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The Japanese icon celebrates its 35th anniversary and one hundred million watches sold Page 16

WATCH.AFICIONADO

A EUROPA STAR GROUP PUBLICATION

WATCH BUSINESS PAPER | USA VOL. 53 NO. 301 | CHAPTER 5/2017 | WWW.EUROPASTAR.COM

EDITORIAL

by

Serge Maillard

All rights reserved

The sale of a Paul Newman Daytona for 17 million dollars is just the tip of the iceberg. The vintage (and secondhand) market is stealing a march on the contemporary watch business. What we are now seeing in the watch market has already transformed the art market.

On the one hand, you have sales by the big auction houses, which are sustained by a variety of phenomena: genuine collectors, genuine investors… This has all conspired to generate a new kind of customer – more mature but equally wealthy – who is looking for that rare pearl of great price.

The vintage market is stealing a march on the contemporary watch business.

And on the other hand, person-toperson and agency-to-consumer sales are exploding on platforms such as Chrono24, eBay and Amazon.

While you’ll no doubt find it impossible to get rid of your iPhone 4 in a few years’ time, a 1970s watch in good condition offered for sale by some guy in Dallas, may well catch the eye of a budding young collector in London.

When it comes to watches, every Homo sapiens is faced with two questions (and most will spend very little time pondering them...). First: should I wear a watch? And second: should I get one from a local shop,

or should I order one (perhaps second-hand) online?

To be cynical, Swiss watchmakers have been honest to a fault. They have never subscribed to the builtin obsolescence adopted by Apple and Samsung, because back in the day that concept would have been unthinkable. High-quality watch movements were built to last a lifetime. Historically, that was the creed of the industry. The result is that that fifty-year-old construction of cogs and gears, if it has been correctly maintained, can still be passed down from father to son, as the adverts suggest – or from person to person online. All these sales completely bypass the brand whose name is on the dial.

E-commerce is fast becoming a fact of life, even where watches are concerned. Leading the charge are vintage watches, which younger generations are buying with increasing confidence, in terms of both authenticity and condition. There’s a whole new sector of the market, defined by the marriage of a new technology (the internet) with a very old one (mechanical watchmaking), which lies completely outside the purview of contemporary watch companies.

You may be feeling quite smug about your new iPhone X right now, but in ten years’ time we’ll all be laughing at them. But who will be laughing at your lovely El Primero? Certainly not Zenith... particularly if you sell it to someone who, if you hadn’t placed your online ad, might have made the effort to go and buy one from a brand boutique.

Some initiatives are beginning to see the light of day, although they are still few and far between. Vacheron Constantin is one of the few brands with its own vintage department, enabling it to set the terms of how its own back catalogue is marketed. Will others join the fray? It’s unclear. Second-hand watch sales are something of a digital jungle today, and it’s difficult to know where to start. More and more retailers, however, are beginning to offer secondhand watches, sometimes alongside contemporary collections. They’re hoping to get themselves a slice of the action.

Photography Laurent Baillet

Who are the brands’ main competitors? Themselves!

Far East: travel journal Reporting by Serge Maillard

What’s happening in the Far East? Europa Star spent a month on the ground in China and Japan, to build up a picture of the watchmaking landscape in what remains the biggest current and future market for the luxury watch industry. Everyone from subcontractors to vintage specialists shared their views on this transitional period that will be pivotal for the future of watchmaking. Whether we like it or not, there will be no new China to usher in another golden decade. Nevertheless, the “new China” of Xi Jinping is going full steam ahead. We identify the major trends of the moment, through the words of the people on the scene. (Read the report on page 3) ADVERTISER

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WATCH.AFICIONADO

A NEW WATCH MAGAZINE FOR THE USA

Europa Star launches a new watch business paper for the American market. Watch.Aficionado targets 10,000 points of sale in the USA with in-depth analyses and watch expertise.

XXL newspaper tabloid size: 290 x 380 mm

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Watch.Aficionado is published five times a year and circulated to 10,000 points of sale (jewelers) and aficionados on the American watch market.

•

The new 32-page publication in English, featuring articles by leading watch writers, has the same format as the successful business paper Europa Star Première of Switzerland.

•

Europa Star has been present in the American marketplace for more than 50 years with several titles dedicated to the watch and jewellery industries.

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The new publication, a compact local edition to complement the global 160-page Europa Star edition circulated worldwide, broadens Europa Star's reach in the USA.

WORLD

Global edition – Magazine

USA

SWITZERLAND

CHINA

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ABOUT EUROPA STAR Europa Star has been a leading watch magazine since 1927. Primarily aimed at watch professionals, it reaches 50,000 points of sale around the world, as well as a number of genuine watch aficionados. The 160-page Europa Star Global Edition in English, comprising two folios – Time.Business and Time.Keeper – is circulated five times a year in 170 countries. There are also three regional editions, for the primary watch markets of Switzerland (Europa Star Première, in French), the USA (Watch.Aficionado, in English) and China (Watches for China, in Chinese). The Europa Star web platform reaches more than 700,000 unique users per month, in English, French, Chinese, Russian and Spanish.

Far East: travel journal QUOTES

“Unlike in the Swiss valleys, in Japan there are very few independent subcontractors, people who can ‘feed’ the creative drives of craftsmen and enable them to translate their imagination into reality. The country has never experienced the Swiss ‘établissage’ system.”

“In Asia, we are currently seeing a transition in the market from contemporary watches to vintage.”

“Since the height of the 2008–2009 financial crisis, Solar Time, an assembler, has created no fewer than six new brands, for which it manages production, marketing and distribution.”

“Watch subcontractors’ workshops, part of a low-tech industry that has struggled over the last couple of years, have been pushed increasingly further from the centre of Shenzhen by the appetites of computer engineers and highly motivated real estate agents.”

(Jessie Kang, Sotheby’s Hong Kong)

“Grand Seiko’s entire philosophy is based on exceptional legibility, elegant design and high precision.”

(Shuji Takahashi, President of Seiko Holdings)

“Of the 200 Simplicity models made by Philippe Dufour, Japanese distributor Yoshi Isogai sold 127 of them!”

“The true giants of Chinese watchmaking have no name. They are the OEMs (Original Equipment Manufacturer): in other words, the generic watch factories that make items on behalf of brands from all over the world. But, at 4 dollars apiece, they are giants with feet of clay...”

“Reform in China is accelerating under the auspices of Xi Jinping, beginning with strengthening its position in world affairs. That was not a foregone conclusion. Previously, China has tended to be more inwardlooking, a little like Switzerland!”

(Jean-Jacques De Dardel, Switzerland’s Ambassador to China)

“My biggest fear for the future is that young people lose interest in mechanical watchmaking.”

(William Shum, Memorigin)

“Today, the model we follow is closer to that of Amazon than to a traditional watch manufacturer. Everything is coded, scanned and standardised.

Each component can be traced individually online by the client.

It’s much more closely managed.”

(Ben Djeghdir, Montrichard)

“Tomorrow, through customisation and online orders, people will buy watches before they have even been made.

There will therefore be a much greater alignment between supply and demand. For the last two years, the markets have been drowning in unsold inventory.”

(Vishal Tolani, Solar Time)

Laurent Baillet, photographer. Born in 1978, he lives and works in Paris and Berlin. The series “Mass Culture” was shot in several asian megacities. It questions the model of mass culture and its effect on the individuality of each of us. “Mass Culture” also asks what flows and what movements emerge of a lifestyle that tends to promote greater standardisation and globalisation. Laurent Baillet’s approach reminds us of what pop culture portrayed in the decades from 1950 to 1980, but transposed into the current globalised, more technological, and flashier age. Where Coca Cola and Hollywood share the stage with Apple and LVMH… His photographs reflect the urban and commercial architecture that is built around us; an arrogant landscape that considers itself the heart of the city and claims to replace all our desires. Laurent Baillet does not interpret this evolution; he experiences it with fascination, but not without ambivalence. His depictions question the real value of this age of mass culture and its effects on us, the consumers. By catching these streets, their symbols frozen in a temporal instant, the photographer is taking the measure of the place left to the individual by the system and in its excessive standardisation.

FAR EAST: TRAVEL JOURNAL

4 | WATCH.AFICIONADO

Chinese pride restored

Massive investment Let’s start with a few figures: of the 10 principal container ports in the world, seven today are in China.

On land, Xi Jinping’s government, which has been returned to power for five years, is preparing to invest up to 900 billion dollars in the countries crossed by the new ‘Silk Road’.

In the province around Beijing, a new scientific, technological and economic centre is emerging. The country’s richest province Guangdong, surrounding Hong Kong and Macao, has several cities which are enjoying keen growth. The population of this area is twice that of Tokyo and ten times that of San Francisco... This development is being aided first of all by massive investment in the infrastructure: 1,100 kilometres of railway line by 2020 to the north and 10 to 12 new high-speed rail links between the cities to the south.

In parallel to this, a clean-up is going on in Chinese conurbations in response to the deep discontent of a population exasperated with the suffocating emissions of CO2. And China is moving fast… into new energies, such as electric cars, of which it is the world’s largest producer today, while at the same time taking precautionary measures against real estate bubbles, an inevitable sideeffect of growth.

“Above all, China is looking to reinforce its position in world business. That wasn’t a given. It tended rather to focus on its own destiny – a bit like Switzerland!” explains JeanJacques de Dardel, the Swiss ambassador to China. “That’s resulting in greater multilateralism, a positive view of free trade and the fight against global warming and protectionism.” After a century of humiliation, Chinese pride is back.

What does that mean for the watchmaking industry?

In actual fact, the opportunities remain impressive. You don’t turn your back on China. Even if it is going through a ‘growth crisis’ which is driving reform, neither India nor Brazil will replace the Chinese middle class as champions of con-

sumerism. And unlike what we often read, underscores Jean-Jacques de Dardel, “the Chinese economy is in good shape and its growth is continuing better than anticipated. It will stabilise this year at 6.8%.

The IMF’s forecasts have been revised upwards and foreign investment is growing ... Today, with growth at 6.5%-7%, China adds the equivalent of 1.5 to twice all of Switzerland to global wealth every year!” The sound health of the Chinese economy in general is due chiefly to an improvement in the health of the Chinese industrial sector, the driving forces of which are electronics, metals, the automotive sector and machinery.

You don’t turn your back on China. Neither India nor Brazil will replace the Chinese middle class as champions of consumerism.

What about watchmaking? In terms of Swiss exports to China, chemicals and pharmaceuticals top the list – but watchmaking now stands second, having overtaken machine tools thanks to a very strong recovery by watch exports! “That is set to continue with the move upmarket of China, which is in need of increasingly sophisticated products and services,” Jean-Jacques de Dardel believes. “Retail sales grew more than 10% during the first six months of 2017.”

Jean-Daniel Pasche, president of the Federation of the Swiss Watch Industry, tones down this glowing tableau somewhat: “During the first six months, exports to China grew 21%, which together with the United Kingdom was the largest contributing factor to something of a recovery by the industry. But Hong Kong is stagnating at 0.5% and Singapore at 0.4%.” Moreover, the figures need to be taken with a pinch of salt, because they express growth on the basis of a very good year, 2016 having been very bad and industry having fallen back to its export levels of 2011.

But even so, the watch trade still seems to be shifting more and more from Hong Kong and abroad

What future for Hong Kong?

To get a better idea of the future of the watch sector in the former British colony – historically the number one market in the world for the Swiss watch industry – we met Francis Gouten, the former CEO of Richemont Asia-Pacific, who has lived in Hong Kong since 1980.

“Hong Kong had become the hen laying the golden eggs, taking advantage of the boom and the huge influx of capital and Chinese visitors, with retailers like Chow Tai Fook, which today owns 2,000 boutiques!

The brands also seized the opportunity, but opened too many outlets,

All rights reserved

To understand the China-related upheaval that is affecting the watchmaking microcosm, we need to step backwards a pace to grasp the depth of the reforms being undertaken in that country. One notable effect is a wave of patriotism that is now influencing buying behaviour.

to mainland China... The Chinese watch industry itself is benefiting, as its representative enthusiastically underscored when we met him at Hong Kong’s Watch and Clock fair in September (read more about the upmarket move of the Chinese players on p. 9). “Profits and watch quality are improving. Last year, more than 300 million watches were exported, a rise of 11.78%. The main challenge lies in persuading people to wear Chinese watches!”

Francis Gouten

including in mainland China. They rushed into the breach without a thought for when it was going to stop. Xi Jinping has pulled the plug on corruption. All that began with the new social media: we saw photos with luxury bags and watches at the Communist Party’s annual congress…” Gone are the days when you might find the keys to a Mercedes in a traditional moon cake, a gift from some big shot...

At the moment, a restructuration of the distribution network is taking place in Hong Kong. When they’re not closing outlets, giants like Chow Tai Fook or Emperor are tending to place greater emphasis on jewellery. “Jewellery is the new lucrative market, because there’s a new class of working women, who aren’t married and are buying for themselves,” points out Francis Gouten.

At the same time, Chinese buyers have matured, the specialist goes on.

“It’s turning into a market like any other, and watchmakers have to accept that! Today, wealthy Chinese, but also the middle classes, are spending more and more money on ‘experiences’, just like in the western world. Before, the prime reason for travelling was to buy; now, it’s to discover other cultures.”

But can Hong Kong continue to be the main market for Asia where watches are concerned? Yes, Francis Gouten replies without hesitation.

“China needs Hong Kong: even if the political reins are being tightened, Shanghai isn’t going to replace it as a hub of haute horlogerie. People have kept the habit of travelling to buy luxury products.

Hong Kong isn’t independent, but

it’s still got a fine future ahead of it.”

As for Enders Lam, the president of the Hong Kong Watch Manufacturers Association, he sees the city’s future in increased sales to the local population. “We’re still a huge producer and consumer of watches, despite the economic instability. It’s also a question of investing in new forms of production, such as smart watches, and being more competitive.”

His colleague Harold Sun confirms that the ‘golden decade’ from 2004 to 2014 when visas from China were abolished is now over, a result of political tension between Hong Kong and Beijing, the anti-corruption campaign and the currency rate.

But he is noticing a slight upturn in

FAR EAST: TRAVEL JOURNAL

Photography Laurent Baillet

WATCH.AFICIONADO | 5

the market, now that relations with China are improving and the Hong Kong dollar has fallen: “The retail trade is stabilising and inventories are falling. The Hong Kong retailers are doing more to attract a local customer base and establish partnerships with Chinese dealers.”

A trip to the fair – in Hong Kong The market evolutions set out in this feature were blatantly evident at the last edition of the Hong Kong Watch & Clock Fair in September: local suppliers presenting their own brands, increased presence of players in the new smart technol-

ogies, doubting retailers, confident mainland Chinese watchmakers…

But despite that, some Swiss brands too! Most of them were grouped together in the SIWP pavilion.

Anonimo, was one example, more upmarket than the average exhibitor at this fair, but hoping to tap into the Chinese market and Hong Kong before the end of the year – and receiving interesting visits from potential agents in Russia and Australia!

