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IN THE FULLNESS OF TIME 10

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18K 18K BEIGE BEIGE GOLD. GOLD. CHANEL CHANEL Manufacture Manufacture movement movement with with integrated integrated complications. complications. 18K 18K BEIGE BEIGE GOLD. GOLD. CHANEL CHANEL Manufacture Manufacture movement movement with with integrated integrated complications. complications. Instant Instant jumping jumping hour, hour, 240째 240째 retrograde retrograde minute, minute, small small second. second. 3-day 3-day power power reserve. reserve. Instant Instant jumping jumping hour, hour, 240째 240째 retrograde retrograde minute, minute, small small second. second. 3-day 3-day power power reserve. reserve.

EDITORIAL

LEARNING TO by Pierre Maillard, Editor-in-chief

hen the printing press began to take off in the 1450s, booksellers, who made a living from selling manuscripts – and quite a handsome living at that – were outraged. Their business would be destroyed! Others were worried about the dangerous new possibilities for subversive ideas to be disseminated on a grand scale. The political establishment immediately sought to control the presses, including by ordering that a copy of every book be deposited in the royal library. The Roman Catholic Church hurriedly drew up its Index of Forbidden Books. And on the back of all this, clandestine workshops and counterfeiters flourished. Any resemblance to the crisis currently being experienced by the press is purely coincidental. Or is it? Is history cursed to repeat itself eternally, in different guises, under the impulse of similar social and economic mechanisms? Today, print is nearing the end of a glorious cycle, during which it had a very big hand in changing the face of the world, and is now seeing all its fundamental assumptions called into question. Writing remains, but it is in the process of shuffling off its mortal coil of paper and subliming into bits and bytes displayed on thousands upon thousands of portable screens. For us at Europa Star*, who have devoted ourselves entirely to the watchmaking industry for almost 90 years, the paradigm shift is twofold. The problems facing print

6 | EDITORIAL | europa star

media are curiously similar to those now affecting the watch industry. I’ll paraphrase what I just said about print: “Today, watchmaking is nearing the end of a glorious cycle, during which it had a very big hand in changing the face of the world, and is now seeing all its fundamental assumptions called into question. Telling time remains, but it is in the process of shuffling off its mortal coil – the watch – and subliming into bits and bytes displayed on thousands upon thousands of portable screens.” Like the booksellers of the 1450s, who were thrown into disarray by the arrival of the printing press, watch retailers today are thrown into disarray by the evaporation of their bricks-and-mortar business. The political establishment, which went into a tailspin over the dissemination of dangerous ideas, is today fretting about corruption and, as in China, inspecting every wrist in search of “subversive” watches (subversively priced, that is). The fact remains that bookshops still exist today, and they don’t look likely to vanish any time soon. Books won’t die, because humans are material beings with a sense of touch and smell, with feelings and emotions, who would never be satisfied with a world composed entirely of bits and bytes, the ephemeral and immaterial. But books will change. Watchmakers are hoping that, in the best case, watches will share the same fate as books. The watch is not threat-

ened with extinction. It will change, that is certain, and it will probably become more scarce; but with scarcity comes greater weight, greater value. But if it is to take this route, the watch industry must embrace the inevitable changes, understand where the changes must be made, and manage all this intelligently. We don’t claim to be able to teach watchmakers anything about their business. But we, as “printers”, confronted with a paradigm shift in the press, will make the most of our 90 years as an independent voice to explore new avenues, create new partnerships, build new bridges and examine new possibilities, both material and virtual. We trust you will join us in our new adventure, that you will consider our adventure your own, and that you will agree with the Roman philosopher Seneca when he said: “Life is not about waiting for the storm to pass, it’s about learning to dance in the rain.” We feel this makes a very apt motto in the current climate. Dear watchmakers, dear readers, dear friends: come and join us on 18 January 2017. A new chapter is about to be written. For us, for you, and for watchmaking. p * The publishing house now known as Europa Star HBM SA was founded in 1927 by Hugo Buchser, grandfather of Philippe and Pierre Maillard and great-grandfather of Serge Maillard, who is now our company’s CEO.

CONTENTS

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QUANTIÈME PERPÉTUEL (PERPETUAL CALENDAR) WITH INSTANTANEOUS JUMP by F.P.Journe Perpetual calendar with instantaneous jump. Unidirectional automatic winding. Simultaneous correction of the date and day in one direction, rotation of the day only in the other direction in position 2 of the winding stem. Discreet and secure corrector in the lug of the watchcase for correction of the month and leap year. Central hours and minutes / indication of leap year with centred small hand, 1, 2, 3, in black; L for the leap year in red / day and month at 12 o’clock in 2 apertures / large date at 6 o’clock in double aperture / power reserve at 9 o’clock, power reserve 160 hours+/12 hours. Automatic Calibre FPJ 1300-3 in 18K rose Gold (4N). Off-centre 22K Gold guilloché winding rotor. Platinum or 18K red Gold. Diameter 40 or 42 mm. Height 11.00 mm

MONTRES JOURNE SA 17, rue l’Arquebuse 1204 Genève Switzerland Tel.: +41 (0)22 322 09 09 Fax: +41 (0)22 322 09 19 www.fpjourne.com

EDITORIAL Learning to dance in the rain

SPECIAL Europa Star’s 90th Anniversary and some birthday surprises

COVER STORY F.P. Journe – Time proves him right

MARKET FOCUS What’s going on in Hong Kong? U.S. watch market faces new challenges while catering to shifting demands Report on the Italian watch market

26 32 36

SMARTWATCHES Focus on smartwatches – From A to Z The smart perspective of Gerald Roden Review of smartwatches

16 20

SMARTWATCH

MARKET FOCUS

MOONS GALLERY Andreas Strehler, Patek Philippe, Jean-Baptiste Duboule, Parmigiani, Cartier, De Bethune, Arnold & Son, Christiaan van der Klaauw, Vacheron Constantin, Frédérique Constant, Urban Jürgensen, Jaeger-LeCoultre, Glashütte Original, Harry Winston, A. Lange & Söhne, Stepan Sarpaneva

54 56

BRANDS Louis Moinet – Lunar eclipse Bovet – When Swiss watchmakers and Italian designers meet

SPOTLIGHT Casio G-Shock Gulfmaster: making waves

62 64 66 68 70

STRAPS Watch straps shake off the shackles Chanel – When the strap sets off the watch Hermès – Saddler turned watchmaker All about watch straps Portraits of watch strap makers

INDUSTRY Upheavals in the discreet world of the private label

EDITORIAL & ADVERTISER’S INDEX

LAKIN@LARGE Connected watches: breaking records or is it wind?

MOONS

BRANDS

STRAPS

DIGITAL PARTNER

THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE

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The statements and opinions expressed in this publication are those of the authors and not necessarily Europa Star. Europa Star subscription service: CHF 75 in Europe, CHF 100 International | One year, 5 issues | Visit: europastar.com/subscribe | Enquiries: register@europastar.com

8 | CONTENTS | europa star

Escale Time Zone.

RY A S ER ES V NI RIS N P , an H A SUR as 1927 e T r a ye k in g th 90 AY h c n S t ’ 0 Ba nchi h a , R THD s 9 sm. t A t u i ide T IR wi i la s l w e S k a y d r n b rl at A EB br jour role etwo wo P e l r . n g ce ch to ay RO S O M ar wat erin zine sec tod U t E D S e a g oil pa ce in pion mag kin itted N m o a r r e i A l u tu , th vo hm mm da na ,E

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COVER STORY

TIME PROVES HIM RIGHT Over more than three decades, with unerring consistency, François-Paul Journe has constructed a neo-classical watchmaking approach whose watchwords are balance, harmony, rigour and legibility, the inevitable product of an exemplary coherence between the aesthetic exterior and the technical interior. Time has proven him right. by Pierre Maillard

rançois-Paul Journe’s horological journey officially began nearly 35 years ago, in 1991, at the booth of the Académie Horlogère des Créateurs Indépendants (AHCI) in Basel, where he exhibited his first tourbillon, made entirely by hand. Since then he has continued to “make and remake the same watch,” as he explained to Europa Star FIRST TOURBILLON several years later, in 2003, when he had be- POCKET WATCH 1983 come F.P. Journe, invenit et fecit. To lend cre- “Fascinated by the exceptional tourbillon watches that I had had the dence to his comment, he showed us a care- opportunity to admire in my uncle’s fully framed paper napkin, the same napkin workshop, but without the financial means to acquire any, I decided to on which, in 1994, he had mapped out his build my own tourbillon chronomfuture. “Look,” he said. “It’s all there. For the eter. Working with the little experiI had behind me, I devoted all benefit of my friends, I sketched out everything ence my free time to this project and it I wanted to achieve in watchmaking. Look took me five years to complete it. I carefully... here you have the Résonance, crafted every single component as well as the case in gold and in silver. here’s the Octa, there’s the Réserve de Marche, This watch completed in 1982 is still of the last two decades without so much as a and over there you can see the Calendrier. All part of my collection.” F.P. Journe wobble. Through hell and high water, Françoisthe ideas are there, all the future developPaul Journe has pursued his own horological and stylistic course with unswerving consistency, refusing to ments are sketched out...” This little anecdote is not as inconsequential as it might first be swayed by the ostentatious trends and attention-seeking appear; in fact, it goes a long way to explaining why F.P. exaggerations that have dominated the watchmaking scene. Journe has managed to weather the turbulence and excess That is the source of his company’s resilience.

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CHRONOMETRE A RESONANCE

TOURBILLON SOUVERAIN

HARMONY IN FORM AND FUNCTION His watchmaking style can be categorised uncontroversially as “neo-classical” because of its pursuit of a certain stylistic harmony, a formal and functional equilibrium in which, as in classical architecture, the outside is a faithful expression of the inside, just as the arrangement of the interior is dependent upon the exterior. In a watch industry that is constantly striving to make a splash (“faire le buzz”, as they say in French) François-Paul Journe has never strayed from the path he set out on all those years ago. His approach has always remained substantially the same. It invariably begins on paper, where Journe starts by designing... the dial. This is not because the watch’s appearance is dictated by abstract design concerns: it’s because of his quest for what he calls the “equilibrium” of the watch. As he explained in 2003, and continues to maintain today: “I know where I want to go, I know what functions I want to give the watch, I’ve laid out the technical principles I want to follow, but everything starts with the dial. I begin by sketching out the hour and minute hands, then the functions I want to add to the watch. Above all, I’m looking for an overall harmony in the dial, because in my view the dial should be the direct expression of what goes on inside the watch. The harmony I’m looking for is both stylistic and technical, from the outset. It’s not about making it look nice; it’s about finding out what the watch is trying to say, and how to say it. The inside and the

OCTA CALENDRIER

TOURBILLON DES 30 ANS

outside are not two separate aspects. A watch is a coherent whole, and it has just one way of expressing that, and that expression is the watch itself.” Some 25 models later (not counting variations in materials), this rigorous approach has not wavered in the slightest. The consistency of his aesthetic and technical approach provides the perfect explanation for the “timeless” quality of his watches, which are consummate modern classics. Journe himself describes his watches as “tools”, because the legibility of their different functions and displays, their user-friendliness, their wearability and their usefulness remain cardinal values of his watchmaking approach. u

THE OCTA QUANTIÈME PERPÉTUEL WITH INSTANTANEOUS JUMP One of his latest creations, now available in F.P. Journe boutiques in Geneva, Paris, Tokyo, New York, Los Angeles, Miami, Hong Kong, Beijing, Boca Raton, Beirut and soon Kyiv, is no exception to this rule. A glance at the dial tells you everything you need to know about the new perpetual calendar with instantaneous jump: perfect formal balance underpinning optimum legibility and functionality. The new perpetual calendar with instantaneous jump – the 9th member of the Octa collection – differs aesthetically from most other perpetual calendars on the market by its generous apertures for the day and month, and its double-window large date – a characteristic of F.P. Journe watches. The result is that the time and the intuitively placed calendar indications can be read off without any confusion and with the utmost simplicity. Ease of use is also one of the major features of this timepiece, and it’s a key point, given that adjusting perpetual calendars is often something of a brain-teaser and that, generally, midnight adjustments are strictly verboten. Here, all corrections are carried out via the three-position crown, except for the rapid month correction, accomplished with a small hidden corrector lever beneath the lug at 1 o’clock. The wearer can make adjustments whenever he likes, whatever the time of day. No specialised tools or correctors are required, which would in any case risk scratching or otherwise damaging the case. Months with 28, 29, 30 or 31 days are automatically taken into account, and leap years are shown in the centre of the dial under the fulcrum of the hour and minute hands (years 1, 2 and 3 are in black; the leap year is marked with a red L). In order to drive these functions and displays, which take just 16 thousandths of a second to complete their instantaneous jump (a feat that, it is worth noting, took François-Paul Journe several weeks, months even, of testing and minute adjustments, because the large windows require bigger discs, which are consequently heavier to move), the watchmaker used the exclusive Octa calibre 1300.3. This 18-karat rose gold automatic movement was designed from the outset to be able to easily incorporate all the current and future complications planned for the Octa collection. Its off-centre 22-karat red gold rotor has a self-blocking ball bearing sys-

tem that winds the movement in just one direction, ensuring that the slightest wrist movement is maximally exploited to power the slip-spring barrel, giving an effective power reserve of more than 120 hours. The power reserve is indicated by a hand at 9 o’clock on the dial. Available in platinum or 18 karat red gold, with a diameter of 40 or 42 mm, and a red or white gold dial fixed by a steel circle with silver chapter ring, the Quantième Perpétuel with instantaneous jumping replaces the annual calendar model, the Octa Calendrier, which is now a collector’s piece.

IMAGE AND LEGACY It is F.P. Journe’s custom to systematically cease production of old models once a new model is created. With manufacturing capacity limited to 900 watches per year, F.P. Journe has always made a point of limiting production of its successive series, and never producing any additional watches, even in the event of very high demand. In order to reinforce this principle, the Manufacture F.P. Journe recently launched a new service that offers its collectors the opportunity to buy rare watches that are no longer in production. Depending on the (very few) opportunities that arise, and after careful personal study by François-Paul Journe of the watches available at auction or by private sale, the Manufacture buys back its own pieces and refurbishes them fully in its workshops, before offering them once again to its most loyal clients, with a new 3-year guarantee. François-Paul Journe sees this as a way of preserving his heritage, strengthening confidence and retaining control of his company’s image and authenticity. It’s an original approach, which is in perfect keeping with his passionate desire to keep strict control over distribution. “While today you can easily find prestigious watches available at a 40 or 50% discount, you will never see any of my watches on special offer. I’ve spent over 20 years building up my image, and I’m not prepared to jeopardise that on a whim. In my view, much of the current crisis is due to the blindness and greed of many large watchmaking companies. Now, they’re paying for their recent excesses.” Just as he has never been swayed by the currents of fashion, François-Paul Journe refuses to be swayed on this point. Time will prove him right – as it already has. p

europa star

| COVER STORY | 15

MARKET FOCUS

WHATâ&#x20AC;&#x2122;S GOING ON

A WORLD WATCH TOUR Europa Star conducted a watchmaking tour of three key markets which lie at a business crossroads: Hong Kong, the historical global hub currently living through a very difficult phase; the United States, which has conquered anew the top spot in terms of imports of Swiss made watches; and finally, Italy, the primary European destination for Swiss watchmakers. Analysis.

In the space of two years, sales of Swiss watches in Hong Kong have halved, and the title of global market leader passed to the United States in July. In September, Europa Star went to Hong Kong’s 35th watch fair to investigate. Read on for analysis, commentary, interviews and revelations. by Jean-Luc Adam

lashback: in 2008, sales of Swiss watches were booming in China, and in Hong Kong in particular, where 80 to 90 per cent of buyers are Chinese. The watch craze lasted six years, new millionaires seemed insatiable and watchmakers struggled to keep up with demand, and even more so with aftersales services. Every year, new records were set and Asia accounted for half of its worldwide exports. Little Switzerland, supported by its watchmaking industry, even went as far as racking up a trade surplus to rival the Chinese export empire. But on 14 March 2013, Xi Jinping was elected to the presidency and put an end to such exuberance. “His war against corruption in the People’s Republic of China was waged through the stigmatisation of luxury products, and watches in particular,” Esther Wong, president of The Federation of Hong Kong Watch Trades, tells us. In 2014, members of the public found great amusement online by identifying and valuing the watches worn by local government officials in all provinces – some had entire collections. Such excess was seen as a barometer of corruption. The result: some 1,500 party officials faced corruption charges and more than 200 were found guilty. But as corruption has worsened in China (according to Transparency International), Xi Jinping is suspected of having primarily

removed his reformist opponents in order to avoid a potential collapse of communism, USSR-style.

