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watch aficionado
URWERK
Past and
future clash…
Baselworld
Everything and its opposite
www.watch-aficionado.com
Watch business paper – USA & Canada – VOL.50 N°3 JUNE / JULY 2014with index of all in-depth articles published online
editorial
The empire strikes back
www.watch-aficionado.com
uPierre M. Maillard
Editor-in-chief
Europa Star
In Italy and elsewhere it is common to see advertisements proclaiming: “We buy gold, silver,
Rolex.” A Rolex is more than just a watch.
Over and above its value as a status symbol,
Rolex has long been seen as a safe-haven investment, something that can be kept for a
“rainy day”. There are plenty of testimonials,
like this one from an online forum: “For me,
a Rolex isn’t a status symbol; it’s a guarantee
that I have on my wrist an instrument that
has been carefully crafted down to the last
detail, that I own a watch that will still be
in style 40 years from now. Another point in
its favour is that Rolex is the only brand you
can sell immediately if you need the money,
without losing too much of its value. I know
this from personal experience.”
I
UR-105M Iron Knight by URWERK
Titanium and steel watch equipped with a Calibre UR 5.01 manual-winding mechanical
movement with 42-hour power reserve. Hours, minutes and 10 seconds indications, lateral
seconds and power reserve indications, control board: ‘Oil Change’ and power reserve
indications, timing adjustment screw. Sapphire crystal with anti-reflective coating, waterresistant to 30 metres. www.urwerk.com
EDITORIAL
The Empire Strikes Back
COVER STORY
URWERK – Past and Future clash in the Dark Knight
and Iron Knight
BASELWORLD
Everything and its Opposite
WorldWatchWeb – Social Media & Baselworld
The Kaleidoscopic World of Jewellery Watches
The Beautiful Game comes to Baselworld
The Sports Watch Segment continues to be Popular
Getting a Handle on Fashion watches
The Basel Marathon
Ice, Jungle, Savannah and a US General come to Switzerland
RETAILER CORNER
Retailers under Pressure from Watchmakers as never before
LAKIN@LARGE
After-Sales What?
Read all articles on
www.watch-aficionado.com
This unique status did not come about by
chance; it is the result of continually improving product quality, combined with a pioneering marketing strategy that, from the
brand’s earliest days, has gradually built
up an image of solidity, reliability and professionalism. Conceived as an avant-garde
piece of technology (being both automatic
and waterproof), it was only gradually that
Rolex acquired its status as a symbol of success and social standing.
The risk, of course, is that this image is turned against it, as we saw in France a few
years ago, when a sunbed-tanned publicity
mogul with more money than sense declared: “If you haven’t got a Rolex by the age
of 50 your life is a failure,” sparking a national outcry.
Through no will of its own, Rolex has come
to represent the epitome of luxury, even
though products bearing the famous crown
probably offer some of the best value in the
entire watchmaking industry.
The risk that this image of excellence might begin to crumble under the weight of
continuing attacks and scandals, that the
desirable icon could become a hated symbol, cannot be brushed off lightly. Up to
now Rolex, true to its reputation for discretion, has appeared to be keeping a low
profile. The recent surprise appointment of
Jean-Frédéric Dufour as managing director
certainly marks a change in direction or, at
the very least, an adjustment of strategy.
It was crucial to counter the risk of a gradual fall from grace, and show that Rolex
is not just the Fort Knox of watchmaking,
but a powerful and living enterprise, creative, dynamic, and with its sights set firmly
on the future.
To see a young and charismatic figure (JeanFrédéric Dufour is just 45 years old) installed
as MD of the watchmaking giant, one who
moreover earned his spurs outside the Rolex
stable (he was CEO of Zenith after working
for Chopard, among others) is in itself a minor revolution. And it sends a clear signal
that the “Empire” is about to strike back.
But if there is to be a counter-strike, it probably won’t be a terribly spectacular one.
There is no reason to expect a radical change of attitude, to believe that Rolex, that paragon of media reticence, will start shouting
from the rooftops. No, what we shall see is
an unhurried, measured effort to reaffirm the
relevance of Rolex’s watchmaking approach,
particularly with the newer generations for
whom Rolex watches reflect a somewhat
conservative image. Paradoxically, then, JeanFrédéric Dufour will do for Rolex the opposite of what he successfully achieved for
Zenith. Appointed to replace the overly flamboyant Thierry Nataf, at Zenith his task was
to calm things down, restore reason and return the firm to more serious watchmaking.
