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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

JAEGER-LECOULTRE

When “excess” is in fact a matter of due measure

Hybri sM Mast echanica er Ul 11 Flying tra Thin M Tourb i illon nute Repe at

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7 WATCH BUSINESS MAGAZINE EUROPEAN EDITION N°326 4/2014 AUG. / SEPT. 08

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CHF12 / €10 / US$12

MECHANICAL: BACK TO SIMPLICITY In this issue: In-house movements • Who will succeed ETA? Alternative escapements • Entry-level mechanicals • Brands Letters from China & USA • Retail and Service

EDITORIAL

MECHANICAL INTELLIGENCE Pierre M. Maillard Editor-in-chief

An interesting article that appeared recently in The Economist (“The high-tech world of old-world watches”) offered a different take on the implications of the approaching tidal wave of smart watches. The premise of the article is that there is a great deal more innovation in the art of mechanical watchmaking than in supposedly “smart” watches. According to The Economist, smart watches are no more than a new way of presenting and adapting existing functions and applications in “a mash-up of phone, activity-tracker and music-player.” And despite the fact that almost two million were sold last year, Endeavour Partners in the USA found that one-third of buyers tire of them rapidly, and simply stop wearing them within six months.

The Economist takes the contrary view that true innovation is to be found in good old-fashioned mechanical watchmaking, stimulated by the “vast profits still made in and around Switzerland’s ‘watch valley’,” and by the “unexpected uses of untraditional materials, that may in time transform the industry.”

In support of its thesis, The Economist frequently points to Swatch’s Sistem51 as representing a major breakthrough (see our discussion of mechanical simplification in this issue). Above all, however, it enthuses about the revolutionary use of silicon, citing Girard-Perregaux’ constant force escapement as an example.

That must all be very reassuring to our watchmakers, surely?

Not really. The new Messiah whose coming is most anxiously awaited bears the name of Apple. Will the California-

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based giant be content only to address the many loyal converts it already has, all those ultra-connected acolytes who will no doubt bow to its greatness and immediately clasp one of its bruited bracelets around their wrists? Or will it also target the disciples of Haute Horlogerie – a wealthier, more cultivated audience more sensitive to traditional luxury?

Although some watchmakers dismiss out of hand any risk of being swallowed up by the technology monster, and others already fear for their lives, the true outcome will probably lie somewhere between the two. Just as the invention of photography did not kill painting, but transformed it utterly by liberating it from the shackles of realistic reproduction, so the arrival of the smart

watch, whatever happens, will undoubtedly transform the art and technique of watchmaking.

One positive from The Economist’s article is that it shows that in the coming hi-tech battle Swiss watchmaking is not without weapons, and possesses the financial, human and technical resources to meet the new challenges. But in order to meet them in the best and smartest way possible, it must avoid seeking refuge in denial, as it did during the famous quartz crisis, which came close to sinking the entire industry. Arrogance is a poor counsellor. Nevertheless, the idea that everyone and everything should be constantly connected (because in addition to smart watches we should expect to see smart refrigerators, smart cars, smart baby’s bottles, etc.) will eventually be undone by its own ubiquity. Not everyone wants to be permanently plugged in, and the number who do is probably diminishing. One of the virtues of traditional watchmaking is the mechanical poetry that connects us not to the internet but to the cosmos, to the mysteries of time and beauty. And therein perhaps lies its greatest strength. p

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CONTENTS

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Jaeger-LeCoultre SA La Golisse 8 CH 1347 Le Sentier Tél: +41 (0)21 845 02 02 Fax: +41 (0)21 845 05 50 info@jaeger-lecoultre.com www.jaeger-lecoultre.com

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EDITORIAL Mechanical Intelligence COVER STORY Jaeger-LeCoultre – When “excess” is in fact a matter of due measure MECHANICAL Simplicity is a complex business!

Simply Talking Complications with Ludwig Oechslin Simply Talking Complications with Stephen Forsey Movements: Who will succeed ETA? Are In-House Movements Important?

Unlocking Alternative Escapements Entry-Level Mechanicals WORLDWATCHWEB What is driving Online Interest for – The Luxury Watch Industry’s “High Range” Brands?

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BRANDS A Courageous Trio Straight talk with Gucci’s Patrizio Di Marco

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LETTER FROM CHINA 25th Shenzen watch and clock fair – Je t’aime, moi non plus

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LETTER FROM USA The recovery is coming, but it’s not here yet

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RETAILER PROFILE Tourneau – Ira Melnitsky

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36 Alternative Escapements

48 A courageous trio 58 US Market

SERVICE PLEASE Service Experiences – Where the rubber meets the road at the retail level – Part 2

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LAKIN@LARGE Quelle Surprise: A Freebie!

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SPOTLIGHT The World’s first hybrid time-keeping system by Casio

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

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31 Casio

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

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12 Simplicity is a complex business!

DIGITAL PARTNER

HYBRIS MECHANICA 11 MASTER ULTRA THIN MINUTE REPEATER FLYING TOURBILLON

by Jaeger-LeCoultre A 41 mm white gold watch with a thickness of 7.9 mm equipped with a Calibre 362 automatic movement with a power reserve of 45 hours.

Hours, minutes, minute repeater and tourbillon functions, silver grained dial, alligator leather strap, waterresistant to 30 metres.

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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE

T I S S OT L U X U RY AU TO M AT I C . P OW E R M AT I C 8 0 M OV E M E N T, O F F I C I A L LY C H R O N O M E T E R - C E R T I F I E D BY T H E C O S C (CONTRÔLE OFFICIEL SUISSE DES CHRONOMÈTRES), O F F E R I N G U P TO 8 0 HOU RS O F P OW E R R E S E RV E W IT H A 3 16 L STA I N L E S S ST E E L C AS E . I N N OVATO RS BY T R A D I T I O N .

T I S S OT. C H

COVER STORY

JAEGER-LECOULTRE – When “excess” is in fact a matter of due measure HYBRIS MECHANICA 11 – MASTER ULTRA THIN MINUTE REPEATER FLYING TOURBILLON

Pierre Maillard

For the Ancient Greeks, hybris (also referred to as hubris) was a flaw. It was a sign of immoderation, of excess, of the pride of Man in defying the Gods. By regrouping its most striking mechanical accomplishments under the provocative name of Hybris Mechanica, is Jaeger-LeCoultre displaying immoderation, excess and pride?

While one might be tempted to suspect as much, the Master Ultra Thin Minute Repeater Flying Tourbillon, the 11th creation to take its place in this highly exclusive family of Hybris Mechanica is there to prove the exact opposite. Because sometimes “excess” is in fact an absolute quest for “due measure”. Such is indeed the case here, as we will attempt to demonstrate.

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Everything about this exceptional timepiece converges towards a central goal: that of expressing outstanding mechanical complexity in a supremely simple, pared-down and slender form – the aim being to open up a new era for Grande Complication models: one of exceptional slimness and finesse. Beneath the pure, uncluttered face of the Master Ultra Thin Minute Repeater Flying Tourbillon, and between its taut, slim shapes, beats a masterful automatic movement measuring just 4.8 mm thick and which fully lives up to its ultrathin epithet and combines a flying tourbillon with a minute repeater. With a total thickness of just 7.9 mm including the watch glass, the Ultra Thin Minute Repeater Flying Tourbillon is indeed the thinnest minute repeater in its category.

However, accomplishing this, heralding a new chapter in the grand saga of mechanical horology – the era of ultra-thin Grande Complication models – and achieving such excellent “due measure” called for the hybris of an extremely long history. A history marked by the progressive accumulation of skills and knowledge through a steady stream of inventions and innovations. The objective of slenderness, especially for a Grande Complication watch, implies overcoming a whole series of obstacles relating both to technical horological factors and to the art of creating a perfect exterior. One hundred years of practice in the field of ultra-thin watches are none too many to succeed in overcoming all the difficulties implied in such a process.

THE LONGSTANDING QUEST FOR SLENDERNESS The story of this quest for slenderness began in Paris in 1907.

Two men – Edmond Jaeger, a Parisian entrepreneur; and Jacques-David LeCoultre, a watchmaker from the Vallée de Joux – had just created a “knife-shaped” pocket watch housing LeCoultre Calibre 135 measuring just 1.38 mm thin. This absolute record in its era was Jacques-David LeCoultre’s horological response to the challenge set by Edmond Jaeger four years earlier: to create the thinnest and most reliable possible watch – in fact the thinnest in the world. This was to be the starting point in the epic pursuit of slenderness; the first in a long series of ultra-thin movements that would make their mark on the history of Jaeger-LeCoultre and that of the watch industry as a whole. It is well worth highlighting the very first movements that began this proud lineage: LeCoultre Calibre 136 with minute repeater (1907); Lecoultre Calibre 6EB, the first ultra-thin rectangular movement; as well as LeCoultre Calibre 11CCVEP, an astonishing ultra-thin chronograph (1908).

Throughout its history, the Manufacture Jaeger-LeCoultre has relentlessly pursued this horological quest that is undoubtedly one of the most fundamental in this discipline – since anyone dealing with thinness must also address another vital horological principle: that of reliability. Case and movement, functions and functionality, construction and the watch exterior thereby all stem from the same construction intent.

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The new Master Ultra Thin Minute Repeater Flying Tourbillon surpasses all that has gone before and represents a crowning accomplishment that is a compendium of avant-garde innovations. europa star / COVER STORY 00

A CROWNING ACHIEVEMENT HERALDING A NEW ERA While the new Master Ultra Thin Minute Repeater Flying Tourbillon is indeed the fruit of this history, it surpasses all that has gone before and represents a crowning accomplishment that is a compendium of avant-garde innovations (protected by eight patents, including six new pending patents).

These innovations relate to the precision of the watch, its reliability, the unusual architecture of its flying tourbillon, to the strength and crystal-clear tone of the sound it emits, the striking mechanism activation and winding system, the taut architecture and the finishing of its movement, and naturally also to its intrinsic slenderness.

Let’s begin with the tourbillon. Far from being a classic construction, its highly original architecture not only enables reduced thickness, but also ensures complete visibility of this steadily rotating organ. It is in fact a flying tourbillon featuring a flying-type balance wheel: a world first in itself.

In a traditional tourbillon, the balance wheel is held inside a carriage supported by an upper bridge; whereas this brandnew flying tourbillon entirely does away with any upper bridge.

The carriage has apparently vanished, reduced to an absolute minimum and positioned at the back of the balance wheel, which therefore appears to by “flying” through space in solitary splendour. This unusual architecture provides a spectacular plunging view into the heart of this system with its steadily beating, magnificently blued balance spring. This entirely hand-crafted, high-performance cylindrical balance spring is equipped with two terminal curves ensuring perfect concentric ‘breathing’ and thus extreme precision (patent registered).

The avant-garde nature of this model does not stop there, since accommodating an automatic winding system within an ultra-thin case is a tough challenge that implies entirely rethinking the structure of the movement. The automatic winding system designed to power the Master Ultra Thin Minute Repeater Flying Tourbillon is of the peripheral type.

The winding is thus handled by a platinum ring mounted on a “huge” circular ball bearing mechanism that no longer oscillates beneath the movement, but instead around it. This constantly oscillating ring is visible through the openings dotted around the rim of the grained silver-toned dial.

A NEW WINDING SYSTEM This ingenious peripheral oscillating weight system paved the way for another innovation. Minute repeater mechanisms are generally wound via a trigger or slide-piece placed on the

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side of the case. In this model, the traditional slide-piece is replaced by a retractable single pushbutton measuring just 2 mm thick (registered patent). This retractable winding pushbutton located at 10 o’clock on the side of the watch is secured by a tiny latch at 8 o’clock. It is discreet, ergonomic, serves to wind the striking mechanism in just one push, guarantees perfect water resistance (3 atm), as well as offering the additional aesthetic advantage of keeping the case entirely smooth, slim and perfectly rounded.

THE SCIENTIFIC QUEST FOR THE BEST POSSIBLE SOUND This retractable pushbutton winds a minute repeater that is also a concentrated blend of innovations relating to the power of the sound emitted, to its quality, as well as to the rhythmical simplification of the sound sequences. A traditional minute repeater sounds the hours, quarters and minutes in that order. At 08:17 for example, it will strike the hours gong eight times, the quarters gong once, and the minutes gong twice. However, at 08:12, in the absence of quarters, such a traditional repeater will strike the hours gong eight times, pause to “let the quarter slip by” before striking the minutes gong 12 times. In the new system developed by Jaeger-LeCoultre, this “silent timelapse” between the hours and minutes is simply eliminated, thereby offering the very first uninterrupted and entirely logical auditory time reading.

The power and the quality of the sound thus emitted have also been the object of intense acoustic research that the Manufacture has been conducting in a strictly scientific manner for several years already.

Traditionally, the sound is made by a simple hammer striking the gong, off which it rebounds. In this instance, this strike has been optimised by means of duly patented trebuchet hammers, inspired by medieval catapults of which the strength was strongly increased by the mobile section containing the projectile. Due to this system of trebuchet hammers, the strike is clean, without any rebound and with higher energy transmission (80% compared with just 10 to 30% for a classic hammer). Moreover, these hammers strike all-of-a-piece gongs with a square rather than round cross-section, thereby increasing the surface in contact with the hammer and ensuring unprecedented strength of the sound thus emitted. The transmission of this sound is further enhanced by a crystal gong directly welded to the sapphire crystal to which it directly transmits its vibrations – sapphire being an excellent conductor. The result is a sound effect of exceptional quality that truly deserves to be called crystal clear.

A TRIBUTE TO TRADITION Crafted, assembled and decorated by hand, the mechanical automatic Jaeger-LeCoultre Calibre 362 powering the Master Ultra Thin Minute Repeater Flying Tourbillon and measuring just 4.8 mm thick, represents a considerable sum of innovations, as well as referring to the longstanding, noble tradition of JaegerLeCoultre’s historical pocket watches. The ebauche and the bridges are made of maillechort, a prestigious copper-nickelzinc alloy distinguished by its propensity to acquire a magnificent patina over time. Evidenced in the Haute Horlogerie finishes of its parts, the Côtes de Genève decoration of its various bridges, the entirely hand-crafted bevelling (including complex tradition interior angles), the extreme care devoted to the aesthetic appearance of this movement is entirely in tune with the historical traditions of the Manufacture.

This elegant and majestic ultra-thin movement is housed within an ideally proportioned case measuring 7.9 mm thick and 41 mm in diameter. This case is made of 18-carat extra-white gold, a choice that is both aesthetic and functional in that white gold is renowned for its excellent acoustic qualities. The bezel, the sides and the streamlined lugs are all entirely polished by hand.

The perfectly classical, understated dial also evokes the historical lineage and the aesthetic similarities with the pocket watches from the Manufacture. The traditionally transferred black minute circle and hour-markers stand out clearly against the silver-toned grained finish of the dial bearing new, subtly longer, delicately crafted, polished and grained Dauphinetype hands. The ultra-thin flying tourbillon is theatrically displayed at 6 o’clock, while the rim of the dial is drilled with small regular openings serving to observe the rotations of the circular oscillating weight segment in finely snailed platinum.

Setting the perfect finishing touch, the welded contact point between the gong heel and the sapphire crystal is delicately marked with musical notes.

Available in a 75-piece limited edition, this Hybris Mechanica 11 is fitted with a high-end alligator leather strap secured by a pin buckle.

“Excess” – hybris – is indeed finely concealed beneath an exterior worthy of the most classic forms of due measure. p Discover more at www.europastar.BIZ/Jaeger-LeCoultre

europa star / COVER STORY

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MECHANICAL

SIMPLICITY IS A COMPLEX BUSINESS! Pierre Maillard

In the quest for the truth about what appears to be a mechanical “back to basics” movement, Europa Star asked a number of watchmakers to help navigate the complex route that leads to simplicity.

With the participation of Denis Flageollet (De Bethune), François-Paul Journe (FPJ), Edouard Meylan (H. Moser & Cie), Luc Perramond (La Montre Hermès), Sandro Reginelli (Maurice Lacroix) and Jean-Marc Wiederrecht (Agenhor).

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After years of mechanical excess, we appear to be witnessing a return to greater moderation, in both technical and aesthetic terms. The one-upmanship that has prompted designers and watch builders to display the guts of their timepieces, exaggerate their dimensions and pile complication upon complication has clearly abated, as we saw in Basel this year.

Simplicity, purity of line and a restrained choice of materials once again have pride of place for a wide variety of brands and creators in all price brackets.

Is this the objective reality as others see it, or is it merely a subjective impression?

To clear things up in our minds, and to gain a better understanding of the phenomenon – if that is what it is – Europa Star asked a number of figures from the watchmaking world.

But Denis Flageollet, co-founder and director of the technical department of De Bethune, tempers these statements.

“I hope one day to be able to confirm this, because mechanical excess causes nothing but problems, and eventually people lose interest,” he notes, implying that there is still some way to go before a greater degree of moderation is achieved.

Are we really witnessing a “back to basics” movement in watchmaking, a return to greater simplicity and moderation?

The feeling that there is a return to simplicity is widely shared, and for most observers this trend has not come as a surprise but has been gradually gaining ground over the last few years. As Luc Perramond, CEO of La Montre Hermès, notes “for a number of years now we’ve sensed a return to more authentic objects, without any superfluous technical or aesthetic features.” Sandro Reginelli, product and marketing director of Maurice Lacroix, states “The trend is very clear... We have seen it coming for some time, but it is now firmly established.” Jean-Marc Wiedderecht of Agenhor, an independent manufacturer that works for a wide variety of clients and therefore has a very broad view of the market, has a similar take. In his view, “Yes, the number of pieces that are extremely complicated, often without any obvious reason, and that have a complex and busy aesthetic seems to be diminishing. A new ‘neo-classical’ trend based on far more discreet and above all much slimmer designs has been gaining popularity for several years.”

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DE BETHUNE, DB29 CHRONOGRAPHE MONOPOUSSOIR TOURBILLON A tour de force of watchmaking simplification, both aesthetically and mechanically.

Second, minute and hour markers are arranged concentrically to improve legibility; the lugs are simplified to the extreme to optimise comfort on the wrist; an invisible hinge gives access to the double case back without affecting the purity of line; and the single button (monopoussoir) is discreetly integrated into the crown at 3 o’clock.

Turning to the movement, the chronograph’s clutch function is the subject of a patent for its simplicity and functional advantages; the frequency of the 36,000 vph tourbillon makes it easy to measure to 1/10th of a second; the tourbillon is enclosed in a U-shaped framework rather than the usual pillars, which would be too bulky to work correctly in a wristwatch; the balance is made up of a silicon centre surrounded with white gold, which is far lighter for the same inertia, and easier to calibrate than a traditional screw balance wheel; the hairspring has a simplified flat coil, which avoids the complexity of a Breguet coil but has the advantage of keeping the centre of gravity perfectly centred and preventing any deformation of the hairspring in the event of a shock.

FRANÇOIS-PAUL JOURNE, LE CHRONOMÈTRE SOUVERAIN Labelled the “antithesis of complicated watchmaking” by its creator, the Chronomètre Souverain draws its inspiration from the marine chronometry of the early 19th century. Behind a pared-down dial that features an understated play between guillochage and numbers, a hand-wound movement oscillates at 21,600 vph. Twin barrels in the classic configuration of precision watches operate in parallel, providing a force that remains stable for a large part of their official power reserve. The chronometric index-free escapement, with variable inertia spread over four weights, is regulated dynamically in six different positions. Seen through the transparent case back, the balance and escapement appear mysteriously detached from the movement, beating time with no visible means of propulsion. In fact, the wheels are located under the dial, leaving only the centre wheel to underline the splendid isolation of the balance.

Architectural simplicity in the service of accuracy.

Nevertheless, although he rejects “mechanical excess” he argues strongly for “creative excess” which “is always full of good sense and should have the ability to drive us towards simplicity. Let us be creative, and we might just achieve this ‘moderation’!”

An interesting exhortation which, as we shall see below, leads to an altogether different observation: simplicity is a complex business.

Is this “return” to greater simplicity simply a pendulum effect, or is it here to stay? Could there be deeper societal or economic reasons for it?