SHOP TALK For the watch industry, regardless of Xi Jinping’s intentions, the damage is done and the downturn is affecting the luxury sector in particular, as our tour of watch shops in Hong Kong has confirmed. As we could have predicted, all the sales assistants we spoke to insisted on keeping their anonymity. Ms Tang works in a shop selling 32 luxury brands, with an upmarket range including HYT, Harry Winston and Ulysse Nardin, and a lower-end range featuring Baume & Mercier and Oris. “Our Chinese customers tell us that frankly, they no longer want a watch as a status symbol,” says the sales manager. “But we’re suffering less than the single-brand luxury stores because we can always suggest an alternative in the form of a niche model or a more ordinary brand,” she adds, mentioning Rolex and TAG Heuer. Is it true that brands are recalling stock on consignment? “Not at our shop in any case, all the items have been paid for,” she replies, eyes wide. And has the grey market grown? “It has always existed. We have major Asian customers, but as demand has decreased, the grey market has also slowed,” Miss Tang reassures us, adding, “And we don’t sell at a discount either.” In the most opulent Hong Kong store, Miss Cheung admits to a fall in sales that “is said to be due to a massive drop in the number of Chinese tourists,” and laments “that we don’t have more young people come into the shop.” Next, we knocked at the door of an exclusive retailer. Surrounded by ceramic Longeau watches, David welcomes us full of optimism. “Business is going well and our stock hasn’t been recalled,” he says. “Furthermore, we’re benefiting from a recent rent reduction and our costs have been cut by a third.” Has this

included job losses? “Not for us, but it seems that some retail chains now just employ sales assistants and then a single manager covers all of their stores.” However, rents aren’t decreasing everywhere and this could even cost young Yoko her job managing a small store in a shopping centre. “Even if I were to sell a fashionable and inexpensive brand, the charges would become too costly,” she says. Has the drop in sales also affected plastic watches? Yoko shrugs her shoulders. “Maybe young people today prefer an Apple watch.” The other retailers we visited wouldn’t tell us more, or refused to talk to us at all, with a curt ‘no comment’. As enlightening as it was to visit these shops, we’re still sceptical that the vendors are in a position to be objective, or even that they really understand what’s going on. One thing is certain: exorbitant rent prices in Hong Kong (among the highest in the world) rapidly become unendurable as business slows – which has been the case since the ‘Umbrella Revolution’ two years ago, when Chinese tourists began to disappear. On the subject of store closures, Esther Wong from the Federation of Hong Kong Watch Trades states, “It’s difficult to quantify exactly, but around 10 watch shops have closed in Hong Kong this year. As the phenomenon is affecting all the local industries, some landlords have agreed to immediately lower rent by around 20 per cent.” An unprecedented move.

SMARTWATCHES: A HOLLOW DEBATE We’re back at the famous Hong Kong Convention and Exhibition Center where, as part of the watch fair, an exhibition has brought together the presidents of the major watch federations. For the past two or three years, the same participants have repeated the same speeches on the same subjects with the same aim of reassuring audiences. None of them

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wants to believe that we are witnessing a new watch industry crisis, threatened by the arrival of the smartwatch. “No,” insists Jean-Daniel Pasche, president of the powerful Federation of the Swiss Watch Industry, “the smartwatch is supplementary and utilitarian, and so doesn’t compete with the watch industry, which seeks to incite emotion.” Indeed, as each model quickly becomes obsolete and its style is dominated by the screen, the smartwatch has no chance of conferring the same status as a classic watch. “We also know that customers often have several watches, each worn for a different activity. Consequently, the smartwatch doesn’t exclude the traditional watch, it complements it,” Pasche maintains. Admittedly, given that it requires daily charging and pairing with a smartphone (to provide additional features), the smartwatch is a pure gadget. In reality, it’s the smartwatch (and by extension the smartphone) that is threatened by the arrival of future technologies such as smartglasses, smartlenses, smart implants, etc. Pasche drives home this point, saying, “If this weren’t the case, the lower-end segment of the Swiss watch industry would have been directly affected. And yet this is the market segment that has best withstood the market. Even though it is a bear market.” The question that is secretly gnawing away at the presidents of the watch federations, far more than the smartwatch issue, is the question of symbolism.

A DECADENT SYMBOL? For a long time, the wristwatch was as strong a symbol of masculinity as the cigarette was in the 1960s. A symbol of virility, power, elegance, individuality, intellectualism, adventure, rebellion–the language used to describe both was exactly the same. And yet smoking has become taboo and even James Bond has ditched the cigarettes, if not his beloved Martinis. So what does the future hold for the wristwatch?

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New consumers are now from generations X, Y, and Z. Well, for the parents of generation X and Y children (born between 1960 and 1990), the wristwatch was already losing its influence as a status symbol. I personally witnessed this in the 1980s when, as a child born right in the middle of generation X, I saw my father, then a tennis champion, win many magnificent watches from sponsors. In my eyes, a branded watch was an extension of your personality. But I was surprised to see that more and more, my friends’ parents shamelessly wore the first Swiss anti- watch, the Swatch. Triumphant, the disposable and impersonal plastic watch credited with ‘saving the Swiss watch industry’ also removed its soul. Two generations later, the fathers of generation Z boys (born after 1995) have relegated the watch to the level of an optional accessory for men. Inevitably, if parents do not pass on a symbol to their children, the symbol dies. It is now easy to see why watch industry federations do not frown upon the arrival of the smartwatch: reintroducing young people to the concept of wearing an object on their wrists could be the best way to bring them back into the fold of the traditional watch industry, which, for its part, is also reaching out to young people by launching its first connected models. Studying generation Z, understanding generation Z, predicting generation Z, these creatures are at the centre of every marketing study. Why? Because they’re ‘digital natives’; the first generation to be entirely surrounded by technology and the generation who will shape the future. In their new world of social networks, generation Z has developed a heightened sense of community values, broken down social barriers, and ended both the class war and gender inequality. But be careful, generation Z is unpredictable, defiant, consumerist, and narcissistic! Anyone for a selfie? Its loyalty to a brand is fleeting, and if a brand makes even

the slightest faux-pas, it is immediately picked up on. Intuitively surfing the web on touchscreens, the brain has developed new abilities and, in no time at all, generation Z has realised the pointlessness of the smartwatch and published all its weaknesses online. The manufacturers are kindly asked to go back to the drawing board.

THE EXCEPTION TO GENERATION Z In China, the fathers of generation X and earlier dreamt of owning the ‘three machines’ – bicycle, sewing machine, and watch – but this dream only came true for a tiny minority. The concept of a wristwatch as a status symbol was therefore not passed down from father to son. Even the smartwatch is rarely seen on the wrists of younger generations, with the exception of a few tech geeks. Suddenly, in the streets of Shijiazhuang, the capital of Hubei province (300 km south-west of Beijing), a ‘Z’ appears wearing a Swatch Sistem 51! For Yunkai Qiu, a 19-year-old Chinese student, “an affordable automatic watch is a must.” And your friends? “I’m a bit of a double exception: hardly anyone wears a watch and even fewer wear a mechanical watch. Students avoid unnecessary expenses and already have the exact time on their smartphone.” But once they join the world of work, will they buy a Mido, Titoni, or even a Swatch? “I doubt it,” replies Yunkai. “Young people are used to checking their phones all the time, even to find out the time. I’m unusual in China because I like tradition. So it probably won’t surprise you to learn that I’m studying Chinese medicine.” It’s clear that the boom years of the watch industry in China involved not the younger generations, but rather the older ones, those who had dreamt of a watch before becoming rich. The explosion of shops in China has not created a lasting culture for wristwatches. p

FINESSE AND REFINEMENT

by the motorist of time

SHAPED MOVEMENTS

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MARKET FOCUS Interview with Julie Petit, WeiserMazars Following the slowdown in China starting in 2014, many Swiss watchmakers have viewed the U.S. market as a â&#x20AC;&#x2DC;compensatingâ&#x20AC;&#x2122; eldorado. Has it really been the case?

WHILE CATERING TO SHIFTING DEMANDS

The U.S. accounted for approximately 28 percent of total watch industry sales worldwide in 2015, which amounted to $11 billion in sales. Swiss-made watches, largely belonging to category of luxury watches, represented about 20 percent of U.S. watch industry sales in 2015. Strong economic performance in the U.S. is expected to drive the watch industry upward in the coming years, and the highvalue watch industry is expected to grow. This trend is very favourable for Swiss luxury watchmakers exporting to the U.S. As the economy improves the sales trends of the luxury watch industry in the U.S. appear to be better than in other regions of the world. However, U.S. and Chinese consumers are different and U.S. growth may not necessarily compensate for the downtrend in sales in China. Swiss watchmakers are also facing other challenges in the U.S. such as growing interest in smartwatches, fluctuating currency exchange rates, and rising use of digital media. The first two months of 2016 saw a decline of exports of 5.4 percent on a yearly basis. How healthy is the U.S. watch market today? The U.S. watch market is facing hurdles of technological advancement and lifestyle changes in its buyers. Time display has become a ubiquitous feature in electronic devices, from coffee machines to cell phones. This has created the perception that owning a traditional watch is

redundant, which was further solidified by the rise of smartphones. Sales of traditional watches are suffering also because of the lack of additional functionalities other than telling time. Currently, more people in the U.S. own a mobile phone than a watch, and smartwatches are gaining market share, in part because of their ability to provide useful features like thermometers, GPS, altimeters, and mass storage. Not many Swiss manufacturers have adopted this new technology. TAG Heuer has started to launch smartwatches. While sales are still low, TAG Heuer’s watches have been well received in the U.S. watch market and may become a trend. Who are the biggest players in the U.S. watch market today, by price range (local vs. foreign brands)? The U.S. watch industry offers a wide range of choices for its consumers, from high-end Swiss luxury watches costing hundreds of thousands of U.S. dollars, to cheaper watches from Hong Kong priced as low as $4. Most manufacturers focus on a specific segment of the market, distinguished by the price point of their products. Rolex, Omega, Cartier, Breitling, and Patek Philippe are examples of luxury-market players while Longines, TAG Heuer, Rado, Tudor, Michael Kors are middle-range-market players. Imports from China mostly comprise the lower-market segment. Although many key players in the industry will not reveal the number of watches they sell, Apple, Rolex, TAG Heuer and Omega are the most popular watch brands in the U.S. Brands rounding out the top ten include Swatch, Michael Kors, Tissot, Breitling, Patek Phillippe, and Hublot. According to 2015 surveys on the biggest players in the U.S., Rolex was the most preferred brand among upper-income teens, i.e. household income more than $107,000. Michael Kors,

Casio and Fossil ranked second, third, and fourth respectively among this group. Apple ranked fifth with five percent of upper-income teens preferring the product. Relatively new brands like Shinola want to revive the American watch industry tradition. Are they succeeding in their endeavour? After the economic slump the slogan “Made in America” caught on with politicians, manufacturers and consumers alike. Brands like Shinola capitalised on this trend and established themselves as American manufacturers of bicycles, watches, and leather goods. Shinola was founded in 2011. Its annual sales amount to about $100 million and Shinola watches sell for between $475 and $1,125. Shinola’s popularity surged after President Obama purchased one of their watches for himself, declaring the company a symbol of American manufacturing bringing jobs back to the country. President Obama even gifted a Shinola watch to former British Prime Minister David Cameron with the seal of the President on it. Shinola’s watches are assembled, crafted and designed in its factory in Detroit, Michigan by around 500 employees. The company failed to meet the standards set by the Federal Trade Commission (FTC) to be called “Made in America”. Shinola is partially owned by the Swiss manufacturer Ronda and procures some of its components from Switzerland. Nevertheless, Shinola is viewed as one of the trendiest watchmakers in America among millennials. Its endeavour has been extremely successful and is taken as an example by other U.S. brands both in and outside the watch market. The American watch giant Fossil is increasingly going digital, to the point that their entire production might consist of smartwatches in five years’ time.

We feel that the appeal of connected watches is bigger in the U.S. than in Europe and could directly bite into the market of quartz watches. Is this directly related to the decrease of Swiss watch exports to the U.S.? How successful are smartwatches in the U.S.? Do traditional watchmakers have to worry? The introduction of smart wearables has raised a heated debate in the industry as to whether smartwatches will nullify the traditional watch market. Approximately one in 20 Americans owns a smartwatch. This segment is expected to grow and may cannibalise sales of traditional watches within the next five years. But it has not been the case in 2016, even if the decline in the export of Swiss watches seems to be related to the increase in sales of smartwatches in the U.S. Smartwatches challenge the under $1,500 traditional watch category for the most part. Depending on the number of apps and features available, most entrylevel smartwatches are currently priced at $120-200, while middle range watches are priced at $300-500. Apple’s most anticipated smartwatch was launched at an entry price of $350. While it was considered expensive by some, the price made adoption of the technology feasible for a broader audience of consumers. The popularity of smartwatches does give rise to more discussions among other watch manufacturers. In 2015 Fossil reported a decline in watch sales of 8 percent. To reverse this trend, the company acquired wearable technology maker Misfit for $260 million and launched its first smart device. In addition to spending on in-store promotional activities, Fossil also announced it has been working on innovative designs and plans to launch 100 smart products in eight of its brand lines by the end of 2016. In 2015, Montblanc launched the e-Strap device. It is a smartwatch combining mechanical timepiece and digital func-

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| MARKET FOCUS | 21

tionalities. The e-Strap watch meets the highest standards of traditional Swiss fine watchmaking while including an activity tracker and the ability to control a smartphone. The e-Strap, which is sold for around $4,000, can take pictures, receive phone notifications or search for the phone (or the watch) within a range of up 30 metres. Can you assess the reality of the success (or failure) of the Apple Watch? The Apple Watch is marketed as a lifestyle trend. The Apple Watch represented a 5-to-6 billion dollar revenue stream in the U.S. for its first year on the market, based on the known average selling price of around $450 per unit. Seventy-seven percent of Americans who bought the Apple Watch liked the product and found it useful. However, the Apple Watch cannot be viewed as a success when compared it to the launch of the iPhone or other first-generation Apple products. The media were very excited by the launch of the Apple Watch but sales in the U.S. have not been as high as expected. One of the main deterrents causing potential customers to forgo the watch appears to be the price. However, it seems that people are interested in the Apple Watch, and it is viewed as an aspirational, advancedtechnology product. Global adoption may still be further down the road. Online sales seem to already be part of daily life in America, contrary to Europe. How big is this phenomenon related to watches, compared to traditional brickand-mortar retail? Online sales are indeed part of daily life in America. The online watch market can be viewed as risky for both buyers and sellers of luxury watches though, as buyers may unwittingly purchase fake products and sellers face risks to their reputation. Most well-known European companies

22 | MARKET FOCUS | europa star

like Cartier, Bulgari, and Baume & Mercier do have an online presence in the U.S. Traditional watch companies follow different strategies. For instance, Omega considers watch buying to be an emotional decision and as such prefers to have physical bricks-and-mortar stores host its transactions. This is reflected in Omega’s more than 300 mono-brand stores worldwide. Conversely, other watchmakers like Fossil follow a different path, viewing e-commerce as an important component to success in the long run. Fossil increased its online focus and reduced its physical presence from 296 stores to 281 stores in 2015. The trend of online sales is stronger for smartwatches than for traditional watches. Companies like Apple have options for both a traditional shop space and an online presence. Apple believes empowering customers and making the buying experience convenient for them are the keys to success in an age where technology changes how businesses are operated. How important is the vintage watch market as well as the second-hand watch market in the U.S.? Conventional auction houses like Sotheby’s, Christie’s, and Antiquorum still dominate the vintage auction market. They are mainly used for high value items, including vintage watches, most of which are sold at high price points, deterring potential buyers. The vintage watch market is a business on its own and represents a small market. Further, to a millennial, vintage has a history, making vintage watches appealing. On the other end, the advent of websites like eBay and Craigslist that encourage people to sell their unwanted possessions has increased interest in pre-owned watches for both buyers and sellers. This has encouraged many new start-ups to create online shops connecting sellers with potential buyers. The recent increase in online marketplaces for pre-owned watches indicates that the number of sec-

ond-hand watches for sale has increased. Some of these sites even encourage their buyers to buy new watches from the manufacturer’s shop as they later have the potential to become mint condition, pre-owned watches – complete with original box and papers. What are the main elements that drive the U.S. luxury watch market today: purchasing power, buying mood, or geopolitical events? Purchasing power is a commanding element driving the U.S. market for traditional luxury watches. As young people get older and increase their disposable income, they tend to invest in traditional watches as a symbol of power and money. Owning a Rolex or a Patek Philippe is considered a status symbol. Further, a traditional timepiece has a longer life-span than most smartwatches, making them popular among older generations. Fashion trends also drive the U.S. watch market as watches are seen as pieces of jewellery. About 30 percent of Americans wear a watch as a fashion accessory, and close to a third of women buy watches to complement their wardrobe. The disposability and affordability of many brands make them a popular fashion choice. This product segment denotes an increasing demand for lower cost watches and accessories. Making a stylish statement also drives the smartwatch market. The decision to purchase a smartwatch appears to be a function of popular culture and lifestyle trends. The allure of smartwatches is stronger in younger buyers, which is not surprising knowing that the younger generation has grown up with mobile and smartphone technology. Finally, as the economy improves in the U.S., consumers are becoming more comfortable spending on nonessential items such as watches. The economic situation is definitely an influential driver to take into account for the watch market. p

MARKET FOCUS

REPORT ON

In 2015 the Italian watch market became the leading European market for Swiss watches. 2016 looks to be more difficult, but Italians’ enthusiasm for watches does not appear to be waning. Points for analysis. Interview with Sylvain Rousmant, Mazars Italy Italy is Europe’s strongest market for the Swiss watch industry, ahead of the United Kingdom, Germany and France and ahead of cities such as London and Paris, despite the fact that the country has a smaller population. How can you explain this strength? The cult of luxury and style is the determining factor for the constant diffusion and expansion of Italian-made products and explains the success of the Swiss watch industry in Italy. Although not a forerunner in the sector, Italian watchmaking has nonetheless demonstrated its expertise through historic brands such as Panerai and Bulgari, which now belong to the Richemont and LVMH groups respectively. In 2015 the Italian watch market experienced an increase of 11.9% reaching 1.41 billion € in turnover despite a slight decrease of 2.9% in the number of units sold, or a total of 7 million. These figures are the result of the first signs of recovery recorded in 2014 and of the growth of the tourism sector. That being said, this trend was not confirmed during the first half of 2016, when Italy experienced a downturn of -12.6% in the watch sector, putting it at second place in Europe behind France (-14.8%). This slowdown may be largely explained by the Swiss National Bank’s

decision of 15 January 2015 to remove the euro/Swiss franc cap introduced in 2011, which led to an increase in the average price of Swiss watches of approximately 14%. Is this mainly due to tourists or locals? The strong performance of 2015 can mainly be attributed to the upsurge in tourism, the number of visits having increased by around 10% in 2015, largely thanks to the Universal Exhibition and the Extraordinary Jubilee of Mercy organised by the Vatican. Despite a reduction in Russian visits, the large numbers of American and Chinese tourists confirm the fact that the country remains a choice destination for non-European visitors, as illustrated by the data from Global Blue. Benefiting from an advantageous exchange rate, Chinese tourists were also able to satisfy their need for a “customer experience” – thanks in particular to the efforts of the leaders in this sector – and continued to buy in Italy despite the measures taken by the Chinese government to boost local purchases. This trend is confirmed by the fact that most watches are sold in the principal cities of art such as Rome, Milan, Florence, Verona and Venice. Are there seasonal sales peaks, for example the height of the summer tourist season or Christmas and New Year? The market data allows us to say that the key purchasing period is December, when watch sales represent 24.9% of the total annual units sold and 19.5% in terms of value. April and July are also months of intense activity when 10% of the total annual value is sold. The remaining sales are divided equally between the other months despite an increase in impulse purchases (34.3% in 2015 compared to 26.6% in 2014).

