Europa Star 4-10 by Europa Star HBM

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THE SWISS WATCH PLANET IN MOVEMENT

EUROPE EDITION All Europe - EEC, Central & Eastern Europe, Russia

N° 302 4 /2010 Aug. / Sept. 04

THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

770014 260004

CH F 1 2 / € 1 0 / U S $ 1 0

1 Exclusivity 1 Chronographs 1 After sales service 1 Sapphire crystal

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No other watch is engineered quite like a Rolex. The Submariner, introduced in 1953, was the first watch to be water resistant up to 100 metres. It was later strengthened by its patented triple-seal Triplock winding crown, making it capable of withstanding depths of up to 300 metres. The new 40 mm Submariner is presented here in 904L steel with a green Cerachrom disc.

t he subm a r iner

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EDITORIAL 1

The Pâté de Veillée and the Enterrement des Veillées

In his book published in 1942 called Les Cabinotiers Genevois, Eugène Jaquet, who was then Dean of the Geneva Watchmaking School, reminisced about his experiences as a young watchmaker during the latter part of the 19th century. Among his memories, he related a delightful custom: the Pâté de Veillée and the Enterrement des Veillées. The Pâté de Veillée (literally, the pâté of the evening gathering) was the name given to a ritual dinner, enjoyed by the workers together and paid for by their boss, which marked the beginning of the long winter with its short days and long nights. More precisely, the term Les Veillées came to mean the long autumn/winter period when the sun set early and the workers had to depend on the weak light given off by their oil lamps. At the end of this difficult period, the term L'Enterrement des Veillées (literally, the burial of the evening gatherings) marked the return of the longer days and of the sunlight. This dinner feast was held on “the first Monday of the week during which people could dispense with the lighting of the lamps.” For this festive meal, it was the turn of the workers to pay for their boss. “And it was woe to anyone who did not have a solid enough constitution to resist the dance of the bottles… A medal was given to the person who, on this occasion, was the least able to imbibe in moderation, and he held this honour until the next meeting,” wrote Eugène Jaquet. Photo: Maerky Workshop, Grand Lancy 1898

It would be nice to dream about such conviviality. But wait, if you think about it, it does still exist today, and we have even encountered it. But admittedly, it is only at the ‘small’ places that we have seen this particular type of sociability—in the ateliers, in the modest factories, in the Jurassian folds of the fabric of small watchmaking ‘factories’. In the large companies, things are different. The director of the Human Resources department (whose acronym HR is chilly to say the least) keeps a very professional eye on the optimization and lubrication of social relations and human interactions. As its name indicates, the human has indeed become a resource. And if the human is a ‘resource’, a ‘commodity’, then he is no longer a ‘purpose’ or a ‘reason’. Ah, but this is nothing new. Eugène Jaquet deplored this state of affairs already back in 1942, when he wrote, “In earlier times, these customs were de rigueur in all serious ateliers. They have unfortunately disappeared today given that in the current factories, which have replaced the majority of the ateliers, the workers know each other very little”. And when people know each other only “very little”, they hardly ever party or socialize together. We were thinking about all this, as summer opened before us, while walking through the hallways of the EPHJ event in Lausanne, which brought together a vast assortment of watch subcontractors. Contrary to the more ‘starchy’ brands, these people know how to party together—even when things are not all that rosy. Marketing has no hold over them, and they spoke more frankly and freely at this show than in the corridors of BaselWorld. In a word, the atmosphere there was more ‘convivial’. It was more ‘human’. It was also more ‘cash’ and less ‘intention’. So, you might ask then, what was the gossip at the EPHJ? Well it seems that the large

R Pierre M. Maillard Editor-in-Chief orders from BaselWorld have not, by far, followed through. We also heard that many suppliers have not even seen confirmation of their first parts order from such and such brands, which themselves had proclaimed that their own order books were overflowing. Other talk centred on the current situation—in other words, if the train was finally leaving the station, it was doing so at a very slow pace, to say the least. Yet, at the same time, we read the monthly statistics from the FH: “The Swiss watch industry appears to have found its cruising speed in the spring. The value of exports in May grew by 13.0 per cent to a level of 1.2 billion francs. This two-digit increase also had a strong positive impact on the moving average over twelve months, which should see a return to growth towards the end of the summer.” Hmmm, these numbers tend to invite a few questions… Are these statistics merely pretence, a sham? What do they really mean in light of the comments from the subcontractors? Is there a Chinese element in the mix? Are the stocks actually selling or are they simply making a trip around the planet? Whatever the situation, let’s take advantage of the fact that it is still summer, that we don’t need to ‘light the lamps’, and that we can happily put the long nights behind us. And let’s hope that we won’t have to swallow too many ‘pâtés’ in the weeks and months ahead.

4 CONTENTS europa star

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THE WORLD’S MOST INFLUENTIAL WATCH MAGAZINE EUROPE

N° 302 4/2010 AUG./SEPT.

EDITORIAL The Pâté de Veillée and the Enterrement des Veillées

HOMAGE A homage to Nicolas G. Hayek

COVER STORY The very consistent Duomètre à Quantième Lunaire

INTRODUCTION Movements: a progressive return to the 1950s?

MANUFACTURING The Swiss watch planet in movement – Part I

SOPHIE’S CHOICE Ladies’ complications fit for a princess

CHRONOGRAPHS Inside the chronograph

MARKET REPORTS – CHINA Tianjin Sea-Gull Watch

EXCLUSIVITY Is exclusivity the final frontier of luxury?

48 52

BRANDS Eberhard’s new assets From AJS to Chevrolet

BEHIND THE SCENES Crystal clear

AFTER SALES SERVICE Servicing mechanical watches – an opportunity to shine

POST CARD Postcard from San Diego – Training with the Navy SEALs

RETAILER PROFILE Scottish time: Hamilton & Inches, Edinburgh, Scotland

THE EUROPA STAR KNOWLEDGE Training retail salespeople the world over

WORLDWATCHWEB® The secret of successful watch brand videos

EDITORIAL AND ADVERTISERS’ INDEX

LAKIN AT LARGE – A TRIBUTE TO NICOLAS G. HAYEK Stop all the clocks

DUOMÈTRE À QUANTIÈME LUNAIRE by Jaeger-LeCoultre 18-carat pink gold timepiece equipped with Jaeger-LeCoultre’s calibre 381 with a 50 hour power reserve. Hours, minutes, seconds, twin power reserve, date, moon phases and jumping seconds; silvered eggshell beige dial, alligator strap and water resistance to 50 metres.

Manufacture Jaeger-LeCoultre Rue de la Golisse CH-1347 Le Sentier Switzerland Tel: +41 21 845 02 02 Fax: +41 21 845 05 50 www.jaeger-lecoultre.com

Europa Star HBM SA 25 Route des Acacias P.O. Box 1355 CH-1211 Geneva 26 Switzerland Tel +41 (0)22 307 78 37 Fax +41 (0)22 300 37 48 www.europastar.com contact@europastar.com © 2010 EUROPA STAR Audited REMP 2009 The statements and opinions expressed in this publication are those of the authors and not necessarily Europa Star.

THE SIMPLICITY OF INNOVATION. LUMINOR 1950 8 DAYS GMT Hand-wound mechanical movement P.2002 calibre, three spring barrels, second time zone with 12/24 h indicator, 8-day power reserve with linear indicator, seconds reset. Steel case 44 mm Ă&#x2DC;. Steel buckle.

www.panerai.com

Available exclusively at Panerai boutiques and select authorized watch specialists.

MEMENTO MORI FOR NICOLAS G. HAYEK On the eve of the death of Nicolas G. Hayek, the 28th June, I found these two photos, side by side on my desk: the latest and most sublime Breguet Tradition, skeletonized to the bone and a fine example of today’s greatest horology, and one of the most recent propositions by Swatch & Art, a plastic momento mori, signed by a Chilean artist, Ivan Navarro. ‘You Stop You Die’ is the name of this watch, whose hours are indicated by a skull and crossbones. This is exactly what

happened to Nicolas Hayek, who passed away at work, as the time came for his heart to ‘stop’. Between these two watches, between these two extreme art forms and watchmaking economies, lies the extraordinary journey of a man who, in his own way, was a genius. We never stop measuring the time that passes us until our time comes. May a tribute be given to this man, who lived life to the full and has left a beautiful chapter in the history of our industry.

T H E

J E A N

D U N A N D

W W W. J E A N D U N A N D. C O M

P A L A C E

8 COVER STORY europa star

THE VERY CONSISTENT DUOMÈTRE À QUANTIÈME LUNAIRE RPierre Maillard

Exactitude, precision and chronometry are at the core of research in timekeeping carried out by Jaeger-LeCoultre. These words are not merely a marketing slogan but a veritable watchmaking quest as was recently demonstrated by the results of the Concours Chronométrie 2009, organized by the Watchmaking Museum in Le Locle. The Swiss Manufacture won the first two prizes with its Master Tourbillon that took the highest honours (909 points out of 1000), and that was immediately followed by the Reverso Gyrotourbillon in second place with 908 points out of 1000. “We had to take part in this competition because this measurable precision determines the quality of our products,” declared Jérôme Lambert, CEO of Jaeger-LeCoultre during the event. This important requirement for chronometry, epitomized in the competition by its tourbillon watches, can also be found in the brand’s other approaches to timekeeping, some of which are totally original. Among them is the very innovative ‘Dual-Wing’ concept that gave birth to the Duomètre collection. Inaugurated in 2007 with the first Duomètre à Chronographe

timepiece, this collection has added a second realization this year—the Duomètre à Quantième Lunaire.

Constant force duality The development of the ‘Dual-Wing’ answers a particular need. In traditional watchmaking, the addition of a complication to a watch’s basic functions (hours, minutes, seconds) produces certain types of interferences by siphoning off some of the energy from the barrel. These alter the constant flow of power delivered by the barrel to the gear train and the escapement. This is because the activation of a function that is not constantly driven by the gear train, such as the activation of a chronograph or a chime or even the passage of the date, for example, requires a certain amount of energy, thus mechanically causing a small drop in the amplitude of the balance. By taking a small amount of energy from the barrel for its own requirements, every complication causes a small variation in the time measurement. Placed end to end, these variations can distort the high precision and chronometry of this measurement over the long term.

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COVER STORY 9

10 COVER STORY europa star

The challenge for the watchmakers at JaegerLeCoultre was how to overcome this difficulty—one that is inherent to classic timekeeping. In the end, they came up with a truly revolutionary solution. They would place two independent watch mechanisms into the same calibre, each driven by its own barrel and synchronized by a jumping seconds hand (seconde foudroyante) driven by the escapement. Thus, by separating the energy of the movement from that of the complication, a constant power supply can be maintained to the regulating organ.

