EUROPA STAR

7

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watch aficionado

Hermès

time VEILED

LUXURY, ART & FASHION

www.watch-aficionado.com Watch business paper – USA & Canada – VOL.50 N°5 october / November 2014 with index of all in-depth articles published online

COVER STORY

Hermès, time VEILED With its Dressage L’Heure Masquée, the Parisian house continues its exploration of the imaginary.

With wit and elegance, it toys with the conventions of minutes and hours as few watchmakers have dared to do before.

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“In the train recently, another passenger came up to me and asked, curiously, why my watch had only one hand!” Surprise has been a perennial theme of La Montre Hermès. Philippe Delhotal, director of creation and development, could have wished for no better proof of its success than this random encounter ‘in the field’. It is true: the Dressage L’Heure Masquée, in its default state, shows only the minutes hand. A watch with no hours? What is that all about? But as its name suggests, this is just an illusion, a stratagem, all the better to reveal the time when the wearer deigns to press the push-button.

Like an eel lying in wait under its rock, the hours hand then darts out of its hiding place and delivers its message, before going back to ground behind the minutes hand once the button is released. The waters are muddied; ambiguity reigns once more. But do we really need to be told the hour at all? Is our biological clock not up to the task? Minutes, after all, have a much more important function than hours. To paraphrase an old proverb, ‘Look after the minutes, and the hours will take care of themselves.’ It is notions such as these that the latest creation of La Montre Hermès invites us to explore, with its trademark humour and elegance. It was unveiled at the last Baselworld and will be available from November in a limited edition: 500 pieces in rose gold and 1000 in steel.

The watch is both whimsical and egotistical it allows the wearer to decide when and with

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whom he will share his time; it swims against the tide of flashy complications, and subverts the secular code of the watch with two visible hands. Philippe Delhotal drew his inspiration for the Dressage L’Heure Masquée from that venerable contraption: the regulator. This ‘motherclock’, found in the watchmaking workshops of yesteryear, was what the artisans used to set all their timepieces. They had a particularly

To paraphrase an old proverb, ‘Look after the minutes, and the hours will take care of themselves.’ unusual feature: a very big minutes hand and a very small hours. “I built on this idea, reducing the size of the hours hand to the point where it disappeared behind the minutes hand, which then pulls the hours hand along in its wake,” explains Philippe Delhotal.

New episode of a watch saga This is by no means the first such creation from the Parisian firm, which has emerged out of its watchmaking centre in Biel since 1978.

L’Heure Masquée is the third opus in a saga entitled ‘Le Temps de l’imaginaire’ (Time to Dream), which began in 2009. Like an addictive American TV series, promising ever more thrilling episodes to come, La Montre Hermès brings out its haute horlogerie creations with metronomic regularity. Every two years we get to see another dreamlike, mischievous and thought-provoking instalment, which never fails to surprise and unbalance. The company patiently weaves a fabric on which to embroider new motifs.

The first episode in the saga, for those who may have missed it, was the Cape Cod Grandes Heures, which placed the usual numbers in unusual places. It provided a way of expressing time as we experience it: those agonisingly endless afternoons, and the frenzy of the early evening. Already, we see Hermès’ desire to break with convention. This critical success nevertheless failed to win over the public - a feeling with which many art house film directors are familiar. However, it was clear from its launch in 2011 that the sequel would be a blockbuster. As its name suggests, L’Arceau Le Temps Suspendu (Suspended Time) offered a way to step out of time for a minute, an hour or a day. But behind the frozen hands, the heart continued to beat; with a single press, time returned to its ‘normal’ position, and reality was restored. Another striking feature (of the 38 mm version, presented in 2013) was the small seconds hand counting down from 24 (a symbolic number for the institution headquartered at 24, Faubourg Saint-Honoré).

An impressive complication, concealed behind a simple appearance. The technical wizardry was accomplished by Jean-Marc Wiederrecht of Agenhor. His successful transformation of concept into a mechanical watch was rewarded by the Grand Prix d’Horlogerie de Genève (Men’s Watch Prize). After all the buzz (plus a ladies’ version that appeared in 2013), the bar had been set extremely high. So much for the bestseller, now for writer’s block... “Our concept had turned into something of a runaway train. It was exciting but frightening at the same time. We had no margin for error.

Bringing out a banal watch was not an option,” says Philippe Delhotal.

So in the end, they came up with a ‘mirror’ watch of Le Temps Suspendu, although that was not precisely the original intention. Where the 2011 vintage ‘loses’ information by stepping

I The H 1925 movement

Philippe Delhotal drew his inspiration for the Dressage L’Heure Masquée from the regulator, the ‘mother-clock’.

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outside of time, in the 2014 model the inverse logic applies. The wearer can choose at any time to ‘gain’ information, by calling up the real time. Put simply, Hermès created a watch that doesn’t tell the time. Deliberately. As with Le Temps Suspendu, the dial has another subtle touch: a second time zone. At rest, the aperture displays only the legend ‘GMT’, revealing the time in the chosen zone, and that of the current location, when the button is pressed.

U l’Arceau Le Temps Suspendu, the previous episode of Hermès watch saga.