Which are the brands favoured by Italians (both in terms of volume and of value)? Despite the reticence of companies to communicate the number of watches sold, the available market data allows us to confirm that the Swatch group is in first position with a portfolio of products so complete that it covers all segments, from reasonably priced watches with Swatch and Flick Flack to the luxury sector with Omega and

“Watches are a reflection of personal style, an example of taste, character and individual branding.” Breguet. Richemont is in second place with flagship brands such as Cartier, Van Cleef & Arpels, Piaget and Panerai. LVMH’s Watch Division is guided by solid brands such as Bulgari, Hublot, TAG Heuer and Zenith. We have also noted a preference among Italian consumers for Rolex and Patek Philippe, brands that are the object of true devotion on the part of collectors. In years to come, however, these major players must consider the demands of millennials – for whom connectivity has become essential – when creating new products. Is the Italian watch market mainly male or balanced between men’s and women’s watches?

a 9% drop compared to 2014, which is partially explained by the growing supply of unisex watches, which are generally classed in the men’s sector. Historically the Italian watch retail trade was highly fractured and family based, with small boutiques in every town. Is this now changing? While watchmaker’s shops and jeweller’s shops remain the primary retail outlets, representing 58% in terms of volume, the importance of these traditional points of sale has reduced in terms of value over the past three years – from 74% in 2013 to 61% in 2014 and finally 53% in 2015 – in favour of single-brand boutiques in which the market’s main players invest. Online sales, which cover a broader and more diverse range of consumers, are also constantly on the increase, representing 16.3% of the total volume in 2015 (14.7% in 2014) and 11% in terms of value (8% in 2014). Who are the main players in the Italian watch retail trade? Firstly, the Italian distribution network has allowed the emergence of multi-brand points of sale in the fashion centres, to the detriment of more peripheral areas. Furthermore, the main players in the sector regularly open single-brand boutiques in streets dedicated to luxury goods in order to attract wealthy tourists. Finally, the growth of e-commerce represents another strategic theme that will make its mark in the years to come. p

In 2015 the sale of men’s wristwatches represented 48% of units sold (44% in 2014) and 59% in terms of value (50% in 2014). The women’s segment, on the other hand, represented 42% in terms of volume and 36% in terms of value,

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| MARKET FOCUS | 25

SMARTWATCHES

Smartwatches are garnering little enthusiasm from Swiss companies, to say the least. Brands feel ‘forced’ to get involved, without any real appetite to do so (apart from the enthusiasm shown by TAG Heuer’s Jean-Claude Biver, but we wouldn’t expect anything less from him). The fact remains that this unstable market is in the process of establishing itself in parallel to the mechanical watch and directly on the territory of the quartz watch. A diverse range of offers has sprung up since last year. We take stock of the situation as it stands.

by Serge Maillard

he smartwatch market, which really flourished – both in terms of image and sales – following the launch of the Apple Watch in April 2015 after several years of simmering, is now showing mixed results a year and a half later. Nevertheless, we are beginning to get a better understanding of its nature. On the one hand, with estimated sales of more than 11 million units in 2015 according to market research firm IDC (a figure that should be taken with a pinch of salt, as Apple is yet to release the exact figure for the watch separate from the results of other products in the category), the Cupertino firm is the second biggest watch company worldwide. This places it directly behind Rolex, with a turnover of around 4.5 billion francs, according to the slightly provocative ranking of Swiss bank Vontobel (see table) and Tim Cook’s last keynote speech. Another smartwatch brand, Fitbit, (although the majority of their sales are of fitness bracelets), is in fifth position with a turnover of 1.8 billion, between Cartier and Patek Philippe. On the other hand, the ‘emotional’ passion – historically one of the keys to success for Apple – that we might have expected for this product category has been less pronounced than expected. The iPhone and iPad have become real technological icons of our era, even though sales of the former have declined for the first time. Meanwhile, the Apple Watch is, for the time being, far less mainstream, and its results remain modest in comparison with the 231 million iPhones and 55 million iPads sold last year. Although we should nevertheless remember that while some are quick to talk of ‘below-par performance’, these figures would excite many watch companies. The customer experience is often disappointing and it’s highly likely that a considerable number of smartwatches end up

WATCH INDUSTRY INCL. SMARTWATCHES CHF / WEARABLES: MARKET SHARE 2015

CITIZEN 3% FITBIT 4%

Source: Vontobel Equity Research

LVMH/BULGARI 4% FOSSIL 5% APPLE WATCH 10%

OTHERS 36% ROLEX 10%

SWATCH GROUP 16%

RICHEMONT 12%

APPLE AND FITBIT ALREADY IN TOP 5 COMPARED TO SWISS WATCH BRANDS If we compare the top 10 Swiss watch brands and include the leading smartwatch producers, Apple (estimated sales 11.6 mn units/USD 400 average price) ranks no. 2 with sales of CHF 4.5 bn (Vont E) and Fitbit no. 5 (sales of USD 1.86 bn, +149%). If we add up the estimated worldwide watch market (CHF 38 bn) with the smartwatch/wearable market (CHF 9 bn), the three Swiss companies Swatch Group, Richemont and Rolex still hold the no. 1-3 spots, with Apple placed no. 4 (10% share) and Fitbit no. 7 (4% share). 4,900 ROLEX

