FT.com / Reports - Montblanc: Bid to break into high-end watch world
14/11/2009 20:20
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Montblanc: Bid to break into high-end watch world By Lucie Greene Published: November 13 2009 15:55 | Last updated: November 13 2009 15:55
Transforming a luxury pen brand into a credible haute horlogerie watchmaker is a difficult trick to pull off – the world is highly specialised and notoriously tough on newcomers. When Montblanc tried three years ago, there were sniffs of scepticism. More so when the company took over the Swiss Minerva Institute and its Villeret factory, following Minerva’s acquisition by parent company Richemont. But as Montblanc prepares to unveil its most innovative piece to date – The Montblanc Villeret Metamorphosis – the brand is emerging as a serious operator in the fine watch market. Metamorphosis has been designed by watchmakers Franck Orny and Johnny Girardin and already has the luxury bloggers in overdrive. The watch, made from 18-carat white gold, has been named for its unique dual function, transforming from one watch face to another at the touch of a button. (One, a business look, displaying hours, minutes and date, the other, more sporty, according to the brand, with a chronograph.) It is set be unveiled at the The Salon International Haute Horlogerie in Geneva next January and auctioned – the proceeds going towards the Foundation Minerva, Montblanc’s bursary scheme supporting new watch designers. Only 10 will be produced. The company’s expansion into fine watches is part of a broader strategy to evolve into an exclusive four-tier luxury lifestyle brand, incorporating jewellery, watches and leather goods. The brand plans to make fine jewellery and timepieces account for 50 per cent of its business within the next 10 years, becoming collectively as significant as its writing instrument division. Last month it unveiled its new concept store on Rue de la Paix in the heart of the Paris jewellery district. The boutique is the first to house Montblanc’s entire high-end jewellery collection, haute joallerie, along with exclusive collections, bespoke services, one-of-a-kind pieces and limited editions of Montblanc’s watches, jewellery and writing instruments. The store, named 4810, the height of Mont Blanc, is one of 15 planned flagship boutiques, part of Montblanc’s distribution overhaul. Like many luxury brands, diversifying has extended Montblanc’s appeal to new consumer groups, and provided growth in a stagnant market. “When we were only writing instruments, we were placed on the high floor of department stores in the stationery section. Many stores were removing this from their offer, meanwhile diamonds and watches were expanding on the ground floor,” explains Hamdi Chatti, managing director for watches and jewellery at the brand. “Introducing jewellery and watches was a way for Montblanc to stay visible in the luxury field, to stay on Bond Street and in jewellery districts. We’ve extended our audience. Before, people bought our watches as an extension when they were buying pens. Now people are coming to us specifically for our watches and jewellery.” Establishing credibility in its new categories has been a priority, which is why the company has opted to make its entire product range itself, with an emphasis on bespoke services and craftsmanship. Leather goods, jewellery and watches are all produced in-house. This has been crucial, particularly, it says, in the fine watch market. “Montblanc is the market leader for pens. At first we introduced watches as a brand extension, they were great quality, but in the middle market. We noticed that the same clients who would spend €300 ($449) on one of our pens, were spending €150,000 upwards on their watches,” says Mr Chatti. “Our watches were not in this league at that point, and we thought ‘how do we get there?’ We had to become a serious player in our own right.” The company says it has achieved this with an emphasis on innovation, new movements, and craftsmanship. “When you are playing at the very high end of the league, and your name is Montblanc, not Patek Philippe, the product is not enough. You have to somehow break the wall,” says Mr Chatti “There is a psychological barrier. It’s a big jump to be selling watches at €200,000 upwards.” As part of this endeavour, the company has launched the Foundation Minerva to support emerging talents. “We wanted to make dreams come true for watch creators. This is what most brands do well if they are successful. They manage almost crazy creative impulses but make them work. That was the aim of the foundation – to allow these ideas to be developed and really set ourselves apart.”
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According to pundits, the effort is paying off. “They’ve gone about the whole business very sensibly, not creating just high value watches, but actually trying to introduce something new,” says James Gurney, editor of QP, a specialist timepieces magazine. “Their research funding through the foundation has also given the move much more depth. They’re not just taking from Institut Minerva, they are making it into something more than it was before.” http://www.ft.com/cms/s/0/e6f8acc2-cf24-11de-8a4b-00144feabdc0.html
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FT.com / Reports - Montblanc: Bid to break into high-end watch world
14/11/2009 20:20
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