Coordination of the jumping hands In the Duomètre Chronographe of 2007, the first gear was used uniquely for time measurement while the second was dedicated to the chronograph. The Duomètre à Quantième Lunaire, based on the same innovative idea, functions differently, however. Its new Calibre Dual-Wing Jaeger-LeCoultre 381 is divided into two sections, each with its own barrel and spring motor supplying a power reserve of 50 hours. Both, however, are wound by the same crown that, depending on whether it is turned clockwise or anti-clockwise, winds one barrel or the other. The first mechanism is dedicated to the hours, minutes, seconds, jumping seconds, date and lunar phases. The second is exclusively used for the escapement. These two

distinct mechanisms are coupled and coordinated by the jumping seconds hand. The Duomètre à Quantième Lunaire therefore has two seconds hands: a traditional seconds hand and a jumping hand, which makes six jumps per second, giving it an accuracy of 1/6th of a second. Their two escapement

wheels are positioned on the same axis. One functions with the palettes and the other drives the star of the jumping seconds. When the crown is pulled, the two hands return instantaneously to zero while the escapement mechanism continues to tick and the balance remains working (in the traditional stop seconds, the balance stops). When the crown is pushed in, the two perfectly coordinated hands continue working simultaneously. The gears of the hands mesh instantly with the time measuring mechanism that has remained active, and then immediately start turning at the watch’s rhythm— 21,600 vibrations per hour (3Hz). The adjustment of the top of the hour is now nothing more than an illusion, as in most cases (this is

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COVER STORY 11

the reading of the two power reserve indicators whose functions are directly engraved on the barrels.

Superlative finishing

because when a balance stops, it takes several minutes before it regains its vibrating precision), but it is a tangible and measurable reality.

The outside and inside The dual technical nature of the movement of the Duomètre à Quantième Lunaire expresses itself aesthetically with a dial whose surface is finely grained and which is exceptionally readable. The dial itself is clearly divided into two distinct zones. The hours and minutes are displayed in a counter on the right side of the dial with the large seconds hand at the centre. The jumping seconds is in a counter located in the lower part of the dial while the date and lunar phases are displayed on the left.

The date scale with its blued hand is carried on the edge of the lunar phases that appear in a window. This moon indicates the lunar phases in the northern hemisphere. As for the southern hemisphere, the moon phases are displayed by a double hand that points to the age of the moon. The natural lunar cycle is exactly 29.53 days but its mechanical indication, based on a traditional star with 59 teeth, is ‘only’ 29.5 days. The resulting variation—44 minutes and 2.8 seconds per month—can be corrected using a pusher piece located at 12 o’clock at the edge of the middle case. In the lower part of the dial, on either side of the jumping seconds counter, two openings partially reveal the movement and permit

On the back of the watch, under a sapphire crystal, can be found the extraordinary architecture of this very special movement whose meticulous finishing emphasizes the watch’s dual nature. Bevelled with polished sinks, the mechanism’s bridges that are used to measure time have straight and rectilinear lines, while those used for the date and lunar phase complications are made up of arabesque motifs. The two barrels are spiralshaped and hand bevelled. The ratchets are brushed with sunray motifs and engraved with gilded indications for the ‘movement’ and for the ‘hour/minute’ functions. The surfaces of the wheels and pinions have been softened and spiral-shaped. The screws are flame-blued, and the ébauche itself is, as in the most traditional timekeepers, carved in non-treated nickel silver. The traditional qualities of this totally innovative movement are also found in the design of the 42mm case that, with its brushed, polished, and satin finished surfaces and curved sapphire crystal, is inspired directly from the pocket watches created during the long history of the Manufacture. Water-resistant to 50 metres, the case features soldered lugs, a pusher piece at 10 o’clock that is used to correct the date, and a pusher at 12 o’clock for correcting the lunar phases. Produced exclusively in precious metals, the Duomètre à Quantième Lunaire comes in an 18 carat yellow gold version available in a limited series of 300, as well as a non-limited series in 18 carat pink gold. It comes mounted on a black or chocolate alligator strap with an 18 carat gold fold-over clasp. O

MILUS INTERNATIONAL SA | 2502 BIEL-BIENNE | SWITZERLAND T : +41(0)32 344 39 39 | EMAIL : INFO@MILUS.COM

12 INTRODUCTION europa star

Movements: a progressive return to the 1950s? RPierre Maillard

Our publishing house, which was originally called Hugo Buchser SA after the name of its founder, used to publish (until 1986) the famous Le Guide des Acheteurs (The Buyer’s Guide). This was before the Internet—it was certainly another world then. For people interested in watches, this guide uide contained all the addresses in Switzerland’s and’s vast industrial watch sector. Out of curiosity, iosity, y I dusted off our archives and found The Buyer’s uyer’s Guide for 1951. The first thing I looked for or was the section on “Movements” to learn who made them during this time. I found 268 makers of palettes-type movements (this figuree did not include the cylinder-type Roskopf calibres). alibres). Among these fabricants were 50 in Bienne, enne, 50 in La Chauxde-Fonds, 28 in Genève, e, 24 in Tramelan, and 17 in Granges. This vast st assortment began disappearing, starting already in the 1930s, as these concerns weree gradually acquired, absorbed or swallowed up by other companies. In their place came increasingly asingly powerful companies such as Ebauches ETA, es SA, ETA T , l'ASSUAGSIHH, the SMH in 1985, and finally the Swatch Group in 1997. At this time, me, the huge majority of Swiss ébauches came from ETA ETA. T . Little by little, new movements ments began surfacing here and there. As mechanical echanical movements regained their former glory—in ory—in a progressive and spectacular fashion—independent —independent master watchmakers were the first to demonstrate that mechanical timekeeping keeping had not yet played all its cards, far from it. Immense terrains were yet to be explored. This period marked the birth of a ‘new’ ew’ type of mechanical watchmaking that, bit by bit, would leave an

indelible impression on everyone. But, between artisanal-style production, as perfect as it might be, and the realities of industrial-scale manufacturing, there was a huge abyss. And to pass over this large gulf required large investments. Watchmakers hesitated. After all, ETA was there with its durable tractors that had proven their worth over a long period of time. But the greatest push to finally span this wide divide was given by the late Nicolas Hayek when he announced in 2002 that ETA T would discontinue its delivery of ébauches and kits starting in 2006 (this measure was delayed until 2011). The threat of no longer having a supply of calibres resulted in a race for brands to verticalize their production. This was possible—from a financial standpoint—by the fact that, during this time, powerful and competitive groups began forming, namely Richemont and

LVMH. Rolex was also nearly autonomous, and practically everyone else began surfing on one of the largest euphoric waves in the history of Swiss timekeeping. Today, while the markets are not doing so well, a new industrial tool has been put into place and is ready to go. A new industrial fabric has been partially reconstituted and initiatives abound. It is now necessary to make these large investments pay off. Europa Star takes a look at the various players p in this arena in a two-part series. In this issue, we examine the direct alternatives to ETA, while in the next issue, we will delve into the explosion of in-house movements. O

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14 MANUFACTURING europa star

The Swiss watch planet in movement RPierre Maillard

On December 18, 2009, the late Nicolas Hayek sent tremors through the microcosm of the Swiss watch industry. In response to questions asked by Bastien Büss of the business publication AGEFI, Hayek made no attempt to hide his bad mood when he angrily answered: “We have reached a point of no return, of frustration, and of anger on the part of our personnel as regards the deliveries to third parties, that is to say, to other brands. We are going to officially ask permission from the Commission for Competition [COMCO] to be relieved of our obligation to sell movements to everyone or quite simply to third parties.” Hayek’s decision concerns “everything that is produced by our industrial pole: movements, regulating organs, and all other watchmaking components such as escapement parts— palettes, gears, palette wheels, balance plate—and oscillating parts such as balances and balance springs.”

The shock was total and, if COMCO acquiesces, the blow will be felt from now to years to come. It is well known that to design and create a movement—despite the new computer-assisted tools—we are looking at years of development.

The blood flow of the Swiss industry The Swatch Group and its industrial arms (essentially ETA, Nouvelle Lemania, and Frédéric Piguet for movements; as well as Nivarox-FAR for other components—balance, regulating organs) can be compared to the blood flow that nourishes a large body of the Swiss watch industry. It is one thing to slowly bleed the body, which finds itself already in a weakened state, but when a tourniquet is applied and tightened, doesn’t the onset of gangrene become a real threat? In the same interview, Nicolas Hayek clearly declared, “The Swatch Group never ceases investing in its industrial tool [citing amounts of 1.7 to 2 billion francs over the last few decades], yet the majority of other watchmakers treat us like a supermarket while they only invest in marketing.”

It is true that those watchmakers who now wonder what the future holds for them have, in their own way, blithely sawed off the branch they have been sitting on, and with no thought of the consequences. As an anecdotal example—but one that is fairly representative—a long-time observer in the watch arena recently explained that “up to the middle of the 1990s, ETA gave a discount of five percent to any watchmakers who mentioned the ETA origin of their movements in its communication.” Clearly, there was no reason to invest in the fabrication of their own movements, quite the opposite. But since then, the winds have changed and watchmakers were already warned before this happened. In his harsh way, Nicolas Hayek actually did them a favour in 2002 when he warned that as soon as possible—according to the decision of the COMCO, this measure will take effect in January 2011—his group would first stop the delivery of ébauches and kits, and only sell finished (and decorated) movements. This decision forced most of his competitors to speed up their processes of integration and industrial verticalization, which also boosted business for a few independent suppliers

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MANUFACTURING 15

The ETA 2826-2 MECHANICAL BIG DATE CALIBER

which previously had been limited to assembling and personalizing ETA movements that they received in kit form. This non-delivery declaration has also had ‘collateral’ effects on the dense industrial fabric of the Lemanic and the Jurassian Arc regions (and even beyond the border). This re-industrialization effort—which we can now gauge— owes everything, or much at least, to the determination of the Hayeks (and the son, now, will certainly follow the same path) to turn off the tap and the flow of movements. When all is said and done, however, this decision may well prove to be a beneficial one in many respects.