ggggggggggggggggggggggggggggggggggggggg

4,500 APPLE WATCH

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

2,060

ggggggggggggggggg

OMEGA

2,010 CARTIER

gggggggggggggggg

1,784

FITBIT

~~~~~~~~~~~~~~~

1,320

PATEK PHILIPPE

ggggggggggg

1,260 LONGINES

gggggggggg

1,060

TISSOT

ggggggggg

805

AUDEMARS PIGUET

ggggggg

775

IWC

ggggggg

725 TAG HEUER

gggggg

715 SWATCH

gggggg

in a drawer or back on sale a few weeks later as a result of disappointment or loss of interest in a product that remains a simple extension of the smartphone and that is yet to find its killer app (the author can attest to this). ‘Personally, I only kept my Apple Watch for two weeks,’ admits René Weber, the author of the Vontobel report. Is it in fact just a duplicate device costing the same as a smartphone?

SWISS WATCH BRANDS/ SMARTWATCH AND WEARABLE LEADERS IN COMPARAISON (sales 2015, CHF mns, Vont E) Source: Companies, Vontobel Equity Research

‘Over a year since the release of the Apple Watch, there are still many question marks hanging over the smartwatch, and few answers. For the time being, we cannot say that it has had a notable impact on the low end of the market, as this is the segment that best endured the market in 2015,’ notes Jean-Daniel Pasche, president of the Swiss Watch Industry Federation. u

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| SMARTWATCHES | 27

ANOTHER MARKETING SUCCESS FOR TAG HEUER This burgeoning market, which currently represents just 1.5 per cent of global watch production, is nevertheless showing naturally strong growth of 224 per cent more than the first quarter of 2016. Apple is the giant in this category, with more than half of the market share, ahead of Samsung, Fossil, Casio, Garmin and TAG Heuer.

2Q16 MARKET SHARE

2Q15 UNIT SHIPMENTS

2Q15 MARKET SHARE

YEAR-ON-YEAR GROWTH

1 APPLE

1.6

47%

3.6

72%

-55%

2 SAMSUNG

0.6

16%

0.4

51%

3 LENOVO MOTOROLA

0.3

0.2

75%

4 LG ELECTRONICS

0.3

0.2

26%

5 GARMIN

0.1

25%

OTHERS

0.6

16%

0.6

11%

-1%

TOTAL

3.5

100%

5.1

100%

-32%

VENDOR

2Q16 UNIT SHIPMENTS

TOP FIVE SMARTWATCH VENDORS, SHIPMENTS, MARKET SHARE AND YEAR-ON-YEAR GROWTH, 2Q 2016 (units in millions)

Source: IDC Worldwide Quarterly Wearable Device Tracker, July 21, 2016

Note: Data only includes smartwatches capable of running third party applications on the device itself. Examples include Apple Watch, Moto 360, Gear S2. Devices like the Fitbit Blaze and Withings Activité are excluded since IDC considers these as “Basic Wearables” that do not run third party applications.

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Director Jean-Claude Biver has pulled off another of his customary strokes of marketing genius by positioning the historic Swiss brand as a quality alternative to the Apple Watch, following the grand launch of the Carrera Connected in New York (200,000 pieces expected in 2017, a third of total sales), particularly in the minds of American consumers. They represent a market with high potential where sales of smartwatches are already having an impact on the results for quartz watches, Swiss or otherwise. It’s a factor that the Fossil Group is well acquainted with, following the vast operation it has launched to target this market. Probably sensing a near-miss, at Baselworld the group announced the launch of a hundred or so smartwatches for its various licensed brands. The world’s fourth leading watchmaker could even soon exclusively produce smartwatches, following the buyout of high-tech firm Misfit. Some high-end brands, hoping to attract new generations of purchasers, are seeking to associate their image with this budding market, despite the inherent planned obsolescence that contradicts the spirit of the mechanical watch. Montblanc made an impression last year with the smart bracelet it presented at the SIHH but this has since seemed to go below the radar. However, it’s the traditional and affordable quartz watch segment (accounting for 97.5 per cent of watch production worldwide) that is most imminently threatened by new smartwatch producers. Unlike the Fossil group, Swatch Group is yet to launch a real full-scale offensive in this niche or to partner with one of the major players from the smart ecosystem. For René Weber from Vontobel, it’s likely that a large number of quartz watches will incorporate at least a smart module in the years to come.

NOKIA ENTERS THE FRAY ‘We expect to see major developments in the near future: smartwatches that really look like watches, easier-to-use interfaces, applications to rival those found on smartphones,’ says Ramon Llamas, head of research at IDC. While the customer experience can be disappointing with current models, smartwatches still hold great potential for improvement. One of the most promising areas is without doubt that of health monitoring tools. This is exactly why Nokia purchased the French smartwatch company Withings. After missing the boat with the smartphone, the Finnish company is focusing on medical technology. This is a huge market in our ageing society, in which smartwatches could represent one of the most interesting tools. Insurance companies are watching closely... But will smart modules remain confined to watches, when we’re hearing more and more about smart clothes, glasses, bracelets and headphones, not to mention chips implanted directly under the skin? The smartwatch is part of the larger environment of the Internet of Things, covering everything from connected fridges to robots. According to IDC, the wearables market alone (mostly smart bracelets for the time being) is expected to reach some 110 million units between now and the end of the year, equating to 40 per cent growth compared to last year, and this will rise to 237 million in 2020. How many watches will be among these hundreds of millions of units? That’s the question being asked of the fledgling smartwatches presented since last year. p

Fabergé Visionnaire DTZ Central Dual Time Zone (24hr)

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MMT: A SWISS ENGINEERED CONNECTED ALTERNATIVE Manufacture Modules Technologies – otherwise known as MMT – the Swiss company established in Geneva in 2015 for the development and commercialisation of Horological Smartwatch modules, firmware, apps and cloud, announced this autumn, during a press conference led by Peter Stas and Philippe Fraboulet, that it had completed its spin-out from the Frédérique Constant

Group (which was recently bought out by Citizen) and moved to new offices and workshops in Skylab, a high-tech hub in Geneva. MMT modules have already been implemented by brands such as Frédérique Constant, Movado, Mondaine, Ferragamo and Alpina. The organisation has provided over 70,000 Horological Smartwatch modules so far. The ‘new’ company presented a preview of the SwissConnect Gym App, SwissConnect Analytics, to keep track of the accuracy of a mechanical watch collection, and SwissConnect Password to keep passwords safe. “We realise that most brands are too small to invest individually in a comprehensive technology platform. However, when we work together with a number of brands, we have the critical mass to expand the current platform long-term. We license and own over 150 granted and pending patents covering construction, display, software, images, algorithms, machine learning, and works of authorship of any kind. Brands can create unique products with modules and individual technology components,” explains Peter Stas, the founder of Frédérique Constant. MMT will progressively present new functionalities for the current Horological Smartwatch module. It will also introduce two new modules, including one for ladies.

SINN’S HYBRID STRAPS Just like MMT and many others, the German watchmaker Sinn, which has been known to be a rather practical company over the years, has tried to bridge the elegance and heritage of classic mechanical watches and the functionality and connectivity of smart watches. It’s quite a dilemma. Are passionate watch wearers expected to remove their high-quality mechanical timepiece to make room for a smartwatch? Or will they stay true to timeless mechanics and forsake the benefits of a smartwatch? Or is the solution to wear a watch on each wrist? Others have opted to offer smart straps to pair with a classic mechanical wristwatch, like Montblanc’s e-Strap. Sinn’s solution is called the Dual Strap System. What you get is a set that includes two shortened strap halves for the Apple Watch, two shortened strap halves for your Sinn watch, and all the bits to connect it all together. You also have the option of wearing each watch separately by using another connecting strap which

is provided in the set. But if you do that, you’re back to square one and the problem you started with: which watch to wear! The Dual Strap System is designed to fit Sinn watches with a lug width of 22 mm and Apple Watches with a case size of 38 mm and 42 mm. Ironically, by trying to give consumers more choice in what kind of watch to wear, they’ve still managed to limit what kind of watch can be attached to their system. Still, for aficionados, you can test this system priced at 175 euros (or 100 euros if acquired simultaneously with a Sinn watch). A funny gadget more than a real solution!

OPINION

Gerald Roden Consultant, watch industry specialist, and former director of Swiss Festina Group (Soprod), De Grisogono, Gerald Genta, and Daniel Roth

‘A

few years ago, I would have been quite negative about the arrival of smartwatches. But we see the world through the perspective of the Swiss watch industry, which only represents 3 per cent of global watch sales. In 2013, however, I realised the enormous potential of this market, and so at watch parts manufacturer Soprod, I concentrated development on smart movements. The worlds of smart devices and watchmaking – in Switzerland the latter being strongly anchored in a mechanical approach – remain fundamentally different. The products don’t share the same life cycle. This is a fundamental difference. The Apple Watch has a twoyear life cycle, and such planned obsolescence is incompatible with the concept of luxury. Meeting the key players in Silicon Valley, I realised the extent to which they work within extremely short life cycles of no more than a year. The customer, marketing, distribution, and margins: everything is different.

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Apple wanted to be like TAG Heuer and TAG Heuer wanted to be like Apple: both were mistaken. In addition, recent developments for the Apple Watch 2 demonstrate that Tim Cook has reversed the trend and abandoned the watch-based approach. In contrast, the product is moving in a more sporty direction through a partnership with Nike. Apple is concentrating on the world of fitness and wellness. Its competitor is Samsung, not Rolex. As for Jean-Claude Biver, he is paying particular attention to channels of communication and brand rejuvenation, which both stimulate growth. The real catalyst for TAG Heuer will come from fundamental watchmaking innovation in mechanical watches. The launch of the Autavia will do more than the

smartwatch to consolidate the brand’s positioning within the segment. I also suggest that your readers look out for old Autavias that will become a hit at auctions. As for electronic watches... In my opinion, there is a third option for smartwatches: smart analogue. An independent, solar-powered watch that has the option of being smart. We have to address some delicate questions. How can we make smartwatches while continuing to stand for tradition and emotion? How can we keep our DNA, and avoid betraying ourselves? Fossil understood this very early on and its latest products, launched extremely quickly thanks to its acquisition of Misfit, demonstrate a real understanding of how the watch market has changed at the lower end. I think that watchmakers shouldn’t get involved in mass market electronics. Furthermore, what interests Apple in its current form is not so much the watch itself but rather information, Big Data. Eventually, they will probably sell the phone and watch together, then just the watch, as it will feature all the required technology. In general, we will have more and more smart products around (or in) us. Today, we wear two smart objects, tomorrow it will be five. Everything will be connected. This will not stop us from wearing a Swiss analogue watch or a

Swiss smartwatch with an analogue dial that brings more emotional added value. The Swiss industry is facing another issue: the financial means to conduct research. Apart from Swatch Group, the Swiss do not have the resources that the American or Korean groups do. And behind smart products is a large field of exploration relating to artificial intelligence. This whole ecosystem is based in Silicon Valley, not in Switzerland. A smart watch with a digital screen can be developed in California or Seoul. You can’t create an ecosystem artificially. On the other hand, Switzerland has vast expertise in Marin, but also at the EPFL, the HES-SO School of Engineering, at the Sierre business development centre, at the CSEM in Neuchâtel, not to mention the start-ups that are highly active in this domain. Taken together, all this expertise and proven experience can serve to develop an original Swiss solution that would make it possible to strengthen research and production in Switzerland, without necessarily using the Swiss Made label that doesn’t represent a key purchasing factor for this type of product. There are certainly many smart device projects hidden away in a drawer somewhere at Swatch Group. Its reluctance to release them is understandable, as they’re fighting to maintain their industrial expertise in Switzerland. Tens of thousands of jobs are at stake and it cannot start a wave of panic by proclaiming that the future of the lower end of the market is in smartwatches. I imagine that they also don’t want to associate with a more financially powerful partner from the world of electronics – they have always had a strong desire to keep things in-house. I am certain that Swatch Group is being clear-headed about the situation and is awaiting the opportune moment. I am, however, tired of reading the curses of fortune tellers predicting catastrophe without suggesting any strategic solutions.

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The slowdown we’ve been experiencing for several months is not only a result of the arrival of smartwatches. Surplus stock at companies and logistics centres, difficult geopolitical situations, and the limitations on the Chinese market as a result of anti-corruption measures have all played their part. This slowdown will result in a lot of changes in the watch industry, and not just in Switzerland.

“There is a third option for smartwatches: smart analogue. An independent, solar-powered watch that has the option of being smart.” At the same time, mass electronics and the watch industry will remain as two separate markets. I believe in market segmentation. Photography didn’t kill painting, as a friend and head of a watch company once told me. There will always be artists. But we can no longer talk about the spirit of a product like we did in the past. We need to gain some perspective, the Swiss watch industry isn’t doing so badly! It doubled its turnover in ten years and the fundamentals are still there. It is infuriating, however, to see the drop in creativity due to slowing sales and the lack of courage that luxury brands have shown. For the time being, the general situation is one of deadlock and timid attempts, but above all a wait-and-see attitude towards smart devices. Soprod and MMT are the only credible players in Switzerland today. In time, I believe that several types of market will develop in parallel. The purely mechanical watch will continue to exist and luxury marketing will play a more important role. Switzerland ‘only’ exported 21 million pieces in a 1.2 billion unit market in 2015, and this will decrease in size to include only the middle and higher-

end products. As for traditional quartz, it is seriously threatened with extinction. Quartz entry-level products by Swiss or Japanese brands will suffer as a result of the ever-increasing market share taken up by smartwatches. This is not a danger if Ronda makes a fresh start in mechanical watches and Citizen diversifies. There will also be the category of smart devices: bracelets, watches, clothes, glasses, luggage, fridges, cars, and even pets. These types of products will number between 25 and 28 billion by 2020 according to estimates by specialist research institutes. Moreover, I believe that there are still vast areas for developments in watchmaking beyond smartwatch innovations. The escapement offers numerous possibilities for development that could render the traditional escapement obsolete, such as using silicon to make it less sensitive to magnetism and less fragile. Lubrication is another area for innovation. My dream would also be to one day design mechanical movements supported by electronics. We could also really adjust the escapement to suit the way it is worn. Look at the leading role played by electronics in cars – here is yet another potential field of innovation that would be a real breakthrough, without sacrificing our traditions, and while protecting jobs!’ p

B ALCATEL MOVE TIME Alcatel Mobile proposes a smartwatch whose colourful design and wide variety of models reminds us somewhat of a connected Swatch. This ‘wifi watch’ is baptised ‘Move Time’. C ALI & CO MYSTERALI Mysterali is a Swiss-made watch with a mysterious quartz movement, an original development by newcomer Ali & Co. The mysterious hands appear to float around the dial... The watch is delivered with a strap containing a chip that makes a number of payment operations possible, simply by tapping the watch on a payment terminal.

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D APPLE WATCH SERIES 2 The Apple Watch 2 makes a splash, but will it sink or swim? The second smartwatch offering from the American tech giant was introduced alongside the launch of the latest iPhone 7. Perhaps the most notable part of the launch party was that the new version would be water resistant up to 50m. From a design perspective, it’s hard to differentiate this model from the first one. The 38mm version starts at $370 and the 42mm version at $400. There’s the option of shelling out some extra cash for a sporty strap by Nike. The brand abandons its golden Edition version. A signal that Apple (and smartwatches in general) will remain ‘low-key’ and sporty above all? E ASUS ZENWATCH 3 Serious challenger Asus introduces its ZenWatch 3, with a round case instead of the former squared one, and a look inspired by an ‘annular solar eclipse’, with the aim of more closely resembling a ‘real’ watch, at a price of slightly over $200.

F BREITLING EXOSPACE B55 The ‘aviation brand’ was probably among the most legitimate traditional Swiss brands to enter the connected game, with real functionalities. A done deal! In creating its first connected chronograph, Breitling has designed a highly functional timepiece for aviation professionals. Owners of the Exospace B55 can use their phone to perform certain adjustments – like time setting, time zones, alarms, display and operating parameters, night mode – helping to improve overall efficiency. Going in the other direction – from watch to phone – users can upload various measurements from the chronograph directly to the smartphone, like flight times, recorded times with split times, lap times, etc. The watch is powered by a SuperQuartz movement ten times more accurate than standard quartz.

G CASIO SMART OUTDOOR Casio has been in the watch game since the 1970s. But the new WSD-F10 Smart Outdoor Watch is far removed from the Casio digital watches you might be familiar with. The new watch incorporates Casio’s known tough performance with cutting edge sensor technologies, producing a reliable smart watch for the true outdoor enthusiast. At a price point of about $500, it is optimal for the outdoors, and not just because it is tested to military standard specifications to ensure it can withstand the toughest challenges that nature can throw at it. The WSD-F10 also delivers many new, original Casio apps for outdoor activities, like trekking, cycling, and fishing. The watch has a dual layer display, with either a monochrome or colour LCD face.

H SAMSUNG GEAR S2 BY DE GRISOGONO Between the exclusive luxury mechanical watch company and the mass digital production giant Samsung, there was a bit of culture shock to say the least. However, the limited edition of models launched since Baselworld doesn’t seem to be a simple marketing stunt but rather something leading to a more long-term partnership. Fawaz Gruosi, founder and creative director of the luxury brand, decided to decorate the case with rose gold and black diamonds as far as the bezel, which serves to control the smartwatch’s main features.

J FOSSIL GROUP: SKAGEN CONNECTED, FOSSIL Q, MICHAEL KORS ACCESS Fossil Group, the 4th largest watchmaker in the world (well, if you exclude Apple from the ranking), is aiming to go fully connected in the coming years after their buyout of tracking device specialist Misfit Wearables (and all of their expertise) last year. They operate their own brands but also a wide range of famous names under licence. They propose a wide range of connecting options, from the very low-profile and understated Skagen Connected, a hybrid watch that has a smart hands system to display performance (reminding us of the Horological Smartwatch by Frédérique Constant), to the next generation of the Q connected lines from Fossil and the Access by Michael Kors… Now we’re waiting for others from its portfolio brands to get connected.

I FITBIT BLAZE The fast-growing leading activity tracker Fitbit, a serious challenger to the Apple Watch, proposes its bestselling smartwatch, the Blaze, priced at 220 euros, with a 5-day power reserve and 14 strap options.

K FRÉDÉRIQUE CONSTANT HOROLOGICAL SMARTWATCH Frédérique Constant was the first in the Swiss watch industry to introduce a connected luxury piece, fittingly called the Horological Smartwatch. The ‘smart’ part of the watch comes from its engine: the MMT-285 calibre which works in tandem with Fullpower’s end-to-end MotionX technology platform. L GARMIN FENIX CHRONOS With the Garmin Fenix Chronos, the GPS specialist is trying, like other smartwatch producers, to get closer to the look of a ‘real watch’. So it’s a higher-end model, with a wide range of options and materials, and a higher price range (count on spending 1000 euros or more), which will be sold in the traditional watch retail network, rather than by outdoor retailers.

M HUAWEI WATCH JEWEL & ELEGANT This year, Huawei Mobile are focusing on ladies’ smartwatches with pieces decorated with Swarovski crystals, named Elegant, Jewel and Topaz, in the 500-700 euros price segment. N LG WATCH URBANE 2 The Watch Urbane 2 follows the first watch of the same name but now offers space for a SIM card, making it possible to make a call or navigate the internet via 3G without needing a smartphone nearby. You can receive notifications, find your location on a map, consult the calendar and monitor your workout. O MONDAINE PAYCHIP Mondaine presented PayChip at this year’s Baselworld. Thanks to its integrated chip, you can now pay with the watch on your wrist. The PayChip easily adapts to other watches thanks to the strap loop provided. To create this innovation, Mondaine partnered with the credit card provider Cembra Money Bank SA.

J H