As MD of Rolex, on the other hand, he will
need to temper the brand’s staid horological
image with a dash of youthful flamboyance.
But the great advantage of working for such
a stable “empire” is that he knows he can
take all the time he needs. p
BASELWORLD
Everything and its opposite
Through the aisles of Basel,
lined with chapels and cathedrals
Baselworld: mile upon mile of aisles, lined with hundreds and hundreds of
booths looking every inch like places of worship, each dedicated to its own
particular divinity. Whether the symbol is a crown, any number of crosses, an
alpha or an omega, every brand, large or small, is hoping to attract new converts.
It would be impossible for anyone hoping to join the ranks of the faithful to investigate them
all, even if they share the task, as Europa Star has done in this issue. The visit is thus necessarily subjective, leaving plenty of room for chance encounters and serendipitous events.
We therefore propose three different routes, respectively taken by yours truly in this
article, by D. Malcolm Lakin (The Kaleidoscopic World of Jewellery Watches; The
Beautiful game comes to Baselworld; The Basel Marathon; Ice, Jungle, Savannah and
a US General comes to Switzerland) and by Keith Strandberg (The Sports Watch
Segment; Getting a Handle on Fashion Watches). Without forgetting the DLG analysis
on the effects and aftermath of this horological Mass on the social networks.
B
Reflecting
the paradigm
shift
2013, according to official figures –
although still well short of the Sochi
Olympic Games at 13,000!
In her opening address Sylvie Ritter,
Managing Director of Baselworld,
stated loudly and clearly that it was
the aim of the international watch
fair “to provide a faithful reflection of
the upheavals the sector has experienced over the last ten years.” In terms
of those “upheavals”, two major
phenomena have converged and
accelerated over the last decade.
The inexorable rise to power of the
big groups, which today are more
dominant than ever, has coincided
(by chance?) with an astonishing
media infatuation (nurtured at great
expense, admittedly) with the world
of watchmaking and which shows
no signs of diminishing. More than
4,000 journalists attended the fair,
almost as many as the über-famous
Cannes Film Festival - 3,907 in
In ten years the watch itself has
undergone an astonishing transformation. Initially a nice-looking,
more or less disposable utilitarian
object, it has now achieved star status, becoming virtually a cult object,
invested with enormous symbolic
weight and value. We often hear the
word “icon” being used about certain watches that have achieved cult
status. But perhaps the word “cult” is
appropriate on more than one level.
After all, it is very tempting to read
Baselworld and its booths (from
the smallest at 6m2 to the largest at
1,625m2) as so many chapels, lined
up next to one other; temples, cathedrals even, dedicated to an array
of different forms of worship.
There are the great monotheistic
religions that continue to domi-
nate, such as Rolex, whose temple
is an impenetrable mausoleum (its
“religion” continues to hold sway
but, like the Vatican, it risks losing its
influential position unless some way
is found to revitalise and rejuvenate
its message - see our editorial,“The
Empire Strikes Back”). Opposite,
Patek Philippe, another pillar of monotheism, has built itself a new altar,
at the foot of which we are invited
to worship the cult of transferable
perfection: a white cloud is suspended in the centre of a glass cube.
Both these monotheist establishments (although Rolex has successfully launched a new cult named
Tudor) are surrounded on all sides
by active pantheistic religions u
5
BASELWORLD
that encourage a multiplicity of
different branches and schools,
which may or may not be strictly
fundamentalist, in the name of
“authentic watchmaking”. Thus,
Louis-Vuitton-Moët-Hennessy
(LVMH), which is stationed at the
entrance, lines up its various and
varied tributaries side-by-side,
from the Roman Bvlgari to the
severely Protestant Zenith, not
ex nihilo. In the wonderful polyglot
bazaar of Baselworld (which could
as aptly be named Babelworld...)
you can find everything, and its
opposite. But let us put aside the
religious metaphor and look at the
facts: what did they all have to offer?
Journalists returning home from the
great annual watchmaking fair are
ritually asked the same question: so,
what’s new? What are the trends?
In ten years the watch itself is becoming
virtually a cult object, invested with
enormous symbolic weight and value.
forgetting the charismatic Hublot
or the methodical and unstoppable
TAG Heuer. Louis Vuitton, the eponymous brand whose worshippers
are notoriously faithful, hosts its
congregation outside the walls, in
the Wildt’sches Haus, an 18th-century villa named after a manufacturer of silk ribbons (as fashionable
in their day as watches are today).
