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7
WEB & IPAD SPECIAL
Cover Story
WATCH AFICIONADO
Carl F. Bucherer
takes it up a gear
HOT TOPICS 2015
Signals • Geneva Week – SIHH special reports
Case Studies on Independents • After-sales services: a ticking time bomb?
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WATCH BUSINESS PAPER – USA & CANADA – VOL.51 N° 1/2015 FEBRUARY
WITH INDEX OF ALL IN-DEPTH ARTICLES PUBLISHED ONLINE
COVER STORY
CARL F. BUCHERER
• With the help of its five
collections, all with their
own distinct identity, the
Swiss brand has grown
spectacularly since 2010.
And, given the extent of its
distribution network,
it has no intention of
resting on its laurels, but
plans to continue on this
successful path.
by Serge Maillard
T
here are very few watchmaking brands
today that can look back on a history
of more than 125 years of watchmaking and jewellery expertise, and at the
same time look forward to a bright future
as an independent watch manufacturer. Carl
F. Bucherer is one of them, a strong Lucernebased company in the hands of the family’s
third generation, namely Mr. Jörg G. Bucherer.
The traditional Swiss brand produces five clearly delimited lines, all of which take their names
from Latin: Patravi (I have achieved), Manero
(that which is led by the hand), Adamavi (falling
in love), Pathos (dedicated to passion) and
Alacria (enthusiasm and zest for life).
CEO Sascha Moeri blew in like a whirlwind in
2010, and breathed new life into the centenar-
2 | WATCH AFICIONADO
old saying goes: don’t put all your eggs in one
basket. The expression is particularly relevant
in these times of exchange rate fluctuations!
SPECTACULAR GROWTH
Sascha Moeri
“We are one of the few
brands that have the
potential to establish
themselves worldwide. “
ian firm. In fact, the Bucherer group has been
making watches for a very long time. Its first
timepieces date back to 1919, when the first
Art Déco ladies watch collection was launched.
But it was not until the turn of the millennium,
in 2001, that the watchmaking division was repositioned under the name of Carl F. Bucherer,
a reference to the group’s founder.
“When I arrived, Mr. Bucherer gave me two
main tasks: to further grow the watchmaking brand, and to improve its profitability,”
recalls Sascha Moeri. Although the network of
shops remained the group’s primary activity,
it was hoping to diversify even more strongly
into a second area: watch manufacture. As the
With his extensive experience in the industry,
Sascha Moeri quickly set to work and focused
on three elements: giving the collections a clean
profile, re-evaluating pricing, and expanding its
distribution networks worldwide. The efforts paid
off. Between 2009 and 2014 production and
sales grew from 6,500 to 20,000 pieces per year.
This year, the company intends to increase production even further, by around 5,000 watches.
According to the CEO, the growth spurt is not
over, despite a rather sensitive situation in the
Swiss watch industry. “We’ve reached a very
interesting stage in our development: I’m
convinced that we are one of the few brands
that have the potential to establish themselves worldwide. Our company has still not
reached its limits.” The great strength of Carl
F. Bucherer, which already has a presence in
350 points of sale in more than 25 markets
across the world, lies in the quality of its distribution networks. In addition to its parent
company in Europe, it can count on its own
distribution subsidiaries in China, Hong Kong,
Taiwan, Japan and the US, as well as on the
best and finest distribution and retail partners
worldwide. “We have developed a good balance between our distribution partners and
our own networks.”
STRONG PORTFOLIO
Each of the five collections has its own distinct
and individual identity. Recognisable stylistic
codes and a clear message speak directly to
consumers with a wide variety of profiles. The
Patravi models, rather bold and sporty watches with a contemporary flair that make up the
majority of sales, are particularly popular in
Russia, the United States and the Middle East.
The Manero line with its more classic models
and in-house movements is on the rise. With a
strong following in Asia and Europe, today it accounts for a quarter of sales. The even more understated Adamavi follows closely on its heels.
Women, who make up almost half of the brand’s
clients, are equally well served. The Alacria and
the newly launched Pathos collections draw not
I MANERO POWERRESERVE and MANERO TOURBILLON
only from the brand’s long-established jewellery expertise, but also from its rich experience
in material and technical innovation.
“Over recent years we have focused on the
product. It is the basis of our success, the
watch is still the hero,” continues Sascha
Moeri. Matching this mindset, Carl F. Bucherer
has developed its own line of in-house calibres,
drawn from its patented calibre CFB A1000.
Driven by a peripheral oscillating weight, they
equip a number of the firm’s watches. “Today,
you can pick up a model with an in-house calibre for as little as 8,000 francs!” In order to
continue to offer an entry price of 3,000 francs
across an output that is almost exclusively automatic or manual – only the jewellery watch
collection Alacria and some Pathos models run
on quartz – the brand also sources movements
from external suppliers.
Last year the brand launched its first tourbillon in the Manero collection in a limited edition of 188 pieces, a reference to 1888, the
year the group was founded. An aperture in
the dial at 6 o’clock displays the result. In
the centre, a hand indicates the date, whose
figures change orientation at 3 and 9 o’clock
for instant readability. It is worth noting that
this model’s power reserve, also visible on the
dial, is a generous 70 hours. Finally, the dial
features a 24-hour indicator at 12 o’clock. In
an 18-karat rose gold case, this watch comes
in at 99,800 francs.
