 Campus Nacht; its hour numerals and indexes shine blue at night, thanks to superluminova. $$$ | www.nomos-glashuette.com 69

HIGHLIGHT

TITONI OF SWITZERLAND MASTER SERIES

TRUE QUALITY TIME SINCE 1919 An essential element of Switzerland’s culture is precision. Titoni truly takes Swiss values to heart: its timepieces have been handcrafted in the in-house watchmaking atelier in Grenchen since 1919. The independent family-owned company is an internationally renowned watch brand amongst connoisseurs as well as ordinary watch lovers.

Titoni is proud to present the next in line of its premium Master Series, a true expression of fine watchmaking created to delight those who appreciate exquisite design combined with great horological precision.

This high-quality classic watch boasts a new design as well as a large diameter of 41.00 mm. The attractive timepiece is equipped with a power reserve indicator. The big date window adds another remarkable complication to this elegant watch. The striking representation of the date, with the digits displayed on two separate discs, adds a classic touch while ensuring that the date can be read more easily. Due to its fine bezel and enhanced diameter, the dial reveals a refined look. Available in silver and anthracite, it has a Sunray Brush that adds a discreet shine and an intriguing sparkle in the light.

www.titoni.ch

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Artfully fitted diamond-cut indexes and hands give this timepiece a particularly stylish appearance and their bright luminous filling allows the time to be easily read in the dark. The watch is available with an elegant stainless steel bracelet or a sleek leather strap in brown or black. Each Master Series timepiece bears the COSC seal and will be handed over together with a personal COSC certificate in an elegant wooden watch box.

$$$

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True quality time is what matters most to Titoni. It is an everyday challenge that the company not only sets itself through rigorous quality controls, but also upholds as a promise to its clients: the traditional Swiss company dedicates itself to producing precise quality timepieces for those who appreciate similar values.

HIGHLIGHT

JEAN MARCEL

MYTHOS REF. 564.280.32

VERTICAL LIMIT® DESIGN. THE MYTH IS ALIVE The Mythos Ref. 564.280.32 by Jean Marcel – a cutting-edge self-winding chronograph that perfectly combines proven technical features with state-of-the-art design.

The new Ref. 564.280.32 self-winding chronograph by Jean Marcel, a familyrun business from Baden-Baden (located near the famous watchmaking town of Pforzheim), convincingly combines the distinctive Mythos style with traditional Swiss watchmaking.

Today, it’s not only the technical features but also a noble appearance that makes a watch brand stand out. In that regard, the Jean Marcel chronograph is the ultimate combination of elegance and practicality. The high-quality case beautifully accentuates the unique dial, its highlight being the registered Vertical Limit® design with its telemeter scale at the centre of the dial to be read with the red counter part of the stop second. This is just one of the many innovative designs for which this watchmaking firm is known worldwide. Other features include the famous Mythos bezel and the precious carbon inlays in the case sides, the crown, and the timer buttons.

The watch implements the JM A14 top-level movement, an upgraded variant of the Valjoux 7750, with a Glucydur balance, blued screws and premium polishing.

$$$

www.jeanmarcel.com

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Like all Jean Marcel watches, Mythos chronographs are manufactured at Bienne, a center of traditional Swiss watchmaking. The outcome of the manufacturing process carried out with great attention to detail is a product of finest quality: water resistant up to 10 ATM, with a scratchproof sapphire glass carrying the JM logo (which becomes visible only when breathed upon), and a sapphire-glass case back fixed with four screws.

The Milanese bracelet features an easy-to-use JM butterfly clasp. The overall case diameter is an impressive 44 mm, at a case height of 14 mm. At purchase, buyers also receive a document certifying the perfect adjustment and accuracy of this carefully crafted watch.

HIGHLIGHT

EMILE CHOURIET ENTRECHATS AND MECHANISMS

The Emile Chouriet workshops are proud to lend their support to the Prix de Lausanne, an artistic event that the firm feels close to in terms of technical mastery and the lyrical beauty involved.

Leotards, tutus and ballet shoes, on the one hand, magnifying glasses, tweezers and watchcase openers on the other: although the tools and forms of creative expression differ, the search for outstanding performance and technical mastery are two points that watchmaking and dance have in common. What’s more, like the Prix de Lausanne, which Emile Chouriet is sponsoring this year, the transmission of knowledge is fundamental to ensuring that the two artistic worlds endure over time.