At the geographical heart of the
Baselworld compound sit the tentacular headquarters of the most pantheistic of watchmaking religions,
whose name resonates around the
world: Swatch (Group). Swatch
promulgates a polychromatic faith,
welcoming all congregations with
open arms – populist, elitist, and all
shades in between – embracing the
world in all its contradictions.
All around these giants, up stairs
and around corners, myriad smaller
cults attempt to reach out, to grow,
or simply to survive, to win over
some new converts, to be reborn
from their ashes, or to break through
6
Well, watchmaking has always been
a faithful reflection of its time. In
2014, it is absolutely anything you
want it to be, and its opposite. There
is truly something for everyone,
from the enormous musclebound
timepiece for the chiselled hero
returning from a dangerous mission
(the award for this category goes to
U-Boat and its monumental watch
whose thick glass is deliberately
smashed before sale, a little like those ripped jeans that cost more than
an unblemished pair...) to the Saxon
ultra-purity of three hands against
a white dial (the award here goes to
Moritz Grossmann with its balance
wheel stop-mechanism made of
human hair: that of the CEO).
Let us nevertheless attempt an
analysis. (…)
An exceptional examination of
Baselworld by Europa Star’s
Editor-in-Chief. To read the article,
go to www.watch-aficionado.com
WorldWatchWeb
SOCIAL MEDIA
From Education to Sales
Generation, Watch Brands’ Digital
Presence Peaks at Baselworld 2014
Social Media has altered the way brands are
communicating with their customers, rapidly
becoming a tool of choice to reach out and interact with them efficiently. Product launches,
event coverage and celebrity endorsements are
some of the key marketing techniques that are
featured daily on all main social channels.
Baselworld has the unique ability (with SIHH) to unify all
these elements in order to convey a clear brand value
that is shared with the world. Even the most traditional
of watch and jewellery brands are leveraging on social
media to ensure the highest visibility possible and be
desired by their aspirational clientele during the most important watch fair of the year. The digital world is gradually becoming a medium to touch base with professionals (even watch dealers.) Brand marketers are more and
more conscious of this reality and are seriously investing
in their digital presence (website, e-mail marketing, banner advertising and social media). Their ultimate objectives being to differentiate themselves, to increase brand
awareness and their reach.
A few weeks before the world’s largest watch and jewellery trade show started, the social war had already begun on your screens. At Digital Luxury Group, we noticed
(and managed), starting early March, numerous advertisements on Facebook’s News Feed by promoting watch
and jewellery brands. They were hard to miss because of
their frequency, creativity and precise audience targeting. In fact, if you came across one yourself, it was not
a coincidence! Brands are targeting their audience by
market (ie: USA, Russia, etc.) and by interest (ie: Hublot,
Harry Winston, etc.). Social Media offers unique and cost
effective techniques to reach markets in both B2B and
B2C audiences. (…)
Discover how Facebook
and Instagram affect Baselworld at
www.watch-aficionado.com
BASELWORLD
The Kaleidoscopic world
of Jewellery watches
A look at what some of the brands
are creating to entice the ladies
I was looking forward to feasting
my eyes on the Graff watch that
seemed to be on everybody’s lips
during Baselworld. I had already heard rumblings and rumours concerning their Hallucination
timepiece, imagining that it would somehow
resemble Cartier’s 1929 Art Deco tutti frutti
platinum bracelet watch that was set with
diamonds, emeralds, sapphires and rubies.
But nothing could have been further from the
truth. When I actually set eyes on the kaleidoscope of rare coloured diamonds that make up
this unique piece, I realized that it came from
a different world, a place of dreams, of fantasies, perhaps even an hallucination.
“The Graff Hallucination is a sculptural masterpiece;” Laurence Graff, the Chairman and
founder of Graff Diamonds said of the timepiece, “a celebration of the miracle of coloured
diamonds. For many years I have thought
about creating a truly remarkable watch that
illustrates our all-consuming pas- sion for diamonds. The Hallucination has made my diamond dream a reality.” But this dream, this
quite exquisite combination of 110 carats of
multi-coloured diamonds that somehow blend
together, that shimmer and shine from every
angle, that took thousands of hours to create,
is like nothing you have ever seen in a watch
before – or, probably, will never see again.
