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web & ipad special watch aficionado
Exclusive Inside CHANEL’s secret garden
HOT TOPICS 2015
Haute Horlogerie: pure players vs. others • Smartwatches: the Swiss response • Retail: battles on the web
www.watch-aficionado.com Watch business paper – USA & Canada – VOL.50 N°6 december / january 2015 with index of all in-depth articles published online
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editorial
23,237,000 uPierre M. Maillard Editor-in-chief Europa Star
Twenty-three million, two hundred and thirty-seven thousand Swiss francs: that’s the figure on everyone’s lips, the price of the famous Patek Philippe Henry Graves sold by Sotheby’s in Geneva on 11 November 2014. It is the most expensive watch ever sold at auction. This staggering sum places this work of mechanical craftsmanship, signed and commissioned by Patek Philippe but made over five years by Les Fils de Victorin Piguet, watch-
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super hi-tech; watches were among the most futuristic objects that could be conceived of. A little like smartwatches today. From our 21st-century standpoint, the technology showcased in the Graves watch, however exceptional, is completely obsolete. In this respect it illustrates perfectly the paradox by which Swiss watchmaking lives and prospers: it produces exceptional objects that are in many respects a technological dead end, whose monetary value is completely divorced from their use value. Telling the time as accurately as possible (or the least inaccurately possible), chiming the hour, displaying the date (provided it is before 2100) or moon phase, even calculat-
This gradual slide from utility to contemplation, from technicality to poetry, is both watchmaking’s good luck, and potentially its downfall. makers from the Vallée de Joux, in the realms of a genuine work of art. By way of comparison, the highest price ever paid for a canvas by the Russian master Wassily Kandinsky was 23 million dollars, and that was in an art market gone mad. “This is not a watch you can wear. It is a watch that symbolises strength, power and money,” one ‘watch industry expert’ told AFP. Indeed, a price like that, so utterly disconnected from the object’s use value, illustrates perfectly the symbolic power acquired by mechanical watchmaking over the last two decades. Sold in 1999 for 11 million dollars, a fantastic sum and also a record for the time (the watch had been given an estimate of three to five million), it has more than doubled in price in the space of 15 years. Watchmaking, it could be argued, has always enjoyed a close relationship with money and power – initially this meant royalty and the church. But in the 15th century, the craft was also considered
ing the equation of time, have become ‘gratuitous’ functions, just as a work of art is ‘gratuitous’. This gradual slide from utility to contemplation, from technicality to poetry, is both watchmaking’s good luck, and potentially its downfall. In a world that has fallen prey to directionless frenzy, the ticktock is reassuring, just like a roaring fire in the hearth (which is also pointless in our overheated houses). The tick-tock has a human quality; it connects us with a notion of immortality. It tells us, or helps us believe, that not everything has changed, that from generation to generation, some things persist. As Patek Philippe’s advertising so compellingly suggests, in fact... But this symbolic power of watchmaking, this ‘good luck’, is also its limitation. As we know, symbols don’t last for ever. Not even diamonds: all it takes is a little pure oxygen and a torch, and they can vanish in a puff of vapour. p
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Mademoiselle Privé by Chanel 18K yellow gold and diamond case. Dial embroidered with camellias in gold and silk thread, natural pearls and gold spangles. High-precision quartz movement. Black satin bracelet with diamond-set ardillon buckle. Diameter: 37.5 mm. www.chanel.com Signals Cover Story Chanel’s secret garden très haute horlogerie Patek Philippe’s other jewels GALLERY Black & White DIVING WATCHES Blancpain – The man, the watch and the sea back to the future Smartwatches: the Swiss response strategies The rise and rise of Louis Vuitton SIHH 2015 Ladies’ watches: yesterday and today Internet: new heights for Haute Horlogerie HONG KONG Watches & Wonders 2014: small is… wonderful RESTORATION The Jaquet Droz Museum watch watch club Eleven James – Luxury isn’t just for owners anymore express interview “Luxury brand boutiques all look alike” distribution Pierre DeRoche – Interview with Pierre Dubois retailer profile Frojo – Selling watches at the top of the world SERVICE, PLEASE! Softening after-sales delays with “courtesy watches” ONLINE RETAIL Bricks and clicks: the new battle of the web lakin@large And the winner is… without tears
Read all articles on www.watch-aficionado.com
COVER STORY
Chanel’s secret garden The Mademoiselle Privé collection of jewellery watches opens a window on the private universe of Gabrielle «Coco» Chanel, revealing the symbols that the great couturière held dear. The collection illustrates Chanel’s watchmaking philosophy: aesthetics before mechanics, a far cry from the pervasive obsession with technical wizardry.
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by Serge Maillard
Gabrielle Chanel was drawn to a poetic universe; since 2012 the collection entitled Mademoiselle Privé – two words that were inscribed on the door of her creation studio – has offered a new interpretation, bringing together the métiers d’art of watchmaking and fine jewellery. The camellia (her favourite flower), lion (her astrological sign), comet and feather motifs, as well as the Coromandel lacquered screens with which she decorated her apartments, placed in the hands of master enamellers, engravers, chasers, inlayers and embroiderers, have written a new page in Chanel’s watchmaking history. “Our gradual acquisition of embroidery, plumasserie, bootmaking and millinery workshops is evidence of our attachment to businesses which share Chanel’s insistence on quality, exclusivity and innovation. We are fortunate to be able to draw on many artistic crafts. From this vast palette we can select the techniques most suited to watchmaking,” says Nicolas Beau, Chanel International Watch Director. The Mademoiselle Privé collection is enriched with new expertise, its dials employing techniques such as ‘grand feu’ enamelling, carved or inlaid mother-of-pearl, Japanese lacquer, engraving, snow setting and, of course, embroidery.