For the brand based in Meyrin, Switzerland, linking up with the world of ballet goes far beyond a simple partnership or an association of logos. The aim is to help train young dancers, to give them the tools they need and to see them progress, improve their technique and self-confidence, like Emile Chouriet does in its workshops with young watchmakers who come to learn the profession.

Like a ballerina gliding through the air with her flower-shaped, immaculate tulle tutu, the Fair Lady model casts faceted petals and the rainbow effect of a white lotus across the watch face. Two blue openwork leafshaped hands and a fine second hand dance above twelve little diamonds to mark the passing of time. The small 28mm case is paved with precious stones and contains the EC5316 calibre, a self-winding mechanism.

$$$

www.emilechouriet.ch

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A radiant face extending to a strap rippling like the supple body of a dancer, the Alchimie model is available in a trio of festive, but soft colours: silver, champagne and plum. The hours, minutes and seconds displayed in the centre are driven by the EC5318 calibre, the first automatic movement made by Emile Chouriet.

HIGHLIGHT

A world first! For the re-issue of The Grands Fonds, ZRC has developed and patented a functional solution: The ECS™. The “Easy Clean System” is a unique system for cleaning the inside of the bezel by circulating fresh water that dilutes and evacuates the sea salt. A technical solution to the problem of all divers: the salt crystallises in the gaps between the bezel and case, thus impeding its rotation. $$$ | www.zrcworld.com 76

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ZRC GRANDS FONDS 300

Horlogerie Française

After two years of development, a new player joins the game.

A game involving transparency, passion for traditional ...know-how and a bold, contemporary style.

Could all these ingredients be concentrated into a single brand?

Lornet , French Spirit of Haute - Horlogerie Lornet

17F rue Alain Savary 25 000 Besançon France

Discover how at www.lornet-watches.com

Boutique Emile Léon 8 rue Royale 75 008 Paris France

HIGHLIGHT

WOLF 1834

THE NEXT GENERATION A European icon since 1834, Wolf continues to prove itself as the world’s leading brand in luxury leather-goods specialising in watch winders, watch boxes, jewellery cases, and lifestyle accessories. Family led for five generations, Wolf’s evolving collections showcase their undying pursuit of perfection and continuity. The brand continuously fine-tunes its watch winder technology and is ready to share its latest advances.

Over its 183 years Wolf has seen many rush with unseemly haste to come up with a solution. For the brand, the important thing is to ensure that careful entry into any new design or device is done with thoughtful precision. An app controlled watch winder is a great innovation so long as it continues to be about safe-keeping fine automatics. Unfortunately those that have popped up so far have an emphasis on their app and not the watch.

Wolf’s approach is entirely different: they have always engineered their watch winders as instruments that keep fine automatics wound to perfection.

Since Englishman John Harwood’s successful award of a Swiss patent for an automatic self-winding watch in 1923, Wolf has always believed it is about the watch, 100%. At Baselworld they will be launching the Wolf 1.2 app that allows ultimate controllability of a new generation of cabinet winders called “1834”, the year the company was born.

1834 – The collection offers a choice of 12, 24, and 32 winder module cabinets with accessory drawers for mechanical watches, pens, straps, bracelet adjusting tool-kit and humidor. Piano finished wood with chrome accents, locking glass front.

$$$

www.wolf1834.co.uk

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The evolution of the Wolf app was clear and simple: design a user friendly, easy to understand interface that allows control over a limitless number of winder modules, but do so in a caring and thoughtful manner. No need for functions that do not 100% affect the watch as that is all Wolf is concerned with.

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SPOTLIGHT

EMOTION FRANCE

Nearly 40 French watch, clock and jewellery brands will exhibit at Baselworld this year.

Come and visit us and discover the latest French creations!

Garaude 3.1 A09

Masviel

(Marcel Robbez Masson)

2.1 A61

Piat 3.1 D01

Korloff 1.1 A57

Les Georgettes (GL Altesse)

2.1 L02

Murat

Altesse

Alain Boite 3.1 D25

(GL Altesse)

Lydia Courteille 2.2 C36

Marcel Robbez Masson 2.1 A61

Oressence

2.1 L02

PacĂ´ma

Messika 1.1 D59

(Marcel Robbez Masson)

(Marcel Robbez Masson)

(Schmittgall)

2.1 A61

2.1 A61

2.1 M40

Porchet 2.1 L58

Princ Marc 3.1 A05

Schmittgall 2.1 M40

Waskoll 2.1 G80

Berthet 1.2 W33

Christian Lacroix (Groupe TWC)