The delicate colouring of these rare diamonds
bears no relation to the obscene ‘in-your-face’
multi-carat single gemstones that Sotheby’s
and Christies are more than happy to auction,
these gemstones subtly fuse into a white gold
bracelet with, at its centre, a miniature Swiss
watch with a quartz movement showing, rather discreetly, hours and minutes.
As a piece of art it is exquisite. As a personal
adornment it works. As a watch, let’s be honest,
it leaves something to be desired - the movement is quartz and reading the time on a mini-
I
The Beautiful
Game comes to
Baselworld
“Some people believe football is a matter of life
and death, I am very disappointed with that
attitude. I can assure you it is much, much more
important than that.”
Bill Shankly, Liverpool Manager, 1959 – 1964
At Baselworld this year, I counted six brands
that were caught up in the all-consuming
world of soccer: JeanRichard and Arsenal;
Hublot and Chelsea’s Mourinho and the 2014 FIFA World
Cup; Maurice Lacroix and Barcelona; Rotary and Chelsea;
Ritmo Mundo and Brazil players and Breitling for Bentley
and David Beckham. Football or soccer, depending on
your continent, is a spectator sport, so this particular
article, although it introduces you to the relationship between watch companies and the world of football, it is
as much for your visual enjoyment (see Ritmo Mundo)
as for your appreciation of the horological values of the
illustrated timepieces. (…)
A
ature dial in a maze of colour is a little bit of a
challenge unless you’ve been at the kryptonite
– but if you have that price tag of 55 million
dollars won’t be a deterrent! (…)
In addition to Graff, there are
magnificent illustrations of
watches by Jacob & Co., Rolex,
Bulgari and de Grisogono. To see
and read about them simply go
to www.watch-aficionado.com
With the World Cup in full swing, here’s your
chance to see and read about who wears what
by connecting to www.watch-aficionado.com
7
COVER STORY
URWERK – Past and future
clash in the Dark Knight and Iron Knight
The new school of watchmaking
owes a great deal to the URWERK
company, which has captured imaginations since 1997 with a string of pioneering creations. URWERK has indeed appeared
to break decisively from the conventional
round dial with central hands by proposing innovative indications of the hours and minutes
with revolving satellites.
T
Although this style of watchmaking was immediately hailed as being at the forefront of modernity or even as decidedly futuristic, it is too
easy to forget that it is in fact rooted in the past
with its origins in 17th century.
8
URWERK’s watchmaking, however much apparently at odds with tradition, owes much
to ancient watchmaking and more precisely to
the Campani (or Campanus) brothers who, in
1682, presented Pope Innocent XI with a revolutionary night clock. The pope wanted to be
able to tell the time at night without having to
light a candle or a lamp. The innovation, signed
Petrus Thomas Campanus inventor Romae
1682, consisted of an oil lamp placed inside a
wooden clock case. The lamp lit up transparent
hours numerals in rotating discs. The hour travelled along a semi-circular arc in an aperture
in the dial, its position indicating the minutes.
When the hour numeral disappeared on the
right of the arc, the following hour rose on the
left, imitating the passage of the sun from horizon to horizon.
The watchmakers of the 18th century took up
his brilliant idea by developing a system of satellite hours known as wandering hours, which
had their moment of glory in pocket-watches. In
its usual configuration, the 12 hours are divided
into three sets of four hours (1,4,7,10; 2,5,8,11;
3,6,9,12) appearing on three different discs.
The hours follow one another in turn along an
arc graduated in minutes. The system thus combines a digital display and an analogue indication in an intuitive way of telling the time.
A formal and technical
reinterpretation
URWERK reinterprets this principle in a radical
and contemporary manner, adding sophistication and a level of technicality and precision
that the wandering-hour watches could never
achieve. The satellite system was first applied
in the UR-103, launched in 2003, and “the
first URWERK watch that won the respect and
understanding of the market” according to
Felix Baumgartner, the watchmaking soul of
URWERK which he founded with the designer,
UR-103
Martin Frei. In the UR-103, the 12 hours are in
groups of three, each on the satellites at the
end of four arms of a central carrousel. As the
carrousel goes around, the four satellites pass
successively over four Maltese crosses that turn
the satellites so as to display the right hour.
The turning of the satellite in the UR-103 takes
around five minutes and is hidden beneath a
wide central strip that divides the dial.