“I think there has always been a place for classical, elegant design. What I believe has happened is that the extremes have changed. The bell curve has had its ends cut off and we are going back to more classical, minimalist watches,” says

“Making things simple is far more difficult than making things complicated.” François-Paul Journe (FPJ)

Edouard Meylan, the young CEO of H. Moser & Cie, a brand that is emblematic of the quest for a certain horological purity. In his opinion, the phenomenon is clearly societal and cyclical: “Luxury has existed for millennia, but the way we consume luxury has evolved. Is this a cyclical phenomenon?

Of course.”

Similarly, in the eyes of Sandro Reginelli, “What we are seeing more or less everywhere is a return to origins, to authenticity. It is a strong trend, one that is not confined to the watchmaking industry. In terms of society, we are seeing a demand for legitimacy from consumers, not just aesthetic and technical legitimacy, but also in environmental and historical terms. The desire for excess is dead and buried; what people want is a return to simplicity.”

For Luc Perramond, just as obviously, it is “a general trend following years of excess and euphoria. A trend which,” he notes in passing, “is good for Hermès, a brand that has always focused on simplicity, dialogue, functionality, authenticity and restraint.”

Jean-Marc Wiederrecht also sees it as a pendulum effect.

“As in the majority of sales domains, product lifespans are increasingly short. Watchmaking, for the same commercial and marketing reasons, needs to offer regular changes. We are emerging from a period of very ‘muscular’ watches; it’s only natural that the pendulum should swing quite heavily in the opposite direction,” he observes.

Denis Flageollet notes that this return to simplicity, while in his view not yet fully established, “can only be a healthy development. But I would call it more a need for balance rather than a need for simplicity, probably caused by a society that craves stability.”

François-Paul Journe dispenses with all the theorising and says it is all down to fashion. “One brand comes out with something special; people see it, some even buy it, then ten other brands follow and this creates a fashion phenomenon.

Now, it doesn’t bother me, I’m not other people, I follow my own path with my own ideas and if people like them, that’s great. If not, as the singer Georges Brassens said, I put them back in my guitar.”

Can a return to simplicity be observed in all markets?

Denis Flageollet sees simplicity, or what he prefers to call “balance”, as a matter of education and culture. And the main driver of this evolution towards greater balance is emotion.

“Through emotion, the amateur is gradually transformed into an aesthete, and the aesthete recognises perfect equilibrium.

All over the world, human beings of all stripes are drawn to

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“The more established markets seem to be buying less ostentatious luxury than the emerging markets. Thus, as the emerging markets become more established, it is not surprising to see them trend towards the classical.” Edouard Meylan (H. Moser & Cie) this noble quest. Let’s hope their number grows every day.”

But Sandro Reginelli offers a more pragmatic view: “In a far more trivial way, this trend is largely due to the growing influence of the Asian market, particularly the Chinese market. Demand in these markets is clearly focused on the small-diameter 3-hand timepiece, which they identify today as being the hallmark of Swiss watchmaking, of the ‘Swiss made’ label.” Edouard Meylan agrees in part, although he reverses the polarity of the discussion. In his view, “the more established markets seem to be buying less ostentatious luxury than the emerging markets. Thus, as the emerging markets become more established, it is not surprising to

H. MOSER & CIE., ENDEAVOUR “Innovative but very discreet. It’s all in the details,” as they say at H. Moser & Cie about their new Endeavour collection. The watch is presented in the form of a two-hand watch with small seconds, 39mm in diameter and 12.5mm deep, which is quite simply perfectly designed. Faultlessly elegant, its design owes something to the strict codes of 1920s Bauhaus, tempered with an inspired 60s touch: wide bezel, long, slim, faceted hands, a smoked rose gold, slate or silvered dial with a subtle sunburst effect, and a smoothly curved, aerodynamic case, topped with a domed glass. A perfect, rarely achieved balance.

A new in-house movement, the HMC 327 calibre, offers some innovative and avant-garde features. The calibre with its traditional finish has a minimum three-day power reserve and a stop seconds function, but also features a silicon lever with ruby pallets and a silicon escape wheel.

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see them trend towards the classical.” Two alternative points of view on the influence of one market on another. The jury is out: is the return to classicism caused by the Chinese or by the more established consumers? Probably both.

Will the trumpeted arrival of so-called “intelligent” watches have the backlash effect of confirming the return to more classical watchmaking?

It may well be the case that the observed reversion to the fundamentals of watchmaking is accentuated by the arrival of a new kind of competitor, the smart watch. It was Sandro Reginelli that gave us the most considered response to this burning question, one that Swiss watchmakers often prefer to ignore. For him, it is “a vast debate, but one it is currently difficult to enter into. Clearly, intelligent watches – the famous smart watches that everyone is talking about – currently available as gadgets, have not yet reached technological maturity.

The product still has to be defined; in the current situation it is not easy to see its added value. But without a doubt, this newcomer will bring changes to our industry. The question is, what changes. Will its advent have the contrarian effect of strengthening classicism in the watchmaking sector, or will the two factions gradually merge? Perhaps we will see mechanical timepieces with a classic design that deliver advanced ‘smart’ technology at the same time. Looking at certain indicators, such as Apple’s interest in the traditional watchmaking industry, or the ideas of new kids on the block such as Withings, or the probable birth of the hybrid ‘mega-intelligent’ watch (this might be one of the things Apple has up its sleeve...), I would lean towards the second hypothesis. Let us just hope that when the revolution comes, it is a velvet revolution, not a bloody one. It is not in anyone’s best interests to relive what we went through in the 1970s with the arrival of quartz.”

This view is shared by Denis Flageollet, who nevertheless sees an opportunity when he notes that smart watches will lead to “a lack of emotion on the wrist, which will be compensated for by objects bearing the stamp of purity and discernment.” This view is fully shared by Edouard Meylan, for whom this new phenomenon “will certainly have an influence, even if the watches concerned are in my opinion tools rather than luxury objects. Their necessarily more ‘technical’ design should drive watchmaking towards greater classicism, in order to strengthen the demarcation.”

This point of view is further explored by Jean-Marc Wiederrecht, who explains, “the appearance of this new type of object, for which displaying the time is a secondary function at best, forces us to reassess the situation. Clearly,

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ents have very different needs.” But in the end, nobody really knows. The borders are perhaps more permeable than we think, and “classicism” could well end up crossing over.

Could Apple’s design, with its pure lines and graphical simplicity, force the watchmaking industry to differentiate itself by once again displaying its mechanical innards?

Have the extraordinarily powerful computer design tools now available helped to make movements more complex when they could have been simplified?

LA MONTRE HERMÈS, DRESSAGE L’HEURE MASQUÉE “The Dressage L’Heure Masquée provides a means of playing with time, of forgetting time, thanks to a relatively simple mechanism with a highly sophisticated design. The subtlety of the module is the result of exhaustively studying the architecture of the movement and fitting the components together like a jigsaw puzzle,” according to Hermès. Following Le Temps Suspendu, which gave users the ability to mask the time display on demand, L’Heure Masquée does the opposite: in ‘normal’ mode, only the minute hand is visible, with just the initials GMT appearing in the lower aperture. Not very readable, in fact. It is only by activating the crown-integrated push-button that the hour hand instantly appears and moves to the correct position, while the time zone is simultaneously displayed.

‘intelligent’ watches perform or will perform tasks that are impossible to contemplate with the mechanical components of current watches. Working on this assumption, it is logical for brands to attempt to differentiate themselves from these new products by strengthening and communicating the advantages that have cemented the success of mechanical watches, such as their beauty and the extraordinary microtechniques necessary to ensure that our good old timepieces continue to work correctly, focusing on workmanship and the use of time-honoured construction techniques.”

Luc Perramond, however, does not believe there is any mutual influence. In his opinion, “the two phenomena are not linked. They represent two different markets, whose cli-

“It’s not the tools that are making movements more complicated, it’s the men looking for a competitive advantage. By acting in this way they have lost the sense of what makes an object beautiful.” Luc Perramond (La Montre Hermès) 16 MECHANICAL / europa star

The quest for greater horological complexity and the addition of ever more components clearly went up a gear with the advent of computer-aided design tools, used in combination with increasingly powerful CNC machines. The marriage of digital and mechanical technology led to the birth of highly sophisticated systems and mechanisms, accelerating the rush towards watchmaking excess.

For Denis Flageollet, the answer is obvious. “Finding solutions to problems has been made so much easier by these tools that many engineers and builders have lost sight of the original meaning of their craft, which is to find THE solution.

Thankfully, many of them are also able to keep a cool head despite the power of these tools.”

For Jean-Marc Wiederrecht, computer design tools are a double-edged sword. As he explains, “The extraordinary power of the new computer tools and modern means of production (materials, machining) have made it possible to create objects that would have been impossible to produce or even to imagine until relatively recently. This progress has often gone hand in hand with an increase in quality, and the ability to offer watches that are often more accurate and with new functions. But unfortunately, with these tools there is also a great temptation to think less, and therefore to end up with watches that are more complex than necessary and consequently more expensive and less reliable.”

This opinion is shared by Edouard Meylan, who believes that “many horological UFOs were born because of the power of these tools and new technologies such as LIGA. On a computer anything is possible, as many designers and brands have learned to their cost. In fact, it is no easy matter to turn a computer-generated design into an item that is both reliable and profitable. With any set of specifications, it is vital to set price parameters. This imposes an industrial approach, a simplifying approach, which in theory also has the advantage of increasing reliability.”

But rather than blaming their tools, others that we contacted placed the responsibility squarely on the shoulders of the

“Whatever the power or potential offered by computer technology, you must understand that all movements without exception are developed by people, not tools.” Sandro Reginelli (Maurice Lacroix) people using them, an attitude Luc Perramond summed up perfectly when he said, “It’s not the tools that are making movements more complicated, it’s the men looking for a competitive advantage. By acting in this way they have lost the sense of what makes an object beautiful.”

This opinion is shared by Sandro Reginelli, who points out: “Whatever the power or potential offered by computer technology, you must understand that all movements without exception are developed by people, not tools. As a rule, complications and technical developments begin life in the creative imagination of watchmakers. Computer tools come in afterwards, by facilitating the process of de-

MAURICE LACROIX, MASTERPIECE GRAVITY The Masterpiece Gravity, equipped with an automatic manufacture movement, the Calibre ML230, includes 188 components, the strict minimum required. This deliberate choice delivers a stripped-down aesthetic while increasing reliability. Its frequency of 18,000 vph (2.5 Hz) is the ideal rate for silicon, a self-lubricating material that reduces power consumption, increases accuracy and eliminates the usual need for lubrication.

The off-centre hours and minutes display is set on a white lacquered dial, domed in the centre and attached with two mirror-polished screws. The Contemporary model has diamond-cut indices while the Classical model has roman numerals. Around the outside of the dial is a flat minute rail featuring circular brushing.

This cutting-edge contemporary watch tells the time in a highly creative way while engaging the emotions.

velopment, calculation and conceptualisation, shortening the time to bring the design to market and better defining the field of possibilities.”

François-Paul Journe cuts to the heart of the debate with his usual frankness: “It is very difficult to find people in a design office who are willing to simplify. They do the drawings and then let the watchmakers sort it out for themselves!

When I used to make my watches by hand, shaping the pieces with a saw and a file, I can tell you that one less piece to make was good news. That is why I have always simplified and tried to make the components serve a dual function. Over time it has become a habit.” So, is simplification in fact the logical outcome of working by hand?

As Ludwig Oechslin says, the quest for simplification “makes you think more.” Is achieving simplification therefore more complex, conceptually, than merely stacking components?

This paradox – that simplicity is more complex – is confirmed by all our interlocutors. “Making things simple is far more difficult than making things complicated,” says François-Paul Journe, “and those who go for complicated are not asking the right questions, they are looking for the easy way out.”

Denis Flageollet puts it a different way, noting that “the quest for simplification demands greater mastery and a better understanding.”

Sandro Reginelli also raises the matter of watchmaking culture. While saying that he agrees completely with Ludwig Oechslin, whose pioneering role in this return to simplicity he acknowledges in passing, he points out: “You have to understand the fundamentals of watchmaking history in order to be able to rethink them. Certainly, the need to differentiate ourselves from our competitors and the market- and media-driven quest for innovation have probably drawn our manufacturers into something of an ‘arms race’. It is indeed so much easier and quicker to pile complications on top of each other.

But in the end we are brought back to the definition that Leonardo da Vinci came up with, way back in the Renaissance: simplicity is the ultimate sophistication. Because of the new desire for simplicity that has emerged as a reaction to the headlong rush towards complication, we will be obliged to go back to the drawing board.”

Jean-Marc Wiederrecht has similar thoughts. “I completely agree with Ludwig Oechslin. The quest for the ‘simplest possible’ is absolutely essential to produce a truly beautiful horological product. Unnecessary complexity is a result of a lack of reflection, which leads to higher prices, decreased

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By choosing simplicity, does watchmaking gain in reliability and accuracy?

JEAN-MARC WIEDERRECHT, AGENHOR Among Agenhor’s many products is the Heure d’ici & Heure d’ailleurs, engineered for Van Cleef & Arpels. With its minimalist lines expressed entirely in white gold, a simple white dial with piqué detail, a retrograde minute hand displaying local time and two jump hour indicators, it has completely reinvented the concept of the dual-time watch. Offering an immediate and perfectly legible time readout, selection of the jump hour and minute activates a single hand that stands out clearly against a completely clean background.

reliability and an increased need for after-sales service. Time spent on conceptualisation is vital and can sometimes be very lengthy. The construction phase should not begin until sufficient time has been allowed to consider every possible route, including the most improbable ones. This ‘time-wasting’ in the pre-construction phase is an opportunity to decide, in the first instance, whether or not it is worth proceeding with development. Then, if the decision is taken to continue, it can be done in the simplest possible way.” Edouard Meylan gives a concrete example of this long and difficult exercise in simplification. “Take H. Moser & Cie’s 327 movement. In the first version of this movement we had 14 different types of screws. It took three people working together to reduce this to two types of screws. The price of a screw may be negligible in comparison to the whole piece, but reducing the number of types of screws reduces assembly time, and that is far from negligible.”

“The wristwatch is subject to such constraints that any additional complexity makes the watch more fragile.” Jean-Marc Wiederrecht (Agenhor) 18 MECHANICAL / europa star

Jean-Marc Wiederrecht is absolutely convinced of it. “The wristwatch is subject to such constraints that any additional complexity makes the watch more fragile. It is somewhat ironic that complex systems, for example to improve accuracy, give no better results on the wrist than simple watches that are well executed. The theoretical advantages they are supposed to bring are cancelled out by the increased number of components. The recent Swatch Sistem51 is without a doubt the most simple automatic watch with the fewest components ever built. Despite large-scale production and highly competitive manufacturing costs (and remember, this is in Switzerland!), the watch offers very respectable functionality and performance. Its extreme simplicity has certainly played an important role in achieving these magnificent results.”

While Luc Perramond states that “mechanical complexity exponentially increases the risk of poor performance”, and Denis Flageollet responds with a resounding “absolutely!”, Sandro Reginelli is less categorical. “Not necessarily. In the future, simplicity could just be an aesthetic façade that hides technical complexities. But in the immediate term, and from an industrial point of view, let us not forget that some brands have invested heavily in developing their current movements, with a view to making them more profitable, and this has resulted in simplicity by design. Others are looking at simplicity in terms of the new movements they plan to build in the future, sometimes even drawing inspiration from pieces in their own in-house museums. But in the end, reliability and accuracy come with time, and prove themselves over the long term...” François-Paul Journe also has some doubts, but of another kind: “Reliability is not that simple. Simplification can increase it, but only if it is well thought-out. Simplify, yes, but not to the detriment of reliability. Beware of the pitfalls. You achieve the right balance through experience.”

Another observation is supplied by Edouard Meylan. The CEO of Schaffhausen-based H. Moser & Cie, whose main brief was to make production of its “understated and essential” watches more reliable and profitable, offers a salutary reminder: “Let’s not forget that even for simple products, it is vital to go through all the stages of prototyping, testing, proving and automating. Simplifying a product does not mean that you simplify the process of bringing it to market.”

And that is without considering any complications that may be added before this “simple” watch can be placed in the shop window and onto the wrists of customers. p

Modern times, eternal elegance.

Ernest Borel S.A. +41 32 926 17 26 / info@ernestborel.ch www.ernestborel.ch

MECHANICAL

Simply Talking Complications with LUDWIG OECHSLIN Keith W. Strandberg

Ludwig Oechslin is a simple man, and he appreciates the elegance in simple solutions to problems.

Oechslin is also a famous man in the watch industry, having worked with Ulysse Nardin to revive the brand, alongside Rolf Schnyder, and he was also curator of the MIH, the world’s premier watchmaking museum in La Chaux-du-Fonds.

Today, he is concentrating on his own brand called ochs und junior.

L

Oechslin is concerned about watchmaking, which in his opinion has got away from its core – precision and elegant solutions to challenges.

“The mechanical watch is going in the direction of jewellery, in and of itself,” he says. “The other brands make jewels, I make watches. I like to have good readable indications. The goal of the dial of a watch is to have good indication and I like to find the best solution.

“Simplicity is not the goal, it’s the result,” he continues.

“When you have to make a new construction for a complication, for a perpetual calendar for example, you can do so many different things. With a perpetual calendar, you have four problems to resolve – the 31 days, the 30 days, the 28th of February and the leap year. For each of these problems, you can add a new solution after the first problem, after the second and the third. Then, you need a lot of pieces to solve

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“Simplicity is not the goal, it’s the result” all these problems. The more pieces you have that have to play together, the more possibility for faults. With each added piece, you add more faults. The fewer pieces you have, the fewer faults you will have. Simplicity is a result of the desire to have less faults.

When watches are simpler, the work involved is less as well.

If you have four extra pieces, for example, you have four times the work in planning, production, finishing, assembly and testing.”

“Simplicity is a result of the desire to have less faults.”

“The problem today is that constructors can make the solutions additive, but when you think that you can with the first solution find the way to solve the other problems, then you have less pieces, but you have to think more,” he says. “To find the synthesis of four solutions in one piece, this is the difficult part.

For me, this is also the challenge. It’s not the simplicity that is the challenge, it is finding the solutions in a unique way.”

For Oechslin, finding a solution may be a result of something he saw over the course of the last 20 years of his watchmaking life. “Behind this challenge could be ten years of work,

using a solution that I found a long time ago, that I am just now applying,” he says. “Inside all this experience is the know-how to find the solution. It’s all a result of my experiu ence and my development.”

In a way, Oechslin thinks the complexity of some of the watches on the market is a way to justify the high prices they sell for today. “With more parts, you have more work and more expense in the execution of the pieces, which puts more value into the watch,” he explains. “This is like a diamond, which has more angles inside. A diamond that has a lot of facets has more work behind it but it is also more beautiful.

“A more complicated movement has a lot of pieces inside that are more beautiful for the eye to see, but you don’t really need all these pieces and parts,” he continues. “For me, the function is first and foremost – the design is functional and the function is good. At first blush, you might think a given design is too simple. With the wearing of the watch, you find the piece beautiful at last. It’s not at the start you think it’s beautiful, after you wear it you appreciate it and think it is a beautiful watch.” p Discover more at www.europastar.BIZ/Ochs-und-Junior

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MECHANICAL

Simply Talking Complications with STEPHEN FORSEY Keith W. Strandberg

G

Greubel Forsey recently had its ten year retrospective and this gave co-founder Stephen Forsey the opportunity to look back at how things have changed in the decade.

“When we started out, that week in Basel there were only one or two other multi-axis tourbillons (Thomas Prescher and maybe Franck Muller) - it was the beginning of a new era,” he says. “It was an interesting time, to bring the collector something different than what was on offer. It was quite challenging as well, because you had to explain everything.

Customer and journalists had never seen something so different. In ten years, it has really changed a lot. The industry had very crazy things, really exotic things, then in 2008, we hit the financial crisis and that gave a bang on the head to people and they came back into control.”

When Greubel Forsey opened its doors, they were in a unique position. There weren’t really any other companies like them, but the landscape has changed today.

“Like many things, when you start out its really difficult, then there are more and more people who jump on the same train, or they think they are on the same train,” Forsey explains. “After that, they wonder whether they wanted to be on that train or not. From the outside, it can look really tempting, this world of complications, but the reality is that it is something quite different. It is very much hard work, if you want to do something of a high quality, in terms of the originality of the creation and the

reliability and the real quality. What is the message you want to put across? In terms of that, what’s the objective, the story?”

For Forsey and his partner, Robert Greubel, their goal was to do something different from what had been done before.

