Europa Star Europe 5.12 Oct./November

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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

SPOTLIGHT ON LUXURY EUROPE EDITION All Europe Central & Eastern Europe, Russia

N° 315 5 / 2012 Oct. / Nov. 10

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CH F 1 2 / € 1 0 / U S $ 1 2

Price ladder: Diamond watches HONG KONG SHOW REPORT Focus on Latin America

In 1839 Vacheron Constantin created several machines, among them the famous pantograph, a mechanical device which meant that for the first time in history principal watchmaking components could be reproduced with total precision, raising the quality of its timepieces once again.

This invention carried the brand into the future and would revolutionise Swiss watchmaking.

Faithful to the history for which it is renowned, Vacheron Constantin undertakes to maintain, repair and restore all watches it has produced since its foundation: a sign of excellence and confidence which still today gives the manufacture its reputation.

Patrimony Traditionnelle 14-day Tourbillon Calibre 2260 18K 5N pink gold, Silvered opaline dial, Hallmark of Geneva, Hand-wound mechanical movement, Tourbillon, Ă˜ 42 mm Ref. 89000/000R-9655

TO BREAK THE RULES, YOU MUST FIRST MASTER THEM. THE WATCH THAT BROKE ALL THE RULES, REBORN FOR 2012. IN 1972, THE ORIGINAL ROYAL OAK SHOCKED THE WATCHMAKING WORLD AS THE FIRST HAUTE HOROLOGY SPORTS WATCH TO TREAT STEEL AS A PRECIOUS METAL. TODAY THE NEW ROYAL OAK COLLECTION STAYS TRUE TO THE SAME PRINCIPLES SET OUT IN LE BRASSUS ALL THOSE YEARS AGO: “BODY OF STEEL, HEART OF GOLD”.

HERE, THE DRAMATIC GALVANISED OPENWORK MOVEMENT OF THIS LIMITED EDITION PIECE – ENTIRELY FINISHED BY HAND – IS ENCASED IN A M O N O B L O C P L AT I N U M C A S E . T H E I C O N I C OCTAGONAL BEZEL IS THEN HELD IN PLACE BY EIGHT POLISHED SCREWS IN WHITE GOLD. PROVOCATIVE STYLING, ELEGANCE, RARITY – SIGNATURE ROYAL OAK.

ROYAL OAK SKELETON IN PLATINUM. Y 40TH ANNIVERSARY LIMITED EDITION.

4 EDITORIAL europa star

Europe, a (still rich) museum R Pierre M. Maillard Editor-in-Chief

Upon my return from a trip to São Paulo, an incredible metropolis of nearly 20 million people (or, about three times the size of Switzerland), I couldn’t shake off the nagging feeling that, inexorably, historically, Europe is on the decline.

The youth of the world, its heartbeat, its dynamism, its velocity and its boldness are elsewhere—in Brazil, in Asia and even soon in Africa.

Blinded by our ethnocentrism, we do not yet realise that the world has really become multi-polar and that new economic and cultural changes are creating a new geography. Thus, for example, we learn that the new African elite have chosen, in great numbers, to complete their university studies not in Europe or the United States, but in Brazil. One example among many, this illustrates the new fabric being woven, a fabric that does not include the “West”, a region in stagnation, or more precisely, one that is turning into a museum.

Watchmaking is a very paradoxical example of this. Essentially concentrated in Switzerland, it is dynamic, inventive, still in full bloom and is a source of new employment (4,000 jobs were created in the second half of this year). The Swiss industry—anything but in decline—seems at first glance to contradict the preceding statements.

But wait! Isn’t watchmaking also emblematic of a form of fallback into a rich but strongly defined territory, that of “luxury”? The objects it produces, continuously more expensive and more coveted (between 2001 and 2011, the

average export price of a Swiss watch nearly doubled, rising from CHF 367 to CHF 650), are also intended for an increasingly affluent clientele.

The spectacular increase in export sales (passing during this same period from CHF 9.660 billion in 2001 to more than CHF 19 billion in 2011) has been due not to an internal dynamism in Europe, but rather to the impressive economic growth of the so-called (for how much longer?) “emerging markets” that has resulted in a new affluent class of consumers and a hitherto nonexistent middle class.

In a way, the world has turned upside down—or is in the middle of a reversal—and, in this new geographical map, Europe, with its splendid cities, its magnificent countryside and its art de vivre, is becoming a museum of continental proportions. It is a museummanufacture where original and invaluable skills endure, but one that provides only objects of pleasure for the world, goods intended for the new leaders who now reign over the global economy.

The contrasting situations of Swiss watchmaking (having fully succeeded its move up market by reviving the apparently obsolete technology of mechanical watches) and French watchmaking (that remains, contrary to French fashion, confined to the mid-range with a loss of its economic strength) clearly demonstrates that Europe is now “constrained” to produce only luxury goods if it wants to succeed. The danger of this particular position is that of a gradual “museumification”.

The European “museum” is still rich.

Yet, we know that—without maintenance and opening up to a larger public—museums become covered in dust, only to finally end up abandoned.

ELMGREEN & DRAGSET "Re-g(u)arding the Guards" 2005 12 museum guards in empty gallery Dimensions variable Courtesy: Galerie Perrotin, Hong Kong & Paris

REINVENT YOURSELF

RENDEZ-VOUS NIGHT & DAY. Jaeger-LeCoultre Calibre 967A. Every woman has a Rendez-Vous, with herself. The Rendez-Vous Night & Day timepiece is entirely crafted and gemset at the Manufacture in the Vallée de Joux, Switzerland. Its automatic movement keeps pace with the constant changes in a woman’s life, as she perpetually reinvents herself. Rendez-Vous is more than a watch, it is a state of mind.

YOU DESERV E A REA L WATC H ladies.jaeger-lecoultre.com

8 CONTENTS europa star

www.europastar.com

THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

N° 315 5/2012 OCT./NOV.

4

EDITORIAL Europe, a (still rich) museum

10

COVER STORY Tudor – A heritage transformed

20 24 28

SPOTLIGHT ON LUXURY Celsius X VI II combines advanced mechanical engineering, fibre optics and telephony Bulgari Octo, the geometry of perfection The audacity of Richard Mille Alexander Shorokhoff – Russian soul, German watchmaking

32

GALLERY Elegant gents’ watches

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PRICE LADDER Diamond watches

40

GALLERY Ladies’ watches in steel

42

CASE STUDY Doxa – making the most of independence

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GALLERY All-black gents’ watches

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STRATEGY Casio’s analogue revolution

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GALLERY Red watches

54 62 64

HONG KONG SHOW REPORT Getting quieter on the eastern front Hong Kong under the WorldWatchReportTM magnifying glass Retailer profile: The Prince of Hong Kong

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FOCUS ON LATIN AMERICA Part 1: The challenges of a blossoming but labyrinthine market

70

EDITORIAL AND ADVERTISERS’ INDEX

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LAKIN@LARGE A bridge too far?

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CONNECTING ICONIC BRANDS TO THEIR CLIENTELE ONLINE

DIGITAL-LUXURY.COM WORLDWATCHREPORT.COM media partner

PELAGOS by Tudor 42mm case in brushed titanium; self-winding mechanical movement with approximately 38 hours of power reserve. Unidirectional rotating bezel in titanium with black ceramic disc, helium escape valve, screw-in winding crown, sapphire crystal. Water-resistant to 500 metres. Titanium bracelet with folding clasp, safety catch and bracelet extension system.

Montres Tudor S.A. 7, rue François-Dussaud CH 1211 Genève 26 Switzerland Tel.: +41 22 302 22 00 Fax: +41 22 300 22 55 www.tudorwatch.com

Europa Star HBM SA 25 Route des Acacias P.O. Box 1355 CH-1211 Geneva 26 Switzerland Tel +41 (0)22 307 78 37 Fax +41 (0)22 300 37 48 www.europastar.com contact@europastar.com © 2012 EUROPA STAR Audited REMP 2011 The statements and opinions expressed in this publication are those of the authors and not necessarily Europa Star.

THE RALPH LAUREN STIRRUP WATCH 18K ROSE GOLD LARGE MODEL. MANUFACTURE MOVEMENT. SELF-WINDING CHRONOGRAPH. 261 COMPONENTS, 48-HOUR POWER RESERVE. SWISS MADE.

NEW YORK

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MILAN

HONG KONG

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SHANGHAI

TOKYO

10 COVER STORY europa star

TUDOR – A HERITAGE ENHANCED RPierre Maillard

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With a noticeable and clear return to good health, Tudor is successfully looking to its past to build its future. Tudor is daring to affirm its own identity by drawing on its rich history (its name was trademarked by Hans Wilsdorf already in 1926 but the brand really started growing in 1946).

One line is particularly emblematic of this vigorous repositioning based upon its roots. Aptly called Heritage, it is one of the keys to the recent success of the brand, which has been managed since 2010 by a new young team working to attract a young, urban, cosmopolitan and technically demanding clientele, but a clientele that also appreciates style, elegance and even a certain emotion evoked by the product.

Two first steps The first really marked step of this “back to the future” strategy was the Heritage Chrono, launched in 2010, that became an immediate icon of the brand. Breathing new life into the Tudor Oysterdate Chronograph of the 1970s, this model methodically revisits its codes while updating them to today’s tastes. Its 40mm size has increased to 42mm and the lines have been tightened up, thus conferring new vigour upon the piece. Yet, its face remains clearly vintage, with a dial in grey, black, or black and grey highlighted by orange details and pentagonal white indexes that have been worked to accentuate their three dimensional effect. One “detail” is also quite impressive: the Heritage Chrono is mounted either on a steel bracelet or on a superb fabric strap woven with black, grey, and orange bands, along with a clasp that has been directly inspired by seat belts of that era. Thus, the piece from 2010, perfectly in tune with today’s tastes, seems almost more authentic than the original that inspired it. This is undoubtedly one of the keys to its success.

The second stage of re-conquering its own

patrimony was the 2011 introduction of the Tudor Heritage Advisor. In this case, it is based on a timepiece from 1957 that has been revisited from top to bottom. The alarm function of this automatic watch, equipped with an additional module, remains unchanged, but its size has increased from 34mm to a much more contemporary 42mm. It maintains the proportions of the original case, the thrust of the lugs, and the purity of the dial, but takes on a new dynamism. The watch is now available in titanium and steel, with subtly alternating polished and brushed surfaces. On the technical side, its movement has been entirely revisited and Tudor has designed a new alarm module. As one doesn’t change a winning team, it also offers—whether on a metal bracelet or alligator leather strap—a second woven black fabric strap that would not be out of place with a tuxedo.

Diving to the source The third step is taking place now, in the company of the Tudor Heritage Black Bay. Here, we need to go back even further, to 1954, to

“A CONCENTRATE OF HUMAN EFFORTS”

TUDOR HERITAGE CHRONO

TUDOR HERITAGE ADVISOR

To make its famous fabric straps, Tudor works with an historic manufacturer, one of the last artisanal “ribbon makers” in existence. (For confidentiality reasons, we are not able to give the name of this company.)

It is surprising to realise just how close watchmaking, in its most artisanal production aspects, and an art such as the fabrication of ribbons actually are. In ribbon making, the savoir-faire and the hand of man continue to play an essential role, even if they adopt ultra-modern technologies. Thus, even if the ribbons of today are designed on a computer and produced using the latest materials, their artisanal production is still based on weaving methods that are as antique as they are sophisticated.

The suppleness and “intelligence” of the human hand remain fundamental, notably in the preparation, the smoothing, and the tension of the threads that will make up the ribbon. Here also, as in watchmaking, meticulousness, precision, and training play a capital role. The time required to complete these operations cannot be reduced, unless it is to the detriment of the quality. As the director of the enterprise muses, “a ribbon is a concentrate of technique, design, harmony, and taste… a concentrate of human efforts.” Might we not say the same thing about watchmaking?

europa star

COVER STORY 11

TUDOR HERITAGE BLACK BAY

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find the source of inspiration for this diver’s watch. That year, Tudor introduced two diver’s timekeepers, one after the other. The first featured water-resistance to 100 metres followed by a second that was water-resistant to 200 metres, both without a date indication. The new 41mm Black Bay is a synthesis of some of the most iconic diving watches from Tudor’s historical pieces such as the early references 7922 and 7924 (8mm crown) as well as the emblematic “Snowflake” reference 7016 and 7021. These watches revive Tudor’s long history with the world of diving (for example, the Tudor Prince Submariner was worn by the American navy and then adopted by the French navy).

Water-resistant to 200 metres, without a date, the Tudor Heritage Black Bay conserves the general structure and design of the original watch, as well as its fine uni-directional rotating bezel that surrounds the curved dial and its slightly curved glass (earlier made in plexiglass, today in sapphire crystal).

It also maintains the design of the middle case, with its delicate elongated lugs and the bevelled edge in between, as well as the large luminescent hour markers and its famous “Snowflake” hands (a request at the time from French navy divers to better differentiate the hour hand from the minute hand in murky waters).

A multitude of small details gives the timepiece its new and very contemporary appearance.

Among them are the delicate notches on the rotating bezel and the large 8mm crown decorated with the Tudor Rose emblem. The very particular dark burgundy colour of its bezel comes from the brand’s archives, inspired by a watch from the early 80’s. Its vintage allure is strengthened by a few subtle differences—a masterful “aging”, such as the chocolate powdering on the black dial, or the scale in a gold tending towards bronze, or even the rose gold that encloses the hour markers and the “Snowflake” hands right down to the light beige tones of the luminescent coating (which glows green in the dark). So many of these fine touches are reminiscent of the piece’s original appearance.

Equipped with an automatic movement, it is available with a steel or aged leather bracelet, and always includes the obligatory woven fabric strap—here, in a deep black colour, but thicker than normal to match the necessary robustness of the watch.

Ready for the great depths Tudor’s second “exercise” for 2012 relating to the world of diving is called Pelagos. In this case, it is less a question of rethinking an earlier model than it is about synthesising various elements taken from the past, such as the design elements of its remarkable square indexes and its “Snowflake” hands. But, while this identity evokes the historical codes, it recomposes them in such a way that a new, original and strong piece is created. A true diving instrument, the Pelagos is very technical. Water-resistant to 500 metres and thus equipped with a helium valve, it is driven by an automatic movement. The case is made of titanium with a satin finish, which gives it a rough look with a patina that accentuates its sporty and professional appearance. Its uni-directional bezel is made of titanium with a sanded matte black ceramic disc sporting indications coated with a white luminescent material.

Developed in conjunction with engineers and professional divers who regularly tested it at depths of 40 metres in the murky waters of Lake Geneva near Tudor’s headquarters, this watch also comes with an innovation that diving buffs will find interesting. The professional divers pointed out to Tudor’s engineers that, under water pressure, the diver’s wrist can lose up to 17 mm in circumference. The brushed titanium bracelet of the Pelagos has therefore been fitted with an “intelligent” clasp. This patented slide system has three positions that, in addition to the traditional lengthening mechanism, allows for a very fine automatic adjustment of the bracelet. Thanks to its spring mechanism, the clasp becomes self-retractable and tightens or loosens by itself, automatically adapting to the variations in the wrist as it is subjected to more or less

pressure. The Pelagos is also available with a rubber strap with a third strand that can be adapted by pulling it.

Synthesis Capturing the iconic essence of the watch does not mean re-creating the older piece’s exact identity, but rather evoking its spirit, in other words, synthesising the stylistic elements of the past and expressing them in the most contemporary manner possible, as well as making technical improvements to their functionalities. Another example of the winning approach taken by Tudor.

Tudor is employing more effective visual communication, emphasising the brand’s design elements, notably the omnipresent red and black, which gives it a strong identity. With its notable specific environment—affirmed sportiness paired with great elegance and a contemporary approach to its vintage spirit— Tudor has well and truly found its place among the plethora of brands.