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Hermès created a watch that doesn’t tell the time. Deliberately.

Poetic and challenging For Dressage L’Heure Masquée, Hermès called upon Vaucher Manufacture (in which it has a 25% share) to design the movement. It was Takahiro Hamaguchi, head of movement development for the Fleurier-based company, who had the honour, and the daunting task, of designing it. While Hermès’ creative ideas might be very poetic, they can be challenging to execute. How, in fact, do you hide the hours hand underneath the minutes hand, and make it reappear on demand? This was the brief handed to the Japanese-born watchmaker from Neuchâtel, who arrived in the Jura at the age of 19. He began with a blank page.

“We tried a dozen different approaches, but none of them worked out,” explains Takahiro Hamaguchi. The key to the mystery lay in separating the two functions: one mechanism

hides the hand, and another displays it. “After that, it was a logical progression.” There are two feeler-spindles on a single rack. The hours hand is driven by the rack, which continues to collect information from the hours cam, while the friction of the first feeler-spindle allows the hours hand to follow the minutes hand. When the button is depressed, the first feeler-spindle is released, and the second takes over and adjusts for the real hour on the hours cam.

It took around 36 months to develop the Dressage L’Heure Masquée, which is equipped with an H1925 movement. One interesting feature is the small number of components in the module (95, compared with 174 for Le Temps Suspendu). This is a way of reducing wear in a mechanism that relies on an unusual amount of button-pushing, not to trigger a complication but simply to display the correct time! “We tested its endurance with thousands of shocks,” says Takahiro Hamaguchi.

Another noteworthy feature is the slimness of the mechanism - 2.7 mm width is a remarkable achievement for a complication of this type.

“Today we have internal production capacity for more than 90% of components, if we include Vaucher.” Luc Perramond Internal capacities on the raise The Dressage L’Heure Masquée also embodies the efforts Hermès is making to integrate production. For reference, in 2012 the company bought dial manufacturer Natéber SA, adding case maker Joseph Erard SA in 2013.

Its workforce has doubled in size over the last five years, growing from fewer than 150 to 320 employees. In the basement in Biel, the leather workshops handle alligator, calf, ostrich and kid. The ground floor is set aside for hand stitching. Hermès began its foray into the watchmaking industry as a manufacturer of straps, in keeping with its origins as a harness maker. Little by little, it expanded into other areas of the business. Its rise has been slow but sure, earning it a credibility within the industry that is the envy of other luxury players.

“Today we have internal production capacity for more than 90% of components, if we include Vaucher,” notes CEO Luc Perramond.

“It’s just the hands we have to outsource.” The ultimate aim is to build a proper manufacture to produce movements and everything else, which will bring with it an increase in quality.

In the last five years alone, the average retail price has jumped from 2,000 to 4,000 euros.

Overall, the number of mechanical movements in the Hermès catalogue has doubled, along with the workforce; a third of its timepieces are now mechanical. Over the same period, the proportion of men’s watches has increased from 20% to 40% of the Hermès range.

Perceptions do not change overnight, however. In addition, because of the creative rhythm it has set itself, the brand finds itself constantly battling against the relatively short shelf-life of its unique concept watches in the hearts

and minds of the public. Love lasts three years, so they say... Which is why it has decided to satisfy its novelty-seeking audiences’ desires at regular intervals, with products that have a strong emotional component.

Modernisation is on the agenda, particularly at newcomers Natéber SA and Joseph Erard SA. This means more robotisation and revamping workflows for just-in-time delivery rather than organising by métier. “For a long time, case making has been something of a bottleneck for watchmaking. We are trying to bring down order lead times from nine months to just one.

This will give us greater flexibility: we will no longer be obliged to exhaust our stocks, and we will be able to adjust production immediately, according to fluctuations in demand,” says Luc Perramond.

A new strategy in the United States And, as many other brands have experienced, demand in 2014 is proving erratic. The main culprit seems to be the ‘correction’ in the Chinese market after years of spectacular growth, caused largely by restrictions on business gifts. “We are looking for new outlets. Japan is experiencing a resurgence: abenomics, coupled with the weakness of the yen, have given watch consumers greater confidence. Our sales there grew 30% last year. We are also looking at South-East Asia, from Singapore to Vietnam, and of course Europe. We remain the market leader in France, which is still our biggest market, but Italy is also growing, as are Switzerland and the United Kingdom.”

La Montre Hermès, whose mother company’s share battle with LVMH has just reached a conclusion, will also be turning its attention to

North America, where development is strong.

The company as a whole is doing very well there, and the watchmaking division intends to make the most of it. “The United States also has the most dynamic e-commerce platform. Sales from our online store are comparable to those of a decent-sized boutique. We made the most of Chinese euphoria; next stop America,” explains Luc Perramond. In order to accomplish this, La Montre Hermès will be relying on a finely-tuned catalogue, a “more feminine, more precious” strategy, “which will also include some exceptional pieces.”