MODELS TO
WATCH OUT FOR
As 2015 gets under way and Baselworld approaches, there are new watch models to
watch out for. First, a new model of the
Manero PowerReserve, now available in gold
with a black and white dial, will be presented
at Baselworld. A hand indicates the power
remaining on a semi-circular display at 3
o’clock. In addition to this feature, which gives
this model its distinctive character, the watch
also has a day aperture at 9 o’clock, large date
at 11 o’clock and integrated small seconds at
6 o’clock. It is worth noting that 70% of the
timepiece’s components are manufactured inhouse. At its heart beats the manufacture
calibre CFB A1011, appearing for the first
time in a Manero model. Price: 9,400 francs
in steel, 21,500 in gold. As the brand notes,
“the functionality and design of the power
reserve indication are perfectly combined” in
the striking face of the Manero PowerReserve.
What more is there to say? It’s clear, clean and
effective.
The Patravi ScubaTec dive watch, launched in
2013, is responsible for an important part of
I PATRAVI SCUBATEC DIVE WATCH
the brand’s recent success. This model, which
is water resistant to 500 metres, is now available with a case in daring red gold, priced at
23,700 francs. Equipped with a manufacture
CFB 1950.1 movement, a chronometer and a
38-hour power reserve, it bears eloquent witness to the brand’s diversity. Also worth keeping an eye on is the Patravi TravelTec and the
Pathos collections – some surprising innovations not to be missed!
DEVELOPING MARKETS
“Today our five collections are well established,” confirms Sascha Moeri. The next step
is now to further push the brand’s global presence. “We are growing rapidly, but reasonably
and in proportion to our capacity. With a team
of 160 we have already accomplished a lot, yet
we still have significant room for growth.”
Who are the brand’s biggest clients? Asian consumers, whether they buy in Asia or elsewhere
in the world. “2014 was a good year for us,
both in Europe and in the United States,” notes
Sascha Moeri. For him, the challenge of the
strong franc, which will mean raising prices by
an average of 8% across Europe, is not insurmountable. “It will require some rebalancing.
I ALACRIA ROYALROSE and PATHOS DIVA JOAILLERIE
However, I am very positive about our brand.
If we could have produced 30,000 watches last
year, we would have sold them.”
RED CARPET PRESENCE
To increase recognition, Carl F. Bucherer can
count on a number of watch aficionados such
as Arnold Schwarzenegger, Sylvester Stallone,
Joe Mantegna and Keanu Reeves. Even though
they are not official ambassadors, the celebrities’ loyalty is evidence of their genuine admiration for the brand.
The brand also supported the Swiss Football
Association in 2014 with a dedicated model
for all members of the team that played in
the World Cup in Brazil. It has also entered
into partnership with the Swiss luxury ski brand
Zai. However, the most important ambassador
remains Mr. Jörg G. Bucherer himself, who
proudly favours the Manero Tourbillon model.
“With his grandfather’s name on the dial, we
have a tangible link to tradition and refuse to
compromise on quality!” p
Discover more on Carl F. Bucherer
at www.watch-aficionado.com
WATCH AFICIONADO | 5
EDITORIAL
www.watch-aficionado.com
REIGNS...
by Pierre Maillard Editor-in-chief
EDITORIAL
Confusion reigns...
COVER STORY
Carl F. Bucherer takes it up a gear
SIGNALS
GENEVA WEEK - SIHH
Through the hushed aisles of the SIHH
A stroll in and around the SIHH
Flotilla in Geneva Harbour
INDEPENDENTS
Introduction: The paradoxes of independence
Haute Horlogerie: when independents join forces:
Kari Voutilainen, Antoine Preziuso, Vincent Calabrese,
Vianney Halter, Amarildo Pilo
Case studies (Part I): Vogard, Marvin, Celsius X VI II
BUSINESS
The most popular watch executives on the web
China, Swiss watchmaking at a crossroads
DISTRIBUTION
After-sales service: a ticking time bomb?
RETAILER PROFILE
“Italy is still alive!”
LAKIN@LARGE
An oh so yummy SIHH
Read all articles on
www.watch-aficionado.com
T
Relativity by M. C. Escher (1953)
MANERO POWERRESERVE by Carl F. Bucherer
Reference number: 00.10912.03.13.01
Classic design meets technical know-how. With an integrated power reserve
indication and the high-precision CFB A1011 Manufacture caliber, the
Manero PowerReserve from the Lucerne-based watch brand Carl F. Bucherer
combines high functionality and sophisticated technology – indicating at all
times power is remaining. www.carl-f-bucherer.com
here is a vague feeling that we are at
a turning point, that we’re coming to
the end of something, and have little
idea what lies around the corner...
Uncertainty reigns, gathers in pockets, doing little
to define the new landscape whose outlines are
just visible through the haze. What lies ahead
for watchmaking? Everything jumbles together,
only adding to the confusion. There’s China, the
El Dorado of luxury, whose star is waning under
the growing pressure of the anti-extravagance
campaign, and Russia, whose struggling economy has lost billions. There is also the indeterminate threat from a certain well-known ‘fruit’
company (whose market capitalisation, you may
be interested to know, is 700 billion dollars, or
the equivalent of 30 years’ Swiss watch exports
at 2014 levels), which begs the question: will
the Apple Watch sweep everything before it,
or will it leave something behind? Then there
is Switzerland itself, which also finds itself at a
crossroads. Not only is its currency taking the
executive elevator to the top floor, but with the
end of banking secrecy, and international scandals such as the HSBC SwissLeaks affair further
tarnishing its reputation, the insolent prosperity
of this small nation is gradually being undermined. Where we’ll find the answers to these
open questions is anybody’s guess. Things are
all over the place, it seems. After two decades
of relentless upscaling and brazen pricing, the
industry is asking itself: can we carry on like this,
targeting just the 1% of the world’s population
that controls 50% of its wealth?
Some have chosen to follow a different strategy.