A few numbers Even without precise numbers, it is estimated that the Swatch Group has between 60 and 70 per cent of the market for mechanical movements, with approximately 3 to 3.5 million movements out of a total of 5.1 million mechanical calibres produced annually in Switzerland (2009 statistics). Doing the math, it is clear that ETA and the other Swatch Group entities equip nearly two out of three watches. If we add the 600,000 or so watches produced quasi-totally every year by Rolex, this means that out of the 5.1 million total movements, the remaining 1 million are made by all the other companies combined. As HenryJohn Belmont, consultant and former head of Jaeger-LeCoultre, explained recently at the Forum de la Haute Horlogerie, “It is certainly not the individual brands that will succeed

alone in providing the investments necessary for the production of 1 or 1.5 million movements. The fabrication of 250,000 basic ETA 7750-type calibres requires an outlay of the order of 100 million francs and 200 to 250 employees. Aside from these amounts, the crucial problem is a lack of qualified personnel if it actually becomes necessary to find 800 to 1000 people, or even 1500 depending on the need.” We are not yet at this stage, however, since Hayek deliberately qualified his threat, reserving the right to “continue deliveries under certain conditions—and why not?—to a few loyal, serious, and historical clients.” As for the others, he is no longer interested in them. “They have to invest or to join together,” he said, adding with a touch of irony, “Everyone claims to be a manufacture and to be able to

produce in-house all the parts of a watch, even the most complicated ones.” So, get to work! Whatever happens, the COMCO will certainly be called upon to take a final decision, and before that happens a lot of water will flow under the bridge—time for the market to speed up its vertical integration and the diversification of its offer. In light of this situation, what have watchmakers been doing? Since 2002, we have witnessed a ‘triple play’: the rise in strength of industrial companies offering direct alternatives to ETA; the accelerated industrial verticalization of brands creating their own inhouse movements; and an explosion in the number of special semi-industrial movements in the mechanical haut de gamme sector. SKELETONIZED ETA 2894S2 CHRONOGRAPH CALIBRE

16 MANUFACTURING

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I. CLONES AND ALTERNATIVES The largest and the most ‘faithful’ supply of basic ETA-type movements, in all senses of the term, is provided by Sellita. Right after the announcement of the delivery stoppage of ETA kits, Sellita—which assembled and customized approximately 30 per cent of ETA ébauches for third parties—launched its own production of cloned calibres whose patents had expired but which formed the basis of ETA’s historical offer. These include the famous and indestructible ‘tractors’, namely the ETA 2824, 2834, 2836, and 2892 series, as well as the Valjoux 7750. The production of the Sellita range, SW 200, SW 300, and SW 500 is estimated to be around 1 million pieces per year. The advantages of these movements are Sellita’s competiveness and the fact that they are perfectly compatible with the

SW500 Calibre by Sellita. Alternative to the ETA 7750 movement. Automatic chronograph, 25 jewels, 28,800 vib/h (4 Hz). Diameter: 30.00 mm. Height: 7.90 mm. Hours, minutes, small seconds. Automatic ball-bearing winding-mechanism. 60-second chronograph, 30-minute and 12-hour counters. Date and day, corrector. Stop-second device. SW300 Calibre by Sellita. Alternative to the ETA 2892 movement. Automatic, 25 jewels, 28,800 vib/h (4 Hz). Diameter: 25.60 mm. Height: 3.60 mm. Hour, minute, and centre seconds. Automatic ball-bearing winding-mechanism. Date, corrector. Stop-second device.

ETA movements, thus assuring global aftersales service. From Anchorage to Timbuktu, there will always be a watchmaker who has experience with ETA movements and who is therefore capable of repairing the Sellita clones. Acquired in 2008 by the Festina group, Soprod has also created an alternative to some ETA calibres. Under the name Alternance, the first calibre off the assembly line was the A10, a basic movement that is totally compatible with the

famous ETA 2892. It required an investment of around CHF 18 million. (According to some experts, the student has even surpassed the master.) Other models will follow, notably a large date as well as a chronograph, already announced but apparently still not quite ready. Soprod’s stated goal is to gradually increase its capacities to a production level of 300,000 movements—a goal that is still a way off. Another company producing ETA clones is La Joux-Perret, with an annual capacity of around 60,000 to 80,000 movements. Among these, half are ETA clones and the others are in-house calibres with ‘high added-value’, such as a flyback chronograph. Basically, La JouxPerret wants to concentrate its development in the high-end category by creating ‘specialties’ that the brand intends to reserve for reliable Soprod movement

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MANUFACTURING 17

“DRESSAGE ANNUAL CALENDAR” by Hermès Retrograde-type mechanical self-winding annual calendar display on a 225° segment. Hermès Calibre H 1930, 12 lignes made by Vaucher Manufacture. 28,800 vibrations per hour (4Hz).55-hour power reserve thanks to a series-coupled twin barrel, 330 parts. Hand-chamfered and polished bridges and mechanisms. Exclusive Hermès decorative motif (sprinkling of “H”s). Oscillating weight in 916 (22ct) gold.

brands with whom it has already developed and is currently developing special projects. In this regard, we can mention collaboration with such brands as Hublot as well as the Richemont Group (for Panerai among others) and LVMH (TAG Heuer and Louis Vuitton). In the near future, other companies may also join these ranks. Among them, one name comes up over and over again—Dubois-Dépraz. With already a large clientele, this supplier of mechanisms and additional modules (chronographs; simple, annual or perpetual calendars; minute, five-minute and quarter-hour repeaters; time zones; lunar phases; power reserve) has in the past also created a chronograph calibre (without column wheel) that was industrialized in quantities of 3.5 million units until 1970. The company might therefore be tempted to dust off its own chronograph movement. Would it be compatible or not? Time will tell. Among the other players that are now supplying, or are preparing to supply, exclusive move-

ments (not ETA clones) to third parties, is Vaucher Manufacture, which is mostly owned by the Sandoz Family Foundation, also owner of Parmigiani, of which Hermès has purchased a 25-percent share. Another such player is Fleurier Ebauches, which belongs to Chopard. Vaucher Manufacture had to recently lower its expectations when it announced a reduction in personnel with the layoffs of a quarter

of its 210 employees. “The recovery in the domain of movement supply is not as pronounced as in the other sectors of watchmaking,” stated Florian Serex, General Manager of the company, adding that “the company’s activity and its product offer must be adapted to the contingencies of the market.” In other words: the movements proposed by Vaucher Manufacture—with very classic workmanship—are most likely positioned too high

for the current economic situation and are not, or no longer, in tune with the demand, oriented towards larger sizes than the 11 or 12 lines proposed by the movement maker. This is one example that shows it is not so easy to become the alternative player, and that monetary investment is not always the answer.

Chopard, a ‘business class’ alternative? With its L.U.C. Chopard Manufacture, Chopard has already mastered the production of its own movements, used exclusively in the haute horlogerie sector and in very limited numbers. These L.U.C. Manufacture movements are well-known for their quality, originality and high degree of finishing. Armed with this success, Chopard has decided to move to the next step and produce its own ébauches, but this time on an industrial level. The goal of the new company, Fleurier Ebauches SA, founded in July 2008, is to increase the independence of the family company. Within the next four to five years, it plans on producing approximately 12,000 to 15,000 movements per year, of which twothirds will be automatic calibres and one-third chronographs. The total investment is said to be around 15 million Swiss francs. The new entity is located only a few hundred metres from the L.U.C. manufacture in Fleurier in an old, but entirely renovated, industrial building that offers a large working area of 5,100 square metres. Over time, it can accommodate 50 to 60 employees. In the first part of the building, now finished, there is an impressive series of high-capacity production machines—the Precitrame MTR 312, each equipped with nine units with three axes and four tooling heads, allowing for a total of 36 simultaneous operations. As Karl-Friedrich Scheufele says with delight, “The L.U.C. movements are first class while those from the Fleurier Manufacture are business class.” In other words, they represent somewhat higher volumes with good quality. “Having said that,” adds Scheufele, “I have learned in this adventure that creating industrial volumes is

more complicated since everything must be planned well in advance and the slightest error can have major consequences.” The first of these new calibres, the FE 151, is currently undergoing Chronofiable testing. It is a versatile automatic calibre (28.8 mm) featuring three hands, instantaneous jumping date, a stop seconds function and power reserve of 60 hours. The second step will be a simple, but integrated chronograph. In the beginning, it will be used in the brand’s existing steel collections, produced in volumes of 7,000 to 8,000 pieces. Chopard also reserves the right to sell these calibres to third parties.

II. STRATEGIES OF CIRCUMVENTION AND INDUSTRIALIZATION Besides the creation of movements that may be substituted for ETA calibres, watchmakers have also massively responded to the threat by accelerating the vertical integration of their production. We must, however, qualify the various announcements made regarding investments in this domain, and differentiate between a veritable industrial effort and the semi-industrial or artisanal creation of movements in small quantities. Nearly everyone has the regrettable habit of calling themselves a ‘manufacture’ but real ‘manufactures’—those producing all or nearly all of the components necessary for the fabrication of their own calibres—are extremely rare. Leaving aside the great historic manufactures, such as Jaeger-LeCoultre, Patek Philippe, and Vacheron Constantin—which have all strengthened their vertical integration during the last decade, sometimes in a spectacular manner— let’s take a closer look at the more recent industrializations in the sector.

Cartier’s flagship The most impressive rise in production strength is unquestionably that of Cartier. In 2000, Cartier decided to create its own manufacture and to bring together—under one roof on a central site located between La Chaux-de-Fonds

LAZIZ HAMANI © CARTIER 2009

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and Le Locle—the dozen or so units that had previously been dispersed throughout the region. Today, some 1,000 people, working in 185 different metiers, are employed at this facility. (This number may seem rather high but it includes all the operations in the sectors of design, construction, methodology, general assembly, laboratory materials, homologation, prototyping, mechanics, total production of cases and bracelets—except dials—mineral glass and crystals, hands, stone setting, enamelling, bevelling, decoration, assembly of quartz and mechanical movements, the haute horlogerie atelier, restoration, after-sales service and logistics.). While the extent of the investment for this fabulous flagship facility is not public knowledge—surely in the hundreds of millions— nor is the exact number of pieces that are produced here—surely in the hundreds of thousands—what immediately strikes the visitor is the excellence in the organizational and industrial structure. The approach has been modelled on other sectors outside the world of watches, most notably that of the automobile industry.

As-needed watchmaking strategy This industrial organization has been structured essentially so that it is capable of working on an as-needed basis. The major advantage of this highly integrated facility is its exceptional reactivity to the fluctuations in demand. “To move from one model to another is, for us, comparable to an F1 car at a pit stop,” proudly stated Jean-Kley Tulli, Director of the manufacture. He went on to explain more of the ins and outs of this particular production structure, “For a long time, the diver-

OLIVIER ZIEGLER © CARTIER 2009

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sity of our products, their volume and the variation in demand remained relatively stable. Then we moved into many variations, and the volume increased. We therefore organized ourselves to synchronize all the production lines. We thus succeeded in reducing the time needed to move from one product lot to another from 250 days earlier to 50 days today, and, we hope, to 20 days tomorrow. The transport times have been decreased to nearly zero and the production lines have been entirely rethought out to provide greater flexibility. Before, one line produced one product. Today, each line, organized in modules, can produce several products. We have thus been able to accelerate the frequencies and been

MANUFACTURING 19

able to decouple the metiers and the men from the machines. In this way, we have lowered our stocks and the outstanding debts.” The relevance of his words is easily understood as you walk into the central hall—as large as a soccer field—where the production and polishing of the bracelets and cases is carried out. The product fabrication lines are aligned vertically along a network system that is organized by metiers. These same metiers are thus juxtaposed side by side along the network that expands into the vertical production lines. This spatial organization allows for the passage from one machine to another by metier, thus offering great flexibility and hence greater reactivity.

The new Cartier calibre If we expend a lot of ink on this organizational structure, it is to emphasize that the ensemble of this impressive manufacture responds to the brand’s policy of having a high level of reactivity. And, what interests us primarily in this case is the assembly of mechanical movements.