2.0 C75

Dodane 1857 1.2 W35

FOB Paris 1.2 W13

GO, Girl Only (SMB)

1.2 E45 Manufacture Vuillemin 1.2 W05

Jean Paul Gaultier (Groupe TWC)

2.0 C75

Korloff 1.1 A57

Michel Herbelin 1.1 A59

Pierre Lannier 1.2 A27

Robur 2.0 F67

(Groupe TWC)

Xme 2.0 J05

Ted Lapidus 2.0 C75

Zadig & Voltaire (Red Luxury)

Lip

Manoush

(SMB)

(Red Luxury)

1.2 E45

2.0 A73

Rich Gone Broke (Red Luxury)

2.0 A73

Utinam 1.2 W39

Verlux 2.0 K47

William L. 1985 (G&L Watches)

2.2 C43

www.emotionfrance.com

2.0 A73

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SPOTLIGHT

TAN SA

WATCHMAKING ATELIERS Innovative approach to face Swissness regulations, customisable watches production programs and strict quality tests are the keys to escape from any crisis, according to TAN SA.

With a strong experience in watchmaking, TAN SA has gained during decades a widespread reputation as one of the leading private label producers and assemblers in Ticino, especially dealing with the realization and development of new models and collections for prestigious watch and fashion brands.

The expertise and deep know-how are palpable from the very first moment you step into the company offices. The fascinating contrast in the production site between the old-timey technicians’ savoir-faire and the most advanced production and control technologies that surrounds them, in a maniacally clean environment, gives you the feeling of being inside a tomorrow’s atelier.

All this, combined with flexible dimensions compared to competitors, enables TAN SA to stand out of the crowd giving its clients a service able to fulfil the most critical needs. Due to the currently difficult market situation, the company management decided to focus their efforts on three different points in order to stay strong:

INNOVATIVE APPROACH TO FACE NEW SWISSNESS REGULATIONS Swiss Made watches are well known as the ultimate timepieces you can find on the market. Their precious movements, quality and design have always been considered the best in the field and nowadays some models are even becoming true investments.

The brands and producers who want to put this label on their watches have to undergo stricter regulations from 2017, imposed in order to protect this Swiss heritage.

TAN SA management’s final goal is not the fulfilment of these new regulations themselves. This is just the means to produce higher quality watches compared to the past. The way to achieve this result without a strong increase in prices is to exploit the best every country can offer giving to each component the right value. Swiss movements and cases are of course considered the best ones.

However, different countries have specialised in other sectors, giving the chance to buy outstanding components at reasonable prices compared to Switzerland. Italian straps, Japanese ceramic, Russian stones are among the best you can find worldwide and permit to save money that can be reinvested in movements, cases, glasses and all the items coming from Switzerland because of their higher quality.

This approach allows to fulfil the new regulations, deliver to the client high-end timepieces and keep the prices down thanks to a reallocation of the budget.

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OBJEST AUTOMATIC CUSTOMISABLE WATCH A product of the Tailor-Made Program available from this year at TAN SA

ABILITY TO OFFER CUSTOMISABLE WATCHES PRODUCTION As a new service, TAN SA has started giving its clients the possibility to choose a tailor-made program based on customisable watch projects. In a society where exclusivity and uniqueness are becoming more and more attractive among the watch enthusiasts, the company decided to reserve part of its workload to take care of the developing and production of watches with unique specifications, directly demanded by the final costumer and ready to be shipped in few days.

COMPULSORY QUALITY CONTROLS AND TESTS Whether you just need the assembly service, or you put the company in charge of the whole project development, the production process delivers to the client high quality products thanks to the strict standard procedures introduced during the years.

It is always possible for the client to ask for TAN SA - COMPULSORY PRODUCTION CONTROL PROCEDURES specific controls and tests. However, there are

• On incoming components a number of compulsory procedures that guarQuality Control • On 100% of the watch heads before casing antee top quality products and allowed TAN SA

• On 100% of the complete watches before packaging to gain a reputation as one of the leading and Water Resistance test • On 100% of the watches (at least one test) most reliable watch manufacturers in its region.

Rate Accuracy control • On 100% of mechanical watches (at least with At least one water resistance test is made on

parameters provided by movement producers) 100% of timepieces assembled, while mechanical movement rate accuracy has to be tested (at least) with parameters provided by movement producers. Quality Control is made on components before production, on 100% of watch heads after casing and on 100% of complete watches before packaging. This ensures high quality levels impossible to be reached if some of these procedures are missing.