TAG Heuer, for instance, has put the brakes on
its Haute Horlogerie and chosen to focus on ‘affordable’ products for young people. There are
more examples, more symptoms: at the recent
SIHH everyone noted that the Richemont group’s
only mid-range brand, Baume & Mercier, finally
seems to have the wind in its sails. Moreover, the
efforts made by Jérôme Lambert at Montblanc
to offer moderately priced complications were
enthusiastically welcomed.
After the frenzy of escalation the tide appears
to be turning, and a fresh current of modesty
is on its way in.
Of course, there are still plenty of bulky, musclebound watches around, complications continue
to pile up and you can’t move for tourbillons,
but there is a vague feeling that we’re starting
to get a little tired of it all. In the manufactures,
people are wondering whether a little moderation would not be a good thing. Quite clearly,
the paradigm is changing. A new era beckons,
and watchmaking will adapt or die.
Europa Star has been an interested observer since 1927, and has seen and lived through its fair
share of ‘historic turning points’! History teaches
us that danger has always come from the threat
of technological advantage. But whether this is
streamlined production in the USA, or quartz
from Asia, as in the past, or today’s spectre of
the smartwatch, in every case the Swiss watchmaking industry has found a way to retain or
regain its pre-eminent position.
And yet again, it looks like the way forward
will lie in finding a new way to ‘democratise’
the Swiss made watch, to offer unbeatable value in every respect. And this may well be the
greatest challenge, in the global economy we
now inhabit. p
SIGNALS
Outer
space
SIHH
Jaeger-LeCoultre has
introduced a new meteorite dial to its
Master Calendar timepiece, making it
the first dress watch to be truly from
outer space! The material used to make
the dials is sourced from a meteorite
that came from an asteroid belt
between Jupiter and Mars.
(Hauteliving.com)
The Salon International de la
Haute Horlogerie kicked off the
year of luxury watch trade shows
in Geneva in January. The SIHH
welcomed 14,500 trade visitors and
members of the press, representing
a 4% increase from the previous
year. (www.sihh.org)
8,888
In denial
Some independent watch
brands were featured at the all new
Swiss Independent Watchmaking
Pavilion during the 2015 edition of
the SIHH in Geneva. The cost of their
participation in individual booths was
set at CHF 8,888, a figure chosen
because the number 8 is considered to be lucky in China.
(Financial Times)
It appears that the Swiss watch
industry has underestimated the
impact of smartwatches. According
to Reid Sherard, the lead watch and
jewellery researcher at New York’s L2,
a market research firm in New York,
how Swiss watch executives have reacted to the Apple Watch “is a classic
example of people in denial”.
(New York Times)
Slow
growth
Between January and November
of 2014, the Swiss watch industry
grew by 2.3% compared to the same
period in 2013, with exports totalling
19.7 billion Swiss francs. However, it
represents slow growth compared to
the average annual expansion of
17% in the three years
leading up to 2012. (New
York Times)
5%
Ultra thin
The world’s slimmest
automatic split-seconds
chronograph belongs to Vacheron
Constantin. Its Harmony Ultra
Thin Grand Complication
Chronograph measures just 8.4 mm,
but the Calibre 3500 housed
inside is only 5.2 mm thick!
(Forbes)
Swatch U-turn
Swatch Group CEO Nicolas Hayek
was initially skeptical of smartwatches.
He once stated that Swatch luxury brands
such as Blancpain were “smartwatches”
because “they make you look smart.”The
brand has now taken a U-turn and plans
to release its own smartwatch within
three months, coinciding with the
debut of the Apple Watch.
(Bloomberg)
Amidst the rising value
of the Swiss Franc (CHF)
compared to the Euro, it
appears that brands will be
absorbing the increase in prices.
As a result, the Richemont group
will reportedly increase its
prices by up to 5% across the
board in the Eurozone.
(Forbes)
Noiseless
movement
A group of Swiss researchers have
developed a unidirectional continuous
oscillator which could revolutionise
the mechanical basis of watches that
has existed for centuries. The so-called
IsoSpring is a noiseless movement
that will eliminate the ticking of
watches, while also being more
precise than current timepieces. (phys.org)
WATCH AFICIONADO | 7
SIGNALS
Wearables
for women
Emotion
According to Daniel
Riedo, chief executive of JaegerLeCoultre, the company wants to
be more accessible to the public and
focus on the ‘emotion’ of its watches.
“We are a house with such a long
history and such a deep technical
expertise. And now we want everybody to experience that without
feeling intimidated,” Riedo
said. (Live Mint)
Dropping
sales
According to Luca Scola, analyst at
Exane BNP Paribas, the Swatch Group is
particularly vulnerable in 2015 and 2016.
With its emphasis on low- and mid-range
brands competing with smartwatches, Scola
projects dropping sales for the Swatch
Group: as much as 10% for its entry-level
Swatch brand and 5% for its midrange brands like Tissot and Mido.
(Wall Street Journal)
In decline
2014 ended in decline for the
Swiss watch industry, with the
value of exports of Swiss watches
down 2.5% in December 2014 compared to the previous year. Exports were
buoyed by watches costing less than 200
Swiss francs, representing an increase
of 14%, while timepieces costing
over 500 Swiss francs fell steeply. (Federation of the Swiss
Watch Industry FH)
According to market research firm
NPD Group, 25% of men are
interested in purchasing a smartwatch,
against about 18% of women. However
wearables for women are diverse and
include three broad categories: smart
bracelets that tell the time; feminine
digital watches; and analogue watches
with some smart functionality.
(New York Times)
Average
watch cost
The average cost of
a Swiss watch is $739,
while the average cost
of a Chinese watch is
only $3! (Statistic
Brain)
Interactivity
The new Guess Connect
smart watch allows users
to customise specific vibration
patterns to different messaging,
calling and social media alerts. It
also houses a microphone which
provides improved interactivity
by allowing for voice commands and dictation.