“We started out with the conclusion that not everything had been done already, then from that statement we went into the depths of the subject, to really understand the history and confirm what we already knew,” he says. “From that conclusion, we started with a blank sheet of paper and developed what we have today. The only tourbillons in 1999 were miniaturized pocket watch movements, so you can understand how people said that the tourbillon was just a gadget, and from there came our own specific approach. This is not the easiest way to do it. If you want something simple, you don’t go too far away from the beaten track. The more different it is, the more difficult it is to get the right result.”

Greubel Forsey is looking to forge its own path in watchmaking, not to repeat what came before. “As long as you offer the collector value for money and you can explain why you have done something, then that’s fine,” he says. “You can make a simple, machine made tourbillon as long as you don’t pretend that it’s something else. You can’t take a four cylinder engine and pretend it’s a V12. If you have a purely commercial objective, that is your focus. For us, it’s about trying to add something to the history of watchmaking and take it further.”

The market for complicated watches is still strong, according to Forsey. “If a new complication is well presented, original and interesting, the collectors still love to discover new approaches and high levels of finishing,” he concludes.

“Complications have a universal appeal. Our first collectors were generally in their sixties. Today, what we are seeing is a generation jump and now our collectors are in their 40s. They might not have grown up with mechanical watches like the generations before, they are much more familiar with technology, yet despite that there is an appreciation and a love for the work of the watchmaker, for complications, for high finishing, for attention to detail. That is a very encouraging sign. We need to continue to surprise our collectors.” p Discover more at www.europastar.BIZ/Greubel-Forsey

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MECHANICAL

MOVEMENTS: WHO WILL SUCCEED ETA? Serge Maillard

From 2020, Swatch Group will be allowed to stop supplying third party clients with ETA movements. For Sellita and Soprod, the two biggest alternative manufacturers of entry-level and mid-range Swiss made calibres, the stakes are high. Probing the heart of Swiss watches.

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A number of movement specialists attended the most recent EPHJ trade fair, which took place in Geneva in June, including Technotime, Vaucher Manufacture and Dubois Dépraz.

However, two were notable by their absence: Sellita and Soprod, the biggest producers, in terms of volume, of Swiss made alternatives to ETA’s workhorses. Historically, according to various estimates, the Swatch Group subsidiary accounts for almost threequarters of the standard mechanical movements produced in Switzerland (i.e. 5 to 6 million units). Very few alternatives exist for entry-level and mid-range watches, particularly at less than 200 francs per unit. André Colard, co-founder of the Swiss microtechnology fair, which this year brought together around 825 exhibitors from the watchmaking, micromechanics and medical technology sectors, explained: “Soprod was there last year. As for Sellita, at the

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moment they have no particular need to advertise.”

Perhaps the two manufacturers had other things on their mind. There is little doubt that their eyes are firmly fixed on a certain date: 2020.

They have been under a great deal of pressure in recent years. After numerous steps forward, reversals and re-evaluations, last October the Competition Commission (Comco) and Swatch Group finally reached an agreement which in effect affects the entire watchmaking industry.

According to the exact terms of the deal, “the obligation to supply mechanical movements will remain in effect up to 31 December 2019.”

In 2014/2015 ETA is to deliver 75% of the average number of units sold between 2009-2011; this drops to 65% in 2016/2017 and 55% in 2018/2019. The company is also obliged to treat each of its clients “in an equal fashion.”

RACE AGAINST THE CLOCK Sellita General Manager Miguel Garcia expressed his relief. “Comco’s decision has given us a breathing space. All clients will be treated on an equal footing, and we are one of them.” In 2013, the La Chaux-de-Fonds company, which employs 500 people in Switzerland and Germany (compared with 300 a year ago – this gives an idea of the expansion under way), supplied 1.4 million movements: 800,000 Sellita calibres and 600,000 ETA calibres that were

“Comco’s decision has given us a breathing space. All clients will be treated on an equal footing, and we are one of them.”

I Sellita produced 1.4 million movements in 2013, making it ETA’s main challenger. The company is now hoping to design its own escapements.

assembled and resold. But Swatch Group has already started to reduce supplies to Sellita: back in 2011 the company reported total production of 1.6 million movements.

The race against the clock has begun: “Our aim is to replace the movements we buy from ETA with Sellita calibres by 2019. We therefore need to expand

our in-house production by at least 600,000 movements in that time.”

The company nevertheless remains dependent on the Swatch Group for its escapements – the components that regulate the watch, including the balance and balance springs. Here too, Miguel Garcia has reason to be relieved: Comco has ordered Swatch Group’s Bienne-based subsidiary Nivarox to continue deliveries, on the grounds that it does not have the necessary “visibility” to establish a timetable for reduction. Nivarox has an even greater monopoly than ETA, producing virtually 90% of the parts used by Swiss watchmakers. Sellita, which supplies around 250 brands, will be focusing its efforts on these strategic components, for in-house calibres.

“We are putting in place in-house production of escapements. But it is a very lengthy process.”

Sellita’s SW calibres are based on the features (dimensions and functions) of those ETA movements that are now in the public domain. The company has thus been able to develop direct alternatives to the Swatch Group’s best-sellers: the SW 200 can be used in place of the historic ETA 2824; the SW 300 is a clone of the ETA 2892; and finally, moving up the range, the SW 500 is a replacement for the 7750 chronograph movement. Many Swiss watchmakers use these models as a base movement, personalising them with complications. In the space of a decade, under the impetus of chief executive and owner Miguel Garcia, Sellita has built itself a reputation as a credible alternative and a worthy rival, from both a qualitative and a quantitative point of view, to ETA. It remains to be seen whether, by producing its own escapements, the firm can remain competitive on price.

Gérald Roden, managing director of Swiss Festina Group U SOPROD A10-2, an alternative to the ETA 2892

“Movement production is not an easy sector to be in, particularly when you decide not to copy ETA! We make everything in-house, except for the jewels, barrel springs and shock-absorbers.”

A MOVEMENT «BUBBLE»?

T The Soprod factory in Les Reussilles (JU).

Trailing far behind Sellita in terms of volume, with just over 100,000 movements produced in 2013, Soprod has the advantage of no longer depending on the Swatch Group for its escapements. “Movement production is not an easy sector to be in, particularly when you decide not to copy ETA! We make everything in-house, except for the jewels, barrel springs and shockabsorbers,” explained Gérald Roden, managing director of Swiss Festina Group. Headquartered in Reussilles (JU), Soprod can source components from other subsidiaries of the group, including MHVJ in the Vallée de Joux, for escapements, and MSE in Muriaux (JU) for balance springs.

“We are experiencing growing demand; new clients turn up almost every week,”

he confirmed. Nevertheless, caution still seems to be the rule in the watchmaking world, as far as the robustness of the alternatives to ETA are concerned.

Soprod is taking this in its stride: “Many clients want to visit our workshops to make sure that everything is indeed made in-house and on-site!”

Soprod’s SOP A10 movement is an alternative to the ETA 2892. Because of its lower production levels the company cannot, however, compete directly with ETA or Sellita on price. “The A10 is available at 180 francs per unit. We don’t offer different quality levels, we are equivalent to ETA’s ‘Top’ standard.”

The Festina group, which has around 400 employees in Switzerland, uses only a small fraction of its movements – 7% to 8% – for a “house” brand Perrelet. “Candino, on the other hand, uses ETA or Ronda quartz movements.”

The vast majority of production goes to third-party clients, including some major groups. Gérald Roden confirmed: “We have many loyal clients, but they are not too keen on being talked about by their subcontractors...”

Festina Switzerland is embarking upon a phase of rationalisation, which will

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involve consolidating certain activities in Bienne. Given that the company is not dependent on the Swatch Group, its boss has an understandably different reading of the Comco agreement: “This decision favours those brands that already had a quota with the Swatch Group. In a way, Comco is ‘sponsoring’ Sellita, which can continue to be supplied with escapements because it already has a contract with ETA. Because we make everything ourselves we have higher costs.”

For Gérald Roden, the impact of Comco’s decision in the long term is difficult to evaluate. “On the one hand, groups are now looking for alternative suppliers, which represents an opportunity for base calibre manufacturers like us.” But the MD paradoxically fears a movement “bubble”: a rather surprising scenario that flies in the face of current fears that are crystallising around the prospect of a shortage. “All movement users have over-bought, in anticipation of a reduction of deliveries by Swatch Group.

There is always the risk of a slowdown in the watchmaking industry,” he said.

“We won’t begin to see how things turn out until 2019, when supplies reach their final reduced level.”

Ladies’ movements in the spotlight

ALTERNATIVE FOR BALANCE SPRINGS Technotime shares this view.

Managing director Laurent Alaimo noted: “We could just as easily be looking at a feast as at a famine: if ETA decides to loosen the screws tomorrow, all the alternative projects will be in difficulty.” Based in Les Brenets (NE) and with 25 employees, the company produces 12,000 movements per year. But it also advertises a production capacity of 300,000 balance springs, for around ten clients, making it one of the rare alternatives to Nivarox – albeit on a far smaller scale (the Swatch Group subsidiary produces around seven million a year...).

While Technotime’s TT 651 and 651-24H modules are built on an ETA 2892 or equivalent base movement, the 718 (manual), 738 (automatic) and 791 (tourbillon) series are in-house movements. Nevertheless, Laurent Alaimo does not consider his company a direct alternative to ETA. The architecture of its products (twin barrels, five-day power reserve) and the volumes it supplies do not allow it to compete on price. In addition to its modules, the company offers

u

“If ETA decides to loosen the screws tomorrow, all the alternative projects will be in difficulty.”

Laurent Alaimo, managing director of Technotime

T TECHNOTIME TOURBILLON TT 791 and AUTOMATIC TT 738

“With the scheduled withdrawal of ETA deliveries, a number of brands have decided to move away from ladies’ automatic movements and turn to quartz,” notes Technotime CEO Laurent Alaimo. “We were planning a partnership, and had even launched a study on ladies’ movements, in response to some requests we had received. But the market is confused. The movements are very complex to produce because of their smaller size. For us, it would be the icing on the cake!”

The fashion has often swung between small and large movements (as it has in men’s watches, it should be noted): would it be permissible to use a men’s movement, or does it absolutely have to be smaller? For watchmakers, this is a dilemma. And for movement manufacturers, it represents a potentially damaging lack of visibility.

Regardless, several movement manufacturers are joining the fray, beginning with Sellita: “This year we developed a ladies’ calibre, the SW1000. It is an automatic 9-ligne calibre, a manufacture movement that is not based on an ETA calibre,” explained CEO Miguel Garcia.

His competitor Soprod is not to be outdone: it has announced that it is currently developing a ladies’ 8¾ movement. “Our eventual aim is to produce 100,000 to 200,000 units. We now have the capacity to produce everything in-house,” points out Gérald Roden, CEO of Swiss Festina Group. Why this decision? “It’s not just about investment. After the A10, we took the time to consider before launching our second movement. We hesitated between a chronograph, equivalent to the ETA 7750, and a ladies’ calibre. In fact, it’s possible we may launch both.”

Such considerations are also familiar to Vaucher Manufacture: “For the time being, our only ladies’ movement is a 10½,” notes CEO Jean-Daniel Dubois.

“Nevertheless, if we claim to be a manufacture, we owe it to ourselves to offer a complete men’s and ladies’ collection. We are therefore thinking about a 9½-ligne ladies’ calibre. A movement manufacturer must be able to offer the complete range.”

Ladies, watch this space!

manufacture movements starting at 575 francs. Tourbillons, on the other hand, cost up to 20,000 francs. It’s a wide price range. “Our target audience is precisely those clients who don’t want a standard movement. We work with those watchmaking development offices that were turned away by the Swatch Group. Our manual and automatic calibres are increasingly in demand by those brands that want to differentiate themselves from the ETA label.”

Technotime’s MD believes that the production of hairsprings could represent “an interesting growth vector” for the company, particularly for those brands that are planning to produce their own in-house calibres, independent of the Swatch Group. But, given that the company has already mastered this strategic component, why not, in light of Comco’s decision, go for the massmarket movement?

Laurent Alaimo does not rule out this possibility. “Partnerships could be considered, both upstream and down. But securing movements at wholesale prices requires major investment. And with a project of this scale it is difficult to generate a consensus among the brands.”

He points out that many projects for alternatives to ETA calibres are currently under discussion in the watchmaking industry, some with a view to more vertical integration, and others with a collaborative element.

But he also notes: “We are in contact with some of those involved, but the figures mentioned are extremely high, in the order of 20 to 50 million francs. And when you are looking at producing a calibre from A to Z, you quickly realise how few options there are for certain critical components.

Moreover, there seems to be relatively little input from the end clients

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in these projects.” Like Gérald Roden, Laurent Alaimo also notes that the reduction of supplies by ETA has led to a great deal of pre-ordering.

“We estimate that watchmakers and assemblers are holding two years’ worth of stock.”

INTEGRATED PRODUCTION At Vaucher Manufacture it has not yet reached the point where they are considering going down-market to position themselves as an alternative to mass-market calibres: “To compete with ETA’s best-selling movements, we would have to produce hundreds of thousands of units just to pay for the infrastructure investment,” points out managing director Jean-Daniel Dubois. Nevertheless, like Technotime, the manufacture is one of the rare companies outside the Swatch Group capable of producing balance springs.

And much more besides: via the subsidiaries of Manufactures Horlogères de la Fondation de Famille Sandoz (MHF) – Atokalpa, Elwin, Quadrance, Habillage, Les Artisans Boîtiers – Vaucher has access to dials and cases.

Ninety-five per cent of its movements are produced in-house: “The remaining 5% comprises the rubies, barrel springs and shock absorbers.”

Such integrated production appears to work. Offering a price range between 700 and 4,500 francs, the manufacturer has significantly increased movement deliveries, from 6,000 calibres two years ago to 22,000 today. Vaucher Manufacture produces five families of ‘VMF’ calibres. “Our aim is to reach 35,000 units five years from now. At the moment, 60% of our production goes to Parmigiani Fleurier and Hermès.

Our external clients include Harry Winston, Richard Mille and Corum.”

“To compete with ETA’s bestselling movements, we would have to produce hundreds of thousands of units just to pay for the infrastructure investment.”

Jean-Daniel Dubois, managing director of Vaucher Manufacture I VMF 3000 CALIBRE, 10½” AUTOMATIC

Companies in the MHF group, which employs 450 people, are gradually opening up to third-party clients, particularly the smaller brands. Last year Vaucher Manufacture Fleurier launched a ‘Private Label’ initiative, with prices starting at less than 1,000 francs, and a minimum order of just 25 units. This trend is nevertheless coming up against the ever-stronger tendency of brands to become manufactures in their own right. “This verticalisation could have an impact on us, and the market is certainly getting tighter.

Regulating organs nevertheless remain a lucrative niche.” It is worth noting here that the Concepto group of La Chaux-de-Fonds is also positioning itself as an alternative to the Swatch Group for escapements: you may remember that in 2012 its CEO, Valérien Jaquet announced a target of 400,000 deliveries per year.

A LONG SHOT Despite the obstacles, some smaller companies are trying to join the ranks of Sellita and Soprod as alternatives for entry-level movements. This is the case of Horlogerie Schild, which

“We represent an alternative for clients who don’t have access to the Swatch Group.”

I Lihua Mao, CEO of Horlogerie Schild

T The K1 movement is an ambitious new project.

“We’re looking at a minimum of 25 million francs over seven to eight years to guarantee solid industrial development,” says consultant Florian Serex.

was present at EPHJ with its new S280 calibre: a rival, it hopes, to the bestselling 2824. The movement is not a clone of ETA; it is inspired by a calibre of Chinese origin. “Our Soigné movement meets the requirements of ‘Swiss made’, with 60% of Swiss value. It is assembled in Orpund (BE). Our Chronometer, Soigné+ and Top movements, which have a Swiss escapement, correspond to 80% of Swiss value,” confirmed CEO Lihua Mao. Like others that have come before, the company wants to graduate from assembling movements to designing its own calibres.

“We started production a year ago and are in a position to supply 15,000 midrange movements this year to Swiss watchmakers. We are aiming for 50,000 units by 2015.” The Berne-based company, which has eight employees but intends to double that this autumn, offers

its entry-level movement at 90 francs.

The COSC chronometer comes in at 158 francs. “We are a little more expensive than ETA, because we have nowhere near the same production volumes. But we represent an alternative for clients who don’t have access to the Swatch Group, and who are looking for Swiss made calibres.”

Leschot (Felsa) of Neuchâtel has also announced a new movement based on the ETA 2824. Starting price: 125 francs. “It took us three years to develop the movement. We bought 85% of Technotime France, and brought production into line with current trends.

Today we are shipping a few thousand units, to brands such as Camy,” said managing director Miro Bapic, who attended this year’s EPHJ trade fair.

He makes no secret of his ambitions: 500,000 units within five years. Will these be for Swiss clients? “No, the great majority of our clients are in the Middle East and the Far East. They are prepared to order large quantities. In Switzerland, people come to me for series of 5 or 10 movements...”

Florian Serex, formerly of ETA and Vaucher Manufacture, has a great deal of experience in watch movements.

These days he works as a consultant, and is involved in an ambitious project entitled K1 (for Kaliber 1), under the aegis of Bienne watch component manufacturer Momoplus. “It’s not an ETA clone. We have developed an 11½ calibre with a width of 4.95 mm. It can be made in 18 different configurations, and because the final phase of assembly takes place from the dial side it offers great flexibility and the agility to respond quickly to the demands of the market. The movement can be equipped with a small or large date at 3 o’clock, power reserve at 6 o’clock,

and small seconds or central seconds at 9 o’clock.” The brand sources its hairsprings, a strategic element if ever there was one, in Germany.

Why take on such a risky project, even if the foundations were laid five years ago? “We realised at Momoplus that some clients were struggling to access movements. Most of them said they weren’t worried... But if they couldn’t source calibres, there was a significant risk that these clients would disappear!” Three hundred examples of the Series 0 are currently being manufactured to equip both Horage watches (a brand that is part of the extensive Momoplus galaxy), and also for its first third party clients. Target price: around 250 francs each. “Our business model is open: we could sell the project in its entirety, hand it over to a client or bring in partners.”

But the sums at stake and the time constraints give pause. “We’re looking at a minimum of 25 million francs over seven to eight years to guarantee solid industrial development. Many have already tried, and lost their shirts,” admits the project chief, well aware of the challenge he faces. “For the Series 0, we initially wanted to produce 5,000 movements this year. But we needed to find the financing. In theory we should reach that production level next year. 20,000 the following year, and 40,000 units the year after. If everything goes as we hope it will.”

MIGRATION TO SELLITA In La Chaux-de-Fonds, La Joux-Perret (bought in 2012 by Japanese group Citizen, which produces the famous line of Miyota calibres), continues to transform best-selling ETA movements such as the 2892 and the 7750, as well as the Sellita SW300 and SW500 movements. The company does not develop its own entry-level calibres. “We

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do nevertheless provide alternatives to ETA movements such as the 7753,” notes CEO Frédéric Wenger. Following Comco’s decision, the firm hopes to use more Sellita movements.

Another player in the movement business, Dubois Dépraz, is continuing a family tradition that goes back more than a hundred years. The chronograph specialist based in the Vallée de Joux focuses on modules and complications.

The SME, which employs 330 people including at its Arch (BE) profileturning subsidiary DPRM, works with movements bought directly from ETA, Sellita and Soprod, as well as with its clients’ own calibres. “We supply all the major groups without exception with complicated movements, to the tune of 100,000 units per year,” explains co-director Pascal Dubois, who represents the fourth generation at the head of the company.

Samir Merdanovic, CEO of Eterna Movement U ETERNA CALIBER 39, an alternative to the ETA 7750.

But what if the answer, in terms of finding alternatives to ETA, were to come from the watchmaking brands themselves?

Chronode of Le Locle also specialises in complications. But it also offers three in-house calibres. “We can’t, however, be defined as an alternative to ETA: our calibres are customised, we supply between 1,000 and 2,000 movements per year and our prices start at 1,500 francs,” notes founder Jean-François Mojon. The company, which employs nearly 70 people, has strategic elements covered via its subsidiaries DMP (profile-turning) and CHL (decoration).

But what if the answer, in terms of finding alternatives to ETA, were to come from the watchmaking brands themselves? In the wake of Comco’s decision, many watchmakers are developing their own infrastructure in a bid to become self-sufficient.