These no compromises concerning quality, strong flexibility in adapting to clients’ needs with new tailormade programs and innovative approach in the development of new projects, always managing to achieve the best possible result, make TAN SA one of the landmarks in the watchmaking industry.

Piazza Boffalora, 4 | 6830 Chiasso, Switzerland T: +41 91 6835247 I F: +41 91 6830332 | info@tanchiasso.ch | www.tanchiasso.ch

www.abraitalia.it

BRACELETS Tél.: +39 0444 343434 • www.promotionbracelets.eu • promotion@promotion-spa.com

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EXPOSANTS

PLUS DE

20’000 VISITEURS

20-23 JUIN 2017 PALEXPO GENÈVE

W W W. E P H J. C H

Industry

AUTOMATION TOWARDS HUMAN OBSOLESCENCE?

BY PIERRE-YVES SCHMID, EUROTEC

T

he Encyclopédia Universalis defines automation as the act of rendering automatic operations which previously required human intervention. So we can see a certain nobility in this primary objective: the principle was aimed first and foremost at reducing the repetitiveness, physical effort and danger of the tasks entrusted to workers.

Over time, these values gradually gave way to more mercantile considerations, as industry rapidly realised what advantages it could gain from large-scale automation: shorter production times, lower labour needs, higher productivity and profits.

Great advances – and huge social impact And this is where the whole paradox of automation lies: on the one hand, it has unquestionably improved the lives of millions of workers, while at the same time contributing to a massive loss of jobs. This contradictory effect grew steadily during the various technological revolutions of the past fifty years. The advent of robots, made possible thanks to information technology and sensors, has further exacerbated the phenomenon.

This new, often unequal division of labour between man and machine presents huge issues for society; to such an extent that certain governments of industrialised countries are now considering taxing robots to fund training and conversion programmes for the employees they have shunted to the exit.

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700 professions set to be fully automated soon?

Because make no mistake about it, automation is everywhere today. We’re talking here about industry, of course, but also increasingly about home automation (a mixture of automation, information technology, electronics and telecommunications to remotely control home systems), the rising automation of vehicles and more recently, even the automation of administrative, book-keeping and management occupations. In fact, scientists at Oxford University have identified some 700 professions which could, in the long term, be exercised by machines equipped with artificial intelligence.

In the short term therefore, one of mankind’s major responsibilities will lie in setting itself limits to prevent one of the greatest contributions to workers’ well-being turning into a grave-digger for human activity.

For watchmaking, the climax of an industrial odyssey The automation of certain operations is closely linked to the strong competition that Swiss watchmakers faced from American manufacturers in the late nineteenth century.

Thanks to public contracts (the railways, army, etc.), the volumes produced in the United States left little room in the marketplace for Swiss watches. The sudden slump in exports to America brought home to the Swiss watchmaking industry the extent to which it lacked production capacity.

In subsequent developments, the two World Wars forced the United States to concentrate their manufacturing industry on arms: watchmaking, in particular, was set aside.

Switzerland took advantage of this period to do some catching up where automated production was concerned and abandoned – sometimes reluctantly – the rather widespread cottage-industry system in favour of factory work.

Subcontractors to the watchmaking sector – the major players in automation Today, automation in the watchmaking industry has found a choice partner for ensuring even greater precision for their operations: information technology. Take the example of Lécureux of Bienne: a well-known name in the watchmaking world for the past 55 years thanks to its electric screwdrivers, it has developed control units which automatically recognise the screwdriver and apply the corresponding settings.

This innovation has substantially optimised precision and cycle times. All screwing and measuring parameters can be set to suit a given application and stored via the control unit or the built-in PC interface.

Thanks to the fact that all the workstations are networked and all the screwdrivers virtually integrated on the server, remote programming is possible. Statistics, saved settings and results can be output to an SD card in response to the growing demand for traceability throughout all operations.

Another example is the Smart Assembly Machine (SAM): thanks to its 6-axle robot, this new machine proves especially fast and flexible when it comes to operations such as assembling small watch parts, placing batteries in quartz movements, racking, palletising, handling, quality control and connecting and disconnecting measuring systems.

Fantastic progress! But progress which, as ever, poses the million-dollar question: in the digitised, automated assembly lines of tomorrow, what role will remain for humans? It is this interaction which is shaping, and will increasingly shape, economic – and political – agendas.