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Embroidery as jewellery Launched last year in a limited edition of 18 pieces, the first model embroidered by Maison Lesage using the ‘needle painting’ technique was honoured in the Métiers d’Art category of the Grand Prix d’Horlogerie de Genève. According to the jury, the prize paid tribute to the alliance between Haute Couture and watchmaking. The embroiderers dedicated around twenty hours to produce each dial. Even more precious, the new models are designed with gold thread, gold spangles, pearls and diamonds. “They could almost be considered one-of-akind pieces,” notes Nicolas Beau. “As each dial is hand-embroidered, there are always small variations from one model to the next.”
The watchmaking division has one major advantage in its métiers d’art-driven charm offensive: the unparalleled worldwide reputation of Maison Lesage embroidery. The new models went on sale last October. The watchmaking division has one major advantage in its métiers d’art-driven charm offensive: the unparalleled worldwide reputation of Maison Lesage embroidery. “Its reputation is so well-established that, particularly for our clients in Asia, Hong Kong, Taiwan and South Korea, these models are their own calling card. For them, nothing could be more natural than to have an embroidered dial on a jewellery watch.” The deliberately understated case, assembled by Châtelain, the Chanel manufacture in La Chaux-de-Fonds, melts into the background to leave the spotlight for the exquisitely worked dial. “We have always made it our goal to place technical accomplishment at the service
of aesthetics.” This philosophy seems to have gained some following in the watchmaking world: after a number of years where the accent has been placed on movements, gears and extreme complications, watchmakers now appear to be engaged in a métiers d’art ‘arms race’; whether this is a good thing is open to debate (see ES edition 5/14). “This collection is a long-term endeavour,” continues Nicolas Beau. “We are legitimately drawing from Chanel’s heritage; we have no intention of being dragged into any kind of arms race.” New models, all inspired by the symbols that populated Mademoiselle Chanel’s universe, will be revealed in the coming years. But the métiers d’art will remain focused primarily on enamelling and embroidery.
18K yellow gold and diamond case. Dial embroidered with camellias in gold and silk thread, natural pearls and gold spangles. Highprecision quartz movement. Black satin bracelet with diamond-set ardillon buckle. Diameter: 37.5 mm.
O Set of two Mademoiselle Privé Coromandel watches, sold as a pair. 18K white gold and snow-set diamond case. ‘Grand feu’ enamel miniatures on 18K gold dial using O Set of tw Mademoiselle Priv the Geneva technique Coromandel watches and carved mothersold as a pair. 18 of-pearl. Self-winding mechanical movements.white gold an snow-se 42-hour power reserve. diamond case. ‘Gran Alligator mississippiensis feu’ enamel miniature strap with diamond-set on 18K gold dial usin folding buckle. Diameter: the Geneva techniqu 37.5 mm. One-of-aandincarved mother kind pieces made of-pearl. Self-windin Switzerland. mechanical movements 42-hour power reserve Alligator mississip piensis strap wit diamond-se folding buckle Diameter: 37.5 mm One-of-a-kind piece made in Switzerland
“We have always made it our goal to place technical accomplishment at the service of aesthetics.” 4 | watch aficionado
OO 18K yellow gold and diamond case. Black lacquer dial with camellia motif in yellow gold spangles and quail eggshell applied using the Maki-e technique. Self-winding mechanical movement. OO 18K yellow gol 42-hour power reserve. and diamond case Black satin bracelet Black lacquer dia with diamond-set camellia motif i ardillon with buckle. yellow Diameter: 37.5 mm.gold spangle and quail eggshell ap plied using the Makitechnique. Self O 18K white gold and winding diamond case. Black dial mechanica movement. 42-hou with rotating diamondpower reserve. Blac set motif. Self-winding satin bracelet wit Chanel12-WS mechanical diamond-set ardillo movement. 42-hour buckle. Diameter power reserve. Black satin 37.5 mm bracelet with diamondset ardillon buckle. Diameter: 37.5 mm. O 18K white gold an diamond case. Blac dial with rotatin diamond-set motif. Self winding Chanel12-W mechanical movemen 42-hour power reserve Black satin bracelet wit diamond-set ardillo buckle. Diameter: 37. mm
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The main challenge for Chanel’s watchmaking division is to build on the success of its legendary J12, born in 2000, while developing its other pillars. After the J12... The main challenge for Chanel’s watchmaking division is to build on the success of its legendary J12, born in 2000, while developing its other pillars, the Première and Mademoiselle Privé collections and continuing to bring out new watch models. “The J12 was a revolutionary product on two levels,” explains Nicolas Beau. “The watch took ceramic to the level of a precious material in its own right, paving the way for its subsequent success in luxury watchmaking. Then, in 2003, the white version heralded the advent of a major watchmaking trend. When you have an icon of this stature as part of your heritage, you must be particularly careful not to neglect the other collections.”