As for Adriatica, it has been attending the fair for more than nine years: “You have to be present over the long term to succeed. But China is a still a complex market for doing business. The principal objective is still to develop distri-

Changing buying behaviours – that’s the challenge awaiting all watchmakers, whatever their price range…

bution in Asia, but we also sell directly at this fair. And we take the opportunity to meet our suppliers.” On the final day of the trade show, direct sales were booming, including on the stand opposite, at Mathey-Tissot. “Our key market remains the Middle East. Its rep-

resentatives come to Baselworld, but also to Hong Kong. For example, last year we made inroads into Oman thanks to this fair. What we’re noticing this year is that customers are not ordering lower quantities, but cheaper watches. At the moment we’re in discussions about openings in Vietnam, China, Indonesia... They just have to be nailed yet.”

With an output of 50 watches a year, WatchE is staking everything on direct sales, while at the same time looking for a local agent in Hong Kong: “The Japanese are possibly more in my line because they’re more mature where watches are concerned than the Chinese!” The last word goes to Amarildo Pilo of

the eponymous brand, who brought these brands together in the SIWP: “For over ten years my priority has been mainland China, where I post 60% of my sales today. My Chinese partners come to see me at the fair, but I also meet people from other markets, such as India, Japan, South Korea, Turkey and Russia. When you’re grouped together in a joint Swiss pavilion like here, you attract three times more visitors than if you exhibit alone.”

Finding a new balance between a confident mainland China and a doubting city of Hong Kong in the face of changing buying behaviours – that’s the challenge awaiting all watchmakers, whatever their price range…

FAR EAST: TRAVEL JOURNAL

6 | WATCH.AFICIONADO

Shenzhen: major changes in the world’s “watchmaking factory” It is next to Hong Kong, in Shenzhen, that we traditionally find producers of a very large proportion of the watches and components used in world watchmaking. But major changes are underway: the watch industry offers less added value than other activities and is being pushed back further; assemblers, lacking orders, merge or close ... or launch their own brands! In the background, the entire logistics chain must change. Visit and analysis.

The “gentrification” of Shenzhen An airy and green city, abounding with electric bikes and which even has a small hipster neighbourhoud and a shopping centre inspired by the marine world. Copenhagen? No, Shenzhen! The link is a little artificial, but “gentrification” is well underway in this “factory of the world” city of 12 million inhabitants, in the immediate vicinity of Hong Kong, in the heart of this famous economic zone of the Delta of the “river of pearls”, a megalopolis of 66 million inhabitants.

Already, the textile industry has had to leave the workshops of the metropolis to relocate to countries with even cheaper labour, especially Vietnam, or other provinces of China. Two sectors dominate everything, now: high-tech, with the emblematic Apple installing a new R&D centre. And real estate, of course, with prices that tend to climb almost as fast as Hong Kong, the second most expensive city in the world. Not to mention the constant importance of finance.

Traditionally, watch assemblers are headquartered in Hong Kong and their factories across the border in Shenzhen. But the workshops of watchmaking subcontractors, this low-tech industry in a downturn for the last two years, are pushed ever further from the centre, in the face of the appetite of computer engineers and very dynamic real estate developers. “We will have to move in a few months, but we will take the opportunity to enlarge our production area by three times”, explains Rémi Chabrat, founder of assembler Montrichard, who works for Timex but also TW Steel.

The same goes for Vishal Tolani, boss of the Solar Time Manufacturing Group: “Shenzhen is becoming the global hub of the Internet of Things, a hub for talented young engineers, which are very high added value industries. Furthermore, you can earn in real estate ten times what you do

in watchmaking in Shenzhen if you sell your industrial site to turn it into a residential complex.”

“Shenzhen is becoming ever more expensive,” says Ming Hung, of the Team Gain assembler. “Some producers are moving to Dongguan or Huizhou (8 and 4 million people, respectively). Sometimes the authorities expel you from Shenzhen because they need space for oth-

Ming Hung, Team Gain

er activities with higher added value or for residential areas, especially with the extension of the metro line! In a few months, our factory will find itself connected to a new metro line and I’m afraid they will be forcing us to leave.” In the assembler’s opinion, Shenzhen is now trying to become a new Hong Kong, that is, to get rid of factories and focus on services.

As a result, watchmaking is moving further away from Shenzhen and is no longer a government priority in the face of these higher value-added industries. In addition, the market is less buoyant. So, what to do?

Concentrations and closures Impossible for now to move to other provinces or other countries, because it is around Shenzhen that lies the entire watchmaking ecosystem, without which the assem-

blers would be at a loss. “We have more than 3,000 suppliers in the region!”, says Ming Hung of Team Gain, “and our main customer has a local subsidiary in Shenzhen.”

Head of operations at Montrichard in Shenzhen, Ben Djeghdir explains that all subcontractors are within a 50-kilometre radius. “We have to stay close to them because we have to have strict quality control over them, and it is here that we find people who are already qualified and have already worked in the watchmaking assembly.”

The manager continues: “Shenzhen has developed well in the assembly of watches but it remains very manual. There is very little automation and workforce skills remain important. Swiss watchmaking is automated for cost reasons as the labour is very expensive, here it will not be changing.”

Since it is not really possible to lower the cost of labour again to offset the downturn in orders, we are witnessing a phenomenon of concentration and mergers in the outsourcing sector. Some big assemblers have also lost their license: this is the case of the one that produced Puma, Esprit and Givenchy watches. “The problem is that a lot of subcontractors have seen the market change but did not react, and brands that have withdrawn their licenses are no better today,” said Ben Djeghdir.

For his part, Ming Hung feels “lucky” to be able to work at 90% for a big Japanese brand, which continues to do well. “The market is changing a lot and today many of our customers are in trouble: one of them who was ordering two million watches five years ago produces only 800,000 today. We find fewer customers and those we have order less.”

Here, everything is still assembled by hand. “In aggregate, we produce 5.5 million watches per year, most of them being entry-level plastic LCD and battery watches. But we also have American and Swiss customers and we also produce analogue watches with quartz movements. We cannot automate the assembly because the references are too numerous, it would not make sense from an economic point of view.”

Alexander Meerovitsch, the founder of the subcontractor Optimo Group, has been based in Hong Kong for 22 years. “American fashion groups have teamed up with subcontractors like us, they entrusted us with production to focus on marketing and distribution. There was a golden age for outsourcing here, which everyone benefited from. But now everything has changed, and you have to revise your way of thinking.”

With the crisis, some subcontractors are abandoning watchmaking

or diversifying. “For example, those who made watch glasses now produce for smartphone brands,” says Vishal Tolani of Solar Time, “and I, personally, do not only hire people from the watchmaking industry. but more and more engineers from the high-tech world.”

Other assemblers made a different choice: they decided to launch themselves!

When the subcontractors launch their own brand Beyond the connected watch and the declining appetite for watches through the world, a new generation of brands has upset the field of the entry-level watch, with repercussions felt as far away as Shenzhen, at the assemblers, or Dallas, at the headquarters of a world-leading fashion watch company like the Fossil Group.

Almost every day, new brands are launched on crowdfunding platforms like Kickstarter. And these are not so much the fruits of watch geeks as specialists from the digital world. Almost all knock on the door of Shenzhen’s main assemblers. “We are constantly solicited and are taking in new brands, while selecting them very carefully,” says Rémi Chabrat of Montrichard.

Almost every day, new brands are launched on crowdfunding platforms like Kickstarter.

These brands target a new digital native clientele, with often a classic or vintage design, in line with successful brands such as Cluse or Daniel Wellington. Their goal: to devote maximum resources to digital communication, to create a community of online buyers. The quality of the product does not come first in the minds of these entrepreneurs, who are often extremely young.

Their appearance must be impeccable, however, and their promotion extremely neat. The priority is perceived value!

“Today, the biggest change is the migration to digital and social networks,” Vishal Tolani observes.

“New brands are asking us to take care of the production from A to Z while they focus only on digital marketing. We have entered the

age of disruption and everything is changing very quickly, and while we have had a good time since 2001, we have made the mistake of not diversifying ourselves enough and in the end depending too heavily on some customers as subcontractors.”

Should we accept these newcomers – at the risk of accentuating an addiction to start-up, which are even more fragile than the larger fashion groups – our traditional customers – which are themselves in difficulty? And why place our entire production capacity at the disposal of actors with limited means, which they will invest first and foremost in their own digital marketing?

A growing number of subcontracting players, in Hong Kong and Shenzhen, intend to mitigate this dependence on players in financial difficulty or with limited means. How? By putting their production capacities at the service of... their own brands! Time for income diversification.

Since the turn of the financial crisis of 2008-2009, Solar Time has created no fewer than six brands of its own, for which it manages production, marketing and distribution. “Today, we produce between 1.2 and 1.5 million watches a year, 60% for third parties and 40% for our own brands, explains Vishal Tolani. This has required developing different skills in marketing, photography, etc. It’s not something ‘natural’ in a region that has always focused more on production.”

The team is targeting several niche “tribes” with its brands, positioned between $100 and $800: for example, Avi-8 is for aviation enthusiasts; McCabe is for coffee lovers; Dufa, an old German brand, was resurrected with a Bauhaus design...

“This is a brand of German origin driven by a watch company based in Hong Kong with an Indian at its head! Globalisation… but the watch industry is still wary of that.”

For its part, Optimo Group has just launched Perry Ellis, in collaboration with the American fashion brand of the same name, with a price positioning of 150 dollars. “As outsourcing is declining and margins have decreased in this business, we are in a diversification effort with this new challenge and we will also soon launch our own Swiss brand, called Nove,” explains his boss Alexander Meerovitsch.

New infrastructures must be developed, and it is for him to find the right formula on two “O to O” axes: online to offline and offline to online. Present at the Hong Kong Watch Trade Show in September, the new brand is being distributed in China, South Korea, Japan, Southeast Asia, South Africa, Egypt and India ... and of course online.

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WATCH.AFICIONADO | 7

“Now we have to learn a new business around marketing and not just production,” admits Alexander Meerovitsch. There are a lot of fashion and ready-to-wear actors who make watches but we think of ourselves first as a watch company.”

Nevertheless, the change will not happen overnight and outsourcing will remain a key activity in the Shenzhen area. So, how to improve processes?

McCabe

Rethinking the supply chain Montrichard also launched their own brand, called Grayton, but primarily as a showcase for new capabilities and a new way of thinking about the production chain. This requires a much stronger and instant match between brand orders and assembly capabilities. The objective: to avoid excessive and unsold stocks ... and replace inventories worth $10 million with stocks worth $800,000. And at the same time, to avoid the bottleneck of insufficient liquidity.

In the case of Montrichard, this involves the development of dedicated watchmaking management software called FINS (Flexible Industry Solutions) while many brands use big standardised software such as SAP. The management software was developed in a Montrichard computer centre in the Philippines, from where the firm also offers marketing services such as blog tracking, website creation and content management.

In appearance, the Montrichard workshop is no different from any other. It is on the fulfilment of the orders that everything hinges: “We want to match supply and demand: better management of cash and inventory through better predictability of orders.”

Ben Djeghdir continues: “How do you solve the problems of a watch brand in terms of financial flows?

You crush stocks! We improve cash flow and we increase sales by following the trends by the minute.

We went from a 20 million turnover and 6 million in stocks to 21 million turnover and one million stock.”

Other industries are much more advanced from the point of view of digitising manufacturing orders. “For example, you can easily customise your Converse sneakers on the Nike site, or Zara, H&M and Uniqlo, it’s both very fluid and simple.”

“Today, we are pursuing a model closer to that of Amazon than that of a traditional watch factory.

Everything is coded, scanned and standardised, and each component can be tracked individually online by the customer. This is a system that is constantly being developed and offers detailed reporting such as the performance of each model by colour or by country. The goal is to customise the production to be as close as possible to the market.”

“We already have access to the stocks of our suppliers, we are just assem-

bling so we can make very limited productions. We standardise the components to better manage them and to achieve a better ‘time to market’. Our customers are watch brands that can cope with year-old sell-out and inventory problems, we ‘blow up’ their component models and trace how many cases are available from our suppliers. The goal is to have a faster and more personalised process, and work on a just-in-time basis, with good database and inventory management, just like in the automotive industry.”

“The goal is to change the dynamics of an inventory based sales process to a demand driven model.”

Tobias Reiss-Schmidt, President & CEO of Timex Group.

The first historical customer of this system was Disney. Montrichard has also just announced a partnership with the American giant Timex for the implementation of the FINS software, with the aim of drastically accelerating their time-to-market. “The goal is to change the dynamics of an inventory based sales process to a demand driven model,” says Tobias Reiss-Schmidt, President & CEO of Timex Group.

“We are very familiar with the number of components we have in stock and customers can know in real time the quantity available and the order lead time,” says Jérôme Sollier, director of the Montrichard plant in Shenzhen. Chinese suppliers have remained in a mentality where data management is not taken into account. They remain simple assemblers.”

But today, watchmaking meets computers. “It’s different from automation: here we’re talking about better logistics management. Brands like Daniel Wellington or Cluse have their assemblers in Shenzhen but they have to pay them 30% in advance. This can create liquidity bottlenecks when you end up with excessive inventory. The bottom line is that today, brands pay their suppliers and assemblers at order time.

We aim to make them pay for the watch only when it has already been sold, which is a big difference that responds to the challenge of cash and inventory.”

According to Solar Time’s Vishal Tolani, “The watch production process is being reversed: until now, the brand has been planning with its retailers and distributors the volume of production and geographical distribution of the collections.”

Tomorrow, via personalisation and orders on the internet, people will buy the watch before it is produced, so there will be a much better match between supply and demand, whereas markets have been crumbling under unsold stocks for two years.

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8 | WATCH.AFICIONADO

Who are the real giants of the Chinese watchmaking industry?

According to the figures of the Federation of the Swiss Watch Industry, mainland China exported more than 652 million wristwatches in 2016! It is by far the world’s largest producer.

The Chinese Horologe Association speaks officially of 253 manufactures, which means that each company produces an average 2.5 million items! When you know that Switzerland ‘only’ exported 25.4 million watches, it makes you curious to find out more about the mysterious giants of the Chinese watchmaking industry.

By Jean-Luc Adam, shenzhen

With these figures in mind, we tried to track down these ‘big players’ at the Shenzhen Watch and Clock Fair in late June. But the known and commonly marketed Chinese brands boil down to Sea-Gull, Starking, Tian Wang, Rarone, Fiyta (pronounced ‘Fee-ya-ta’), Ossine, Peacock, Golgen, Casiden, Poscher, Rosdn, Bowdor, Runosd and Geya, not forgetting Rossini, Ebohr and, one of the oldest (1958), the Beijing Watch Factory.

Include digital, sports and smart watches and you can add another twenty or so brands.

So how many watches are produced all told? By addressing the Chinese Horologe Association, I thought to bag the figures in a ten-minute interview. In fact, it took four days of negotiation with the press service just to get an interview with one of its members. Anyone belonging to the ’Party’ is apparently not authorised to make statements to the media, and the others were ostensibly booked up.

What I thought would be a simple task was beginning to look like mission impossible. “In China, the figures are variable to allow various interpretations,” one member of the

Canton (Guangzhou) horological association explains to me with absolute earnestness, also incapable of citing a single production, sales or export figure. As for the brand CEOs, they can announce any volume they like. At our level, we have not the slightest means of verification.