The brand’s offer is perfectly targeted to its young consumers sensitive to style, many of whom are not even aware of the organic ties between Tudor and Rolex. If they discover them, they can only be reassured in their choice—if by chance they should need any reassurance. O For more information about Tudor click on Brand Index at www.europastar.com

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COVER STORY 13

TUDOR PELAGOS

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Celsius X VI II combines advanced mechanical engineering, fibre optics and telephony RPierre Maillard

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At the launch of Celsius X VI II in 2010, many industry observers voiced a certain scepticism, not seeing any future in this hybrid between the telephone and high-end watchmaking.

Furthermore, the watch industry had barely recovered from the economic crisis of the preceding year (as a reminder, the Swiss watch industry suffered a decline of nearly 25 per cent in exports), and the telephone, even one equipped with a tourbillon and selling for €250,000, seemed a highly unlikely venture.

Yet, the young founding team at Celsius stayed the course because, since the beginning of this adventure in 2006, they had a detailed and very coherent road map to follow. What confused the issue, but at the same time firmly positioned Celsius in the circle of prestige, was that its first product, the LeDix Origine, was the most prestigious product in the brand’s collection.A collection that Celsius X VI II is extending, step-bystep and with great rigour, towards its ultimate goal of combining the two quite opposite worlds of advanced mechanical engineering (“high-mech”) and waves and electric currents.

And, contrary to many brands, Celsius has chosen a strategy of gradually decreasing its prices.

These decreases are, of course, relative, since the second model, the Optic GMT, whose introduction is imminent, sells for around €75,000 and the future model, Hybride, will carry a price tag of around €35,000.

The second paradox of this unusual strategy is that, despite their decreasing prices, the more models that are created, the more their technology is innovative, and the more it pushes the connection between advanced mechanics and the telephone even further. Celsius’s rather crazy plans (which are clearly different from other attempts to accord nobility to the mobile

phone) are to integrate the two opposing worlds, even to the point of creating a telephone signalling its calls by a mechanical chime! Surely no easy task… While waiting for the holy grail of “high mechanical telephony”, let’s take a look at the present offer that is part of the move in this direction.

LeDix Furtif After the inaugural LeDix Origine, in titanium with inserts of ebony wood, created in a limited series of 18 pieces, came LeDix Véloce, in black PVD treated titanium with inserts of LeDix Furtif

Tambour In Black automatic chronograph LV 277 Manufactured in Louis Vuitton’s watchmaking workshops in La Chaux-de-Fonds, Switzerland Sold exclusively in Louis Vuitton stores and on louisvuitton.com.

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OPTIC GMT

carbon fibre, also available in a series of 18 pieces. Now, the latest series of these inaugural telephones has a tourbillon and is called LeDix Furtif, made in carbon fibre and produced as 3 series of 8 pieces, respectively, with black, platinum or rose gold inserts.

Functionally similar to the founding LeDix Origine piece in titanium, the choice of carbon fibre created, however, some thorny problems for its designers. Contrary to a traditional watch, the problems of interference between materials and electronics are particularly acute in telephony, most notably for the antenna and its position. Because of interference and shock resistance issues (a telephone is more easily dropped than a watch), it was impossible to use proven techniques such as forged carbon.

The designers were forced, therefore, to develop a special technique, and in this case in collaboration with Buch Composites, a company in the Jura specializing in these domains. Carbon fibres are glued by strata inside a matrix to form a compact block of carbon fibre that is heat transformed in a high pressure oven. Next, this block is machined in three dimensions, a complex operation that devours tools, but that results in a telephone case with furtive forms that are reminiscent of aeronautics and very unusual material effects. Some 18 months of research were needed to overcome the problems of interference between waves, electric currents, materials and mobile component parts.

The Optic GMT Around the same time as the introduction of the latest series of LeDix, Celsius launches the second stage of the rocket this autumn. It is the new and innovative Optic GMT. Here, we find the now famous “butterfly winding” that arms the barrel of the watch mechanism of the telephone (as a reminder, each opening and closing of the telephone winds the watch movement 2.23 hours). The watch mechanism is based on a Unitas-style movement that has been turned upside down so that the regulating organ is visible under a sapphire crystal (of hitherto unseen proportions) on the telephone’s outer shell.

The movement has been entirely reworked, especially on the level of the index-assembly and the swan’s neck. What particularly differentiates the Optic GMT is the display of the

GMT indication and the date. While the hour, minute and power reserve are traditionally indicated by hands, here the GMT and date are indicated by fibre optics, thus giving the piece its name.

For the first time in timekeeping—and in telephony—mechanically generated indications are displayed using quartz fibres. The choice of quartz fibres (which we also find on the nose of some fighter jets) is due to the non-magnetic

For every single week of the year.

The Patravi Calendar is the ďŹ rst watch in a round case equipped with a movement manufactured entirely by Carl F. Bucherer. The CFB A1004 functional module, the peripheral rotor, the big date switching mechanism and the week display are eloquent proof that the Patravi Calendar is the perfect timepiece for aesthetes and lovers of complex technology alike. www.carl-f-bucherer.com

18 SPOTLIGHT ON LUXURY europa star

properties of this material—an indispensable quality with the presence of antennas, Bluetooth and many other waves. The optical fibre showing the GMT time is positioned vertically above the disc displaying the hours. The effect is a little like a magnifying glass, except that here the number doesn’t seem to be placed at the bottom of a well but rather seems to be floating on the surface, with a slight pixellisation. The date is inscribed on a rotating cylinder and is read at the end of a long fibre optic that, after a bend (shown in blue in the above illustration), ends at the bottom of the telephone’s case. The number seems to appear on the surface of the lower section of the telephone (for example, when it is set on a table), which, thanks to a hybrid technology, is lit by a small LED. This gives it the appearance of a central headlight of a concept car, emphasizing even more the design qualities of the Celsius X VI II products.

Three different models of the Optic GMT will see the light of day, each available as a limitededition of 28: the Optic GMT Furtif in microblasted carbon fibre and braided quartz fibre to protect the antenna; the Optic GMT Origine in grey titanium, braided carbon fibre and quartz fibre; and the Optic GMT Veloce version in black titanium, braided carbon fibre and quartz fibre, with polished and satin finish on the case and blued bridges of the mechanism.

A second use of fibre optics in the Optic Lune model is expected to be launched at BaselWorld 2013.

En route towards the Hybride The third phase of this technological melange is already in development, and its name evokes the research underway: Hybride. Essentially, the idea is to wind a very large barrel (con-

taining a 4-mm spring unwinding over a length of 1 metre) by opening and closing the cover of the telephone. The barrel then unwinds in a sort of kinematic spectacle that comprises four generators rotating at 8,000 revolutions per minute, with considerable forces thus generated in the teeth. The four engineers at Celsius involved on this project full time (some ten prototypes have already been tested) have worked closely with Mimotec, most notably on the bearings, which cannot be made in the traditional manner with jewels. For the moment, one opening of the cover provides one second of conversation. They are still far from the final result, but, step-by-step, the dream of a totally mechanical and autonomous telephone is well on its way.

When the Hybride model is finally released, it will include an authentic “watch” mechanism, although it will not display time indications.

Its price tag will be around €35,000. As to when that will be, the brand’s management understandably remains cautious. Concerned about confidentiality, it is saying nothing more for the time being.

keyboard, rather than touch technology. The idea is to remain as simple as possible for this telephone that is an “intimate and emotional object”. Counter to the smartphone, the choice of functions is based on the simplest and the most useful: telephony, messaging, address book, internet sub-menu, email and camera.

The last three functions, however, will be removed in the upcoming models of the Hybride, which will be based on the Android 3G platform. One of the reasons for this choice of simplicity is its long lasting lifespan. Like a high-end watch, a Celsius should be perennial, with the possibility of being passed from one generation to the next.And, between now and the next generation, who can say, besides the basic telephone functions, if we will even be using the same channels of communication?

The brand’s passage to 3G technology will open doors for Celsius in the markets of Japan and Korea, which use this platform. Today, the distribution of Celsius X VI II is primarily in Europe (Harrods in London, Les Ambassadeurs in Switzerland, Chronométrie in France...) and in Asia (The Hour Glass in Singapore, Prince and Lane Crawford in Hong Kong...). Markets being developed at the current time are the Middle East, South Africa, Israel, Australia, Russia, and Lithuania.

Celsius works only with retailers that purchase its products directly. The brand does not work on consignment. And, because of exclusivity, the idea is not so much to increase sales points but rather to work only with the most important and the most respected retailers around the world. O

Simplicity and intimacy Contrary to the other players in the telephone sphere, Celsius X VI II has chosen a standard

For more information about Celsius click on Brand Index at www.europastar.com

1st Prize in the Classic Category

Tissot Le Locle Automatic Chronometer

Classic watch with an automatic COSC certified movement, 316L stainless steel case, scratch-resistant sapphire crystal and water resistance up to 3 bar (30 m / 100 ft).

IN TOUCH WITH YOUR TIME Get in touch at www.tissot.ch The winner timepiece of the International Timing Competition, “Tissot Le Locle”, portrays the innovative and traditional values of the brand. It pays tribute to the people of Le Locle who allowed Tissot to begin their exceptional journey nearly 160 years ago, providing them with the experience and skills they have today.

This prize is therefore dedicated to all of those who contributed to the expertise that remains unique to Switzerland.

20 SPOTLIGHT ON LUXURY europa star

Bulgari Octo, the geometry of perfection RPaul O’Neil

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The sheer scale of the presentation of the new Bulgari Octo in Rome earlier this year gave an indication of the importance that Bulgari attaches to the piece. Journalists and customers alike were treated to separate presentations at the Complesso Monumentale Santo Spirito in Sassia, an ancient hospital a stone’s throw from the Vatican City that was established in the 12th century by Pope Innocent III. The historic monument was undoubtedly chosen as the main venue for the day’s proceedings due to its magnificent octagonal courtyard. Indeed the octagon, and its historical and spiritual significance, was the recurring theme throughout the day as Bulgari stressed the importance of its new design theme as “the geometry of perfection”.

This was followed the same evening by a spectactular al fresco dining and entertainment experience in the shadow of Rome’s Olympic stadium.The evening was kicked off by Bulgari’s new CEO, Mr Michael Burke, who had only been in the job for 88 days, which unintentionally continued the “8” theme. Mr Burke is the first CEO of Bulgari who does not come from the Bulgari family.

Francesco Trapani

Think octagons and Audemars Piguet’s Royal Oak model might spring to mind. The latest incarnation of the watch with the octagonal bezel, in celebration of its 40th anniversary, has a very classic design in a modest 41mm case. Bulgari’s new Octo has the same dimensions and its own interpretation of a classic design, but here it is the case that is octagonal, while the bezel is round.

Both the case and the dial for the new Octo model (in addition to the BVL 193 calibre movement) are produced in-house by Bulgari.

In contrast to the simplicity of the round bezel, the case, which measures 41.5 x by 10.55mm, comprises no less than 110 facets, all hand-

finished with polished and satin-brushed surfaces, to create a series of octagons. The outer shape of the case is octagonal and a separate raised octagonal profile creates two additional octagon forms either side of the circular bezel, elegantly framing the piece’s black lacquer dial. The Octo thus vaunts Bulgari’s inhouse design expertise and capabilities just as much as its watchmaking prowess.

The two Octo models presented at launch were in stainless steel or red gold, both on a black alligator leather strap. There is already a considerable price difference between the steel and gold models, which makes one wonder whether an Octo with a gold bracelet is a viable option.

The BVL 193 calibre found inside the Octo is an 11½ line self-winding movement that operates at 28,800 beats per hour and, thanks to twin barrels, offers a power reserve of 50 hours. Its fine decoration includes a circulargrained mainplate, snailed bridges with Côtes de Genève motif with chamfered and polished edges, polished pivots and satin-finished wheels, as well as tone-on-tone diamond-polished jewel surrounds.

Is this new design part of a trend towards the more classical? At the launch event in Rome, Europa Star put the question to Mr Francesco Trapani, President of LVMH Watches & Jewellery, and asked about future developments at Bulgari.

europa star

Europa Star: With the launch of the Octo it seems like we are seeing the continuation of a trend that we saw at the SIHH and BaselWorld earlier this year. A trend towards smaller and simpler designs. Is that something that you have been consciously working on?

Francesco Trapani: Partially yes. If you look at the market, there are two trends. There is one towards watches that are a bit smaller, simpler, more classic. But at the same time you see the great success of companies that are doing exactly the opposite. If I look at my portfolio, in the first half of this year Zenith was performing very well and Hublot also, and they are doing exactly the opposite. Zenith is very classic and very minimal, while Hublot is very flashy, very big, very aggressive. Both are doing extremely well. If you look at Bulgari, we are not compara-

SPOTLIGHT ON LUXURY 21

ble with Hublot in terms of style. We are a bit more simple than before but we still try to say something design-wise. Our objective is not just to offer our customers Swiss Made manufacture watches but also bring something with a strong character in terms of image and design. I think that this product is a perfect example, because it has all the technical characteristics of a sophisticated Swiss watch but at the same time has a strong design. This is why we are saying that this is going to be the ambassador for the brand as far as gents’ watches are concerned.

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ES: Do you see this watch doing well in any particular market or is it intended more for global appeal?

FT: Bulgari is a global company because we do not depend on a single ethnic group. In Asia we are very strong among Chinese, Koreans and Japanese. We are strong in Europe, we have a good footprint in the Middle East and the US is also an important market. So to be successful we need to have products that can be successful all over the world. We think that the Octo, although it is quite a westernised product, will also appeal to the Asian market.

ES: Are you looking to expand your distribution and if so, where?

FT: Latin America is a very interesting market because on the one hand people are very interested in luxury products. But on the other hand, it is still relatively small for a number of reasons, one of which is that the customs duties are very high. Having said that, Bulgari is now looking at Latin America in a different way. We have recently opened a wholly-owned subsidiary in Brazil, which will open a first directly operated store in São Paulo. We think that this move is important both to develop the local market and as a means of communication to people who travel, for example existing Brazilian customers from Miami, New York, Paris or even Italy.

We are also looking to expand a little in India.

Everybody is talking about India but as a matter of fact it is quite a small market for luxury products. There are two categories that could be successful in India: perfumes and watches.

So Bulgari will do a bit more than we have in the past but I wouldn’t say that it is a strategic market. Brazil, on the other hand, is going to be an important market in around three years from now in our expectation.

ES: How will the new Octo fit into the existing collection, particularly with regard to the highend Daniel Roth pieces?

FT: If you look at the assortment of products, we have three main pillars. The first is Octo, which has the two new references we have launched with the new design, plus a few older ones with some small complications but these will evolve to be fully consistent with the new design. In addition, next year and the year after you will see new additions. There will be colours, bracelets and movements.

The second pillar is the logo family, the Bulgari Bulgari and Diagono collections. These are by far the largest contributor in terms of sales.

The third pillar is the Daniel Roth line that is and will remain focussed on grand complications.

ES: Will your in-house movement be used primarily in the Octo?

FT: No, production of our in-house movement, which is still limited series, will start to increase over the second half of the year and will then increase considerably next year. Little by little, it will then equip the very large majority of our gents’ watches and also some of our ladies’ watches.

ES: What is the split between ladies’ watches and gents’ watches in terms of sales?

FT: Today we do 60 per cent ladies’ watches and 40 per cent gents’ watches.This percentage should not change much over the next three years because we have a lot of things in the pipeline for both ladies’ and gents’ watches.

We want to grow in a balanced way. O For more information about Bulgari click on Brand Index at www.europastar.com

Master Series

masterpieces

Treasure the past, embrace the future

TITONI LTD. Sch端tzengasse 18 | 2540 Grenchen | Switzerland | Phone +41 32 654 57 00 | www.titoni.ch

24 SPOTLIGHT ON LUXURY europa star

The audacity of Richard Mille Prompted by this apparent marketing boost, Europa Star quizzed Richard Mille on the strategy for his eponymous brand.