“If the appearance of the satellite displaying
the correct hour seems like technical magic,
the force required by the rotation of the satellite is a specific action taking place every hour,”
explains Felix Baumgartner. “Watchmakers, of
course don’t like this temporary demand for
extra energy since it results in a periodic loss
of amplitude, which makes the mechanism
more difficult to manage over the long term.”
Another tricky issue is that the central carrousel of the UR-103 turns on a tiny ball race in
order to reduce friction. “However with time
and the shocks that a watch on the wrist
must endure during its existence, a certain
amount of looseness can occur,” continues
Felix Baumgartner. “We became aware of this
through our after-sales service.”
These technical reasons and also the stylistic
considerations that we describe below led
URWERK’s creators to come up with a new
approach to the same satellite indications in
the UR-105M (M for manual).
The new UR-105M
The new UR-105M lacks the central band that
hides the change in the satellite’s position from
view. Instead the dial is completely open, concealing nothing of the satellite ballet. This takes
place progressively and in full view, eliminating
the bursts of energy that are detrimental to the
constant amplitude of the balance. The four satellites fashioned from aluminium for the sake
of reducing weight are attached to a structure
made of a biocompatible polymer called PEEK
(polyether ether ketone) used in surgery. PEEK is
very hard, hardwearing and light. It can be machined, needs no surface treatment and can be
decorated almost as if it were a metal. The carrousel protecting his structure in PEEK is no longer on ball bearings but on a long central shaft for
precision, held by two jewels and a bolt that is
visible in the centre of the watch. The aluminium
satellites are coated with black diamond-like carbon (DLC). The entire construction is no longer
held from on top as in the UR-103, but from beneath. The complex central component on which
the four satellites are attached (see diagram opposite) is machined out of non-corrosive coppernickel alloy (ARCAP) while the four Maltese
crosses that turn the satellites are machined out
of a self-lubricating bronze-beryllium alloy. The
entire operation of this astonishing mechanism
is progressive without recourse to an additional
supply of energy. Setting the time brings the continuous motion of the satellites into play with appreciable elegance and exactitude. u
9
COVER STORY
T UR-105M IRON KNIGHT
“Technical challenges are at the heart of our
watchmaking, but the performance is elusive,”
says Felix Baumgartner, “since it’s a matter of
moving complex but very light structures with
horological precision. The other challenge posed
by the UR-105M is quite different,” he adds. “It
involves the openworked small seconds hand
that indicates 10-second periods on the bottom
right of the dial, which has to be synchronised
with another seconds hand that can be seen on
the right side of the watch.” This lateral seconds
indication on a red anodised aluminium cylinder
is placed under a fitted lens. Next to it, also under
a lens, is a horizontal power-reserve indicator.
If you turn the watch over, you’ll find URWERK’s
characteristic control board as evidence of the
company’s concern with precision timekeeping. It includes a 42-hour power-reserve indicator, which is more exact than the warning
indicator on the side of the watch, a five-year
gauge that tells the owner when it’s time to
service the watch (humorously referred to as
an oil-change indicator), as well as a fine-tuning screw to adjust the rate, with its scale in a
small arched aperture.
A steel shield
on a titanium body
This delicate and effective satellite mechanism
driven by a Zenith calibre is resolutely guarded
by a tough and purposeful case topped by
a big crown at 12 o’clock. The designer and
URWERK’s co-founder, Martin Frei, is well known
for his Star Trek-inspired futuristic imagination.
Less well known, however, is that another of
his muses comes from the past — medieval
armour. This extraordinary idea had already
been seen in another URWERK timepiece, the
very complicated UR-110, but it takes a dif10
ferent dimension in the new watch. As Martin
Frei points out, “the case of the UR-105M was
entirely conceived as a suit of armour. The visible screws on the face of the watch, protected
by covers, are not just stylistic features; they
are there to hold a proper steel shield against
the titanium body. The parallel with knightly
armour is obvious to me: you have this force
emanating from the armoured bezel that protects an ostensibly fragile mechanism from the
violence of the outside world.”