The real giant identified!

The prices of the brands cited above range from around one hundred yuan (15 US$) for a simple quartz watch to more than 100,000 yuan (15,000 US$) for a tourbillon. But the average export price is just 4 dollars apiece!

This being the case, it’s easy to see why the real giants of the Chinese watch industry are nameless: they’re referred to as OEMs (Original Equipment Manufacturers) – in other words, they are factories producing generic watches on behalf of brands scattered all over the world.

But at 4 dollars apiece, these are giants with feet of clay…

That, in any case, is the view of the Horologe Association, which, at the forum opening the 28th Watch & Clock Fair in Shenzhen, welcomes the ‘Made in China 2025’ plan launched in 2015 by the central government. This represents a

new phase for the industry: over ten years and in ten sectors of activity, OEM is to be transformed into ‘made in China’ first and foremost by raising quality. But a word of caution – the watchmaking industry is not one of the sectors concerned. But what does it matter; the invited media are satisfied and give a hearty round of applause.

For the umpteenth time, I ask the press service to organise an inter-

view with someone in charge, but this time I decide to speak Chinese: “Put yourself in my place, imagine a Chinese journalist travelling 10,000 km to cover Baselworld and not getting a single interview!” Intrigued, Ms Yang Jingwen, an eminent figure in the Chinese Horologe Association since 1999, comes out of her office, her eyes wide with amazement: “But he can speak Chinese! I’ll find you an interlocutor.” Open sesame …

“One billion watches produced in China”

Who are the largest producers in terms of volume?

Hong Kong exported 241 million watches in 2016, again according to the Federation of the Swiss Watch Industry. Admit it – they’re actually made in China, aren’t they?

Shunhua Zhu: It’s difficult to say, because the companies that produce the most are OEM producers, sometimes exporting up to 10 million watches at 2 or 3 dollars each for the African or South American market.

Yes, 99.9% of them! They are even assembled in China. That’s because all the Hong Kong brands have relocated to mainland China. Only the brand headquarters have remained in Hong Kong.

So it’s true to state that the giants of the Chinese watch industry are OEM producers?

So if you add 241 million watches from Hong Kong and the 652 million exported watches, and to that add the Chinese domestic market, how many watches did China produce altogether in 2016?

Interview by Jean-Luc Adam

The very large majority.

Can you class the brands in terms of volume?

Impressive! But while we’re on the subject, the ‘Swissness’ law states that to be ‘Swiss made’ at least 60% of the value of a watch has to be Swiss; so what are the criteria for the ‘made in China’ and ‘made in Hong Kong’ labels?

Fiyta, Rossini and Tian Wan produce just over one million items a year. SeaGull and Ebohr produced 800,000 watches, Starking, Geya and Poscher 600,000 watches each. As for the Beijing Watch Factory (see interview on page 9), which targets the medium to high end, it posts higher turnover than those brands, even though it only sells around 100,000 watches.

One billion watches!

In China, it’s very simple: if a watch is assembled in the country, it is ‘made in China’. In Hong Kong, the movement determines the nationality of a watch. If it contains a Japanese movement, it’s made in Japan; if it has a Chinese movement, it’s made in China.

Let’s come back to the Chinese brands, in particular the high-end segment which posted growth of 10.9% last year! With announced profits of 46 million yuan (6.9 million US$), volumes are apparently low…

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My interlocutor is the honourable Mr Shunhua Zhu (朱舜华), co-founder of the Shenzhen Watch & Clock Fair and a member of the Horologe Association since 1988.

I can’t give you a ranking there because there are several brands (Beijing, Sea-Gull, Ebohr) producing very small volumes at the high end of the market. Those watches are tourbillon or art watches that help them create a brand image.

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WATCH.AFICIONADO | 9

The challenge: how to earn your watchmaking credentials Faced with the difficulties of the Swiss luxury manufacturers and their high prices, and encouraged by the new Chinese patriotism, some local companies are setting out to reconquer home territory, in mainland China as well as in Hong Kong.

There has been much talk in Switzerland about the acquisition of Eterna and Corum by the Chinese giant Citychamp. But much less about the efforts made at home to raise the standard of Chinese watchmaking while trying to beat the Swiss at least in price, if not in quality. Some examples.

CHINA

Beijing Watch Factory and Fiyta join forces The “Beijing” and Fiyta signed a partnership agreement in October 2016 that could spawn the very best of Chinese watchmaking.

An interview with the new director of the Beijing Watch Factory, Mr. ChuangYue Xu (徐创越).

Interview by Jean-Luc Adam

Fiyta is the internationally bestknown Chinese watch brand; it has been the official timekeeper of the Chinese Space Agency since 2003 and an exhibitor in the prestigious Hall 1 at Baselworld since 2010. It is also a leader in terms of sales volumes and one of the most avantgarde brands in terms of design.

The only downside is that it has always contented itself with foreign calibres.

In complete contrast, the venerable Beijing Watch Factory (see AugustSeptember 2011 issue of Europa Star)

CHINA

Rossini and Ebohr standing strong Based in Zhuhai, just next to Hong Kong, Rossini was founded in 1987 and employs a workforce of around 800 people. “Our average prices range from 1,000 to 3,000 RMB and we have around a thousand references in two main series, Sport and Business,” explains Sales manager Bruce Cho. Its sister company, Ebohr, is positioned slightly lower down the range and is also owned by Citychamp.

“Most of our production is automatic and we sell our watches in China, but also in the UK, Singapore and

is Chinese to the tips of its second hands: all its mechanical and automatic movements and grand complications are made entirely in-house!

What is the advantage for the Beijing Watch Factory of this partnership with Fiyta?

ChuangYue Xu: In the first place, the ‘Beijing’ benefits from Fiyta’s tentacular distribution network (editor’s note: the Harmony distribution network). Secondly, the marketing, and above all the design, will be done at Fiyta from now on. That means the ‘Beijing’ can concentrate on its core business: manufacturing movements. Even our enamelled or embroidered dials are made externally, but by artists in the city of Beijing.

On our visit in 2011, the hands and cases were also made in-house, isn’t that the case anymore?

No! For questions of both cost and quality. The cases are machined in the southern province of Guangdong, by a quality supplier.

Cambodia, as well as in Thailand,” Bruce Cho goes on. “We have around 10,000 outlets all over China! We’ve grown and are continuing to grow, even if growth has slowed down recently. At the moment we’re focusing especially on South Asia, on the new generations of business men and women.”

The advantages that the brand is out to promote are sound design and quality at an affordable price. But the brand is also counting on higher-range models, including a tourbillon at 15,000 RMB. “For the moment, our movements are supplied by Citizen and Seiko.

But we’re planning to launch our own movement in the near future!”

Until now, the ‘Beijing’ was a brand aimed at a Chinese elite. Looking at this new collection, we were surprised to see young, bold designs.

Is the ‘Beijing’ targeting a broader public?

Indeed, the new collection is priced at between 2,000 and 3,000 yuan (300 to 450 US$). Even in our collection of tourbillons, we’re launching new, very Chinese-style timepieces, with a steel case but not an enamelled dial, priced in the 2,5004,000 yuan range. The average boutique price of a Beijing watch now is 3,500 yuan (520 US$). Maybe we’re positioned too low, because lots of customers are surprised.

Be careful, that’s one of the problems in China. A lower price suggests lower quality!

True, especially for grand complications. “How can you sell a tourbillon at this price, when they’re unaffordable in international brands?” our customers ask us, suspecting dubious quality. One reason is that we have control over the technical aspects and secondly, we’re now targeting a younger, less well-off customer base.

Your range of movements was already impressive back in 2011: a tourbillon, a double tourbillon, an eight-day tourbillon, a minute repeater tourbillon, an orbital tourbillon, and a mechanical movement with a double escapement and a power reserve of 100 hours…

Have new complications been added to that since then?

In 2015, we designed a new tourbillon calibre, the TB10, which has the particularity of being only 2.8 mm thick. It’s the thinnest Chineseproduced watch and the secondthinnest in the world. The reliability phase is just finishing now.

HONG KONG

Memorigin: democratising the tourbillon William Shum is one of the people who best embody the ‘Hong Kong spirit’: he’s native to the city, and an entrepreneur who studied finance at Cornell University in the United States. But the outbreak of the financial crisis is making things more complicated than anticipated. In Hong Kong, his father owned a factory with a workforce of 900, dedicated to the production of movements for mechanical watches. “I wrote my thesis on a case study.

And what about Fiyta: will they be using Beijing-brand Chinese movements under the partnership agreement?

That’s the aim, but for the moment, Fiyta can’t do without its Miyota and ETA movements; our calibres haven’t attained that level of quality yet. Our SB1, SB11 and SB16 automatic movements haven’t yet reached the standard of ETA, but they’re progressing.

Improving movement quality – I’ve been hearing that for nearly ten years, and the status quo hasn’t changed...

When we visited your factory in 2011, the machine tools were Swiss and very old. Is that still the case in 2017?

Many machines date from the 1960s, it’s true. But as you know, the market for movements is in bad shape, which is putting a brake on the renewal and modernisation of our machinery. But for the parts that need CNC machines, we use those of Fiyta, in Shenzhen. In fact that’s one of the advantages of our collaboration.

The new collection is audacious in design. Is that due to the influence of Fiyta, which is a reference in design terms and even holds competitions?

It’s very difficult, because you have to change work habits along the entire production chain. And then there’s the industrial equipment, which would require huge investment. And since the movement trade is sluggish at the moment, the Chinese brands aren’t able to invest in movement technology.

Sea-Gull brandishes the same arguments of unreliable movements, but is shelling out for a gigantic new factory in the industrial zone of Tianjin rather than investing in movement quality. Isn’t that the real problem of Chinese industry, investing in the form rather than the heart of the problem?

Yes, we’ve set up a team of designers in Fiyta’s style studio dedicated exclusively to Beijing Watch Factory watches. Perhaps this first collection is largely inspired by the Fiyta style, because our designers haven’t yet entirely understood the DNA of the Beijing Watch Factory. But the direction is clear – we want our watches to breathe Chinese culture.

I promise you that we’ll be launching some very Chinese models before the year is out.

I think the real problem lies in employee training. We don’t have advanced training structures like you.

So skills don’t improve much. The problem is that, above all; not so much financial or material. What’s more, this training problem affects the entire hierarchy, from the boss to the shop-floor worker. And then there’s a market for cheap movements. If we raised the standard of quality to that of Miyota, we might have to cut production by fourfifths! As far as we’re concerned, we’ve stopped producing low-quality movements during these past two years. But the Beijing Watch Factory can make that change, given its relatively small size.

And that’s when I discovered that among other things, it also produced a tourbillon movement! So it’s quite a mature company from the technical point of view.”

That gave William Shum the idea of taking advantage of that knowhow to launch his own brand, all the models of which would be – tourbillons! Memorigin was born.

The goal: to be affordably priced, between 4,000 and 6,000 dollars, with editions limited to 20 watches. The recipe seems to be working.

“Swiss watchmakers obviously have an advantage over us, because they’re recognised and people know that the price corresponds to the brand value! We can’t attract people who’d be interested in a Jaeger-LeCoultre. On

the other hand, we try to attract people who wouldn’t necessarily have the means to buy themselves a tourbillon watch. We’re democratising the tourbillon.”

Now present in 20 countries, the start-up’s chief market is still Hong Kong. “Faced with the slump in Chinese consumption, we’re trying to build a local customer base.

And first and foremost, we’re trying to attract young people to mechanical watches by democratising the tourbillon. We want to avoid a situation in the future where people wear nothing but smart watches! My greatest fear for the future would be that: a scenario where young people lose all interest in mechanical watchmaking...”

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10 | WATCH.AFICIONADO

AUCTIONS

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The rise of the second-hand watch in China

It is hardly surprising to hear that watch auction sales are particularly buoyant at the moment compared with modern watches, when a single vintage watch goes under the hammer for a figure approximately equivalent to the turnover of a medium-sized contemporary watch company!

On the other hand, few people have pointed out the possible link between this boom in vintage watches and the anti-extravagance campaign in China. Yet, discussing the issue with experts in the field in Hong Kong, the link seems obvious.

By Serge Maillard

When luxury hides its face “In the fight against extravagance and corruption, vintage watches are more low-profile than contemporary ones,” underscores Jessie Kang, Head of Watches at Sotheby’s in Hong Kong. Added to this is the fact that the buyers are more mature and better educated on the subject of watchmaking and its history.

At the moment we’re seeing a transition of the market from the contemporary to the vintage watch.”

Simone Woo, an expert with Phillips’ Hong Kong subsidiary, confirms this: “The market is changing rapid-

ly. Originally, the Hong Kong market was strongly geared to modern watches, but recently we’ve seen a transition towards vintage watches. And new players are joining the market.”

Among these new players are the Chinese auction house Poly Auction, a sister company of Poly Group, a huge public Chinese conglomerate. Drawn by the vintage boom, this company established itself in Hong Kong five years ago and now employs a workforce of around 100 people: “Our advantage is that most of our customers come from continental China, they already know us via Poly Group and now they’re really starting to get interested in our collectors’ watches,” says its watch head, Karen Ng.

Jessie Kang, Sotheby’s

The Patek Philippe, Rolex and Richard Mille trio Poly Auction also holds auctions in mainland China itself. There too, it’s the same story: “Owing to government policy, people are tending to go for more conventional, discreet and subtle watches. Of course, the Chinese still like famous names like Richard Mille and they still buy them, but they don’t necessarily wear them in such a flamboyant way as before, more in private, with friends...”

That’s right: Richard Mille. Beside giants Rolex and Patek Philippe, this independent brand has achieved the feat of gaining outstanding popularity in the Far East, not only for its contemporary products, but for any of its products put up for auction.

But vintage is not really the word, in the case of a brand founded in 2001...

“Our colleagues at Poly Group help

Karen Ng, Poly Auction

us orient mainland buyers towards watchmaking,” Karen Ng goes on.

For the moment, watch sales are small compared with auctions of ceramics or Chinese art, but the potential is huge! At Poly Auction just like at Sotheby’s, they’re trying their hand at ‘cross-selling’: sometimes it’s literally just one step, into the room next door, from antique porcelain to (relatively) antique watches, as sales of these two – for the Chinese – symbolic objects are systematically held at the same time and at the same venue.

Diversification of auction offerings This autumn, at its Important Watches sale in Hong Kong, Sotheby’s found a taker for a 2015 Richard Mille RM56-02 Sapphire Tourbillon at 14,500,000 HKD (1,850,000 US$) and a Patek Phillipe Ref. 5002 SkyMoon Tourbillon in pink gold at 11,020,000 HKD (1,400,000 US$).

As proof that watchmaking is gaining greater maturity in Asia, increasing numbers of less well-established brands than the above-mentioned ‘trio’ are also to be found up for auction, as Jessie Kang at Sotheby’s points out: “We sell watches by Philippe Dufour, Voutilainen, Romain Gauthier and MB&F. Philippe Dufour is very popular for its ‘simplicity’, you have to appreciate every detail! A large number of collectors already have so many watches by traditional brands that they’re looking to diversify their collections,” she continues.