RPaul O’Neil

R

Richard Mille announced two major new sponsorship agreements this summer. The first as official timing partner of Manchester City football club, the second as the watch of choice of Jamaican sprinter Yohan Blake. Both announcements put the brand on a head-tohead marketing offensive with Hublot, which sponsors the main rivals of the club (Manchester United) and the athlete (Usain Bolt). But it was the new partnership with Blake that generated the most headlines, since Mille encroached not only on the turf of Hublot, but also that of Omega… in the middle of the Olympic Games! Yohan Blake donned a customised Richard Mille tourbillon with a highly visible

Europa Star: Earlier this year you mentioned keeping production limited to a maximum of 2500 pieces per year. Does this objective still stand?

Richard Mille

yellow Velcro strap as he lined up for the 100 metres final in London. The audacity of this cleverly orchestrated public relations initiative (which flirted with breaking the rules imposed by the International Olympic Committee on athletes featuring in advertising during the Olympic Games) generated unprecedented coverage for the brand.

Richard Mille: I think it will be around 26002700 but it will be more or less within this range. I am not interested in volume. I think the day that Richard Mille starts producing 5,000 watches, for example, I would enter an area where I don’t really want to be. I would have more commercial worries and I would have to put aside some of the things I do now.

For example, I wouldn’t be able to launch five or six new watches each year like I do now.

That is not something I’m interested in.

ES: Does that mean that you are not interested in growing the business?

RM: Our average price continues to grow, which leads to a notable increase in turnover each year. Plus there is a small but regular increase in volume. There are also some reservoirs for further growth because there are still a lot of countries where we are not present. Germany, for example, or Scandinavia, or Eastern Europe.

ES: What about the countries where you are present? Which ones are doing best?

RM 031 HIGH PERFORMANCE The heart of this piece, with a new round 50mm case, is a direct-impulse escapement developed by Audemars Piguet Renaud & Papi for Audemars Piguet. A combination of a detent escapement and a traditional Swiss lever escapement, the escape wheel in the AP escapement acts directly on the balance wheel and thus offers superior chronometry.

The result is a variation of only 0 to 30 seconds per month, compared with the COSC criteria of -4 to +6 seconds per day. This high-performance watch in platinum is produced as a limited edition of 10 pieces.

MONTRES VENUS S.A.

19A rue de la Croix d' Or • CH-1204 Genève-Suisse Tel. +41 22 310 8770

26 SPOTLIGHT ON LUXURY europa star

RM 052 TOURBILLON SKULL A number of watches featuring skulls have been launched of late, but the RM 052 Tourbillon is perhaps the only one in which the skull is integrated into the movement. Its upper and lower jaws hold the tourbillon cage, while the back of the skull acts as the movement’s centre bridge. The four bridges that connect the movement to the case are arranged diagonally to produce a stylised “Jolly Roger”. Limited edition of 21 pieces, of which 15 in titanium and 6 stone-set pieces in red or white gold.

RM: As I am lucky enough to have demand outstripping supply, I organise sales into three different zones and try to distribute products equally across the Americas, Europe and the Middle East and Asia. This works very well and I would like to stick to it for reasons of caution.

ES: You have a very simple way of naming your watch models. Is there a logic behind it?

RM: No. I didn’t want to lose any time searching for names for the models. I preferred to spend my time working on the models them-

selves. It works like this: if I think up a model, we do a feasibility study, which is usually quite quick. It will simply say whether it is doable or not. If it is doable, we go ahead—without considering what the final cost or development time might be.

ES: You offer a five-year warranty that even covers certain shocks. How do you determine whether a shock is intentional or not?

RM: I put myself in the customer’s position. He may have spent upwards of CHF 200,000 on his watch and, after a slight shock, it might stop. Then the customer’s watch is sent back to the factory, where they look at it under a loupe and say that there was a shock so the warranty is not valid. I wanted to stop the endless discussions about shocks, so unless the watch has clearly been thrown against a wall or something, then we will honour the repair under warranty. I also need to be consistent: there is no point in putting my watches on the wrist of

Felipe Massa, Rafael Nadal or Yohan Blake and then at the same time saying that if you have the slightest shock to your watch then it is no longer covered by the warranty.

ES: How do you organise customer service for such small production quantities?

RM: We have set up a sort of “service station” in each of our three main zones. If you look at the statistics, 80 per cent of customer service issues are not serious. It may be a small shaft that breaks, or a hand that comes loose. These are things that can be repaired on site. Only the watches that have stopped and require more complicated work are sent back to the factory. If you think about when you have your car repaired, the garage may keep it for a few days. But if you send your watch in to be repaired you might not hear anything for months. That’s when the love of a brand can suddenly turn to hate. So we have set up a system on our website where the customer

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RM 057 TOURBILLON JACKIE CHAN Lest we forget, 2012 is the year of the dragon and the Chinese name of Hong Kong actor and director Jackie Chan, who has been a friend of Richard Mille for a number of years, means “one who will become dragon”. The RM057 celebrates both with a painstakingly hand-engraved red-gold dragon encircling the tourbillon movement. A base plate in black onyx (considered a charm stone against spells) bears a disc with the signature of Jackie Chan, which rotates once per minute in line with the tourbillon. Limited edition of 36 pieces in 18-carat red or white gold.

can follow the repair process. We even include photos to explain what we are doing.

ES: You mentioned the sportsmen who wear your watches.What is the strategy behind your more recent sponsorship announcements with Manchester City and Yohan Blake?

RM: The owners of Manchester City are very big watch fans and have close associations with the automobile world, so this is something we have in common. Furthermore, the coach Roberto Mancini also loves watches, in

particular Richard Mille. There are also a lot of the players who wear Richard Mille watches.

So the association came about naturally. It was a similar thing with Rafael Nadal. He loves watches but he would not entertain the idea of competing wearing a watch, so I had to convince him with a watch that had been made especially for him.

ES: So it’s important for you that these athletes wear the watch?

RM: It’s compulsory! I will not sign a contract with the athlete unless they wear the watch.

ES: Can we expect to see more Richard Mille stores opening?

RM: Yes. Most of our stores are managed as joint ventures with local partners. But we have seen that it was a good idea to open them. We opened inside Harrods in London last year and the watches are selling really well and they

SPOTLIGHT ON LUXURY 27

account for the biggest share of sales for watches in Harrods. The store in Geneva is managed by Audemars Piguet, who have been taken aback by the sales. The Paris store is doing very well, as are all the stores in Asia.

Sales at our Tokyo store were up 50 per cent, despite all the problems in Japan. Our priorities for the future are Miami and New York, Milan and Germany. Then in Switzerland we will open in Zurich.

ES: And what about your sales for this year and your predictions for the future?

RM: We have done very well this year because we were able to organise our deliveries much better. Sales are progressing well, even in Europe. There seems to be more availability from suppliers, so my deliveries have improved as a result. I am very optimistic for the future. O For more information about Richard Mille click on Brand Index at www.europastar.com

28 SPOTLIGHT ON LUXURY europa star

Alexander Shorokhoff – Russian soul, German watchmaking RPierre Maillard

A

Alexander Shorokhoff is profoundly Russian, and is proud to proclaim it, like those countrymen who have greatly inspired him and to whom he has dedicated some of his collections: Peter Tchaikovsky, Fyodor Dostoyevsky, Alexander Pushkin, and Leo Tolstoy. His “Russianness” is also seen in his deep artistic sensibility, whether in his choice of shapes, materials, and colours or in his love of artisanal crafts—quite the opposite of today’s dominant industrial coldness.

Like those from whom he draws inspiration, Shorokhoff is Russian by his cosmopolitan vision. Established for more than twenty years in Germany in the small town of Alzenau, not far from Frankfurt, he runs a watchmaking atelier employing some fifteen people. His brand’s reputation has been built upon the noble artisanal specialty of engraving the movement. This hand-engraving is often pushed to the extreme and features various shapes, curves, and contrasting materials, all of which give his pieces a unique and very recognizable “Russian” allure. “We must, at all costs, differentiate ourselves from the others,” he explains, “because offering something different—unique in all senses of the term since each watch is truly exclusive—is really one of the only ways we can counter the ruthless competition of the large global luxury brands. This manual and decorative approach is also found in the very special and clearly affirmed design of our timepieces. I might also mention that we use colour on the dials as well as in the movements.

I can assure you that it took a lot of courage to dare to propose polychrome watches such as our provocative Miss Avantgarde.”

The courage of colour Garnering a lot of attention at the last BaselWorld show, Shorokhoff’s Miss Avantgarde is emblematic of the particular style of the Russian watchmaker. Unlike any other timepiece, the Miss Avangarde line (reference AS.AVG02) features a dial divided into time sections, each with a different colour and motif: black, blue, green, red, yellow, white, and silver; with designs such as chessboard, stripes, geometric forms, circles, and spirals in provocative styles while still allowing for easy reading of the time.

Crafted with the cold enamel technique, the dial has indices made of brilliants surmounted by a very large and symbolic number “60” that is found in all the pieces of the Avantgarde collection. Equipped with an automatic ETA 2824 movement, its rotor is also, as we would expect, hand-engraved. Available in a limited series of 500, selling for € 990, this talking piece is, in the words of its designer Alexander Shorokhoff, “not for everyone.” It is rather a demonstration of creative freedom in the form of “an alternative to what is being proposed by the large dominant brands.”

AVANT-GARDE – MISS AVANT-GARDE

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appearance than the Heritage line.As its name indicates, the latter is based on the very Russian ideas of its creator.

Artisanal heritage

AVANT-GARDE – WATCH DANDY

AVANT-GARDE – NEW PORTUGUESE

On the masculine side, this demonstration of creative liberty takes the name of Watch Dandy (reference AS.AVG01), available in a limited series of 168 watches featuring a 43.5-mm steel case, water-resistance to 5 ATM, automatic ETA 2824 movement, and engraved rotor. The black dial is engraved with the Clou de Paris motif and is partially covered with a strange design of lines that makes the viewer wonder if these forms represent “space or the lightning movements of a Ninja, and if they are traditional or high-tech,” says Alexander Shorokhoff with a smile.

But he also presents his Avantgarde collection, launched in 2011, as an expression of the “German portion” of his Russian soul. Here, we find an entire series of manual or automatic chronographs on a Dubois-Dépraz-modfied ETA base as well as a chronograph with a Valjoux base made in Russia whose display has been transformed into a regulator. There is also a more classic model—the New Portuguese— whose dial is engraved with braided motifs, which is available in four colours. Also surmounted by the number “60,” this Avantgarde line is more tempered and more classic in HERITAGE – PETER TCHAIKOVSKY BIG ALARM

Launched in 2003, the Heritage collection is made up of the artisanal lines named Peter Tchaikovsky, Fyodor Dostoyevsky, Alexander Pushkin, and Leo Tolstoy. For this collection, each timekeeper is entrusted entirely to the care of a master watchmaker who must see the piece to its completion. (Thus, each piece comes with a certificate signed by one of the head watchmakers.)

One of the most richly engraved timepieces comes from the Leo Tolstoy line. Each movement—in this case the Russian 3133, which is identical to a Valjoux calibre—is completely dismantled, hand-engraved right down to the smallest details, then patiently reassembled, adjusted, and checked. Each movement is therefore totally unique and some even more exclusive models are completely skeletonised and inserted into cases that are also richly engraved.

One of the most recent examples of this highly skilled artisanal work is the alarm watch in the Peter Tchaikovsky line. It is equipped with a Schild movement, also made in Russia, of which Alexander Shorokhoff purchased all the remaining calibres. The particularity of this watch is that it can be placed in a vertical position to become a veritable mechanical alarm clock. Distributed in thirty countries— including Germany, Great Britain, and the USA—this niche brand is especially appreciated in Asian countries. The markets of Japan, Hong Kong (in twelve stores in this city alone), Singapore, Malaysia, Thailand, and the Philippines are becoming increasingly fond of this elegant and artisanal alternative timepiece that combines German watchmaking rigour with the complex Russian soul. O For more information about Alexander Shorokhoff click on Brand Index at www.europastar.com

32 GALLERY – ELEGANT GENTS’ WATCHES europa star

EL PRIMERO ESPADA by Zenith The Espada combines understated elegance in a 40mm case with Zenith’s high-frequency El Primero movement, which beats at 36,000 vibrations per hour (5 Hz) and offers a power reserve of 50 hours. The Calibre 4650B version of the movement used in this model provides hour, minute and central seconds display, which is conveyed by elegant facetted hands and applied, facetted hour markers against a graduated dial.

SLIMLINE TOURBILLON MANUFACTURE

by Frédérique Constant Independent manufacture Frédérique Constant introduces an affordable tourbillon with a silicium escape wheel and lever in its FC-980-3 in-house movement that beats at 28,800 vibrations per hour and offers a power reserve of 48 hours.

This model comes with a 43mm case in polished stainless steel with a bezel in polished stainless steel or 18-carat red gold, each version individually numbered and limited to 188 pieces. It is fitted with a black alligator leather strap with folding clasp and is presented in a luxurious wooden gift box.

ORGANIC SKELETON by Kees Engelbarts Geneva-based Dutchman Kees Engelbarts specialises in producing unique hand-made watches.

The Organic Skeleton is a unique piece with a 42mm platinum case with a hand-engraved and skeletonised manually wound movement and 120-hour power reserve thanks to twin barrels. A black alligator leather strap with platinum folding clasp complete the piece.

HLC 06 by Hautlence An elegant interpretation of Hautlence’s signature design, the HLC 06 uses the brand’s third in-house hand-wound calibre to power the jumping hours and retrograde seconds in a 41mm diameter case in red gold. Operating at 21,600 vibrations per hour and with a 40-hour power reserve, the movement uses Hautlence’s patented mechanism that combines the sliding movement of the snail feeder spindle’s retraction with a gold inertia block acting as an inertia wheel and providing the energy required for the hour disc to jump.

Limited edition of 88 pieces.

POLARIS by Grieb & Benzinger This particular Polaris model is the result of a special request from a watch collector who is passionate about horses and wanted a watch to match his bespoke riding outfit. It has a case made of solid white gold and palladium with a solid silver dial that has a hand guilloché Breguet frosted finish typical of the brand. Red-gold appliques surround the time and small seconds scales and frame the apertures that reveal the skeletonised and guilloché movement, which is also realised in-house at Grieb & Benzinger.

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Diamond watches – still shining RKeith W. Strandberg

D

Despite an uncertain global economy, diamond watches are still going incredibly strong.

There was a time when diamond watches were a sub-category in the overall watch industry – well, no longer. Today, diamond watches are a category unto themselves, and this category is only getting bigger and bigger.

Diamonds in all shapes and sizes “Over the past few years, there has been a tremendous increase in the demand for diamond watches, both for men and women,” says Frederic de Narp, president, Harry Winston.

“For women, a diamond watch is the ultimate expression of femininity, elegance and sophistication. Diamonds have almost become ‘a must’ on women’s watches, not only on dress watches but also on sports watches.

Diamond watches for men are also gaining in popularity.”

HUBLOT FIVE MILLION DOLLAR BIG BANG

$ 5,000,000

THE RESPONSIBLE JEWELLERY COUNCIL

DIAMOND CLARITY AND COLOUR GRADING

The Responsible Jewellery Council is an international, not-for-profit organisation established to reinforce consumer confidence in the jewellery industry by advancing responsible business practices throughout the diamond, gold and platinum group metals jewellery supply chain.

It seeks to work with a wide range of stakeholders in defining and implementing responsible jewellery practices through the RJC’s certification system.