P MOTOROLA MOTO 360 Motorola (part of the Lenovo group) is targeting fitness enthusiasts with its Motorola 360 smartwatch. For 179 euros, it is equipped with a silicone strap and case with a GPS chip that makes it possible to geographically track a workout. Q HUGO BOSS SMART CLASSIC & MOVADO BOLD MOTION Movado group, a licensing specialist (Coach, Hugo Boss, Lacoste, Juicy Couture, Tommy Hilfiger and Scuderia Ferrari), has partnered with HP to produce smartwatches at attractive prices. Among them, the Smart Classic from Hugo Boss is available in rose gold or grey with a leather strap. As for Movado, in 2015 it launched one of its first smartwatches, the Movado Bold Motion, with HP.

S PEBBLE TIME 2 The American brand, which has been through some difficulties this year, has slashed the price of its Pebble Time smartwatch, from $250 to $150. Having garnered attention on Kickstarter, it launched a new crowdfunding appeal and raised 12.8 million dollars to launch the Pebble 2 and the Pebble Time 2. The company has released a range of models to reach a maximum number of potential users. The Pebble Time, the Pebble Time Steel and the Pebble Time Round are designed respectively for frequent travellers, fitness enthusiasts, the fashion-conscious, and those who simply enjoy new technology.

T PHILIPS HEALTH WATCH Philips is targeting the high-potential segment of e-health with its Health Watch, which is presented as the only health watch to be ‘approved’ by doctors. The Dutch brand is also introducing fall detectors for elderly people. After all, they could end up as the prime users of connected devices, with life-or-death consequences, unlike some of the more playful applications available.

U SONY SMARTWATCH 3 The most recent watch from Sony comes with Android 6.0. It offers new features based on detecting the user’s movement via sensors incorporated into the watch. Unlike previous versions, it has moved away from the traditional watch aesthetic, with a simple rectangular case and silicone strap. Price: 150 euros.

R R NIXON MISSION American brand Nixon is aimed at thrill seekers looking for a tough device. Its ‘The Mission’ smartwatch is available from 400 dollars and presented as being one of the toughest on the market. Water resistant to 100 m, it has a stainless steel 48 mm case and is customisable with a choice of more than 15 colours. The silicone strap is also interchangeable, with 20 choices available.

V SAMSUNG GEAR S3 CLASSIC & FRONTIER The star of the latest IFA Berlin show was Samsung Mobile, presenting the Gear S3 designed by creative Swiss watchmaker Yvan Arpa. The challenge was really to get as close as possible to the look of a real watch. There is an interesting bezel rotation system to control the dial. Two designs are available: the Classic, and the Frontier, which features thinner push-pieces in order to be more manageable outdoors, for instance when wearing gloves.

W SUUNTO SPARTAN ULTRA The new GPS watch from Finnish manufacturer Suunto features a colour touchscreen that can be used for a total of 80 different sports. Heat maps show the preferred routes for running, swimming or skiing and display the route directly on the watch. Via the online platform Movecount, virtual races can be held using the database of millions of users. Available from 699 francs, the Spartan Ultra provides a battery life of up to 26 hours.

X SWATCH BELLAMY As a point of interest, this Swatch model owes its name to the American writer Edward Bellamy, who imagined a world where virtual payment methods had replaced money in his novel ‘Looking Backward: 2000–1887’, published in 1888. First launched in China and now in Switzerland and the United States, the watch also allows for contactless payments, thanks to an embedded NFC chip, all under the aegis of Visa. The Bellamy is available for just over 100 francs.

Y TAG HEUER CONNECTED Engineered with Intel Inside and powered by Android Wear, the TAG Heuer Connected is the first fully digital smartwatch to be developed by a Swiss luxury giant, fusing Swiss heritage and modern connectivity. The watch faces faithfully reproduce the appearance and functions of a true dial, with shadows under the hands. The unique way in which its applications are displayed - through “interactive counters”- is also reminiscent of a real watch. Based on first impressions, the TAG Heuer Connected therefore does look like a true chronograph. The price of this Swiss engineered watch is set at $1,500. At the end of the watch’s two-year warranty period, customers can exchange it for a mechanical Swiss Made Carrera watch, for an extra $1,500.

Z TISSOT SMART TOUCH Tissot presented the smart version of its famous T-Touch Solar at this year’s Baselworld. It has over 30 functions such as weather, altitude, and navigation, but is not able to receive notifications such as SMS or email. Available for around 1,000 francs, it is equipped with a 45 mm titanium case, a ceramic bezel and an anti-reflection crystal sapphire glass. It is water resistant to 100 metres. 8 TOMTOM SPARK 3 The brand presents its GPS watch TomTom Spark 3, with an easyto-remove strap and a separate control system, in order to better monitor heart rates. It doesn’t have the longest battery life, but it is a very sporty watch in the 100-300 euros price segment.

9 VECTOR LUNA This is ‘the smartwatch with a 30-day battery life’. With the use of Bluetooth low-energy technology, it is compatible with the three major operating systems: iOS, Android and Windows. : WITHINGS STEEL HR Our favourite at Europa Star: the Withings Steel HR, the purest and most beautiful of all (in our view), less like a gadget and more like a carefully designed watch, with hands and also a tiny digital screen. An elegant device for less than 200 euros, with a 25 day-power reserve, which is almost on a par with the master of minimalist style, Nomos Glashütte. This year, Nokia has made a good bet buying the French brand.

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BASELWORLD.COM

The one unmissable trendsetting show for the entire watch and jewellery industry, where all key players unite to unveil their latest creations and innovations. Be a part of this premier event and experience passion, precision and perfection in action.

MARCH 23 â&#x20AC;&#x201C; 30, 2017

MOONS

“The Moon is the dream of the Sun” Paul Klee

How many moons... What is there left to say about the moon that hasn’t already been said a hundred times, or a thousand, since the dawn of time? The moon is a nocturnal clock. The moon is a calendar. But the moon is also – and perhaps most importantly – the nearest celestial object to the Earth, which makes it the easiest to observe, and also the most mysterious. How many fantasies, stories, tales, legends, sagas, imaginary voyages, dreams, representations and poems has it inspired? The watch community has added more than its share to the treasury. From its very beginnings, horology has sought ways to transcribe the rhythm, the cycles, the seasons and the waxing and waning of the moon. If the sun was our first clock, the moon was our second. It may tell us little about hours and minutes, but it anchors us to far deeper cycles. For how many moons did Ulysses travel the seas? Leaving aside the mathematical achievements that gave watchmakers the ability to measure the lunar cycle, the moon also exerts a poetic influence over watchmaking. The moon is beautiful, mysterious and fascinating. Its surface can be represented in gold, stone, mother-of-pearl or lacquer, and

its pale lustre can be reproduced with diamonds. It brings a dash of poetry to the rigour of a watch dial. The moon gives horology a touch of soul.

Phases of the moon One of the main reasons watchmakers are attracted to the idea of representing the moon is because of the beauty and cosmic regularity of its cycles: new moon, waxing crescent, first quarter, waxing gibbous, full, waning gibbous, third quarter and waning crescent. The lunar cycle offers a series of expanding and contracting shapes that can be read like a code, indicating the “lunar time” throughout the period. At the very least, it gives the wearer the ability to enjoy the journey from moonrise to moonset. Where the moon is concerned, time becomes space. Down on earth we can observe the march of time, the passing hours, in the motion of shadows across the floor. When we raise our eyes to the night sky and see how much of the moon is illuminated by the sun, we are doing exactly the same thing. Except this time, rather than one day, the cycle takes around 29-and-a-half days.

Perigee

Apogee

356 500 km

406 700 km

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THE MOON VERNIER SCALE SHOWS: B New moon – zero hours C 5 days 18 hours (yellow scale) D 27 days 3 hours (blue scale) E Full moon (2 red indicators together)

USING THE MOON VERNIER IS STRAIGHTFORWARD: 1. The red arrow indicates the age of the moon in days. 2. If the arrow points to a number in the blue sector of the outer scale, the accurate value is also read from the blue sector of the inner Vernier ring. The age of the moon accurate to three hours is indicated where the next mark on the Vernier ring aligns with a mark on the outer ring. 3. These hours are added to the days indicated on the outer ring. In the same way, if the red arrow indicates a day on the yellow sector of the outer scale, the hours are also read from the yellow sector on the Vernier scale.

High-precision moons The lunar cycle, the “synodic period”, is the time taken by the moon to return to the same configuration, i.e. to the same position in the sky in relation to the sun, as seen from Earth. The synodic period of the moon, known as the synodic month, which is the period that separates two full moons or two new moons, is exactly 29.530588853 days. And that’s a real mathematical headache for any watchmaker trying to accurately transcribe this cycle mechanically. Let’s hear what one great lunar specialist, watchmaker Andreas Strehler, who was recently nominated for the Grand Prix d’Horlogerie de Genève for his latest creation,

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LUNE EXACTE BY ANDREAS STREHLER “The watch dial has a conventional moon phase display along with an additional indication via the Vernier scale at 6 o’clock. An arrow on this precision scale indicates the age of the moon in days. Two red marks indicate the full moon and the new moon. The Vernier scale’s inner ring enhances precision even further, taking it to three hours.”

Lune Exacte, has to say about the subject. His Sauterelle à lune perpétuelle, which loses just one day after “approximately” 2.045 million years, has already earned him an entry in the Guinness Book of World Records. We can conclude that he knows what he’s talking about. “A moon phase display that is termed ‘precision’ or ‘astronomical moon’ deviates from the synodic period by one day in 122 years. With the Sauterelle à lune perpétuelle, this deviation has been reduced to a little over two million years. But all moon phase indications have the same problem: however precise they are, they can’t be read precisely. Apart from the new moon and full moon, the person wearing the watch more or less has to guess the exact phase or age of the moon. Similarly, they have to wait for the new moon or full moon to adjust it correctly.” Andreas Strehler’s new Lune Exacte provides a solution to this drawback. The age of the moon can be read with far more granularity, both in days and, thanks to a Vernier scale, in 3-hour periods. On the principle that it’s easier to see when two marks coincide than to measure very small increments, the Vernier scale considerably improves the legibility of an analogue scale.

THE 6104R-001 CELESTIAL GRAND COMPLICATION by Patek Philippe The 6104R-001 is one of the most beautiful and accurate celestial watches ever produced. It features a unique blue dial that ibncludes a microscopically accurate star field disc. This celestial watch with date features

hours and minutes of mean solar time, sky chart, phases and orbit of the moon, time of meridian passage of Sirius and of the moon. The 44 mm 18K white gold case is set with 38 baguette diamonds.

First moons

Here’s a bit of history. The first astronomical clocks and spheres emerged in France and Germany in the 16th century. But it appears that it wasn’t until the early 17th century that the first “moon movement” clocks, as they were called, began to appear. Julien Coudray, a clockmaker working in Blois in France in the 1500s, was probably one of the trailblazers, along with the clockmakers of Lyon. When France sent its Protestants into exile, Geneva became a watchmaking hotspot, specialising in “moon movements”. The city archives contain a number of documents that bear witness to this remarkable expertise. A notarial deed from 1671 records an order placed with watchmaker Abraham Arlaud for “Fifty timepieces with moon movement of a mutually agreed size (...) All pieces of said work to be finished and adjusted to perfection, with silver ratchets and cocks, silver chapter rings, polished upper and lower plates and shaped spindles. And this in consideration of the sum of nineteen silver écus per piece.” Fifty pieces was a handsome order for a clockmaker capable of producing just four a month in his workshop, with his team of clockmakers. But you can’t put a price on the moon. One of the finest examples of these clocks, which were revolutionary for their time, can be found in the British Museum in London. It is attributed to Jean-Baptiste Duboule (1615–1694), and stands as testimony to the artistic excellence and astronomical prowess of the time.

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JEAN-BAPTISTE DUBOULE, SILVER CASED COACH WATCH WITH HOUR STRIKING, ALARM AND LUNAR AND CALENDAR INDICATIONS, C. 1645–1655 The upper right-hand dial shows the synodic revolution of the moon. The chapter ring marking the divisions is fixed, but a richly engraved disc in its centre rotates, while a fleur-de-lysshaped pointer indicates the age of the moon. The moon phases appear in a cutout inside this disc, which performs one revolution every 29.5 days. The chapter ring of the left-hand dial is divided into thirty, not thirty-one. In a sector aperture on this dial the sun, the moon and the five planets known to the Ancients appear in order – Mars, Mercury, Jupiter, Venus and Saturn – representing the seven days of the week; the sun for Sunday, the moon for Monday, Mars for Tuesday (mardi), etc. The disc bearing the names, along with illustrated figures, rotates in the centre of the watch.On the upper part of the dial a triangular aperture shows the month of the year along with the corresponding zodiac sign. Two further apertures on the lower left and right display allegorical figures. The sector on the left performs one rotation per day, showing dawn, midday, dusk and night. The right-hand aperture performs one revolution per year, displaying the four seasons. The lower dial is an alarm. The outer chapter ring bears the hours in engraved Roman numerals, clockwise from the top, and the internal rotating disc is carved with Arabic numerals in an anti-clockwise direction.

Blood moons Astronomically, a blood moon is an optical phenomenon caused by the diffraction of light. When the moon sits low on the horizon, the light that reflects from it has to pass through the thickest part of the earth’s atmosphere, lending it a reddish hue. Blood moons or harvest moons are the subject of many legends. The moon also attracts its lunatics. TONDA MÉTROPOLITAINE SÉLÈNE by Parmigiani In addition to the conventional approach – two discs which appear and disappear behind the wisps of a cloud – a series of elegant details give this moon a dreamlike quality. Bronze in colour rather than the traditional gold, its exceptionally brilliant surface shows traces of the lunar craters known as “maria”, formed by a highly complex layering of decals. The complication module has a pushpiece at 9 o’clock enabling the moon to be indexed independently of the time and day, in order to match its phases to the geographic location of reference. This correction function has a safety system which protects the gear from accidental movement.

Enlightenment moons ROTONDE DE CARTIER DAY AND NIGHT RETROGRADE MOON PHASE From left to right, from dawn to dusk, the sun and moon follow each other across the upper part of the dial. This dynamic display is accompanied by the retrograde motion of a hand indicating the phases of the moon, from the first to the last crescent, in the lower part of the dial. To bring out the very best in this complication, Cartier has designed a deep blue lacquered dial flecked with gold, across which the diamond- and sapphire-paved moon phases parade.

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DB25 JEWELLERY BY DE BETHUNE

Gibbous moons The term “gibbous” comes from the Latin gibbus, meaning “hump”. The moon is termed “gibbous”, whether it is waxing or waning, when the visible lit surface covers more than half of its disc. It is at that point where it is the easiest to visualise the moon as a sphere rather than a flat disc. The watchmaker who has most successfully and poetically interpreted the gibbous moon is probably De Bethune, with its superb three-dimensional moons.

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This creation is distinguished by the many ways in which the light plays across the materials and the complex dial architecture: the dark gleam of hand-polished and blued titanium, the sparkling twinkle of the white gold and diamond stars, and the muted glow of the curved blued steel hands. The depth of the star-studded sky is revealed through the alternating curves that are convex on the outside for the chapter ring, and concave in the centre. A spherical moon set with sapphires and diamonds shines at 12 o’clock, providing an exceptionally accurate moon-phase display that will diverge from astronomical reality by just one day in 122 years.

HM DOUBLE HEMISPHERE PERPETUAL MOON BY ARNOLD & SON For the first time, the HM Double Hemisphere Perpetual Moon displays the moon phases as they can be seen from both the northern and southern hemispheres, all in a single watch. The exceptional perpetual moon phase indication of this watch is a marvel in many ways. From an aesthetic point of view, the 29 mm moon phase disc, which runs from 10 to 2 and 4 to 8 o’clock on the dial, reveals not one but two of the largest moons on the market, with a diameter of 11.20 mm for the moons alone. While the first aperture displays the moon phase as seen in the northern hemisphere, a mirror image of the moon phase also shows the state of the moon in the southern hemisphere. Additionally, these large moons are one of the most visually stunning recreations of the moon because they are three-dimensional sculpted moons that are then duplicated for the series. These two sculpted moons are first hand engraved and then inserted into the disc.

Marine moons One of the moon’s most spectacular effects on the Earth is the gravitational pull that governs our ebbing and flooding tides. It’s not the only thing responsible for the motion of our oceanic clock, because the gravity of the sun and the earth’s rotational inertia also play a part. But the moon, our nocturnal satellite, appears to reign over the waters and their mysterious comings and goings. Clockmakers through the ages have also naturally been drawn to the challenge of finding a mechanical way to transcribe the regular movements of the oceans. For the first time, Christiaan van der Klaauw, a renowned specialist of astronomical and lunar timepieces, offers a precise visualisation of the mysterious influence of the moon on our planet. CHRISTIAAN VAN DER KLAAUW REAL MOON TIDES Above a rotating miniature moon, the Real Moon Tides carries a complication showing sea level tides in a way never before seen in a mechanical watch. Tides are the rise and fall of sea levels caused by the combined gravitational forces exerted by the moon, the sun, and the rotation of the earth. There are multiple types of sea tides. In most locations you will find the ‘principal lunar semi-diurnal’ sea tide. The period for one rise and fall of sea level is roughly 12 hours, 25 minutes and 14 seconds. Waves move up and down in a special window to make this beautiful phenomenon visible. At the 6 o’clock position a rotating 3-dimensional real moon – indicating the true moon phase – is shown. The moon rotates around the earth every 29.5305889 days. This handmade 3D miniature moon indicates the moon phase so accurately that it deviates only one day in 11,000 years. It is the most accurate 3D moon phase in the world ever incorporated in a mechanical watch.

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Metronomic moons PATRIMONY MOON PHASE AND RETROGRADE DATE by Vacheron Constantin Appearing on a pink or white gold disc, depending on the version, the moon gleams brightly against a star-studded backdrop, visible through an opening in the lower half of the dial. The age of the moon – meaning the number of days that have elapsed since the last new moon – can be read off a graduated scale around this opening. This lyrical complication is displayed with extreme accuracy in accordance with the real lunar cycle around the Earth, which lasts 29 days, 12 hours and 45 minutes. This sophisticated mechanism requires a one-day correction just once every 122 years. The retrograde date display appears in the upper half of the dial. A central hand moves forward in one-day increments. Once the month is completed, a retrograde system returns it instantly to its initial position opposite the number 1, whence it repeats the cycle. SLIMLINE MOONPHASE MANUFACTURE by Frédérique Constant The dial features central hour and minutes hands and a detailed moon phase and date counter complete with an illustration of the moon and stars. The balanced 42 mm case along with the uncrowded dial make telling time a simple pleasure. The automatic manufacture calibre FC-705 is developed, manufactured and assembled entirely in-house. The particularity of this movement is that all functions are adjustable via the crown – no added push button – for a smoother, more comfortable functionality.

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JULES COLLECTION REFERENCE 2340 by Urban JĂźrgensen Reference 2340 is crafted from white gold and, together with small seconds, date and power reserve, it displays a beautiful moon phase indication at 12 o'clock. The moon disc, rigorously made by hand, is crafted from mirror polished blued steel. Recesses for the stars are then punched or etched into the steel. Pure gold in powder form

is then deposited into the cavities for the stars and melted into place to form a solid gold inlay. Finally, the two solid gold moon discs with mirror polished surfaces are press-fitted into corresponding holes in the disc to complete the dual image of two sets of moons with stars. Consider that it takes more than 20 different operations to create a single Urban JĂźrgensen moon disc.

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RENDEZ-VOUS MOON 36MM by Jaeger-LeCoultre

Mother-of-pearl moons Mother-of-pearl, extracted from the briny deep and cut from moon-shaped shells, could almost have evolved specially to represent the moon on our watch dials, with its moirĂŠ pallor, its gently uneven surface and its exquisite soft glow.

The mother-of-pearl crescent of the RendezVous Moon bears a stylised hours arc distinguished by elongated numerals. It tops a disc affording a captivating vision of the heavenly canopy and occupies almost half the dial. The deep blue sky reveals the constellations and shines with a sprinkling of sparkling diamonds. The main highlights of this model, meaning the display of the passing hours and the moon complication, thus divide up the available territory in a spirit of perfect equity â&#x20AC;&#x201C; very much like the Rendez- Vous Moon as a whole, in which technical and aesthetic elements play an equally important part.