With all its internal resources, Hermès is not short of ideas: the Cristalleries de Saint-Louis, for instance, were used to create the magnificent dial of the Arceau Millefiori, a series limited to 24 pieces in each model. And humour is never far away, as in the Médor watch, inspired by a dog collar. “For the Dressage L’Heure Masquée we are targeting a more mature audience,” notes Philippe Delhotal. “Some of our clients are also collectors. Therein lies the difficulty: how do we avoid disappointing collectors, while continuing to delight our regular customers? We are the House of Paradox!” p Discover more on Hermès at www.watch-aficionado.com

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editorial

WHICH WATCH in 2050?

www.watch-aficionado.com

uSerge Maillard Managing Editor Europa Star

The influx of smartwatches from Apple and other international electronics giants is forcing the watchmaking industry to undertake an uncomfortable but no doubt salutary exercise in perspective. By encroaching on what we have always regarded as ‘our’ turf, Silicon Valley is sowing discord in Watch Valley.

And in the background, a bigger question about the future of the watch looms: what will watches be like in the future, in 2050 and beyond? Will new communication technologies feature in their design? Will some sort of ‘hybridisation’ eventually take place? Or will luxury mechanical timepieces continue to coexist with cheaper ‘connected’ watches, as they do today? After all, streaming has not killed off cinema (although it has decimated video rental stores), any more than the internet signalled the demise of paper – as we at Europa Star well know!

In launching its watch, Apple barely attempted to hide its indifference to the venerable mechanical watchmaking industry.

According to the New York Times, its senior designer, Jonathan Ive, did not mince his words when speaking about Switzerland’s future as the centre of watchmaking. It appears that, through an ‘unfortunate’ combination of circumstances, many high-tech gurus have come to view the wrist as the new El Dorado for the latest wearable technology. But while arch-rival Samsung modestly christened its new wrist-mounted gadget the ‘Gear’, Apple bypassed the simple ‘wearable’ to glorify its offering with the title ‘Watch’. How presumptuous…!

The Californian giant clearly has one particular niche – that of the sub-500 franc fashion watch – in its sights. It would be foolish to meet disdain with denial. Swatch will

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Dressage L’Heure Masquée – A new chapter in Time to Dream by Hermès A Hermès Manufacture Time Veiled mechanism and H1925 mechanical self-winding movement affording a permanent opportunity to make the Great Escape and to seize only the moments that truly count at a deliberate press on the crown. Rose-gold cushion-shaped case. Hours, minutes, GMT and Time Veiled functions. Water-resistant to 30 metres. Matt havana alligator strap. www.hermes.com EDITORIAL Which Watch in 2050?

Signals Data & Market Cover Story Hermès, Time Veiled The Debate Watchmaking will Metamorphose Manufacture Métiers d’Art: has the Industry gone too far?

Gender Brands get in Touch with their Feminine Side World Watch Web Women’s Fashion Watches, a World of Opportunity Bespoke The Present and Future for Customised Timepieces CUSTOMERS Eleven James - Luxury isn’t just for owners anymore Accessories Should you offer more than just Watches?

Strategy Mid-Sized Groups Punch above their Weight Market Focus Russia: Sanctions and a New Wave of Consumers Letter From China Sino-Swiss Free Trade Agreement: Consequences for Hong Kong 33rd Hong Kong Watch & Clock Fair: The BaselWorld for Fashion Watches Smartwatches: Watchmaking Federation Presidents air their Views Service, Please!

Talking Service with Graff Retailer Profile A Look Inside the Newest M.A.D. Gallery in Taipei Lakin@Large What’s in a Name?

Spotlights Casio Edifice Orient

Read all articles on www.watch-aficionado.com

be bringing out its fitness watch next year; groups such as Festina have announced in our pages that they are developing smartwatch capabilities. Fossil is joining forces with Intel and Google. The next Baselworld will be a barometer. Behind the facade of studied insouciance, a flurry of initiatives are taking shape backstage. Some false starts and dead ends are inevitable but necessary. As the Swiss Centre for Electronics and Microtechnology recently noted, many technologies that facilitate connectivity were invented and patented in Switzerland. A little like quartz, back in the day... But let’s not reawaken those memories!

Over the centuries the watchmaking world has continually reinvented itself by absorbing new technologies and new materials, albeit unwillingly. It must not let itself down this time. Perhaps it has made the right choice by refusing to be rushed into anything, or at least by giving that appearance... These devices with their faintly gimmicky air have a short lifespan. Do we really want to be permanently connected, at the mercy of peremptory alerts from our wrists?

Given the short horizon of the smartwatch, what we really need – aside from the kneejerk reactions we can expect to see next spring – is a thorough and level-headed evaluation of the issues. The real question is this: will the quality watchmaking sector, the beating heart of ‘mechanical value’, which is not directly impacted by Apple today, dare one day to ally itself with the new technology for digital connectivity, to create more subtle and elegant functions than merely counting calories (which could be distracting during a business lunch...)? Some time ago now, Swatch Group decided to join forces with a prestigious industrial player to launch an innovative new product, the result of ‘thinking outside the box’. This diminutive newcomer successfully put the bigger boys on the back foot. You may remember it: they called it the ‘Smart’… p

SIGNALS

world watch web

Women’s fashion watches A world of opportunity There was once a time when ‘fashion’ was a dirty word in watchmaking.