At Phillips, the most popular brands, we’re told, besides Patek Philippe and Rolex are F.P. Journe, A. Lange & Söhne, Richard Mille, Philippe Dufour, Audemars Piguet, Vacheron Constantin, JaegerLeCoultre, Heuer and Universal.

“The taste of Asiatic collectors used to be slightly different from that of Occidentals originally, but with globalisation, the internet and social media the differences are being ironed out. There are some peculiarities, for example collectors in South-East Asia have a pronounced taste for tropicalised dials,” explains Simone Woo at Phillips.

No official figures exist, but in terms of growth, the second-hand market has by now overtaken that of modern watches, with physical auctions and online sales between private individuals, whether on Western platforms such as Amazon or Chrono24, or Asian ones like Alibaba or Taobao.

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12 | WATCH.AFICIONADO

Photography Laurent Baillet

Reflections and travel notes on the Japanese watchmaking market

Exports of Swiss watches to Japan seem to have decreased again this year. Rolex, Cartier and Omega remain the top brands sold in Japan.

“Today the Japanese market is less healthy than the rest of the world,” stresses Kinya Mishima, a Japanese watch distributor and founder of Les Artisans. There are several reasons for this, in his view: “Many people resell their watches on the secondary market, which is gaining ever greater influence. This is because the retail price was excessive for new watches. Furthermore, China has raised its taxes and Chinese tourists visiting Japan now often buy one, less expensive watch,

which they wear at all times.”

Mishima, on the other hand, represents artisanal brands such as Urban Jürgensen, Grönefeld, Speake-Marin, Kees Engelbarts, Pierre DeRoche and Nomos Glashütte, as well as having close ties with Richard Mille’s Japanese distributor. “With my niche brands, I’m interested in a small minority of highly informed collectors. In this respect, Japan, which has a long history of watchmaking, is an interesting market for small independent brands.”

What does he think about the strategy of the major Japanese brands to move upmarket? “Seiko is the most likely to succeed,” says Mishima.

JAPAN: PHILIPPE DUFOUR, A MASTER IN HIS EMPIRE Having seen the portrait of the watchmaker Philippe Dufour, who hails from the Swiss canton of Vaud, at the Seiko research and development studios, Europa Star had the privilege of meeting Yoshi Isogai, owner of the Shellman watch boutique in Tokyo and the exclusive distributor of Philippe Dufour watches in Japan. Put simply, out of the 200 Simplicity models produced by Dufour, Isogai has sold... 127!

How did Philippe Dufour achieve such a status in Japan, his market of choice? “At the beginning, in 2000, the challenge was to convince collectors that Philippe Dufour models could be worth twice the price of a Patek Philippe for example, by explaining the traditional craftsmanship involved in producing them.” To do this, Isogai distributed images of the components crafted and assembled by hand by the watchmaker in the Vallée de Joux, without the use of machines. “We were aided in this communication work on behalf of Philippe Dufour by

“In fact, its major local rival, Rolex, has adopted a stricter attitude towards powerful local distributors regarding the conditions under which new watches are obtained. Seiko is lying in wait, in order to pounce on those retailers less inclined to this new policy.”

“Too focused on solar technology” Now at the helm of the Horological Institute of Japan, Etsuro Nakajima worked at Casio for 40 years. He’s seen it all: the creation of digital quartz watches, the first racing

watch with intervals, the first Pro Trek with altimeter, the first radiocontrolled watch and finally, the arrival of Bluetooth.

“In 2007 we began talks with Nokia for a planned smart watch with Bluetooth Low Energy (LE), or Wibree. But the project took time because the challenge we needed to overcome was the watch’s energy consumption and recharging time.

The energy consumption needed to be limited. In 2012, the G-SHOCK GB5600 was our first Bluetooth watch.”

In 2015 the launch of the Apple Watch changed everything, in particular for entry-level watch giants

the Japanese media and journalists who were able to understand what is so special about him. In particular, a programme shown on the national public television channel made him famous in Japan.” And that’s not all, continues Isogai: while the watch itself is attractive as an object, the simple, authentic personality of Philippe Dufour is, too. “Collectors began wanting to wear an object created by a craftsman like him.

Furthermore, the Simplicity’s small diameter of 34 mm also made it ideal for the Japanese market.”

The value of models created by Philippe Dufour has never stopped growing, as demonstrated by their popularity at auction: at the watch sales held by Phillips in New York at the end of October, a Duality model (in platinum, with serial number 00) was sold for nearly a million dollars. The collector who had purchased it for 150,000 dollars a decade ago made a decent margin. Nonetheless, the watchmaker is in no hurry. “I have a long waiting list of clients waiting for his future watches,” says Isogai, gazing dreamily at a black and white portrait of the “master”.

such as Casio, but also for Fossil and Movado. “The Apple Watch was a game changer, particularly as far as distribution is concerned, because they sell mainly via their own stores and earn a good margin, whereas traditional watchmakers have to share generally more than half the margin with their representatives.

There will always be physical retailers but they need to modernise.”

For Nakajima, Japanese brands concentrate too much on solar technology. Their challenge now is to demonstrate their uniqueness and show what they can bring to their products that represents the Japanese way of thinking.

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WATCH.AFICIONADO | 13

Japan: transitioning from technology to luxury

from GPS to solar energy and smart watches – are trying their hand at a more ‘premium’ strategy. And each in their own way: Seiko with the independence of Grand Seiko announced at Baselworld; Casio with the G-SHOCK in steel, celebrating the 35th anniversary of this icon of the younger generation, who have since grown up (read more on p. 16); and lastly, Citizen via strategic takeovers, including the cluster made up of Frédérique Constant, Alpina and Ateliers de Monaco, to cite the most recent example.

While not neglecting mass production of movements for third parties (as is the case of Seiko and Citizen), nor that of very affordable models, in this article we take a look at how each of them intends to go about positioning themselves more firmly in the premium or ‘affordable luxury’ segment – at the global level. In short, transitioning from a culture of technology to one of luxury.

Why? On the one hand, what is perceived as watchmaking ‘technology’ for the masses – the multiplication of functionalities – seems to be shifting increasingly to Silicon Valley. Inversely, the perception of Japanese culture in the rest of the world has undergone a profound transformation: today the country is seen as much as a symbol of refined lifestyle as of technical knowhow, a society of ultra-refined art and culture. Is that not the very definition of luxury?

All have developed a continuum of unparalleled technological innovations, from the use of quartz to solar energy. All have continued to produce large volumes at very affordable prices. All without exception are now trying to present a more ‘premium’ face, each in their own way. A visit to Casio, Seiko and Citizen, the three giants of the Japanese watch industry.

In a 1938 issue of the Buyers’ Guide (the ancestor of today’s Europa Star), the reader is reminded how closely Japan guarded the secrets of its watchmaking industry back then. “We are not permitted to allow persons unknown to us to visit our factories, and especially not visitors from a watchmaking country,” was the response received by a reporter there.

Things have changed a lot since then and this autumn Europa Star had the opportunity of visiting the factories of the major Japanese watchmakers, as we already have done on numerous occasions! But it is still true that Japanese watchmaking has

developed in an insular way, with its own particularities and well-guarded secrets, and worlds away from the Swiss industry. While taking inspiration from it as far as method is concerned, it has put much greater emphasis on technology. And has developed first and foremost around the three ‘top-down’ giants Seiko, Citizen and Casio, without the teeming ‘bottom-up’ ecosystem based on subcontracting that characterises the Swiss market.

Today, each and every one of these watchmaking giants – all of which have developed extraordinarily sophisticated technological innovation during the course of their history,

How to win over the generations of G-SHOCK lovers, those teenagers who have since matured?

Can ultra-high-tech quartz watches sell for the same price as mechanical watches?

It’s on visiting the museum dedicated to Casio in the house of its founder Toshio Kashio (1917-2012) in Tokyo that you take full stock of the exceptional technological adventure that the brand represents. In a small room, the years are ticked off innovation by innovation, from the introduction of the first watch, the Casiotron in 1974, by a brand whose first product was a cigarette-holder and which then moved into calculators. At Casio watches have quite simply been combined with just about everything: computers, radios, cameras, altimeters, televisions, GPS, music and even a radiation detector!

Toshio Kashio’s philosophy can be summed up in a single phrase: he believed in the infinite possibilities of technology, which is capable of performances far superior to those of the human brain. And what is timekeeping if not the addition of figures – and mastery of the infinite!

Today, the brand is headed by his heir, Kazuhiro Kashio, and technology still takes centre stage, notably with the introduction of Bluetooth into an increasing number of its lines.

This is what the brand defines as the ‘Advanced Global Time System’, which enables the time of smart watches connected to smart phones to be set automatically. Alright, they have fewer features than a ‘traditional’ smart watch, but the brand intends by this means to retain the unique identity of its watches. The watchwords are: self-adjusting, selfcharging and self-updating.

But behind this strategy is a nagging question: how to convince fans of G-SHOCK, the brand’s icon, to continue wearing a Casio as they mature? After all, this watch is 35 years old – which means that its first buyers are today 50+, or older!

The brand has experienced two golden ages in its watchmaking history:

the success of G-SHOCK, which peaked between 1995 and 2000, and more recently a strong increase in sales over the last couple of years through what it calls a strategy of ‘analogue intelligence’ – the development of hands to the detriment of digital screens. The next step is the development of new metals.

“The challenge is now to reach out also to more mature audiences. Previously we had mainly the younger generations, now we evolve with MR-G and G-Steel to satisfy all generations,” summarises Shigenori Itoh, Senior Executive Managing Officer. These premium collections in steel which Casio is currently pushing hard are intended to round out the brand’s collection and cover as efficiently as possible a price range that today extends from 90 to more than 6,000 dollars. These prices now put it on a level with models offered by Rolex and Omega. Who would ever have imagined that?

Shigenori Itoh is upbeat: “Japanese culture and arts are attractive for people all around the world and we have already been using it with the kasumi tsuchime technique in the MR-G line. We will continue the fusion of our state-of-the art tech-

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Casio: a question of age

nology and Japanese craftsmanship. We will continue to increase the value, technology, material and craftsmanship of our watches.”

Yet one massive obstacle looms on the roadmap set out by Casio: today, ‘premium’ is virtually synonymous with ‘mechanical’. Mr Itoh flinches not an inch at this: “You know, 20 years ago, no one said it was possible to make a chronograph G-SHOCK… then we launched the solar-powered chronograph G-SHOCK. So

we achieve what we plan and our dreams! And eventually – I cannot tell you a time frame – Casio might also plan on launching its own mechanical production.”

Today, the brand achieves onethird of its sales in Japan, slightly more than a third in the rest of Asia and slightly less than a third in Europe and North America. It is in these two regions in particular that Casio aims to expand with this new strategy – in solid steel.

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Seiko has Grand plans for the future

the first Grand Seiko was developed in 1960. And the first quartz wristwatch, in 1969...

What strikes visitors is precisely the diversity of its production, between quartz and high-end mechanical movements, including the Spring Drive. It’s a continuous oscillation between automation and the human hand. An impressive automated line works night and day, producing quartz movements. “We still use quartz for Grand Seiko watches for men – which might seem surprising – because we take the view that we produce the best quartz calibres in the world in terms of precision, power and durability,” explains Hiroshi Kamijo. “That’s also part of our heritage. Today, Grand Seiko production is divided between around one-third Spring Drive, one-third quartz and one-third mechanical movements.”

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Seiko’s organisation is as complex as the Japanese tea ceremony! To cut a long story short, this oldest of Japanese watch brands is structured into three entities: Seiko Holdings, which markets the watches and sources them on the one hand from Seiko Instruments, the flagship factory of which is located at Morioka in the north of Japan, and on the other from Seiko Epson, which is established in the region of Nagano.

We have our first appointment in Morioka at Seiko Instruments, where we are greeted by the local manager Ryoji Takahashi, who oversees the 700 employees there: “The Morioka factory opened in 2004 to reach the highest degree of manufacture and craftsmanship in Japan.” Why so far from Tokyo? Because of the fresh air, the streams, the calm and the small valleys somewhat reminiscent of Switzerland, where the watchmakers can really concentrate!

Note that besides its two principal sites in Japan, Seiko also has factories in mainland China, Thailand, Malaysia and Singapore, notably for the production of quartz movements, with an output capacity of 10 million calibres a month, most of which are sold to third parties. It also operates fashion brands, such as Issey Miyake and Agnès B, as well as a handful of brands that are less well-known outside Japan and aimed at the local market.

But very quickly, we come to the central issue which is currently taking up everyone’s energy at Seiko: the emphasis being placed on Grand Seiko as an independent brand, with its own international distribution network! “We train our watchmakers how to assemble Grand Seikos over a long period,” Ryoji Takahashi goes on. “A lot of people want to work in Morioka, but it’s not easy!

Few horology graduates are able to join us…”

In particular, the Morioka factory produces Spiron, an alloy which provides superior elasticity, great strength and high heat and corrosion resistance in the mainspring and the hairspring, developed jointly with the Metal Materials Laboratory of Tohoku University.

But to round off our tour of Seiko in Japan a trip further south is a must: to the province of Nagano and the Shiojiri factory, where we are welcomed by its manager, Hiroshi Kamijo. This is the very place where

INTERVIEW

To obtain more details about their independence and internationalisation strategy for Grand Seiko, we met Shuji Takahashi, the President and COO of Seiko Holdings.

Now we’re establishing it as a brand in its own right and hope to make it popular with a broader audience.

The Astron, Prospex and Presage have already enjoyed strong international growth.

Grand Seiko is now on sale in Seiko boutiques all over the world and at luxury retailers’. The initial response has been good. Grand Seiko first of all attracted truly passionate watch lovers, then the media, and finally caught the distributors’ attention.

The award won at the Grand Prix d’Horlogerie de Genève in 2014, the Petite Aiguille, was very satisfying from that point of view. Now, Grand Seiko is a brand in its own right.

As a part of this strategy, are you going to launch more complications in the Grand Seiko brand, for example a tourbillon? You already manage these capacities with the Credor brand; will you transfer them to the Grand Seiko brand?

Europa Star: The big change of this year at Seiko is the independence acquired by Grand Seiko. Could you tell us more about the underlying strategy behind this split and what benefits you expect?

What I can say is that we’re in the process of developing into the luxury watch market at the moment and in the future we’ll no doubt develop into high-end complications.

But you have to be aware of the fact that the entire Grand Seiko philosophy is based on exceptional readability, elegant design and accuracy. We’re concentrating first of all on the quality of the details rather than launching new complications.

The Grand Seiko 8-Days is the best illustration of this philosophy.

Shuji Takahashi: Back in 2010, we committed ourselves to greater international development with Grand Seiko. Until then, it had been a Seiko line reserved for collectors.

What are the main comparative advantages that you would like to emphasise compared to Swiss brands active in the same price point, in order to seduce collectors but also a wider audience?