Noemia Mother-of-pearl dial and Stainless steel case with diamonds Crown with midnight blue dome Sapphire crystal www.raymond-weil.com

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LAZIZ HAMANI © CARTIER 2009

TAG Heuer, unbridling internal growth

There has been a lot said about the new ‘Cartier Calibre’, which is now being heavily promoted by the brand. The motor of this new line answers to the name of Calibre 1904 MC. This is the first automatic calibre designed, constructed and produced in-house by Cartier (in this case, its component parts are made in Buttes, by Val Fleurier, a company belonging to the Richemont group, where Cartier opened an atelier dedicated exclusively to the brand). The 1904 MC is an 11''' calibre (25.6 mm in diameter and 4 mm in thickness) that beats at 28,800 vibrations per hour (4Hz). It features a double barrel, a choice of either a central seconds hand or small seconds at 6 o’clock, stop seconds, semi-instantaneous date mechanism

and pawl rotor mounted on ceramic ball bearings that can be wound in both directions. Its 48-hour power reserve can therefore be wound very rapidly. It was developed under the direction of Carole Forestier (formerly head of the technical bureau of Renaud & Papi that belongs to Audemars Piguet), who wanted to create, above all, a precise, reliable and robust movement. The 1904 MC is classic in its styling and architecture while being modern in its technical design. The double barrel provides good chronometric stability by providing the best possible constancy to the spring motor. It is a veritable and basic tractor for Cartier and its size allows it to progressively equip all the cases of the various collections, including the rectangular American Tank. This movement is thus part of Cartier’s longterm strategy to ensure the highest possible degree of independence in terms of its supply. This independence is capital and guarantees the flexibility in production that is so coveted in the world of watches where reactivity to the marketplace has become, whether we like it or not, a cardinal virtue.

It is undoubtedly for these same reasons that TAG Heuer has also invested in the production of its own chronograph movement, the famous 1887. (We note in passing the current tropism that is pushing the ‘new’ manufactures to baptize their own movements with historic dates.) We will not delve into the polemic that presided over its birth, other than to say that, as Jean-Christophe Babin explained in his ‘defense’: Although the initial design of this chronograph belonged to Seiko Instruments, “it was necessary, in view of its industrialization, to re-start from zero for all the component parts because they had been designed before the appearance of the new computer controlled machines, and to re-adapt all the designs. Only one version of the original movement remains. And, we had to revisit all the tolerances in view of mass production since Seiko Instruments had only designed it, in the beginning, for a production of 5,000 pieces per year.” At the same time, TAG Heuer was able to immediately put into place a latest-generation production line in order to rapidly increase its ability to produce the necessary quantities. “Three years ago, when we made this decision, we were restrained in our growth and wanted to react quickly. Designing our own movement from zero, however, was too risky for the deadlines that we fixed for ourselves. But, outside of ETA, no other chronographs passed the demanding tests that we submitted them to, which were necessary for a technical and sporty brand such as ours, whose chronographs are really worn. No other, that is, except for the Seiko Intruments chronograph. It had the same size as the 7750 and a column wheel, as well as an oscillating pinion, which we invented. The Seiko piece also had a simple and robust bi-directional winding system…” This choice represented an investment of some 20 million CHF, of which 10 million went for the production equipment and allowed TAG Heuer to have a veritable high quality alternative to the ETA calibres that it had used up to then. This was all done in

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record time—one and a half years to develop and put into place the entire production line. According to Guy Semon, the athletic director of the technical department, this calibre allowed the brand to take “a quantum leap”, even if the brand remains dependent on the Swatch Group, particularly on its Nivarox components. It also took some time for the brand’s engineers to integrate these parts into a movement that was not designed for them. But now, it is done and the ‘machine’ is now operating at full capacity.

A tool designed for 50,000 chronographs per year While the assembly operations are carried out entirely in La Chaux-de-Fonds, the production itself is done in Corniol, in the Jura, in the Cortech facility. This watch case company belongs to TAG Heuer, and makes about 50 per cent of its cases (in steel, gold, and platinum). A production unit for movement component parts was installed at Cortech and designed to produce 50,000 calibres per year. For now, however, it makes about 25,000 movements annually. The unit is ultra-modern and operations are completely computerized (including for example, lubrication, which is still quite rare). Operating 24 hours a day, its modular equipment has been coupled together to create entire production lines (each piece is transferred automatically from one machine to another). Basically, ten master parts are made here and delivered to the site in La Chaux-de-Fonds: plates, thick bridges, minute bridges, chronograph bridges, weight plates. The gears, pinions, etc—parts from stamp and die operations—are subcontracted out to a network of loyal external firms. “For the moment, we don’t have the intention of inte-

The new semi-automatic assembly unit for the 1887 movement, installed by TAG Heuer in the Chaux-de-Fonds

grating these operations. The current project is already very ambitious in itself and, from a strategy point of view, we are not considering this,” stated Mr. Lebigot, Director of the movements division at the site.

First of all: an ultra-modern unit These ébauches, bridges, and plates are then sent to TAG Heuer where an assembly unit— also designed to produce 50,000 pieces— was constructed specifically for the 1887

movement in only one and a half years. Without the space to go into great detail in this article about the manner in which the some 60 operations are carried out, we can however make this observation: everything has been designed to assure the total and individualized follow-up of each movement during assembly, thanks to automation and systematic controls that come into play at each step of the process. Mounted on a ring with a number and its data matrix (new generation barcode), each movement is followed individually and is entered into a database that retraces the details of its journey. Between one fitting and another, the movements circulate in baskets from one shop to another. Automatically, each operation to be

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CALIBRE 1887

carried out is listed on an individual monitor. In case of an error or problem, the piece is redirected to a track reserved for correcting the problem and a report is automatically generated, which lets the operator know exactly where to find the piece and at which stage it is in. As for quality control, the filter put into place is quite impressive. Its goal is to guarantee the quality of each finished piece. During its journey, the movement to be assembled will automatically pass by an automated check of clearances, a video control of its escapement, an automated adjustment in one position, automated tests of its arming gears and start/stop/rewind functions, laser measurements of its working precision (average in a horizontal position, at zero hour, without chronograph: between +2 and +10), and finally manual inspections and checks. Today, this unit is still in its adjustment phase and produces about 60 pieces a day. Rapidly, however, it should increase its rhythm as a function of the sales of the now famous 1887 movement. (For more information on the movement itself, see Europa Star issue 2/10.)

CONTINUED IN THE NEXT ISSUE… IV) The cream of the crop

We will continue our investigation on The planet of Swiss watch movements, in our next edition of Europa Star, issue 5/10, which will include the following articles.

III) The explosion of “in-house movements” Over the last few years, a number of small and medium-sized brands in the luxury and haute horlogerie segments have begun to try and create their own movements.This production is more or less verticalized and integrated, although it often depends on the dense network of subcontractors in the Jurassian Arc. Among them are such independent Swiss brands as Eterna, Schwarz Etienne, Breitling, Carl F. Bucherer, Frédérique Constant, Corum, De Witt, Vulcain, and Bovet, as well as French brand Pequignet. Others in quest of their own movement are brands belonging to groups

CARRERA 1887 CHRONOGRAPH by TAG Heuer

such as Montblanc with Villeret, Hublot with the ex-BNB, and Bulgari with Genta and Roth. In the medium term, we just might find a certain number of these calibres available for sale in the marketplace. Who knows!

Brands in the very high-end mechanical sector also have access to very high-level suppliers who can develop and produce exclusive and reserved calibres, so-called ‘specialties’ as they were named during the last century. These ‘specialties’ have become strong marketing tools today but the manufacturer-suppliers who make them are few in number.After the collapse of BNB, several still remain, however, and among them are the solid Christophe Claret and its 63 in-house calibres made for 18 clients, as well as Audemars Piguet’s Renaud & Papi. The latter is the regular supplier to Richard Mille, and it also recently created and produced the movement for Chanel’s J12 Rétrograde Mystérieuse. O

These articles can be found in Europa Star 5/10, due out in October 2010.

HERITAGE COLLECTION INSTRUMENT BR 03 42 mm VINTAGE BR 126 41 mm Natural Leather strap

Information: Bell & Ross Switzerland +41 32 331 26 35 . Europe +33 (0)1 55 35 36 00 . information@bellross.com . www.bellross.com

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The fairy from Van Cleef & Arpels

Ladies’ complications fit for a princess From Cinderella’s midnight minute repeater to a summer time/winter time indicator, feminine complications are bringing some mechanical magic to women’s watchmaking.

RSophie Furley

Once upon a time women had a choice between a ladies’ quartz watch or a man’s wristwatch with a sprinkling of diamonds or a pink strap. Then the trend for larger watches emerged and many watch brands decided to use the additional space to equip their ladies timepieces with mechanical movements. Women started to become more receptive to the mechanical side of the watch and appreciate the workmanship involved. Now a very small number of watchmakers are going one step further and designing complications especially for ladies.

DeLaneau – pioneers in contemporary women’s complications DeLaneau was the first watch company to introduce complications for women around a decade ago. At the time, it was probably the smallest niche in the entire watch industry, but there were a handful of informed women who fell in love with the brand and its philosophy. “When we started creating our feminine horology niche, talking about complica-

tions for women and mechanical emotions, everybody smiled,” shares DeLaneau’s CEO and Creative Director, Cristina ThévenazWendt. “I was told that it was useless, that women want quartz and that's it!” But Cristina Thévenaz-Wendt knew what she was doing and now her clients count far more than a handful, and the company has just opened a flagship store in Geneva and plans to open another in New York shortly. Over the years DeLaneau has created many different complications for women, including tourbillons and intricate moon phases. Today

ANGEL HEART and MAGNOLIA by DeLaneau

the brand is concentrating on its feminine, but complicated, 1608 and Angel Heart collections. The 1608 Collection is not named after a date, but the number of times its mechanical, oversized ‘digital’ display jumps every single day. Women’s lives are governed by the time, often even more so than men, as they run from appointment to appointment, to and from work and take their children from A to B - every minute counting so as not to be late. The advantage of a digital display allows a rapid reading

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SOPHIE’S CHOICE 27

of the exact time. This clean digital display, without hands getting in the way, also leaves the majority of the dial free to be explored by the brand’s network of enamel artists, engravers, stone setters and marquetry experts.

ENAMEL BLUEBERRIES by Delaneau

The Angel Heart comes in a square or rectangular case and features a heart on the dial that can be mechanically opened up, magically transforming the two halves of the heart into angel wings that reveal a seconds counter beneath. The simple, and yet innovative, design uses the winding crown to open the heart. The dial can also be decorated in a multitude of ways. It can’t be an easy task coming up with the idea for a complication that will appeal specifically to women. “We think about what kind of

information we women would like to have, how we relate to time, how we use our watch and how fast and easy is it to read the information needed,” explains Thévenaz-Wendt. The other challenge in creating women’s complications is how to combine something as masculine as a mechanical combination with a ladies watch. “Our heritage as a jeweller of watches gives us an amazing know-how on different crafts and techniques relating to stones and setting etc. We also have the privilege of having our own enamel workshop, which we have had for many years now, as well as a fantastic network of artisans. “Aesthetic is subjective. Some women like their watches to have a masculine look, some like them to be more ‘ornamental’, colourful, set, etc. However, there are certain criteria that are common to all these different looks, such as the size, and the weight. You can't go too far with those.” Continues Thévenaz-Wendt DeLaneau communicates to both men and women, because even if the brand is focused on women, men are still better informed than women when it comes to the value and the meaning of a mechanical movement. For years,

QUANTIÈME DE SAISONS COLLECTION by Van Cleef & Arpels

mechanical timepieces just weren’t available to women. “What is really important for me is not to pretend to determine what women really want, but to give them a real choice on who they want to be. So it is nice to know that men can only adhere to her choice when she falls in love with a mechanical watch that actually caters to her and has been thought for her,” concludes Thévenaz-Wendt .