A tourbillon to surprise the purists Faithful to its mantra – aesthetics before mechanics – Chanel based its choice of movement primarily on visual criteria. Although the Coromandel models are all automatic, the embroidered pieces featuring the camellia use
quartz. “Its advantage, as well as being more accurate and reliable than an automatic, is that the hands do not need to be centred on the dial. The movement is not a crucial issue for our female clients, however; they are looking for beautiful objects. Sometimes they are persuaded by men to get the automatic model.” This rejection of Haute Horlogerie dogma has not prevented Chanel from launching grand complications in the past. One such is the Première Tourbillon Volant, developed in association with Renaud & Papi (APRP SA). “This HOT TOPICS 2015 model is the finest illustration of mechanics in the service of aesthetics. For us, a mechanical complication is first and foremost a work of art; its specific function comes second.” The decision to conceal the tourbillon behind a rotating flower – a camellia, naturellement – nevertheless still managed to annoy the purists. Why design a grand complication if you’re going to hide it? “When this model won the ladies’ watch prize at the Grand Prix d’Horlogerie de Genève in 2012, it was the best possible vindication of our watchmaking philosophy.”
A new generation of clients Chanel watches are distributed through a network of 200 own-brand boutiques and 400 multi-brand retailers around the world. “Our retailers are put through a rigorous selection process. Their clientèle comprises mainly connoisseurs. Nevertheless, over time, more and more people are coming to our boutiques specifically to look for a watch. There is even a sector of our male collectors who are taking an interest in our Mademoiselle Privé models, particularly the Coromandel Email Grand Feu, which is sold exclusively in our Chanel Fine Jewellery boutiques.” Today, for the watch division, the recovery taking place in Japan is helping to make up for the correction of China’s watch market, after years of exponential growth. “Our growth there was managed prudently; we didn’t rush to open scores of new boutiques,” notes Nicolas Beau. “To date we have ten boutiques in the country. In any case, the slowdown is manifesting itself primarily in shopping tourism, outside China. The recent demonstrations in Hong Kong have also had an effect on sales.” In what are known as the emerging markets, Nicolas Beau has also noticed a change in clients’ attitudes: “They are becoming increasingly well-educated about watchmaking; they no longer buy compulsively, with an eye to their social standing, as they did in the past. We are therefore looking at new ways of communicating with this more specialist and knowledgeable clientèle.” For Chanel, 2014 was a particularly good year for new departures, particularly with the launch of its new twists on iconic models: these include the Première double and triple row, the J12365 and J12-G.10 and the Mademoiselle Privé Coromandel, Maki-e lacquer and embroidered Camellia dial. We trust that the 2015 harvest will reap the fruits of its continuing exploration of new fields of creativity. p Discover more on Chanel at www.watch-aficionado.com
watch aficionado | 7
très haute horlogerie
Patek Philippe’s other jewels
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The Grandmaster Chime is not the only timepiece of note launched by the Genevan manufacture on its 175th anniversary. Here is a selection of new watches deserving of equal attention from watchmaking aficionados.
by Serge Maillard O Previous celebrations 1989: The Calibre 89 for the company’s 150th anniversary 1996: Limited editions for the inauguration of the Plan-les-Ouates manufacture 2000: The Star Calibre 2000 to welcome the new millennium
“My father told me he was handing over the family business to me for the next twentyfive years. I’m hoping the adventure will last quite a bit longer than that! In fact, we have already started thinking about pieces for our 200th anniversary.” For Patek Philippe president Thierry Stern, the bicentennial celebration doesn’t seem all that far away.
Amid the constant stream of anniversaries of all kinds, of which numerous watchmaking brands, quite appropriately obsessed with the passage of time, have made a fetish, Patek Philippe’s celebrations have a special flavour all their own. Firstly because, with its long history, the Geneva manufacture has the modesty and good taste to mark only the passage of
generations. And also because, as a result of its watchmaking abilities, Patek Philippe has accustomed us to expect only truly outstanding timepieces. This generation is no exception. With all eyes naturally on the star of the show, the Grandmaster Chime in its seven incarnations (at CHF 2.5 million each), the most complicated wristwatch ever produced by the family firm, the other pieces presented on the same occasion were understandably thrown into the shade. In order to redress this injustice, Europa Star has decided to pay tribute to these other exceptional watches, which all reflect the DNA and values of Patek Philippe.
“I myself was trained in-house, by enthusiasts, they didn’t teach me how to make money, they taught me how to make beautiful products. That’s the only recipe for lasting success.”
Chiming Jump Hour Ref. 5275 This commemorative Patek Philippe watch, presented in a classic tonneau-shaped case, combines three jumping indications with an acoustic indication at the top of every hour. A closer look at the Chiming Jump Hour reveals that the seconds hand jumps from one scale marker to the next in one-second steps. Otherwise, everything remains unhurried on the gold dial with the floral motif. But as soon as the seconds hand reaches the 60, the minute hand also jumps from one minute marker to the next. And finally, once an hour, the digital display in the aperture at 12 o’clock jumps to the new hour at precisely the same moment as the seconds and minute hands advance. A soft tone can be heard at this moment: the Chiming Jump Hour indicates the top of each hour acoustically as well. The watch pays tribute to the Ref. 3969 with a jumping digital hour, which was launched in 1989 on the occasion of Patek Philippe’s 150th anniversary. The Chiming Jump Hour Ref. 5275 is being crafted in a limited anniversary edition of 175 pieces.