ENLIGHTENMENT

Automation from antiquity on A number of important milestones marked the history of automation well before the industrial age. In the first century AD, the mathematician Heron of Alexandria built numerous automated systems using hydraulic energy. In the seventeenth century, Wilhelm Schickard, a German scientist, developed the first calculator, followed some twenty years later by Blaise Pascal. The first industrial application of automation came in 1793 when the French mechanical engineer, Joseph-Marie Jacquard, automated a weaving loom by using perforated cards to sequence the operations. From there, industrial automation spread. Sustained in the early twentieth century by the introduction of new work methods, such as Taylorism, it culminated in a revolution in the approach to production – one emblematic example being the assembly lines of the Ford factories.

An automatic distribution system by Heron of Alexandria. The machine he invented worked with coins and distributed water.

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Archives

THE FORGOTTEN

PROLETARIAN WATCH

BY PIERRE MAILLARD

S

ome fifty years ago, in 1967, Europa Star (issue 3/1967) published an article in collaboration with the Roskopf Association celebrating the hundredth anniversary of an invention by Georg Friedrich Roskopf.

Born in the Black Forest in Germany in 1813, where there was a thriving clockmaking industry, G.F. Roskopf became a watchmaker himself and moved to La Chaux-deFonds before settling in Geneva.

It was here that he had the idea of creating ‘a watch for the working classes, a watch that anyone could afford’.

This noble idea took more than ten years to bring to life, but in 1867 he finally launched what he called ‘the proletarian watch’, which was sold for 20 CHF. To achieve his goal, he tried to simplify the movement as far as possible, by reducing the number of necessary components from 160 to 57. He created a pinpallet escapement, removed the centre-wheel and, initially, the hand-setting mechanism (which could be done with the finger), opted for a keyless winding mechanism, used nonprecious metals and designed the watch to be easy to manufacture in the factory.

It was an immediate success, but Swiss watchmaking competitors took it badly. They all refused to work with him, and accused him of ‘destroying’ their artisanal craft. Roskopf was forced to call on workers from the French Jura and from the canton of Bern. Presented at the Universal Exhibition in Paris, the “Prolétaire” caught the attention of Louis Breguet, who praised it highly. The international markets then began to open up. While Switzerland totally rejected the watch, France, Belgium, the Indies, Brazil and Egypt, among others, were

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all quick to embrace it. From 1868 onwards, Roskopf had to expand and invest to meet the demand. As he hadn’t registered any patents, his work was also quickly copied, with varying degrees of success. Poorly-made ‘fake’ Roskopfs damaged his reputation. Eventually, he registered a patent in the United States and handed over the company to his friend Charles Léon Schmidt and the Will brothers.

His successors launched a largescale industrialisation process and built two large ‘Roskopf Patent’ factories in La Chaux-deFonds. In the twentieth century, the Roskopf brand flourished, inundating the British Empire and then the United States, becoming the most-exported Swiss watch with up to 35 million pieces exported per year at the start of the 70s, before the arrival of quartz dealt a fatal blow.

Killed by quartz In 1967, quartz had not yet hit the scene. The Roskopf Association included 67 brands and watchmakers, none of which are still in operation today, and seven ébauche manufactures, of which only Ronda survives, having made the switch to quartz before resuming production of mechanical watches last year. In 1967, the Roskopf Association reiterated its message in Europa Star: ‘Those who benefit from Roskopf watches include young people who still cannot afford to buy a more prestigious watch, those living in developing countries who are realising the importance of knowing the exact time, and the poorer classes in Western society’. Just a few years later, this dream was definitively cast aside as the Swatch became the new ‘Prolétaire’.

We assemble every single watch twice.

Because perfection takes time.

For us, perfection is a matter of principle. This is why, on principle, we

parts are cleaned and decorated by hand with finishing and polishing

craft all timepieces with the same care and assemble each watch twice.

techniques, followed by the final assembly procedure. This assures

Thus, after the LANGE 1 MOON PHASE has been assembled for the first

long-term functional integrity and the immaculacy of all artisanal fin-

time and precisely adjusted, it is taken apart again. The movement

ishes. Even if this takes a little more time. www.alange-soehne.com

Beyer Chronometrie AG Bahnhofstrasse 31, 8001 Zurich · Bucherer Höhenweg 39 & 43, 3800 Interlaken Embassy Grendelstrasse 2, 6004 Lucerne · Kapellplatz 12, 6004 Lucerne · La Serlas Palace Arcade, 7500 St. Moritz Les Ambassadeurs Bahnhofstrasse 64, 8001 Zurich · 62, rue du Rhône, 1204 Genève · Mezger Uhren und Juwelen AG Freie Strasse 101, 4051 Basel