Van Cleef & Arpels’ poetry in motion One brand that has been in the limelight this year is Van Cleef & Arpels. The company drew a lot of attention at the SIHH show in Geneva with its Pont des Amoureux (See Europa Star 1/2010) which is part of its Poetic Complications collections that have become increasingly sought-after. Van Cleef & Arpels introduced its first women’s complication in 2006 with its Quantième de Saison collection. The inventiveness of this collection was to be found in the mechanics behind the dial that rotate the face of the

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watch 360 degrees over the course of a year showing the passing of the seasons in real time. The timepiece was such a success that three other themes have since been created using the same complication: the Folie des Prés, the Opéra and the Océanide. Other complications include the Lady Arpels Féerie, whose dial depicts a fairy who indicates the time with her magic wand and her wing, Journée à Paris and Jour Nuit. “The idea is to use the mechanics of the watch to serve the aesthetics and create emotion,” explains Maria Laffont, Communications Director for the brand. The company has a long history of working with the finest artisans in its jewellery collections, whether it is world-class gem setters, jewellers, engravers or enamel artists, so it makes sense that the same attention to craftsmanship should also be applied to the movement inside each timepiece. Van Cleef & Arpels is conscious that education is key in understanding and appreciating the company’s complications, even if there are a number of clients who have started collecting the brand’s timepieces and are impatient for the next creation. The company is constantly organising events with its clients with explanations from watchmakers about the individual functions of each movement and with enamel artists who are delighted to share their art with the brand’s clients. “It is thanks to this exchange of passions that we aim to transmit the fabulous savoir-faire which is the source of our feminine complications,” explains Laffont. But are women really interested in the mechanical side of things? Is it perhaps not the aes-

LADY ARPELS FÉERIE, JOURNÉE À PARIS, JOUR NUIT and BUTTERFLY SYMPHONY by Van Cleef & Arpels

thetics of the watch that catch their attention more than anything, regardless of the movement inside? “We have carried out special orders for some clients who have asked us to switch the quartz movements in their watches for mechanical movements. The demand for mechanical pieces and complications seems very much present. The feminine Poetic Complications® are much more than just a trend; this a sector that is here to stay,” concludes Laffont.

Ellicott and the 12 strokes of midnight Ellicott is a relatively new brand to the watchmaking scene and this year was the first time the company exhibited inside the BaselWorld fair. Ellicott’s owner, CEO and designer, PierreAndré Finazzi, was ready with a number of col-

lections for men - with complications galore and an eye-catching line for women with an original new concept. The name of Ellicott’s feminine complication is the Lady Tuxedo Midnight Collection which is equipped with a self-winding mechanical movement that sounds the hours and the quarters on request. The idea was to create a watch for today’s Cindarellas who need to keep a check on the approach of midnight! Minute repeaters are one of the most magical complications as they summon the ears as well as the eyes, add to this the enchanting fairy tale of Cindarella, and the importance of the twelve strokes of midnight, and you surely have a winning story for today’s retailers to tell. “What we have noticed is that what interests women the most with the Lady Tuxedo is the beauty of the object, combined LADY TUXEDO MIDNIGHT COLLECTION by Ellicott

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L’HEURE D’ÉTÉ & D’HIVER by Saskia Maaike Bouvier

with certain functions, and of course, the element of dream created by this collection and its models,” reveals Finazzi. The timepiece presented here is in 18-carat white gold, but it is also available in 18-carat pink gold or steel and with a choice of diamond settings. The dial is midnight blue with diamond stars and indexes. On the technical side, this self-winding mechanical movement has a 42 hour power reserve; 251 parts; displays the hours, minutes and a central sweeping second hand; and has a bidirectional winding system. Looking to the future of women’s mechanical watches, “As we are pioneers in this segment, we believe that it is premature to talk about a trend right now. Today we are have a fondness for a niche that hopefully has a future!” shares Finazzi.

Saskia Maaike Bouvier – spring forward, fall back One watchmaker who has noticed the lack of ‘serious’ watchmaking for women is Saskia Maaike Bouvier. This talented young lady has designed movements alongside some of the greatest names in the industry. She started her watchmaking career concentrating on the research and development of mechanical movements before moving on to work for herself. “In 2004 I became independent and worked in the shadows on various developments. I would often propose creations for women to the companies I worked for, but they were always nervous about the idea,” shares Bouvier. In 2009 she had become frustrated by the fact that mechanical watches were predominantly reserved for men and decided to start her own brand of women’s mechanical timepieces with a first collection called L’Heure d’Eté & d’Hiver - Summer & Winter Time. When the clocks change, who doesn’t have to take a moment to try and calculate whether the

time goes forward or back - whether we get one more hour at the disco or lose an hour in bed? This intriguing wristwatch solves this biannual problem with two readings: a summertime display and a wintertime indication. In summer, the user reads the top half of the dial and in the winter she refers to the lower indication. The large dial reveals wheels that are decorated with flowers and snowflakes supported by two bridges in the shape of tree branches. The three dimensional view inside the watch displays the workings of the movement below, which is a great way to highlight the mechanical aspect of the watch for women to see and appreciate. “Women are more sensitive to open mechanics and transparent dials and the intricate details of the mechanics,” explains Bouvier. Limited to 88 pieces for the steel collections and eight pieces for the white gold versions with diamonds, each timepiece is equipped with an automatic movement, sapphire crystal and a hand stitched strap with a contrasting coloured lining.

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DIAMOND FLOWER COLLECTION by Perrelet

Perrelet’s mechanical feature

After presenting her collection for the first time during BaselWorld among the watchmakers of the AHCI (Académie Horlogère des Créateurs indépendants), reactions have been very positive. “The 45mm size scared a lot of people, but once on the wrist, the pure shape of the case fitted perfectly on even the smallest wrists,” notes Bouvier. It is no easy time to come out with a new brand as few distributors or retailers are willing to take a risk with a newcomer right now, however clients are finding their way to Saskia Maaike Bouvier and ordering directly from her workshop, even special requests for bespoke pieces have been ordered. And the boys have been asking when a masculine version of the watch will arrive too – all good signs that we are going to be hearing a lot more from Bouvier in the future.

Perrelet’s double rotor is not so much a complication, but more a mechanical feature, however, it is so uniquely feminine that it certainly deserves a mention here. The collection is called the Diamond Flower and each timepiece is equipped with a Perrelet P-181 automatic movement with not one, but two rotors – one rotor is on the movement side and the other on the dial. Both rotors are perfectly synchronised and power the going barrel by giving a constant and amplified source of energy. The magic, however, is most apparent on the dial side rotor which has been created in the shape of a lotus flower and richly decorated with gem stones. The ‘diamond flower’ spins as its owner moves, catching the light and everyone’s attention, while also powering the movement. “Perrelet deliberately chose a female designer, who immersed herself in the brand for several months with a view to defining the aesthetic codes of the collection,” shares Isabelle Oppliger, Perrelet’s Director of PR and Communication.

The result combines the beauty of a jewellery watch with the complexity of a mechanical movement in such a unique and interesting way.” It is little surprise to hear Oppliger say that “This collection has been a huge success”. The collection was launched in 2008 and has since been introduced in 27 different variations with steel, gold, diamonds, sapphires, rubies and emeralds. Its success was instant and it won the prestigious ‘Watch of the Year Award’ by the Swiss public at the Grand Prix d’Horlogerie in Geneva during the year of its launch. The following year saw the arrival of a ‘Diamond Flower Rare Prestige Edition’ with seven unique pieces, and 2010 has been marked by a number of dramatic models in black and white ceramic with diamonds. Like with all mechanical timepieces for women, education remains key. “At Perrelet, we believe that women share a certain interest for watchmaking techniques and mechanical watches. However, these women are in the minority and unfortunately the industry in general has the habit of simplifying the technical aspects when they are addressing a female public. There is a long road ahead,” explains Oppliger. The road may be long, but Perrelet is committed to the development of its feminine products and believes in the importance of working with female designers who intuitively create products that respond to the demands and desires of today’s women. The rest is for Perrelet’s retailers to share their knowledge and passion over the counter, something that shouldn’t be too difficult with such a stunning product! It will be interesting to see if this very small niche will expand further. One thing is sure, women are receptive to the beauty of a complication and can appreciate the quality of workmanship, whether it is on the dial or underneath it. Admittedly, the majority of women don’t know much about mechanical watches or complications yet, but with the help of these pioneering brands, that is going to change and there is a good chance that we will see more ladies’ complications in the future – we do hope so! O

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This is all the energy needed to power the completely newly developed Manufacture movement, CFB A1001, from Carl F. Bucherer. It features the ﬁrst reliably functioning peripherally positioned rotor and associates perfect aesthetics and progressive technology. It was designed on the basis of the holistic “Evolution Technology” Manufacture Concept, by which Carl F. Bucherer goes its own way with the development of movements and mechanisms, challenging the existing and striving for more intelligent solutions. A mechanical microcosm which is housed in a perfect environment, thanks to the unmistakably distinctive design of the Patravi EvoTec DayDate. www.carl-f-bucherer.com

AHEAD OF THE TIMES.

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CHRONOMAT by Breitling

INSIDE THE CHRONOGRAPH Here is a riddle for you – What do people use to cook their egg in the morning? What is an integral part of their run after work? What is necessary for determining the winner of many sporting events? The humble chronograph.

RKeith W. Strandberg

Chronographs are one of the most popular complications in watchmaking and are used in timepieces for both men and women. There is something about the chronograph that captures people’s imagination and, as such, this complication is certainly in high demand.

Kinds of chronographs Standard chronograph: This watch has two or three sub dials (also known as totalizers), and the standard two pusher layout (the top pusher starts and stops the timing, while the bottom pusher returns the timing hand to zero). Monopusher: this chronograph only has one pusher, which is sometimes integrated into the crown and in other cases is by itself. This pusher starts, stops and resets the timing mechanism.

Flyback: A flyback chronograph allows the user to restart the timing hand at anytime during the timing process. One of the most useful chronograph complications, but not one of the easiest to make. Split second: A split second chronograph has two timing hands, allowing the user to ‘split’ these hands, effectively timing two things at once. Complications: One popular thing for watch brands to do is to include the chronograph in complicated watches. For example, there are tourbillon chronographs, perpetual calendar chronographs and also grand complications with chronographs. Quartz: Quartz chronographs are very popular indeed. Extremely precise, quartz chronographs often use the sub dial layout that has been popularized by mechanical watches, but they also use digital displays, which helps showcase the quartz chronograph’s phenomenal accuracy.

Why is the chronograph so popular? Using a chronograph is easy and fun, and very functional. "It’s really an added function that is not just an additional display”, says Jean-Paul Girardin, Vice President, Breitling, “It’s something you can use to measure the time, not just to read the time. Due to this, you have an interaction with the watch. Interactivity makes things completely different, since you are doing something, not just reading something. You interact with your chronograph. By doing this, you cannot control the time, but you are heading in that direction.” Girardin continues. Chronographs are very popular because they offer a very accessible complication and one whose standard layout is very attractive. “Aesthetically, the chronograph is a well liked complication as it has a technical sportive style via the chronograph pushers on the case, the dial and the movement type,” details Philip Barat, head of the watch development department at Patek Philippe. “The chronograph mechanism is visible via the sapphire case back and it has a very technical look.”