They could also supply third parties.

We contacted watchmaker Maurice Lacroix, who said that they already

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I CHRONODE C502

supplied their calibres to outsiders “on a small scale”. Eterna, which was bought in 2012 by China Haidian, intends to open up sales of its 39 family of movements to third parties as an alternative to the ETA 7750. The Granges-based company is taking this new departure, and the launch of its “Eterna Movement” unit, very seriously. “For us, it’s a

kind of return to our roots: we have a long history in movement design.

In the early days, in 1932, ETA was a division of Eterna,” notes Samir Merdanovic, head of the new unit.

“We began producing our own calibres again just fifteen years or so ago, on a small scale and solely for internal use. However, we realised that it was too expensive to make our own calibres unless we could sell them to third parties. Hence the creation of Eterna Movement three years ago.”

Preliminary discussions with third parties began just this spring. “Several brands have expressed an interest. This year, we will produce a total of 5,000 movements. Again, the Eterna brand takes priority.” Around 88 modules are available on the base calibre 39, which costs 200 francs. The GMT comes in at 260 francs and the chronograph at 500 francs. “We represent a good 100% Swiss made alternative. We hope eventually to produce 150,000 to 200,000 movements a year.”

The die is cast… p

SPOTLIGHT

THE WORLD’S FIRST HYBRID TIME-KEEPING SYSTEM BY CASIO The new G-SHOCK GPW-1000 by Casio not only receives Global Positioning System (GPS), but also radio wave time-calibration signals for accurate time keeping everywhere in the globe.

In 1983, an engineer’s passion to create an ‘unbreakable watch’ brought about the launch of the first G-SHOCK. Since then, this ever-evolving timepiece, using ‘toughness’ as its platform, has incorporated advanced technology and developed an amazing series of features.

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In its continued quest for the ultimate in toughness, the Triple G Resist construction of the G-SHOCK GPW-1000 features a reinforced structure to resist shocks, centrifugal force, and vibrations. A high strength and durability carbon fibre insert band, and a bezel with scratch-resistant DLC coating, ensure a level of toughness to withstand the harshest of environments.

Additionally, using CASIO’s latest technology, this timepiece has increased its time-keeping accuracy by creating a unique hybrid system that captures GPS signals and radio wave time-calibration signals transmitted from six stations throughout the world.

Whether the watch is in a dense forest or amongst desert dunes, marine environments or surrounded by buildings, the GPW-1000 keeps accurate time.

As flagship of G-SHOCKs Gravitymaster series the watch uses ultra-small motors for the hand drive mechanism to secure the space to mount the hybrid timekeeping system. To compensate for increased power consumption, the Casio G-SHOCK GPW-1000 features a new low-power consumption, highperformance GPS LSI, as well as a new shape of solar cell with high-efficiency output. Other features include a ceramic GPS antenna and fine resin case for high signal sensitivity and shock resistance.

MAIN FEATURES OF THE GPW-1000 T Fine Resin Frame

ABSOLUTE IN ACCURATE TIME KEEPING, ALL THE TIME • RECEIVES GPS SIGNALS FOR ACCURATE TIME AND AUTOMATIC DAYLIGHT SAVINGS ADJUSTMENT. Obtains location and time information using GPS signals: the watch references internal global map data in 500-metre resolution grids, to automatically adjust to the local time zone based on location information, and correct for daylight savings.

• RECEIVES RADIO WAVE TIME-CALIBRATION SIGNALS IN BOTH INTERIOR AND EXTERIOR LOCATIONS. Receives radio wave time-calibration signals transmitted from six stations worldwide (two in Japan and one each in North America, UK, Germany, and China) and in coverage areas, displays accurate time, even when indoors or surrounded by buildings.

• HYBRID SYSTEM DISPLAYS ACCURATE TIME ANYWHERE IN THE WORLD. Casio developed an algorithm that uses and analyses the location information based on GPS signals and

radio wave time-calibration signals. Receiving time information is prioritized by radio wave signals in radio wave coverage areas and GPS signals in noncoverage areas.

• EASY- TO-USE HYBRID SYSTEM Keeps time automatically using GPS signals and radio wave time-calibration signals. GPS signals are received when relocating to a place with GPS signal coverage, while radio wave time-calibration signals are received at night. When travelling to a different time zone, pressing a button quickly obtains the current location.

It takes just seven seconds to a minute for the watch to get accurate time from GPS signal time information.

• DUAL TIME DISPLAY FOR TRAVELLING ABROAD Dual time simultaneously displays the time in two separate cities - the current local time and a second time zone at a glance using the minute/hour hands and inset dial.

500m units GPS Algorithm world wide U 500m

ABSOLUTE TOUGHNESS IN THE HARSHEST OF ENVIRONMENTS

TECHNOLOGIES FOR TOUGHNESS AND HYBRID TIME KEEPING

• ADVANCED TRIPLE G RESIST CONSTRUCTION The new G-SHOCK GPW-1000 employs Triple G Resist construction to withstand shocks, centrifugal force and vibrations, delivering the toughness expected of a G-SHOCK watch with accurate time anywhere in the world.

• DURABLE CARBON FIBRE INSERT BAND The carbon fibre insert band features resin reinforced by a carbon fibre insert to ensure strength and durability.

• SCRATCH-RESISTANT DLC COATING The metal bezel features a hard diamond-like carbon (DLC) coating that is both scratch-resistant and sophisticated in appearance.

• GPS SIGNAL SENSITIVITY AND TOUGHNESS The watch features a ceramic circular polarized antenna to receive GPS signals together with an enlarged dial, making it sensitive enough to be able to receive time information.

The case frame is reinforced with strengthened fine resin so that the enlarged dial can be housed without increasing the case size. These refinements achieve the toughness that is expected in a G-SHOCK watch of a modest size.

• MODULE WITH BUILT-IN GPS ANTENNA The watch employs an ultra-small motor for the movement that drives the hands to create the necessary space for the GPS antenna and LSI. The GPS antenna, GPS LSI, and ultra-small movement are contained in a single module to achieve tough Triple G Resist construction.

• LOW POWER CONSUMPTION The G-SHOCK GPW-1000 features shadow-dispersing solar cells that resourcefully receive light and a lowpower GPS LSI for an efficient supply of power. Solar drive enables the watch to receive GPS signals thus avoiding battery drain and the low power consumption design makes it possible to employ high-luminosity LEDs, making the watch more practical and user-friendly.

DLC coating Bezel / Sapphire Crystal

THE G-SHOCK GPW-1000 HIGHLIGHTS

Carbon fiber insert band

• The G-Shock GPW-1000 is the world’s first wristwatch to use a hybrid system capable of receiving GPS signals and radio wave signals.

• By combining the reception of these radio signals and the GPS satellite signals, the watch can display the exact time – regardless of changes between summer and winter time – anywhere on the planet.

• Using Multi-Band 6 technology to receive the radio waves in the areas covered by this system (which is in turn controlled by atomic clocks and relayed by powerful antennas), it automatically switches to GPS reception where the signal is no longer available.

• The G-SHOCK’s Multi-Mission Drive enables each watch hand to perform multiple functions.

• The watch is fitted with a very low-energy GPS LSI chip that has been specifically developed together with Sony for use in a wristwatch. It is also equipped with a new shape of solar cell and motors that are 26 per cent smaller than before.

• These combined advancements have allowed Casio to create a high-performance device in the form of a classic analogue watch that is user-friendly whilst maintaining outstanding readability.

• The G-Shock GPW-1000 features: 40 time zones; stopwatch functions; countdown timer; alarm; calendar, power reserve indicator; solar-charging function; shock and vibration resistant and resistance to centrifugal gravitational force; water-resistant to 200 metres.

• A professional pilots watch with advanced hybrid GPS technology for absolute precision.

Presenting the G-Shock Gravitymaster GPW-1000. Made to resist the world’s most challenging environments.

Super LED Light

For more detail information, please visit world.g-shock.com/hybrid

MECHANICAL

Are IN-HOUSE MOVEMENTS Important?

Keith W. Strandberg

Lately, in-house movements are all the rage. Since the Swatch Group/ETA started talking about limiting supply, many watch companies have developed their own movements, making them in-house.

Due to the high investment needed for movement development and the relatively small volume, in-house movements necessitate a premium in price. So, given the increase in price, are in-house movements important? Well, it depends on who you ask...

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Frédéric Wenger CEO of Arnold & Son “In-house movements certainly matter, especially in high-end watches.

The reason is the exclusivity but also the fact that in-house movements can be an integral part of the watch’s design and characteristics. In such a case, the movement is designed from scratch to perfectly fit a design of the watch that was defined before creating the movement. This is how Arnold & Son works and what sets it apart from most watch brands.

“At the end of the day, a good watch is not only defined by knowing if every single component was made inhouse, but much more by its overall aesthetics and functionality as well as through its quality. Therefore, the whole discussion about in-house vs. supplier movement is often a little artificial and misses the point.

“We should never forget that at the end of the 1970s, when many brands went bankrupt, many of those brands had their own manufacture movements and too high costs. History might be in the process of repeating itself for some brands if the people making decisions neglect simple industrial thinking, of which two of the most important ones are the search for economies of scale and critical mass.”

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“Some customers and collectors need to have in-house movements as proof of competence.” G. Tetu Guillaume Tetu co-founder and CEO of Hautlence “Some customers and collectors need to have in-house movements as proof of competence. For us, it’s a question of creativity - some displays and ideas we put in our design are not available in a supplier catalogue, and we have the in-house knowledge to make it.

It’s a question of transparency, we are really honest about what we do and why we do it.”

I HL2 movement

by Hautlence

Sylvain Dolla president, Hamilton Worldwide “When you look at what we do, we do it thinking about the consumer. We didn’t develop our new movement for exclusivity; we wanted one that had a power reserve that lasted over the weekend. This was a simple consumer wish that we translated into an exclusive Hamilton calibre.

“The Jazzmaster Skeleton was the same - we wanted a skeleton under 1000 euros, and there was no existing movement capable of getting us to this price,” he adds. “We developed the movement for the Jazzmaster Automatic. For us, the volumes are high, and we are taking advantage of ETA and their industrial background.”

Eric Loth founder, Graham SA “As long as independent movement manufacturers exist in Switzerland, they will represent the best option for an independent brand like Graham to realize specific projects on order with their complete scale of manufacturing capability. Thanks to such access of diversified production sources, Graham could realize very ambitious movement concepts such as the Tourbillon Orrery Planetarium, the Silverstone RS Skeleton or the Endurance Chronograph movement concept.”

Serge Michel CEO, Armin Strom “For us, making our own movements is central to everything we do. It’s why we always reveal part of the movement to show the artistry, the

O Tourbillon calibre ATC 11 by Armin Strom

this mean movement suppliers should be considered or treated any differently than experienced artisans?

“Transparency is key for the future of any company. Today it is very easy for anyone to get hold of information, whether it’s in magazines, on the Internet, blogs or social platforms. We need to connect with our end-customer and nurture a relationship that is built on trust in a transparent world.”

Larry Boland president, Piaget North America “In-house movements are certainly important to the more sophisticated watch consumer - someone looking for authenticity and a heritage of quality and craftsmanship. When you’re engineering, the passion of mechanical watchmaking. We’re constantly challenged and energized to design a new movement from scratch and to keep reinventing. One example is our Tourbillon Gravity Fire automatic with a micro-rotor. It was the natural next step after we designed our first tourbillon in our Calibre ATC 11 movement, which is manual-winding. We saw that the double barrel could be replaced with a micro-rotor that allows us to still show a lot of the movement and its perlage and hand engravings.”

Manuel Emch president of Romain Jerome “I strongly believe there is still room for companies that supply manufactured movements as it’s an enormous investment for any brand. Movement suppliers have the know-how, experience and capacity to create high-end movements adapted to specific brand needs. On another note it’s normal for every maison to outsource artisanal work to specialized craftsmen; does

“Independence is creativity and having in-house capabilities makes us able to move quicker.” J. de Witt

T From left to right: ALTIPLANO 900P

by Piaget and MAESTOSO

by Christophe Claret

making an investment in a fine quality timepiece, the movement is often as big a factor as the design, so in-house means something. At Piaget, we are seeing more and more clients who are educated and come in knowing that we make all of our mechanical movements in-house.

“The barriers to entry in the manufacture arena are significant - not only the level of investment required, but the pool of skilled labour is limited. That said, you certainly are seeing more and more companies looking to beef up their manufacturing capabilities and I think that trend will certainly continue.”

Christophe Claret owner, Christophe Claret Manufacture “Certain companies inevitably do not have the potential to produce all of their movements. Nevertheless, I think that it is important that they are clear in their communication on this subject.

Moreover, it appears logical and coherent that manufactured products have a higher price point than products from cheaper sub-contractors, which allow more accessible prices.

“Having followed the evolution of watchmaking for 25 years, many brands have acquired their know-how to produce manufactured products by purchasing companies that already produced movements, or by integrating the production of the movements internally. It is necessary to understand that to design and produce movements with a very high-level of complication, the investment is considerable - be it in design, manufacturing or fine-tuning. This is why it is extremely difficult for a small brand to do this.”

Jérôme de Witt founder and designer of DeWitt “From the first day, I wanted to be free. I wanted everything in my control.

If my suppliers don’t deliver, we will die. The big groups want to squeeze everyone else, so we had to be independent. Independence is creativity and having in-house capabilities makes us able to move quicker.” p

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MECHANICAL

Unlocking ALTERNATIVE ESCAPEMENTS David Chokron / Watch Around

In the history of horology more effort has been devoted to the escapement than to any other functional part of a timepiece. In the 18th century, when most of the current systems were invented, the escapement was not only seen as fundamental, it was also a matter of prestige. Breguet, Graham and Leroy were among those who made it a special study in the hope of solving most of the problems of reliability and accuracy that plagued timepieces of the era, including marine chronometers. As the interface between the going train and the regulating organ, the escapement is where force and frequency intersect in a complex interaction. Improving its efficiency has repercussions on the entire mechanism, its power reserve, its precision, life span and prestige.

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STOP AND GO The escapement acts alternately as both a brake and a motor. On one side the energy stored in the mainspring barrel seeks release and has to be controlled.

On the other, the balance and spring assembly needs to be kept going by impulses that are as regular as possible in strength and frequency. The escapement controls the energy by releasing it at a steady rate dictated by the oscillations of the balance-wheel. The balance frequency of 3, 4 or 5 Hz is the fundamental division of time into sixths, eighths or tenths of a second. Upstream in the movement, the gear train translates these fractions into seconds, minutes, hours or longer periods.

Another way of understanding how it works is to consider the balance and spring as a computer master clock beating at a steady frequency. This phenomenon, known as isochronism, can only happen if several conditions are met, most of them involving the escapement. This acts like a semiconductor in two states, either on or off, depending on whether the escape wheel is in motion and transmitting energy or stopped. In fact the escape wheel is more often stationary than not, and a working watch movement thus spends most of its time stopped with the escapement locked. This horological paradox can be appreciated by using a high-speed camera that deconstructs the functions of a watch.

GREEDY FOR ENERGY The escapement consumes a lot of energy. Its mechanical efficiency seldom goes beyond 50%, which means that it alone uses up more than half the energy supplied by the barrel. The energy is dissipated in the various points of friction that are inseparable from the escapement’s operation. The friction between the pallet stones and the escape-wheel teeth accounts for

much of this energy, despite oiling, and efforts to improve escapements generally focus on reducing this source of friction. However, research into escapements more or less came to a halt after the 1850s. Furthermore, 250 years after the lever escapement was invented, its Swiss version was considered to have reached its optimal performance, making any further development pointless.

Its components are indeed easy to make and its operation is simple: the lever’s two pallet stones perform the twin tasks of stopping the escape wheel as a brake and impelling the balance as a motor. But the Swiss lever escapement’s decisive qualities are more likely its resistance to shocks and its small size — ideal for wristwatches.

WHY REINVENT THE WHEEL? Until the 1970s, Swiss watchmaking was producing industrial quantities of mechanical movements and had no inclination to reinvent the wheel. It was not until the 1980s that George Daniel’s patent for the coaxial escapement changed the situation. It was finally taken up by Omega in 1999, which only started using it in large quantities several years later. However, it was followed by a few highly sophisticated alternative escapements that can be divided into three types.

The first seeks to simplify the escape mechanism. The detent escapement invented by Pierre Le Roy in the 1760s, and recently reintroduced by Urban Jürgensen, has only one pallet stone in a single locking position that it leaves only momentarily. It lifts to release the escape wheel, which directly impulses the balance in passing, and then drops back to lock the escape wheel. Although the principle is straightforward, it is not easy to apply in a wristwatch that is constantly being shaken around.

DIVISION OF LABOUR The second approach is to reduce the contact between the lever pallets and the escape-wheel teeth. This is paradoxically achieved by actually increasing the number of pallets and points of contact, because the locking and impulse functions are separated. This is the principle behind the coaxial escapement and that of Audemars Piguet, reserved for its luxury pieces. Paul Gerber has also made tentative efforts in this direction.

The third solution is based on AbrahamLouis Breguet’s échappement naturel experiments with two linked escape wheels. They are locked alternately, in turn transmitting energy and information at each swing of the balance. The impulse is given directly to the balance, increasing the energy efficiency. Escapements by François-Paul Journe, Ulysse Nardin, Kari Voutilainen and Laurent Ferrier are based on this idea. Their versions differ in the size and shape of the lever and the escape wheels with which it interacts.

To a certain extent the Girard-Perregaux constant-force escapement works on a similar principle, enhanced by a unique energy-management system.

OVERCOMING INERTIA In parallel with these developments, research into component manufacture has also made its contribution to the performance of escapements. When the friction is reduced, inertia takes on a relatively significant importance. This is why quite a number of systems try to reduce weight with openworked escapement teeth and skeleton levers and by using titanium or, inevitably, silicon. At the same time LIGA technology and additive galvanisation achieve incredibly tight tolerances. If Abraham-Louis Breguet, Thomas Mudge or Robert Robin had enjoyed access to standard parts of such precision and reliability, their rather elaborate systems would undoubtedly have had a different future.

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ISOMETRIC ELLIPTICAL ESCAPEMENT

u CONSTANT ESCAPEMENT

This has been the de facto standard for mechanical watches since the 1920s. Its practicality made it ideal for the wristwatches that were then becoming the standard fashion. A lever with two arms in turn locks and releases the escape wheel. The balance is given an impulse at each semi-oscillation. However the impulses are not direct and its mechanical efficiency is low. Despite its straightforward configuration, the lever pallets slide for some distance along the escape-wheel teeth, creating a lot of friction. No matter, the entire watch industry has long gotten used to that. The best lever escapements can maintain amplitudes of 300° and an almost perfect rate.

Advantages: simple, cheap, robust, commonplace.

Drawbacks: generic, low mechanical efficiency.

Girard-Perregaux makes the only escapement that can be strictly described as having constant force.

Its looks are as unique as its operation. A slightly curved blade crosses a large wing-shaped frame, which is in fact the escapement bridge in silicon.

The oscillations of the balance wheel make the blade bend back and forth, releasing an escape wheel one tooth at a time. The sequence resumes when the balance-wheel changes direction. The blade only bends when the right amount of force is applied and releases the same amount of energy each time, providing a constant force.

With two impulse wheels it has many of the advantages of the double-wheel escapements.

Advantages: innovative, constant force, double impulse.

Drawbacks: expensive, complex, necessarily large.

u

u

u SWISS LEVER ESCAPEMENT

It didn’t last long. The isometric elliptical escapement was originally fitted to the calibre 175 movement of the Grande Reverso Triptyque and then abandoned

by Jaeger-LeCoultre. It turned out to be less accurate on the wrist than its conventional lever equivalent. It was a variant of the detent escapement and having failed to overcome its sensitivity to shocks, it remained delicate, even when installed in a tourbillon carriage for the Triptyque Reverso. The tourbillon is in fact not an escapement itself but an adjunct to escapements. Even the resources of a big firm like JaegerLeCoultre were not enough to make such an innovation reliable.

Advantages: high amplitude, prestigious, fascinating.

Drawbacks: inferior to the Swiss lever on the wrist, complex.

AUDEMARS PIGUET ESCAPEMENT

The lever of the AP escapement looks like the conventional lever but with a third pallet.