When a watch could either be technical or beautiful, but never both.

Fashion watches served as the mechanical equivalent of the buxom blonde cliché; very pretty to look at with little going on upstairs.

DATA 2% “Today internet sales represent just 2% of our total sales. It is more about being involved in the process. I’m convinced that we should retain our mono-brand boutiques and our presence in multi-brand stores, but also in some countries it’s important to be on the internet.”

Daniel Riedo, CEO Jaeger-Lecoultre (Monochrome) The SloWand Open Source movements are starting to gain a foothold in watchmaking! www.europastar.biz/slow-watches www.europastar.biz/open-movement

11,000

According to Global Blue, a Chinese tourist spends an average of 11,000€ on luxury goods during an overseas trip.

Men or women?

“When I speak with friends at IWC they say that women want to buy men’s timepieces. They want the bigger sizes and they want the technology, because often women’s watches are only quartz.”

Sara Sandmeier, senior designer at Baume & Mercier (Forbes)

27%

In 2000, mechanical watches accounted for 8% of the watches leaving Switzerland; in 2013 they represented 27%.

Fast-forward to Baselworld 2014 and the opportunity on every CEO’s lips was the world of women’s complications. Fashion players such as Chanel, Dior, Hermès and Louis Vuitton – with but a relatively recent claim to watchmaking – were gaining technical ground on the historical houses of Geneva, offering products exclusively designed for their existing female clientele.

It has become very clear in recent years that wealthy independent women are ready to spend large sums on mechanical timepieces, but what is ultimately lacking in the marketplace is choice.

The most celebrated watchmakers in the world have historically focused 95% of their attention on the men’s market, as the majority of collectors have indeed been male.

When these brands did think about women, it had very little to do with what women want.

Instead of designing products for a female audience, brands simply shrunk watches designed for

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men and finished them in rose gold with some diamonds to the dial. Increasingly sophisticated, wealthy and independent female watch collectors are looking for much much more.

For fashion watch brands this marked a tipping point, where the underdog managed an advantage. Fuelled by an innate understanding of what wealthy women want, houses such as Dior and Chanel were able to devise complicated products just for women, bolstered by their expertise with fine jewellery, legitimized with the help of exclusive movements made by the storied horologers of Geneva. …Continued online Whichever way you look at it, before us all lies a world of opportunities for women’s watches. Discover the most promising brands within the feminine segment, in particular in the Chinese market at: www.watch-aficionado.com

20,600,000,000

The Swiss watchmaking industry reported that exports in 2013 represented a turnover of $23.3 billion. During the second half of 2013, Apple announced a net profit of $20.6 billion.

Contrary

“When mobile phones and devices came on the market, we were asked about their impact on our industry. The media were already anticipating the end of watches; however, it was just the contrary.”

Nick Hayek, Swatch Group Chief Executive (Bloomberg BusinessWeek)

44%

Some 44% of watch executives see smartwatches as the “next big thing” for the watch industry, according to Deloitte. “While relatively few view smartwatches as a threat, their introduction has been gaining momentum, leading a significant number of participants to start to take this emerging category more seriously.”

…Continued online Discover our new ‘Signals’ column including numbers, quotes and news reflecting the watchmaking industry’s state, plus the Global Luxury Watch Index and market results by sectors at: www.watch-aficionado.com

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GENDER

Brands get in touch with their feminine side A number of watchmaking houses have decided recently to invest in expanding their catalogue of women’s watches. It’s a strategic decision.

“These days, when we present our new men’s collections to retailers, some of them will give a little sigh and say, ‘don’t you have anything new for women?’” For Alain Zimmermann, managing director of Baume & Mercier, this little anecdote just about sums up the current state of the market: the watchmaking industry has set the dial too far over to the men’s side. “Over the last twenty years we’ve seen a strong movement towards masculine designs. In terms of innovation and product choice the watchmaking industry has tended to rather overlook women.”

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With his new ‘Promesse’ collection,A. Zimmermann is hoping to reverse this trend and redress the gender balance. And he believes he is not the only brand manager looking for a new direction. “I think we’re seeing a groundswell of renewed interest in ladies’ watches, as this year’s Baselworld showed. Women are the new big thing!”

“When we present our new men’s collections to retailers, some of them will give a little sigh and say, ‘don’t you have anything new for women?’”

Alain Zimmermann

T PROMESSE

by Baume & Mercier

Baume & Mercier’s own history is illustrative of the ‘masculinisation’ of watchmaking, an episode it now hopes to leave behind. In the past, parity between men’s and ladies’ watches was a given, but that was before the inexorable rise of the gents’ watch. “Because of our heritage many people still spontaneously think of Baume & Mercier as a women’s brand,” notes Sylvain Verdon, head of the Swiss market. The house’s history is marked by several iconic ladies’ models:

the ‘Marquise’ in 1946, the ‘Galaxie’ in 1972, the ‘Catwalk’ in 1997 and the ‘Linea’, which was relaunched in 2011 and, prior to the advent of ‘Promesse’, remained the latest emblematic iteration of Baume & Mercier’s feminine DNA.