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1911 BTR PERPETUAL CALENDAR CHRONOGRAPH by Ebel ANNUAL CALENDAR CHRONOGRAPH by Patek Philippe TYPE-M MONOPUSHER by Gerge

markers and define durations,” explains JeanChristophe Babin, President of TAG Heuer. “Progress has given us a more definite idea of time. People now require much greater precision so they can measure fractions of time. As the purpose of a watch is to tell the time, the chronograph is, naturally, the most popular option, because it divides the time as precisely as possible. The chronograph has also become much more important with the development of sport." Also, the cost of entry into the mechanical chronograph world is not as steep as other complications, like perpetual calendars, tourbillons or minute repeaters. "The chronograph is the first complication people can afford,“ states Jean-Frederic Dufour, President, Zenith. "The chronograph brings you emotion – it means something to you. The functionality is very nice, it speaks to a large amount of people. It’s an easy complication to understand.“ Also, chronographs are linked to competition, sports and moving, mechanical parts. “Chronographs became boy’s toys, because

their look is sporty and the origin is from competition,” says Thomas Morf, President, Morf Consulting. "As we all know by now, men like to compete and therefore the chronograph underlines a certain masculinity.” People like to pass time in an attempt to control it. Since the very beginning of timekeeping, we have been qualifying events and performances, like Usain Bolt’s gold medal-winning sprint and how long it takes your kids to run around your house! “It is reasonable to think that, for a very long time, man has needed to measure time: to set

The challenge of the chronograph It’s not easy to make a reliable, industriallyproduced mechanical chronograph. In fact, it may be one of the hardest things in watchmaking, which accounts for the lack of options when it comes to mass produced chronograph movements. “Technically, a traditional column wheel chronograph is more difficult to make than the shuttle chronograph mechanism,” says Patek’s Barat. “The difficult part is the development and setting of the chronograph functions and innovations.”

34 CHRONOGRAPHS europa star

NEW PATHFINDER by Casio AQUARACER 500 by TAG Heuer EL PRIMERO STRIKING 10TH by Zenith

Getting it all planned, with an eye for expansion in the future is one of the hardest parts. “Chronograph movements are indeed not easy to develop and produce,” says Thomas Morf. “There are a couple of things which need to be considered when you develop a chronograph. Reliability comes with clever engineering, mastering processes and industrialization; it can’t be ‘thrown together’. And all this is not free of charge. The journey is tough, but very rewarding when you get there.” Breitling, as an example, spent a great deal of time determining the parameters of its new BR01 chronograph before actually beginning

production. “The key consideration is to make a clear product specification,” says Breitling’s Girardin. “What do you want? Do you want a mass production chronograph, or do you want something high performance, or do you want something exclusive? Then, it makes your life much easier when you have defined what you really want, setting up the level of complexity of the product. “If you want a high performance Ferrari or a very reliable Volkswagen, both are very difficult,” he continues. “For us, quality is meeting the technical specifications we set. For us, we didn’t want to do a mass production product,

but we also didn’t want to do just 100 pieces a year. We are still in industrial production, but we wanted a high performance product that we could produce in about 50,000 pieces a year. Of course, our cost targets were also quite important, but on the other hand we didn’t want to lower the performance characteristics as well, as each movement had to be COSC certified.” Zenith is responsible for one of the stars of chronographs, the El Primero. “It’s very hard because you need to have a mechanism that can start, stop and reset in an accurate way,“ says the brand’s Dufour. "When you press on the pushers, even after a thousand times, they still have to work with the same accuracy. It’s also 300 plus parts that all have to work together. Precision is part of the DNA of the brand. When Zenith started, the only way to succeed was to stand out and we chose to stand out by precision.“ Several brands have recently introduced new chronographs and still others are working on them. Why, when there are tried and true movements on the market? “Because it’s the challenge behind it,” says

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36 CHRONOGRAPHS europa star

future of the mechanical chronograph is progressing quite well.” The chronograph has been around for quite a long time, having its roots in sport timekeeping. Today, it is still one of the most popular, and affordable, complications in watchmaking. As companies refine and introduce their own in-house chronographs and designers come up with new and interesting ways of reading elapsed time, the chronograph is sure to stay extremely popular and wonderfully useful. O TO RUN OR NOT TO RUN?

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Thomas Morf. “Every serious watch brand should have its own chronograph movement. With that, you separate yourself from the wannabes. You play in a different league and it generates a lot of credibility for a brand - and when you make money out of it, all the better.”

classic and modern, and sometimes in the same collection. “I personally like the classic way, but with the new ways of displaying elapsed time, a brand can distinguish itself from others,” says Thomas Morf. “I think this is more important to brands, than having a true benefit to the customer. Easy-to-read is still one of the most important factors, when it comes to a chronograph.”

New ways of displaying elapsed time

The future of the chronograph

Lately, many companies have redesigned how elapsed time is displayed, foregoing the totalizers/subdials and using alternative ways – linear, retrograde, turning discs, using the hour and minute hands to display and more – and we can expect to see more of the same as these alternate ways have gained acceptance on the market. “For us, new things are always interesting,“ says Breitling’s Girardin. “In 1934, Breitling defined the classic three totalizer dial structure, so we are keen to keep doing it. Some years ago, we had the two totalizers in one sub dial, so you could read the time you are measuring like a watch. If you want something very precise, we prefer to offer quartz or electronic chronographs.“ There is definitely room in the market for both

Chronographs are here to stay, with just about every company offering up their version of this time-honoured complication. It’s a combination of sportiness, dial design and functionality that attract people, so companies will continue to meet the market’s demand for chronographs. “TAG Heuer continues to push the boundaries of precision timekeeping in the mechanical and digital fields, despite the exponential constraints,” TAG’s Babin says. “But it is no secret that our primary objective is to achieve industrial perfection with the mechanical timepiece accurate to 1/100th of a second.” “Chronographs are not a trend anymore,“ states Breitling‘s Girardin. “In the 80s, chronographs were almost dead, then the Chronomat started mechanical chronographs again. The

Many people buy chronographs for their look rather than their performance. In fact, I have asked people who are wearing chronographs if they ever use them, and the answers are often “no”, and in fact some people don’t even know how to use them. However, one of the common questions I get is if it’s OK to keep a chronograph running all the time. Many people like to have a moving second hand and use the chronograph hand in this function. The consensus from the people I have talked to for this story is that there is no consensus. Some worry about the debilitating effect on the movement, while others think running the chronograph continuously will not affect the performance of the watch. Some, in fact, believe running the chronograph is preferred to never running the chronograph. “The BR-01 movement has been designed and tested both ways, so for us it doesn’t matter,“ explains JeanPaul Girardin, Vice President, Breitling. “With the level of amplitude we have and the power reserve, it doesn’t change so much regarding the timekeeper. If someone wants to wear his watch with the chronograph running all the time, it won’t hurt it.” Thomas Morf believes that since the chronograph is about performance, it makes sense that the chronograph performs in order to stay in working order. “Since a chronograph is rarely used for what it was built for, people use it to play with it. It’s like an engine of a car - you should sometimes use the car in order to keep the engine smooth. It’s the same thing for a chronograph - use the chronograph function in order to keep it working perfectly.” Babin from TAG Heuer uses the car example as well, this time to recommend not running the chronograph all the time. “It’s not a good idea to leave your car running when it's not in use,” he says. “The same is true for watches. If the wearer wants to keep their chronograph running permanently, they can, but we wouldn’t recommend it. It is best to use the chronograph when you need it.” Philip Barat head of the watch development department at Patek Philippe, says that it depends on the type of chronograph mechanism. “For example, on the Patek Philippe self-winding CH 28-520 with vertical clutch, the chronograph hand can be kept running without any influence on the movement precision, whereas on a horizontal clutch system it has an influence on the movement precision and creates more wear.”

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38 MARKET REPORTS – CHINA europa star

Tianjin Sea-Gull Watch “By volume, we are the largest producer of automatic movements.”

RInterview conducted by Jean-Luc Adam

Located 30 minutes by fast train from Beijing, Tianjin is the oldest industrial city in China. Add another 30 minutes from the station by car and you will arrive at Sea-Gull, the oldest watch manufacturer in China. Europa Star paid a visit to this watchmaker and was welcomed by its General Manager, Jian Wang. But let’s go back a couple of years to BaselWorld 2008, when two very angry men rushed into the Sea-Gull stand located in Hall 5 and declared, “You have violated our patents in your double tourbillon!” When called before

Mr. Jian Wang, General Manager of Tianjin Sea-Gull Watch holding a double tourbillon watch in his hands. (Photo J.-L. Adam)

the commission for intellectual property, the whole affair fell apart in a few minutes. “This calibre is totally original,” concluded an independent and impartial expert. When their complaint was dismissed, the accusers took up the counter example of the Chinese ‘copy watch’. Founded in 1955, Sea-Gull was born out of the idea that, after having spent centuries repairing movements, the Chinese company could very well produce them. Sea-Gull launched the first Chinese watch, the first Chinese ladies’ watch, the first ladies’ chronograph, and the first Chinese watch for export. In a word, Sea-Gull is very Chinese, right up to the ends of its watch straps.

Europa Star: I have heard that Sea-Gull produces a quarter of the world’s automatic movements. Is that true? Jian Wang: According to 2007 statistics, out of twenty million movements produced in the world, five million come out of our factories. In terms of volume, we are the largest producer of automatic movements in the world. We supply many brands, but only a small part of our production goes to equip our own SeaGull watches. ES: So, these movements equip more German watches than Chinese… J.W.: Exactly. The Chinese automatic watches are generally equipped with the Citizen Miyota 8025 calibre. This is a marketing strategy as well as the consumer culture in China, which tends to favour imported products. ES: Except for the tourbillons… J.W.: This is because Japan does not make tourbillons. China has six companies that manufacture tourbillons. They are located in Shanghai, Beijing, Hangzhou, Dandong (Liaoning Watch Factory), Guangzhou and Tianjin (Sea-Gull), but in terms of quality, diversity, technology and production, Sea-Gull is the primary one. In fact, we are the only ones to produce certain types of tourbillons. To our knowledge, Sea-Gull is one of only three brands in the world to offer a range of ladies’ tourbillons. ES: Your tourbillon is similar to that of Breguet. What are the differences? J.W.: In distinction and development, the Breguet calibre is undeniably more refined. As to their operations, the two are identical. In terms of finishing, our tourbillon has the traditional Chinese style of more rounded and softer lines.

The model ST8080GB with a double tourbillon in platinum (38.98 grams), 40-mm diameter, 9-mm thickness, alligator strap, white gold clasp, sapphire crystal and case back, waterresistant to 30 metres.