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World Time Moon Ref. 5575 & 7175 This timepiece melds the tradition of World Time watches with an innovative moon-phase display that makes this poetic complication come alive in a totally new way. Ordinarily, Patek Philippe World Time watches feature a guilloché centre or, particularly prized at auctions, a polychrome cloisonné enamel motif. The World Time Moon marks a departure from this standard, as the entire centre is now occupied by a large-format moon-phase display. Never before have the changing faces of the moon been reproduced by a Patek Philippe watch so realistically and with such prominence. Hence, this commemorative timepiece combines two complications that stand for tradition and innovation. The World Time Moon will be crafted in a limited edition of 1750 pieces: 450 as the diamond-set Ref. 7175 ladies’ version and 1300 in the somewhat larger Ref. 5575 men’s version.
“It’s not just about complications: the design, materials such as enamel and even the choice of dial were also essential criteria.”
Multi-Scale Chronograph Ref. 5975 & 4675 Chronographs for measuring time intervals are among Patek Philippe’s most popular timepieces. With eight regularly produced chronograph calibres, all of them developed and crafted entirely in-house, the manufacture’s portfolio in this category is highly diversified. A special model was created to commemorate the 175th anniversary; it has a few extra capabilities compared with ordinary chronographs. No type of watch reveals its purpose as a measuring instrument as obviously as the chronograph. If its function is combined with suitable scales, it can even transform itself into a mechanical computer for the wrist, and will execute calculations based on time measurement. Accordingly, the commemorative model – the Multi-Scale Chronograph – is endowed with three logarithmic scales that can be used to compute speed, distance, and heartbeats per minute. Until well into the 1960s, watches with tachymeters, telemeters and pulsometers were commonplace and widely used by professionals. This is what makes the limited-edition Patek Philippe Multi-Scale Chronograph for ladies and men such an attractive homage to the history of the manufacture and of time measurement.
So what exactly are these famous values? “It’s very simple: honesty, hard work, and a consistent, logical, long-term vision – not getting trapped in short-term thinking. And it does not just apply to the members of my family: our 2,200 employees share these values,” Thierry Stern assures me. “I myself was trained in-house, by enthusiasts,” he continues. “They didn’t teach me how to make money, they taught me how to make beautiful products. That’s the only recipe for lasting success.”
Patek Philippe Rare Handcrafts limited editions Watchmaking has been intimately associated with the decorative arts for over 400 years: engraving, guilloché, enamelling, marquetry, gem-setting, skeletonising, and related techniques. To commemorate this year’s 175th anniversary, Patek Philippe is presenting a number of limitededition Rare Handcrafts models that pay tribute to these incomparable artisanal skills. And no motif could be more appropriate than the city of Geneva with its landmarks, its citizens, and its harbour. Now, such motifs adorn a collection of forty unique or strictly limited-edition models featuring eclectic handcraft techniques to commemorate Patek Philippe’s anniversary: twenty wristwatches as well as twenty Dome table clocks and pocket watches with their respective holders. They all pay tribute to the different enamelling, engraving, marquetry, guillochage, and gem-setting techniques, individually and in combination.
The president of Patek Philippe introduced the results of seven years’ work. “It’s not just about complications: the design, materials such as enamel and even the choice of dial were also essential criteria.” The timepieces presented showcase traditional craftsmanship such as engraving, marquetry, guilloché and jewellery setting. p Discover more on Patek Philippe at www.watch-aficionado.com
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STRATEGIES
The rise and rise of Louis Vuitton The Parisian house is continuing its push for vertical integration. A visit to its new watchmaking factory in Geneva and a meeting with Hamdi Chatti, director of the watch division.
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by Serge Maillard
Executive brief:
• Louis Vuitton has consolidated its watch operations in Geneva, with an eye for synergy and growth.
• The Parisian brand hopes to attract a more specialised clientele with its new timepieces. • Its watch designs are directly influenced by the brand, focusing on the experience of travel.
Louis Vuitton, founded in 1854, certainly took its time. The company waited until the turn of the millennium before entering the watchmaking industry. However, the famous luggage maker didn’t drag its feet: in twelve years it has acquired watchmaking expertise at an impressive rate. The opening this autumn of La Fabrique du Temps, a new building that brings all of the house’s métiers under one roof, provides a telling illustration. This clean, white campus near Geneva is named after the small workshop founded by two masters of watchmaking complications, Enrico Barbasini and Michel Navas, which Louis Vuitton bought in 2011. The two master craftsmen gave a decisive boost to the luxury giant’s watch division. With the acquisition the following year of another small Geneva company, Léman Cadrans, Louis Vuitton took another important step on the road to integration, and settled permanently in the Haute Horlogerie capital of the world. Today the process is complete, both physically and symbolically, and all of its teams have been transferred from the old production site in La Chaux-de-Fonds to Geneva.