(Wearable)
Pilot’s
dream
Richard Mille has introduced a
new $1.1 million chronograph
called the Tourbillon RM 039
Aviation E6-B Flyback. With nearly
1,000 parts, the complex watch is a
pilot’s dream: it can calculate fuel
burn, flight time, ground speed
and even measure altitude. It
can also tell the time. (Wall
Street Journal)
Global
Luxury Watch Index:
Haute Horlogerie Focus
Producer of the WorldWatchReport™ – the leading market research in the
luxury watch industry – DLG Intelligence is the authority in measuring,
analysing and forecasting desirability globally. By analysing over 600,000 relevant
online searches made daily for 18 Haute Horlogerie brands in 20 markets, the Global
Luxury Watch Index – Haute Horlogerie Focus gives the decision makers an indication of
the desirability of the watch industry over time.
Fastest growing Haute Horlogerie brands
The brands that have seen the biggest rise
in interest compared to a year ago are:
Blancpain, Richard Mille and Patek Philippe.
“Worldwide consumer interest for Haute Horlogerie brands is continuing
to grow for the fifth year in a row. People love exclusive timepieces and
Haute Horlogerie products are considered as long term investments.”
Blancpain
Richard Mille
Patek Philippe
A. Lange & Söhne
Audemars Piguet
Vacheron Constantin
David Sadigh, Digital Luxury Group
ϯϬй
Ϯϱй
ϮϬй
ϭϱй
ϭϬй
ϱй
Ϭй
8 | WATCH AFICIONADO
+22%
Y/Y
Aug-Sept-Oct. 2014
vs.
Aug-Sept-Oct. 2013
+45%
+29%
+29%
+28%
+26%
+25%
HAUTE HORLOGERIE +22%
Ulysse Nardin +19%
Jaeger-LeCoultre +15%
Girard-Perregaux +7%
Breguet +5%
Franck Muller +2%
Baume & Mercier +1%
GENEVA WEEK – SIHH
THROUGH THE HUSHED
by Pierre Maillard
SUNDAY 18 JANUARY,
4 P.M., IN A LOUNGE OF
THE HÔTEL DES BERGUES...
It’s a glorious day. The air is crisp, the Pont du
Mont-Blanc is lined with the white flags of the
SIHH, and the powers that be at Geneva’s City
Hall have turned on the tap of the Jet d’Eau,
which cascades down elegantly into the green
waters of the lake. In front of the Hôtel des
Bergues (which for the past few seasons has
also sported an international Four Seasons label) limousines jockey for position. The SIHH
opens tomorrow.
The only blot on this idyllic landscape: just three
days ago, the Swiss National Bank announced
that it was removing the ceiling on the Swiss
franc to euro exchange rate. The effect was immediate: the price of Swiss watches jumped 20
to 25% from one moment to the next. “A tsunami for Swiss industry,” spluttered Nick Hayek
in Biel. What will happen? What strategies will
the groups and big brands settle upon? Will they
cut their margins or pass on the costs? It’s the
elephant in the room, but the huddle of people heading for the salon where Christophe
Claret is about to present his Aventicum is keen
to put this burning issue out of their minds for a
moment, and take refuge in antiquity.
2000 years ago, Avenches was the capital of
Roman Helvetia. It was to remain so for 300
years. During this period the Romans undertook some major construction works, including
an amphitheatre that remains in very good
condition today. An amazing hydraulic organ
was also discovered there, bearing testimony
to the opulence of the city, which was destroyed in 258 A.D. by the Alamanni hordes.
I
AVENTICUM by Christophe Claret
In 1939 a treasure of rare splendour was discovered in a drain: a perfectly preserved gold
bust of emperor Marcus Aurelius.
Reduced to a height of just 2.8 mm, it now presides over the centre of the Aventicum watch.
Placed in the exact centre of a minuscule mirror
in the form of an inverted dome, the microscopic bust carved from gold appears to thrust
out from the bottom of the dial. But it is a holograph: the bust is topped with a second parabolic mirror with a hole in the centre, which
generates the optical illusion. The light waves
reflected off the bust are magnified, making the
holographic bust appear almost twice its actual
size. This magical effect, which is sometimes
used in children’s toys, is called a mirascope.
But achieving such miniaturisation was anything but child’s play. “It requires cutting-edge
and meticulous construction techniques, as the
effect cannot work unless the two minuscule
mirrors are precisely curved. At that size, it really
matters,” explains Christophe Claret.
Step by step, the watchmaker is clearing land
hitherto largely unexplored, that of playful
Haute Horlogerie. After his delicious Margot
with its falling petals, and the occasional foray
into poker and roulette, Christophe Claret is off
playing again. He just can’t help himself. The
back of the Aventicum features an oscillating
weight in transparent sapphire1, which bears
five numbered Gallo-Roman racing chariots. A
flick of the wrist sends them racing around,
and the chariot that stops over the letter ‘A’ in
‘Aurèle’ is the winner.
This playful object, 120 of which will be made
each year, costs CHF 49,000 or, at today’s rates, 49,000 euros. At this price level, exchange
rate fluctuations certainly seem less of an issue... A factor we came to appreciate as the
week went on.
7 P.M., NEAR THE AIRPORT
While the Aventicum’s chariots race, the roulette
wheels are spinning at the Geneva Casino, next
door to the airport, and consequently, to the
SIHH. A flash of the credentials and I’m crossing
a room filled with solitary punters mechanically
feeding coins into slot machines; up a flight of
steps, I arrive at a more elegant salon with large
gaming tables. Look left, look right, and there
is the SIWP, as the Swiss Independent Watch
Pavilion is somewhat inelegantly known.