This analogy is not altogether obvious to those
who can only spare a glance at a watch that
seems more futuristic than medieval. But the
potency and aptness of the inspiration become
apparent if the watch and a suit of armour can
be directly associated. Martin Frei therefore
took Felix Baumgartner to see one of the remaining traditional armour-making families
who are still at work in the Austrian alps. These
heirs to a 600-year-old craft had just received
an unusual order: to replace the 120 antique
suits of armour worn by the Vatican’s Swiss
Guard. Put side by side, the UR-105M and a
traditional suit of armour reveal a remarkable
formal and functional family resemblance.
It therefore seems logical for the two versions of the UR-105M to be dubbed Iron
Knight and Dark Knight. Both have titanium
cases with shot-blasted steel bezels, but the
former has a circular and vertical brushed
finish while the latter has an aluminium titanium nitride (AlTiN) surface coating. The
cases do not have screw-held backs because
the movement is fitted from the top, but their
taut lines mean hat they are complex to machine and to make water resistant, for there
are nine openings and as many critical points
in the cases.
Just as the wandering hours are directly descended from a 17th century clock, the UR105M is rooted in the old days of chivalry.
Who would have guessed that the most decidedly avant-garde watchmaking would be
so much inspired by age-old techniques and
practices?
In fact it’s not surprising once you realise that
Felix Baumgartner grew up in the workshops
in Schaffhausen where his father restored
antique clocks and watches, and that he had
a close-up view of the fabulous mechanical
interiors of many a venerable and historic
I UR-105M
BLACK KNIGHT
clock. One can imagine the child fascinated
by these scientific and mechanical playthings.
This genuine and deep-seated horological culture is combined with the fantasies of Martin
Frei, engendered not by watchmaking but by
art schools. He is free to deploy its effects and
inspirations beyond the watchmaking mould,
giving URWERK’s products a depth, originality
and a liberty that are undoubtedly unique in
their kind. p
Discover more on Urwerk at
www.watch-aficionado.com
11
BASELWORLD
The Sports Watch Segment
continues to be popular
The sports watch is moving
in three distinct directions:
Sports Style. General Sports.
Sports-Specific/Professional. These
three very diverse groups demonstrate
how popular “sports watches” truly are.
T
Sports Style
Entry level and fashion brands have appropriated the look of sports watches, without
the high specifications. This way, the consumer
can look sporty without having to spend the
money to actually own a sports watch. This
is a big segment of watches, as the look is a
strong one and the price can be quite modest,
it doesn’t require a manufacturer to do any
real sports testing nor to make it highly shockproof or water resistant.
“We find ourselves in sport-inspired watches featuring design elements such as: pure
shapes with a sport-chic touch, structured and
coloured silicone straps, perforated leather
straps, iconic dials, over-sized cases, multi-eye
function movements,” says Andreas Schwörer,
Sales Director Tommy Hilfiger Watches &
Jewelry & Juicy Couture Timepieces for Europe,
Middle East & Africa.
A company like TAG Heuer is an interesting
study, as the brand started with sports-specific
timepieces and has evolved into having collections that are truly sports watches and having
collections that are, as Stephane Linder, president, says, “sports-inspired. We are not just a
sports watch brand, we are a brand inspired by
the value of sports,” he notes. “We have real
sports watches and we have sports inspired
watches. These timepieces still have character,
but they are elegant and upscale watches. We
have moved from professional sports watches
to a prestige company that has sports watches, and much more.” (…)
If it’s sport watch models that interest your client
such as those from Juicy Couture, Tommy Hilfiger,
Ferragamo, TAG Heuer, Shinola, Maurice Lacroix,
Rolex, Tudor, Citizen, Reactor, JeanRichard,
Bell & Ross, Bremont etc., read about these and
many others at www.watch-aficionado.com
Getting a Handle on
Fashion Watches
Fashion Watches at Every Level
of the Watch Industry
If you thought dealing with the tremendous number of watches introduced at Baselworld this year was
challenging, consider what the watch industry’s
fashion brands have to contend with. Instead
of product introductions once a year, they have
four major introductions, one a season, and for
some companies, this can be hundreds of new
products each time.
It’s a big challenge, but the volume of watches
fashion companies move is a big enough reward
to make it all worthwhile.
I
Brand Names
The fashion industry is driven by brand names
like Gucci, Chanel, Dior, Ferragamo and others.
There are also fashion elements to many mainstream brands and fashion watches that follow
the trends established by the bigger brands.