‘Real’ women’s watches While welcoming the market’s endorsement of the ‘affordable luxury’ brand’s strategy, Sylvain Verdon stresses an important point: “The Promesse collection isn’t just a man’s watch that has been altered to fit women!” These days, watchmakers are obliged to satisfy an increasingly demanding clientèle, customers who may not be content with a watch designed originally for men, that has been adapted to make it more ‘ladylike’.

Drawing inspiration from its almost hundredyear history, the Promesse collection, which was launched at the beginning of September in fourteen models and two sizes (30 mm and 34 mm), features an oval bezel in a round case, with a drapé guilloché dial. There is also a space on the back of the watch for an engraved message: “More and more clients want to personalise the watches they give as gifts.”

The collection includes both automatic and quartz models. Alain Zimmerman points to a growing interest in automatic calibres: “In Asia in particular, there is strong demand for automatic movements. But at the same time - and this is very interesting - women are less reluctant to opt for quartz if the brand also offers automatic models.” For these reasons, Baume & Mercier decided to postpone the launch of the collection in order to be able to offer both quartz and automatic movements, thereby leaving nothing to chance. …Continued online Brands such as Christphe Claret, Revelation and Titoni unveil their new feminine collections at: www.watch-aficionado.com

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SPOTLIGHT

Casio EDIFICE Smartphone link makes managing worldtime 300 cities Casio introduces the new EDIFICE EQB-500 that uses Bluetooth to allow users to program the world time and more with their smart phones.

Smart watches are in the news today, as Apple readies its own version and other companies struggle to make their smart watches as full featured as possible.

Casio, with the new EDIFICE EQB-500, is going the other way, allowing an interface via Bluetooth with your smartphone, making setting and usage much, much easier.

The new EDIFICE EQB-500 has been specifically designed to make crossing time zones easier than ever before. World time watches are certainly very useful, but setting them accurately has always been a problem – cumbersome, difficult and often confusing. What world travelers need is a watch that syncs with the local time immediately, at the push of a button.

Well, the new Edifice timepiece and its Bluetooth interface with smartphones, has fulfilled this need. Managing world time is now as easy as pushing a Bluetooth button on the watch. The system covers 300 cities worldwide, offering an access to the local time even without a specific code.

Using the “Casio Watch+” App on the most popular smartphones, changing time settings for home or for the second time zone is quick and painless, as is setting alarms and saving stopwatch data. Wearers can also use the watch controls to check for new emails in whatever email account is registered in the application. And, the new Edifice has a “phone finder” feature, which helps to locate the smart phone when mislaid.

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And, to top it off, the EDIFICE EQB-500 is a real timepiece, not a blocky, black plastic thing that only is recognizable as a watch because it is strapped to the wrist.

Connecting Casio is no stranger to using Bluetooth, having integrated the interface in the G-Shock line in 2012, and it has also been used in the CASIO sports watch line of fitness watches. The EDIFICE EQB-500 has a Bluetooth button and with one push, the watch is connected with the smartphone and the time can be set for about 300 cities around the world. In addition, one push of a button switches the two displays, making the home time the larger or smaller display at will. Of course, the watch will automatically update twice a year when the time switches to or from daylight savings time.

System compatible with: iPhone 4s to latest – Samsung Galaxy S4/S5/Note3

Fully Functional The EDIFICE EQB-500 is also a full featured chronograph, one of watchmaking’s most useful complications. Using this new technology, the chronograph can be used to time people or objects over a fixed distance – all users have to do is enter the unit of distance on the smartphone (either miles or kilometers). In addition, the EQB 500 can log up to 100 stopwatch records.

The EDIFICE EQB-500 from Casio is a quantum leap forward for world time watches, making setting and managing time zones effortless. u

Speed and Intelligence

Telling the time more simply and reliably, anywhere in the world.

A new era in the evolution of multifunctional chronographs.

A fusion of dynamic styling with a sophisticated watch face.

Advanced technology to control a vast array of functions coupled with multiple hands for creativity of expression.

EDIFICE - Multifunctional chronographs evolving through the power of electronics. That evolution has now leaped ahead to a whole new level.

For the first time, Casio analog watches now support Bluetooth速 SMART, providing extensive linked functionality with smartphones.

You can access the correct time in major cities around the world with the single push of a button. The correct time precision of this watch, along with advanced technologies, has made this possible.

Using instructions from the smartphone, the correct time in any of over 300 cities worldwide can be displayed.

The superb quality and boldness of the all-metal design, and the essential quality of the watch, all embody advanced technology that ensures a high level of precision.

Together, these innovations take multifunctional chronographs into a whole new realm. EDIFICE EQB-500

Global Time Sync.

Uses Bluetooth速 communication to synchronize with the time information in your smartphone. Instantly accesses the time worldwide to display the correct time anywhere, anytime.

Automatic time adjustment Access your smartphone with a single push of a button.

Now you can receive the correct time anywhere and anytime. A single button push accesses your smartphone. Using the time information in the smartphone, the watch automatically adjusts the time.