Membership is open to all businesses and associations that are either involved in the diamond, gold and platinum group metals jewellery supply chain or engage in activities that have a potential impact on it.

Diamonds are graded for clarity, with the highest grade being Flawless, followed by VVS1, VVS2, VS1, VS2, SI1 and SI2. Note, all diamonds from SI2 up are considered “eye clean” as flaws (inclusions) cannot be seen by the naked eye.

For colour, diamonds are graded on a scale from D to Z. D, E and F are known as the “colourless” grades.

D is used for bigger diamonds, which are easier to grade for colour due to their size. Most smaller colourless diamonds are graded E and F, due to the difficulty in grading smaller diamonds, like those used on watches.

Mission Statement To advance responsible ethical, social and environmental practices, which respect human rights, throughout the diamond, gold and platinum group metals jewellery supply chain, from mine to retail.

For more information: www.responsiblejewellery.com

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BAIGNOIRE DE CARTIER, Large size, white gold, diamond-paved

PRICE ON DEMAND

The history of diamonds on watches is a long one, dating back to when Calvin forbade the wearing of jewellery in the 16th century.

“Geneva used to be in Calvin's time a jewellery centre before the watchmakers arrived,” says

HARRY WINSTON OCEAN TOURBILLON BIG DATE, 18-carat rose-gold case set with 62 baguette-cut diamonds (approximately 7.25 carats).

$341,300

ROGER DUBUIS EXCALIBUR 45 DOUBLE FLYING TOURBILLON SKELETON, white gold

CHF 594,000 Jean-Claude Biver, Chairman, Hublot. “And since then watches and jewellery have always been associated. Watches will always be associated with precious stones, especially since watches have become not just a timepiece,

ZENITH EL PRIMERO TOURBILLON (fully-paved, including on the dial)

CHF 220,000

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GRAFF SUPERSTAR 38MM, a total of 216 trilliant cut diamonds on the case, 52 princess cut and 52 brilliant cut on the bracelet and 20 on the buckle.

$600,000 but much more a ‘Communicating Instrument’ for the wrist that helps to promote status.”

Today, diamonds are aspiration, something people plan to have at some point in their lives. And when they finally purchase their diamond timepieces, they feel they deserve it.

“Diamond watches are necessary to keep the dream alive,” says Laurence Nicolas, president, Dior. “They are, most of the time, used for indexes or bezels. Our particularity is to use them for some of our Dior VIII Grand Bal equipped with the Dior inversé calibre. In this line, the oscillating weight, placed on top of the dial, is openworked and set. It creates more magic and accentuates the swirl of a ball gown effect.”

Baume & Mercier is well known for value, and their diamond watches continue to sell well, according to Rudy Chavez, president, Baume & Mercier North America. “Steel and diamond timepieces for ladies are very popular as they provide wonderful versatility for women to wear them casually in the office, or more formally in the evening,” he says. “This year we extended our Linea Collection by introducing a larger 32mm steel and diamond offer in both quartz and automatic. The steel bracelet

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DE GRISOGONO TONDO TOURBILLON GIOIELLO S03 Brown PVD white gold set with brown diamonds

$199,800 can be easily taken off and replaced with a black satin strap for a more formal evening timepiece.”

Diamond watches, in all their dazzling varieties, are here to stay. “We expect that diamond watches will always be popular at Graff as diamonds are part of the DNA of our brand and the core of what we do,” says Michel Pitteloud, CEO, Graff Luxury Watches. “At Graff our diamond watches are extremely popular.

We are known for rare and important diamonds and this diamond knowledge and expertise has transferred to our watch designs.

Our diamond watches are popular in the Middle East and Asia in particular.”

For some companies, diamonds on watches are a big part of their offerings.“Today as in the past Franck Muller diamond watches and also Backes & Strauss watches that feature diamonds are a very successful part of our business,” says Ron Jackson, President, Franck Muller North America. “Especially in the ladies segment. We believe that diamond watches are here to stay! As a result we are continuing to produce the watches with diamonds from the existing collection and also introducing new models for gents and ladies with diamonds. However

PATEK PHILIPPE 5961P, Platinum case, bezel, dial and clasp with baguette diamonds

CHF 130,000 in the North American Market men’s diamond watches are not as important as ladies’.”

Cartier, the jeweller among watchmakers, acknowledges the popularity of diamond watches. “Today, diamonds are everywhere,

HAUTLENCE HLC03 in white gold with diamond-set bezel (1 carat)

CHF 66,000

ROGER DUBUIS VELVET HIGH JEWELLERY in pink gold fully paved with 1,300 diamonds

CHF 119,000 and especially for women,” says Thierry Lamouroux from Cartier. “Most of the feminine watches are paved with diamonds, from small paved indexes on the dial to fully paved watches. This is a strong and long-term trend.

BACKES & STRAUSS REGENT DIAMOND TIME in 18-carat red gold with 288 ideal cut diamonds on the case and 140 on the dial

CHF 53,300

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PRICE LADDER 37

“Frédérique Constant watches with diamonds are very popular,” says Aletta Stas, co-owner, Frédérique Constant. “Our Ladies Automatic Collection, which includes our worldwide bestselling Double Heart Beat models, has diamonds on the dial and case. I expect this will stay. It makes a watch very feminine and different from gents’ watches. Some women consider their watch as a jewel and like having diamonds on it.”

Diamond quality, blood diamonds and certification ICE-LINK SNFL1RGRBL, 18-carat rose-gold case, 112 diamonds (1.8 carats), 131 rubies (1.7 carats)

$48,600 Diamonds are and should stay synonymous with femininity in watchmaking.”

Tissot, one of the strongest brands in the Swatch Group, has increased its diamond offerings in response to strong demand. “Women

PATEK PHILIPPE 4968R in rose gold, 273 graduated size diamonds set in a spiral on the bezel and case

CHF 48,000

FRANCK MULLER RONDE Collection, 18-carat rose gold, full diamond dial

CHF 58,800 continue to perceive watches as jewellery and hence watches with diamonds are especially attractive to American women,” says Sharon Buntain, president, Tissot North America.

“Diamonds are forever.”

DIOR VIII GRAND BAL RESILLE, black ceramic case, bezel and white-gold inversed oscillating weight set with diamonds

€ 25,000

Depending on the price, diamond quality is certainly an issue to consumers.At the lower end of the price spectrum, quality is not so important, but when prices climb, the demand for clarity, colour, carat weight and cut (the 4 Cs) climbs.

The issue of conflict, or blood, diamonds gained worldwide attention in 2000 and led to the adoption of the Kimberley Process in January 2003. Today, watch companies know how

RALPH LAUREN 867 in 18-carat white gold with two rows of brilliant-cut diamonds

$18,900

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FERRAGAMO IDILLIO in IP gold with 72 diamonds on the case, 258 rubies and 40 diamonds on the dial

$4,800 important it is to give their customers peace of mind.

“The blood diamond issue is still an important one and it is essential that clients request a certificate of origin when buying a diamond,”

BAUME & MERCIER HAMPTON, Stainless-steel case set with diamonds (0.17 cts)

CHF 4,100

FRÉDÉRIQUE CONSTANT CHOCOLATE DOUBLE HEART BEAT, in rose-gold plated steel with diamonds on the bezel and dial

$4,500 says Harry Winston’s de Narp. “The diamonds in Harry Winston watches are purchased from global sources that adhere to the Kimberley Process Certification Scheme and The System of Warranties, which are the industry stan-

TISSOT T12 in stainless steel with diamonds on the bezel and dial

CHF 2,350

dards governing the purchase of diamonds from non-conflict areas.”

The watch industry acted quickly and adopted the Kimberley Process and certification. “I believe that the industry has addressed this topic very directly and that all of the major watch brands have taken this issue seriously,” says Baume & Mercier’s Chavez. “Baume & Mercier became a proud member of the Responsible Jewellery Council (RJC) in August 2011. All RJC members are required to be audited by accredited third party auditors that ensure that the company’s practices conform with the RJC’s strict Code of Practices.”

The diamonds themselves are often certified by independent gem labs. “All diamonds in our watches pass through an extremely stringent control by our experienced gemmologists,” explains Pitteloud from Graff. “The large stones in our watches (over 1ct generally) are all certified. For example, if you purchase the MasterGraff diamond tourbillon watch you will receive 24 GIA certificates for all of the stones on the bezel! In addition, we adhere to the Kimberley Process and international controls that prevent the distribution of blood diamonds.

As such, this is not an issue with our customers.”

Sourcing diamonds is a challenge for watchmakers, as companies have to seek out the best suppliers and really get involved in the selection of stones to make sure they get the very best. “Engaged in a never-ending quest for irreproachable quality, notably in terms of the decorating of its timepieces, the Manufacture Zenith only uses exceptional diamonds – either round or baguette cut – to make its jewelled watches sparkle,” says Jean-Frédéric Dufour, president, Zenith. “Thus, in terms of clarity, the Zenith Manufacture only uses the purest diamonds, notably diamonds in the IF, VVS and VS range. The same applies to the colour of the stones, which, in order to be used by the Manufacture’s gem-setters, have to be in the D categories for baguette-cut diamonds,

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TISSOT DRESSSPORT in 18-carat gold set with diamonds

CHF 1,760 and F or G in most other cases.

“In order to obtain the most sought-after diamonds, the Manufacture Zenith relies on a network of experienced professionals with proven skills,” he continues. “The company

GC MINICHIC with full diamond bezel, €695 with diamonds on the dial, €310 without

€ 695

CITIZEN SIGNATURE OCTAVIA DIAMOND, Stainless-steel rose gold tone, 57 diamonds.

$1,495 works with a renowned diamond supplier and an experienced gem-setter, both based in Geneva. They are amongst the best in the business and also work for the biggest names in watch and jewellery making. Attentive to

CITIZEN ECO-DRIVE CIENA ROSE, Stainless-steel rose gold tone, 20 diamonds

$450

PRICE LADDER 39

the honesty, legality, transparency and good management that must prevail in precious stone trading, the Zenith Manufacture has established measurable processes that have enabled it to obtain Responsible Jewellery Council (RJC) certification. This organisation ensures the highest ethical, social and environmental standards.”

It takes a commitment to do it right, and the better companies are making all the right moves.

“Frédérique Constant buys only diamonds that have been reviewed with the Kimberley process,” says Aletta Stas. “Furthermore fair trading and sustainability is becoming more and more important: I feel this is a good thing.

It is important all people are treated fair and that we all make a difference to make the world a better place.”

Diamond watches are here to stay, as they come in all forms and shapes, from fully paved exemplars to slim, elegant watches set off with several subtle diamonds. O

SEIKO SOLAR SUT067, Stainless-steel bracelet and case, 18 diamonds, Solar-powered movement

$375

40 GALLERY – LADIES WATCHES IN STEEL europa star

ONDE by Ebel The new Onde collection by Ebel is available in two case sizes, 30mm and 36mm, and with a choice of cases in stainless steel or 18-carat red gold. The model shown is the 30mm version in stainless steel with an 18-carat red gold bezel. Its classic look is achieved by a combination of polished and brushed surfaces (including on the link bracelet) and a simple dial adorned with the Ebel symbol at 12 o’clock, hour markers at 3, 6 and 9 o’clock and eight diamonds in the remaining hour positions.

WINDFLOWER by RSW The windflower is the inspiration for this unusual case design

by RSW, which has a steel case and is available with 24, 30 or 76 diamonds set on the 36mm by 23.35mm case. An ETA 901.001 quartz movement drives the hour and minute hands, which indicate the time against an elegant dial (in black, grey, white or brown) whose symmetry is broken only by the Roman numerals at 3 o’clock and 9 o’clock. Matching satin straps or multi-link stainless-steel bracelets are available.

TETRA by Nomos Glashütte Various limited-edition versions of Nomos’s classic square model have been produced over the years but this is the first time that colourful models have been included in the permanent collection. The subtle new colours are “world white”, “heavenly blue”, “bittersweet” and “scone”. Beneath the 29.5mm square stainless-steel case beats the Nomos Alpha handwound movement, which has a 43-hour power reserve and can be admired through the sapphire crystal case back (except on the “world white” model, which has a steel back.) All the models are fitted with a beige velour strap.

QUEEN OF GOLF by Jaermann & Stübi The Queen of Golf is the first ladies’ version of Jaermann & Stübi’s unique mechanical stroke-counting watch for golfers, which counts both the number of strokes played per hole and the running total of strokes for the course. It is powered by the A10-2 calibre, visible through a transparent sapphire crystal case back and protected by a shock-resistant 38mm case in stainless steel.

LADY ICON by Jordi Swiss Icon The latest collection by Jordi Swiss Icon offers ladies a choice of colours and materials for this 37mm model using the now-familiar Jordi design. From stainless steel to gold and steel to “soft black”, with up to 282 diamonds or with none at all, not forgetting this year’s trend colour purple. The Lady Icon has a soft, rounded case with domed sapphire crystal (a design inspired by a smooth pebble) and is powered by a quartz movement.

Crown Royal headgear or winding device?

Discover the world of Fine Watchmaking at www.hautehorlogerie.org

Crown | The winding crown is a knurled or fluted button of various shapes, held between the thumb and forefinger and used to wind the watch. Some crowns incorporate a mobile pushbutton for operating a chronograph mechanism or to release the cover of a hunter case.

The Foundation’s Partners | A. Lange & Söhne | Audemars Piguet | Baume & Mercier | Bovet | Cartier | Chanel | Chopard CHRISTOPHE CLARET | Corum | De BETHUNE | Greubel Forsey | Harry Winston | Hermès | Hublot | IWC | Jaeger-LeCoultre | Montblanc Panerai | Parmigiani | Perrelet | Piaget | Richard Mille | Roger Dubuis | TAG Heuer | Vacheron Constantin | Van Cleef & Arpels | Zenith

42 CASE STUDY europa star

Doxa – making the most of independence Doxa dashboard clock fitted with the Doxa eight-day calibre and a brass protection case, circa 1910

Georges Ducommun

Romeo F. Jenny

RPaul O’Neil

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Anyone who has visited the watchmaking museum at the Château des Monts in Le Locle, Switzerland, will undoubtedly have been impressed as much by the premises and its landscaped gardens as they were by the collections it houses. The Château des Monts is a Louis XVI-style building that dates back to the late 1700s but owes its current configuration to Georges Ducommun, who purchased the property in 1912, demolished the farm and its Doxa Grafic pocket alarm watch with 14-carat yellow-gold case, circa 1960

annexes and landscaped the gardens in the English style. After Ducommun’s death in 1936, the château passed to his daughter Hélène, who sold it to the local authority of Le Locle in 1954, which set up the watchmaking museum five years later, in 1959.

versal exhibitions in Liège (1905) and Milan (1906). Since the concept of a brand as we understand it today had not yet developed at the time, such accolades acted as an important point of reference for the customer and were widely used as a promotional tool.

Georges Ducommun established the Doxa brand in 1889 and his company was very quickly successful, growing to employ a staff of several hundred at the workshops, which were located at number 28 Rue des Billodes in Le Locle. At around the same time that Mr Ducommun acquired and transformed the Château des Monts, his company was picking up medals for its pocket watches at the uni-

The recipe for success From the outset, Doxa concentrated on offering quality timepieces but at an affordable price. Using the principles of mass production that had been developed in the USA, the company adopted a semi-industrial production to produce simple and identical movements in large series. But whereas Henry Ford, one of the pioneers of mass production in the United States, famously offered his Model T car in “any colour you like, as long as it’s black”, Doxa allowed customers to personalise their timepieces using a wide range of decorations on the case, from hunting and safari scenes to horses, cars and hot air balloons and much more besides. This system also allowed the company to react swiftly to changing trends. It is this flexibility and ability to adapt quickly to changing market conditions that remains one of Doxa’s strengths today as an independent watch company without any group pressure, according to CEO Romeo Jenny.