My philosophy is that every luxury brand has to fight first of all for its own character and identity. How to express it in a unique way? The Swiss brands have a large slice of the market because they’ve developed strong identities. We’re also developing a distinct identity through the three features cited above: accuracy, readability and beauty. We will carry through this philosophy to the very end. We want to maintain our particularity as a Japanese watchmaker. Our customers are sensitive to the delicateness of Japanese quality and the sense of detail we put into the design of our watches. One good example is the Snowflake dial. It’s as if snow is falling onto the dial, blown by the wind. It might seem very subtle, but we’re always being inspired by details of nature. It’s the same sensitivity as you find in clothing, architecture or Japanese gardens.

All rights reserved

This is the oldest Japanese watch brand, with more than a century of history. It has been in on every technological innovation. But 2017 will remain engraved as a major step in Seiko’s international development: the year when Grand Seiko gained its independence.

And with it, watchmaking Japanese-style.

In the Micro Artist Studio, human hands take pride of place, beneath a portrait of the venerable Philippe Dufour which dominates the workshop. This artisan from Vaud canton came to Shiojiri in 2006 to teach them finishing, and even sent them a polishing tool in gentian wood, today produced in wood from Hokkaido... The studio does both the design, the R&D and the finishing: this is the most creative part of the factory, the place where new watches with complications are dreamed up.

Before, the studio used to focus on Credor (examples of note are the Sonnerie model of 2006 and the Minute Repeater of 2011), but today the accent is of course also placed on design of the Grand Seiko, including the award-winning 8-Days model of 2016. It is precisely these three models that take pride of place in the window of the Seiko flagship store in the chic Ginza district in the centre of Tokyo!

What about promoting them through auctions, like their Swiss counterparts? Kaz Fujimoto, a Japanese expert with Phillips, does not rule it out: “We don’t offer any Japanese watches for auction yet, but that might happen in the future… Because part of Seiko’s strategy of moving upmarket includes enhancing its value among collectors through auctions.”

Grand Seiko still has the Seiko label in its name (versus Tudor and Rolex for instance). It might be seen as a pitfall to the autonomy of

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WATCH.AFICIONADO | 15

I perfectly grasp that from the purely branding and marketing perspective the two brands ought to be separate. If it was a new brand, we would have called it something else. But we fully assume our heritage. We figure among the top five brands perceived as luxury brands in Japan, even though several labels co-exist under the Seiko appellation. We believe that the term ‘Grand’ embodies the idea of luxury.

And after the international launch of this new strategy, I believe even more strongly that Grand Seiko is the right name. We mustn’t change its identity, its nature, at any cost! It’s the same thing for you, with Europa Star: it isn’t a name that automatically calls watchmaking to mind, yet you have a heritage in the industry that goes back 90 years. Don’t lose your identity, it’s your most valuable asset!

Japan is a ‘brand’ in itself today, famous for its very elaborate culture and arts all around the world.

Would you envision incorporating a more Japanese ‘touch’ into the design of the watches, for instance adding more typical patterns and craftsmanship on the dial of the Grand Seiko, which is very minimalist for the moment?

It’s true that starting in 2000, highrange watchmaking became more extravagant and we’ve seen many Swiss brands following that trend.

Watches are no longer simply an instrument for telling the time, they’re fashion objects and subject to trends. It’s a very complicated subject for a brand like Seiko to follow. We keep an eye on the ‘megatrends’, but how do we keep our identity?

We want to maintain a delicate balance. If we’re going to start competing more on the international markets, we’re going to have to differentiate – while staying ourselves.

We’re not a Swiss brand and we’re not going to follow the megatrends.

I still can’t talk of future developments but I can tell you that we’re always trying to give our watches more of a Japanese ‘flavour’, through the lacquer or the enamel, for example. But it’s very subtle, a tacit statement. The Swiss are more showy, and the customers know the value of it. The Japanese have to explain more about the watch and what makes it special.

For the moment, we still sell more Grand Seikos in Japan than on the international market. But we want to go on the offensive and there’s a still a large share of the market to conquer. Maybe it’s a brand philosophy we still need to explain more.

All rights reserved

Grand Seiko and its perception as a separate brand from Seiko. What is your strategy to surpass this potential pitfall?

Citizen, a strategy of acquisitions Unlike its two fellow watchmaking companies which are launching an offensive internationally by moving their own products upmarket, this giant has opted for strategic acquisitions, the latest being the purchase of the watchmaker group Frédérique Constant, following that of Prothor a few years previously. Europa Star met CEO Toshio Tokura during a previous trip, in an interview by Joe Thompson. What we learned then is as relevant as ever. Here are some excerpts.

“The foreign-brand buying binge is a sign of changing times at the Citizen Group. The architect of those changes is Toshio Tokura. Since becoming president and CEO of Citizen Holding Co. in April 2012, he has initiated what he calls “drastic” changes that are transforming the group’s watch business. Among the highlights: • He has restored watches to their historic position as the group’s core product and launched what amounts to a “Watches First” growth strategy.

• He has refocused on the Citizen brand, attempting to elevate its image by emphasising aesthetics as well as advanced quartz technology.

• He has launched a foray into the lucrative luxury-mechanical market with an acquisition strategy designed to turn Citizen into a global, multi-brand watch group with a presence in every price segment.

• He is tapping the mechanical-watch expertise of Citizen’s new Swiss subsidiaries to upgrade Citizen’s

in-house mechanical watch technology with a view to making mechanical watches in Japan.

“Looking at the watch business over the past 20 years, we didn’t see much growth,” he says. “We needed to solve that.” Tokura and his team identified two major opportunities to expand their watch business. One was to boost the image and sales of its core Citizen brand. The other was to take a share of the luxury-mechanical market by acquiring Swiss brands.

In the Citizen Group’s annual report for 2012, the company explained why it purchased Prothor Holding (La Joux-Perret and Arnold & Son).

“Demand for premium Swiss-made mechanical watches is expanding, particularly in China and other emerging markets,” Citizen said, “and we believe that participating in the premium luxury segment of the watch market is essential for the company to achieve its growth strategy in the watches and clocks segment.”

With La Joux-Perret and Arnold & Son, Citizen tiptoed into the world of luxury mechanicals. Arnold & Son, an obscure, small-batch producer of high complication watches, was an add-on. What Citizen really wanted was La Joux-Perret.

“The mechanical watch technology – that’s what we were interested in,” Tokura says. For two reasons.

First, to protect Bulova. Citizen had purchased the American brand in 2008 to give itself a dominant position in the mid-range of the U.S. market. Bulova happens to have a collection of Swiss-made mechanical watches. When ETA, Switzerland’s dominant movement producer, announced its intention to restrict sales of mechanical movements to third parties, Citizen worried about securing movements for Bulova and began shopping for a Swiss movement producer. La Joux-Perret solved the problem. It also gave Citizen the chance to revive its own outdated mechanical watch technology.

Citizen has produced mechanical watches for nearly a century.

However, since the quartz revolution, it has focused primarily on electronic watches.

“Our mechanical technology is quite far behind because we stopped developing it,” Tokura says. “We have a lot of catching up to do. There are a lot of things we can learn from the Swiss.”

Prothor gave Citizen a toe-hold in the premium luxury market. The next step, Tokura told me, was to “buy a Swiss brand to really give us a footprint in that price range.”

Frédérique Constant does that. The

company, founded by Peter and Aletta Stas in 1988, is a leader in the so-called “accessible luxury” segment of the market. The core prices of the Frédérique Constant and Alpina brands are primarily between $1,000 and $5,000, with some models costing more than $10,000.

“We believe that participating in the premium luxury segment of the watch market is essential for the company to achieve its growth strategy in the watches and clocks segment.”

The company does not divulge sales data, but FC Holding is substantially larger than Prothor Holding. (In 2009, Kepler Capital Markets estimated Frédérique Constant’s annual sales at 150 million US$ and annual production at 90,000 units.)

Frédérique Constant also has significant mechanical watch production capacity. It develops, manufactures and assembles its own calibres, 19 of them since 2004, it says.

As with the Prothor Holding acquisition, Citizen will leave Frédérique Constant’s current Swiss management in place. Citizen has plenty to do managing the Citizen brand, Tokura says, without trying to manage four luxury mechanical brands.

“We don’t have the experience,” he says with a smile. “We don’t know that world. It’s such a mystery to us.”

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16 | WATCH.AFICIONADO

G-SHOCK the world for 35 years

MRG-G2000HT

2018 is the 35th anniversary of a watch icon, the G-SHOCK, which revolutionised the face of a global industry, and which has just shipped its one-hundred-millionth unit. Built around the concept of strength, its bold and distinctive style has introduced legions of young people to the joy of wearing a watch. The G-SHOCK has played a part in many people’s lives, acting as a sort of watch nursery, and the entire industry has reaped the benefits! It is now going premium with the MR-G and G-Steel lines.

By Serge Maillard

The dream of Mr Ibe Who better to talk about the G-SHOCK than its creator, Kikuo Ibe? Europa Star went to meet him in Japan. “Exactly 36 years ago, I dropped the watch my father had given me, and it smashed into a thousand pieces,” explains the affable inventor. “From that time on, I was obsessed with building an indestructible watch!” This marked the start of the epic journey that would lead to the conception of the G-SHOCK. “In the beginning, I would throw my prototypes out

of the window of the Casio building, using rubber to protect them.

Eventually, I started protecting the prototypes’ individual components, so that I could reduce its size. But some of them still didn’t survive.”

The revelation came one day as he was walking in a park. “I saw a girl playing with a rubber ball...

Suddenly the solution was obvious: I had to make the watch movement ‘float’! So we developed a shock resistant structure with certain contact points. The first G-SHOCK was finally launched in 1983.” His goal had been achieved, and even the workers on the building site opposite the Casio building could wear the watch with complete peace of

mind. “The G-SHOCK has become the world’s strongest watch.”

Commercial success was virtually instantaneous. Its unusual design proved widely popular, particularly with a younger clientele. “As far as the design of the watch was concerned, the challenge was to express all the technology the model used to make it so strong,” the inventor continues. “In a way, we had to combine form and function.”

Each watch encompasses seven elements; electric shock resistance, gravity resistance, low temperature resistance, vibration resistance, water resistance, shock resistance and toughness. Casio innovations and technologies to prevent it from

suffering direct shock include internal components protected with urethane and suspended timekeeping modules inside the watch structure.

“In 1994 we set ourselves a new challenge: developing a new, dressier version of the G-SHOCK. That meant making it out of metal,” Kikuo Ibe tells us. “I started the project with eight young engineers. But it was difficult to find an effective way to protect the metal case and bracelet.” This time, the team found their solution by looking to the automobile industry. Car bumpers provided the inspiration for developing a way of protecting the watch bezel.

Casio’s ultimate metal watch – the MR-G – was finally born.

Kikuo Ibe confides his ultimate dream: “What I’d like to do now is make a watch that will work in space, but this project hasn’t yet got off the ground!”

So, in the meantime, back on Earth, Casio is embarking upon a special series of events, with a special series of watches to celebrate the anniversary of its icon. From New York to Tokyo, via London, there are plenty of surprises in store.

A visit to Yamagata This is a crucial time for the brand, which is hoping the continually evolving G-Steel and MR-G lines will take it upmarket (see our article in Time.Business). The present author has fond memories of the G-SHOCK he, like many of his adolescent friends, wore in the 1990s.

The aim now is to continue to meet the expectations of these maturing customers, while appealing to new generations.

It’s a challenge on a number of levels, but they can all be summed up in one generic term: integration.

Integration of increasingly luxurious materials in the watch case; integration of traditional Japanese arts such as tsuchime; integration of new designs; integration of new Bluetooth connection technologies as seen in smartwatches – all this in the “smartest” possible way, so as not to dilute the highly distinctive identity of G-SHOCK. It’s not until you visit Casio’s flagship factory in Yamagata that you really grasp the Japanese watchmaker’s hitting power. Some 2.6 million watches per year are produced

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WATCH.AFICIONADO | 17

by around 300 people. The level of automation is impressive; the systems are engineered to get the best out of both man and machine. The future of the G-SHOCK lies within these white walls. Testing is a crucial element. More than 170 tests are carried out on the brand’s various models. Let’s not forget that, back in 1974, the Casiotron was already capable of surviving a fall of 10 metres. Over the years, an ever more elaborate structure has been developed to protect the G-SHOCK. Today, for example, the GPW-2000 Gravitymaster contains more than 400 components.

It’s all about combining the best of Japanese traditional craftsmanship with cutting-edge technology. So let’s take a closer look at what is probably today’s best example of this fusion of the possible: the MRG-G2000HT, pictured on the front page of this issue. This extremely limited edition provides a foretaste of what we can expect from Casio in the future.

“The MR-G is now the flagship series of the G-Shock collection,” notes Chief Engineer Singo Ishizaka. “And we keep enhancing its quality: titanium is used in the case and band.

MR-G watches are scratch-resistant. Now they also feature Japanese craftsmanship. Mr Bihou Asano is a master of the ancient technique of hammering metal. There are many types of hammer tone in Japan.

We chose a pattern in the form of a wave.”

The MRG-G2000HT features the GPS Hybrid Wave Ceptor technology to ensure the watch remains accurate in any location on Earth, under virtually any conditions. The watch receives standard time information via terrestrial radio waves, GPS satellite signals and, now, Bluetooth transmission. The watch selects the most appropriate system for the conditions, and supplies the correct time and daylight saving information for the current time zone.

The companion MR-G Connected smartphone app provides additional functionality, with World Time for over 300 cities, automatic time adjustment and watch status display, over a Bluetooth connection.

But the premium MR-G range is not just about high-tech. It also showcases the distinctive kasumi tsuchime technique, first used over 1200 years ago to decorate armour and copperware. The bezels and strap inserts of each of the 500 watches in this limited edition are worked by master craftsman Bihou Asano of Kyoto, whose family has safeguarded the tsuchime tradition for generations. The age-old metal-hammering technique uses deft strokes of a special tool to impart

DR

The MR-G: an alliance of technology and craftsmanship

a distinctive pattern to the metal surface. Here, the technique used on the bezel and centre band leaves eye-shaped indentations that ensure that no two watches are exactly alike. After hammering, the forge-cast titanium is subjected to a deep layer-hardening process, and a blue DLC (diamond-like carbon) coating is applied to the bezel, case back and metal plate at 10 o’clock.

As well as improving abrasion resistance, it provides an opportunity to apply colour to selected parts of the watch. Casio has developed a unique shade called Japan Blue, based on the Japanese indigo hue

familiar from traditional dyed fabrics. Achieving this unique deep shade relies on a complex and labour-intensive process, made even more difficult by the irregularities in the hammered surface.

Casio continues to innovate with the G-SHOCK, providing models for every price bracket. As Ryusuke Moriai, manager of the watch design, points out: “With the connected G-Steel for instance, the challenge is to create a steel design that fits the G-SHOCK line. Our goal is to come up with a completely different design.