It also supports automatic connection to your smartphone (up to once a day). No matter where you are in the world, it quickly receives the correct time for your location.

Dual Dial World Time for 300 cities Shows the time for two cities simultaneously.

The dual time feature simultaneously displays the time for any two of 300 cities all around the world.

You can check the Home Time (local time) and World Time using the hour and minute hands and the inset dial. And switching between the two time displays is simple, making for smooth and easy changes to time settings when you head overseas or return home.

Simple setting Quick access to the time in major cities around the world.

Simply select one of the 300 World Time cities from the world map in the smartphone app and the time for that city is displayed. You can also set functions such as alarms from your smartphone.

Content is sent instantly to the watch, making it easy to configure the settings.

300 World Time cities Alarm setting function

Sharp finishing

Boldly expressive index Highly dimensional shaping composed of straight edges was used to create a sharply defined index with dramatic edges. The result is a simply elegant and highly functional design.

Functionally elegant watch face design

The energy of motor racing at your fingertips

Strong and powerful watch dial A dial with a depth created by highly dimensional components such as the index, coupled with a functional design featuring advanced molding, shaping and vapor deposition technologies, has achieved a dynamic fusion. The result is a functionally beautiful highly dimensional face design.

Speedometer The layout features a mode dial combined with a speedometer at the 4 o’clock position. The speed calculated from the stopwatch measurement is displayed brilliantly using a design that evokes the speedometers in cars. In watch mode, it shows the weekday.

Direct operation

Bluetooth® button Fitted with a dedicated Bluetooth® connection button at the 8 o’clock position. One-push connection and smartphone operability have been achieved, while the Bluetooth® icon gives off the identity as a key icon.

Solar Powered Light into power Converts light from the sun and other sources into power to continuously drive its functions. Hands that are used to show many different kinds of information, and solar power that drives functions linked to smartphones are now a reality.

For more information, please visit www.edifice-watches.com/bs/

Bespoke

The Present and Future for Customised Timepieces Bespoke watch production is growing as more customers want something that no one else has. Some companies have been doing it their entire history, while others have started responding to this demand.

More and more luxury watch companies are making it possible for customers to have unique timepieces, made to their own specifications. At the most basic, customers can make alterations and modifications to existing watch collections to make them different. This personalization takes longer and costs more, but for many customers it’s worth the wait and the extra money.

Some companies have taken this a step further, by allowing customers to create their own bespoke timepieces from scratch, including the movement. The price is steep, but for some it is worth every penny to own a one-off timepiece.

Companies like Cartier, Vacheron Constantin and Patek Philippe, have been doing this since their inception. Perhaps the most famous bespoke timepiece in history, the Henry Graves Supercomplication by Patek Philippe, is up for auction in November with an estimate of $15 - $20 million.

Bespoke is relatively straightforward for shoes, clothes and other products that are already largely hand-made. The extra steps involve different materials, special touches, unique designs and made-to-measure fabrication.

Watches, however, are a different case altogether.

Mechanical watches are micro-machines that are designed to last virtually forever, so a great deal of testing goes into everything – the ruggedness of the watch as a whole, the water-, temperature- and shock-resistance of the case, the wear-resistance of the strap, the accuracy and precision of the movement and more.

Producing a completely bespoke watch is a

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I A close-up of Patek Philippe’s Henry Graves Supercomplication with the night sky of New York City ©Sotheby’s

U Atelier Cabinotiers: Vladimir

by Vacheron Constantin

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huge endeavour that is supremely expensive, as the entire cost of the research and development and testing has to be borne by each bespoke timepiece. “What makes it so difficult is that each time, we are trying to create a completely new, original watch, and this is very rarely done today,” says watchmaker Roger W. Smith, based on the Isle of Man. “We do one completely bespoke watch every two to three years, because of the complexity of it - it’s a massive undertaking, taking about three years from start to finish.”

About 15% of the Armand Nicolet turnover is in bespoke, focusing on refurbishing vintage movements and constructing a modern timepiece around them. “Watches are no longer devices that people buy to know the time - nowadays everyone owns a smart phone that is much more efficient when it comes to time keeping,” says Rolando Braga, president of Armand Nicolet. “Watches have now become personal

items that reflect the personality of the people wearing them. They tend to represent more and more each individual’s uniqueness and for this reason they can’t be produced in huge lots. They have to be special, just like a piece of jewellery.

We are an artisanal company that works with great passion aiming for uniqueness and rareness. If we were to compete with the mass production of the big brands, we would lose for sure but thanks to our niche market, our work is recognized and appreciated worldwide.” (…) …Continued online As luxury becomes more mainstream, the demand for bespoke services will continue to grow. Cartier, Vacheron Constantin, Bovet and Artya address the importance of customized timepieces at: www.watch-aficionado.com

customers

Eleven James – Luxury isn’t just for owners anymore Eleven James allows watch customers to “try before they buy” . The jury is still out as to whether this is good or bad for the watch industry.

The trend for everything, recently, has been toward accessibility. Experiences previously only available to VIPs are now sold to anyone who can put together the cash. Custom watches, typically the province of the richest, are now available via websites for as little as $150.