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Although we are never allowed to forget that the house’s heart continues to beat in Paris, its brain and its watchmaking technicians now deploy their considerable talents in Geneva. According to the brand’s own publicity, the new manufacture is intended to “promote creative independence”. It admits to three aims: “to master and reinterpret” the secrets of fine watchmaking; to bring together an “independent watchmaking spirit and the dynamism of a venerable company”; and finally, to “nurture the imagination with a sympathetic environment and a high-tech setting.” Judging by the vast spaces given over to the one-hundredstrong team, the watchmaking division clearly has no intention of slowing down.
But before looking to the future, we should take careful measure of what has come before. Beginning with its first collection in 2002, the Tambour, the brand has built a reputation on the watchmaking scene with its GMT, chronograph, tourbillon, spin time and minute repeater models. Today the house is launching two new additions to the Emprise range, and a piece inspired by travel trunks, the Escale Worldtime (see sidebars). Surrounded by his new models and comfortably installed in a brand new building, an understandably confident Hamdi Chatti, Louis Vuitton director of watches, welcomed Europa Star to explain his strategy. Interview.
“Geneva is the international Haute Horlogerie capital of the world, and we wanted to really solidify our position in this sector.”
I Emprise by Louis Vuitton Launched in 2014 in yellow gold and steel with diamonds, the Emprise range has been expanded with two new steel models featuring a black or white dial. The horns holding the wrist strap are emphasised by motifs derived from trunk corner-pieces, while the square, symmetrical case is enlivened by reflections in the double-bevelled glass and the sparkle of diamonds. The bracelet is sheathed in leather embossed with a grosgrain ribbon pattern. The dial is either black or white, decorated with lines reminiscent of the wood panelling found in traditional Parisian apartments. The watch face has no numerals, just the initials LV, with an unusual positioning at 5 o’clock.
Why have you brought all your watchmaking activities to Geneva? It was a natural progression. As you know, our original site, which opened in 2002, was in La Chaux-de-Fonds. But we decided to relocate to Geneva after buying La Fabrique du Temps and Léman Cadrans. Geneva is the international Haute Horlogerie capital of the world, and we wanted to really solidify our position in this sector. There were also practical reasons for the choice. From the point of view of travelling, Geneva is far better connected to our Paris headquarters, where I am based. Communication is easier. Of course, we did everything possible to help our teams from La Chaux-de-Fonds make the transition to living in Geneva. One hundred kilometres might not seem like a long way, but in Switzerland it’s a significant distance!
bringing together different disciplines under the same roof, we are hoping to create a kind of alchemy. That is why the canteen, where all our staff eat together, is probably the nicest area of the new building! If we want to be innovative, our watchmakers, dial-makers and engineers have to be able to talk to each other, challenge each other.
I Escale Worldtime by Louis Vuitton The Escale Worldtime watch draws on the history of the company to reinvent the distinctive features of the travel watch. Louis Vuitton has always offered clients the possibility of customising their trunks with strips of colour, initials, coats of arms and other hand-painted geometric designs. This colourful universe served as inspiration for the creation of the dial of the Escale Worldtime watch. It takes the craftsmen in the dedicated workshop in La Fabrique du Temps 50 hours to complete each dial, using miniature painting techniques and working with oil paint. Over 30 colours are applied one by one with a paintbrush using tiny overlapping strokes, before the piece is dried in an oven heated to 100°C. The ‘Worldtime’ indication, with no hands, is a first in watchmaking design. It is possible to determine the time in the zone represented by a particular city simply by glancing at the corresponding initials. The minutes can be read underneath the yellow arrow indicating the hour in the reference city.
How many employees do you now have in Geneva? Around a hundred. But we deliberately designed this building with surplus capacity. We didn’t build it for two years, we built it to last at least twenty! We therefore have the possibility to keep growing without having to build. It surprises me, the number of manufactures that start to feel crowded just six months after moving in... In fact, it’s not much more expensive to plan for 30% surplus capacity going forward. What are the practical benefits of this consolidation? There will certainly be a positive effect on volumes and production speed. But the real gain is in terms of creativity and innovation. By
How far will you take your drive for vertical integration? What I can tell you is that we will continue to work closely with our long-standing external partners. The reason we came to Switzerland in 2002 was to benefit from this wealth of expertise. In general, within the group we consider that jewellery is Parisian, and watchmaking is Swiss. That is another reason we decided to relocate to Geneva, the capital of Haute Horlogerie. We might not necessarily produce more, but we want to design products that will attract a more specialised clientèle. This is our number one objective. What about the Poinçon de Genève? That would be the icing on the cake. But it is a long process, taking between 18 months and two years. The Poinçon de Genève not only involves a very precise development process, it also requires specific monitoring. We could apply it to some of our Haute Horlogerie pieces, perhaps by the end of 2015. It will require a great deal of reflection, and the creation of a specific narrative. We don’t want the Poinçon de Genève just for the sake of it, that would be pointless. We still need to find the right story to tell. Going even further upmarket will also mean increasing the average price of your watches. Absolutely. Our entry prices are still at the 2,500-franc mark, but at the same time there is a trend to reach out to a more specialised clientèle who are interested in a particular watch, which may have a higher price tag than a classic product.