In fact, it’s a bit difficult to define the fashion
watch segment of the industry, as there are so
many players at so many different levels. (…)
12
With designs and prices to
suit most pockets, and
fashion watches setting the
trends, catch up with the latest creations on www.watch-aficionado.com
BASELWORLD
The Basel
Marathon
Discovering the soul of
Baselworld requires
more than two sturdy soles
Ice, jungle, Savannah
and a US General come
to Switzerland
A brief look at three brands that
dare to be different
Ice-Watch: In seven short years,
Jean-Pierre Lutgen, the amiable
CEO of Ice-Watch, has brought a
breath of fresh air to business and a colourful
revolution to the wrist of millions by offering
truly inexpensive watches in a myriad of spectacular tones, various sizes and innovative and
trendy styles.
Last year sales reached the 3 million mark at
prices ranging from 69 euros to 129 euros for
a chronograph and 149 to 209 euros for the
Limited Edition of BMW Motorsport watches.
This year, in addition to the ever-popular and
vibrant silicone models there are new collections using materials, in addition to silicone,
such as stainless steel and carbon for the cases, Swarovski crystals and leather, canvas and
nylon for the straps: Ice-Canvas, Ice-Crystal,
Ice-Checks, Ice-Electrik, Ice-Denim, Ice heritage,
Ice-Polo, Ice-Sporty, Ice-Style and Ice-World
etc.
Patton: Just days prior to the opening of
Baselworld 2014, Jean-Pierre Lutgen, Ice Group’s
CEO, announced that his company had acquired
Patton Watches.
Patton watches are Swiss Made, robust and
more than capable of withstanding the elements as the flagship model the P42 Hyperbare
I
A somewhat tired looking exhibitor at Baselworld confided in me
that he had calculated he and his
staff each cover around three kilometres a day
just walking around their booth. I smiled and
explained that the average journalist probably
covered the equivalent of at least one marathon (42.195 kilometres) as we trudge around
the various halls attending press conferences
and then probably complete another in our
annual quest for the watch of watches. (…)
A
has proved – having been submerged in the
depths of the Indian Ocean for more than five
years, it continues to this day to give the correct
time. The unique feature of this model is that
the movement and all its parts are permanently
immersed in a liquid using a special process.
Jean-Pierre Lutgen was drawn to the brand by
both its name and history.
As he explains “The acquisition means the
beginning of a genuine partnership with JeanLouis Le Bec, the founder and grandson of
watchmakers, and the furthering of the group’s
development into the Swiss Made category.”
Gc: Now firmly established as a Swiss brand,
the Gc label of ‘Smart Luxury’ clearly does not
impede it from creating watches that are strikingly unconventional.
This year, its upbeat approach brought two
head-turning models, the Gc Rainbow Python
and the Gc African Dream Collection. With a
similar horological landscaping, the two collections also connected via wildlife: the Brazilian
jungle and the African savannah – the python
and the giraffe. (…)
For a closer look at what these colourful
brands are proposing to the consumer,
read on at www.watch-aficionado.com
This is an in-depth look at some of
the watches and brands that had
a statement to make at this year’s
eight-day showpiece. To see the
illustrations and descriptions of the numerous
superb creations by names such as Frédérique
Constant, Eberhard & Co., Graff, Bell & Ross,
Pilo & Co., Omega, Gc, Rolex, Manufacture
Royale and Franc Vila to name but a few, go to
www.watch-aficionado.com
13
Retailer Corner
Retailers under pressure
from watchmakers as never before
Tensions mount. No more free rides.
Swatch Group is to invest massively
in new company-owned stores.
Watchmakers, particularly at the
higher end of the market, are getting tougher with watch retailers.
Over the last ten years or so, relations between
the two partners, which were previously untroubled, have taken an entirely different direction,
to the dismay of watch retailers and distributors
both. The honeymoon is over. The phenomenon is
not a new one; the number of single-brand stores
has mushroomed over the last decade, but the
stakes are getting higher and tolerances lower.
Bernard Fornas, Co-Chief Executive Officer of the
Richemont group, recently sounded a warning
note in Le Temps. “We need a level of excellence
in the distribution sector. Retailers must become
more active partners, they must help us to build
our brands and project our image in their sales
outlets. Indeed, and I don’t say this lightly, we
have become significantly stricter about the
quality of our partners.” In other words, some of
them no longer make the grade. Consequently,
in recent years the Geneva-based luxury goods
group has opened a number of its own shops
and franchises. The result is that the group, headquartered in Bellevue, now generates 52% of its
income via its own sales network. As of the end
of September 2013 (based on the first half of the
2013-2014 financial year), the group owned a
record 1043 shops around the world.