Now, in the USA, it’s possible to wear luxury watches without even buying them, as a member of Eleven James. Eleven James is a membership club that allows members to “test drive” watches, wearing them for a number of months, then switching them out for something else.

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Randy Brandoff, Founder and CEO of Eleven James, came by this idea honestly, as he was the first employee of Marquee Jets, a private jet club that allowed members to share the use of the planes, making private airplanes acRandy Brandoff

“I love watches and have a great collection but I have tended to gravitate to just a couple of brands,” he says.“I love Panerai, but I also love the fact that as an Eleven James Member I am going to wear something different, something I have never owned.

“I am also a part of a community of people that are passionate about watches,” he adds.“I am definitely more likely to buy a new timepiece in the future. My experience wearing Hublot and Glashütte Original watches as a member of Eleven James has made me a big admirer of both of those brands and I can definitely see buying one or both for my collection.”

cessible to many more people than before. He hopes he can repeat this success in watches.

“With the success of Marquee and Net jets, vacation clubs, car clubs, Beg Borrow Steal, Shared Art and yacht programmes, I came to realize that you could take any asset that was previously exclusively owned and make it available for shorter times,” Brandoff explains.

“Watches are reasonably expensive, they are good but not great assets, and the more you have the more they sit idle at home, since you can only wear one at a time. I asked myself why couldn’t I apply this model, an annual programme that was a club, to watches.”

Members of Eleven James can pick from three collections of timepieces, based on value (Aficionado, Connoisseur, and Virtuoso), and they then pick one of two frequencies (six two- month rotations or three two-month rotations). The price to belong to Eleven James ranges from $2,700 to $17,250 per year.

Members do not pick the watch they want to wear – Eleven James aims to know its mem-

bers so well to be able to match each person’s taste with the appropriate watch.

“When you become a member, we create your personal watch profile (by asking questions, the history of your collection and the ratings done in Eleven James),” Branoff explains.

“With all that information, we can confidently match you with a watch, and if we are wrong, we will switch it out. This keeps the element of surprise, like receiving a gift from a loved one. We catalogue the data of individual preferences, demographics and psychographics, and longer term we envision sharing that info on a macro level with the brands, to help inform their product development and distribution departments. We think that will help the industry and see that we are friends not foe.” (…) …Continued online Watch rental - a new trend with benefits?

Read our full article online at: www.watch-aficionado.com

Paul Wigdor of New Jersey, Eleven James’ Member watch aficionado | 13

STRATEGY

Mid-sized groups punch above their weight The few medium-sized groups that exist in the shadow of the watchmaking giants are looking to make their mark, albeit in very different market niches. A portrait of some of these discreet actors.

What do Lotus, Festina, Jaguar, Calypso, Candino, Perrelet and L.Leroy have in common? What about M-Watch, Mondaine, Luminox, Pierre Cardin, Givenchy, Esprit, Puma and Joop? H. Moser & Cie and Hautlence?

Anyone? Although they are active in extremely different spheres, these watchmaking companies are all linked, albeit loosely, with mid-sized groups determined to preserve their independence: Festina Group, Mondaine Watch Group and MELB Holding.

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Neither small individual companies, nor sprawling giants with billion-dollar turnovers, these groups lie somewhere in between. They share an ability to develop synergies between their brands when vertical integration becomes necessary, and they are ambitious enough not to shy away from meeting the big boys on their own turf.

These groups have a human dimension; they are often family-run, offering a different perspective of today’s watchmaking scene. They don’t often take the limelight, preferring to remain in the background, regularly and discreetly buying up new brands to build a portfolio that can grow exponentially. Here is a portrait of three of them.

MELB Holding, the high-end ‘white knight’ After taking over two brands with very different DNA, Hautlence and H. Moser & Cie, GeorgesHenri Meylan’s embryonic group is looking to its Asian distribution network to put them back on track.

“I stopped work five years ago. Retirement can be a difficult time...” Unlike some, GeorgesHenri Meylan, former CEO of Audemars Piguet, did not take up gardening or DIY. Watchmaking is a jealous mistress. So, in 2012 he created MELB Holding, a small family group, and set himself up as president and chief troubleshooter, rescuing brands in financial difficulties. Today he oversees the destinies of two superb houses with very distinct identities, both active in haute horlogerie: the rigorous Schaffhausen firm H. Moser & Cie, whose roots can be traced back to St Petersburg in 1828, and the Neuchâtel brand Hautlence, known for its bold design, which has just celebrated its 10th anniversary.

How did the holding company come about?“It was a combination of circumstances. My son Bertrand, who is a distributor in Hong Kong, started working with Hautlence. The company was in serious difficulties in 2012. Almost at the same

14 | watch aficionado

time, we bought H. Moser & Cie, debts and all, and the family grew. I told myself it was possible to meet the challenge. Both these brands are alive and kicking today, although they might not yet be in the peak of health,” explains Meylan.

MELB Holding employs more than 60 people: fifty or so at H. Moser & Cie (which is run by Edouard Meylan), another ten at Hautlence and five in the Hong Kong distribution operation.