It’s unusual to be inaugurating a new manufacture now, given that the watchmaking industry is experiencing something of a slowdown, particularly in Asia. How do you think you will react? Given our unique distribution model, which relies entirely on the Louis Vuitton boutiques, we’re not going to open or close any shops at the drop of a hat. We simply could not do that. But it is also a strength, as we could attract loyal Louis Vuitton clients, who might not normally think of coming into our boutique to buy a watch.
“Given our unique distribution model,which relies entirely on the Louis Vuitton boutiques, we’re not going to open or close any shops at the drop of a hat.” If you are looking to reach a more specialised clientèle, won’t you also be working through specialised watch retailers? No, that has never been our policy. We will continue to distribute our products solely through our own boutiques. Our hope is that the most devoted watch connoisseurs will spontaneously visit a Louis Vuitton boutique to see our watches. Distribution know-how is part of our DNA, as is keeping our design entirely in-house, and never having sales. Those are our sacred cows, they are non-negotiable! I should also point out that our primary source of inspiration is the company itself. The Escale Worldtime watch, with its time zones and characteristic colours, was directly inspired by our heritage. Louis Vuitton and its history of travel is the point of departure from which we approach the future. We want to offer products that are different but nevertheless reflect the spirit of the times. p Discover more on Louis Vuitton at www.watch-aficionado.com
watch aficionado | 11
SIGNALS
BACK to the Future
iWatch vs. Apple Watch
Smartwatches: the Swiss response
Contrary to common belief, the iWatch is not the Apple Watch. A Dublin-based software company trademarked the iWatch term in 2008. In fact, the company plans to build its own wearable watch in the near future, which is expected to run on Google’s Android 4.4! (Bloomberg)
Tissot is planning to launch a smartwatch that will be very different from current Apple and Samsung products. Interview with director François Thiébaud.
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Classical steel chronographs
by Serge Maillard
Watch executives expect that classical steel chronographs costing more than CHF 5,000 will be the most sought-after timepieces in 2015. This confirms the trend towards high-end watches, but away from the previous trend for gold watches. (Deloitte)
63%
Executive brief:
• Tissot will enter the smartwatch market with a “Swiss made” product before Baselword 2015.
• They promise to make a watch unique from the current smartwatches on the market. • Tissot does not consider brands like Apple or Samsung as direct competitors.
The opening of monobrand stores remains a priority for watch companies. According to Deloitte, 63% of watch companies expect to open such flagship stores in 2015, forming a key part of their business French company A.L.B. strategy. is at the forefront of using
3-D
3-D printing techniques to create unique dials.“It’s quite easy to copy what other horology companies do, and quite difficult to do something different,” said co-partner Simon-Pierre Delord. (New York
Crime
The launch of Apple products is linked to crime spikes in major cities. Police predict that high-end gold version of the Apple Watch will be a significant target for theft. (International Business Times)
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Times)
When Apple announced the launch of its smartwatch for 2015, all eyes turned to the two Swiss brands that seemed to be in the Californian giant’s sights: Swatch and Tissot. Both companies have announced their intention to launch their own connected products. But ‘connected’ is a very broad term, covering countless possibilities. Although he doesn’t want to give too much away about the specifications of his future smartwatch, François Thiébaud, director of Tissot, agreed to discuss the broad features of the project with Europa Star. This is his vision of the smartwatch, Swiss style. Interview. You have announced that you will launch a smartwatch by the end of this year. Where are you up to? François Thiébaud: Tissot, like Swatch, will be presenting a new smartwatch in the coming months, before Baselworld. As you may recall, the Swatch Group was a pioneer in smartwatch technology, with its Paparazzi and Access models.
How will your smartwatches be different from those of Apple or Samsung? FT: First of all, we are a Swiss brand! So we couldn’t take the risk of losing the ‘Swiss made’ imprimatur when we launched a smartwatch. Nevertheless, a number of components have been sourced abroad, although we are keen to retain our independence from external suppliers. I’m drawn to new technology: when I arrived at Tissot I launched the ambitious T-Touch project, partly because of my personal experience as an amateur pilot with functions such as the compass and accelerometer. But technology is not everything. Our mission is to ‘dress time’, and that will not change. A watch is a vehicle for emotion, not a purely technological product. Without emotion, we’re serving up a dish with no flavour.
“Tissot, like Swatch, will be presenting a new smartwatch in the coming months, before Baselworld.” So what do you think of the Apple Watch? Does it pose a direct threat? FT: It is not at all comparable with the quartz revolution, as some people – who seem to think the world changes drastically every five years – would have us believe. In my opinion, it’s primarily the Asian brands that will be affected, not Swiss watchmaking. Recently, at a conference, I asked all the delegates who were wearing a smartwatch to raise their hands. Just one hand went up, and it belonged to the representative of a smartwatch manufacturer! Personally, I have no wish to receive notifications every 30 seconds. I’m not constantly looking at my smartphone now, as I’m talking to you.
Service
complementary. The portable phone didn’t kill off the traditional watch, did it? Once initiated, these novices could progress to higherquality products. After all, the first time you taste cognac, you don’t necessarily enjoy the taste. You have to learn to appreciate luxury, and that takes time. If that were not true then, as Nicolas Hayek Sr. used to say, you might as well cut your cigars with your teeth...