The brainchild of the dynamic Amarildo Pilo (Pilo
& Cie), this new exhibition hall brings together
some of the leading lights of independence:
small but excellent watchmakers. It probably has
WATCH AFICIONADO | 9
more winners of the Grand Prix d’Horlogerie de
Genève per square metre than anywhere else in
the world. Kari Voutilainen, Vincent Calabrese,
Vianney Halter, Ludovic Ballouard, Emmanuel
Bouchet, Peter Tanisman and others are here,
manning their booths. Antoine Preziuso, his triple tourbillon in hand, celebrates his return to
watchmaking after a pause for reflection. “Live
happy, live small!” he enjoins, as a saxophonist
invited to animate the opening launches into a
riff, and the first champagne corks of the week
are popped.
How will the week go? At least one person here
is not the least bit worried. Kari Voutilainen, like
his friend Preziuso, is keen to stay small. “I get
by, and I do quite well. I produce 50 watches per
year with 17 staff. I make practically everything
myself. The majority of it goes in direct sales. As
I rarely travel, my clients come to me. That’s the
key: do everything yourself. But be careful: you
have to have the courage of your convictions.”
Wise words, but not everyone concurs. Some
have different concerns.
[For more on the SIWP, see the round table for
independents, organised for the occasion by
Europa Star Première.]
8.30 P.M., BY THE RHONE
To celebrate the 20th anniversary of the SIHH,
the CEOs receive their guests in style at the
magnificent Bâtiment des Forces Motrices, now
an annex to the Grand Theatre, Geneva’s opera
house. Against the post-industrial backdrop,
guests in evening dress greet each other with a
handshake or a kiss on the cheek, press toward
the Best Workers of France, who man the buffet, or signal for the World’s Best Sommelier to
come and suggest some wines. “Swiss franc...
euro... dollar...” the words jump out above the
laughter and the general hubbub, but that’s
not really what they’re talking about. Clearly,
no one has a clue what to think. Rumours are
making the rounds: so-and-so has decided to
put his prices up by 15% with immediate effect; another is offering handsome discounts;
and a third swears he won’t budge an inch. So
let us move on. “Good evening! How are you?”
But it wouldn’t do to stay up too late; another
Geneva Week starts in the morning.
10 | WATCH AFICIONADO
MORNING ROUTINE
I
The magnificent Bâtiment
des Forces Motrices
Monday morning. It’s 8.30, and an elegant and
orderly crowd waits to pass through security. For
those who have travelled from distant shores, it
is just one more in an endless series of security
gates. This latter-day ritual completed, we are
admitted to the inner sanctum, to the familiar
muted palette and tasteful upholstery of the
SIHH. But relaxation is not on the agenda: first
up is A. Lange & Söhne.
There’s nothing like a hefty dose of Germanic
engineering to wake you up on a Monday morning. Today it takes the form of the Zeitwerk
Minute Repeater, “A modern interpretation of
the decimal minute repeater with digital display,” so we are told.
It’s a bold wager. Launched several years ago,
the Zeitwerk was the first Haute Horlogerie digital watch, the first to feature a jumping numerals display. This original Zeitwerk, with its
three discs – one for hours, one for minutes and
one for tens of minutes, comes equipped with
a Minute Repeater. The two hammers in blackpolished steel are conspicuously located under
the hours and minutes apertures and, unusually,
T ZEITWERK MINUTE REPEATER by A. Lange & Söhne
strike not outwards but inwards. The gong,
which is also visible, is not circular but follows
the contours of the apertures and small seconds
dial. There are three different sensors – three
snails connected to the display mechanism –
which detect the time to be indicated with an
audible signal: a low tone for full hours, a double
tone for ten-minute intervals and a higher tone
for the minutes.
Consequently, the minute repeater sounds not
the quarter-hours, but every ten minutes, a rarity in itself. And – it is also the only minute
repeater that strikes exactly the time indicated on the digital display! Its constant force
movement, comprising 771 components, has
been thought out down to the smallest detail.
Thus, the repeater takes precedence over the
time display: if the repeater is activated just
before the display is due to jump, the discs
remain stationary until the chime has finished
ringing. Another detail: the repeater cannot be
activated if the power reserve shows less than
12 hours (from a total of 36), to ensure that
the repeater function is not compromised. A
red dot on the power reserve indicator serves
as a warning. There is much more one could
say about the meticulous detailing of this exceptional watch, whose face retains the typical Saxon understatement and simplicity. The
only downside is the price: 440,000 euros, in
platinum! Clearly, at this price point, exchange
rate concerns seem somewhat irrelevant. But,
if you are absolutely determined to own an
A. Lange & Söhne – which is completely understandable – you can always go for one of
the other 12 watches in the 2015 collection.
Beginning with the Lange One and its instantaneous jumping Big Date, which has had a
successful facelift, and is available for EUR
29,800 in red or rose gold. (…)
Read our complete report on
the Geneva Week – SIHH’s brands and
models on www.watch-aficionado.com
GENEVA WEEK – OUTSIDE THE SIHH
FLOTILLA
T
he SIHH, which this year celebrated its
twentieth anniversary, is a victim of its
own success, attracting an increasing
fleet of hangers-on around the flagship event.
The flotilla includes large cargo vessels (Hublot,
Zenith), frigates such as Ulysse Nardin, pleasure
cruisers (de Bethune, Christophe Claret, Urwerk,
FP Journe, MB&F, Bovet, Manufacture Royale)
and ocean-going monohulls such as Revelation
and Ollivier Savéo, to name just a few. They
all mill around the bay, not far from the Cité
du Temps, an artificial island inhabited by the
Swatch Group, which is exhibiting Breguet and
Harry Winston there. A short distance away, on
the Rue du Rhône, all the watchmaking bou-
tiques, single- and multi-brand alike, are staging
their own ‘exhibitions’. And we shouldn’t leave
out the Franck Muller group, which is entertaining in high style at its country seat, and Cvstos,
which is partying like there’s no tomorrow in
its arcade, with the help of the larger-than-life
Gérard Depardieu.