Radical changes at Hautlence Both brands are gradually getting back on their feet. “It was a lot harder than we thought. With Hautlence, we had to restructure everything, from brand positioning to distribution,” says Meylan. The Neuchâtel brand, operating in the premium sector, was severely affected by the financial crisis. A strategic decision was taken to drastically reduce the price of its timepieces; some of its models are now available for around 20,000 francs.

“Initially we were very successful. Then, like many independent companies, we hit the ‘black’ years, from 2009 to 2012,” recalls Guillaume Tetu, cofounder and managing director of Hautlence.

“Our clientèle reverted to the safe bets, the classic choices. Our problem was that because of our initial success we were fully stocked just as

I Eric Cantona, Hautlence’s new ambassador

the crisis hit in 2008. That almost put us under.

The market can very quickly turn against you.”

Today, thanks to MELB Holding, the design enthusiast is hoping to relaunch the brand. (…) …Continued online Offering an ever-growing catalog of brands from various segments, MELB Holding as well as the Mondaine and Festina group explain their strategies and ambitions at: www.watch-aficionado.com

ACCESSORIES

Should you offer more than just watches?

In today’s changing retail landscape, watch retailers have to do just about anything they can to pull through the market. For some, that means offering other products beside watches. Here we speak to some of the world’s best retailers for their take on the pros and cons of selling other luxury products.

Here’s what they had to say.

Shonagh Massie, Marketing Director, Hamilton & Inches (Edinburgh, Scotland): “We are specialists in fine jewellery, silver and gifts along with watches and other timepieces.

Our watch brands have always remained one of the strongest areas of our business and we enjoy a good relationship with them and the profile that it provides. Fine jewellery is the other major area of our business and we have incredibly loyal customers who have used us as family jewellers for many years.

Purchasing jewellery tends to be based more on emotion and sentiment. The relationship you have with the purchaser needs to be developed.

Our sales team does not press our clients, the sale is made through spending time and developing a trust. With watches, although some sales are made in this way, generally the importance is knowledge, watch buyers are generally looking for the information that will make their particular watch stand out. A watch sale can be a very fast sale. Fine jewellery almost never is.

Our jewellery ranges are the most successful.

We carry only the finest gemstones that are all certified by the GIA. Our ethos has remained the same since our beginnings as a retail jeweller, to only sell the very highest quality.

We have a dedicated head of department in each of the areas of the business who will do the buying, however they almost never work exclusively. For any new product they will discuss the potential with their peers. Our company has the benefit of over 200 years of knowledge and experience on the sales floor, so nothing is

purchased without the input of the sales team.

We are always aware of the quality of a piece.

You can be certain of the quality of a watch as it is driven by the brand and the price point.

Jewellery, due to its endless variety of design and gemstones with their natural complexities, does not carry the same certainty. We are constantly vigilant of the pieces that we purchase and we never compromise on quality of a piece of jewellery, no matter how stunning.

The benefits of being a jeweller is that you are there for all of the special moments in someone’s life. There is nothing more rewarding than meeting someone who has purchased a special piece of jewellery from us many, many years ago and seeing how important it is to them. It is a privilege.”

“The consumer wants something fresh and individual in the modern world.”

Mark Gold, Mark Gold Jewellers (Durban, South Africa): “We have included many other luxury products in our stores over the years. The luxury buyer can only be fed so many watches from a single brand and personally I don’t believe in representing too many brands. An interesting product that we sold, largely because we assisted with the development, was the Espresso Veloce machine.

Very interesting and certainly a powerful reaction from the consumer. Products other than watches have the benefit of keeping clients interested in your store and offerings. They also have the benefit whereby the consumer talks about your store, effectively advertising for you without any output cost.

The Espresso Veloce machine was powerful in so far as it had a very powerful viral marketing effect

and also achieved sales. Another popular and interesting product that we stock is the MOKA by Giuliano Mazzuoli. This product along with his watches proved to be very individual. The majority of consumers, in my opinion, are tired of being bombarded with mainstream so called high-end watches. The consumer wants something fresh and individual in the modern world.

Retailers need to choose very carefully with their offerings so as to be in keeping with their particular store profile. If this is done correctly it certainly is worth offering alternative products in store. It’s no good everyone selling the same goods though as this only creates a situation where discounting can flourish therefore damaging profitability.

I would advise other retailers to choose products that will keep your customers excited and therefore returning to your business. This also has the natural effect of strengthening client/store relationships. Choose products that you are passionate about. When you have passion and excitement about the product it makes for a much easier sell and the customer then comes back repeatedly.

Choosing product that does not suit your store confuses customers as to what you really are as a brand. If you don’t know then how can the customer relate? The only other advice is to make sure you know enough about your new product and make sure you are able to have the best after-sales for your clients. A happy customer is a repeat customer. Adding new product keeps your store fresh as well as making your sales job exciting and fun as opposed to just an everyday job.” (…) …Continued online Chiara Pisa in Italy, Aderemi Ajidahun in Nigeria, Armen Darakjian in the United States and Alon Ben Joseph in the Netherlands talk about their sales experience with luxurious accessories at: www.watch-aficionado.com

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