We challenged ourselves to use just straight lines and circles. We think

we have achieved a kind of ‘primitive beauty’ with our watches. It was never our intention to focus on functionality. We wanted to show that the watch is connected. We designed a rotating wheel inspired by the jet engine.” The GST-B100X is a special model, equipped with a unique carbon, a combination of state-of-the art Tray Industries TORAYCA®*1 and NANOALLOY®*2 that results in a bezel with outstanding shock resistance characteristics, made of 37 layers of carbon. This tough model fits the G-SHOCK concept, and is a reliable companion even in the most extreme weather. >

*1 TORAYCA®: High-performance carbon fibre material by Toray Industries is used in a wide range of applications, including: aerospace, high-pressure vessels, wind power generation, automobiles, bicycles, golf club shafts, fishing rods, and more. *2 NANOALLOY®: Original Toray Industries nanometre structure control technology makes it possible to combine multiple polymers on a nano-metric scale (one billionth of a metre) for performance that is far superior to previous types of materials. This polymeric material enables high performance and high function that was previously not possible with standard micron order (one millionth of a metre) alloys.

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18 | WATCH.AFICIONADO

Resisting the shocks of nature Speaking of extreme conditions, the GPW-2000 G-SHOCK Gravitymaster has been designed with the needs of aircraft pilots in mind. As well as supremely accurate timekeeping, the GPW-2000 offers superior shock resistance to cope with extreme altitude and speed. The Triple-G construction provides protection from three types of gravitational stress – external shocks, centrifugal force and vibrations – and an anti-magnetic plate within the module prevents the hands from being moved as a result of magnetic forces. The case is constructed from carbon fibre, a material extensively used in aircraft for its superior strength and lightness, with the additional protection of FRP (Fine Resin Parts) both

within the watch’s frame and at the ends of strap, to strengthen stress points and provide further vibration resistance. Optimum readability under difficult conditions is assured by bold phosphorescent hour markers and dashes of red, all within a dramatic multi-layered 3D dial. The low specific gravity of the vermilion carbon fibre second hand makes it possible to increase its size while maintaining impact resistance. Night-time visibility is provided by the Super Illuminator, a high-brightness LED. As well as time zone and adjustment functions, the G-SHOCK Connected smartphone app also features a flight log function, which can store location and time data to provide a travel history, including point of departure, interim and final destination, and return destination. A latitude/ longitude display and Coordinated

Universal Time (UTC) indicator provide further navigational aids.

“Never, never give up!”

And this is just the beginning. In October, Casio announced the expansion of the MR-G line and unveiled two new 3-Way Time Sync timepieces, capable of receiving radio waves, GPS satellite signals and Bluetooth transmissions for the most accurate timekeeping possible.

Representing the latest Bluetooth connected offerings from the brand, the new models also boast premium materials for the ultimate in luxurious, indestructible construction.

The MRG-G2000CB-1A features a bezel with Cobarion®* finish, a new material developed in Japan to give a beautiful mirrored surface, as well as

increased scratch resistance and anti-allergenic properties. The MRGG2000HB-1A features a dragoninspired bezel in deep black, with a specialty Marume-Tsuiki hammer tone finish. Both timepieces boast evolved functionality with city codes and watch modes easily viewed on the right side of the watch face.

Both MRG-G and G-SHOCK timepieces also possess G-SHOCK’s GPS Hybrid Waveceptor technology to accurately measure time and location from anywhere on earth, Tough Solar capabilities for increased battery function, as well as a non-reflective sapphire crystal and black titanium case and bracelet, highlighting their premium construction. Additionally, by utilising the new G-SHOCK MR-G Connected smartphone app, users can easily set world time as well as enhance the reliability of the timepiece through

monitoring the watch’s key functions such as self-adjustment, solar charging, and more.

Mr Ibe’s dream of creating an unbreakable watch came true… and it seems like it is just the beginning of a new era with the ongoing expansion of the G-SHOCK line. Mr Ibe’s mantra has never been truer than it is today, in the face of a rapidly changing watch industry: “Never, never give up!”

* The bezel is constructed of Cobarion, a new alloy developed through collaboration between the academic and industrial sectors. Cobarion boasts over twice the strength of stainless steel and a polished lustre comparable to that of platinum.

Cobarion® is a registered trademark of the Iwate Industry Promotion Center, Japan. It is manufactured exclusively

by Eiwa Co., Ltd., Kamaishi, Japan.

The Triple-G construction of the GPW-2000 G-SHOCK Gravitymaster provides protection from three types of gravitational stress – external shocks, centrifugal force and vibrations.

EN COUVERTURE

The MR-G is the premium line in metal of the G-SHOCK watch. It is as reliable as the iconic watch and fuses Japanese technologies and craftsmanship.

EUROPA STAR PREMIÈRE | 19

CHRONOGRAPHS

20 | WATCH.AFICIONADO

The chronograph, An expression of modern times (*) rd ea dw Ea br uy M ge id

The chronograph, an ingenious invention of modern times, has taken the measure of human progress for nearly two centuries. The etymology of the word comes from the combination of two Greek roots: chronos (time) and grapho (writing). To write time is also to write a record of the history of the world.

(*) Excerpts.

Originally published for the exhibition Le Chronographe, Expression des Temps Modernes, held by the Fondation de la Haute Horlogerie in 2007–2008, and in the book entitled La Conquête du Temps, 2nd edition. In collaboration with Grégory Gardinetti.

By Dominique Fléchon, historian and expert in fine watchmaking

THE BIRTH OF THE CHRONOGRAPH

Chronos…

Time: long to short

By Pierre Maillard

Time measurement developed from the observation of long periods of cosmic time, from the movement of the planets to the determination of 365 days in the year; from the phases of the moon to the regular alternation of day and night...

Only with the advent of mechanical time measurement was man able to break time down into the precise measurement of minutes, then seconds, and tenths, hundredths and thousandths of a second.

Beyond this frontier, mechanical watchmaking must abdicate, leaving such measurements to atomic clocks and scientific instruments devoid of any mechanical parts.

The history of conquering short time periods remains one of the great watchmaking sagas. The chronograph originally heralded a number of geopolitical, scientific, astronomical and technological advancements before losing its supremacy in the

field. Simultaneously, it also became increasingly accessible, imposing itself as THE watch of "the modern man".

The true practical usefulness of this short time period calculator has often been mocked. Naysayers claim that it would be best employed as an egg timer! There might be some truth to this, since who, today, calculates a driving speed or heart rate using the time scales represented along the bezel of one's watch?

Well, that's beside the point. The chronograph – which most people do not even consider a great watch complication – remains one of the noblest complications and one of the most difficult to achieve. Moreover, whether modern or vintage, it remains one of the most sought-after types of watch, as demonstrated by the incredible trend of '50s and '60s steel chronograph throwbacks. Such a vogue might be about functionality, but these days it is most importantly about appearances.

A tale of astronomy…

The scientific advances of the end of the eighteenth and early nineteenth centuries, notably in astronomy, medicine, engineering and industry, necessitated the measuring of fractions of seconds. In this field, as in others, there were numerous inventors and solutions.

Following unfruitful attempts by John Arnold, Louis Moinet (17681853), a Parisian watchmaker who was also a keen astronomer, invented an instrument that measured sixtieths of a second, which he called a compteur de tierces (“counter of thirds”). The “third” refers to the third subdivision of the hour on a basis of 60 after the minute and the second, and is used in astronomy.

This counter was produced in collaboration with a watchmaker from the workshop of Abraham Louis Breguet in 1815-1816. In terms of its performance, ergonomics and the readability of its dial, this instrument prefigures the chronometric devices to one-fiftieth and one-hundredth of a second created by Heuer in 1916, a century ahead of its time.

As noted in his Traité d’horlogerie, Louis Moinet stated that his ‘counter of thirds’, designed for astronomical purposes, was available to anyone who wished to produce large numbers of it. This offer seems not to have been taken up. And yet it was indeed the very first chronograph.

… and horses The Jockey Club was founded in England in 1751. In the late eighteenth century, the upper echelons of English society discovered racing, in which men, horses or dogs vied for victory. The spectators bet on the winner. At the same time, the breeders were looking to measure their horses’ performance. On 4 November 1799, Ralph Gout filed a patent for a pedometer watch, a device designed to count the number of paces taken by a pedestrian or a horse over a given time. Mounted on a horse’s saddle, it added up the total number of paces taken by the mount, or if fixed to the leg, by a walker. When placed on a carriage wheel, it was able to count the rotations.

On 1 September 1821, Nicolas Mathieu Rieussec (1781-1866), watchmaker to the king, timed a series of horse races on the Champ de Mars in Paris with the aid of an instrument of his own invention.

The minutes of the French Royal Academy of Science dated 1821 and signed by Antoine-Louis Breguet

Chronograph measuring sixtieths of a second by Louis Moinet. Very high-frequency instrument: 216,000 vibrations/hour, 30 Hz. Ruby escapement by Moinet. The counters are reset to zero using a separate corrector stylus. Power reserve indicator on back of chronograph approximately 30 hours. Upper plate signed Louis Moinet. D. 57.7 mm; th. 9 mm.

and Gaspard de Prony report that on that day, Nicolas Mathieu Rieussec presented a ‘timepiece or counter of distance covered’, which the Academy called a ‘seconds chronograph’. On 9 March 1822, he obtained a five-year patent for it.

The instrument is appropriately named since it deposited a drop of ink on the enamel dial at the start and end of each measurement.

Inking was then abandoned, resulting in the advent of the chronoscope (improperly called ‘chronograph’), first of all in a pocket, then a wrist version.

After that, history speeded up. On 9 February 1822 in England, Frédérick Louis Fatton (1812- 1876), a pupil of Abraham Louis Breguet established in London, obtained a patent (no.

4645) for an inking chronograph, and on 27 September 1822 a second patent for a fixed-dial system.

CHRONOGRAPHS

Inking chronograph by Nicolas Mathieu Rieussec, Paris, 1821. Half-brother of Nicolas Joseph Rieussec, one of the founding members of the Jockey Club of France and the Society for the Encouragement of Improvement in Horse Breeds, Nicolas Mathieu Rieussec tested the chronograph of his invention in 1821 on a racecourse.

DURING THE COURSE OF ITS HISTORY, THE CHRONOGRAPH HAS BEEN PRESENT ON ALL FRONTS Chronographs and the art of medicine Even back in classical antiquity, Greek, Alexandrian and Roman physicians noticed that human life was subject to a regularly beating pulse. Around 300 BC, Herophilos of Chalcedon discovered that the heart was responsible for it and devised a means of counting the number and rate of heartbeats using a water clock.

In the first and second centuries AD, the Greek physician Discorides emphasised the importance of the water clock in medicine, and Galen of Pergamon used it to measure fever and pulse.

Towards the end of the Middle Ages, the mechanic-physicians created clocks indicating medical, astronomical and astrological measurements, which they consulted before practising their art. Several of the first monumental clocks that indicated the signs of the zodiac and the position of the planets automatically also had a painting of a human silhouette called the Aderlassmann, on which the points for bloodletting were marked.

This indicated the correlation between parts of the body and the times of the year most favourable for a surgical operation.

During the Renaissance, Galileo recommended the use of a pendulum to measure heart rate and irregular heartbeat, and even built a special instrument for the purpose, which he called a pulsilogus.

The research of doctors William Harvey and Stephen Hales heralded the age of precision measurement in medicine and corroborated the theory of Sir John Floyer, who prescribed measuring the pulse using a watch with a seconds hand.

To this end, he created a pocket pulsometer in 1705. Later, watches with a dead-seconds hand were a valuable aid to practitioners in establishing diagnoses.

It was not until the second half of the nineteenth century that watchmakers invented genuine medical chronographs, the originality of which lay not in their mechanism, but in the graduation of their dials.

The pulsometer, also called a sphygmomanometer, counts the number of heartbeats per minute.

The asthmometer, also called a pneumograph, counts the number of breaths per minute.

These chronographs, the medical functions of which could be grouped together on a single dial, were designed in the nineteenth and twentieth centuries and in the 1920s were miniaturised for wearing on the wrist.

Chronographs and engineers Engineering being such a vast domain, during the course of history watchmakers have had to design chronographs with special chronometric scales to suit the specific problem at hand.

The following instruments resulted: • Tachymeters, which mark the speed of a moving body expressed in the local units in use at the time of its production: miles/hour, versts, kilometres/hour or some other unit.

• Rangefinders, very useful to the military but also to meteorologists.

• Tachoscopes, which are crucial for the correct adjustment of machines and for controlling production.

• Productometers, which show the number of items produced in an hour.

• Split-seconds chronographs, which today are used in sport, but which for a long time served to time events of differing durations but all starting at the same time in a single experiment.

Depending on what they are researching, engineers need instruments that split the second into larger or smaller portions. Chronometric scales are usually graduated into hundredths, fiftieths, twentieths, sixteenths, tenths or fifths of a second according to the application.

As soon as watches had attained a sufficient degree of precision regardless of how far the spring was wound, the dials were equipped with time measurement totalisers, generally up to thirty minutes.

On contemporary wrist-chronographs, a seconds totaliser records measurements up to a maximum of twelve hours. However, a handful of pocket models are capable of re-

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cording measurements of time up to twenty-four hours.

Most of these chronographs, manufactured by specialists such as A. Lange & Söhne, Glashütte Original, H. Moser & Cie and Union Glashütte, are the result of technological upheaval and improvements in productivity generated by the industrial revolution.

They were of great assistance to Frederick Winslow Taylor (18561915), an American economist and engineer, in designing his scientific method of work organisation.

Some chronographs, all developed in the nineteenth century, were transformed into wristwatches. Expressing

an observer and a visible and audible phenomenon. The principle was based on the difference between the speed of light and the speed of sound, arbitrarily defined at 333 metres per second at a temperature of 5-10°C. When applied to the direction indicated by a compass placed on an ordnance survey map, the distance shown on the dial provided a means of locating the enemy cannon and if need be, adjusting the return fire.

Today, this instrument is used for peaceful applications and can provide valuable help to anyone at sea or on land seeking shelter from an approaching storm…

"The culmination of fundamental advances in watchmaking and the point of departure for new research, the chronograph, when the idea of graphically recording time was abandoned, gradually over the decades became a chronoscope – time you could watch passing, and count. First of all on a pocket watch, then on a wristwatch.

The chronograph would accompany the industrial revolution every step of the way, right down to the minutest detail of work organisation. The companion of engineers as well as astronomers, scientists, doctors, gunners and explorers, no domain can do without one when it comes to expressing the present moment. As our taste for free time intensifies, it can be found in every sports discipline, individual or team, and over and above its prime function of measuring short times is turning into an identifying code of modern humanity. A humanity which, having mastered technique and speed, now thinks it can master time by stopping and starting a magical mechanism of rare beauty and of a complexity which reflects human intelligence."

Franco Cologni, taken from the preface to Le Chronographe

the needs of their times, some graduations – those of the Omega chronographs, for example – are a reminder of the kinds of things then measured: the speed per hour of homing pigeons, trams, hippomobiles, trotting or galloping horses, development times for photographic prints; while others remain shrouded in mystery because many of the applications for which they were intended have now disappeared.

Chronographs and the military Time is fundamental to ballistic calculations and analysing the use of firearms. Although the speed of the projectiles is too high be measured with a conventional chronograph, chronographs equipped with a telemetric scale were for a long time used by gunners to adjust the range of cannon-fire.