PANOMATIC LUNA by Glashütte Original A silvery moon appears on a pale blue motherof-pearl dial, and diamonds sparkle like stars in the sky. The iridescent, shimmering blue mother-of-pearl dial on the new PanoMatic Luna, the product of elaborate manual craftsmanship, is made by the manufacture’s own dial maker in Pforzheim. In order to achieve precisely the right colour, the back of the delicate white base material is coated with a layer of lacquer. The naturally textured variation of mother-of-pearl lends the dial additional character, making each watch utterly unique. The softly curving moon relief appears against a starry silver-coloured sky. Its curves emerge as the result of careful, skilfully executed diamond milling, which gives it greater visual depth. At once traditional and artistic, the display at 2 o’clock represents an authentic rarity in a mechanical ladies’ watch.

The PREMIER MOON PHASE 36MM by Harry Winston captures the serene beauty of the celestial sky, with a mesmerising moon that appears to travel across the horizon, before finding its way behind a white mother-of-pearl design, signifying the end of the lunar cycle. The lunar cycle, hours, minutes and date display are expertly powered by the HW5201 quartz movement exclusive to Harry Winston. The migration of the moon is visible through a crescent-shaped opening, while the hour and minutes are indicated by elegant bevelled hands. An open circle at 6 o’clock, adorned with a yellow gold border, reveals the date.

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Fabulous moons The eminent Finnish watchmaker Stepan Sarpaneva has created one of the most captivating moons in watchmaking. His world draws from childhood fairy tales of Nordic forests, Arctic nights and northern lights. Realising that his skeletonised dials were suggestive of forests, or a cloudy night sky, he told himself, “Putting the moon under this dial would allow you to actually ‘see’ the moon approaching its phases through the branches of a night-time forest, perhaps…” But why this enigmatic face with its strange half-smile, halfgrimace, which has become the company’s signature? “Everyone here in Finland floats around with an aura of slight melancholy. So a smiling moon was out of the question. Instead, I decided to give the moon an aura of aristocratic melancholy, with a bit of indecision to whether he is happy or sad in nature. The expression of the moon on the Korona K3 just is – the same as the people here.” KORONA KOSMOS by Stepan Sarpaneva Soprod A10 base calibre, modified and totally re-finished starting from the main plate, which is gilded after hand-finishing. The separate moon phase mechanism is designed and manufactured entirely in Helsinki and features a unique Sarpaneva innovation: correction via the crown, rather than a pusher on the side of the case.

Glowing moons GRAND LANGE 1 MOON PHASE «LUMEN» by A. Lange & Söhne Different from Lange’s previous moon-phase models with solid-gold lunar discs, the GRAND LANGE 1 MOON PHASE “Lumen” has a disc made of glass. Initially, its surface is treated with a patented coating process. In a second step, a laser is used to cut out 1164 stars and the moon. Thanks to the luminous compound behind the lunar disc, they shimmer with vibrant radiance. The large moon-phase display occupies a prominent position on the main dial. Once properly set, it only needs to be corrected by one day every 122.6 years.

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BRANDS

LUNAR ECLIPSE by Pierre Maillard

MEMORIS RED ECLIPSE

hen Jean-Marie Schaller decided to revive the fortunes of Louis Moinet, a great but largely forgotten To celebrate this 200th anniver19th century horologer, by adopting his name for sary with the pomp it deserves, the watch company he set up in 2008, he had no way of knowthe Ateliers Louis Moinet have designed an exceptional piece, ing that he was about to make an extraordinary discovery that the Memoris Red Eclipse, which would rewrite the history of watchmaking. When he bought Louis is dedicated entirely to the moon. Moinet’s “counter of thirds” at auction – a stunning piece made The first version of the Memoris, in 1816, which measures time to the 1/60th of a second, beats at 216,000 vibrations per hour and features a zero reset function – described as a watch-chronograph rather than a chronographit gradually dawned on him that he had in his hands the world’s watch, was introduced last year as the “first didactic chronofirst chronograph, and that no one knew about it but him. graph in watch history,” as Jean-Marie Schaller likes to point out. Something else he knew was that Louis Moinet had always had Indeed, unlike other chronographs, the chronograph mechanism a strong interest in astronomy. In his 1848 Traité d’Horlogerie, is front and centre of the watch, occupying almost all of the dial real estate. Consequently, all of its inner Louis Moinet declared: “Knowledge of the workings are proudly exposed to view, includprincipal laws of the physical and mathematical sciences is by no means ungermane to the ing the column wheel at 12 o’clock. Neither study of fine watchmaking, that is to say, in a skeleton movement nor an add-on module, the maritime and astronomical domains.” this movement is constructed back-to-front: the hour mechanism of the automatic calibre Jean-Marie Schaller shared this fascination, is visible on the back of the watch, behind the and he has indulged his passion on many occasions, by incorporating fragments of rare Louis Moinet’s clock for Marechal Murat cut-out baseplate. meteorites from distant worlds into his watches, by numerous The Memoris Red Eclipse is the most prestigious version of references to astronomy, such as in the Astralis collection, and this anniversary watch-chronograph. Its case is entirely handengraved with motifs on the theme of the lunar eclipse, using by creating an actual planetarium: the Meteoris Solar System. This planetarium provides a three-dimensional representation a specific technique and a style typically seen on hunting rifles. of our solar system, with moving models of Mercury, Venus, The movement is entirely hand-finished, including the meticuEarth, the moon, Mars, Jupiter, Saturn, Uranus, Neptune and lously chamfered stars on the midnight blue background, which Pluto orbiting the sun. The planetarium also comes with four is executed with a traditional rose engine lathe and fixed burin. tourbillon watches, each showcasing an exceptional meteor- The result is a sky studded with stars that catch the light indeite, from Mars, a comet, an asteroid and the moon. pendently as the wearer moves his wrist. Astronomy was one of Louis Moinet’s consuming passions. The rotor with its exquisite guilloché finish is visible through He made his “counter of thirds” – a chronograph capable of the case back, magnificently decorated with a moon in gold measuring the 60th part of a second, but not strictly speaking leaf and red enamel to capture the characteristic hue rea “watch” since it doesn’t give the current hour and minute – vealed when it is eclipsed by the earth. primarily to refine his astronomical calculations, and to achieve In the words of Jean-Marie Schaller: “Red Eclipse is the quina previously unheard-of level of precision. When it was created, tessential expression of our Memoris collection. The signifiexactly 200 years ago, this counter of thirds was almost certainly cance of the anniversary, its limited run of just 12 pieces and one of the most advanced scientific instruments of its time. And its high level of finish ensure that it will be of interest to the then, after the death of Louis Moinet, it disappeared from sight. most discerning collectors.” p

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MEMORIS RED ECLIPSE

BRANDS

WHEN SWISS WATCHMAKERS AND ITALIAN DESIGNERS MEET The surprising collaboration between Bovet and the Turinese designers at Pininfarina delivers a new opus: the Ottantasei. A fourth tourbillon for which the guiding principle was: lighter, lighter, lighter!

mance.” For the heir to the Pininfarina dynasty, any object that leaves his workshop has to be transformed into an “art object”, whatever the field. And it is here, perhaps, that the ambitions of Paolo Pininfarina and Pascal Raffy coincide.

INSPIRED BY THE COCKPIT OF AN AIRCRAFT

by Serge Maillard

n the face of it, the alliance between the historic, neoclassical watch brand Bovet Fleurier of Val-de-Travers, relaunched by Pascal Raffy, and the Italian designer Pininfarina from the region of Turin, famous for its designs for Alfa Romeo and Ferrari, as well for buildings, boats, pens and even coffee machines, appeared somewhat unnatural. And yet the same “family” spirit seems to reign in both these companies, personified on the one hand in the person of Pascal Raffy and on the other in Paolo Pininfarina, who represents the third generation of the Italian company – and who is determined to maintain this spirit despite the takeover of his company, currently in progress, by the Indian group, Mahindra. The fruit of this unusual collaboration is a series of round, ultra-designer sports watches, in style both technical and fluid at the same time, some of them including the Amadeo® convertible system and the futuristic Pininfarina look which sticks out like a sore thumb in the horological world of Valde-Travers. Six have so far seen the light of day – Ottanta, Ottantadue, Ottantatre, Cambiano, Sergio, and the most recent addition to the family, Ottantasei. “Today, we’re launching a fourth tourbillon which is not an evolution but something completely new for both of us,” states Paolo Pininfarina at the brand’s headquarters in Cambiano. The challenge was how to combine lightness and robustness. “There’s a difference in scale but many common aspects between automotive design and watchmaking, notably the same attention to finish and a quest for perfor-

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“We are artisans of time, we don’t think in industrial terms,” affirms Pascal Raffy. “We’re both defenders of tradition, we respect the heritage from which we make a living today and we’re paving the way to the future. The key to success in the luxury sector is to have a clear identity, limited series and genuine craftsmanship. But good taste too, not showiness!” For him, Ottantasei is the fruit of a certain maturity. This fourth tourbillon, with its ten-day power reserve, follows the codes of the collection but is built around a single word: “light”, in its dual sense of luminosity and weightlessness. We find the same guiding principle in, among other things, the four large sapphire crystals which occupy the main surfaces of the case, and the system of casing-up via the back, which gives an even greater sense of transparency and lightness. The net weight of the metal for the entire case is 51.66g for the gold and 15.54g for the titanium version... Driving organ (and its power reserve indicator), display, regulating organ: three distinct circles which define the basic functions of the movement – again, nothing could be clearer. The characteristics of the single barrel spring is extraordinary: 1.04 meters long and a developed force of 1kg, providing 240 hours of energy. “Our chief inspiration for the case design was the cockpit of an aircraft, because it’s a space which demands high visibility for the pilot, who has to have everything under control,” says Hugo Cicaré, a designer at Pininfarina. “We’d already taken inspiration from that in the past for automotive designs.” It took two years to develop this timepiece. The retail price is CHF 165,000 for the titanium model and CHF 185,000 for the red gold model.

OTTANTASEI

OPEN BRIEF, PRECISE LINES “When we work with the designers at Pininfarina, the baseline is that we never tell them that what they’re suggesting is impossible,” explains Christophe Persoz of Bovet. “We’re open to everything. We try out things and often, they result in innovative solutions. They’re designers by profession anyway, they’re already used to working with technical constraints in automotive design. And what is really interesting is the contrast between tradition and the contemporary look, which has given rise to a pure, high-tech dial. What’s more, it was important to have symmetry between the design elements of the watch, as with all our timepieces. Painstaking care is taken with the details. Lastly, the watch is ultra-lightweight: the titanium version weighs 66 grams and the red gold one 113 grammes. And the movement itself is lighter than the rubber strap!”

The Italian brand had already taken an interest in Swiss watchmaking ten years before its partnership with Bovet. “Our partner explained to me that they made the watches themselves: we just had to choose which models to market. But that came to nothing, it was a simplistic idea, we just chose between A or B, we didn’t build anything together,” Paolo Pininfarina recalls. “What fascinates me with Bovet is the attention to detail down to the minutest scale. We design something and then we reduce it all proportionally!” The goal of this project was not to boost sales at all costs, Pascal Raffy insists, even if the collection has struck a chord, especially with Asian and American collectors. The prime goal was to boost Bovet’s respectability: “That sends out the signal that we can innovate while sticking to tradition. And you can’t put a price on that.” p

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2 7 t h S A L O N I N T E R N AT I O N A L D E L A H A U T E H O R L O G E R I E G E N E VA FROM 16 TO 20 JANUARY 2017 OPEN TO THE PUBLIC ON FRIDAY 20 JANUARY Prior registration required via sihh.org

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SPOTLIGHT

CASIO G-SHOCK GULFMASTER:

MAKING WAVES

The latest G-Shock Gulfmaster takes Casioâ&#x20AC;&#x2122;s legendary unbreakable watch into the toughest ocean environments, with upgraded sensor technology to ensure a rapid response to changing conditions in marine rescue situations.

At Baselworld earlier this year, Casio unveiled the latest iteration of its iconic G-Shock range, the Master of G Gulfmaster GWN-Q1000, which brings extreme ocean capabilities to a series that has already proven its toughness in the harshest environments to be found on land or in the air. Its sophisticated environmental sensors provide fast, accurate readings of rapidly changing environmental indicators, making it the ideal companion for professionals working in challenging conditions at sea. The Gulfmasterâ&#x20AC;&#x2122;s main innovation lies in its quad sensors, which represent a significant upgrade to the Triple

Sensor Version 3 of previous models. A water depth sensor has been added to the pressure, temperature and compass bearing sensors, which combine to provide vital information to coast guard officers and ocean rescue operatives. The data from these sensors is accessed via five operating modes (barometer, compass, altimeter, temperature, depth), indicated on an inset dial at 5 oâ&#x20AC;&#x2122;clock, which is governed by a dual coil motor to supply the high energy required by the retrograde display. An LCD in the upper half of the dial gives a more detailed readout.

A CLOSER LOOK AT THE QUAD SENSORS , THE ORIGIN OF THAT MERIT THE SPECIAL LETTER “Q” IN THE MODEL NAME

ADDITIONAL FUNCTIONS

The Casio Gulfmaster GWN-Q1000 is the first Gulfmaster to feature a sapphire crystal, which ensures that readability is not compromised by scratches or abrasions on the The AIR PRESSURE sensor at 9 o’clock provides infor- dial. Low-light legibility is further guaranteed by twin LED mation for the altimeter and barometer modes. The al- lights that illuminate the LCD screen and the dial, with up timeter measures altitudes from -700 m to 10,000 m, as well to 3 seconds of “afterglow” after the button is released, and as providing an altitude change indicator. The barometer is phosphorescent coatings to the analogue hands and indices. designed to inform the wearer of sudden fluctuations in at- Another feature that is new to this Gulfmaster is the mospheric pressure, which could warn of dangerous chang- time of sunrise and sunset. Combined with the tide data es in weather conditions. A tendency displayed on the inset mode dial at 5 graph remembers readings from the o’clock, and the information relayed previous 20 or 5 hours, and an arrow by the quad sensors, the user is guarsignals significant pressure changes. anteed a comprehensive picture of The minute hand is transformed into prevailing conditions. a differential indicator, and the rotating This wealth of technical data is backed stainless steel bezel can be called into up by the familiar supporting cast of Carbon-fibre reinforced resin case play to provide a handy reference. additional functions common to all The TEMPERATURE sensor monithe Master of G G-Shock watches, tors air and water temperatures from including moon age, radio-controlled -10° to +60° C. time calibration (up to six times a day), A MAGNETIC sensor transforms the world time for 31 time zones, daylight watch into a compass, enabling the user saving, stopwatch, countdown timer, to calculate the wind or tide direction five daily alarms, power saving, calenby observing the second hand, which dar and battery level indicator. Casio’s Indicator bezel points to magnetic North. The autopioneering high capacity Tough Solar matic horizontal correction function system means that a flat battery is ensures that an accurate reading is unlikely ever to be a concern, but the possible even when conditions unwatch will nevertheless continue to derfoot are unstable, such as aboard operate for up to 6 months without a rocking ship or underwater, when exposure to a light source. it would be impossible to align a conGiven that the G-Shock Gulfmaster Button guard structure ventional compass with the horizon. is designed to be supremely legible in The LCD gives the bearing in degrees and as one of the six- the most demanding outdoor conditions, it should come teen traditional compass points (N, NNE, NE, ENE, etc.). as no surprise that it’s big, measuring 48 mm x 57 mm, But where the Gulfmaster really shows its ocean-going with a depth of 17 mm. Nevertheless, the soft and flexcredentials is in the fourth and newest sensor – a WATER ible polyurethane-covered band, which conceals a tough PRESSURE sensor, located at 12 o’clock on the rear of the resin and metal inner core, makes it comfortable to wear. watch case, where a series of slits in the urethane strap and Of course, all of this comes with the G-Shock’s “absolute back cushioning cover provide the necessary access. The toughness” guarantee of resistance to electricity, gravity, low sensor gives water depth information up to 50 m, on both temperatures, vibration, water and shocks, with superior the LCD screen and the second hand, along with data on the all-round ruggedness. The carbon fibre-reinforced resin case time spent underwater and the maximum depth reached. combines high strength and rigidity with superior water reAll of this information can be recorded using the Time Stamp sistance, a must for a watch designed to cope with extreme function, accessed by a button on the case band at 4 o’clock, conditions at sea. The buttons and pushers are fitted with which memorises up to 40 snapshots of current conditions, a pipes and a triple gasket system, which offers enhanced wafeature that could be invaluable for marine rescue operations. ter protection along with glitch-free operation. p

For more detail information, please visit: g-shock.eu (Europe) or world.g-shock.com (International)

STRAPS

SHAKE OFF THE SHACKLES Ladies’ watch straps are fed up of playing the weaker sex. They’re back with a vengeance, and with designs, materials and concepts – that have potentially far-reaching consequences. 00 | BRACELETS | europa star

by Laurence Janin, founder of the blog Laur’loge, www.laurloge.com

here watch straps are concerned, the past few decades have been dominated by the Holy Trinity of leather, steel and rubber, the latter sometimes replaced by satin, evoking frocks and ballerina shoes to emphasise a timepiece’s feminine side. Rare were the watchmakers who showed any interest in this anatomical part of the watch: all the attention was focused on the face (dial) and heart (movement). And so our interest was keen when we discovered the XS version of the J12, cleverly unveiled by Chanel as a set of single watch straps, ranging from supple to rigid. One model has the miniwatch sit on a cuff of precious gems and metals, another on a wrist brace, gladiator-style, or else on a ring, and even on a leather fingerless glove with Lagerfeld-ish connotations. Made by the artisans of Paraffection, Chanel’s arts and crafts arm, these designs are a clever, diachronic collusion between the company’s haute couture and watchmaking domains.

with gold thread. Soon, watch straps extended into stretch fabric and dabbled in enamel. They entwined the wrist in a snake-like embrace. And around 1950, the “marquise” wristwatch broke down the barrier between show watch and jewellery in the prettiest way possible. With the advent of mass production, timepieces took on a functional role and creative watchstraps became the exception, reserved for jewellers. The development we are seeing today robs the watch of its primary function, but grants it another, and no insignificant one: that of expressing status, personality, singularity. The young brands twigged this, turning a simple, tricolour fabric strap into a remedy – and a cheap one at that – for a moribund market. It heralded a more casual style. Now with watch straps anything goes, all the better to attract a younger customer base. Floral, tropical and plant motifs abound (Laruze), wax and cashmere prints are burgeoning (Charlie Watch, Louis Pion); arty is also in on the act (Komono x Magritte). And flannel – the number one choice for fashion stylists in the 2016/17 autumn collection – is already jostling for a place next to nylon and cotton straps.

WHEN WATCH STRAPS WERE NOT WRIST STRAPS

FROM FOSSIL TO POIRAY

Indeed, they inevitably call to mind the exquisite horological objects which, before the armlet espoused the wrist of the determinedly single Elizabeth I of England, were worn on the finger or wherever else was felt fitting. Then, from the period of the French Consulate and the Empire onward, fashion shortened sleeves and watches adorned naked arms. That marked the advent of jewellery watch straps, the use of fabric, reps or shot silk, while in 1810, Abraham Louis Breguet dreamed up for the queen of Naples a repeater watch mounted on a strap of hair interwoven

The watch strap has at last become part of the story. The same can be said of the collaboration between Fossil and Me to We, a young company selling socially responsible products. It has given rise to watch straps that are “lovingly hand-made by ‘Mamas’, women artisans of Kenya, who use art forms handed down from mother to daughter for generations,” as the brand’s blurb says. But sublime as they may be, creators of desirability, watch straps alone cannot bolster a brand. Remember the furore created at the last SIHH by Les Exceptionnelles, watch straps designed