What, in your opinion, are the disadvantages of current smartwatches? FT: First of all, they have to be linked to a smartphone, such as one of Apple’s expensive models. If you add the cost of the watch to that of the telephone, they’re not really competing with the entry level! Another downside is that these watches have to be charged regularly. If I need one charger for my iPhone, another for my iPad and yet another for the Apple Watch I’ll have more chargers than clothes in my suitcase. What is more, current smartwatches are quite fragile: their square or rectangular shape can never equal the water resistance of a round watch case. And finally, distribution will be a problem for these brands. Probably not for Apple, but for the others: will retailers really want to take their Tissots out of the display cases to make room for smartwatches? They are quite ephemeral products in a way, they very quickly go out of date. They are more likely to be sold in big electronics stores. If the market is so weak, why bother? FT: Competition drives us forward, it stimulates us! Clearly, we can’t fight against technology. But we watchmakers will be offering something different from the electronics giants. Why not, for example, have a mechanical watch with a ‘smart’ strap, that could be used as an access key for secure areas? There is also an advantage for us: young people who are not used to wearing watches will be introduced to watchmaking through the smartwatch. Our products could potentially be
“Switzerland is our test market: as a rule, what works here also sells well elsewhere.” How was your latest solar-powered touchscreen watch, the T-Touch Expert Solar, received? FT: It is still a little too early to say; the first watches were only delivered in August. We always begin with the Swiss market, before we supply the rest of the world. Switzerland is our test market: as a rule, what works here also sells well elsewhere. Here, we have both a local clientèle of connoisseurs, as well as foreign visitors, which makes it a good test bench. Our sales staff are also well trained. In addition, if a watch has teething problems they can be fixed quickly. But I do believe that combining the fun aspect of the touch screen with solar technology, which is very ‘now’, will bear fruit. In 2013 you produced more than four million watches, 8.1% more than the previous year. What are you expecting from the 2014 financial year? FT: 2014 will be a positive year. Although we won’t see the same growth as in 2013, there has been an increase in value compared with last year. We hope to reach the target of 4.3 million models sold in 2014. That’s also a sure sign that smartwatches have not affected us! (…) Read the complete interview on www.watch-aficionado.com
With the increasing popularity and sales of mechanical watches, watch retailers are struggling to keep up with service demands.“If they didn’t make another watch, I think there’s enough work for another 50 years. It’s a problem.” Terry Irby, technical director of service at Tourneau. (Wall Street Journal)
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To commemorate its 175th anniversary, Patek Phillippe has created the “most complicated wristwatch” in its history. The Grandmaster Chime, which has a movement of 1366 parts, displays time on one side and a perpetual calendar on the other. This new “Mona Lisa” was produced in seven models.
95%
The watch industry is Switzerland’s third largest export sector. At 95%, almost all of its production is exported, highlighting the dependence on achieving success internationally. (Credit Suisse)
Courting Women
IWC, whose tagline is “Engineered for Men”, is increasingly courting women. According to CEO Georges Kern, women and Asian buyers have inspired their new Portfolio Midsize line of more feminine watches. (Barron’s) With gross
800
sales up 8.5% in the first half of 2014, the Swatch Group has reported the creation of more than 800 new jobs in the first six months of the year, of which over 460 are in Switzerland. watch aficionado | 13
SIGNALS
BACK to the Future
Status symbol “People will make a choice: What do I want to be seen as? Somebody with taste and also money? Or as someone who’s smart and connected with the world? I feel that for the younger generation, the Apple Watch is far more interesting and a greater status symbol than an old-world watch today”, says Piers Fawkes, Editor-in-chief of PSFK. (New York Times)
British revival?
Independent watchmaker Roger Smith on the prospects of domestic brands: “I do think that we could revive the British watchmaking industry, but the big problem is that we have lost the core knowledge and it would take years to get it back.” (The Times)
Tradition meets smart watch
South Korean startup company Kairos Watches has also entered the smart watch market with an innovative twist. While each watch has a traditional mechanical movement and dial, the semi-transparent crystal allows it to double as a smart watch by displaying various apps when selected.
Green Watch
Aspiring start-up watchmaker Hunter Green is targeting eco-lovers with its watches made entirely of components that are biodegradable. The green watch concept is made to be lead-free, and mercuryfree, with zero toxins. (www. huntergreen.la)
Fun
TAG Heuer is focusing on providing a“user fun” smart watch, rather than replicating the Apple Watch.“Communications is not the business of the Swiss watch industry. We don’t have the technology. And if you don’t have the technology, you have to buy it. If you have to buy it, you’re always late.”Jean-Claude Biver, director of timepieces, LVMH (Bloomberg)
Softening after-sales delays with “courtesy watches” The increasing demands on after-sales service have resulted in long delays for customers. In order to minimize the bad mood that accompanies this period, the watch industry is investigating new solutions, such as loaning replacement watches to customers. A good idea?
T
by Velibor Jakovleski
Executive brief:
• The increasing popularity of mechanical and Haute Horlogerie watches has created a service problem for the watch industry. • The introduction of “courtesy watches” has turned the problem into an opportunity. • However, customer satisfaction happens only when this system is carefully applied.