ES: In 2009, you sold 300,000 watches. What are your business goals for the future? J.W.: Our objective is to make one million watches per year within five years. To this end, we would like for the Chinese people to take pride in wearing a Chinese watch and to understand that Sea-Gull is an authentic manufacturer that has been producing its own movements for many years. ES: Do you plan on keeping the single brand Sea-Gull or will you create others? J.W.: The creation of watches for different categories of consumers is part of our strategy in order to better exploit our formidable production of mechanical movements and thus be able to offer the Chinese people their own quality timekeepers. ES: This is quite honourable, but the Chinese are very fond of imported brands. They don’t seem to hold local brands in very high esteem. Why would they suddenly change their minds? J.W.: With the expansion of the Chinese economy, we are noticing a gradual return in interest to prestigious national products. Of the 5,000 Sea-Gull tourbillon watches sold in 2009, for example, 99 per cent were purchased by Chinese consumers.

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The model ST8004ZA with a tourbillon, 316L stainless steel, date and retrograde day, 40-mm diameter, 9-mm thickness, alligator strap, sapphire crystal and case back, waterresistant to 30 metres.

The model 182SK (available in black, red, or blue), automatic movement with balance, skeletonised dial, stainless steel case, 38.5-mm diameter, 10-mm thickness, leather strap, water-resistant to 30 metres.

ES: Why is that? J.W.: Because the psychology of the tourbillon aficionado is different from that of the lambda purchaser. His demands are greater and he primarily wants the movement to be produced by the brand itself. These enthusiasts are well informed and they know that neither Ebohr nor Fiyta make their calibres themselves.

The model ST8400VLGA ‘Pure Lady Tourbillon’, in an 18carat pink gold case measuring 40.1 mm by 29.6 mm, bezel set with natural precious gemstones, alligator strap, sapphire crystal and case back, water-resistant to 30 metres.

succeed in this domain since it owns a chain of multi-brand luxury stores. Ebohr produces popular watches with a wide distribution network but its clients are not about to put 10,000 yuans on the table, not even for a tourbillon.

ES: Wouldn’t they first buy a tourbillon before buying a Sea-Gull? J.W.: It is fifty-fifty. Some people choose the brand because it is the oldest and is known to several generations of Chinese. They are proud of the growth of Sea-Gull. In the short term, we are aiming to sell 10,000 to 15,000 tourbillon timepieces per year. ES:Tao Li, CEO of Ebohr, announced the upcoming launch of a range of ‘low cost’ tourbillon watches, with prices starting at 10,000 yuans (1,158€). Is there a market for this? (see ES 3.10) J.W.: Yes, absolutely, even if, for a Chinese watch, the sum of more than 10,000 yuans represents the luxury sector. In any case, SeaGull has positioned the tourbillon in a higher category. I am not sure if Ebohr sells more tourbillon watches at 10,000 yuans (1,158€) than we do at 30,000 yuans (3,475€).

MARKET REPORTS – CHINA 39

Sea-Gull Tourbillon, identical to the Breguet model, but with a resolutely Chinese style.

ES: Again according to Mr. Tao Li, the six Chinese manufacturers of tourbillons possess large production facilities that they are not able to exploit for their own brands. Fiyta and Ebohr, two heavyweights in Chinese timekeeping, would thus help them to achieve this… J.W.: Our studies of Chinese consumers have revealed two things. First of all, their watch culture is still quite lacking. Those who have heard about grand complications are very rare. Secondly, they would not conceive of investing 10,000 yuans for a domestic watch. To sell a luxury ‘China Made’ timepiece, it is imperative to have an appropriate sales network that Ebhor does not have. On the other hand, Fiyta could

ES: Sea-Gull certainly enjoys a more upscale image. Yet, although it has its own chain of single-brand stores, these can be counted on the fingers of two hands… J.W.: Yes, and there is a reason for this. We have revolutionized our sales techniques, but without ignoring retail sales. We believe in ‘sales circles’ for our target clientele, which is composed of collectors, government officials and business owners. Sea-Gull invites these influential people to a pleasant setting, such as a restaurant, to present the range of watches. Some of them will fall in love with a piece and purchase it for themselves, feeling proud to wear a lovely mechanical timekeeper from a Chinese brand. Then, by word of mouth, the circle grows as they talk about the watch with their entourage. In our societies where there is way-too-much information, the recommendation from a friend becomes an increasingly important argument for a brand. In three years, we have created more than one thousand ‘sales circles’.

40 MARKET REPORTS – CHINA europa star

The ateliers of Sea-Gull in its current factory. Soon Sea-Gull will move to the new industrial park in Tianjin, next to the factory of Airbus Industries. (Photo Jean-Luc Adam)

The development offices. Sea-Gull is waiting to move to its new factory in order to modernize the working areas. (Photo Jean-Luc Adam)

This will be the new Sea-Gull factory starting in autumn of 2010. This brand new facility is in Tianjin’s new industrial zone, next to that of Airbus Industries.

ES: While Sea-Gull watches are certainly elegant, they are too classic to attract a younger clientele, one that follows fashion trends. Do you think you will reach your goals by making this a snob purchase? J.W.: For a brand as conservative as Sea-Gull, the production of fashion products represents a new challenge. For the high-end, however, we will maintain our traditional style. On the other hand, we will modify the design of our mid-range pieces, which sell at around 3,000 yuans, to target the 25 to 30 year-old age group. A few models are already on the market. They are skeleton pieces with colour.

ble tourbillon and added, “Sea-Gull is becoming the main competitor to the Swiss watch industry.” This was also the first time, since the opening up of China that a Chinese company had won a foreign legal proceeding against a foreign company. This created shockwaves that travelled across China and the World Intellectual Property Organization.

the ‘Swiss Made’ term. This is, moreover, a prerequisite condition demanded by China.

ES: During BaselWorld 2008, Sea-Gull was the victim of a small scandal. Would you care to comment on that? J.W.: Two men from a then-independent brand, which has since been acquired by the Richemont Group [Roger Dubuis] came to our stand and rudely accused us of having violated a part of their patent in the creation of our double tourbillon. We were distraught because of the suddenness of the complaint and the problem of communication. We immediately hired a local attorney to represent Sea-Gull in order to negotiate between the accuser and the arbitrage council. That night, we had our China-registered patent as well as the many plans of the calibre sent to us in Switzerland. A 70 year-old master watchmaker, formerly with IWC, was the expert in the case. After having leafed through the documents and having examined the watches for seven minutes, he declared, “There is absolutely no similarity between the two systems.” Later, the elder gentleman congratulated us for our dou-

ES: But you can also understand the frustration of the Swiss with Chinese counterfeit watches. These two men simply put Sea-Gull into this pirate industry category… J.W.: Fakes are not only from China but also from India and Russia. In fact, they are made wherever movements are produced. Why are Swiss watches always copied? Because they are the best and they sell very well. Yet, we must also mention that Swiss watch companies never enter into any joint ventures with non-Swiss companies because they absolutely do not want to share their technology. In an open world, this attitude is exasperating.

ES: Why, in your opinion, was there so much virulence in this attack against Sea-Gull? J.W.: Switzerland is the kingdom of watchmaking and it wants to remain so for eternity. Never, will it accept to be in second place.

ES: But they want to protect the ‘Swiss Made’ label… J.W.: In this regard, negotiations are being held between China and Switzerland since Switzerland wants to enter the Chinese market duty free. And, as we know in reality, many Swiss watches are not produced in Switzerland. Your government must absolutely strengthen

ES: We should mention that Sea-Gull also suffers from counterfeits. J.W.: In fact, Sea-Gull is in conflict with itself. On one hand, it supplies movements. On the other, it is a watch brand. But Sea-Gull could never absorb by itself its enormous production of calibres. And, as soon as it sells movements to third parties, it inevitably falls victim to fakes. ES: To get a foothold in Swiss timekeeping, Fiyta has acquired Montres Chouriet SA and Ebohr is co-founder of the Codex brand in Bienne. Does Sea-Gull have any intentions of purchasing a Swiss brand? J.W.: At the current time, we have no plans linked to a Swiss brand. However, we are investing in a Swiss movement company that, thanks to the experience of its watchmakers, will allow us to improve our Sea-Gull movements and attain the ETA standard. ES: In regards to the Sea-Gull brand, it has not always been known by this name, has it? J.W.: This name was chosen in 1974 because that was the date when we began exporting watches. Earlier, the brand was called Dong Feng (East Wind) but that was not very international, and it also had strong political implications. (Mao had given this name to a number of companies following his anti-occidental slogan of “the east wind blows stronger and longer than the west wind.”) We wanted an English name and the seagull is a bird capable of flying great distances and therefore one that can carry our brand very far. O

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42 EXCLUSIVITY europa star

Is exclusivity the final frontier of luxury? What does luxury really mean, after all? A few years ago, luxury seemed to be synonymous with really expensive watches, but being expensive isn’t enough anymore. After the crisis, people have re-evaluated what their definition of luxury is and, today, luxury is about high quality, attention to detail and uniqueness. In fact, exclusivity could be the final frontier of luxury.

RKeith W. Strandberg What is it about exclusivity? Exclusivity used to be the domain of the ultra rich, but the desire for something unique has trickled down to the ‘regular’ high-end watch customer. “Exclusivity is really important as people need more and more to be and feel different,” says Marc Michel-Amadry, President, Ebel. “Exclusivity doesn’t necessary mean that it is highly expensive. It means that you can get something unique and totally customized.” In a world where the same stores are on the main streets of every major city in the world, the desire for something out of the ordinary is a natural reaction. Think Ed Hardy T-shirts, once unique and ahead of the trend, now ubiquitous and depassé. “Over the past years, trends have gone even more global,” explains Manuel Emch, President, Romain Jerome. “To reflect their personality, people tend to differentiate themselves from

others by wearing custom made clothes, exclusive jewels and limited editions of different kinds.” “In today’s world, exclusivity is important and gaining ground,” says Thierry Oulevay, President, Jean Dunand. “Exclusivity seems to be a natural response in a business world that tends to become more standardized, more homogeneous and smaller every day. Exclusivity is lived as some sort of a refuge; the perception is to stop time, to think and be different, to indulge oneself with what others have no access to, and to make a statement. “Progress is fascinating but technology is moving in waves that make new products available to everyone everywhere simultaneously,” he continues. “There are no more borders, no more barriers - this growing inclusive world is generating the need for exclusivity. For some it is time to escape, time to leave the madding crowds for a more exclusive world with a strong sense of belonging to other values. In a world of emotions where

perceived value is king, exclusivity is exciting.” It used to be that conformity, fitting in, was the ideal, but not anymore. “Exclusivity appeals to people,” says Philippe Merk, President of Audemars Piguet. “Our society is all about image, differentiation and that is what some consumers seek: exclusive products, brands, cars, hotels. First, limited editions are a strong way to show the values of the brand, its ambassadors, its technical innovations. Secondly, they are highly exclusive pieces, aesthetically or technically interesting. Exclusivity maintains the value of the brand." More and more, customers are moving away from mass market companies and towards brands that offer something different. “Vacheron Constantin is a niche player in the luxury industry, and we are therefore very exclusive as our products are hand-finished and handcrafted,” says Christian Selmoni - Marketing Products Director 1911 TEKTON by Ebel TITANIC-DNA DAY&NIGHT SPIRAL by Romain Jerome SHABAKA by Jean Dunand

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of Vacheron Constantin. “This craftsmanship is in all our products and this represents an important statement for our authentic watchmaking art. Our clients are certainly looking for this kind of exclusivity. “I think we love to cultivate our differences,” he continues. “Our world is more and more globalized and an incredible amount of information is available with one click on a web browser. Maybe exclusivity excites us because, by doing so, we can differentiate from others.”