to be an extension of the personality of three modern women, whose every move they accompanied with their long tassels? Are these variations on the theme of the Promesse collection now just dead letters? Unfortunately, we were unable to gain any further information from Baume & Mercier. By contrast, at Poiray watch straps are part of a real strategy. The exercise is repeated over and over again – a stainless steel strap with drops of paint or an embroidered ribbon with pompons, Brazilian friendship bracelet-style. Even better is the square silk scarf which you can knot “any way you like” around the wrist, in complete osmosis with a counter-culture in which attitude replaces style. The Paris-based brand offers inspiration without dictation while creating scope for personal expression. The buckle system of Ma Première, as the company’s co-CEO Manuel Mallen explains, means you can take the tie of your nearest and dearest or a piece of her wedding dress to create your own, symbol-steeped strap. But one question remains. If watches for women become assimilated with fashion accessories, might they not lose something of the soul and timelessness that haute horlogerie is all about? To avoid this pitfall, it would be a good thing if a luxury manufacture were to move into this space and deploy its know-how there. At Vacheron Constantin, we were told that, given the creativity of the company, they could well imagine the arts and crafts taking over watch straps (for women’s models), just as they have done with the dial and case. More in the next exciting instalment. Because the watch strap story is far from over. p

* Thank you to Dominique Fléchon, an expert with Fondation de la Haute Horlogerie, for his kind contribution to the historical part of this article.

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WHEN THE STRAP SETS OFF THE WATCH Wristwatch straps are usually seen as an accessory, a simple extension of the watch. With its new J12 XS, Chanel turns the idea around. What you notice first of all is the strap, or rather the cuff or wrist brace on which it is placed. As its name suggests, the J12 XS is extremely tiny: 19mm. But placed on its wrist brace or on a single or multiple cuff, it becomes strong. It is both extremely feminine and extremely sporty. As Chanel makes it so prettily say, â&#x20AC;&#x153;I do not give the time, I offer it to those who dare to gaze on me.â&#x20AC;? p (PM)

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SOME OF THE CRUCIAL STAGES IN THE PRODUCTION OF A HERMÈS WRISTWATCH STRAP

SADDLER TURNED WATCHMAKER

The leather selection process is rigorous. Wrinkles, veins and scratches are strictly avoided. The two pieces must have the same shade and scales, for example, and must be of the same shape and size. The leather, however, is still thick at this point. It is now dressed and tapered. The pre-cut straps are flattened to paperthickness at their outer edges. A strip of Viledon, an especially strong fabric, is placed as a lining between the upper and lower sections of strap, and the whole assembly is glued together. Each worker will work on a whole bracelet.

ermès is a rare example – the only one, as far as we know – of a saddler turned watchmaker (among other things). In fact, it is through leather that Hermès came to watchmaking, as illustrated by its first watch, made in the early 1920s – a small pocket watch encased in leather and mounted on a strap. These origins explain why for Hermès, leather does far more than simply “complement” a watch, but is integrated, lock, stock and barrel, into the watchmaking process. A leather workshop, the only one of its kind, is part and parcel of the La Montre Hermès atelier in Bienne. There, specialised craftsmen and women work on the leathers specific to the company, matching them to each timepiece: goat, calf, buffalo, ostrich or alligator, the same skins – such as the robust Barenia or the Epsom, recognisable by its texture – and the same colours as those that go to make the famous Hermès bags. p (PM)

Act I involves marking or tracing the sewing line and the stitching points with a pair of compasses. Using a single flaxen thread and two hand-held needles, the artisan creates the classic saddle stitch by a complex dance of the needles into each hole with an elegant finishing technique. The stiches are gently hammered into place on both sides to avoid them being exposed to wear and tear.

Act II concerns the look of the strap, in particular the edges, which first need rubbing and sandpapering. With great care, the leather worker now applies a dye, smoothing it out and then polishing. Each step is repeated until the look is perfectly uniform and the strap looks as if it came from a single piece of leather. A furrow pressed between the sewing line and the edge of the leather makes the strap suppler, while at the same time underscoring its thickness.

During Act III, the two loops that will hold the tongue part of the strap need to be made. One will be fixed, the other mobile. To do this, the artisan cuts two thin strips, pares down the edges to form a loop of the same thickness where the edges are joined. The same steps as with the strap’s edge now need to be performed, albeit on a smaller scale: gluing, marking for stitching, sanding, dyeing, smoothing out, and polishing over and over. The most intricate manoeuvre is fixing the one loop to the strap with the same saddle stitch. The finishing stitch, invisible to the owner of the strap, forms an “H”.

A re-edited, re-interpreted version of the “porte-oignon” watch by Hermès, dating from the 1920s

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Cape Cod GM double wrap-around smooth orange calf strap

all about

WATCH STRAPS While all eyes are usually on the dial, the least-considered component of a watch is a crucial part of the timepiece and can call for no fewer than 80 manufacturing stages. We present what watch straps are all about and a selection of the market players. by InĂ¨s Aloui and Serge Maillard

ike watchmakers and all the watchmaker suppliers, watch strap manufacturers are being directly hit by the consequences of the crisis currently affecting the industry. Fewer watches sold by the brands, unsold stock, a reduction in the number of watches produced and, consequently, fewer orders for watch straps. Locked in a vicious circle, strap producers are strapped. But that is not the only challenge facing them right now: another thorny problem for the players in the watch strap industry is the ever more complex legislation, such as the REACH convention (standing for Registration, Evaluation, Authorisation and Restriction of Chemicals). Imposed by the European Union since 2007 to protect consumer health and the environment, this includes standards that often prove costly to apply for watch strap manufacturers. For example, the leather that goes into watch straps must undergo specific tests to ensure it does not exceed a certain threshold of any chemical substance which is potentially harmful to consumers. This is impacting leather tanning and processing and can affect quality, much to the dismay of the manufacturers.

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Yet it is true that even before REACH, straps were already subjected to numerous tests â&#x20AC;&#x201C;resistance to UV, dry and wet rubbing, dirt and even twisting and stretching, to cite a few. It is difficult to determine exactly how much these tests cost, but off the record some brands are talking about at least 1,000 euros for a simple test, which does not even guarantee that the whole batch is compliant. Another convention with which strap manufacturers have to comply is the Convention on International Trade of Endangered Species (CITES). The aim of this agreement is to ensure that trade in wild plants and animals does not threaten the survival of the species. It lists nearly 34,000 plant and animal species. CITES provides a certificate proving that an animal was hunted legally and not poached. Watchmakers are demanding this valuable certification ever more frequently in a bid to control the origin of all the materials they use. One African crocodile species, Niloticus, which is highly valued for watch straps, made the headlines a few years ago following a report showing its violent capture and killing, denting the image of the major watchmaker groups. Where alligator skin is concerned, in the interests of their image the brands tend to source their supplies from the United States, where the regulation on trade limits potential excesses. Consequently, manufacturers are having to juggle between legal obligations, brand demands and difficult market conditions. Europa Star met some of these unknown artisans who have been doing vital work for the watchmaking industry and its millions of customers ever since humans decided to take their watches out of their pockets and wrap them around their wrists. p

www.abraitalia.it

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

portraits of

WATCH STRAP

MAKERS CORIUM DÉVELOPPEMENT

FOREVER INNOVATING

Founded in 2006, Corium Développement specialises in straps for luxury watches. With the aid of 3D software, it produces watch strap inserts (leather-covered metal or plastic parts that fit between the case lugs) and the leather elements that enclose the strap. In 2009, Corium Développement developed a new technology, called Corioflex, which prolongs this insert with what they refer to as a “supple soul”, which gives the strap its shape. In another innovation, in 2012 the company developed Corioform, a process for creating simple or complex relief designs on the leather. The principle behind this process is to create raised motifs or to emboss the leather while ensuring that it keeps it shape throughout its life by backfilling. “Our technologies are a guarantee of long life, suppleness and shape for straps,” underscores Anthony Marteau of Corium Développement. The company head also explains that he sometimes

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goes to the tanneries to check out the origin of the leather. Because in times of crisis, pressure on prices can affect leather quality. Depending on demand, the tanners may source their supplies from different countries, which can impact not only quality, but also the price.

FLEURUS

A FAMILY STORY Fleurus was founded in 1942 by Pierre Laval in the Cantal region of France. It was subsequently run by his son, Yves Laval, and is now managed by his three grandchildren, Cécile, Frédérique and Pierre Laval. Specialising in the produc-

tion of leather watch straps, the company has branched out into luxury leather goods, the finishing of leather articles, and silver jewellery. The brand has several production sites, in France (around 450 employees) and in Madagascar (around 600 employees), where it has been present for more than 20 years. The watch straps are produced in France or Madagascar, depending on the customer’s demands. “We are able to develop both complex projects that demand enormous precision in our French ateliers for our luxury customers, and high-volume projects in our Madagascar atelier,” explains Frédérique Laval. “We manufacture more than a million bracelets a year.”

Vicenza, Italia, tel. +39 0444 555096, salin.it

Gold watch bracelets

For over 60 years Salin has produced absolutely fantastic watch bracelets with a very unique and everlasting style. Salin has always stayed true, and up to date, even with the shifting of fashion trends. Salin has, and always will, reinforce itself as a style icon. ITALIA

The strap components are made in Europe, primarily France and Italy. “All the exotic leathers we use comply with CITES requirements.” Fleurus also offers customers the choice of chrome-free tanned leather made with solvent-free glue.

HIRSCH

A GIANT AMONG STRAP MAKERS Based in Klagenfurt in Austria, Hirsch can boast 250 years of experience in leather-working, 70 of them in manufacturing watch straps. Offering a broad selection of flexible products in leather or caoutchouc, today it employs a workforce of more than 600 and supplies straps both to watch brands and retailers (around 16,000!) around the world. “We’re acknowledged first and foremost for our capacity to innovate. For example, the Performance Collection offers a combination of leather and caoutchouc, which is a first,” explains Robert Koban, who heads up Brand Management at Hirsch. The brand won a Red Dot Award last year. “We file patents, but we’re often copied!” Another example of innovation: its combination of stones and caoutchouc. And at Hirsch, the future is already here, with the development of built-in NFC chips that will let you – for example – transact payments with your watch strap! Hans Hirsch patented a way of assembling the leather upper and underside back in 1955 which has entered the tanning and leather goods annals under the name of “the Hirsch Rembordé technique”. The brand celebrated its 250 millionth watch strap five years ago. As for the types of leather, alligator ranks first, just before calf. ISO-certified and a member of the British Leather Council, the brand also offers rarer products. The guarantees range from one year for caoutchouc and up to 30 months for Performance Collection. Hirsch is one of the rare truly global play-

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ers in the watch strap industry, with a presence in 85 countries. So how is business in 2016? “On the one hand, we’re noting a slowdown among watchmaker brands, but on the other we’re seeing slight growth on the watch retailer side. We operate on several fronts and can always attract new customers, thanks in particular to our innovations. For 2016, we’re anticipating stable results compared with last year.”

KUKI

50 YEARS OF WATCH STRAPS THAT ARE “MADE IN SLOVENIA” The Slovenia brand Kuki has been making watch straps since 1963. Founded by Franc Drolc and his wife Alenka, this small business began its international development when Slovenia gained independence. In 1991, the brand made its first appearance at Baselworld. Incidentally, the brand owes its name to Matjaz Drolc, the son of Franc, who founded Kuki: “It was my nickname when I was a kid, because of my huge eyes,” jokes the man who took over the business from his parents, along with brother Gregor. Today, Kuki exports its know-how to more than 20 countries. Known for its Strong & Flex line of products, the brand sells watch straps in stainless steel and ultra-hard-wearing leather. Their secret: leather reinforced by a layer of aramid and rubber, making it resistant to just about everything. What is more, two layers of leather are reinforced by a rubber strip running along their entire length, which determines the design and flexibility of the watch strap. The most vulnerable areas of the strap are further reinforced by very fine, gold-plated “stoppers”. “Nobody else is capable of supplying this kind of strength, we’re unique in the marketplace. In fact, we’ve been pressured several times at our factory and abroad. Our know-how creates jealousies…” says Matjaz Drolc.

LIC

HOW TO COPE WITH EXCESSIVE REGULATIONS Founded in 1971 by Yves Thomas, a Frenchman living in Belgium, Leather International Cuir (LIC) is a Belgian artisanal, family brand. Early on in his career, Yves Thomas worked for Camille Fournet, a major Paris player on the watch strap scene, where he was able to hone his skills. He then decided to move to Belgium to develop his know-how, before setting up his own business. When he died some ten years ago, his wife Willianne ThomasGenillier took over the business. Her son and nephew recently joined it. LIC is present first and foremost in the Benelux countries, where it works with most of the jewellers in the region. Starting in 1986, LIC began to develop its

export market, designing straps primarily for Swiss and French watchmaker groups. Today, the company employs 25 people. Resolutely artisanal, LIC makes its straps exclusively in Belgium. “We’ve been around for 45 years already, which is quite a long time for a family business, and I don’t want to delocalise production,” Willianne Thomas-Genillier explains. “We buy our leather mainly in France and Italy. Also, I’m very concerned with animal wel-

fare, even though checking that out with suppliers is complicated. I only buy leathers that are CITES-certified.” Even so, the REACH regulations have turned their way of working upside-down. “With these restrictive standards and tests, the leather is so abraded it doesn’t look like leather any more and the end product sometimes has a dead look about it. The major groups oblige us to comply with regulations, but the consumers pay scant attention to that: what they want first of all is a well-crafted, aesthetic product on their wrist. I’ve succeeded in setting certain limits on the brands to conserve my know-how and specific style.”

MORELLATO

FROM STRAPS TO JEWELS Morellato has an atypical business history, which began in Italy back in the 1930s. Giulio Morellato founded his company, specialising in leather watch straps, in Venice. At that time, watchmaking was enjoying a boom and the small company

gradually conquered all of Italy. It has diversified since then: from the noughties onward, Morellato began also to focus on the production of jewellery and watches. In 2007, the group acquired Diffusione Italiana Preziosi, the company behind the Bluespirit store chain, thereby enlarging its footprint in the jewellery sector. Today, foreign sales represent nearly 45% of the company’s total turnover. Morellato describes itself as an artisan company: it uses little machinery and all the major work is done manually. In Italy, 195 employees process leather for the major watchmaker groups, producing 150,000 to 180,000 straps a year. But for the past twenty years Morellato has also owned a workshop in China, geared to volume: “Our China production of around two million items a year is strategic. But the real high-end is made in Italy. For the Swiss manufactures, that is crucial,” explains the brand’s director, Andrea Gemetto.

PROMOTION SPA

DISCREET AND ECOLOGICAL Promotion Spa was founded in 1978 near to Vicenza in Italy. This specialist manufacturer of metal watch straps, clasps and buckles cultivates discretion. To ensure the quality of its products, Promotion Spa is careful to comply with quality standards and has redesigned its production system from start to finish. Primarily to counter the allergenic hazards of certain components, Promotion Spa uses low-sulphur steel (which is more resistant to corrosion but more difficult to machine and requiring special machinery). From a legal point of view, it is the EN1811+A1 standard combined with Annex XVII of REACH that governs the release of nickel onto metal items in direct and prolonged contact with the human body. The ecologically-minded brand consequently uses non-toxic materials, out of respect for the environment. u

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SIBRA

FROM FRANCE TO INDIA

PROTEXO

THE WATCH STRAP FROM GENEVA Founded between the wars, Bracelets Protexo SA has belonged to the Ducimetière family since 1953. The second generation is currently in the throes of handing over the reins of the business to the third. The latter employs around fifteen people in its Geneva premises. Bracelets Protexo SA turns out some 50,000 watch straps for the biggest watch brands. All production is in Switzerland. “It isn’t easy for us to maintain this business with a 100% Geneva-based manufacture, but we’ll continue come what may. It takes courage to do it, but we’re proud that we can still offer this kind of service, while many of our competitors are exporting their know-how!” explains sales manager Jérôme Ducimetière. Here, the ‘Swiss made’ claim is no idle one: “Whatever the quantity, our products, which can require up to 80 operations per strap, are made 100% here in Geneva.” While underlining the necessity of the CITES regulations, Jérôme Ducimetière points out that they pose huge deadline and logistics problems in numerous countries. But the manager puts things in perspective: “Luckily, our customers are looking for 100% Swiss products, be-

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cause they know that in a Swiss-made watch the end customer expects all the components to be genuinely Swiss.”

SALIN

SPECIALITY – GOLD It was in the historic centre of Vicenza, in Italy, that Salin was founded in 1953. Today, the company can boast a 3,000m² production facility operated by some sixty employees. The company’s story begins with Romeo Ermenegildo Salin, who decided to try his hand at watch bracelet making and opened a tiny craft factory. His speciality: goldsmithing. During the 1970s, Salin made not only bracelets, but also cases in gold. Having realised how demanding Swiss customers were, he needed a product that equalled that of the bracelets in quality. So it was that the most famous Swiss watch brands came to place their orders for gold watch cases in the family’s hands. “We constantly check the origin of the gold and we don’t count the cost,” sales manager Ernesto Zigliotto assures us. Salin uses different techniques to process the gold and produce the bracelets – featuring Polonaise links, fancy flat mesh, gold strip and close links. “Our customers demand speed and flexibility. Since everything is made in-house in Italy, it’s easier for us to respond to their demands.”

Founded in 1991 in Besançon by Gérard Simon, Sibra’s production operations are twofold. The first specialises in high-end goods from its Franche-Comté base, producing exotic leathers primarily. The second is geared to volume and is based in India. However, these two entities are distinct – no “semi-finishing” (design in India, assembly in France) here. Sibra is determined to be transparent about its Indian factory, which employs around 600 people. “This is our own structure, not a subcontractor’s: that means we know who works there and we comply with Indian legislation,” explains Gérard Simon. “ We ask for a dental X-ray – the only real proof of a person’s age – before recruiting anyone. What’s more, our different customers regularly carry out surprise audits.” In Besançon, some twenty employees are busy making watch straps. As a general rule, customers do not ask to have the “Made in France” mark inscribed on them. Sibra, which is hoping to get a stronger foothold in the Swiss market, is counting first and foremost on the new Swissness legislation due to come into force on 1 January 2017. “Some brands will be looking for ways of protecting their profit margins to some extent, notably by sourcing cheap components which are not affected by the new legislation.”

SIS

OUT OF THE ASHES SIS Group is now in its second life. In 1983, “SARL Supercuir”, a company specialising in wristwatch straps, was created in a tiny house in the middle of a village in the mountains of Franche-Comté, not far from neighbouring Switzerland. The company developed internationally and opened production facilities in Mauritius and in China. But in 1997, its key ac-

count, at that time representing around 70% of its business, broke off its partnership with Supercuir. The following year, the company faced liquidation. But the story does not end there: a new company emerged when the shares were bought up by the management and employees! SIS was born, the name made up of the initials of the company’s former business sectors: the “S” of Supercuir for the production of watch straps and small leather goods, the “I” of IWD for the distribution of leather watch straps, and the “S” of Softline Box for its luxury leather goods. Today, SIS has five production sites in Franche-Comté, one in Madagascar and one in China and produces a total of some one million straps a year. “When we rose out of the ashes with the name of SIS, there were just over 60 of us. Today, the group has a workforce of 700,” says Europe and Asia sales director Jean-Yves Chauvy. The test phases are important for compliance with European (REACH) and American (FDA) standards. “They’re conducted in two stages. First of all, we test all the strap components – the material, the glue and the thread – separately. Then we test them after the strap is assembled. We take samples from every batch. Some ten straps are taken and crushed at different stages of assembly: the laboratories test the powder. They can then identify the suspect material should a problem arise. There are internal and external tests; we’re not chemists ourselves so we call on certified laboratories that are recognised by Richemont, LVMH or the Swatch Group.” The company is feeling the effects of the crisis: “We’re being asked to make an effort on price, but above all to be responsive. Before, watchmakers sold the same