Fabienne Lupo, the welcoming and considerate director of the SIHH and FHH, is resigned
to the phenomenon. She nonetheless draws
a distinction between the independents who,
understandably, are trying to make the most
of the opportunity, and the powerful groups
that turn up on the doorstep, uninvited. Some
years back she toyed with the idea of organis-
ing a parallel exhibition for Haute Horlogerie
independents in a chateau close by the SIHH.
But the brands exhibiting at the SIHH opposed the idea, and it was dropped. Which is
a shame. Evidently, even elephants are afraid
of mosquito bites.
Whatever the case, it was possible to find some
extremely attractive deals during this hectic
week. Here, as a kind of appetiser, are some
from the independents (in alphabetical order, so
as not to ruffle any feathers), but we will cover
them at greater length in our next issue (ES
2/15) which will be published to coincide with
Baselworld. Most, if not all, will also be present
at the Basel fair.
variations on his Son of Sound, drawing inspiration from musical motifs and stringed instruments. This iconic piece will soon be on display
at the MoMA in New York. Available in some
60 sales outlets, the brand also offers one-of-akind and bespoke pieces. (SM)
BOVET
ARTYA
Launched in 2010 by Yvan Arpa, the brand is expanding its ‘Son of’ range with ...a Gun, Sound,
Gears, Earth and Art. You may remember its
models, whose blued cases were produced by
real lightning from an electrical coil. The watchmaking entrepreneur is presenting some new
The Val de Travers brand presents several richly
worked and elegant pieces. For ladies there is
the Miss Audrey, whose Amadeo system allows the watch to be easily detached from its
bracelet and converted into a pendant, pocket
watch or table clock. Another model to watch
is the jumping hours Virtuoso with five-day
power reserve, optionally set with gems, in
rose or white gold. The Braveheart transparent tourbillon with retrograde minute hand is
also worth a look! The brand is equally active in
bespoke watches; around 30% of its sales are
for custom models. Bovet is also continuing its
push for vertical integration, with 75% of base
movements produced in-house in 2014, compared with 50% the previous year. (SM)
BREVA
Breva has espoused an unusual take on watchmaking. Its Genie models, launched in 2013,
have much in common with scientific instruments. The first complication was a barometer,
a sort of weather-forecasting watch. The second,
sportier series, was built around an altimeter. The
WATCH AFICIONADO | 11
present in the unique watches that the two
men create together. Introducing the latest
DB25T Zodiac, Denis explained that it was
about “rediscovering emotion in historical
fine watchmaking.” Dials decorated with symbolic zodiac figures flourished in the classical
watchmaking of the golden age. Here they are
given new life, finely carved into a stunning
watch of rare simplicity and rare emotion.
But De Bethune has plenty more tricks up
its sleeve, notably in its more technical pieces,
which we will come back to in our forthcoming
Baselworld issue. (PM)
models that could not be more different: the
Quantième Perpétuel and the Elégante, whose
technical problems have now been resolved.
Watch this space. (PM)
MB&F
Amply living up to its reputation as a ‘horological laboratory’, MB&F is launching into outer
space a ‘pirate’ watch unlike anything you have
ever seen. Its organic forms are dominated by
FP JOURNE
new model, the Genie-03, which goes on sale
in June in a limited edition of 55 (CHF 48,000),
includes an anemometer that calculates ‘instant
speed’ (not to be confused with the tachymeter,
which calculates average speed) and maximum
speed. This scientific gambit is an accurate reflection of the brand’s name: ‘breva’ is the name of
a wind that blows over Lake Como in Italy. We
hope this southerly breeze bodes well for the future of the horological start-up! (SM)
“I am always going back over my collections.
In 2000 I revisited the Resonance, reworked
the movement completely, and added a new,
rather sophisticated free detent escapement,
which no longer needs a spring. The escapement wheel is making a comeback. In the
same vein, I have now returned to one of my
DE BETHUNE
It is always a distinct pleasure to meet Denis
Flageollet, the watchmaking heart of De Bethune.
David Zanetta, its aesthetic soul, prefers to play
the deus ex machina, but he is also entirely
classics, the Octa Lune, which was starting
to show its age. I redesigned it, enlarged
it and substantially improved its readability
by, among other things, doubling the size of
the date,” explains François-Paul Journe. Who
could fail to rejoice at the renaissance of this
elegant and understated watch, the epitome
of Journe’s watchmaking. But we should also
prepare for the long-awaited launch of two
12 | WATCH AFICIONADO
four sapphire domes in its four corners housing the regulating ‘turbines’ for the winding
mechanism, and hemispherical hour and minute
indicators. The central dome opens up to reveal
a flying tourbillon with a ‘retractable hemispherical shield’ that protects its beating heart
from UV rays. Inside, a highly complex motor
required three years’ work to perfect, and mindnumbing 90° angular gears to work around.
But the HM6 Space Pirate has now lifted off.
We can also soon expect the latest edition of
the HM3 Frog, MB&F’s bestseller, with more
than 500 sold out of a total of 1,500 pieces
produced by MB&F since it began. There is
more to discover in our next issue. (PM)
Read the full article
on www.watch-aficionado.com
INDEPENDENTS
• To illustrate the various
difficulties encountered
by independents, Europa
Star has chosen a series of
particular cases.
You’ll find below the first
part of these studies per
brand. More to follow
in our next issue (ES 2/15
Baselworld).