For Audemars Piguet, it’s a hybrid between the lever and the detent inspired by the Robin escapement. As in the coaxial escapement, the contact between the escape-wheel and the pallet is tangential. The contact surface is reduced from 0.4mm to 0.05mm. The escapewheel teeth are skeletonised to increase efficiency. This escapement is now only fitted to two movements, the latest of which dates from 2009. The first movement has a power reserve of 10 days and the second, a frequency of 6Hz. It’s a pity that such an efficient and flexible movement has been sidelined.

Advantages: efficient, effective, needs no oil.

Drawbacks: limited to grand complications, neglected.

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DUAL ESCAPEMENT

PIVOTED DETENT ESCAPEMENT

A single pallet stone at the end of a lever called the detent locks the escape wheel.

The passing balance-wheel lifts the detent for a fraction of a second, releasing the escape wheel. The detent, on a coiled spring, then drops back onto the escape wheel.

The impulse is given directly to the balance, but only at each oscillation, diminishing the steadiness of the energy flow. However this is compensated by the associated reduction in friction. Worn on the wrist the detent would trip at the slightest shock until Urban Jürgensen made a reliable version.

However it is not self-starting; you have to give the watch a twist to get it going.

Advantages: precise, effective and at last wrist-friendly.

Drawbacks: difficult to implement, rather experimental.

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Devised by Georges Daniels and acquired

by Omega, the coaxial escapement is the only mass-produced alternative to the Swiss lever. The penetration depth of the palette stones is far lower than that of the lever escapement due to an intermediate and coaxial escape wheel.

The friction is reduced because the contact with the stones is tangential. The movements might not gain in accuracy, but the period of their guarantee is extended from two years to four. Omega is quite satisfied with a COSC chronometer certification. The power reserve is around 55 hours for the basic movements.

Advantages: reduced friction, long life, economical, needs little oiling.

Drawbacks: limited consumer benefits, no improvement in power reserve.

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u COAXIAL ESCAPEMENT

As a new and tiny brand, Laurent Ferrier has adopted this variation of the échappement naturel to gain a place among the more specialised brands. His system features two impulse wheels on the same level, having teeth of a special profile for contact with the lever — reduced to a single rod without arms. This double impulse escapement differs from the Journe or Voutilainen versions mainly by the absence of pallet stones. This is because the lever is made of silicon.

Advantages: high amplitude, effective, different, self-lubricating.

Drawbacks: secret, similar to the other double-wheel escapements.

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u HIGH-PERFORMANCE BIAXIAL ESCAPEMENT

For a long time François-Paul Journe had a back-of-the-drawer design for a Breguet-type échappement naturel. His biaxial escapement has two impulse wheels on two levels released in turn at each semi-oscillation of the balance. The impulse is direct and the titanium lever is huge. It comes with a constant-force remontoir, a factor in improving the rate, so its advantages are difficult to assess in isolation. Unusually, it is self-starting when you wind the movement. The HPBE will likely be reserved for extra-special watches like the Chronomètre Optimum rather than be applied generally.

Advantages: effective, oil-free, self-starting. Drawbacks: very exclusive, complex.

ULYSSE NARDIN ESCAPEMENT

Ulysse Nardin introduced this escapement in the Freak watch in 2000, and it remains exclusive to this model. The company has since switched its research from escapements and regulating systems to the development of proprietary calibres. Like the échappement naturel, it’s a doublewheel escapement with direct impulse to the balance. Its lever is so short that it’s more like a plate. The system looks simple but has its subtleties. The tooth profiles are particularly sophisticated. It aims to reduce friction and is suitable for high-precision LIGA production techniques.

Advantages: no lubrication, prestigious, inventive, good mechanical efficiency.

Drawbacks: rare, complex, costly. europa star / MECHANICAL

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MECHANICAL

ENTRY LEVEL MECHANICALS Entrée into the Horological Lifestyle Keith W. Strandberg

For centuries, the mechanical watch was the only way to tell time. From when it was introduced in pocket watches until the 1950s and ‘60s, there was really no other choice (other than a water clock, an hour glass or a sundial).

Then came the electric watch (remember the Hamilton Ventura?) and then quartz, which almost succeeded in killing the mechanical watch industry completely.

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Luckily, some mechanical watch companies persevered, continuing to manufacture automatic and hand-wound movement watches in the face of the popularity of the quartz watch.

Then, in the ‘90s, the pendulum swung around and mechanical watches became extremely popular once again. Certainly, quartz watches exceed mechanical watches in terms of volume, but when it comes to value and price point, mechanical watches are very much in the lead.

Though it doesn’t get as much press as more expensive or complicated watches, one very important segment of the watch industry is the opening-price point, or entry-level, mechanical watch. This a very broad segment, because for some companies, like Fossil or Swatch, their opening price point for a mechanical watch might be just over $100, while for other companies, like Jaeger-LeCoultre or Patek Philippe, the opening price point is in the thousands or tens of thousands of dollars.

For this report, we are going to focus on watches that are often customers’ first foray into mechanical watches.

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DEFINITION OF A MECHANICAL WATCH

FIRST MECHANICAL WATCHES

First off, let’s define mechanical watch: some customers think a mechanical watch is a hand-wound watch, but in truth, a mechanical watch is any watch, hand-wound or automatic, that keeps time mechanically (not electronically, like a quartz watch).

Most customers start their watch life with a quartz watch, then graduate to a mechanical watch. Some companies target this customer exclusively, while others have entry-level offerings then hope that their customers climb the ladder of their collection.

“To us the entry level is important because we address a lot of first time buyers for traditional Swiss watches. Working on economies of scale and innovation are the key to maintaining prices at an affordable level for us at Hamilton.”

Sylvain Dolla, president, Hamilton Worldwide

O HERITAGE RANGER

by Tudor T DS PODIUM CHRONOGRAPH

by Certina

A company like Tudor has affordable high-quality Swiss-made mechanical watches as its core business - 100% of Tudor’s offering is mechanical. On the other hand, Baume & Mercier has a mixture of mechanical and quartz, and the company strives to keep its prices affordable on the mechanical side.

“Baume and Mercier prides itself on offering a wide assortment of men’s and ladies’ mechanical timepieces that are luxury within reach,” says Rudy Chavez, president, Baume & Mercier North America. “This has always been our mission for we know that many of our watches are either given or received as gifts to commemorate

personal milestones, so the timepiece must be of the highest quality and yet accessible in terms of price point.

Many customers learn to appreciate the finer points of mechanical timepieces at an early age and often build a watch wardrobe over time that can include special one-of-a-kind and more complicated timepieces. But all must start somewhere so offering this segment presents the consumer an opportunity to own a piece of history and technical know-how for a few thousand dollars.”

Hamilton, thanks to the power of the mighty Swatch Group, is a leader in mechanical watches priced 500 – 2,000 Swiss francs. “To us the entry level is important because we address a lot of first time buyers for traditional Swiss watches,” says Sylvain Dolla, president, Hamilton Worldwide. “Working on economies of scale and innovation are the key to maintaining prices at an affordable level for us at Hamilton.”

Certina, also in the Swatch Group, focuses on the entry level as well.

“In order to use and to assure the capacity of the important industrial

PROMESSE by Baume & Mercier

base of our group, it’s important to have brands which are in a volume price segment,” says Adrian Bosshard, president, Certina. “Additionally, it’s a fact that especially in China and other Asian markets automatic watches are the main segment in the Swiss watch industry. Additionally we feel that in Europe as well, the automatic watch culture is growing more and more.”

WHY THE INDUSTRY NEEDS ENTRY-LEVEL MECHANICAL WATCHES Not everyone is going to jump right in, buying a Cartier or Vacheron Constantin timepiece. Very rarely is a high-end watch going to be a first watch purchase, so the industry has to provide affordable entries into the mechanical world.

Oris is a brand that has a reputation for value, and 100 per cent of its collection is mechanical. “Everyone has to start somewhere…not everyone is going to buy a $10,000 watch right off the bat,” says V.J. Geronimo, CEO North America, Oris Watches. “There

u europa star / MECHANICAL

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are people who can afford nice things but also appreciate good value. We are many times the ‘starter watch’ for the collector or for that person who wants their first really nice watch.”

Entry-level products are often the stepping stone to more expensive timepieces. “The entry-level segment represents a great opportunity for the entire watch industry,” says Sascha Moeri, DEO, Carl F. Bucherer. “An attainable price point enables more people to become inspired by the fascinating qualities of mechanical watches. The more someone experiences the secrets of fine mechanical timepieces and the technological achievements within these masterpieces on the wrist, their interest and captivation grows.

“As a premium brand, Carl F. Bucherer is known for outstanding mechanical watches of the highest quality – in the high-end segment as well as in the entry level,” Moeri continues. “For us, quality isn’t a matter of price, but a crucial part of our brand DNA. We are one of very few watch manufacturers who have a diverse yet exquisite product and price portfolio. This means a customer could buy the beautiful Alacria Swan on one occasion, and later

T BIG CROWN PRO PILOT Collection

by Oris

“Everyone has to start somewhere...not everyone is going to buy a $10,000 watch right off the bat. There are people who can afford nice things but also appreciate a good value.”

V.J. Geronimo, CEO North America, Oris Watches

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choose a Patravi ScubaTec sports watch in a totally different price range. Hence, the affordable mechanical watch segment is very important to us.”

As mentioned before, the majority of brand communication is on the higher priced, more unique product, building a sense among non-watch people that mechanical watches are high priced and out of reach.

“High quality mechanical watches should not be reserved to an exclusive high net worth and ultra-high net worth clientele,” says Dr. Renato A. Vanotti, CEO of Manufacture Vulcain and Chairman of the Excellence Holding.

“This clientele – as nice as it is to have them – makes the producers as well as the retailers very vulnerable. What might be today a very strong buyer seg-

ment might disappear overnight – see the effect of the Chinese anti-corruption law. Establishing a broader base of clients which have the same appreciation for mechanical watches but might not have the same financial strength (or not yet) makes production capacity and cash flow more stable.”

Once customers get hooked on mechanical watches, a whole new world is opened up for them, and they begin to climb the price ladder to more to more sophisticated timepieces. Sometimes that continues within their brand of choice, or they step out into other brands.

“Once a customer gets to know our amazing mechanical watches, they become inspired by the mechanical details found under the beautiful surface,” says Carl F. Bucherer’s Moeri. “I believe that no one is immune to the fascination of mechanical timepieces.”

PRICING IS CRITICAL Swiss mechanical movements are expensive and if the industry is not careful, entry-level mechanicals could be priced right out of business, according to André Bernheim of Mondaine and Luminox.

“I believe that no one is immune to the fascination of mechanical timepieces.”

Sascha Moeri, CEO, Carl F. Bucherer “For credibility reasons, brand positioning and perception, it is important to carry automatic watches,” he says.

“However, to talk of entry price level in the same context as automatics is somehow odd - automatic watches have become so expensive in Switzerland over the last years, thanks to an almostmonopoly, that we should not talk of an entry price level when talking about automatic watches. In order to keep retail prices somehow reasonable, and to avoid being so much more expensive as brands that have their in-house movement factories, we are squeezing our margins on automatics.”

Keeping the price of entry-level mechanical watches down is a challenge for every company, but especially so for smaller companies.

“It is very, very difficult for a small brand to keep prices down,” says Vulcain’s Vanotti. “We do not have the advantage of leveraging production

I PATRAVI SCUBATEC

by Carl F. Bucherer T AVIATOR INSTRUMENT

by Vulcain

cost as big brands do, nor can we use synergies. As we are facing continuous difficulties to get retail space as big groups are forcing the retailers indirectly not to use premium space for other brands than them, we not only have to offer better margins to the retailers but also invest more money into advertising and communication.”

Price is a huge factor, especially at the entry level. Too high and customers won’t buy into mechanicals, sticking to their quartz watches, or, heaven forbid, their smart phones.

“If - and I do hope so - the Swiss movement industry gets more competition on these type of movements, I would hope to see more reasonable prices for movements going forward,” says Mondaine’s Bernheim. “Japan still is selling good quality automatic movements for a fraction of the Swiss prices, which shows that it can be done. For the time being, I am afraid that movement prices will continue to increase, and the lack of supply and increase of demand in a quasi-monopoly system will continue.”

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With the right mixture of marketing and pricing, mechanical watches will continue to be the entrée to the fine watch industry, helping transition customers into wearing better watches.

“In my 16 years with the brand I have met many clients that own several Baume & Mercier timepieces, some of which still wear our brand and some that have amassed a collection of fine timepieces from various fine Swiss brands,” says Chavez from Baume & Mercier. “We will continue to focus on this segment given its importance for Baume & Mercier. Our goal is to continue to strengthen the opening price point mechanical segment by introducing both men’s and ladies’ timepieces that are true to our DNA – timeless and elegant watches that can be gifted or received to commemorate those special moments that mark our lives.”

Hamilton is doing all it can to invigorate the entry-level mechanical segment with innovative product, both in design and engineering. “In the past 10 years we have seen a drastic increase in the interest in mechanical watches at Hamilton,” says Hamilton’s Dolla. “At

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I From left to right: MODERN MARINER AUTOMATIC 6500

by Luminox and OFFICIAL SWISS RAILWAYS WATCH

by Mondaine

T JAZZMASTER VIEWMATIC SKELETON

by Hamilton

Hamilton we always go the extra mile to surprise our customer. This is reflected in the detailed decoration and the improvement of our typical power reserve of 80 hours this year. This year we launched four new exclusive Hamilton automatic movements: H-10, H-30, H-40 and H-22. The kinematic chain in the H-10, H-30 and H40 is refined to increase the typical power reserve to 80 hours. The new rotor, largely skeletonised, has an alternating

snailed and pearled pattern. The new Hamilton H-22 movement allowed us to play with its eye-catching design architecture by displays like the offcentre positioning of the small second, as mentioned above.”

EDUCATING CONSUMERS Talking about companies keeping mechanical watch prices down and coming up with interesting products is nice, but it’s equally important for retailers to educate customers about the benefits of mechanical watches and to continue to cultivate interest in these timepieces. This takes some work, as someone who has been a quartz customer often doesn’t see the appeal straight away. When an entrylevel mechanical watch is only a few hundred dollars/francs/Euros more than a high quality quartz, all it takes is a nudge in the right direction to get a customer hooked on mechanicals.

The entry-level mechanical watch segment is a critical one for the future of the luxury watch industry.

Interesting and affordable mechanical watches bring more customers into the fine watch world, helping to secure its future. p

WORLDWATCHWEB

What is Driving Online Interest for THE LUXURY WATCH INDUSTRY’S “HIGH RANGE” BRANDS? Tamar Koifman and Ines Lazaro, Digital Luxury Group

The WorldWatchReport™, the leading market research in the luxury watch industry, evaluates 62 brands at all levels of the luxury spectrum from haute horlogerie to entry-level. As the media often tends to focus on the top end of luxury brands, this article takes an approach focused on the more accessible brands, and in doing so have uncovers insights related to what’s driving the market...

In the report, brands are categorized into five categories. These are: Haute Horlogerie, Watch and Jewelry, Couture, Prestige, and High Range. Thanks to the contribution from several watchmaking industry specialists (media, brands, retailers), the following criteria have been taken into consideration to define these categories: brand positioning, core price range, and the competitive environment.

I

RADO Rado is the most sought-after brand within the High Range segment of watch brands. Capturing almost a quarter of all searches for brands in this category and growing at a rate of +16% year over year, it’s notably searches for women’s watches in China that are driving the success.

While not as well known in Europe or the US, 39% of interest for Rado comes from China, and this interest has been growing at an astonishing +41% year on year. Rado’s success on the Chinese market, explains its number one position in the High Range category.

Jubilé, Diastar (aka Original), and Ceramica models are the most popular worldwide. These models are primarily dedicated to women, which confirms the trend seen recently at global level of growing interest for women watches.

A zoom in on the High Range category, which features brands such as Baume & Mercier, Bremont, and Ebel, allows us a deeper glimpse at brands that are capturing the public’s attention, and a share of their wallet.

The WorldWatchReport™ uses a methodology by which search volumes are analyzed at an international scale in order to have a transparent and unbiased view of the brands and topics of most interest to luxury watch consumers.

At a global level, interest in the High Range category has increased by 6% in the past year. The top most sought-after brands of the category are Rado, Longines, Montblanc, and Tudor. Searches for this category come primarily from China (29% of all searches), followed by the US (15%) and the UK (9%).

I CERAMICA JUBILÉ by Rado

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MOST SOUGHT-AFTER “HIGH RANGE” CATEGORY BRANDS

RANK BRAND

% SEARCHES

Y/Y EVOLUTION

1

Rado

22%

16%

2

Longines

22%

-6%

3

Montblanc

12%

42%

4

Tudor

8%

32%

5

Raymond Weil

6%

-4%

6

Maurice Lacroix

4%

-6%

7

Sinn

4%

-4%

8

Baume & Mercier

4%

0%

9

Bell & Ross

4%

-14%

Bremont

2%

10

65%

Category benchmark

+6%

© Digital Luxury Group – WorldWatchReportTM – Global Search Volume in Google and Baidu – January / March 2014

LONGINES Interest for Longines declined by 6% year on year, this was mainly explained by a decreasing interest from Chinese during the first quarter of the year compared to the same period a year ago. Indeed, interest in China went down by -17% and as China is where most of the demand originates from, this has some important consequences. Longines lost the number one spot on the most sought-after ranking. Now the second most sought-after brand of the category, behind Rado, searches for Longines are still high (22% of all searches).

I HERITAGE BLACK BAY

by Tudor T MEISTERSTÜCK HERITAGE PERPETUAL CALENDAR by Montblanc

TUDOR Tudor’s strong appeal and recent growth within the High Range category (+32% from last year), stems from a strong interest in its Heritage Black Bay model, representing one in four searches for Tudor watches. This iconic model is primarily sought by consumers in the US, Germany, and France.

This clearly shows how important China is for Longines’ business. This makes sense given Longines hold of the market over the past few years. Appealing to Chinese tastes for classic styles with history and a price point to attract the growing middle class, Longines does well despite losing ground to Rado.

Tudor’s strong comeback in the US (+96% y/y) aligns with it’s 2013 re-entry into the US market after ceasing operations in 2004. US searches now account for 20% of all interest online.

MONTBLANC

IN SUMMARY

Montblanc’s (a Digital Luxury Group client) impressive +42% growth number is explained by a huge increase in the searches for Montblanc originating from China (+128% from last year). Price related queries have also increased at a rate +33% since a year ago, showing a more specific interest in potentially buying.

Interest for specific models, are slightly down from what they were a year ago. The only exception being the Meisterstuck which is up +28% as compared to this period last year.

10 8

Analyzing global interest in the High Range category of watch brands shows that despite what might be said about sales in China, interest is very strong and continually growing. Partnered with a renewed interest in watches for women, 7 opportunities are abound. p 6

The WorldWatchReport™ is produced by Digital Luxury Group, in partnership with Europa Star and the Fondation de la Haute Horlogerie. More information is available at www.worldwatchreport.com

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BRANDS

A COURAGEOUS TRIO A short tribute to three very different brands that dare to believe: VALBRAY, CHRONOSWISS and ATELIERS DEMONACO D. Malcolm Lakin

Competition is rife in most markets: the big groups, through guile and clever marketing, dominate displays in retailer’s windows; attracting consumers through eye-catching and meaningful advertising is über-costly; finding and recruiting a slick and unemployed salesman is akin to cornering the Higgs boson and if you include the economic fact that spare cash is at a premium today, you can’t help asking the obvious question: what is it that makes small independent watch companies believe that they can not only conquer a corner of the watch market, but also make enough spondulix and shekels to thrive? Self-belief? Innovation? Almost certainly both, but you have to add a very large sprinkling of courage.

I’m sure that of the more than three hundred or so Swiss watch companies and the same amount of ‘foreigners’ at the last Baselworld, there were dozens of small existing brands and newcomers trying desperately to get into the action, find enthusiastic distributors, make their mark, establish their brand. They participate with hope in their hearts and watches in their pockets and despite being tucked away in some corner of the more than 140,000 square metres of exhibition space available, they are optimistic about being noticed, discovered, applauded, acclaimed in the press and even fêted.

Here’s a tribute to three of them.

VALBRAY OPENS ITS SHUTTERS Côme de Valbray and Olga Corsini met by chance in 2009 and realized that their interests in horology, design and creativity were closely allied. They spent two years researching, developing and patenting an innovative diaphragm system for a dial, a technique whereby shutters open to reveal a glimpse of some of the mechanics of their first intriguing timepiece.