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CASE STUDY 43

TROFEO CHRONO SPECIAL EDITION p

WATER N’ SPORT

The inter-war years were Doxa’s golden age, when the company was known worldwide but particularly popular in Eastern Europe, Romania and the Soviet Union—markets where the brand is still very popular today. It was the diversity of the product range that was the key to the brand’s success, a diversity that covered everything from pocket watches, wristwatches and jewellery watches to alarm clocks and dashboard clocks for cars. Doxa’s eight-day calibre, for instance, was fitted to vehicles produced by Bugatti, Mercedes and Peugeot and was later also used in clocks fitted in ships and aeroplanes.

In 1957, the Doxa Grafic line was born, following the Bauhaus principles of design, with a square case and a very simple dial. A series of rays dissecting the dial became one of the piece’s signature elements, as did the unusual placing of the logo at the bottom right of the dial. Over half a century later, the Grafic line is still the company’s bestseller.

Diversified distribution The Jenny family, who had been running the independent private-label manufacturer Walca in Bienne since 1976, purchased the Doxa brand in 1997 and moved its headquarters to Bienne. Since then, the company has been managed by Romeo Jenny, who has established a solid reputation for Doxa watches in Hong Kong and China, as well as the historically strong markets of Eastern Europe, the Balkan states and Russia.

Doxa is currently sold in 800 points of sale worldwide, with its price point varying according to location. “Our average price is between CHF 400 and 500 in Eastern Europe,” says Mr Jenny, “but it is between CHF 800 and 1000 in Asia. The diver’s watches are in a class of their own and are in a higher segment, however.”

CALEX I DO

44 CASE STUDY europa star

THE DOXA SUB The Doxa Sub, launched in 1968, represented the brand’s first foray into the world of diver’s watches. But the brand prepared thoroughly for this new challenge and at its launch the Sub stood out for two reasons.

The first was its bright orange dial, which had been designed to ensure optimum legibility under water but which also gave a bold signal when worn on the wrist. The second was the uni-directional rotating bezel.

Such bezels have always been a crucial feature on a diver’s watch and have since been included in the ISO 6425 standard that defines a diver’s watch. But Doxa went further by engraving the US Navy’s dive table for no-decompression dives around the bezel. Rather than just timing their dives, divers could therefore see at a glance the maximum recommended dive time for a particular depth. All they had to do was turn the bezel so that the descent markers (two dots in orange on the outer depth scale and SuperLuminova on the inner time scale) were aligned with the minute marker when they started their dive. When the minute hand reached the figure corresponding to the maximum depth of their dive, it was time to resurface.

One of the latest incarnations in this collection is the Doxa Sub 4000T. It commemorates the re-edition of the Doxa Sub 300T in 2001 and was released as a limited edition of 500. It retains the unmistakable orange dial and uni-directional rotating bezel and also features a “safe dive” indicator that shows the power reserve, as well as an automatic helium escape valve for professional divers. As the name suggests, it is water resistant to a depth of 4,000 feet (1,220 metres).

The Sub collection [see above], which is part of the brand’s nautically-inspired “Aqua” line, is indeed a class apart and is sold in the United States exclusively via Internet on a separate, dedicated website. As Mr Jenny explains, “We were one of the first brands to sell exclusively via Internet and this has been working very well in the USA.” Besides the popular Grafic and Aqua collections, Doxa also offers “Sports” and “Classic” lines, as well as a “Top Collection”, which comprises high-end models and re-editions of historical Doxa models. “At the moment, we do have a predominantly male collection,” admits Mr Jenny, “and the ladies’ collection is very small. But we are changing this slightly.

In the past Doxa had a lot of ladies’ watches and jewellery pieces but now this is slightly different.”

After 15 years in the job, Mr Jenny attributes Doxa’s continued success to relying on the brand’s strengths and history, as well as “developing products that the market wants and focusing on the purchasing power in our different markets.” He also stresses that Doxa aims to maintain its strong position in the markets in which it is established, rather than trying to expand at all costs. Nevertheless, he admits that there is room for expansion and aims to re-enter the Arabian markets in particular.

So what of the future? Mr Jenny is not too worried by a possible economic downturn. “We can see that there are some minor corrections but I think that the corrections in the luxury segment

are bigger,” he says. His main concern is, like that of any other exporter in Switzerland, the current high value of the Swiss franc. But this does not seem to be putting a brake on new product developments. In response to the obligatory question on what we can expect from Doxa at BaselWorld 2013 (where the brand has a guaranteed spot, although where exactly is still unclear), Mr Jenny tells us, “We are working on various projects, some of which are closer to realisation than others. But one thing I can say is that we will present a new ladies’ collection in Basel next year.” O For more information about Doxa click on Brand Index at www.europastar.com

Looking to the future Doxa is also fortunate to be free of any worries about movement supply. “Due to the monopolistic stance by ETA, we switched to Ronda quartz movements a long time ago and have been very happy with them,” Mr Jenny told Europa Star. “As we were treated rather badly and even arrogantly by ETA regarding mechanical movements as well, we switched to Selitta movements, also with great success.”

EXECUTIVE SLIM

1940 FIELD ATACAMA by Luminox The latest models in the 1940 Field Atacama collection, which was launched last year and named after the desert in Chile that is famous as one of the most arid regions on earth, have 45mm diameter black PVD-coated steel cases with an equally sombre carbon-effect dial. They are powered by the Ronda 5130.D quartz chronograph movement, which also offers a practical alarm function. The understated models light up brilliantly at night thanks to Luminox’s patented “Luminox Light Technology”, which uses gas-filled microtubes that can work for up to 25 years.

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GALLERY – ALL-BLACK GENTS’ WATCHES 45

HIGH PERFORMANCE CHRONOGRAPH

by Ermenegildo Zegna The High Performance Chronograph is the first application in timepieces of Zegna’s philosophy, which revolutionised the business suit from 1985. The High Performance Chronograph has a 42mm black ceramic case with black rubber-coated crown and pushers and a black rubber strap. The collection is made in Switzerland by the Sowind Group, the owners of Girard-Perregaux, using ETA movements.The High Performance Chronograph uses the self-winding ETA 2894 movement operating at 28,800 vibrations per hour and with a power reserve of 42 hours. A High Performance Sea Diver model is also available, using the ETA 2824 self-winding movement.

DLC TITANIUM BI-AXIAL TOURBILLON

by Girard Perregaux Encased in this 45mm diameter DLC-treated titanium container is a mechanical movement that operates at 21,600 vibrations per hour and features two tourbillon cages weighing just 0.80 grammes. The inner cage, housing the balance wheel, balance spring and escapement, makes one complete revolution in 45 seconds, while the outer cage, rotating around a different axis, completes one revolution every one minute and 15 seconds. The entire assembly therefore makes one complete gravity-correcting revolution in 3 minutes and 45 seconds. Two co-axial barrels give the movement at least 72 hours of power reserve. Limited edition of 8 pieces.

BARNATO 42 MIDNIGHT CARBON by Breitling This model is named after Woolf Barnato, a wealthy racer of Bentley motor cars who bought the company in 1925, and bears the famous knurled bezel, in black, that recalls the distinctive Bentley radiator grilles. It has a 42mm diameter case in blackened steel, a “black ice” dial and a black rubber strap and is powered by the Breitling Calibre 41B self-winding chronometer-certified movement, which operates at 28,000 vibrations per hour and has a ¼ second chronograph and date. Limited edition of 1,000 pieces.

15TH ANNIVERSARY LIMITED EDITION by Gc The 44mm matte black PVD steel case of this model encircles an open dial with gold detailing that reveals the skeletonised ETA 2801 mechanical movement, which can also be admired through a transparent case back. The manual-winding calibre operates at 28,800 vibrations per hour and has a power reserve of 42 hours. This model, which celebrates the brand’s 15th anniversary, is also available with a stainless-steel case and silver dial as part of a limited edition of 115 numbered pieces.

46 STRATEGY europa star

Casio’s analogue revolution

RPierre Maillard

K

Kazuo Kashio, President and CEO of Casio, likes to say, “If it isn’t revolutionary, it’s not a Casio product.” You might think that this is merely a marketing slogan, but if you look a little closer, you will see that it is a real conviction, anchored in the history of a company that today is a very powerful conglomerate with a turnover of €2.8 billion and a workforce of nearly 12,000 people around the world.

We can better measure the company’s accomplishments when we realise that Casio was founded in 1946, in the ashes of a still smoking Tokyo, by Kazuo’s older brother, Tadao Kashio (deceased in 1993), who was soon joined by his three brothers. From a very poor family and forced to quit their activities after the serious earthquake in Kanto in 1923 (more

than 100,000 deaths), the four Kashio brothers would go on to build an empire starting in 1954, with the introduction of the very first prototype of a revolutionary calculator. Compact, completely electronic, it was a world first that they commercialised in 1957 under the name of Casio 14-A.The Casio Computer Co. Ltd was thus born. This was only the beginning in a long line of revolutionary products: the 001 in 1965, the first office calculator with a memory, the series AL-1000 in 1967, the first programmable electronic office calculator and the Casio Mini, in 1972, the world’s first pocket calculator.

domain of watchmaking would thus allow Casio to develop even further the technology that it had introduced for its calculators. In a way, it was seen as a natural evolution. In a Japanese watch industry entirely vertically integrated from production to distribution, it was difficult to be an independent producer and gain access to the markets. After two years of experimentation, the introduction of the digital Casiotron marked the beginning of the watch saga of the Kashio brothers. This timepiece displays its numbers in a liquid crystal format and, for the very first time, was equipped with an electronic perpetual calendar.

Entry into watchmaking

The G-SHOCK shock

It was the immediate and dazzling success of the Casio Mini that solidified Casio’s entry into the world of watches in 1974 with the launch of the electronic watch Casiotron. The industry was then in the middle of the quartz revolution—quartz watches are technically “nothing other” than calculators that count the pulses of a quartz oscillator. Entering the

The brothers’ saga would reach worldwide proportions a few years later, in April 1983, with the launch of the very revolutionary G-SHOCK. Today, 30 years after its birth, nearly 60 million G-SHOCK watches have been sold. Quite understandable when you see the striking design of this immediately recognisable watch, a watch that is extremely robust under all

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to be radio-controlled. These accomplishments have been made possible because of Casio’s varied technological developments in the fields of miniaturisation and low energy consumption.

In the G-SHOCK range, one of the stars of the year is a model that has a powerful appearance thanks to its golden sun brilliance combined with a rugged black resin case (ref. GA-110GB-1AER). Equipped with a new spherical concave dial that confers a sculptural depth to the piece, it is automatically illuminated by an LED light (you only need to turn the wrist), and features a chronograph measuring a 1/1000th of a second as well as universal time, five daily alarms, perpetual calendar, and waterresistance to 20 bar. It is, of course, also an antimagnetic ana-digital G-Shock that is ultra solid.

conditions and that can be thrown from a high building with no damage.

The story of the G-SHOCK is not over, far from it. Just look at the current craze for this timepiece, which can take on a thousand different appearances (including an analogue display) and can incorporate many technologies (radio-control, solar power), plus, of course, its many functions.

With its G-SHOCK, Casio has become a recognised player in the watch arena and is among the top ten largest watch groups and brands in the world in terms of turnover. This impressive

STRATEGY 47

Analogue ambitions

feat has been accomplished by following a very particular approach: elevate the watch from a simple “tool” indicating the time and turn it into a veritable instrument for the wrist, a device that can provide all sorts of information—calculator (appeared in 1980), dictionary (1982), GPS (1992, world first), digital camera (2000) etc.

But beyond these functions, Casio has also been ingenious in developing high-performance technologies, including radio-controlled time, and the advanced use of solar power, as was demonstrated in 2001 with the brand’s anadigi WVA-300, the first solar-powered watch

Launched in 2000, the Edifice collection epitomised Casio’s ambitions in the domain of the analogue watch. With Edifice, Casio intends to win market share in a sector that represents, as a reminder, the most important part of the watch market. Casio’s current share of the analogue market is marginal. But to succeed, Casio has no intention of competing head-on with Swiss watchmakers. It prefers to capitalise on its own specific assets and its mastery of electronic technologies and functions.

Targeting a young, active and urban clientele, Edifice intends to give a new analogue face to the brand’s advanced technologies. Composed only of steel watches with very clean and contemporary styling as well as unbeatable value for money, Edifice will soon propose three distinct ranges of timepieces: the original “Active Racing Line”, inspired by motorsport; the “Solid Urban Line”, the most stylistically pure range; and the “Advanced Marine Line”, inspired, as its name suggests, by nautical sports, with its water-resistance to 20 bar.

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EQW-A1110DB-1AER

An emblematic model As an example of the particular qualities of the Edifice range, let’s look for a moment at a new emblematic model that concentrates on Casio’s technical advances. Baptised EQWA1110DB-1AER, this chronograph is equipped with the “Smart Access” and “Tough Movement” systems. So what do these terms mean? The watch comprises a series of motors (up to five) that independently drive the hands of the hours, minutes, and seconds.

This “autonomy” for the different hands permits very precise multi-functional displays.

The various functions are then selected and activated by the “Smart Access” System thanks to an electronic crown that makes this operation easy, immediate, and intuitive. The wearer can also instantly go from a normal time display to the chronograph mode (which can record up to ten lap times), as well as switching between different time zones, passing automatically to summer time, and instantly displaying universal coordinated time (UTC). The “Tough Movement” system

features a solar power source for the watch, radio-control, an automatic correction device for the position of the hands in case of time differences and a hybrid mount designed for great shock resistance. In the area of solar power, Casio has made great strides by drastically reducing the power required for the watch, to the point that it no longer needs a back-up battery, but only an accumulator, making it completely autonomous (and environmentally friendly). In addition, the solar panel has been totally integrated into the dial, and is totally invisible. This independence is strengthened by the multi-band radiocontrol that lets it capture time signals from six different transmitters around the world (two in Japan and one each in China, the USA, Germany and Great Britain).

Technology and design to serve the wearer As the management of Casio likes to say, “the goal is not to put the maximum amount of technology into a watch, but rather to use technology to make the customer’s life easier.”

It is in this same spirit that the design of the Edifice range was conceived—to reflect, with the greatest readability and simplest appearance, the technology contained in the timepiece. Two square sub-dials are placed on a vertical axis, and their sharp lines accentuate the functional appearance of the watch. The 24-hour function is at 12 o’clock, while the selected mode and function indicator, including an alarm, is at 6 o’clock. At 9 o’clock, a vertical scale evoking a gauge in a sports car indicates the power reserve and the activation

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EFR-520SP-1AVEF

or deactivation of radio signal reception (this function consumes a lot of power). These different indications harmoniously coexist and offer great readability on the 33-mm black dial surrounded by a raised edge comprising the hour markers, scale and the names of 29 cities throughout the world with their respective time zones. The very readable dial, protected by a mineral glass, is animated by two imposing white luminescent hands and a delicate red hand. The 43-mm case has strong and striking lines, compact lugs and refined finishing.

The electronic crown is screwed in for greater protection and the bezel is placed on a bright red aluminium ring that emphasizes the dynamism of the piece. At the top of the range (€649 for the black PVD model and €499 for the steel version), this Edifice chronograph

is offered on a steel bracelet. A very special watch can be seen on the wrist of Sebastien Vettel, two-time Formula 1 world champion with the Red Bull team and a contender for a third victory. Casio is the “smart and tough” sponsor of the team.