NO. 1:
VOGARD
“As a shareholder
I’m happy; as a creator,
disappointed”
I
n 2002, a little over twelve years ago, Michael
Vogt, a marketing executive who had previously worked alongside Christian Viros
at TAG Heuer, launched his own brand: Vogard.
With the help of the extremely talented young
master watchmaker Thomas Prescher he designed, perfected and patented a unique way
of setting the time zone simply by rotating the
crown. It was a first for mechanical watchmaking, and it made him the envy of many major
brands. His watch is beautiful, exquisitely designed and highly recognisable. It is ridiculously
easy to use, and it is the first watch capable of
displaying half-hour time zones (as in Nepal, for
instance) and Daylight Saving Time.
It is easily customisable to meet specific requirements (for example, pilots can display ma-
jor international airports, or golfers can consult
the time at the world’s greatest golf courses);
it is available in steel or precious metals, with
or without subtle gemstone inlays, and will
eventually be produced in several models:
Datezoner, the only watch in the world that
can coordinate time and date changes via the
rotating bezel, and Chronozoner, which combines time zones with a chronograph function.
An aficionado of what he calls ‘useful luxury’,
Michael Vogt offers watches at modest and
eminently reasonable prices: around CHF
7,000 for the basic model in steel, CHF 12,500
for his Chronozoner and CHF 15,000 for the
Datezoner. Over ten years he expects to sell
5,000 units, an entirely respectable figure for
a small niche brand such as his. The company’s
development was completely self-financed,
without any bank assistance, although a minority investor helped to the tune of 10%.
Despite this relative success, Michael Vogt has
decided to throw in the towel. At the end of
November 2014, he announced he had sold
his patents to IWC. Everything points to his
having hit the notorious ‘glass ceiling’.
“As a niche manufacturer and modest watchmaking workshop, we no longer have the financial or structural resources to continue to
develop and exploit the full potential of our
Timezoner technology,” he told Europa Star.
“I really had no choice. We sold well in the Middle
East and the USA as, in both these regions, consumers and retailers alike are much more open
to new ideas than they are elsewhere. Asia, a
crucial market today for all brands, is much more
difficult. It is very hard to find distributors who
are genuine partners; they all dream of just one
thing: working with the big, established brands.
The Chinese, for example, don’t buy a product,
they buy a brand. Initially, Vogard attracted a
great deal of curiosity and interest from retailers,
who all privately rail against the big brands, and
complain that their margins are being eroded.
But when it comes to putting their money where
their mouth is, they balk; they’re afraid of taking
the risk of developing a brand over the long term
when it is still relatively unknown to the general
public. For example, I wanted to open a boutique
in Shanghai, but when I saw the conditions of the
ten-year lease, which stipulated that everything
had to be imported from Switzerland – furniture,
POS materials, etc. – I realised I was about to
jeopardise everything for a single sales outlet.”
While distribution is the biggest stumbling
block for a small brand such as Vogard, which
has never sold its watches on a consignment
basis, other factors have also played a part.
“It has become extremely difficult, with just our
own resources, to continue to develop distribution, open our own-brand stores or shop-inshops, and diversify our range as we need to. To
give just one example, R&D costs have rocketed
over the last ten years. In 2003 one hour cost CHF
150; today we pay CHF 450! Another concern is
WATCH AFICIONADO | 13
that over time I have seen several major brands
sniffing around my patent, analysing it in detail
and trying to get around it. Some even went
right out and copied it anyway, but even though
I won in court (editor’s note: against Villemont,
which subsequently went bankrupt), I didn’t get
anything out of it. Quite the opposite, in fact. It
was time to come to a decision! And IWC, which
was one of the three firms I had identified as
possibly being interested in my patents, was very
keen. As a shareholder, I am happy. As a creator,
I’m disappointed.” So what are his plans now?
“Vogard will continue to provide after-sales
services for all the watches we have sold, but on
the creative side I am going to take some time
out. And personally, I admit, I’m looking for a
new, bigger adventure!” he acknowledges, as if
worn out by all the recent struggles. (PM)
NO. 2:
MARVIN
“We simply couldn’t
go any further.”
“
Given the many challenges Marvin
faces as an independent brand if it
is to continue to offer the best in
a highly competitive, mature market, there is
no option but to invest heavily. As it was not
realistic for us to do this on our own, we have
taken the decision to sell the brand to a third
party in order to guarantee its future.”
The words of the press release issued at the beginning of December 2014 leave no doubt as to
the straits in which Marvin’s independent owners
found themselves, seeing no other course but to
give up their brand or shut up shop. It was Chinese
distributor M. Wu who won the jackpot. There is
no sense that they have failed; quite the opposite in fact. Cécile and Jean-Daniel Maye (Time
Avenue SA) took over the Marvin brand in 2002.
Created in 1850 in Saint-Imier by the Didisheim
brothers, Marvin has had its share of the limelight,
particularly in the 1950s, when it employed up to
350 staff. But it subsequently fell out of favour.
Cécile Maye stepped up to give the brand a new
14 | WATCH AFICIONADO
lease of life. The new models are very well designed, with an elegant revivalist touch, putting a
modern spin on a fascinating heritage that offers
many story-telling opportunities. Its marketing
is well-thought-out, understated, effective and
original. The products are precisely targeted and
affordable, offering a good balance of quality,
price and image. They are intended for a young,
educated urban audience with an appreciation
of design, architecture and 20th century style.
Marvin entered into a partnership with Sébastien
Loeb, nine-time rally driving world champion,
whose signature graced a chronograph collection starting at €1,000. People were astonished
that such a high-profile champion should choose
to support such a small brand.
Cécile Maye announced at Baselworld in 2014
that the brand, which had already sold 20,000
units, had seen a 63% increase in orders. So
what went wrong?