Much like owning a car, a mechanical watch requires regular service, whether it is a routine tune-up or a more complex repair. However, service is usually an afterthought when making a watch purchase. According to the Federation of the Swiss Watch Industry FH, between 2000 and 2013 the number of mechanical watches exported by Switzerland alone tripled to about 7.5 million. It is common understanding that about 10% of watches in circulation at any given time are being serviced. But with the number of watches in circulation increasing by the year, companies will eventually need to service more watches than are being produced in a given year. For example, the New York Times has reported that while Patek Phillippe produces about 50,000 watches annually, it has anywhere between 30,000 and 50,000 return for service each year. (…) Read the complete article on www.watch-aficionado.com
Bricks and Clicks: the new battle of the web Executive brief: The watch industry has followed the growing • trend in online retail, but with mixed results. • Independent start-up watch brands have benefited greatly in terms of online sales and brand building. • However, authorized luxury watch dealers have struggled to do so, and most of their business remains in physical stores.
Can the online market place replicate the success and personal touch of the traditional brick-and-mortar store experience? Actors of the watch industry have their say about this critical question and share their mixed experiences.
C
Read the complete article on www.watch-aficionado.com
SIHH 2015
many questions of luxury brands. • The lion’s share of searches related to Haute Horlogerie originated in China. • Luxury consumers are increasingly looking for pure players. It feels like there is a bit of a craftsmanship renaissance going on in the world of luxury. One reaching far beyond the post-crisis brand-driven marketing campaigns, one firmly led by a new group of sharper, savvier luxury consumers. Consumers have never asked so many questions of luxury brands, wanting to know what - more than ever - makes these ‘exceptional’ products so ‘exceptional’. And whilst such a hard line of questioning is undoubtedly leading to a drop in sales for some less fortunate brands, it’s the perfect time for the watch industry, particularly Haute Horlogerie, to shine.
WORLD WATCH REPORT Q3 2014 According to Digital Luxury Group’s WorldWatchReport, overall online interest in luxury watches advanced by 4% in Q3 2014, when compared to the same period in 2013. Definitively leading this increase was the Haute Horlogerie category, where interest surged by 16% year
Read the complete report on www.watch-aficionado.com
110% 100%
Top 10 fastest & slowest growing luxury watch brands In terms of evolutions: the brands that see the biggest rise in interest compared to a year ago are: Parmigiani, Blancpain and Van Cleef & Arpels.
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90% mar.14
Executive brief:
• Consumers have never asked so
Despite many of the financial barriers associated with becoming a serious collector of Haute Horlogerie, interest in the category and its ‘star’ brands continues to grow around the world at a rapid rate. Most interestingly, search volume increased at the fastest rate in Brazil in Q3 2014, advancing by 32% in just twelve months. The lion’s share of searches related to Haute Horlogerie originated in China, which commanded a whopping 45% of all such queries. Despite whispers of a sales slowdown on the Mainland, linked to nationwide anti graft measures, online consumer interest increased by 21% in Q3 2014 compared with Q3 2013. Searches for Haute Horlogerie brands originating in Hong Kong were down 23%, suggesting a potential cooling of one of the world’s most important markets. The decrease in search volume cannot be categorically linked with the Occupy Central protests, but as the movement has severely impacted luxury sales in the territory and restricted inbound tourist traffic, it is possible that it is influencing interest in high-end luxury goods. (…)
120%
jan. 14
GEOGRAPHICAL MARKETS
130%
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by Sophie Doran, Digital Luxury Group
“This period we’ve seen a worldwide growth of interest for the luxury watch segment of +12% (Y/Y). It is driven by more interest for Rolex coming from the United States and more interest for Omega from China.” David Sadigh, Digital Luxury Group
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on year. The 18 brands tracked in this particular category now capture 16% of global online searches for luxury watches. “We have witnessed an explosion in terms of interest and awareness on five continents,” Aurel Bacs recently confirmed to Luxury Society, discussing the overall health of the Haute Horlogerie sector. “Today, awareness of fine watches has grown beyond our wildest expectations.”
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While other segments record a decline, the online interest for brands active in Haute Horlogerie is surging all over the world, except in… Switzerland. China remains the top country on the list, with almost half of all searches originating from the country.
The Global Luxury Watch Index established by Digital Luxury Group (DLG) is based on 600,000 queries made every single day on search engines, for 62 luxury watch brands and over 1,500 models. It gives an indication of the desirability of the watch industry over time.
mai 13
Internet: new heights for Haute Horlogerie
Internet: Global Luxury Watch Index
+12% Y/Y Aug-Sept-Oct. 2014 vs. Aug-Sept-Oct. 2013
© DemandTracker™ data, Y/Y evolution, Aug-Sept-Oct 2014 vs same period in 2013, Digital Luxury Group
Global Parmigiani Blancpain Van Cleef & Arpels Greubel Forsey Vacheron Constantin Audemars Piguet A. Lange & Söhne De Bethune Roger Dubuis Patek Philippe
+75% +61% +54% +42% +29% +27% +26% +26% +26% +24%
Bremont Sinn Corum Longines Piaget Technomarine Chopard Dior Carl F Bucherer Jacob & co
+12% -4% -4% -5% -5% -7% -8% -8% -9% -10% -23%
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