STRATEGY 49

EQS-A500DB-1AVER

Adding to the range Further chronographs complete the expanding Edifice range: a very classic and elegant city chronograph with a real carbon dial that is both chic and vigorous (ref. EFR-520SP1AVEF); a solar-powered chronograph accurate to 1/20th of a second and a much more technical appearance, with the “Smart Access” System (ref. EQS-A500DB-1AVER). This wellpositioned and consistent offer should open distribution avenues for Casio that are more selective than those of the brand’s current products and reinforce its advances in the domain of the analogue watch. O

For more information about Casio click on Brand Index at www.europastar.com

50 GALLERY – RED WATCHES europa star

LIP CUT-OUT by Lulu Guinness Famous for her must-have handbags, Lulu Guinness is now branching out with a full collection of watches and jewellery.

Lips feature heavily in her work, either as subtle design references or as the defining shape of a fashion accessory.

Among the many interpretations of this in the new timepiece collection is this model in which the holes for attaching the knotted strap are shaped like lips.

COUTURE by Century The Couture models have a rectangular case shape that is inspired by the emerald cut, which beautifully sets off most precious stones. Its case takes the form of Century’s signature sapphire crystal, which is hand cut and polished. It is available in a choice of different colours (the model shown is ruby red) and three different bracelets: alligator leather, satin moiré and milanaise mesh.

GRANDE SECONDE RED MOSS AGATE by Jaquet Droz There are only eight models available of this reference, which is fitted with a Jaquet Droz 2663 calibre self-winding mechanical movement with a white-gold oscillating weight and twin barrels that offer a power reserve of 68 hours. The case is in 18-carat red gold and the separate, off-centre sub-dials in mother-of-pearl are surrounded by red moss agate.

ICE SHADOW by Ice-Watch The Ice Shadow collection combines the rich colours of autumn with some fruity shades, such as this cherry red, to offer the perfect seasonal tones. There are three different sizes of the Ice-Ramic case (unisex, big and small) and a total of eight colours: taupe, muffin, oxford blue, forest green, tangerine, cherries, imperial purple and dark night.

1521 FLOWERS by Magellan The unique domed design of the Magellan watch, with its hemispherical dial, offers a myriad of creative possibilities.

The latest interpretation uses this space as a canvas on to which stylised flowers are hand painted. Each piece requires 80 hours of work to complete before being cased up, fitted with hour and minute hands plus a 24-hour hand—powered by a self-winding mechanical movement—and sealed behind the crystal. This ensemble is framed in a black PVD steel case and fitted with a contrasting orange nubuck strap.

Cal. 3540.D – Chrono 1⁄ 10 Sec., Date

Cal. 3520.D – Chrono, Date

Cal. 3540.D – Chrono 1⁄10 Sec., Date

Chronos 10 1⁄ 2 x 11 1⁄ 2’’’ – One movement for small to big watches NEW Series 3500 – ronda-startech.com

54 HONG KONG SHOW REPORT europa star

Getting quieter on the eastern front RPaul O’Neil

I

It is easy to underestimate Hong Kong’s importance in the global watch trade. Not only is the former British colony the biggest exporter of watch components in the world by value (exports for the first half of 2012 were valued at USD 5.3bn, up 13.5 per cent year on year), it is also the biggest importer of finished watches (valued at USD 5.9bn for the first half of 2012, up 15.5 per cent year on year) and is by far the biggest customer of the

Swiss watch industry. As part of our report from this year’s Hong Kong Watch & Clock Show, organised by the Hong Kong Trade & Development Council (HKTDC), we looked a little deeper into the reasons for Hong Kong’s dual role and how changes in the global economy could feed both into and out of this hub and have an impact on the global watch industry as a whole.

The 720 exhibitors from 12 countries present at this year’s show covered the entire spectrum of the watch industry, from cheap watches for children right up to bespoke masterpieces of haute horlogerie and all points in between. You could also find every conceivable accessory or product that might be related to

the industry, from movements and leather straps to special photography boxes developed specifically as mini studios for taking photographs of watches, jewellery and other small objects.Thanks to a special gallery organised by Prince Jewellery & Watch Company [see our Retailer Profile by Jean-Luc Adam in this issue], the high-end brands A. Lange & Söhne, Audemars Piguet, Blancpain, Breguet, Chopard, Franck Muller, IWC, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Ulysse Nardin were also present.

Here we present some of the latest developments from a wide variety of brands, as well as a few new brands who are innovating at the different ends of the watchmaking spectrum.

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HONG KONG SHOW REPORT 55

BALLAST

Burg Elsewhere in this issue you can read Pierre Maillard’s article about Celsius X VI II, the brand that is incorporating sophisticated mechanical watch movements into high-end mobile telephones. Burg, run by the flamboyant Dutchman Hermen van den Burg, an experienced designer, is doing the opposite, namely incorporating mobile phone technology into a wristwatch.

Burg designs and assembles its products, which retail for between €125 and €345 at its own 10,000 square-metre factory. After exhibiting at BaselWorld and the Hong Kong fair for the first time this year, Burg is not short of ideas for the future. The company is carrying out trials to sell the watch with a SIM card, just as you would for a mobile phone,

In Hong Kong the company presented its latest touch-screen watch phone, which even works without a head-set. A test call made at the show proved that the quality is good and, just like a modern smartphone, the watches have a memory for 500 phone numbers, Internet access, MP3/MP4 music player and even a miniature video camera.

But Burg is not aiming to replace the mobile phone. “It’s a secondary phone,” says Mr van den Burg. “Compare it to an iPad. If you have an iPad, you probably still have a computer.

Our watch frees you from the constraints of carrying a phone around, but as most people wear a watch you can still have the phone on your wrist.”

BURG

and is also thinking of incorporating NFC (near field communication) chips for mobile payments.

Talking into your wrist to make a phone call seemed futuristic in Star Trek episodes from the 1970s; it is now a reality.

Earnshaw, Cross, Ballast Mr Vishal Tolani is the Director of Solar Time, which manages the brands Ballast, Cross, Earnshaw and Swiss Eagle. Cross, a brand launched since last year’s show, has been doing well, particularly in Japan and the Middle East, and will be rolling out to markets such as Germany, the UK and the USA in the near future. Since launching last year, Earnshaw has become the number one selling watch on Lufthansa duty free, a market that is very difficult for a watch brand to get into.

“We are mainly an OEM but because of price instability and market erosion we created some brands in order to benefit from what brands have,” says Mr Tolani. “Swiss Eagle developed after Tissot pulled out from a customer. We are seeing more and more of this with retailers and distributors. A company with 50 to 60 doors is a candidate for their own brand.”

56 HONG KONG SHOW REPORT europa star

Chinese-made tourbillon, and retails for between USD1,500 and USD19,000 for the tourbillon models. All the models have bold designs and a feeling of quality, with one of the highlights being the Telamon, a diver’s watch with a tourbillion, which is water resistant to 1000 metres.

“We have no real competitor and not many other brands are doing the same thing as us,” explains Mi Changhong, the founder and chief designer of the company. “People think that our quality is good compared with other watches.” Look out for a new case design from Longio at BaselWorld next year.

CROSS

EARNSHAW

Aside from the traditional retail channels and airline duty-free shopping, Solar Time also covers Internet retailing and TV shopping, creating a broad mix of channels. “With Earnshaw we are selling a watch rather than a brand,” explains Tolani. “It is hard for a brand like this to be in a shop window. It is geared towards TV shopping, where the legacy can be explained.”

Hong Kong based brand Longio started life as an OEM/ODM manufacturer in 1996 but started producing watches under its own brand in 2009. The name is a transliteration of the Chinese words “Lun Chau”, which mean “beautiful bridge”. The collection uses ETA 2824 mechanical movements, as well as a

At the Hong Kong Fair, Mr Mi presented the “M.C.H.’s Art of Time” collection, which marries traditional Chinese culture with the best in fine watchmaking. The “National Beauty” model in white gold has a pure black enamel dial overlaid with an intricately carved peony in 18-carat red gold. A symbol of luck, prosperity and happiness, the peony will no doubt confer the same qualities upon the wearer of this watch, which is powered by Technotime’s TT791.50 tourbillon

TELAMON by Longio

NATIONAL BEAUTY by Longio

MYTHOS by Longio

Longio

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HONG KONG SHOW REPORT 57

movement and is a limited edition of only 18 pieces. The same Technotime movement powers the “Mythos” unique piece, the case and bracelet of which are carved out of China Hotan superior white jade. Longio claims that this is the only wristwatch in the world to be made from this material and that it took two master jade carvers seven months to complete (one working on the case, the other on the bracelet).

A carved 18-carat gold Phoenix takes pride of place on the black enamel dial.

Memorigin Swiss brands may do well to take note of the name Memorigin. The company proudly announced its first Hong Kong made tourbillon at this year’s fair and, while it is easy to be dismissive of Asia-made tourbillons, the presence on their booth of a Witschi Watch Expert timing device (albeit for display purposes only) among a selection of wood carvings and antique furniture was a hint of how serious the brand takes itself.

William Shum, who founded the brand barely two years ago, explained that he “wanted a

KAN TAI KEUNG 70TH ANNIVERSARY by Memorigin

STARLIT LEGEND by Memorigin

brand to reflect China’s cultural tradition.

Hong Kong merges eastern and western culture, so I can use elements from both as inspirations for my designs. For the eastern side of things, I already have the culture and, as the brand develops, we have added western cultural references such as our Bruce Lee and Batman models.”

Memorigin also offers its tourbillons as jewellery pieces with 18-carat red or white gold cases and varying levels of skeletonisation and stone settings with up to 212 diamonds set on the case. Even for these top-of-therange models the prices remain under the HKD 300,000 (approx. CHF 36,000) level. The company has also developed a limited-edition

THE DESIGN COMPETITION This year saw the 29th edition of the Hong Kong Watch & Clock design competition, which comprises open and student categories. We present the winners and two runners-up in each category, which once again show the breadth of imagination that companies and students of the Hong Kong Design Institute can apply to the humble round watch case.

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Open category 1. Winner: Navigator I by Team 1 Design Limited 2. 1st runner-up: Light Up My Life by Wong Ting Bong 3. 2nd runner-up: Castle by Leung Ho Him Student category 4. Winner: Ripple by Ngan Pik Ki 5. 1st runner-up: Family Vision by Tang Chun Kit 6. 2nd runner-up: Journey of Life by Chung Hoi Yau Yoyo

58 HONG KONG SHOW REPORT europa star

DD133 by odm

tourbillon of 70 pieces to celebrate the internationally-renowed Hong Kong designer Kan Tai-Keung, who celebrates his 70th birthday this year.

So what about those timing results? Mr Shum claims to be aiming for no less than chronometer levels, with the movements already offering an impressive accuracy of +/- 10 seconds per day.

SUNSTITCH by odm

LCD screen, switching modes with a simple tap on the screen.

One of two brands of Hong Kong-based Z Laboratory Ltd. (the other is upscale Charles Hubert), Zerone occupies a unique position in the world of digital watches with its patented

digital module that uses Swarovski crystals to display the digital numbers. The result is a dial on which the crystals magically appear and disappear to indicate the time, or even scroll a special message of choice. This technology is applied to a series of collections based around the “Dazzled” name. The “Dazzled Animation” model in particular is popular as

DAZZLED by Zerone

DOT DOT DOT by Zerone

Zerone

odm Hong Kong brand odm is the latest to bring touch-screen technology to a timepiece with its new DD133 Illumi+ series, which combines a simple LED display with a sleek, integrated case and bracelet in a range of both masculine and feminine colours. In one of the most celebrity-studded events at the fair, the collection was presented by a full team from the Hong Kong Rangers FC, the local football club whose shirt sponsor is odm.

British designer Michael Young has added his signature to another touch-screen watch launched by odm in Hong Kong.The “Sunstitch” watch is solar powered and displays the time digitally either as numerals or hands on its

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a gift, since it allows the purchaser to input their own special message before offering the gift, and is available in a round, feminine case and a more masculine square design.

Zerone also offers an original model produced in collaboration with Hong Kong’s trendy DJ, singer, actor and designer Jan Lamb, who owns his own fashion brand 30METHING. The “Dot Dot Dot” model has a 43mm stainlesssteel case and an acrylic dial that features twelve coloured marble dots. At the touch of a button, LED lights flash under each hour in rotation, stopping at the correct hour position, with the time displayed in a digital readout in the centre of the dial. The digital module also offers a 1/100th second chronograph, alarm, date and hourly chime and the watch is water resistant to 50 metres.

Hong Kong International Watch Forum The International Watch Forum organised by the Hong Kong Trade and Development Council (HKTDC) at the show brought together representatives from the main countries involved in the production and export of watch components and completed watches for a round table discussion. This offered a rare opportunity to get an overview of the global watch industry and for the speakers to share their views on the current status of the industry and its development over the coming years.

Singling out the feedback from the Federation of Hong Kong Watch Trades & Industries in particular, the expressions of pessimism were much clearer, especially compared with the ambiguity earlier this year at BaselWorld. Although there was handsome growth in the Hong Kong watch industry in the first half of 2012, which is mainly attributable to retailers and distributors replenishing their stocks, things have changed dramatically since the second quarter and the industry expects its worst Christmas for around five years due to the general economic situation.

HONG KONG SHOW REPORT 59

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Until now, the Hong Kong watch industry has managed to keep prices low because material prices reduced, even though salaries increased by around 15 per cent in 2011 and total payroll costs edged up by 20 per cent, as statistics from the HKTDC show. It is unclear, therefore, how long the industry in Hong Kong will be able to compete on price.

Added to this is the problem of finding skilled personnel. While there is a readily available supply of watchmakers and machine operators in training in Switzerland and its neighbouring countries, China’s one-child policy means that the population pyramid has been gradually inversing for some time. As Mr Geoffrey Kao, Vice-Chairman of the Federation of Hong Kong Watch Trades & Industries, explains, “In China there is a 4-2-1 formula, by which four grandparents produce two parents, who in turn produce only one child. It will therefore become harder to find cheap labour in China in future.”

Market trends During the Hong Kong show, the HKTDC surveyed 349 exhibitors and 759 buyers in order to take the pulse of the market. Despite the

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1. Dr Jean-Daniel Pasche, President of the Federation of the Swiss Watch Industry 2. Mr Dae-Boong Kim of the Korean Watch & Clock Industry Cooperative 3. Mr David Lai, President of the Hong Kong Watch Manufacturers Association Ltd.

gloom in some quarters, the survey found that 75 per cent of buyers and 70 per cent of exhibitors expect better or similar business prospects in 2013. But 71 per cent of exhibitors and 64 per cent of buyers also expect production and purchasing costs to rise next year, due to increasing labour costs.

Exhibitors who have set up factories on the mainland said the costs of labour, land, raw materials, taxation and government charges have increased during the past three years and that they would be forced to raise their prices.

The survey also confirmed Europa Star’s impression, after talking to exhibitors, that fashion watches have the best growth potential. It is, of course, important not to equate the buyers scouring the halls in Hong Kong with those doing so in Basel. The majority (74 per cent) of buyers who were surveyed were not agents for brand name watches, but 30 per cent of them said they plan to be, which indicates that there is still potential for growth in this segment. O

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Synchronised slow-down At the Hong Kong Watch & Clock Fair Europa Star had the opportunity to talk to Mr Geoffrey Kao, Vice-Chairman of the Federation of Hong Kong Watch Trades & Industries Ltd., about the strategic orientation of the Hong Kong watch industry and his views on the current market situation and the future development of the industry.

RPaul O’Neil

ES: Since Hong Kong is a big exporter to Switzerland, is it safe to say that as long as the appetite for Swiss watches is growing, the Hong Kong industry will also grow?

Europa Star: In your presentation at the Hong Kong Watch & Clock Fair, you showed that the Hong Kong watch and clock industry exports everything except watch movements.

Do you see any potential for the industry to produce finished movements?

Geoffrey Kao: There is actually an initiative that we started five years ago. It was a government initiative on developing movements.

At an academic level it was a great success, but in terms of commercialising the movements, we are still a long way off. We have recently started a second initiative that follows on from the academic research to determine the specifications of the individual components required.