Their idea is encapsulated in a phrase they quote by André Malraux: ‘The truth about a man can be found in what he hides.’ They continue the explanation, “This sentence has been our inspiration. What we hide is an intimate part of our personality, of our thoughts and dreams. It is what we decide to share with others. Our vision has been to create a watch able to hide or unveil a personality that is not noticeable at first sight.

Our desire is that the owner becomes the guardian of these secrets. The watch we propose is fully designed, developed, engineered, and tested in-house. This for us is the essential process that allows us to propose a creative and innovative

C

I OCULUS MINOTAURUS by Valbray

Olga Cosrini & Côme de Valbray

“The truth about a man can be found in what he hides.”

I From left to right: OCULUS CHRONO ARGENTIQUE GREY and EL1 CHRONOGRAPH

Discover more at www.europastar.BIZ/ Valbray

product without compromises. Our objective and commitment is to achieve the highest level of craftsmanship and quality.

For this reason we … search for new and better solutions and never settle for what we do not believe to be the best. Our design is a combination of classical and avant-garde horology ... our watches draw on the different emotional dimensions: the way it looks, the way it feels, the way it sounds. The intent is to craft a watch able to convey pure pleasure.”

And thus the Oculus Collection was born. Comprising 16 ultrathin blades integrated into a rotating bezel, the diaphragm opens and shuts as the waterproof bezel, which functions entirely independent of the watch’s chronograph movement, is turned.

Since then Valbray has introduced the Grandateur Collection and this year saw the launch of the Oculus Minotaurus, the Oculus Argentique Grey in the Oculus Chrono series and a special Limited Edition, the EL1 Chronograph, to celebrate 100 years of Leica Photography.

The Oculus Minautaurus, inspired by the mythological Greek legend of King Minos of Crete imprisoning the Minotaur in a maze, the timepiece has sixteen diaphragm blades that open to reveal a three-dimensional labyrinth with a white ceramic ball that moves freely in the furrows – the goal being the centre circle.

The 43 mm timepiece is in either stainless steel with a PVD coating or in 18 carat red or white gold and features hours,

minutes and seconds. The mechanical automatic movement is Swiss with a 42-hour power reserve and the watch is water-resistant to 50 metres. The back of the Oculus Minotaurus has an engraved depiction of the mythological Minotaur.

The Oculus Chrono Argentique Grey is another Limited Edition nod to the contrasting black and white colouring of Leica and Contax cameras. The 46 mm titanium bezel has white markings and contrasts with the black of the internal bezel, the crown and chronograph push-pieces. It features hours, minutes and a chronograph with a 44-hour power reserve and has a pleasing multi-layered honeycomb grid. Water-resistant to 50 metres, the watch is completed with a brown alligator strap with white stitching and a deployant buckle.

Finally, the Valbray EL1 Chronograph, a collaboration between u Leica and Valbray – or perhaps to more exact, between Alfred Schopf, the CEO of Leica Camera AG and Côme de Valbray, the CEO of the watch brand.

To celebrate the 100th anniversary of Leica, a Limited Edition of 100 pieces of the EL1 (EL for Ernest Leitz of the founders of Leica) will be produced – 50 in sanded titanium and 50 with DLC coating (diamond-like carbon). The dial is reminiscent of some Leica features with the date at 3 o’clock, the minute counter at 12 o’clock, the hours at 6 o’clock and the seconds at 9 o’clock. The 4.5 appearing on the dial evokes the aperture of the first Leica camera. The caseback has a sapphire crystal and reveals the automatic Swiss movement and its open-work rotor.

Valbray timepieces range from 9,500 Swiss francs to 24,500 for the red gold models. Four years ago Côme de Valbray and Olga Corsini believed in their combined creative and technical talents and produced an innovative timepiece with a distinctive look and a unique operating system. Today, hard graft, self-belief and that sprinkling of courage is bringing them and their timepieces the recognition they so richly deserve.

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Oliver & Eva Ebstein

THE RESURGENCE OF CHRONOSWISS Oliver and Eva Ebstein – Managing Director and Chairman - took ownership of Chronoswiss in 2012. Neither having been in the watch industry prior to that date, they showed their courage by daring to believe that they could revitalize a brand that is in one of the most competitive price ranges - 3,000 to 4,500 Swiss francs.

Well before the takeover the brand already had a cash flow problem and then came the economic downturn which obviously had its repercussions. There naturally followed a slump in sales that wasn’t helped by the brand’s failure to modernize its collections and therefore appeal to a younger, perhaps more demanding clientele. In short, Chronoswiss was going through a mid-life crisis.

Gerd-Rüdiger Lang, who founded the Chronoswiss brand in 1983, had been searching for a buyer for his company for some time. He wanted to retire from the day-to-day running of the business but despite receiving several offers he refused to sell it to any company or third party he felt would simply buy the name and completely change the brand’s DNA and raison d’être: manufacturing quality mechanical watches.

Oliver and Eva Ebstein convinced him of their sincerity to do just that and the deal was done with Lang remaining as an advisor. The brand’s head office was moved from its Munich base to Lucerne where new offices, a service centre and workshops for enamelling and guilloché are being installed – thus eliminating the need to subcontract these specialized crafts.

The Ebsteins, now in their second year of ownership, have given Chronoswiss a new lease of life. Whilst maintaining certain typical Chronoswiss features such as the coin edge finish on the cases and the onion-style crown, we are now

O

50 BRANDS / europa star

seeing atypical characteristics such as a sporty appearance and stainless steel with DLC coating. To this you have to add the updating of the standards that helped establish the brand as a leading manufacturer of chronographs.

Chronoswiss is now manufacturing around 5,000 watches a year and its aim is to reach and stabilize its production at 10,000 pieces. To do this, the brand’s customer base has been maintained but as is clearly visible with the new models, the aim is to extend that base to aim at a clientele seeking the technical know-how of Chronoswiss with a more modern, sporty and colourful look.

Take for example the 44 mm Timemaster Retrograde Day: it has a very modern youthful appearance with its black DLC coated case, polished bezel with white numerals, galvanic black dial with bold white Arabic numerals and black rubber strap. And yet there is a big date aperture at 12 o’clock and a retrograde day indicator at 6 o’clock with a red pointer and a sweep white seconds pointer.

In the same Timemaster collection there is an eye-catching skeleton chronograph, so typical of the brand, but now with an extremely bold Day Date Chronograph in stainless steel

I TIMEMASTER RETRO

by Chronoswiss

T From left to right: TIME CHRONOGRAPH SKELETON and CHRONOGRAPH DAY DATE

by Chronoswiss

THE ATELIERS DEMONACO CHALLENGE I From left to right: SIRIUS ARTIST and SIRIUS RETRO DAY/DATE THE THREE APES (front and back) by Chronoswiss TOURBILLON CARRE D’OR

by Ateliers deMonaco

Discover more at www.europastar.BIZ/ Chronoswiss

–that will appeal to both mechanical watch aficionados and a generation of more contemporary enthusiasts looking to make a statement via their wrists.

For lovers of the arts and crafts in watchmaking, there is the Sirius Artist watch, a beautiful combination of royal blue and translucent enamelling on a sterling silver dial that reveals the striking guilloché work. In stainless steel or red gold, the 40 mm manually wound watch has a Swiss movement with a 48-hour power reserve with small seconds at 6 o’clock. The Sirius Artist is waterresistant to 30 metres and comes with a crocodile leather strap.

Further proof of Chronoswiss highlighting its new approach and capabilities is the unique watch ‘The Three Apes’ made for the Only Watch Charity auction in aid of the research on Duchenne Muscular Dystrophy.

The timepiece is decorated with guilloché and enamelling featuring the three apes and given a further three dimensional aspect via the use of a translucent enamel. The watch has a transparent caseback that reveals the manually wound skeletonized movement with the bridges and plates enhanced with a guilloché finish. This unique piece sold in the auction for 42,000 euros!

So there you have it. A new and highly motivated team, prepared to take the once ailing brand into new frontiers whilst maintaining its original DNA. A courageous, yet carefully planned beginning for this esteemed brand.

When the Ateliers deMonaco was launched in 2009, the vision of the founders was to create a high-end watch brand despite that at that particular moment in time there was a small but obvious crisis within the watch industry. Against advice to the contrary, the launch took place with an in-house creation, the Grand Tourbillon u Xtreme Precision timepiece carrying a price tag that could have easily broken the bank at Monte Carlo. Audacious or imprudent?

Confident or foolhardy? I think not. How about courageous?

Founded by Pim Koeslag, Robert van Pappelendam and Peter Stas, their concept was to create new technology, new standards, a legacy the brand calls Nouvelle Horlogerie.

In the five years since the name first appeared, innovative, dramatically bold, yet elegant and wearable timepieces have appeared regularly: a square Grand Tourbillon Repetition Minute in rose gold and titanium or white gold and titanium, followed by a round version; a Quantième Pertpetual in titanium and gold, or white or rose gold with all functions being controlled from the crown; a Tourbillon Carré d’Or in white or rose gold with a stunning mother-of-pearl centrepiece set into the onyx dial and, for the brand, the discreet Ronde de Monte-Carlo with its simple purity of line.

Then came Ateliers deMonaco’s first ladies’ watch, the scintillating showstopper appropriately named La Sirène, a 39 mm white gold watch with 48 lozenge-cut blue topaz stones in

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51

O LA SIRENE

by Ateliers deMonaco

a floral setting around a white mother-of-pearl centrepiece.

The bezel is set with 46 baguette-cut blue topazes and the white gold crown is also set with a topaz. This exquisitely feminine model is equipped with an automatic movement and through the sapphire crystal caseback one can appreciate the decorative techniques used on the chamfered bridges and the engraved rotor.

All the brand’s timepieces are designed and manufactured in-house in Limited Editions – some as few as 8 and some rising to 88 pieces. However many are produced, the same modern technology and craftsmanship is applied with more than a hundred hours of work going into the polishing, engraving and finishing of each watch.

With a starting price of 15,000 euros for the elegant Ronde de Monte Carlo and gently climbing through the 40, 50, 60, 70 and 80 thousands through to 214,000 euros for the 46 x 50 mm Grand Tourbillon Minute Repeater in white gold with

I The founders of Ateliers deMonaco: Pim Koeslag, Peter Stas, Robert van Pappelendam T GRAND TOURBILLON XTREME PRECISION OCULUS PETITE MINUTE

by Ateliers deMonaco

its Roman skeleton dial, neither the prices nor the workmanship are for the faint-hearted.

The latest offering is a new edition of the Grand Tourbillon Xtreme Precision Oculus Petite Minute, a watch that won’t win the laurel for the most mellifluous name, but may well go on to win many other accolades.

First a short explanation of the ‘oculus’, and I quote: ‘An oculus denotes a circular opening in an otherwise solid dome or wall originating out of the Byzantine and neoclassical architecture that allowed light to come through and subsequently would naturally draw the attention to this opening of light.

It is also known as an “oeil de boeuf” in French or simply a “bull’s-eye“. Given the sapphire bridge holds our 60 seconds Tourbillon’s cage as the bull’s eye of the further solid and more classical looking Côtes de Geneve decorated dial, we only felt it natural to call this our Oculus!’

This powerful looking timepiece is equipped with an in-house developed and patented Xtreme Precision Tourbillon movement with automatic bi-directional winding. There is curved chamfered and hand perlage decoration on the bridges, hand engraving on the tourbillon cage, a sapphire tourbillon bridge and a silicium escapement wheel and lever. The functions are hours, minutes, with a small seconds hand above the tourbillon at 6 o’clock plus, of course, the one-minute tourbillon, all of which contrast with the multi-layer dial with sunray pattern Côtes de Genève decoration. The 43 mm case is in 18 carat gold with an ultra-light titanium core and there are sapphire crystals front and back with a double anti-reflection treatment, all the better to appreciate the unique and distinctive ornate rotor.

The Limited Edition of 88 pieces is water-resistant to 30 metres and comes with a hand-stitched alligator strap with a titanium and gold folding buckle.

The Ateliers deMonaco claim that ‘life is not about luxury, but luxury sure is life.’ The idea is intriguing, we can agree or disagree, however the one fact that is incontestable, is the remarkable range of in-house mechanical timepieces the brand has already created and is continuing to develop.

Entering the already crowded horological world with a highend range at prices that limit their sales to the favoured few was a risk that appears to have paid off. Ateliers deMonaco believed enough in their product and were confident that the affluent punter would react positively in what must be considered as a volatile niche in the horological market. That, my friends, requires courage. p Discover more at www.europastar.BIZ/Ateliers-deMonaco

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BRANDS

Straight Talk with GUCCI’S PATRIZIO DI MARCO Keith W. Strandberg

At Baselworld, I had the honour and the pleasure of sitting down, one on one, with president, chairman and chief executive of Gucci Worldwide, Patrizio di Marco. Not one to give many interviews, I was fortunate to get some time with him, and we talked about a number of key issues for Gucci and watches.

A

Europa Star: How important are watches to Gucci?

Patrizio di Marco: Gucci Watches and Jewelry is a division of the overall company that is selling to third parties and our own stores. The company has a turnover of 150 million euros, which is bigger than a number of brands, and it is quite profitable. We could actually push, in terms of opening up more points of sale, but we are not - we want controlled and balanced distribution. We have a healthy combination of wholesale and retail business.

Watches and jewellery are two product categories that are extremely important to us. It wasn’t that easy to get back into the saddle and we are very confident of the future. The competition is really fierce, and we are in a way a sole player, because we are not part of a big watch group, and that says a lot about the power of Gucci.

Now, we have the prominence and the commercial strength. Aside from my personal affection for watches, it is a very important component for Gucci.

How do you make sure that watches have the DNA of Gucci?

PdM: It’s definitely challenging, made more so because it was not done properly in the past. I say all the time that we are about being modern, about innovation, fashion, but then behind all this there is craftsmanship. This crafts-

Patrizio di Marco, president, chairman and chief executive of Gucci Worldwide

T Frida Giannini, Gucci’s creative director

manship side was never communicated before. In whatever we do, we have to maintain this Gucci-ness and emphasize that it is not mass produced, it is created with passion and dedication.

We do that with every product we make and the way we communicate happens in a number of ways – the stores, the advertising, PR - and it takes time.

Frida Giannini, Gucci’s creative director, does the vetting of all the products.

When you are a designer, it’s difficult to handle a brand that has a long history, and Gucci is truly a legendary brand. It takes a lot of intelligence to approach a brand like Gucci, put yourself in that brand and still be very much respectful of it, the brand’s

codes and icons. She has been with Gucci more than 10 years now, she joined as accessories director and she has been the sole creative director for more than 10 years. She grew up with the brand. She has gone through the archives and she has not been afraid to look into the future. Some people think that using the archives as inspiration is a lack of creativity, but I think it’s the most creative way. I am very serene when I see the products coming to the market and in the pipeline all the products are consistent with the history of the brand.

In the past, the brand pushed towards the most conservative part of our offering, and consumers thought this was Gucci, like our original GG. Logos are not bad but the way you use them has to be right. If you go to extremes and use them in a disrespectful manner, it can be detrimental to the brand and the brand’s position. At the same time, in the watch industry, there was a strange wishful thinking where everyone wanted to go high-end. The product wasn’t that great, and you can’t go in one direction with some products and in the other direction with watches. You have to go back to who you are and build upon this.

Gucci focuses quite a bit on giving back. Why is this important?

PdM: To me personally, if you are lucky and privileged in your life, it’s simply the right thing to do, to think about whoever is not as fortunate as you are. I have tried to explain that there isn’t any marketing goal in Gucci giving back, there is no strategy to

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HANDMASTER by Gucci

do. What we have done over the years with UNICEF, education, the Grammies, Li Bingbing and others is that we wanted to do something meaningful.

“As Gucci, responsibility is part of our core values. We are about fashion, cool, then craftsmanship and responsibility.” increase sales through our social responsibility approach. We don’t do this because of marketing and sales, but because it’s the right thing to do. As Gucci, responsibility is part of our core values. We are about fashion, cool, then craftsmanship and responsibility.

Responsibility starts with our people and our products. Customers may not care about where or how products are made, but for us every single product we make is done in a responsible manner so that every law is respected (labour, safety, environment, etc.). Then there is the environmental commitment we have - for a company this size to reduce our footprint is a major challenge. We are the first brand to research and use a chrome- and metal-free tanning process. There is no rational motivation to do this because it is additional cost - it doesn’t come cheap and it doesn’t increase sales we do it because it is the right thing to

54 BRANDS / europa star

A big push for Gucci is to talk about the ‘Swissness’ and the artisanal nature of the production.

Can you explain?

PdM: We have started to tell the world about the artisanal nature of the products. Sometimes you think that because you are a fashion brand you are a volume, mass brand, so it’s difficult to communicate, and it’s more difficult since we didn’t talk about it before. Now, we are correcting the mistakes that were made in the past. If we stay the course I am sure that this will be understood and appreciated.

The world is much more crowded now, so it’s more difficult to be heard.

SYNC EXTENSIONS by Gucci

Of course, we can’t define ourselves as the highest example of watchmaking - we are a fashion brand, and we are proud of being a fashion brand and inventing this type of segment in the industry, many years ago when Gucci was a license under Severin Wunderman.

The watch as a fashion accessory today was because of Gucci. At a certain point

HORSEBIT by Gucci

over the last forty years, the brand has had different lives, some highs and some lows, and at one point we lost our direction in watches as well, and we restarted five years ago. We have done well with modern, cool, but at the same time stressing the fact that this is a Swiss Made watch. The majority of our collection has quartz movements, but there is still that craftsmanship behind all our watches.

What do you like about watches?

PdM: Watches are no longer a tool, they are accessories. I am an old fashioned guy, so I still check my watch. It makes perfect sense to me, since we are a lifestyle brand, to have watches. I travel too much, but when I am home in Rome, I have all my watches, and when I wake up, I choose my clothes, then I choose the watch I want to wear that day.

I like watches because they are a way to express yourself. For men, we don’t have a purse or the accessories that women have, for us the watch is our own personal way of telling people about ourselves. p Discover more at www.europastar.BIZ/Gucci

LETTER FROM CHINA

25th Shenzhen watch and clock fair JE T’AIME, MOI NON PLUS...

Jean-Luc Adam

The 25th Shenzhen watch and clock fair was heavily coloured by the Sino-Swiss Free Trade Agreement. In the watchmaking sector particularly, the agreement has thrown the two countries into a maelstrom of hope and fear.

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The free trade agreement between Switzerland and China came into effect on 1 July 2014. Eventually, Switzerland will extend its duty-free platform from tiny Hong Kong to the whole of mainland China. It will also place its own sales outlets in the major cities, “with the unbeatable advantage over Chinese retailers of being able to offer an additional discount of up to 35%,” noted Mengjin Wang, Chinese watchmaking expert and one of the negotiators of the free trade agreement. With lower prices, guaranteed authenticity and high-quality aftersales service, Swiss watches could enjoy a second wind in the Chinese market. None of these advantages will apply to Chinese businesses, because of the ‘Swissness’ law according to which any ‘Swiss made’ watch must have 60% of Swiss value, “a protectionist measure that will hit Chinese suppliers hard,” warned Eddie W. H. Leung, president of the Horology Advisory Committee of the Hong Kong Trade Development Council. Chinese leaders appear to be only just coming to

grips with the Swiss political system, where power remains in the hands of the people. Thus, the federal government opened up a market, which public initiative immediately protected, making little Switzerland the big winner of this free trade agreement. Swiss negotiators are further turning the screws by demanding more respect for intellectual property from the Chinese government. In support of their position, they have a list of Chinese brands that are in breach of the ‘Swiss made’ criteria. Backed into a corner, China will be obliged to enforce its own anti-forgery laws (yes, it does have some), and it will no longer be able to hide behind the usual excuse that forgery is a ‘cultural phenomenon’. A list of offenders will be drawn up.

u ALL QUIET ON THE SMARTWATCH FRONT Shenzhen being one of the major production centres of electronic components, you would be forgiven for assuming that the Cantonese and Hong Kong watchmaking industry would be riding the growing smartwatch wave. At the Shenzhen watch fair, however, it was flat calm...