W
Swatch Group:
“Some way to go”
Swatch Group, although in second place, is
quickly gaining ground. The watchmaking
world number one is set to continue expanding its network of shops through 2014 and
beyond. Although at the moment its own sales
outlets generate just 20% of overall revenues,
this number is expected to grow significantly
in the future. As Swatch CEO Nick Hayek said
last week, sales from these stores could reach
14
30 to 35% over the coming years, although he
believes there is still “some way to go.”
Many of the group’s brands will be given their
own retail outlets, in addition to which, new
multi-brand outlets will continue to open around
the globe. Take the example of Hour Passion, a
label that brings together the group’s mid- and
high-end brands. Present in airports since 2004,
by the end of 2013 the chain had around fifty
stores from China to Italy, Germany and the
United Kingdom. Last year the concept was
rolled out to a number of city centres, including London, New York, Las Vegas, Kuala Lumpur
and Poznan in Poland. The first city-centre boutique was located in Rue de Sèvre in Paris.
In barely thirteen years Swatch Group brand
Omega has seen the opening of 123 own-brand
boutiques, making a total of 322 sales outlets. Its
boss makes no secret of his preference for singlebrand stores over traditional retailers. Stephen
Urquhart told Le Temps: “In an ideal world, we’d
only have corporate outlets. We can control our
own destiny. It avoids all the inherent risks of a
partnership, such as changes of management or
bankruptcy,” he said. Retailers take note. These
statements have not gone unnoticed, and have
already caused something of a stir in Germany.
Inevitably, brands fear that their competitors
are being sold better, presented better and promoted better in single-brand stores. At the end
of the day, it all depends on the margins offered
to the retailer. And as Manuel Emch, CEO of RJ
Romain Jerome notes, this figure is on a downward trend, falling from around 40 to 50% to
less than 30% in recent years.
Swatch
Group is
targeting
35% of
sales
by ownbrand
stores.
Rolex, a notable exception
Nevertheless, the majority of brands cannot afford to dispense with their partners, or at least
not entirely. And in any case, this is not the aim.
Omega still uses 3,000 sales outlets in addition
to its own shops. But the pill can sometimes
be hard to swallow. “Brand X [name removed]
opened a boutique in the same street as my
shop, despite the fact that we had been partners
FUI BOUTIQUE BREGUET
SHANGHAI
for over thirty years. It was like being stabbed in
the back. Particularly since I wasn’t informed officially,” observes the owner of a number of watch
outlets in Switzerland. However, not all brands
are interested in building up a network of their
own shops. Rolex is one notable exception. The
“Crown” prefers to cultivate its differences.
There are no own-brand Rolex boutiques on the
horizon for the Geneva giant, which sets great
store by its relationship with longstanding retailers such as Bucherer in Switzerland, arguing
that they fulfill two entirely different roles. Rolex
assures us that this approach is unlikely to
change. Watchmaker Patek Philippe, which has
significantly reduced the number of sales outlets in recent years (from 750 to 450), continues
to focus on its retail partners. In the words of
president Thierry Stern, “Without them, we simply would not exist.”
Do single-brand boutiques affect the sales of
retailers? The diplomatically-worded official response is that they don’t. But it is difficult to believe that this offensive has had no impact at all.
Watch brand Hublot has opened 70 boutiques
worldwide since 2007, concluding thousands of
sales that would otherwise have gone to other
outlets. However, no retailers are prepared to
state openly that times are hard. Shops claim that
they still have a role to play by offering diversity
and providing a choice of brands to their clients.
And it’s true, the customers are free to choose.
What is also true is that the effects have been
mitigated by the stratospheric increase in watch
sales in recent years. Retailers have also benefited from “shopping tourism”, particularly from
Chinese visitors. But what will happen if there is a
sharp downturn? Who will remain in the game –
single-brand boutiques or multi-brand retailers?
The answer is worth its weight in gold. p
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www.europastar.com ABOUT US and CONTACT US
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elegance.
Modern times,
times, eternal
eternal elegance.
Ernest Borel S.A.
Ernest
S.A.
+41 32 926 17 26 /Borel
[email protected]
+41 32 926www.ernestborel.ch
17 26 / [email protected]
www.ernestborel.ch