ES: What about focusing on commercialisation of just an individual component within the movement?

GK: I firmly believe this is a good idea. But as an industry, the consensus is for a full movement. But I believe it’s easier to make smaller steps than a big step towards a complete movement.

ES: There was a lot of talk about the protection of intellectual property at this year’s show. How important is this for the Hong Kong watch industry?

GK: We have a strong business integrity, which is why we have been very successful as

GK: Switzerland is a big market, but I think the trend towards fashion watches will have an impact in the future. This is already a visible trend in China. So even if Switzerland holds its position, the fashion trend will keep the industry growing. This is actually an opportunity for Hong Kong, because Hong Kong is known for its speed and efficiency, so we can follow the trends very easily.

exporters, because brands are very comfortable in placing orders in Hong Kong knowing that their intellectual property will be respected.

ES: People at the Hong Kong show seemed to be talking more openly about a global downturn in the watch industry, do you see this happening?

GK: I would say that it is more of a slow down than a downturn. So rather than Hong Kong growing at 50 per cent we are growing at 15-20 per cent. I therefore think it’s more correct to talk about an adjustment of expectations. A lot of bankers are saying that they expect 2013 to be a “synchronised slow down”.

Also, purchasing behaviour is changing. The number of transactions is actually increasing, but the value per transaction is decreasing, which could have an impact on the luxury segment for watches with a retail price above CHF 3,000.

ES: In the west, people tend to classify Chinese cities into three tiers. Is this fashion watch trend spread evenly across the different types of city?

GK: This is an incorrect way of viewing China. People should see China like Europe rather than like the US. There are 34 different regions, each with its own capital, each of which is a tier one city. Historically, there was very little connection between these regions and you could compare them to individual countries, each with their own different purchasing behaviour.

ES: Do you think the Swiss brands are aware of this?

GK: Well, the Swatch Group know what they are doing [laughs]. But some other brands are still learning. And it’s an expensive lesson to learn. For every ten brands that enter the market each year you see nine leaving. O

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HONG KONG SHOW REPORT 61

Morgenwerk launches GPS time Some 22 years after the Junghans Mega 1—the first radio-controlled wristwatch—another German brand, Morgenwerk, presented its Satellite Precision Mark I controlled by GPS at the Hong Kong Watch & Clock Fair.

This time, the signal no longer comes from radio waves transmitted by six fixed atomic clocks but instead from 30 GPS satellites in orbit around Earth. Arne Maximilian Römer, the designer at the Hamburg-based brand, explained the technical challenges posed by this new technology.

RJean-Luc Adam

per year. And I think that the GPS watch will replace them, because they offer the advantage of displaying the time anywhere on the planet. They will also be of interest to anyone who travels frequently and wants to have the time adapted to the correct time zone at the touch of a button. There is a lot of interest for our technology in Asia, as we have seen here in Hong Kong.

Europa Star: What are the advantages of this technology?

Arne Maximilian Römer: It gives you the exact time all across the surface of the globe and automatically adjusts it to the correct time zone. Our high-end watch even displays, on its digital black screen, geographical coordinates, a compass, altitude and so on. Our GPS watches will delight those who like high precision.

ES: What distinguishes this watch from its competitors?

AMR: A sober design that hides its technological contents. Also, by moving the aerials to the two spaces between the lugs we have reduced the thickness of the watch to less than 14mm.

ES: It would appear that the power reserve is the biggest challenge?

AMR: Can you believe that digital GPS watches for sporting activities must be recharged after half a day of use? In order to solve this problem, we are using a high-performance battery and developed a thermocompensated quartz movement, the precision of which is +/- 3 seconds per month, which considerably reduces the need for corrections. This considerably reduces the power required of the aerials, which means that the battery in our models offers a maximum power reserve of 18 months.

ES: What will it cost and when will it be on sale?

Arne Maximilian Römer

The watch can also be recharged using an external solar charger, which means there is no problem with adapting to different electricity sockets.

ES: What is its actual precision?

AMR: In order to improve precision we have developed the Memory Time Just, which receives the time signals from the different satellites and “learns” how to correct errors.

This “intelligence” allows precision of +/- 10 seconds per year, which means around one second per month. This technology is the result of international cooperation.

AMR: The Satellite Precision Mark I with a 44mm stainless-steel case and sapphire crystal with anti-reflective treatment on both sides starts at USD 1,100. The other models are in titanium and are 44mm in diameter for the Mark I, 46mm for the Mark II and 48mm for the Mark III. The top-of-the-range model costs USD 1,900. We aim to launch on the market in spring 2013. O

ES: Where are your customers and what are your sales objectives?

AMR: For as long as radio-controlled watches have been around there has been a demand for the exact time on the wrist, because the market has now reached 100 million watches

Satellite Precision Mark I: Adaptive electronics, ultra-precise quartz movement and compact integration, Morgenwerk breathes technology in a very sober and typical “Made in Germany” design.

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Hong Kong under the WorldWatchReport™ magnifying glass

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RFlorent Bondoux, Head of Strategy & Intelligence, Digital Luxury Group

The report from the HKTDC Watch & Clock Fair in this issue is the perfect occasion for Digital Luxury Group, which has been monitoring the international trends in demand for luxury watches since 2004, to provide insights on consumer preferences in the world’s largest import market for Swiss watches.

Hong Kong is the undisputed central hub for luxury consumption worldwide, thanks to its high density of luxury retailers and department stores, crowded with luxury shoppers from every corner of the world in search of attractive pricing across a large array of goods.

While Mainland Chinese visitors to Hong Kong represent the majority of high-spending inbound shoppers—a figure which hit 3.3 million in July 2012 (according to HSBC)—its local population of 7 million creates a domestic demand which is often used as a mirror of the entire territory’s growth forecast. Taking a closer look at the current state of the local luxury watch market through

Top 10 Most Popular Brands in Hong Kong

the lens of the WorldWatchReport™ 2012 allows us to see how 40 luxury watch brands have been performing.

Panerai, IWC, Piaget and Patek Philippe rank higher in Hong Kong than globally Apart from Rolex in the lead, Panerai, IWC and Piaget see higher rankings here than their global average. This makes Hong Kong a very different landscape in terms of brand popularity than any other. According to Sean Li, Editorial Director for Revolution Hong Kong and WorldWatchReport Contributor, “the success of IWC can be explained by the strong retail presence and the very key locations for boutiques. Panerai remains popular, also driven by their strong presence in online discussions and a perceived limited availability. This has been one of the keys to their success that they have managed their retail network very well and have created a particular aura around their own boutiques.”

Haute Horlogerie brands* pick up some of the market share that Prestige brands** fail to gather, relative to the categories’

(January to December 2011)

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WORLDWATCHWEB 63

global weighting. The relatively high ranks of Patek Philippe and IWC contribute greatly to this category’s score. The impressive results of the Haute Horlogerie category do not surprise Sean Li. “The strong demand for Haute Horlogerie can be explained by the higher spending power than other markets,” he says. “It is also a pretty safe environment where there is little reluctance to be seen with a nice watch, compared with some markets where buyers might only have Haute Horlogerie watches for special occasions.”

establishments,” explains Li. According to him, some of the key characteristics of the Hong Kong client are that “they are more impulsive and likely to buy on the spot, rather than requiring multiple visits to the retailer before making up their minds. Also, they are often driven by discounts and are willing to shop around more due to the proximity of many more retailers, to save even small amounts. Compared to the mainland, the Chinese buyers are also able to see more brands, with a handful that are not yet available locally.”

One pricing-related search for every model-specific search The Hong Kong market is proving to have very limited interest in detailed search patterns, as they focus mostly on the brand name in their online queries (73.91 per cent). Model-specific searches—often the most popular of the more specific intentions—reveal significant interest at 11.72 per cent, though a bit below the global average of 11.94 per cent.

Half of online interest is via mobile No market sees such an overwhelming share of mobile searches as Hong Kong. With 43.32 per cent of all luxury watch related searches linked to mobile devices in this market, brands should take note: publish your content and make it optimised for mobile devices or risk losing nearly half of your potential impressions. Hong Kong should not just be a testing ground for mobile communications, it should be a necessity for any brand active in this market. O

Price is the only other relatively important category of search intentions in this market. The intention gains weight as we look at it under these terms: for every search of a model name, there is a search regarding pricing information for the brands analysed in this study. “Price definitely plays a big part in what local and visiting clients look for. The high density of watch retail outlets gives the HK market a great sensitivity to price and discounts than there would be in big cities that have fewer luxury retail

* The Haute Horlogerie brand categorisation includes A. Lange & Söhne, Audemars Piguet, Blancpain, Breguet, Franck Muller, Girard-Perregaux, IWC, Jaeger-LeCoultre, Jaquet Droz, Patek Philippe, Richard Mille, Roger Dubuis, Ulysse Nardin, Vacheron Constantin, Zenith ** The Prestige brand categorisation includes Breitling, Hublot, Omega, Panerai, Rolex, TAG Heuer

Relative Share of Mobile Searches in Hong Kong

For further insights on the Hong Kong market, or any other for that matter, the WorldWatchReport™ offers a wealth of information.

More details are available at: http://www.worldwatchreport.com

(January to December 2011)

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The Prince of Hong Kong To succeed in selling watches in Hong Kong, where the competition is more ferocious than anywhere else in the world, you must do more than just represent famous brands; you must become a brand yourself. This is the case of Prince Jewellery & Watch, one of the largest names in the city. Joseph Chu, its general manager, lets us in on his secrets of success.

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Joseph Chu: Thirty in Hong Kong, two in mainland China—one in Guangzhou and one in Shanghai. In addition, we have two in Macao, plus six Omega boutiques. In all, Prince has 40 points of sale.

J Just as a reminder, the “small” city of Hong Kong, all by itself, sells many more watches than all 50 states in the United States combined! Packed full of watches, there is no place in the world where wearing a watch would, however, be so unnecessary. All you need to do is turn your head to read the time on dozens of dazzling dials displayed in the shop windows.You have to see it to believe it. Multibrand or single-brand stores are omnipresent in all of the touristy areas in this former British colony. Given this situation, what does a chain of watch stores, such as Prince Jewellery & Watch, do to succeed? Joseph Chu, its gen-

ES: So, how is business?

Joseph Chu

eral manager and also honorary advisor to the Federation of Hong Kong Watch Trade & Industries Ltd., talks about the success of the “Prince” as well as looming difficulties and new challenges appearing on the horizon.

Europa Star: How many Prince stores are there?

JC: Really not bad, not bad at all, because we can count on our 28 years of experience. Since Hong Kong became a special administrative region (SAR), which is open to Chinese consumers, we have increased our points of sale.

ES: But the winds are changing. Beijing recently increased the tax on luxury products imported from Hong Kong, inciting the Chinese to buy in China…

JC: Ninety per cent of our clients come from mainland China. There are several reasons for this, beginning with the price. In China, you

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RETAILER PROFILE 65

ES: With these price controls, doesn’t it make it even more difficult to stand out?

have to add the import tax plus the “luxury” tax, which still makes our watches 20 to 30 per cent less expensive. Some brands try to reduce the difference, which explains why some models have the same price in China and Hong Kong, except that in China, the price is marked in Chinese yuan, while in Hong Kong it is marked in Hong Kong dollars. This means an exchange rate differential of 18 per cent in our favour. But, purchasing a watch in Hong Kong is also a question of trust since the client is sure he is not buying a counterfeit or a used watch. Finally, our staff can advise the client more professionally.

ES: Yet, Chinese citizens are forced to pay the tax at the border…

JC: Officially, yes, but if they declare nothing at customs and wear the watch on their wrist, it is OK. This is why the watch is purchased without its packaging.

ES: A buyer who comes to Hong Kong for the first time is literally overwhelmed by the num-

ber of watch stores. How do you make the prospective client come to your store rather than a competitor’s?

JC: Previously, a client would go from one store to another to try and get the best discount. For a while now, however, brands have been exerting a “discount control” over their products and they carefully monitor the actual sales prices. We can freely offer up to a 10 per cent discount, but beyond that, the seller is subject to a penalty. And, if the seller continues to ignore the discount controls, the brand may revoke his contract and the store will lose its distribution.

ES: How can the brands verify the real sales prices?

JC: They send secret buyers, the famous “mystery shoppers”, sometimes Europeans, even Japanese (laughs) to the stores… We cannot really tell who they are. And, today, believe me, all the sales people offer the watches at the same prices.

JC: Today, it depends on professionalism, in particular in the high and very high-end segment with expensive watches equipped with grand complications. Here, our experience makes the difference because the salesperson must speak the same language and know how to explain the piece to the client. Our strength is thus a passionate staff, which is responsible for sales. Our sales people also undergo intensive training, especially in terms of politeness.

Our store décor is also very appealing and we are creative in our sales concepts. For example, for seven years now we have appeared on TVB, a famous Hong Kong television station, which is available everywhere on cable.

ES: If things are so positive, why then move into mainland China?

JC: We are just being prepared. As I mentioned, some 90 per cent of our clientele are Chinese, but just consider for a moment the possibility that Beijing might decide one day to abolish the taxes. Why would a buyer then come to Hong Kong if he can purchase the same watch at the same price in his own city?

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ES: Isn’t this already happening in the Chinese “tax free” zones, such as Hainan island?

JC: Yes, but only for products with a maximum value of 5000 yuan (CHF 750), which is the price of a Tissot. This does not affect us.

ES: Are the relationships good or rather hostile between the various watch distributors in Hong Kong?

JC: For the past two years, I was president of the Federation of Hong Kong Watches Trade & Industries, whose members are the largest distributors in the city. They all compete with each other, of course, but they all know each other and are friends. Each approaches business in his own way, only extreme discounts are forbidden.

ES: What about the explosion in real estate in Hong Kong, whose prices per square metre are already the highest in the world? It seems that many stores, especially in clothing, are leaving the city centres despite the influx of clients?

JC: You have put your finger on our main worry at the present time. When a lease contract is

up for renewal, the owner is going to demand an increase of 300 per cent! This explains, in part, the move towards mainland China.

ES: You sell some sixty brands and twelve prestige brands. How do you manage the displays in your windows?

ES:And so, in China, how are your stores doing?

JC: We represent nearly all the major brands except Rolex and Patek Philippe. Each store has its own arrangement, which depends on its positioning. This is also good for training our salespeople who can gain experience working with the mid-range watches before moving into the haute horlogerie segment. If they did not do this, they would tremble with fear… (laughs). O

JC: Since 2008, we have seen an annual growth of 30 to 40 per cent, but in 2011, the rate fell to 25 per cent. You know, in every business, the growth rate settles after a while.

China has been considered to be the world’s factory with a cheap labour force that can produce anything. But the economic crisis in Europe and the United States is beginning to affect production in China and the Purchasing Manager’s Index (PMI) is already falling. It will take some time before things pick up again.

Fortunately, Hong Kong is a favoured tourist destination and we are not directly affected by this phenomenon.

ES: What about after-sales service at Prince?

Do you have a repair workshop?

Location: Prince’s headquarters is at Star House in Tsimshatsui, in Hong Kong. The main store is on Nathan Road, also in Tsimshatsui.

Age: 28 years Employees: About 500 Number of stores: 40 (in Hong Kong, China and Macau) Store surface area (m2): Up to 16,000 at the main store.

Average sales price: Undisclosed, but more than $13,000 in the luxury category.

JC: Each Prince store has a small repair service to handle small problems. Luxury brands, however, do not authorise us to open their watches.

We have to send them back to the manufacturer, who will give us an estimate for repair.

Brands: More than 60 globally renowned brands and 12 prestige brands: A. Lange & Söhne, Audemars Piguet, Blancpain, Breguet, Chopard, Franck Muller, IWC, Jaeger-LeCoultre, Panerai, Piaget Roger Dubuis, and Ulysse Nardin.