“We simply couldn’t go any further, we couldn’t
invest the sums necessary to take us to the next
level. We hit a critical barrier,” explains Cécile
Maye. “The brand enjoys an excellent reputation, where it is recognised,” she adds. “In order
to activate this recognition, we need to have
access to the markets. We have a sound distribution network, with almost 300 sales outlets.
But clearly that’s not enough! Distributors are
in trouble, they’re not buying the stock. Retailers
are under pressure. We are told the market is
saturated. I don’t really believe that. Let us just
say that we are being watched. There is no doubt
in my mind that the big groups and established
brands have a decisive advantage.
“An independent has to do everything itself: design and production, obviously, but also finance,
stock management, marketing, etc.... We could
approach financiers, but they would need a return on their investment that we could not guarantee. We were looking to raise 6 million with a
turnover of 3 million. But we have always refused
to take the easy way out. We are looking, we
were looking, at the long term. Upstream, suppliers are either bought out, or they limit their
sales, or they lose control of their orders. Given
the sums involved, independent brands, lacking
any real possibility of making economies of scale,
forced to squeeze their margins, cornered both
upstream and down, are unable to move up to
the next level.”
What will become of Marvin, now that it has
been taken over by its Chinese distributor? “At
the end of August 2014, when the takeover
was confirmed, M. Wu agreed to take on the
entire Marvin team. Fundamentally, the brand’s
direction and its location in Switzerland will not
change. Marvin is continuing along the course we
set, although, clearly, it is no longer our course.
It’s a great shame that we have to leave it here,
just as everything was taking off. It just goes to
show that distribution is absolutely key. In two
or three months, M. Wu has already opened 40
new sales outlets in China. And in the current political climate, our modest prices have become a
significant factor.”
What do the Mayes plan to do now? “We’re
taking a break, taking a step back, taking some
time out. We might go off somewhere for a
year...” Such is the harsh reality and the privilege of independence. (PM) (…)
Read our series of case studies
on www.watch-aficionado.com
DISTRIBUTION
AFTER-SALES SERVICE:
• With exports of Swiss
mechanical watches growing
year on year, after-sales service
has become a key element for
the industry.
• A solution needs to be worked
out urgently to meet the
demand, or the situation will
quickly become unmanageable.
by François H. Courvoisier, Dean of the
International Institute of Watch Marketing
at the School of Business Administration
Arc, Neuchâtel.
T
he issue of after-sales service is more
relevant than ever. Each year, almost
30 million Swiss watches – including
around 6 million mechanical watches – reach the
market, and join the tens of millions of mechanical watches produced over previous decades.
At the 16th International Watch Marketing
Day, Philippe Boutié of LAMTAR Planning &
Communication in Paris talked about the “aftersales service time bomb”. To support his argument, he referred to a study he had conducted on
watchmaking and its subcontractors, in which he
noted that the “return rate just after [expiration
of the] guarantee is one of the best-kept secrets
of watchmaking.” Indeed, brands do not divulge
any figures relating to returns under guarantee
or once the guarantee has expired.
Nevertheless, Philippe Boutié takes no credit
for the phrase ‘after-sales service time-bomb’.
Back in 2007, as the world financial crisis began to take hold, Jean-Philippe Arm devoted
an entire article to the subject in his magazine
WatchAround, interviewing the CEOs of a number of leading brands. He quoted François-Paul
Journe as saying, “After-sales service is the cancer of every brand.” At the time, Mr Journe es-
timated that 10% of watches each year “break
down because they are old, need servicing,
have a fault or have been mistreated.”
50,000 NEW JOBS TO
MEET DEMAND
It was in order to find out more about brands’
strategy in this regard, and to clear away some
of the smoke and mirrors with which clients are
faced when they seek after-sales service, that
the International Watch Marketing Days chose
to tackle the topic in 2013. The concept of aftersales service was covered comprehensively, not
only from the technical angle of watch maintenance, repair and exchange, but also and above
all from the angle of managing client relations
with a view to generating brand loyalty. Indeed,
after-sales is just one aspect of the relationship
between the brand and the client, whose foundations are laid with pre-sales service, when the
client starts to think about buying a new watch,
and which is cemented by ad hoc service, when
the sale takes place in the shop.
Catherine Bourdin Mougel and Laurent Sage
of the Chamber of Commerce and Industry in
the Doubs department of France have noted
that brands are heavily involved in sales of their
new watches, and virtually absent from secondhand watch sales. They observe that the luxury
watch market is increasingly evolving towards a
service market, with a growing number of aftersales interventions compared with new watch
sales. These after-sales transactions, both under
guarantee and out of guarantee, should lead
to an increased presence of brands in the second-hand market. Catherine Bourdin Mougel
and Laurent Sage believe that by 2025, growth
in after-sales service needs to generate 50,000
jobs worldwide, if it is to handle the maintenance and repair of the millions of mechanical
watches that have entered the market.
ASIA, THE WEAK LINK
Maarten Pieters, director of watchmaking training institute WOSTEP, points to the difficulty
of sourcing enough good watchmakers for
after-sales service worldwide. According to his
analysis of annual Swiss watch export figures
over the last decade, mechanical watch exports
have doubled (from 3 to 6 million units, approximately). Using his previous experience in
micro-mechanics and high-end watchmaking,
he calculated that if three million pieces are exported every year for ten years, in the eleventh
year around three million watches will require
after-sales service! In fact, for the watchmaking
industry as a whole, he estimates the coefficient
of watches returned for after-sales servicing at
between 0.7 and 0.9. That means, according to
a reasonable forecast of new watch production,
after-sales service worldwide will affect between
4.9 and 6.3 million units per year. (…)
Read the full article
on www.watch-aficionado.com
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