Only Ezon, a specialist in multi-function digital sport watches, unveiled a minimally connected watch. TianBa has brought out a prototype with a dial that displays some smartphone functions. We will also be seeing Chinese smartwatches from the mobile telephony sector, notably the brands Huawei, Miezu, Xiaomi, Lenovo, ZTE, Oppo and Coolpad. But the prevailing strategy appears to be to wait for the major American and Korean brands to make the heavy investment in perfecting the technology. A few months later, expect to find Chinese brands taking advantage of the plethora of cheap components to launch into the emerging low-cost smartphone sector. europa star / LETTER FROM CHINA

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So what does the Chinese watchmaking industry stand to gain? According to Leung, the hope behind the agreement is that China will grow closer to Switzerland and “send Chinese employees to learn a higher standard of manufacture and repair, and also gain an understanding of Swiss mechanical technology.” This hope seems naive: they are dealing with what, since the attack of Japanese quartz, has become one of the most protectionist industries in the world. Wang, for his part, proposes bringing retired Swiss matchmaking masters to China to “help Chinese industry.” Apparently he has one candidate already lined up, a newly-pensioned former employee of a venerable Geneva-based brand.

SWITZERLAND FACES THREE PROBLEMS: 1: ETA is supplying fewer mechanical movements to third-party clients, which often have nowhere else to turn and therefore risk going out of business. Fiyta - a client of ETA for its high-end movements - faces the same problem, but intends to solve it by manufacturing its own movements in Switzerland. With the added impetus of the free trade agreement, we can expect to see other Chinese watchmaking heavyweights do the same. We could be looking at Swiss development and assembly, using Chinese components, with “Swiss movement” etched on the dial! For the Chinese market, this represents significant added value, as its clients will have the assurance of a reliable engine under the hood. And it is a formidable weapon with which to contemplate conquering the markets of the whole world... A little like hallmarks, the ‘Swiss made’ label (60% of national value) and the Swiss crossbow (70%) will primarily protect the products of the major watchmaking groups and high-end manufactures, but not the smaller players.

2: Has anyone considered the effects of a sudden imposition of Chinese-style management on the sleepy little Swiss companies? We have already witnessed a violent culture clash between the China Haidian group and the managers of its Swiss brands (Corum, Eterna, Codex).

3: If Switzerland were effectively to become a Chinese bridgehead into Europe, would it not be criticised for abusing the system and accelerating de-industrialisation in Europe? Has anyone thought of the reactions, the reprisals even, that Brussels could impose on Berne?

KO IN HK? Hong Kong is the primary export market for Swiss watches. The reason is its geographical location, combined with fiscal policies that make it China’s duty-free outlet and the distribution centre for the whole of South-East Asia. A mecca for tourism, the former British colony is stuffed with watch shops, and the temptation to buy is strong. All the more so since its sales personnel are highly qualified and credibility is guaranteed. However, under the free trade agreement mainland China will reduce customs levies on imports of Swiss watches by 60% over the next ten years: 18% in the first year and 5% over the subsequent nine years. In the short term, China and Hong Kong will apply the same tariffs. Some brands are already anticipating this, noted Mengjin Wang. “The LVMH group has already levelled the prices of its Swiss watches in both zones.”

If Hong Kong is to remain a major watch market, its service capabilities will make all the difference.

To be continued...

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ULTRA-THIN FULLY-AUTOMATIC MECHANICAL by Sea-Gull

SKILLS CAN BE BOUGHT! But clearly, the Chinese are not pinning their hopes for the success of the agreement on a handful of retired masters and a crop of apprentices. The real plan is perhaps less obvious but far more ambitious. Let us not forget that Switzerland lies at the heart of a Europe in crisis, a Europe that is raising its protectionist barriers. Switzerland can import and export without restriction to the EU, and China will eventually be able to import and export without restriction towards Switzerland, and vice versa. What the Chinese really want is to create a bridgehead into Europe. For the watchmaking industry, the reverse is true: they hope to buy Swiss expertise to increase the added value of Chinese watches. No one will be surprised to discover that the first member of the newlycreated Swiss China Investment Platform Association (SCIPA)

is the Shenzhen watchmaking federation. This platform will help Chinese investors to find companies in Switzerland.

Clearly, this will work in both directions, but Swiss companies are already among the most active investors in the Middle Kingdom, with more than a thousand Swiss firms and subsidiaries, employing more than 120,000 people.

Switzerland, in turn, must prepare for an influx of Chinese investors, particularly in its small- and medium-sized businesses, which are renowned for their skills but sometimes have limited capacity. This explains why the USAM (Union suisse des arts et métiers), the powerful controlling organisation of the Swiss SMEs, was quick to accept its membership card for the SCIPA. In the aisles of the Shenzhen watch and clock fair, Chinese watches enhanced with Swiss expertise were already being showcased...

SWISS DESIGN, SWISS MOVEMENT At the Ebohr booth - a brand in the China Haidian group we met Gaosheng Yan, deputy CEO and director of design, to discuss the new brand, Ebohr Complication (EC). Its first collection, consisting exclusively of watches with automatic movements and tourbillons, is our pick from the Shenzhen fair. All of the pieces are elegant, bold and impeccably tasteful. Rumour has it that this masterful design is the work of Codex’s stylists... “No, it’s a collaborative effort between an independent Swiss design office and Ebohr’s design team. Our studio adapted the designs to the tastes of our Asian clients.” Is Ebohr Complication merely a showcase, or will it have a genuine commercial presence? “EC harbours real ambitions, at an attractive price point. Our automatic

I PHOTOGRAPHER

by Fiyta

T Left to right: BEIHAI by Beijing Watch Factory and EXPERIENCE N°2 by Ebohr

models come in at 4000 yuan (approx. CHF 600), the first flying tourbillon with a Sea-Gull movement is 17,000 yuan (CHF 2,400) and the tourbillon carrousel with a Shanghai Watch Factory movement is priced at 90,000 yuan (CHF 13,000).”

Other surprises awaited us at Fiyta, where we talked to CEO Bruce Du. The new Photographer collection is bolder than ever, with touches of colour, 3D dials and more direct references to the world of photography. It is worth noting that Fiyta was the only Chinese brand that had a booth in Baselworld’s prestigious Hall 2. Why invest so heavily in Basel if your market is mainly in China and South-East Asia? “It was a great deal of money, but the entire watchmaking world goes to Baselworld. We already have shops in North America and one day we will also have a presence in Europe,” confirmed Mr Du. What about the joint venture with Emile Chouriet, which the group bought four years ago? “The Swiss brand remains absolutely independent, but we have just bought a movement manufacturer in Geneva to build the simple calibres that will go into our Fiyta watches. The Emile Chouriet watchmakers are supervising development,” he confirmed.

Fiyta and Ebohr clearly didn’t wait for the free trade to invest in Switzerland. p

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LETTER FROM USA

THE RECOVERY IS COMING, but it’s not Complete Here Yet Keith W. Strandberg

With China slowing down, brands are turning to other, more mature markets. The US market, in particular, is showing some signs of recovery, though the turn-around hasn’t been as fast as many would like. The American shows this year in Las Vegas (JCK, Swiss Watch and Couture) seemed to have been a little slower and not so well attended, but the retailers I talked with are still optimistic about the future of the US market. Here are five key retailers and what they have to say about their home market:

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Scott Bolosky, owner, Clarkson Jewelers (St. Louis, Missouri): “On a rolling twelve month calendar sales have continued to outpace previous years, and we’ve definitely been able to feel more confident in the amount of store traffic and sales we’ve been able to forecast and attain. There’s a growing sense of stability that we’ve really not seen since about midway through 2008.

Consumer confidence continues to grow, at least in the St. Louis market. While consumers are, and always will be price conscious, when their perceived buying power begins to increase then we see that more consumers are willing to pay a premium for expertise and service. Value isn’t directly related to price alone, so our “value” proposition of selection and expertise resonates better when consumers don’t feel like they just need to get the best price alone.

While we’ve seen ups and downs for sure, we were able to rein ourselves in and weather the storm. While we continue to grow I have to believe that the worst is behind us, and we’re optimistic for a record twelve months coming up.

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I am excited about our growth. We’re a small, privately owned business. That said, our focus is always on growth, but not at the expense of the service and expertise we provide.

My thought is this, if you can grow a business continually and profitably while constantly creating consumer advocates, champions, then you’re doing something right, and that’s always exciting.

While we’ve always done really well with Rolex, we’re seeing great sales trends with that brand this year. They’ve done

“Internet sales from non-authorized retailers continue to take business from the brick and mortar retailers. We offer something they can’t and some of that is customer assurance.”

Scott Bolosky, Clarkson Jewelers some great things with product designs and introductions, and that always helps. Rolex clients are loyal. We’ve always done really well with the Rolex Submariner, but the Datejust II is really strong as well. They just added a new version that features an all steel polished bezel that we think is going to sell really well.

This is nothing new, but internet sales and sales/service from non-authorized retailers continue to take business from the brick and mortar retailers. Fortunately, our fix to this is simple - we’re not the destination for the internet shopper. Our

clientele isn’t always looking for the best price alone. We offer something they can’t and some of that is customer assurance. They compete with us, but not vice versa. This has worked for us and we’ll stay the course.

Honestly, our largest and most extravagant events typically haven’t performed all that well, and we’ve tried a lot of them.

We are becoming much more focused on the individual and personal attention. We’ll be doing much more in the way of private dinners, VIP events and personal connections. Our brand really doesn’t resonate well with a mass of people.

We focus on personal relationships, so when our large, nonpersonal events don’t do so well it might just mean that our “real” brand is resonating with clients, and that’s a good thing.”

Armen Darakjian, Darakjian Jewelers (Detroit, Michigan): “Business overall is good in a general sense. There are definitely more high-end transactions than in the mid-range. The wealthy clients out there still have the disposable income to treat themselves. But the way they are treating themselves and the items they are pursuing are different than years ago.

There is a focus on classics and timeless, real statement pieces. Watches in rose gold for men are on the shopping lists more than in the past.

For us, this year is hugely different. Darakjian Jewelers moved to Birmingham Michigan, Michigan’s only “city” with all the financial institutions and high-rise high-end condos, and a selection of boutique restaurants. This year it seems that social media is playing a larger role in getting the word out, for promotion and endorsement. The one thing about social media is that it’s demanding and technology has made us all part of the “IGG” – the Immediate Gratification Generation.

The brands are getting stronger and the clients are recognizing them. Whichever brands a retailer carries, they can still make it a great success. It’s not limited to a few names.

You’ve got to run with what you have. Be passionate, be enthusiastic and know your product. I am most excited about our new location. In the heart of the action for the Detroit suburbs, Birmingham drives clients to our quaint city with restaurants, lounges, patios, and a great residential neighbourhood, all within walking distance. The shopping/social scene in this area is comprised of generation X’s.

Our best selling brand in jewellery is Tacori in bridal and in watches, Audermars Piguet. For Audemars Piguet there has been an heightened interest in the Royal Oak series. And an even greater desire for the rose gold versions, where years ago everything seemed to be steel Offshore only.

The biggest challenge facing the Darakjian Jewelers brand is making everyone in our community and the watch community aware of where we are and what we do. Even being in business for 50 years (which we are going to celebrate October 2014), you’re never done with the message. Our company is based on customer service and we strive every day to create an experience for our guests that they haven’t had and will not get anywhere else.

I think brands are refocusing back to the US market. They have to. The spike in the China market was an opportunity that brands had to take advantage of, like cultivating a new client. Now that China has been slowing down coupled with the situation in Europe, the US is still a huge market and hungry for high-end mechanical watches. The US is slow and steady growth compared to China, but the US customer is

u of quartz watches but “Yes, there are sales the real growth and the cultivation of clients for longevity of the relationship comes from the mechanical watch sector. This is where the relationship between Authorized Dealer and the client gets formed and strengthened.”

Armen Darakjian, Darakjian Jewelers here with their wallets open and ready to buy. The brands just have to be conscience of the relationship between what they are offering and at what price.

Mechanical watches in my market are the market. Yes, there are sales of quartz watches but the real growth and the cultivation of clients for longevity of the relationship comes from the mechanical watch sector. This is where the relationship between Authorized Dealer and the client gets formed and strengthened.”

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I don’t think the brands are refocusing on the US one hundred per cent, but they are looking to regain consumers in the US with better price points. In regards to mechanical pieces, many of our clients are looking for automatic/mechanical pieces instead of quartz. Our Chinese customers, for example, only purchase automatic mechanical timepieces.”

Korosh Soltani, David Orgell (Beverly Hills, California): “Business is up and down, you really don’t know what’s happening until it really happens. We’ll have one great day, followed by two bad days, then one okay day.

Our Chinese clientele has dropped about 35% this year. The American consumer is not interested in buying a new watch as often as the past.

“On Rodeo Drive …the watch manufactures are opening their own stores …We have the advantage that we can show customers 20 brands, and they have only one.”

Korosh Soltani, David Orgell We are always hopeful, we try to have a healthy stock of watches, new pieces are important for us. I am excited that we are building two shop-in-shops in our store - Ulysse Nardin and Carl F Bucherer. Our best-selling brand is Ulysse Nardin and our best-selling watch is SevenFriday, because of the units we sell per week, and the requests we get.

Our biggest challenge is that there are too many watch stores on Rodeo Drive, the watch manufacturers are opening their own stores, we have built brands in Beverly Hills and the surrounding area, and they come in and decide, well they can do it themselves, and make double the profit - they soon learn that it’s not easy to sell watches in Beverly Hills. For example, Chopard closed their doors last year. It’s more of a marketing expense for them, we have the advantage that we can show customers 20 brands, and they have only one.

Our biggest promotion for 2014 is billboards in the Los Angeles area, with doing some special events for the launch of our shop-in-shops this year.

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Robin Levinson, co-owner, Levinson Jewelers (Fort Lauderdale, Florida): “We ended our season on a good note. Though we are heading into our off-season, we are optimistic that we’ll be able to do some good numbers since Fort Lauderdale and South Florida in general are strong tourist destinations over the summer.

Although the numbers this year are similar to last year, there does seem to be a bit less energy and enthusiasm out there both with clients and amongst other industry professionals I’ve spoken to.

I am optimistic for the future. We came across some great finds at the Vegas show and we have some very exciting plans for the fall and holiday selling seasons to drum up business, including some events and a new marketing campaign.

First, I am excited about some new fashion lines I found in Vegas, bold pieces that are fashion forward but will still be relevant for many years. We also have some exciting lines that we are considering adding for the fall.

I’m not sure if it is a problem, but we have wanted to convey a message to the younger generation that we have price points for all. With our new advertising campaign and also by being more cognizant of the pieces we feature editorially and in our catalogues, we are beginning to see a difference.

We are also maintaining a strong digital presence with lots of activity on all the major social media platforms as well as on our website and apps.

We are very excited to have just recently announced a new brand ambassador for Levinson Jewelers, Lauren Tannehill.

Lauren is a beautiful young model and her husband Ryan

is the quarterback for the NFL’s [National Football League] Miami Dolphins. The campaign images are very different for us, young, fresh and will hopefully convey a welcoming message to the younger demographic.

I do feel that the US is getting more attention from brands.

Automatics are still the most in demand for us, and I see more hand-wound watches on the horizon from some watch companies.”

Anne Russell, Vice President- Merchandising, Hamilton Jewelers (Northeast US and Florida): “First quarter business was difficult in the Northeast and strong in our Florida markets. The weather was a determining factor in the drop of sales in the Northeast due to reduced foot traffic and closures. In fact, our stores in New Jersey were closed for a total of seven days.

The fine jewellery business has been strong, especially in the collections Hamilton designs and creates. There was a bit of softness in the higher watch price ranges earlier in the year, which we anticipate being corrected in the second quarter.

I continue to be optimistic and amazed by the new creations from our partners each year and our clients’ interest in the novelties.

Tudor is exciting to me. I like having something to offer a client starting at $2500 that has brand heritage and great design.

Patek Philippe, with which Hamilton has a relationship dating to 1938, continues to be a very strong brand for our business and we are looking forward to their 175th anniversary collection at the end of the year. Our best-selling watch is whatever we sold today!

The fickle luxury consumer is a concern for us. We have extensive data on client purchase histories, buying patterns, and lifestyles – but it seems as if the relevance of the data is constantly changing. For instance, one year Facebook is a key medium for targeting younger consumers, the next year the largest number of Facebook users are age 45+. Our marketing and client communications need to constantly evolve and sometimes it is hard to know the most efficient method for connecting with our target audiences. We are always testing and trying to improve!

“The fickle luxury consumer is a concern for us … Our marketing and client communications need to constantly evolve and sometimes it is hard to know the most efficient method for connecting with our target audiences.”

Anne Russell, Hamilton Jewelers Digital and specialized events are our focus for 2014 and beyond. For instance, our annual watch fairs in Princeton and Palm Beach are highly anticipated by both our staff and the collector community. The Princeton event takes place each year during the u weekend of Princeton university graduation, when over 25,000 people visit our town from around the world. This year’s event, our 20th consecutive year, brought over 1000 guests through our doors to view and choose from our timepiece presentation.

Several of our partners chose to join us for these events, and are always successful in presenting the brand and providing the consumer with added value and information.” p

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RETAILER PROFILE

TOURNEAU – Ira Melnitsky Interview by Keith W. Strandberg

Tourneau is one of the world’s biggest retailers, with 33 stores scattered throughout the US. During BaselWorld, I had the opportunity to sit down with this famous retailer’s chief executive officer, Ira Melnitsky, to talk watches, retail and the watch industry in general.

had really great introductions, the type of product that our team gets enthusiastic about. We are fueled by the excitement from the teams in Basel and by the time we return to New York we are already receiving emails from our clients in the US, asking about the new product.

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Europa Star: How was BaselWorld?

Ira Melnitsky: We saw a lot of grey dials, and we saw a lot of traditional pieces. We saw pieces from brands reinforcing their identity, which is really good for us. I think the introductions on the whole were very exciting for our business. Our largest brand partners, like Rolex and Patek Philippe,

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Ira Melnitsky, retailer’s chief executive officer of Tourneau

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The TimeMachine in NYC

How is business?

IM: Business is healthy. We had a very strong March, and it was a good 2013 for us. We are optimistic. The timepiece business is good for us. We gained market share within the United States and the start to 2014 has been stronger than last year.

At Tourneau, the presentation and importance of the larger brands is more important than ever. A key Basel

piece is well known around the world via social media, so retailing is so much more important because the consumer has already done a great deal of research before they walk in the door. We have a very educated customer right now, which is wonderful because we sell watches exclusively and the more our customer knows the more enjoyable our conversation with him or her will be.

What is Tourneau’s secret of success?

IM: We have a very talented team of real watch lovers and our focus is on timepieces. We call ourselves the “watch authority” and that is all we do. That focus, with a talented team, really makes the difference.

If people have never been in a Tourneau store, how do you describe it?

IM: I’d say it’s a great place to come to get educated about watches. In the TimeMachine, our store at 57th and Madison in NYC, we have four floors of timepieces, and we can take people through whatever brand, price point or complication they are interested in. We can educate them about movements or sell them something that appeals to them aesthetically.

In the TimeMachine, on the concourse level we have brands that are a couple of hundred dollars and we go up to a million dollars on the third level. We have two huge flagships, the TimeMachine and the Time Dome in Las Vegas, where we are able to showcase a larger selection than in our stores in other markets. In those smaller locations, we are more focused on the $2,000 - $100,000 range. As an aside, both of the flagship stores, NYC and Vegas, were recognized as the biggest watch stores in the world by the Guinness Book of World Records.

How important is training to Tourneau?

IM: Training is one of the most important initiatives we have. We intensified it last year by bringing

“We have certified through the Fédération de l’Horlogerie more than 100 people already and will have more than 250 people FH-certified by year’s end.” in a dedicated team, and launching the “Tourneau University.” We want to make sure our people, over 800, are as educated as possible about timepieces in general, and specifically on the timepieces we carry. After Basel, for example, we will publish the Basel report about everything introduced. Every week, we have a new training module. In the last year, Christel Chaunsumlit and her team have completed more than 100 videos, as well as training modules and reports.

The most important thing is that when a customer comes to the store we can speak watches with them.

Some people want to be educated, some want to purchase and others just want to talk watches. All our people have to be exceptionally well trained. Retail training is something I have always focused on and emphasized. We focus internally on how Tourneau does business, we partner with all of our brands and we have

T The Time Dome in Las Vegas

partnered with the Fédération de l’Horlogerie (FH) to participate in their training. We have certified through the FH more than 100 people already and will have more than 250 people FH-certified by year’s end.