TRADE SHOW FOR JEWELRY AND WATCHES FEBRUARY 22 – 25, 2013 MESSE MÜNCHEN, Munich, Germany INHORGENTA.COM

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Part 1: The challenges of a blossoming but labyrinthine market RCarles Sapena

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Over the last twenty years Latin America as a whole has experienced an unprecedented phase of sustained economic growth, which has been accompanied by the rise of regional economic associations such as the Andean Community of Nations (CAN) and the consolidation of Mercosur (created in 1991), a fullyfledged regional common market responsible for 82.3 per cent of Latin America’s gross domestic product (GDP).

Two countries spearhead the growth in the region: Brazil, which is creating a solid middle class never before seen in the country, and Mexico, which has taken a financial and political leadership role and acts as a touchstone between the economies of the south (it has observer status with Mercosur) and the north, to which it belongs by virtue of the North American Free Trade Agreement (NAFTA). Both countries have helped Latin America to enjoy an economic situation that is the envy of many other regions of the world. According to the OECD, GDP is expected to grow by 4.3 per cent over the course of 2012.

The most visible result of this solid macroeconomic performance is the growth and consolidation of the existing middle classes in some of the region’s countries (e.g. Argentina and Chile), and the emergence of a new and thriving middle class in others (e.g. Brazil, Peru and Mexico); one effect has been to give access to affordable luxury goods to significant sectors of the population. Not so long ago this market was reserved for a wealthy elite: long-standing clients of the luxury watch industry who could afford to make their pur-

chases as far away as Miami, or even in western Europe.

According to the Federation of the Swiss Watch Industry (FH), 14 per cent of Swiss watch exports go the American continent, with Latin America accounting for just under 4 per cent of this total. While the number of watches and movements exported to the region for the period January to August 2012 has dropped to 780,528 units from 906,200 for the same period in 2011, their value has increased 7.7 per cent year-on-year to reach CHF 388,735,184.

In this first part of our market focus on Latin America, we provide a general overview of the market, which is as complex and diverse as the region’s cultural and economic realities. We also evaluate the challenges faced by the watchmaking industry as a whole in this important regional market.

The tariff merry-go-round Although the region is gradually consolidating its internal market, the same cannot be said for its fiscal and trade policies. The Latin American market remains unbalanced in terms of import duties and tariffs. As an example, a number of industrial and commercial free-trade zones have been set up in Brazil in recent years to attract manufacturing industry. A prime example is the Manaus Industrial Sector within the

Manaus Free Trade Zone (ZFM). It includes a watchmaking centre with a dozen watchmaking factories, some belonging to well-known firms such as Orient and Timex. These assemble watches for the Brazilian market and other countries in the region. But the success of this zone has attracted a multitude of so-called “maquilas”, more or less illegal factories that assemble poor-quality movements, mainly from Asia, and then flood the whole of South America with crude fakes. The adverse effects of this are exacerbated by import tariffs of up to 100 per cent on luxury watches.

Another example of the bizarre merry-goround of import duties is Argentina’s outlandish barter system, under which imports of certain luxury items must be balanced by exports of other merchandise of an equivalent value, regardless of its type. The result is that some brands choose to run their distribution networks from Miami rather than basing them in the field, where they are at the mercy of the ever-spinning merry-go-round of tariffs and duties.

The major challenges The minefield of duties and tariffs presents a significant challenge for the distribution and sale of watches in Latin America. However, it

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is a side-effect of the economic climate, which will be corrected sooner or later as the markets themselves evolve. Growth will change the rules of the game, as we have seen recently in the development of the Chinese market, a paradigm of the emerging economy. However, there are two more complex challenges that require direct action from the agents involved in the market, and both must be tackled together. On the one hand we have volatile labour markets: a strong supply of manpower exerts downward pressure on salaries, which means that anyone with a certain amount of experience in a given position in a given sector naturally tends to migrate to a better-paid position. This mechanism, which is as old as the history of capitalism, or the history of personal ambition for that matter, runs directly counter to some of the watchmaking industry’s most cherished concepts: “tradition”, “loyalty” and “continuity”. This becomes more obvious to the consumer the further down the distribution chain you go. To give an example: imagine that we have bought a top-of-therange watch from a prestigious watch seller, which we would like to customise by exchanging the standard bracelet for a custom model, and adding an engraving. It is quite possible that, when we return to collect our bespoke watch, not one of the staff members we originally dealt with still works for that retailer.

An advertisement for Gondolo timepieces

The second challenge we face is closely linked to the first. Some watch brands fortunately detected this some time ago and are working to remedy it. It is the problem of training.

As you are no doubt aware, it is increasingly common to find that your average client will conduct thorough research (through internet searches, social networks, forums, etc.) on the products in which he or she is interested.

Quite often shop assistants, who should be able to offer advice and guidance, have less information and technical expertise about the products than their clients. A number of companies have become aware of this phenomenon; some have set up training courses for distributors and retailers and others are in the process of doing so. In some cases they have created structures that are tantamount to university campuses, often with better funding. This is a critical factor, particularly for firms whose prestige is based on longterm (sometimes inter-generational) relationships with their clients, articulated around a high-priced product.

The context of luxury There is another challenge that, while more subtle, is no less important, and that is the context of luxury. The industry is obviously aware of the unique features of each market,

FOCUS ON LATIN AMERICA 69

to a degree. A prime example of this is how watchmaking companies have adapted to the growth and pace of the Chinese market. The Latin American market, for cultural reasons, is similarly removed from the context of luxury in Europe, perhaps even more so than China.

This is not just a matter of how brand ambassadors or packaging are perceived; each society has its own concept of luxury and its portability. In regional markets that are shared by a number of different cultures, as is the American market as a whole, these small differences can mean the success or failure of expensive publicity and marketing campaigns. This discipline is just starting to be taken seriously, and will determine how successfully watch brands penetrate each sector and niche of this complex but exciting market. O In a second part of this market focus, we will look at the large and small groups, as well as the independent brands, who are targeting the region with strategies that are as diverse as the market itself.

For additional content related to this article, including the traditions of the Latin American market and an interview with Mr Carlos Alonso, the Director of the SIAR (Salón Internacional de Alta Relojería) in Mexico, see the online feature on www.europastar.com

The Palacio de Hierro department store in Mexico City

2 XXXXXXX europa star

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EDITORIAL Editor-in-Chief: Pierre M. Maillard • pmaillard@europastar.com Senior Editor: D. Malcolm Lakin • mlakin@europastar.com International Editor: Keith W. Strandberg • keiths821@aol.com Managing Editor: Paul O’Neil • poneil@europastar.com Editorial Consultant: Casey Bayandor • cbayandor@europastar.com Asst. Publisher: Nathalie Glattfelder • nglattfelder@europastar.com CONTRIBUTORS • Italy: Paolo de Vecchi • Germany: Gerhard Claussen, Timm Delfs • France: Antoine Menusier • Australia: Martin Foster • Russia: Vyacheslav Medvedev • Portugal: Miguel Seabra • Romania: George Gisca • China: Jean-Luc Adam • Art & Techniques of Watchmaking: Jean-Claude Nicolet ART Alexis Sgouridis • asgouridis@europastar.com Dummy: Fonderie Grafix, Geneva MARKETING & CIRCULATION PRINT/E-MEDIA Marketing & Circulation Director: Nathalie Glattfelder • nglattfelder@europastar.com Marketing & Circulation Manager: Jocelyne Bailly • jbailly@europastar.com PUBLISHING & PRODUCTION PRINT/E-MEDIA Advertising Manager: Laurence Chatenoud • lchatenoud@europastar.com Editorial, Production & Advertising Coordinator: Talya Lakin • tlakin@europastar.com ADVERTISING / INTERNATIONAL SALES MANAGERS Switzerland / Italy / US: Casey K. Bayandor.

Tel: +41 22 307 78 37 Fax: +41 22 300 37 48 • cbayandor@europastar.com Europe & International: Nathalie Glattfelder.

Tel: +41 22 307 78 37 Fax: +41 22 300 37 48 • nglattfelder@europastar.com Spain: Carles Sapena, Sisserou s.l. Tel & Fax: +34 93 112 7113 • csapena@europastar.es Asia: Maggie Tong Tel: +852 9658 1830 Fax: +852 2527 5189 • maggietong@europastar.com Ukraine: Sergiy Kuzmenko Tel: +38 044 205 4089 Fax: +38 044 205 4099 • skuzmenko@karavan.ua ACCOUNTING Business Manager: Catherine Giloux. Tel: +41 22 307 78 48 • cgiloux@europastar.com Credit Manager: Alexandra Montandon. Tel: +41 22 307 78 47 • amontandon@europastar.com MAGAZINES Europa Star - Europe - International - USA & Canada - China - Latin America / Spain Ukraine, Europa Star Première, Bulletin d’informations, Eurotec, CIJ International Jewellery Trends & Colours WEBSITES www.worldwatchweb.com, www.europastar.com, www.watch-aficionado.com, www.watches-for-china.com, www.horalatina.com, www.europastar.es, www.europastarwatch.ru, www.CIJintl.com, www.eurotec.ch Head office: Europa Star HBM SA, Route des Acacias 25, CH-1227 Carouge/Geneva - Switzerland Tel +41 22 307 78 37, Fax +41 22 300 37 48, www.europastar.com.

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A A. Lange & Söhne 54, 63, 66 Alexander Shorokhoff 28, 30 Audemars Piguet 2-3, 20, 27, 54, 63, 66 B Backes & Strauss 36 Ballast 55 BaselWorld 21, 28, 44, 55, 59 Baume & Mercier 35, 38 Blancpain 54, 63, 66 Breguet 54, 63, 66 Breitling 45, 63 Bulgari 20-22 Burg 55 C Carl F. Bucherer 17 Cartier 35, 36, 62 Casio 46-49 Celsius 14, 16, 18, 55 Century 50 Chanel 62 Chopard 54, 66 Citizen 31, 39 Cross 55, 56 D Daniel Roth 22 de Grisogono 36 Digital Luxury Group 62-63 Dior 35, 37 Doxa 42-44 Dubois Dépraz 30 L’Duchen 33 E Earnshaw 55, 56 Ebel 40 Ernest Borel 29 ETA 28, 30, 40, 44, 45, 56

F Federation of the Swiss Watch Industry 68 Fondation de la Haute Horlogerie 41 Franck Muller 36, 37, 54, 63, 66 Frédérique Constant 32, 37, 38, 39 G Gc 39, 45 Girard-Perregaux 45, 63 Graff 35, 36, 38 Grieb & Benzinger 32 H Harry Winston 34, 35, 38 Hautlence 32, 36 Hublot 21, 24, 34, 35, 63 I Ice-Link 37 Ice-Watch 50 Inhorgenta 67 IWC 54, 62, 63, 66 J Jaermann & Stübi 40 Jaeger-LeCoultre 6-7, 54, 63, 66 Jaquet Droz 50, 63 Jordi Swiss Icon 40

O o.d.m. 58 Omega 24, 62, 63, 64 Orient Watch Company 52-53, 68 P Panerai 54, 62, 63, 66 Patek Philippe COVER IV, 36, 37, 62-63 Piaget 54, 62, 66 R Ralph Lauren 9, 37 Richard Mille 24, 2627, 63 Roger Dubuis 35, 36, 54, 63, 66 Rolex 12, 62, 63, 72 Ronda 44, 45, 51 RSW 40 S Salvatore Ferragamo 38 Seiko COVER III, 39 Sellita 44 SIHH 21 Solar Time 55 Swatch Group 37, 60 T TAG Heuer 5, 62, 63 Timex 68 Tissot 19, 37, 38, 39 Titoni 23 Tudor COVER I, 10-13

K, L Kees Engelbarts 32 Longio 56 Louis Vuitton 15, 62 Lulu Guinness 50 Luminox 45

U, V Ulysse Nardin 54, 63, 66 Vacheron Constantin COVER II, 1, 63 Venus 25

M, N Magellan 50 Memorigin 57 Morgenwerk 67 Nomos 40

Z Ermenegildo Zegna 45 Zenith 21, 32, 35, 38, 39, 63 Zerone 58, 59

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72 LAKIN@LARGE europa star

A bridge too far?

This year, I left Menton’s 38º Celsius sauna at the beginning of August to enjoy a cooler clime and get far away from the madding crowd.

Cooler was optimistic since I misguidedly chose the far west … of England, which for those of you who have never ventured to Land’s End is the point where England joins the Atlantic and, at least whilst I was there, is home to arctic conditions.

The local weather forecast for my visit was ‘changeable with occasional light showers and intermittent sunshine’: however, my reading of the climatic conditions was gale winds and rain with an occasional fine drizzle.

Land’s End ain’t what it use to be. Instead of the agonisingly small hotel and craggy landscape in days of yore, there are now unsightly amusements for children and severely retarded adults, a photographer that charges you for a photo whilst you stand in front of the Land’s End signpost, a shop that sells everything from trinkets that nobody in their right mind would wear to Cornish clotted cream fudge that, studying the waistlines, everyone eats. Fortunately they also sold polar clothing and a mere three minutes later and twenty English pounds lighter, swathed in the ugliest of outer garments, I ventured out into the howling wind and rain to discover that the sun had decided to make its annual appearance. I quickly took a few photographs as a souvenir of my visit – as if I could forget it! – then returned to the warmth of the hotel in distant Falmouth.

It was a dark and stormy night, to quote Peanuts, but after I had defrosted in the hotel’s window-rattling bedroom the decision was taken to head eastwards with the airport at Gatwick the objective.

Dressed in clothes that Scott of the Antarctic would have appreciated, I eventually boarded a flight to Geneva and disembarked at 8 o’clock in the evening to be greeted by a temperature that was around 28º Celsius. They say ‘hell is other people’ but being polar-clad in that temperature certainly runs it a close second.

The following day, I awoke to once again find the rain beating against the windowpanes and that my hitherto hardy Rolex Submariner had died and gone to Valhalla or horology’s Elysian Fields. I shook it, tapped it against my hand, spoke nicely to it and then hurled a diatribe of such abuse at it that if Hans Wildorf were alive he would have turned in his grave.

The rain stopped a day or so later so I decided to take my wayward timepiece along to the Rolex building that lies just behind the Europa Star offices. Walking there from my apartment I had to cross the Arve river and as I wended my way alongside the river bank I was suddenly confronted with the new Hans Wildorf Bridge, an elliptical ‘bird’s nest’ creation that connects Geneva’s Plainpalais and Vernet quarters and leads directly to the imposing glass and steel complex of Rolex offices and workshops.

The eighty-five metre bridge that spans the Arve comprises 1500 tonnes of steel plus the same amount of concrete and took three years to complete and given that the Rolex Foundation paid for its construction, it is understandably named after the founder of the brand.

Interestingly enough, Hans Wildorf launched the Rolex brand in England and then brought it to Switzerland, the very route my Submariner had recently followed, although I may have to mortgage my beard to pay for its servicing.

All of which leads me to my bridge story about a man who finds a dust-covered bottle at Land’s End, wipes it to read the label and out pops the inevitable genie.

“Okay, it’s a bit late in the day so you’ve got just one wish, not three,” the genie tells the man.

A moment later the man excitedly replies, “I’d love a bridge across the Atlantic so that I could drive my car from here to New York to visit my relatives regularly.”

“Do you realize the parameters of a project like that?” the genie spluttered. “Thousands of millions of tonnes of steel and concrete to make more than five thousand kilometres of bridge that has to withstand the rigours of Atlantic storms, not to mention the complexity of it having enough height to allow those massive liners to pass beneath it? Come on, give me a break man and make a more reasonable wish.”

“Okay,” the man said, “I’d like to be able to understand the way women think.”

The genie stared at the man, “Do you want a two or three-lane highway on the bridge?”

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

D. Malcolm Lakin Roving Editor