Rangefinders are instruments used to measure the distance between

Chronographs and scientists The improvement in the precision of astronomical observations is due to watchmaking in general, and to the chronograph in particular.

Until the Renaissance, various instruments were used to observe the meridian passage of the stars. The use of the telescope by Galileo from 1609 onwards revolutionised the technique of observing the stars.

Until the nineteenth century, to determine the time of a star’s meridian passage (the vertical plane of the place of observation when oriented north-south), astronomers used what was known as the “eye and ear” method: after reading the time on a clock or chronometer with a pendulum beating the seconds, they counted the number of beats until the moment when the star reached the centre of the instrument’s field of vision while keeping their eye glued to the viewfinder.

The invention of the chronograph rendered this method obsolete, since all the observer had to do was stop the chronoscope, manually first all, and subsequently with the aid of an electric switch. The chronoscope soon gained the addition of a tape on which the results were recorded graphically.

It was notably thanks to more and more accurate measuring devices that certain characteristics of the Earth were discovered, the imperfectly spherical shape and the minute variations in speed of which affect calculations of longitude and latitude.

The solution to this problem, which was vital for sailors, was found by the English watchmaker, John Harrison, in 1761 thanks to his precision chronometers.

One century later, in the nineteenth century, the chronograph, with its three functions – start, stop and reset – was still unrivalled when it came to accurately determining a given point in time or space, whether at sea or on land. Together with the compass, the thermometer and the barometer, it was the instrument of choice for the great explorers.

Chronographs and athletes The first University Boat Race between Oxford and Cambridge took place in 1829. On that occasion, the competitors were timed to a quarter of a second, the balance of the chronographs of the time vibrating at 14,400 vph.

In sports, fifths of a second (18,000 vph) were for a long time considered to be the smallest unit compatible with the reaction time required for a human timekeeper to start and stop a chronograph.

Today’s circular tachymetric scales usually indicate speeds of between sixty and four hundred. However, the spiral tachymeters on the most recent wristwatches allow a range of measurement from 20 to one thousand kilometres an hour.

In 1912, the Stockholm Olympic Games experimented with photographic counters capable of distinguishing tenths of a second.

The hundredth of a second was used in 1924 at the Paris Olympic Games. However, the International Amateur Athletics Federation refused to recognise the validity of the results, taking the view that the human eye should continue to distinguish the winner. At the Olympic Games in Rome in 1960, manual chronoscopes were abandoned in favour of photographic and electrical procedures. Nevertheless, from 1892 and perhaps even earlier, certain sports competitions were timed using electrically triggered chronographs, of which Mathias Hipp (1813-1893) was a pioneer.

They mark the start of another story, as they took over where mechanical watchmaking technology had attained its limits.

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CHRONOGRAPHS: BLACK IN FASHION

VACHERON CONSTANTIN TRADITIONNELLE CHRONOGRAPH PERPETUAL CALENDAR For the sake of legibility, the dial features various nuances of grey with finishes that differ according to the function, just like the Vacheron Constantin chronographs of the 1940s.

The 1142 QP calibre, a latest-generation movement entirely designed and developed by the manufacture, replaces the 1141 QP. This movement features perpetual calendar functions: it indicates the date, day of the week, month, leap year and phase of the moon, in addition to the central direct-drive chronograph function, 30-minute counter at 3 o'clock and, opposite, the small seconds at 9 o'clock.

SINGER TRACK1 The new chronograph "motor" by Jean-Marc Wiederrecht, the head of Agenhor, drives this year's two most interesting chronographs: the Visionnaire Chronograph by Fabergé (see opposite) and the Track1 by the new brand Singer. The chronograph's hours, minutes and seconds are indicated coaxially at the centre of the dial, on a 3x60 scale (60 seconds, 60 minutes and 60 hours), making it possible to read the time display in a simple, intuitive, immediate way. This 34.4mm calibre beats at a frequency of 3 Hz and its two barrels ensure a power reserve of more than 60 hours. This exceptional motor is structured around a series of openworked cams driving the central display of the chronograph functions. Moreover, the innovative clutch – exclusive to Singer – provides unprecedented comfort. The titanium case with pure, dynamic lines is a modern interpretation of the chronographs of the '60s and '70s.

Its barrel shape presents a fine bezel and is delicately curved for optimal ergonomics. Polished and sun satin finishes are alternated throughout the 43mm diameter watch.

FABERGÉ VISONNAIRE CHRONOGRAPH One of the principal codes of Fabergé's Visionnaire collection is to place the complication at the centre of the watch, as in the previous Visionnaire DTZ (which stands for Double Time Zone). With the involvement of Jean-Marc Wiederrecht (see opposite the Singer Track1 based on the same movement), Fabergé presents this Visionnaire Chronograph, loosely inspired by the preparatory drafts of the 1917 Constellation Egg (which was never finished) and its exterior time measurement ring. The chronograph complication therefore appears at the centre of the dial, indicated very clearly with three hands (24 hours, 60 minutes, 60 seconds), while the passing hours and minutes are indicated on scales outside the dial by two indicator tips which protrude from underneath the central dial of the chronograph.

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RAYMOND WEIL FREELANCER CHRONOGRAPH The brand-new edition of Raymond Weil's star chronograph seeks to combine elegance and power. With a 42.5 mm steel case offering water-resistance to 100 metres and driven by a self-winding mechanical movement featuring a 46-hour power reserve, the latest addition to the Freelancer collection is available in several models, with a silver-tone or black dial and a leather or steel strap. The screw-in crown, tachymeter and guilloché bezel make this new Freelancer chronograph an elegant yet manly model for all occasions.

Hours, minutes and small seconds at 9 o'clock. Date and day-of-the-week display at 3 o'clock.

HERMÈS ARCEAU CHRONOGRAPH TITANE In 1978, Henri d’Origny designed the Arceau: a round watch to which he added asymmetrical stirrup-shaped fastenings and a unique, easy-to-identify typeface.

With a chronograph complication and a 41 mm sandblasted titanium case, this sporty self-winding version is incredibly lightweight. The three counters and date display are harmoniously arranged along the dial. The straps of both models – in natural Barenia and embossed black Barenia leather – reveal the Hermès tradition of leather-crafting excellence with their saddle stitching and delicate textures.

EBERHARD & CO CHRONO4 130 To mark its 130th anniversary, Eberhard & Co brought out a special model of its famous Chrono4, the only chronograph to present four horizontally aligned counters: minutes, hours, 24 hours and small seconds, offering immediate legibility. This commemorative edition reveals the counters' cogwheels through a sapphire glass bridge measuring just 3/10ths of a millimetre. 42 mm steel case. Edition limited to 130 pieces.

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BLANCPAIN L-EVOLUTION "SUPER TROFEO" FLYBACK CHRONOGRAPH

LOUIS VUITTON TAMBOUR ALL BLACK CHRONOGRAPH Developed in 2002, the Tambour watch marked the beginning of the Louis Vuitton watchmaking story.

Fifteen years after it was launched, a new version was released: the Tambour All Black. The Tambour All Black Chronograph brings a sporty spirit to the watch while conserving its elegance. Within its imposing 46 mm steel case is a self-winding calibre offering chronograph, hour, minute, second and date functions.

MIDO MULTIFORT SPECIAL EDITION CHRONOGRAPH The Mido Multifort collection is one of the most prominent Mido watch collections. In a special edition in black PVD-treated 316L steel, this self-winding chronograph is equipped with a Mido 1320 movement based on the ETA Valjoux 7750, and it features an Anachron balance spring, a Glucydur balance wheel, and a Nivaflex NM mainspring. This chronograph movement is finely decorated, including blued screws and an oscillating mass with an engraved Côtes de Genève finish. The hours, minutes, seconds and 60-second chronograph appear at the centre, while the 30-minute counter is displayed at 12 o'clock and the 12-hour counter at 6 o'clock. The day and date appear at 3 o'clock. 44 mm 316L steel case. Transparent caseback. Water-resistant to 100m.

Sold with two interchangeable bracelets in black calfskin and orange crocodile-stamped leather.

Blancpain joined forces with Lamborghini to bring forth an automobile championship series with six events per year, the Super Trofeo, where the new Lamborghini Gallardo models face off. To celebrate these races, Blancpain presents a new flyback chronograph, the Super Trofeo. A resolutely sporty watch limited to 600 pieces. To reinforce its dynamic character, the mechanical movement of the Blancpain Super Trofeo, Calibre F185, has undergone an NAC galvanic treatment that blackens the bridges and baseplate of the movement. A self-winding mechanical chronograph, the Calibre F185 features a 40-hour power reserve. In addition to hours, minutes and small seconds, it displays the date in a window at 6 o'clock, and features chronograph indications, direct-drive seconds, a 30-minute counter at 3 o'clock and a 12-hour counter at 9 o'clock. The black dial stands out with its red-and-white 9 and 12 numerals, stylised in the image of the numbers featured on Lamborghini Gallardo LP560-4 sportscars.

CHRONOGRAPHS: BLACK IN FASHION

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BREITLING SUPER AVENGER 01, BOUTIQUE EDITION For the first time, the Super Avenger 01 chronograph features a manufacture calibre Breitling 01 in a special limited edition of 100 pieces, available exclusively from any of the 60 or so Breitling boutiques throughout the world.

The COSC-certified chronometer stands out with its black dial, featuring tone-on-tone dials enhanced by the red "Limited edition" inscription and large, luminescent hands and markers. The steel case combines an imposing 48 mm diameter with a very professional aesthetic. The chronometer, water-resistant to 300 m, has an ultra-robust construction with screwedin push-piece reinforcements and a massive screwin crown with non-slip relief. Your choice of strap: leather, rubber, high-resistance military textile fibre or steel. The special engraved caseback features a pin-up with a vintage appearance (here we go again!) and the words "Special delivery".

RICHARD MILLE RM 50-03 MCLAREN-F1 The RM 50-03 is the most lightweight split-second chronograph in the world at just 40 grammes, including the strap. This performance is accomplished through the use of highly technical materials – including titanium, TPT carbon and Graph TPT for the case – and a thoroughly openworked structure. The movement itself only weighs 7 grammes.

The TPT™ carbon cage attached to the case middle – the shape of which is inspired by the suspension wishbones of a McLaren-Honda Formula 1 – supports the calibre RM50-03. This atypical structure, which does not include a casing ring, guarantees that the movement is ideally integrated into the case. All these technical solutions provide the complex piece with extraordinary shock resistance, tested in-house with 5000 G shocks.

LONGINES AVIGATION BIGEYE The "winged hourglass" brand revisits one of its recent acquisitions as part of its Heritage collection: a chronograph with a 1930s design that takes its place in the great pilot watch tradition, the Longines Avigation BigEye. It features a very legible dial emphasising the minute counter, imposing push-pieces that may be handled while wearing gloves, and a 41 mm case containing the L688 column-wheel chronograph calibre produced exclusively for Longines.

The indications are perfectly easy to read against a semi-shiny black dial with Arabic numerals coated in SuperLuminova©. With an oversized 30 minute counter at 3 o'clock, a 12-hour counter at 6 o'clock and small seconds at 9 o'clock. A domed glass and brown leather strap complete this piece, surfing in on the vintage wave.

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Patek Philippe manual chronograph calibres: the devil is in the detail also directly affect the work of the watchmaker. The large ‘eccentric cap’ placed directly over the column wheel makes it easier to set, meaning greater operational reliability.

Moreover, the calibre has a sophisticated and instantaneous 30-minute counter. A rhythmic touch that enhances the sought-after readability.

But let’s go back a little further

CH 29 535 PS 224 CALIBRE

By Pierre Maillard

November 2009, Place Vendôme Thierry Stern made his first major appearance since becoming the new president of Patek Philippe. It was a dream event, as he had just presented the Ladies First Chronograph, which features the first manual chronograph movement made entirely in-house, the CH 29-535 PS Calibre. Behind this austere name (which becomes obvious when you know that ‘CH’ stands for chronograph, ‘29’ for the diameter – 29.6mm to be exact – ‘535’ stands for the height – 5.35mm – and ‘PS’ is for its Petite Seconde, or Small Seconds) hid a new, magnificent and very fine chronograph movement designed to replace and overtake the famous CH 27-70 Calibre, based on the Nouvelle Lémania (property of the Swatch Group), which had been used by Patek Philippe up until then. The programme took five years.

Although in 2009 the trend was for the most spectacular three-dimensional structures possible, this new Patek Philippe calibre, so eagerly anticipated by collectors of the brand, decided to play it ultraclassic: a column wheel with a polished cap, S-shaped toothed-clutch lever system, an elegant and refined chronograph gear bridge and minute counter gear bridge, large fourarm Gyromax balance and four poising weights vibrating at a frequency of 4 Hz, which is 28,800 vibrations/hour, and a Breguet balance spring. All of the 269 components are harmoniously contained in an extremely small space.

But under this most traditional of appearances, under these stylish pieces and old-fashioned chamfered, polished bridges adorned with the Côtes de Genève mo-

tif, under these refined, classically crafted surfaces, hide six new patents that aren’t looking to revolutionise watchmaking in terms of appearance, but that want to improve the substance – and that makes all the difference. Because watchmaking is all about detail.

These six new patents relate to a very comprehensive improvement of details that contributes to a deeper understanding of the art of the chronograph. Not only do they bring improvements in terms of better energy transmission, reducing friction, increasing precision and reducing vibrations or unevenness of the hand movements; they

In 2005, Patek Philippe had already introduced the flattest manual split seconds chronograph (5.25mm) ever created, reference 5959P – the first wrist chronograph to be entirely designed, developed and made by the manufacture. Produced in a traditional way and in a very small quantity in Patek Philippe’s fine watchmaking workshops, this prestigious movement features two column wheels and can memorise a reference time.

In 2006, it was the turn of reference 5960P, the first automatic chronograph entirely designed, developed and produced by the manufacture.

Enhanced with the famous patented Annual Calendar mechanism, this new automatic column wheel chronograph has a flyback feature, a power reserve display and a day/ night indicator. With its highly original construction, it offers an elegant, dynamic, balanced face as well as its

2009 – REFERENCE 7071 LADIES FIRST CHRONOGRAPH | CH 29-535 PS CALIBRE A new chapter in the history of Patek Philippe women’s watches with reference 7071, Ladies First Chronograph, equipped with a new traditional column wheel chronograph movement, the CH 29-535 PS calibre. Reference 7071 features an elegant, cushion-shaped pink gold case and contains 136 diamonds unusually set on the flange of the dial, highlighting the exclusivity of this women’s complication watch.

characteristic mono counter, which brings together the chronograph’s hours and minutes counters.

The same calibre would also go on to equip the Nautilus chronograph, but without its annual counter.

All these creations would lay the groundwork for the new manual calibre presented for the first time under the charm of the Ladies First.

In 2010, this same new CH 29-535 PS Calibre had just been used in the men’s reference 5170J. Very pure and stripped back, with no additional complications, in order to preserve its absolute readability, this chronograph features harmonious proportions that evoke the 1940s-1950s (a 39-mm diameter with a thickness of 10.90 mm and a lug width of 21 mm). One of the first to be awarded the Poinçon Patek Philippe, it stood out for the elegance of its stylish pieces, its traditionally crafted bridges, and the attention paid to the finish of all the surfaces, which are usually hand-decorated. An instant classic in the world of chronographs.