product all over the world. Now, they design different products for different countries and in ever smaller series.”

ZUCCOLO ROCHET

THE REPLACEMENT WATCH STRAP French company Zuccolo Rochet already has a long and rich history of watch strap making. In 1904, Joseph Rochet and Edmond Zuccolo decided to team up and establish a company in Geneva. They invented the first extendable watch straps, and were even rewarded with an innovation prize in Geneva in 1917 for their work. During the First World War, Switzerland was subject to a blockade and the brand was forced to move to Annecy. In 1946, Edmond Zuccolo left the company and the daughter of Joseph Rochet, Georgette, brought her husband, Louis Brunet, into the firm. In the 1950s, the brand created its famous Grands Fonds 300M watch specifically for professional divers – incidentally, it was part of the equipment of the French Navy from 1963 to 1974. Since 2004, Charles and Georges Brunet have been at the helm of the company, in line with family tradition. The company does not supply brands directly: it specialises in replacement straps for thousands of chains and retail outlets around the world. Paradoxically, this positioning is an asset at a time when watch sales are falling, underscores Georges Brunet: “Watch-owners tend to keep their watches for longer and consequently replace their worn straps more regularly.” The company head emphasises the ecological effort that goes into their production. “To offset the virtually non-existent recycling, we have created biodegradable straps with our BioConfort range. It also reduces allergy risks. The titanium used to make the straps contains no chrome and is 100% biocompatible. We

BOUCLEDOR WHAT’S IN A NAME? Just like watch straps, the clasp also plays a vital but sometimes forgotten role and is a critical component for the industry. In Switzerland, four independent subcontractors produce buckles and clasps (the major groups also have their own strap, buckle and clasp production units). Boucledor is one such subcontractor. Founded in 1965 in Meyrin, the company is a supplier to the main Swiss watchmaker brands. Its products are 100% Swiss-made, with “zero foreign subcontractors” as Boucledor’s deputy CEO Claude Durand likes to point out. Personalisation, innovation and exclusive models – these are the brand’s leitmotifs. Despite the crisis, Claude Durand was determined to strengthen the brand’s development activities to stay competitive. Not a single job has been cut, he underlines. As its name suggests, Boucledor’s primary activity is the production of gold buckles and clasps – in French boucle means “buckle” and or means gold. The precious metal worked by Boucledor comes exclusively from a major bank which is accredited by the Responsible Jewellery Council (RJC) and a member of the London Bullion Market Association, or LBMA. Boucledor’s supplier guarantees compliance with LBMA requirements, which include, monitoring and accreditation of establishments specialising in gold refining. Boucledor also complies with REACH standards, which Claude Durand describes as “effective protection for consumers”. Moreover, the company is a member of the Geneva-based Eco-Engagement programme, which fosters the implementation of sustainable development measures in business.

use vegetable tanning: instead of soaking the hide in chrome salts, we use rock powder, for example.” On the other hand, Georges Brunet complains of excessive regulation of the sector: “We have to stop prohibiting new materials all the time. Everybody ends up lagging behind, virtually nobody is in line with REACH! Tanners have several months’ worth of stock…” p

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INDUSTRY

UPHEAVALS IN THE DISCREET WORLD OF

They are the watchmakers in the shadows, making the watches that bear the logos of others. Europa Star met with the principal players in Switzerland’s private-label market. Faced with competition from Asia which has tarnished the reputation of their trade, the watchmakers who usually serve as a gateway to the “milieu” for outsider companies are hoping that the stricter definition of “Swiss made” will be followed by an effective re-localisation of production – to Switzerland. by Serge Maillard

he offices of Walca, near to Bienne, resemble the headquarters of virtually any other Swiss watchmaking company, with its administrative, technical, logistic and quality control divisions. But there is just one difference: here, nothing is produced in the company’s own name. Discretion is the watchword. This private-label company, which this year is celebrating its 40th anniversary, does not divulge the names of its customers, a golden rule respected by all the players in the sector. “We are the manufacturing arm of those brands,” sums up Walca’s director Markus Zaugg.

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The boom in Swiss-made watches, sales of which have doubled in fifteen years (exports have risen from 10 to 20 billion Swiss francs since 2001), has attracted players from outside the watchmaking industry – manufacturers of clothes, pens and even glasses. All have jumped on the bandwagon, usually with no prior watchmaking knowledge. The private-label companies are there to accompany them as they enter the watchmaking market, with a vast array of services ranging from simple design through to whole watches manufactured from A to Z, and in all price segments, from cheap quartz – Swiss-made or not – to large mechanical complications. Unlike the licensing giants (such as Fossil Group, Movado Group or Mondaine), they “content” themselves with making the watches, leaving the customer the task of selling and marketing the products. Although for a long time the main privatelabel companies were Swiss, the porosity of the “Swiss-made” label – currently being made more watertight – attracted a large number of Asian companies, generally based in Hong Kong, which helped devalue the genre. If it wasn’t the budding watchmakers themselves, opting for Chinese components and taking it upon themselves to find assemblers in Ticino, without even looking for an intermediary operating in the private-label market. In short, in the past few years we have seen just about everything, but more to the point, any old thing – which obviously did little to boost the credibility of the “Swiss-made” label, nor that of privatelabel manufacturers in general.

SIMILAR PROFILE Mostly based in Bienne, medium-sized businesses with a workforce of 20 to 100, the largest Swiss private-label companies are Roventa-Henex, Walca, Grovana, Timestar, Blanchefontaine and Xantia. All are hoping that the stricter criteria defining “Swiss-made” (under the “Swissness” bill which becomes law on 1 January 2017, 60% of the value of a watch will have to be Swiss) will benefit them in face of the tough competition from Hong Kong. This competition has cost them huge market share. But so has the impermanence that is all part of the game when you have ultra-fashionable

“Our main competition comes from private labels produced in China. We hope that business will be repatriated from Hong Kong to Switzerland.”

Markus Zaugg Walca

customers: they can rapidly – and logically – fall out of fashion. “In the 1990s, our principal customer was the brand Sector, which was enjoying a real boom at the time. We produced huge quantities,” Markus Zaugg remembers. During the same decade, recalls JeanPierre Loetscher, who heads up Xantia, a company founded in 1962, “we might produce 800,000 to 1 million quartz watches a year, mainly for the Swiss Army brand that has been taken over since then by Victorinox.” While for many manufactories the noughties were synonymous with shrinking volumes, due largely to Asian competition, they were nevertheless highly profitable for the Switzerlandbased private-label companies thanks to the arrival of myriad newcomers attracted by the manna-like margins of Swiss-made horology, as well as by the potential association between their products and the watches. For example, Xantia helped Phonak, a major Swiss hearing-aid manufacturer, design a watch to regulate its appliances. “These are niche markets, just like the models with specific functions, such as altimeters, or alarm or healthcare watches, for ‘non-horological’ customers,” underscores Jean-Pierre Loetscher.

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VERTICAL INTEGRATION OF THE WATCHMAKING SECTOR The largest name in the sector in Switzerland, Roventa-Henex, founded in 1959, has its own assembly facility in Tavannes, whereas the majority of its fellow companies use the services of external “finishers” in Ticino or the Jura. The company turns out several hundreds of thousands of items a year. “We have around forty customers, of whom thirty or so are regulars. Some of them have been working with us for several decades,” notes company director Kurt Grünig. “But when a brand is taken over by a group, that’s when it considers producing in-house more seriously.”

“When a brand is taken over by a group, that’s when it considers producing in-house more seriously.”

Kurt Grünig Roventa

Added to this vertical integration is the current slowdown in demand. “Today, too many regions are experiencing problems simultaneously, what with oil prices in the Middle East, terrorist attacks in France, the war in Ukraine, the slowdown in China and too much stock virtually everywhere,” Grünig goes on. “We are subcontractors, and our customers are much more cautious.” The result is sluggish demand, especially where re-orders are concerned.

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SWISSNESS – OPPORTUNITY OR THREAT? Enter the new legislation on Swiss-made goods. For the Swiss private-label companies, this represents both an opportunity and a threat: an opportunity because a reinforcement of this prized seal of approval could mean that production will be repatriated in the face of Asian competition; a threat because if the value of the components rises, costs will also rise, which is a difficult pill to swallow, especially for customers operating in the lowend and quartz watch segment. “Our main competition comes from private labels produced in China itself. We hope that private-label business will be repatriated from Hong Kong to Switzerland. Because the Swiss-made aspect is our strong point and we have the structure to meet the new legal requirements,” says Markus Zaugg at Walca. “Until now, a large number of potential customers did the prototyping and development in Asia, and only the assembly in Switzerland. We have development and prototyping managers inhouse and we’ve been penalised by this Asian competition by our higher costs. I hope this new legislation will help us. Some will stop making Swiss-made goods, because they won’t meet the requirements any more, but some might come here,” is the view of Kurt Grünig of Roventa-Henex.

EDUCATING THE CUSTOMER The company director explains that he began talking to customers about the changes the new act is set to bring at an early stage, and even “anticipated” the rise in Swiss-made value starting from the product launches of late 2015. “We began by calculating what we can still allow ourselves to purchase in Asia as

regards case design. We’re looking for solutions and are planning to buy more in Switzerland. But there are still some legal points to be clarified.” In fact, 2017 and 2018 will represent a “grey zone”, explains Markus Zaugg of Walca. “The technical development and all the cases in stock at the end of 2016

“Most of our customers are finding the adjustment deadline too short because the Federal Council set the date of entry into force of the revised Swiss made only last June.”

Jean-Pierre Loetscher Xantia

will not be included in the calculation. The act states that stocks of finished watches and cases can still be sold under the Swiss-made label for two years. Some companies may be tempted to build up as much stock as possible, but that’s risky, especially given the current economic climate! The situation will be clearer from 2019: by then, proof will be needed that development took place in Switzerland.” What is certain is that the new legislation will raise production costs. “Some customers are ready, others not,” Zaugg adds. “There’s a lot of educating to do. But it’s sometimes difficult to reconcile their demands with the real price. We’re looking for solutions together. We can find cases in Switzerland, but customers won’t necessarily agree with raising their prices.” At Xantia, Jean-Pierre Loetscher does not beat about the bush: “The price increase will create problems for certain

customers. Either they’re going to have to reduce their margins, or they’ll have to redesign their collections. We’re part of the FH, but most of our customers are finding the adjustment deadline too short because the Federal Council set the date of entry into force of the revised ordinance only last June.”

IMAGE IN NEED OF IMPROVEMENT Even so, for many people “private label” spontaneously summons up images of promotional watches. Will its image improve with the market “clean-up” which could result from this new legislation that redefines “Swiss-made”? “We don’t only make cheap watches; a large proportion of our products are made using sophisticated, 100% Swiss parts,” underscores Kurt Grünig of Roventa. “Moreover, we allocate every model to one customer: we have no standard catalogue where you can just take your pick, with products you then find on the market under different names. The Asian companies create models and sell different variants of them to several brands.” As for Markus Zaugg, he is seeing a less frivolous attitude in the watchmaking market: “The time when watchmaking attracted lots of new players, some of them rather questionable, is over. Today, we tell potential customers ‘if you want a technical study, you have to pay first’. We used to be asked to conduct studies and then never heard from the customer again. And companies interested in making watches realise that it’s no simple matter producing their watches themselves in China in a complex environment. It’s an asset to have a contractor in Switzerland who provides not only the design but also the engineering support. We also handle the after-sales service on behalf of our customers. Everything is à la carte. Let’s hope we’re going to see a return to the real values of the private label.” p

VAUCHER, THE “ROLLS ROYCE”OF THE PRIVATE LABEL The Fleurier-based manufacture of “Genuine Sandoz Foundation’s watchmaking manufacture-produced business is reputed first and foremost movements are rare! for the quality of its calibres, which it supplies to the major watchmaker Incidentally, we’re names, such as Hermès (which has advocates of ‘100% a minority shareholding in the comSwiss-made’.” pany). But three years ago, Vaucher Manufacture launched a private-label venture producing whole watches. Why? “On the one hand, there was a demand, but it was also a logical move to take advantage of our strong Jean-Daniel Dubois point, which is in-house expertise in Vaucher Manufacture all the lines of business. Our comparative advantage is also that we’re able to offer small volumes to certain, small brands. We’ve developed a genuine range of products, from three-hand watches to tourbillons,” explains Vaucher Manufacture director, Jean-Daniel Dubois. The company produces some 2,000 private-label watches a year, but aims ultimately to double that figure. “We get all kinds of requests: a well-established brand that wants a movement, a turnkey product, a sales network, a freelance designer… We provide intensive support and we’re not dependent on third-party contingencies, including for assembly,” says Dubois. Unlike most of the players in the marketplace, Vaucher Manufacture works at the very high end of the private label segment. “That comes at a price, but genuine manufacture-produced movements are rare! Incidentally, we’re advocates of ‘100% Swiss-made’ and offer certification such as the Qualité Fleurier label.” So how is business, given the extremely difficult economic climate? “For sure, watchmaking is suffering, but we work a lot with small, creative brands, many of which are organised around a central name: independent watchmakers, as well as jewellers who want to create a watch. Moreover, we’re in the process of setting up an after-sales structure for customers who don’t have their own. So our privatelabel business is doing fairly well – but our principal line of business is still, and will always be, the production of mechanical calibres.”

EDITORIAL & ADVERTISERS’ INDEX Aerowatch 30 A. Lange & Söhne 52 Alcatel 36 Ali & Co 36 Alpina 30 Andreas Strehler 42 Apple 21, 22, 27, 28, 32, 36, 82 Arnold & Son 47 Asus 36 Audemars Piguet 27 Baselworld 40 Baume & Mercier 22, 63 Blanchefontaine 76 Boucledor 75 Bovet 56, 57 Breguet 25, 63 Breitling 21, 36 Bulgari 7, 22, 25 Cartier 21, 22, 25, 27, 45 Casio 21, 28, 36, 59, 60, 61 Chanel 4, 5, 63, 64, 65 Christiaan van der Klaauw 47 Citizen 30, 35 Coach 38 Corium Développement 70 Daniel Roth 32 De Bethune 46 de Grisogono 32, 37 ETA 19 Fabergé 29 Ferragamo 30 Fitbit 27, 37 Fleurus 70 Flik Flak 25 Fossil 21, 22, 28, 32, 37, 63 F.P. Journe COVER I, 12, 13, 14, 15 Frédérique Constant 30, 37, 48 Garmin 28, 37 Gérald Genta 32 Glashütte Original 51 Grovana 76 Harry Winston 51 Hermès 66, 67, 79 Hirsch 72 Huawei 37 Hublot 21, 25 Hugo Boss 38 IWC 27 Jaeger-LeCoultre 50 Jean Marcel 33 Juicy Couture 38 Komono 63 Kuki 72 Lacoste 38 Lenovo Motorola 28, 38 LG Electronics 28, 37 Lic 72 Longines 21, 27

Louis Moinet 54, 55 Louis Pion 63 Louis Vuitton 9 Michael Kors 21, 37 MMT 30, 34 Mondaine 30, 37 Montblanc 21, 28 Morellato 73 Movado 30, 38 Nike 32 Nixon 38 Nokia 28 Omega 21, 22, 25, 27 Panerai 25 Parmigiani 44, 45 Patek Philippe 21, 22, 27, 43, COVER IV Pebble 38 Philips 38 Piaget 25 Poiray 63 Promotion 69, 73 Protexo 74 Rado 21 Rolex COVER II, 3, 21, 22, 27 Roventa-Henex 76, 78, 79 Salin 71, 74 Samsung 28, 37, 38 Sarpaneva 52, 53 Scuderia Ferrari 38 Seiko COVER III Sercab Proserto Val’Heure 81 Shinola 21 Sibra 74 SIHH 28, 58, 63 Sinn 30 SIS 74 Skagen 37 Sony 38 Soprod 32, 34 Suunto 38 Swatch 18, 25, 39 Swatch Group 28, 34 TAG Heuer 21, 25, 27, 28, 32, 39 Timestar 76 Tissot 21, 27, 39 Tommy Hilfiger 38 TomTom 39 Tudor 21 Urban Jürgensen 23, 49 Vacheron Constantin 48 Van Cleef & Arpels 25 Vaucher Manufacture 79 Vector 39 Walca 76, 77, 78, 79 Withings 28, 39 Xantia 76, 77, 78, 79 Zenith 25 Zuccolo Rochet 75

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BREAKING RECORDS OR IS IT WIND? by D. Malcolm Lakin

n September 21, 2015 the world of Dick Tracy and James Bond became reality: the Apple Watch was born. Apple announced at the time of the launch that there were already more than 3500 apps customised for its watch, including connections to all the social media networks like Facebook, Twitter and Tweetings - which makes it really practical if you have the heart rate monitor app since your Facebook account can automatically update your profile when you die. Neat. On my travels I’ve seen many an Apple Watch acolyte’s arm at eye or mouth level reading or talking to their wrist, oblivious to their surroundings of on-coming traffic and fellow pedestrians, and I’ve often heard the accompanying torrents of expletives as their Gucci-clad feet slither in a pile of dogs’ mess. Because of the Apple Watch’s unique shape it is instantly recognisable and from time to time, when I felt that the wearer was approachable, I’ve asked what they think of the watch and which of the apps they have. Inevitably I get the list of those that are pre-installed plus the dozens of free ones that they’ve downloaded since its purchase. But when I ask the sixty-four thousand dollar question - which apps do you use regularly - the wearer usually mentions at best only four or five. What I find bizarre is that everything the Apple Watch does the iPhone does, which means you are not only duplicating everything, but also you’re obliged to have the telephone for the watch to function. So why have both?

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As somebody acknowledged recently, ‘the Apple Watch finally allows users to destroy two devices when they reach into the toilet to retrieve their iPhone.’ A doctor I visited in Menton had an Apple Watch and when I didn’t have a thermometer in my mouth and between some painful tweaks, I asked him if he used any of the medically inspired apps. The answer was a surprising “Non Monsieur” adding that he bought it because he liked the Micky Mouse feature on the dial. On the other hand, on a recent flight in a Boeing 747 from Houston to London, the flight’s Consumer Service Manager, Lee Peter, informed me he uses the Apple Watch professionally for take-off and landing times and GMT functions, plus the app that informs him how many kilometres he walks during any given flight. At last, a working watch. I like the idea that the Apple Watch is water-resistant to fifty metres. Apart from the obvious, it’s practical if you’re drowning or when a shark starts circling around whilst you’re scuba diving, since you can ‘phone someone for help. And if you have the appropriate watch bracelet you can even take a selfie alongside a grinning dolphin. Trawling the Internet I discovered a few weird and wonderful apps for connected watches. There is one that sends lonely users regular messages from a digital girlfriend named Mina. It’s called ‘Honey It’s Me!, and has around 100 recorded messages from a sexy-voiced lady saying ‘It’s time for breakfast,’ ’Are you still sleeping?’ and ‘Good night, sweet dreams,’ all for $1.99. And if that doesn’t appeal

to you there’s an app for dog lovers that includes a dog whistle. It may be heresy, but I’m from the old school of watch wearers. I like to look at my wrist to instantly see the time, appreciating the joys of wearing a mechanical marvel that took hundreds of hours to create and produce and has more working parts than the average motor car. I’m sorry, but my opinion of the current downward trend for connected watches actually brightens my day. Some years ago, Dave Allen, an Irish comedian, performed a monologue on teaching a child how to read the time. It started something like this: “I’m going to teach you to read the time.” “Why?” “Because it’s important. How will you know when it’s time to go to school if you can’t read the time?” “Mummy would tell me.” “What if mummy wasn’t there?” “Then you’d tell me the time.” “Suppose neither of was here?” “I wouldn’t go to school.” “Shut up and listen. There are three hands on the watch: the first hand is the hour hand, the second hand is the minute hand and the third hand is the second hand.” But that’s all over now because connected watches are so complex and dependent on an accompanying telephone. However, help is available nearby in an Apple Store since they offer users free workshops on how to use their watch. Now the best for last, and I kid you not: the most puerile app yet created and designed to cause you problems on your first date or in the hushed ambience of the theatre: it offers a selection of ear-shattering farts. Well you’ve got to laugh haven’t you.p