Our program where we certify our people is called the Client Experience Education Program (CEEP). The client experience is what we talk about, it’s not transactional by nature. A lot of customers come in to speak about watches and that experience in and of itself could lead to a transaction, or it might not until the fourth or fifth visit.

What do you like about watches?

IM: I don’t consider myself a serious watch collector, but I am a fan of Tourneau. I have been in retail for 20 years, I have always gone into Tourneau. I have about 20 watches and I love mechanical items, so whenever I had the opportunity to go into a Tourneau, I always found my way into the store to look around.

What is your favorite watch?

IM: I have a few watches that have sentimental value, for when they were purchased and who gave them to me, so they mark a memory.

Every appointment I go to I find a new favorite watch. It’s hard not

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to appreciate what goes into these incredible timepieces.

Watches are one of the few things for men that makes an everlasting statement about themselves. It’s not a fleeting fashion item, these brands have decades and hundreds of years of history. A watch just gets better with age. Men don’t have anything else that we can say that about.

What gets you up in the morning? What do you enjoy about your job?

IM: I have the dream job. I am lucky – I get to work in retail and I get to combine it with some of the greatest brands and greatest products in the world, and I have a talented team to work with.

In retail, I like that every day is a new day and every day you can be better than the day before. It is measurable and immediate. I like being able to ask myself how can I and we do better and take action to make those changes. I very much like hearing from satisfied customers, which often comes in an email or a letter to my office, which is great.

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“Every year we introduce some new brands to our stores, as part of the discovery that people want when they come to Tourneau.”

Is it important for you to be on time?

IM: I am punctual to a fault. I like the precision of it, but it drives my family crazy. I am always wearing a watch. If I wasn’t, I’d be looking at my wrist all the time.

How would you describe your management style?

IM: I trust people, number one. I believe in doing the job to what right looks like. I think people know what right looks like and I like helping them achieve it. If you are working with talented people, there is no reason in the world to micro-manage them. I like to win and I like to be surrounded by people who like to win. Most of all, I think I lead by example. I was raised with a work ethic, from my father who was a neighborhood pharmacist, and it has never left me.

FACTS & FIGURES Founded: 1900 Number of stores: 33 Sizes of stores: from 1,500 to 16,000 square feet Biggest store: 16,000 square feet Price range: $150 to $1,000,000 Brands carried: More than 100 brands including Rolex, Patek Philippe, Cartier, Omega, Breguet, Blancpain, Tudor, etc. www.tourneau.com

How do you determine whether to take on a brand?

IM: Every year we introduce some new brands to our stores, as part of the discovery that people want when they come to Tourneau. We look for products that are unique and stand out, and that’s what piques our interest, be it design or product innovation.

Once we return from Basel, we sit around as a team and we always add some brands each year. We sent product experts to Basel, our blog editor, our sales team and others, so we make the decision as a team.

Have you recently cut any brands? Why? IM: Large stores always have space for product introductions, and it sometimes comes from attrition. We always evaluate every brand in every store. We add two to three new brands and they probably replace the same number.

What is your opinion about after-sales service?

IM: After sales for us is our pride and joy. We maintain a facility in Long Island City where we employ 100 people, including 40 watchmakers, and we perform 100,000 service operations a year there. We have started our own watchmaking school, for the basics of service, and we have just completed our second year of the school. It’s a 13 week programme and we put 12 or 13 young people through it. I believe that we maintain one of the largest independent service facilities, still certified by the brands to do the work. We cross train our people with many other brands. p

SERVICE, PLEASE!

SERVICE EXPERIENCES WHERE THE RUBBER MEETS THE ROAD at the retail level – part 2 Keith W. Strandberg

We continue our survey of the best and worst of customer services as experienced by the customer-facing retailers with the second part of the article that started in Europa Star April/May issue.

Switzerland to have it repaired! The customer hadn’t even seen the watch yet and they were trying to charge us to fix their problem!

Finally, the watch came back to us and one of the numerals had fallen off the dial!! Of course, I advised the client not to accept this piece and to cancel the order. The customer was appreciative.

W

Jeremy Oster, owner, Oster Jewelers (Denver, Colorado, USA): “After-sales service is so important and it can even turn a negative into a positive. I have been fortunate to work with exceptional companies who really care about their clients. A couple of years ago we sold a freshly received Audemars Piguet Offshore Rubberclad. The customer had only enjoyed the watch for one day when a problem occurred. Of course, we were highly embarrassed. We sent the watch overnight to AP and received it back within three days with the problem resolved!!! You can’t ask for better than that. The customer was thrilled with not just Audemars Piguet but also us for making the right phone calls to make this happen.

One time we had an issue with a brand new, ultra complicated watch.

After waiting months for delivery the watch arrived and was not working.

There was a loose component floating in the movement, visible through the sapphire back.

We sent it back and the company wanted to charge us to send it to

“After-sales service is extremely important to us. We will not carry a brand that does not value their customers or do not invest in superior service.” Jeremy Oster This was not a small or obscure brand. However, the lesson is simple: be very careful with cutting-edge complications. For high complications there is a reason why brands such as Audemars Piguet are in such high demand. You can count on the quality and the testing that has taken place before deliveries begin.

Our customers enjoy the superior level of service and better attention to timeliness and clear communication.

Our service experience tends to be a positive for our clients.

We mostly work with independent watch brands as opposed to the massive groups. As a result, we have had excellent experiences and far more personal service. After-sales service is extremely important to us. We will not carry a brand that does not value their customers or do not invest in superior service. We will absolutely stop carrying a brand if we do not have 100% confidence in their after sales service.”

Hakan Ulucan, technical service director, Saat&Saat (Turkey): “One of our customer’s watches had been repaired three times but it was broken again due to the same reason, and he wanted to return the watch. But, the service technician indicated that the malfunction was

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due to mishandling by the customer.

Unfortunately, the customer wasn’t convinced. I decided to meet him at our head office to show him our after-sales service department, which is a lab where timepiece experts examine all defects and repair them.

After the tour, he was very impressed.

Then, I explained how to handle his watch to avoid problems in the future.

He understood very well, received his repaired timepiece and never complained again. He even bought a gift for his wife from a Saat&Saat store two days later. We gained his trust and loyalty thanks to our quick response and face-to-face communication.

A good after-sales experience can increase brand loyalty, customer confidence and brand awareness.

Excellent service doesn’t only reinforce the relationships with customers who already feel loyal to a retailer; it can also defuse ill will and dissatisfaction.

After-sales service is the most important thing that ensures our customers’ loyalty; selling something once is not important in our business, we must ensure permanent customers.”

Allison Newbauer Strongin, Vice President, Kirk Jewelers (Miami, Florida, USA): “One of the biggest challenges we are facing is to keep our customers happy, as they often expect their timepieces back from repair or service within a few days.

We have to educate our clients to understand why quality requires patience. All the Swiss companies certainly adhere to the philosophy ‘haste makes waste’ and they take the necessary time for disassembling, cleaning, reassembling and thoroughly testing the movements before they are sent back to us.

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our competition. When people have a great experience at a business, they typically share this with friends and family. Word of mouth is one of the most powerful vehicles that drives new business to our store.

Clients place the responsibility for the after-sales experience in the store’s hands, so it is imperative that the companies we represent offer the same level of service when we have to send products to them for servicing and warranty issues. Ultimately a good experience or a bad experience reflects on our store more than the brand itself.”

In addition to the required time, it’s also a matter of resources: Patek Philippe for example has a limited number of certified watchmakers on staff here in the US, yet they are able to deliver on the high expectations.

To mitigate possible frustrations we constantly update our clients about the progress of the service.

“Ultimately a good experience or a bad experience reflects on our store more than the brand itself.”

Allison Newbauer Strongin

I Kirk Jewelers (Miami, Florida, USA)

The after-sales experience is one of the most important factors in retaining our customers as well as gaining new ones. For the client who has purchased at our store, knowing you will be well taken care of for servicing, warranty issues, and any other issue that may arise, is a huge incentive to return to do future business with us. It is what helps set us apart from

Paul Sheeran, Sheeran Jewelers (Dublin,Ireland): “I would have to pay compliments to three brands IWC, Breitling and TAG Heuer, for appreciating and understanding the annoyance of our customers in the event that they had a problem under warranty. They have always dealt with these at speed and looked at it as both of our problem to solve rather than just my problem!

My worst experience wins hands down: a 150,000 euro watch was back in the brand’s service department for 10 of the first 12 months the customer had it. We had to do a refund to satisfy our client and were told by the brand representative that it’s our problem, sell it to someone else! They still couldn’t find what was wrong with the watch! How can you expect a retailer to take that sort of money off people with that attitude? It’s just wrong!

I have a very solid sense of right and wrong and believe it is my duty to be fair. But ultimately I can’t see my business suffer due to a lack of front line understanding by some brands.

So sometimes I have to take it for the team rather than see my store’s

Paul Sheeran

O Sheeran Jewelers (Dublin,Ireland)

name tarnished. Generally an unhappy customer is no longer your customer and ultimately bad after-sales service does affect how you sell.

Good after sales service is vital to a successful sales business and we have regularly turned negatives in to profitable situations.”

Armen Darakjian, Darakjian Jewelers (Birmingham, Michigan, USA): “The key to service in all aspects of this business is the effectiveness of the deliverable. We are all intertwined from the manufacturer all the way down to the end user. Like the old saying goes: you’re only as strong as your weakest link.” The luxury timepiece business is exactly that; luxury.

My BEST after sales service experience is as follows: I was selling a mid-range ($12,000), not mainstream timepiece to a client.

Committed to delivering the story

of the brand and presenting the piece in all of its glory with all its attributes, and answering any questions the client has about “why this brand over that brand” – everything was going perfectly. It was the client’s first time in our store and the process was not only getting him comfortable with the brand but also with Darakjian Jewelers as the local expert on fine timepieces. We believe there needs to be at least a cursory knowledge of all brands comparable or how else can you service the client fully with their questions.

That being said, the client was excited, felt comfortable and made the purchase. Unfortunately, soon after the purchase, approximately 2 weeks later the watch was running extremely fast and the crown came off. The hiccup was the client bought this as his wife’s early anniversary gift to him and they were leaving town for the celebration in two days. She would be crushed if

he didn’t wear it on the trip. I told the brand the issue not in a negotiating format but just informational.

To my surprise the brand wanted to make this couple’s anniversary that much more special and sent a replacement piece, an extra strap and two hats and golf shirts. This blew me away and eventually blew my client away! Made a client for life and so did the brand. Not that every repair needs a replacement watch at all. There just needs to be some accountability from the brand for their pieces in an expeditious way. And this is a great example of that responsibility be taken.

The worst after-sales service doesn’t have to be isolated to higher end products in our business. We’re a business that trains and effectively

“We are all intertwined from the manufacturer all the way down to the end user. Like the old saying goes: you’re only as strong as your weakest link.” Armen Darakjian implements the process of add-on sales. It’s a service to the client and we believe that forecasting the needs of the client by asking the right questions allows for a better experience for the end-user. From inexpensive brands to the best of the best, the most contagious inefficiency plagues many. Let’s start first with straps.

When a client has to wait months for a strap, for example, the joy of buying the new piece is slowly diminished. I’ve waited up to three months for a long strap for a $15,000+ timepiece. In all that time, the client couldn’t even wear his new purchase.

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The retailer’s responsibly is to the client just as the brand’s responsibility should be to the retailer promoting their brand. The BEST experiences definitely gain clients on both levels.

The retailer shines as the ambassador of the brand and the brand shines as a brand that is conscious of the end-user and cares about their experience and their integrity. No one buys a watch and doesn’t care if it works, even a watch for a few hundred dollars. Every client no matter what the budget wants and needs to feel special. It’s our responsibility to make sure that happens. You never know when the person buying a watch for $150 will be in next buying a watch for $5,000+, for example. We don’t judge and we don’t assume.”

Jack “Jacky” Gomberoff, G&G Joyeros (Peru): “We have had a lot of great experiences, most of the brands are trying to do right by the customers – we have witnessed a lot of improvement. Once, a watch presented a problem after three months, so we went to the owner of

this family-owned brand and explained the importance of the customer and she authorized the immediate replacement. That afternoon a new watch was already on its way, including a beautiful pen with a personal note from the owner.

That customer sold his company a year later to a multinational for several million dollars and he bought himself a watch from the same brand for almost half a million dollars.

Our worst experience was with a quartz watch from a very prestigious brand. The watch came back three times in one year: the first time we replaced the battery; the second time we replaced the mechanism; the third time we replaced the watch.

Four months later, the new watch stopped again. The customer wanted her money back so we upgraded her to the same watch in an automatic version. Six months later, the watch was running slow, so she brought back the watch and asked for her money back. We refunded her money and swore never to buy this brand again.

An excellent customer service experience can create loyal customers for life

“Customer service should be the most natural part of any business.”

Jack Gomberoff who are willing to refer your business to friends, family, and colleagues. We had a client that wanted to discredit us in social media with negative comments, because she had a bad experience with watch service, but her comment was immediately offset by the good comments of different clients that had experienced great service at G&G Joyeros. We didn’t know we had our own natural ambassadors explaining the procedures to the client. We felt really relieved knowing that 11 years making good service a pillar in our company had built great long-term relationships.

Customer service should be the most natural part of any business. You offer a product that people want, and you do your best to keep them happy so that they become lifetime customers.

Nowadays, competition is spreading across borders and with great service you can make a difference. Providing customer service starts with a genuine desire by us to delight our customers, but you also have to think beyond selling your product or service. You need to consider the cumulative experience your customers have when they visit your store, what they think and feel, and what you can do to make it better. Providing exceptional after-sales service is just one of the pillars of G&G Joyeros.”

O G&G Joyeros (Peru)

68 SERVICE, PLEASE! / europa star

Many thanks to the retailers around the world who took the time to answers our questions and to share their experiences with the Europa Star readership. If you have an interesting after-sales service experience for editorial consideration, either very good or very bad, please email : contact@europastar.com p

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7 A Agenhor 12, 18 Armin Strom 34 Arnold & Son 34 Ateliers deMonaco 51, 52 Audemars Piguet 37, 38, 59, 65

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C Carl F. Bucherer 42, 43, 60 Cartier 41 Casio 31-33 Certina 41 Chanel COVER IV China Haidian 56, 57 Chopard 60 Christophe Claret 35 Chronode 30 Chronoswiss 50, 51 Citizen 27 Clarkson Jewelers 58 Codex 56, 57 Concepto 28 Concours International de Chronométrie 71 Corum 28, 56 D Darakjian Jewelers 59, 67 David Orgell 60 De Bethune 12 DeWitt 35 Digital Luxury Group 46-47 Dubois Dépraz 24, 30 E Emile Chouriet 23, 57 ETA 24-30, 34, 56 Eterna 30, 56 Ezon 55

F Festina Group 25 Fiyta 56, 57 Fossil 40 François-Paul Journe 12, 13, 37, 39 Franck Muller 22 G G&G Joyeros 68 Girard-Perregaux 4, 37, 38 Graham 34, 36 Greubel Forsey 22 Gucci 53-54 H Hamilton 41, 44 Hamilton Jewelers 61 Harry Winston 28 Hautlence 34 Hermès 12, 16, 28 HKTDC 55 H. Moser & Cie. 12, 13, 14, 18 Horlogerie Schild 29 J Jaeger-LeCoultre COVER I, 8-11, 38, 40 K, L Kirk Jewelers 66 Laurent Ferrier 39 Le Joux-Perret 29 Leroy 36 Leschot 29, Longines 46, 47 Louis Vuitton 5 Ludwig Oechslin 20-21 Luminox 43, 44 M Maurice Lacroix 12, 17, 30, 47 Mondaine 43, 44 Montblanc 46, 47 Movado 72 O Omega 37, 39 Oris 41, 42 Oster Jewelers 65

P Parmigiani Fleurier 28 Patek Philippe 2-3, 40, 61, 66 Paul Gerber 37 Piaget 35 Promotion SpA 45 R Rado 46, 47 Raymond Weil 47 Richard Mille 28 Robert Greubel 22 Rolex COVER II, 1, 58, 72 Romain Jérôme 35 Ronda 25 S Saat&Saat 65, 66 Sea-Gull 56, 57 Seiko COVER III Sellita 24-30 Sheeran Jewelers 66, 67 Shenzen Watch and Clock Fair 55-57 Sinn 47 Soprod 24-30 Stephen Forsey 22 Swatch 4, 40 Swatch Group 24-30, 34, 41 T Technotime 24-30 Thomas Prescher 22 Tissot 7 Titoni 15 Tourneau 62-64 Tudor 41, 46, 47 U Ulysse Nardin 20, 37, 39, 60 V Vacheron Constantin 41 Valbray 48, 49 Vaucher Manufacture 24, 30 Vulcain 42, 43

7

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LAKIN@LARGE

QUELLE SURPRISE: A FREEBIE! D. Malcolm Lakin I’ve known my friend Irv since the 1960s when we both worked in a beleaguered and much maligned investment company that was murdered in the early 1970s. We have maintained contact and see each irregularly, breaking bread together when he visits Europe or I traverse the pond to New York, so I wasn’t surprised to receive an e-mail from him the other day.

He informed that his much-loved Movado Museum watch had been stolen and he asked me if I would send him a letter for his insurance company confirming that he was in fact the owner of the said timepiece.

His reason for asking me in particular was because I was with him in Geneva when he purchased the watch in the late 1960s and the insurance company were doing their damnedest to avoid paying him since he no longer had the receipt. Having gone through exactly the same problem with my insurance company when they refused categorically to reimburse the Rolex GMT that I had stolen from me three years ago, I was all too happy to oblige.

I can understand a certain caution by insurers, but who keeps receipts for forty-five years? In my case I provided a photo of me wearing it, but to no avail.

Not a pfennig without the receipt.

I immediately sent Irv a ‘To whom it may concern’ letter by e-mail describing the watch in detail– white gold men’s Movado Museum watch with an 18 carat Milanese bracelet etc. – adding that he had also purchased the ladies’ model for his wife at the same time.

A few days later, back came the request that I send it again after it had been

I

72 LAKIN@LARGE / europa star

notarized. So I telephoned a couple of local notaires publiques in Menton that I have had occasion to use, explained the situation and asked if they would do the necessary. After a few moments of silence, the receptionist, sounding somewhat horrified, stuttered there was no way they could notarize such a letter, but quickly recovered her aplomb to add that if I wanted to change my last will and testament, or acknowledge the existence of a bastard son, they would be more than happy to comply and charge me a small fortune for the service.

I mentioned this to the neighbours who suggested that I go to the local mairie – the town hall – since they are authorized to notarize certain documents.

So off I went with the letter, my passport and a pocketful of euros. I was greeted warmly by a comely receptionist and, in my best French, explained the situation.

“Pas de problème monsieur,” she said as she ushered me into another office where I explained to another buxom lady my quest. She took my ‘To whom it may concern’ letter and my passport, glanced at the text and pointed out that there was a small problem – it was in English.

I explained that it was for an American insurance company and that, although they haven’t spoken English there for years, they were even less likely to understand if it was written in French.

As quick as a flash, the explanation came back that they could only notarize the original if it was accompanied by a French translation – which they suggested I write by hand there and then. Needless to say I complied and apologized in advance for any grammatical errors.

Again, “Pas de problème, monsieur.”

I completed the translation and handed

it and the original back to the lady, who smiled with a “Merci,” and without further ado, brought down an official blue stamp on both letters with such force that she wouldn’t have been out of place in the finale of the 1812 Overture.

They didn’t keep a copy of the letter or my passport and, as far as I could ascertain, didn’t even read the French version. I asked how much I had to pay and with a charming smile the lady informed me, “C’est gratuit monsieur”. A freebie, don’t you just love ‘em?

I haven’t heard the outcome from across the water, but I assume that the Americans accepted my input, although I have my doubts Irv will be compensated.

Needless to say, this reminded me of the story of a lady who telephoned her insurance company asking why she had not received payment of her claim for the theft of her Rolex wristwatch from her locker at the local tennis club.

“Ah, it’s not that simple,” the insurance agent explained. “We have to assess the value of the watch based on its age and the condition it was in when it was stolen.

We then try and find a similar model or reimburse you our estimate of its value.”

There was a long pause before the lady said, “In that case, cancel the insurance on my husband.”

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

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