Having ‘overtaken’ the famous and historic basic 27-70 calibre of the Nouvelle Lémania, on which it had developed the most beautiful chronographs, Patek Philippe pursued a new area devoted to developing and perfecting the art of the classic chronograph.

In 2011, Patek Philippe bolstered this new line of chronographs with

2010 – REFERENCE 5170J | CH 29-535 PS CALIBRE The new traditional column wheel chronograph movement is presented in a yellow gold case with rectangular push-pieces, in a nod to the retro style of major Patek Philippe wrist chronographs from the 1940s-50s.

Reference 5170 embodies the classic chronograph in all its purity. It contains the new CH 29-535 P5 calibre, developed and produced according to Poinçon Patek Philippe standards.

a first complication with the CH 29-535 PS calibre, the Perpetual Calendar. Deriving from the 5270 reference presented in 2011, it is remarkably slim and slender, contains 182 components but only measures 1.65 mm (for a total movement height of 8.70 mm) The dial of the Reference 5270 perfectly expresses the classicism of its movement: day and month in a double window at 12 o’clock, pointer date display at 6 o’clock with integrated moon display, small seconds at 9 o’clock and instantaneous jumping 30 minute counter at 3 o’clock.

Following in a great tradition.

In 2012, this same Perpetual Calendar Chronograph calibre acquires a split seconds mechanism. It equips the Reference 5024 chronograph.

Here, too, the absolute classicism of the approach doesn't prevent the creation of two technical innovations that, once again, play on the perfecting of ‘details’: a new isolator system removes the permanent contact between the split seconds lever and its centre, which means that when the split seconds wheel stops it doesn’t affect the amplitude of the balance. Moreover, a subtle mechanism reduces the small alignment problems (by 75%) between the split seconds hand and the chronograph hand.

But as they say, the devil is in the detail! And that’s all the more true when it comes to chronographs.

2011 - REFERENCE 5270 | CH-20-535 PS Q GRANDE COMPLICATION CALIBRE Patek Philippe adds to its classic chronograph collection with the introduction of a new perpetual calendar model. Reference 5270 features a new column wheel chronograph movement, CH 29-535 PS Q calibre. The day and month appear in a double window at 12 o’clock, along with a pointer date display.

CHRONOGRAPHS

2012 – REFERENCE 5204 | CHR 29-535 PS Q CALIBRE GRANDE COMPLICATION Grande Complication Patek Philippe highly sought after by connoisseurs and collectors, the split seconds and perpetual calendar chronograph in platinum is available with a new ebony black dial with hands and applied chapter markers in white gold.

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CHRONOGRAPHS

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A curated selection of ten vintage chronographs The '50s, '60s and '70s were the apogee of the chronograph. These ten chronographs, selected from hundreds of models, demonstrate the technical vitality and creative liberty of these years, which continue to thrill collectors today.

MATHEY-TISSOT (~1970) With its Supercompressor case, its Singer dial that has browned with age, its minute counter with regatta markers and a bright red direct-drive seconds hand in the same hue as the markers, this Mathey-Tissot chronograph is flawless. The 40 mm watch is of a considerable size for the time, bringing it a certain modern touch. This magnificent piece is driven by the faithful, robust and handsome Valjoux 72 calibre.

Selection and comments by Lorenzo Maillard, collector

ZODIAC – ZODIA-CHRON (1953) For many years, Zodiac was considered a watchmaker that never failed to push back the limits of design.

The Astrographic and Olympos might demonstrate this, but the brand's boldness is not limited to three hands, and the Zodia-Chron perfectly embodies its creativity. Launched in 1953, this luxury chronograph appeared on the market one year before the Rolex Cosmograph Pre Daytona models were released. This chronograph has it all: the Valjoux 72 (the Rolls Royce of chronograph movements), a tachymetric bezel rather similar to that of a Speedmaster, and a sublime brushed dial with infinite undertones and subtle red touches on the markers. Difficult to capture in a photograph, this rare, elegant piece features a design with a nearly perfect balance so characteristic of the time.

SEIKO 7A28-703 SYNCHROTIMER (1983) Some people call this timepiece the Poor Man’s Speedmaster. I wouldn't go so far, but it is undeniable that the 7A28-703 Seiko Synchrotimer chronograph has its own special identity. First of all, it is necessary to point out that this chronograph has a quartz movement... But not just any quartz movement: it is a mechanical/quartz combination with an independent motor for each sub-counter and 15 jewels on the mechanical part. The electronic portion offers a reliability and precision far beyond the performances of a strictly mechanical movement. The built-in strap and gold-tone part of the tachymeter bring it a unique, very '80s look. In fact, this watch has a special pedigree, since another version of the 7A28 was worn by Roger Moore in the James Bond film A View to a Kill.

MIDO MULTI CENTERCHRONO (~1940) Once you get into the production and history of the brand Mido, you will be amazed by the variety of products and their unique aesthetic, characterised by a surprising orange patina. The Multi Centerchrono, developed in the midst of WWII, offers a striking design and a higher legibility compared to a twocounter chronograph. In fact, the minute counter is located in the white area surrounding the dial, and the red direct-drive hand indicates passing minutes. With its modest 34.5 mm diameter, the Mido is characteristic of pieces from the 1940s which symbolise the golden age of watchmaking design. Equipped with the 1300 calibre based on the Valjoux 23, this Mido is not just another pretty face; it is noble and reliable. Beautiful inside and out!

CHRONOGRAPHS

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LONGINES CONQUEST 1972 OLYMPICO For Longines, the Conquest ref. 8614 is the quintessence of 1970s watchmaking design. It was designed for the Games of the XX Olympiad in Munich, held in 1972, which became unfortunately memorable because they were interrupted by a terrible tragedy.

The watch is driven by an in-house manufacture single-push-piece chronograph. Its rudimentary simplicity reflects its utilitarian profile, bringing it a unique charm. The dial makes me smile, personally, since the single counter at 3 o'clock brings to mind a monocle and I can't help but think of Mr Monopoly.

ANGELUS MEDICAL CHRONOGRAPH (~1965) No need to be a doctor to appreciate this timepiece

by Angelus. The brand, renowned for its manufacture calibres, brings us a truly functional tool in an aesthetically appealing form. Designed to calculate patients' heart rates, the chronograph can be used to time either respiration or pulse. A particularly surprising detail: the plexiglas crystal features a cyclops that covers the base 10 pulsation section of the dial. This piece, equipped with a modified version of the Valjoux 22, is particularly rare, especially with the two-push-piece configuration.

CITIZEN RECORD MASTER (1967) A lot of people are familiar with the Citizen Bullhead chronograph, but few know that the Japanese brand also produced a hand-wound and column-wheel mechanical chronograph.

Its limited production and late launch, in 1967, only brought it only modest success.

Nevertheless, this chronograph has real charm.

Its streamlined aesthetic, mechanical simplicity, rudimentary display (devoid of a minute counter), lovely steel strap and reasonable price all make it a unique, truly desirable object.

UNIVERSAL GENÈVE SPACE COMPAX (~1969) Universal and its chronographs require no introduction: they are renowned and sought-after by collectors, but this rare – and, to say the least, original – example deserves special attention. Its case becomes deliberately thicker around the push-pieces, much like the case of its cousin, the Polerouter Sub; its screw-in crown and rubber push-pieces betray its diving capacities.

In fact, with a water resistance of up to 200 metres, this Universal is one of the last "tool watches" produced by the Geneva-based watchmaker, which began producing practically all its watches in quartz shortly afterwards. As if that weren't enough to set it apart, the art deco 12 hour marker adds a funky little touch that makes this watch truly lovable.

WAKMANN TRIPLE DATE CHRONOGRAPH REF. 72.1309.70 (~1960) Wakmann Watch Company is an American brand founded in 1946 that became famous through its partnership with Breitling, for which the company retailed “Wakmann” brand watches designed for the American market. The Triple Date Chronograph is surely the brand's most successful model. Equipped with the Valjoux 730 (a more high-performance version of the Valjoux 72 at 21600 vph), it features not only a chronograph but also displays the date, day and month, making it the perfect tool for daily use. Despite all these complications, the magnificent "panda" dial remains balanced and understated.

SEIKO 5718 OLYMPIC CHRONOGRAPH (1964) Produced for the 1964 Olympics in Tokyo, the reference 5718 is surely the rarest chronograph – if not the rarest timepiece – ever produced by the Japanese watchmaker.

Its cousins, the 5717 and 5718, were also designed for the Olympics, but they are more rudimentary, since they do not feature a minute counter or the incredible manual counter. The manual counter, which is activated by the left-hand push-pieces, was probably designed to count runners crossing the finish line. By activating the upper push-piece, you progress along the numbers 0 to 9 in the counter to the right, while the lower push-piece activates the counter to the left.

The minute counter also includes a seconds hand. The column-wheel movement that drives this exceptional piece was manufactured by Seiko exclusively for this model. Its scale-design strap brings a unique harmony and truly Japanese soul to the chronograph.

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Montblanc, watchmaking in the design era I should point out that Minerva has always been more focused on the product than on its own brand.

Its primary role was as a supplier. Minerva watches are rather rare.

Today, our movements are signed Minerva, and we have extended the life of the manufacture. That seems to me to be coherent. With Minerva, we have a truly creative laboratory, along with the brand’s technical and design heritage, which encompasses dials and cases as well as movements. The company archives are a rich source of value. We have already begun to exploit Minerva’s heritage through our 1858 and TimeWalker collections. The RallyTimer, for example, brings back Minerva’s stopwatch spirit. Stopwatches were the computers of their day! They were true instruments, with very clear requirements in terms of readability.

Why are vintage and tool chronographs so sought-after at auction? Is this minimalism a passing fad or a genuine groundswell?

After years of mechanical escalation, the industry finally seems to be reining in. We meet Davide Cerrato, head of Montblanc’s watch division, who turns his keen eyes on the ongoing changes, and reveals his satisfaction at this newfound appreciation of simplicity.

Interview by Serge Maillard

Europa Star: If we compare current watch production with that of five years ago, it seems like the aesthetic codes have been toned down.

Many new watches today are strikingly similar to models from fifty years back, while the 50-yearold originals are doing very well at auction, particularly chronographs and sports watches.

Davide Cerrato: Let’s take a step back. In the 1970s, quartz came as a terrible shock for the Swiss watch industry, and the industry’s response was to make mechanical watches even more technical. At the same time, design fell somewhat by the wayside.

The 2008–2009 crisis marked the beginning of the end of this technical phase. We have returned to an era of design, and a desire to take the best of mechanical craftsmanship and form. In watchmaking, as in any industry, design determines the first impression; it’s the most important element. Today, we are increasingly attracted to minimalism, and we can see the importance of

Speaking of readability, it’s easy to feel lost amid Montblanc’s continuing expansion – perhaps a legacy of Jérôme Lambert’s creative activism – which now stretches from smartwatches to grand complications.

What is Minerva’s role within this very broad range of products?

Montblanc 4810 ExoTourbillon Slim

Photography Fabien Scotti

Just as the fragrance industry has its “noses”, Davide Cerrato is known as an “eye” in the watch business. This Italian native, ever charming and impeccably groomed, now places his visual acuity at the service of Montblanc’s watch division, having contributed significantly to turning around the fortunes of Tudor, a company now enjoying a new golden age thanks to the winning formula of chronographs, vintage chic, accessible pricing and legibility, which at the same time has sparked a resurgence in the brand’s value at auction.

So, why Montblanc? Because... behind Montblanc, there’s Minerva. It was Montblanc’s acquisition of this historic manufacture, known for its stopwatches, that first drew Davide Cerrato’s attention. Minerva celebrates its 160th anniversary next year, which provides a convenient opportunity to take stock of the main aesthetic trends in the market.

The age of technical extravagance seems to be drawing to a close, and the conversation is now turning to design and minimalism.

Montblanc ExoTourbillon Chronographe

design. The question we should ask is not what we can add, but what we can remove from our watches.

Let’s not forget that the raison d’être of a watch is primarily to be a measuring instrument. We are reclaiming the watch’s primordial features; the legibility of sports watches, which is so keenly appreciated today, and their purely functional quality. A new cycle is beginning, drawing inspiration from vintage models.

This cycle isn’t necessarily favourable for today’s watchmakers. On the one hand, many new entry-level players are targeting young people by using vintage inspiration to create a luxury image at a competitive price. And on the other, many collectors seem to prefer the originals, and are turning to auctions!

I don’t believe that this is blurring the lines of luxury, because the difference between a luxury item and a fashion item rests on two elements.

First: analytical depth, which means that you can continue to explore your past and learn from every

THE OBJECT:

“I’ve just returned from London, the only place where I can comfortably go out wearing a British bowler hat. I love hats. In fact, I recently treated myself to an American park ranger’s hat! In Switzerland people don’t wear hats so much, and that’s a shame. Someone once asked me what I wanted to bring to the watch industry. Style!”

stage. And second, technical quality; we have conducted research into materials, which has led to the development of watches like the TimeWalker Pythagore UltraLight Concept, which weighs less than 20 grams. It could scarcely be more minimalist. It is here that design meets innovation.

Moreover, I believe that every era experiences its own cycle of rebirth, creating new collectors. In my view, the markets for new and old watches have always coexisted. Retailers have always stocked second-hand watches. Vintage is part of the system.

Nevertheless, the internet has multiplied the possibilities for buying and reselling second-hand watches.

That has to change things, doesn’t it?

It’s true that these days, not only does everyone own a watch, but every-

one can become a watch trader. It’s an amplification of a pre-existing phenomenon.

Some brands are now trying to take control over second-hand watch sales, and over the destiny of their old products. Is Montblanc one of them?

No, this applies mainly to more high-end brands. But I won’t rule out the idea of paying closer attention to auctions in the future.

Today, events like Only Watch provide a benchmark for the value of a brand’s heritage.

Let’s talk about your heritage. Next year marks the 160th anniversary of Minerva, which is now part of Montblanc. Why did you not revive the Minerva brand, given that it is greatly appreciated by connoisseurs?

The integration of the Minerva manufacture has enabled us to create high-end pieces like the ExoTourbillon, and we can now apply these innovations more widely to the rest of the company’s products. The ExoTourbillon is a good example, because it then gave birth to the slim model.

Our stock-in-trade is simple: mechanical watches. We do mechanical watchmaking with a high intrinsic value, a good entry price and, in addition, some very accomplished complications. The Summit smartwatch has broad appeal with Millennials, and we are now applying our vintage dial designs to smartwatches.

But you have identified an important element: we will gradually move from ten to six collections, to make our company’s offer more “legible”, with a fundamental demarcation between sport and heritage. For each theme, we offer a broad range of fine watchmaking, at the right price positioning. There is no reason for us to change our strategy, as some brands are doing, because we have always built our brand around the concept of fair value.

Our core business remains the segment between 2,000 and 5,000 US$, but we also have ranges between 20,000 and 100,000 US$.

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