Protecting exclusivity It’s important that brands protect the idea of limited editions by keeping them truly limited. In many cases, brands use limited editions for timepieces that utilize rare skills, unique materials or sought after combinations of complications – watches that can’t feasibly fit into a brand’s normal collection. Some companies like Van Cleef & Arpels, DeLaneau, Piaget and others are committed to keeping certain arts alive, like miniature painting, enamel, lacquer, engraving and more. Because of the difficulty of this work, by nature they are limited editions, and thus, highly coveted. “When we launched the Collection Excellence Platine in 2006, we intended to use platinum the purest, rarest and noblest metal - as part of the product's design and content (platinum case, dial, buckle, then hands etc.),” says

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MILLENARY QUINCY JONES by Audemars Piguet QUAI DE L'ILE by Vacheron Constantin LE CHEVAL by DeLaneau FINGERPRINT by Piaget

Vacheron Constantin’s Selmoni. “This collection, always limited, has been created to showcase important novelties - such as in 2010 our new High Complication cal. 2253 produced in only 10 numbered pieces (which features complications such as a tourbillon, the perpetual calendar, the times of sunrise and sunset and the equation of time) - and to emphasize it with the symbolism of platinum: rare, pure, eternal.” Some brands have, in the past, created limited editions that weren’t really unique -- limited editions of 5,000 pieces aren’t really limited. For limited editions to survive and thrive, this can’t happen. “You don’t introduce a limited edition just for the sake of it,” says Ebel’s Michel-Amadry. “You introduce a limited edition if you have something relevant to say, and when you want your story to be owned only by a small group of people. Most importantly, the limited edition should be associated with a story which nourishes your brand DNA and is consistent with it.”

The present and future for limited editions Recently, there have been a few timepieces with really interesting ‘hooks’, like the Black

Belt Watch which only black belts in the martial arts can buy, and the Icelandic volcano ash watch from Romain Jerome. These unique qualities help these watches stand out and also enhance their cachet, making them even more desirable. “Limited editions are very important for us,” says Carlos Rosillo, CEO, Bell & Ross. “Every year we produce several pieces that are limited editions. That means there are only 500 pieces (one per retailer since we have about 500 retailers worldwide). We have produced different types of limited editions - some are exceptional, for instance the tourbillon. These kind of high-end timepieces allow us to go beyond the

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BR 03-92 PHANTOM INFINITI by Bell & Ross NIGHT EAGLE by Christophe Claret HL06 by Hautlence TESLA SQUELETTE QUADRI-ROTOR by Artya

normal limits in the technical and craftsmanship fields. Others are unique pieces inspired by a specific idea like the BR 01 Airborne or the BR 01 Radar which are inspired by the symbols of the military or dashboard instruments.” Brands have to safeguard the idea of their limited editions. “I believe it is very important for the customer to have limited editions, as it enables him to be sure that the product is rare,” says Christophe Claret. “But it is difficult to determine the quantity, in order to satisfy the demand. We have to determine the quantity according to the complications and the complexity of the product and also according to the market and the economic situation.

“In my opinion, there are three types of collectors/watch lovers, which have requirements in line with their budget,” he continues. “Firstly, collectors and watch lovers of high complication watches, with a price ranging from 260,000 to 1,000,000 Swiss francs. They are obviously those who want the most unique pieces or editions extremely limited in quantity. They often require their own specificities. These are the most demanding. Secondly, collectors and watch lovers of complicated watches with a price ranging from 50,000 to 260,000 Swiss francs. They are more numerous, and maybe less attached to the fact that watches are unique. However, they want to choose a number in a limited edition. Thirdly, collectors and watch lovers of watches priced less than 50,000 Swiss francs. They buy limited editions and regular line watches.”

Bespoke timepieces More and more luxury watch companies are making it possible for customers to make alterations and modifications to existing collection watches to make them unique. Sure, it takes longer and costs more, but for many customers it’s worth the wait and extra money. “The bespoke business is growing, but it will

remain a limited business because of the very complex nature of both the product and the manufacturing processes involved,” explains Jean Dunand’s Oulevay. “By essence, the high-end watchmaking industry is not a linear business. The bespoke approach is expensive, time consuming and a huge challenge in terms of human and manufacturing skills. It seems reserved first to niche brands that focus mainly on this business model and make it a significant part of their USP.” Companies like Audemars Piguet are happy to satisfy their clients’ wishes. “We do bespoke/ unique pieces based on the personalization of complicated timepieces such as Equation of Time, Grande Complication or diamond-set wristwatches,” details Audemars Piguet’s Merk. “From there, we can add the customers’ initials on the rotor or change the dial or create a special engraving on the caseback. We had a client who wanted an automatic movement in a full baguette-diamonds-set wristwatch, which we only offered with a quartz movement. We had to design a new case, and we did it.” Vacheron Constantin has established an entire department devoted to highly limited and bespoke products. “Our Cabinotiers workshop in Geneva is able to create any desired bespoke timepiece from scratch,” says Vacheron Constantin’s Selmoni. “Even a movement can be developed and made especially for a client. This department was created by our

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CEO Juan-Carlos Torres in 2006 – right after the celebration of our 250th anniversary and to mark our entrance into a new quarter of millennium of history - and it has proven to become a significant and successful part of our activity. “This bespoke market is growing, and the products are very different one from the other,” he continues. “One reason for this success is most probably the relationship that is created between the clients and Vacheron Constantin, their wishes and the ultimate kind of service that we provide through this Cabinotiers workshop.”

Selling exclusivity Exclusivity, if presented correctly by the retailer to the end consumer, can ensure a brand’s future. "Exclusivity for independent brands like Hautlence is the key word, for long term brand building," says Guillaume Tetu, CEO of Hautlence. "If you are exclusive, you control your deliveries, the quantities on the market, and the desire for your product, trying to be just behind the level of needed (or expected) quantities. In the end you control also the price policy, because there is no competition on the market. "Selling a Hautlence watch is about sharing our passion for the craftsmanship, the art of making a watch, the contemporary display of time, all the values which make Hautlence a really unique product,” Tetu continues.

EP120 by Bremont SCUDERIA FERRARI ONE by Cabestan 9130A by Armand Nicolet GRAND ROBUSTO HAUTES VITESSES by Antoine Preziuso

“Retailers need to know the collectors who are able to appreciate and desire these values." Retailers have to get behind the limited editions, understanding them, in order to sell them. “Retailers must be perfectly informed and especially trained about what makes the scarcity of a product,” notes Christophe Claret. “They must know what are the specific innovations, features and customizations of the watches in the limited edition.” “Retailers, which are our first ambassadors, should know as much as they can about the different selling propositions of each model in order to transmit all relevant information to satisfy the needs of the customer,” adds Romain Jerome’s Emch. “The quest for the ultimate collectible is just part of our nature. Everybody collects something. Therefore, having the possibility to obtain something unique and different is highly desirable.” One of the best things about limited editions is that they are normally sold at full retail, without any need to even talk about discounts. “There is no discount to be given because if a customer is interested, there are few other places on earth where he can find this watch,” says Yvan Arpa from Artya and Black Belt Watch. “Making the sale at full margin is now

very difficult for normal watches, so limited editions help retailers hold their prices.” Exclusive products are not the kind of pieces that can be sold on the Internet. They almost require a relationship between retailer and customers, and can help build one between the end customer and the brand. In today’s world, luxury and exclusivity are walking hand in hand. Uniqueness will be valued even higher as the ranks of watch lovers grow. After all, customers don’t want to wear the same watches that everyone else is wearing. True luxury is having something that no one else has, but everyone else values. O

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Eberhard’s new assets RPierre Maillard

Since 1969, Eberhard has essentially been the province of one man—Palmiro Monti, when he became the major shareholder and took over managing the brand. For nearly 35 years, right up until his death in 2005, Monti worked hard to revive and develop this watch company, which was founded in La Chaux-deFonds in 1887, and whose specialty has always been the chronograph. Most notably, Eberhard created the first chronograph wristwatch in 1919 (with a pushbutton at 4 o’clock), followed in 1935 by a two-pushbutton chronograph with stop and start of the hand without a return to zero. Three years later, in 1938, it introduced the first chronograph with an hour counter, while in 1939, the brand created the first flyback chronograph. After the end of World War II, the brand distinguished itself again in this domain when it launched its mythic ‘Extra-fort’ chronograph, characterized by a return to zero, accomplished with the aid of a sliding pushbutton. When Palmiro Monti took control of the company in 1969, the Swiss industry would soon

CHRONO 4 BAD BOY

face its most difficult crisis, one caused by the tidal wave of quartz movements that swept over the industry. Monti was not one to give up, however, and he strove to continue along the mechanical track, demonstrating a high level of technical savoirfaire with the creation of the Chronomaster in 1984 followed by the Navymaster collection and the ‘Tazio Nuvolari’ chronograph, named after the ‘crazy’ famous Italian runner. In 1996, Monti made quite an impression with the launch of the ‘8 Days’ timepiece, the first watch—manually wound—to achieve eight days of working reserve, made possible because

of the utilization of two barrels, one of which contained a spring measuring 1.35 metres. Yet, positioned at a price of 2,600 CHF, this timekeeper was paradoxically considered to be ‘too inexpensive’ for the epoch and did not enjoy the success that this innovation deserved.

Creation of an icon Palmiro Monti followed the ‘8 Days’ timepiece with another model that, this time, would enjoy huge success, eventually becoming the absolute emblem of the company even up to today. This was the famous Chrono 4, created in 2001. Unique in watchmaking, it aligned four counters

LOUP DESIGN

A LEGACY FOR TOMORROW

TECHNICAL AND PRECIOUS FINE WATCHMAKING DRAWS ITS LEGITIMACY FROM KNOW-HOW AND INNOVATION.

THE FONDATION DE LA HAUTE HORLOGERIE, THROUGH ITS ACTIVITIES, FOSTERS AND BRINGS TO LIFE VALUES OF CREATIVITY, CULTURE AND TRADITION.

Partners of the Foundation: A. Lange & Söhne – Antoine Preziuso – Audemars Piguet – Baume & Mercier – Boucheron – Cartier – Chanel – Chopard – Corum Daniel Roth – Fédération de l’industrie horlogère suisse – Gérald Genta – Girard-Perregaux – Greubel Forsey – La Montre Hermès Hublot – IWC – Jaeger-LeCoultre – JeanRichard – Montblanc – Musée de l’horlogerie et de l’émaillerie, Genève – Musée d’Horlogerie Beyer, Zürich – Musée d’horlogerie du Locle, Château-des-Monts – Musée international d’horlogerie, La Chaux-de-Fonds Panerai – Parmigiani – Perrelet – Piaget – Richard Mille – Roger Dubuis – TAG Heuer – Vacheron Constantin – Van Cleef & Arpels – Zenith

HAUTEHORLOGERIE.ORG

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five links with softened edges, or an exclusive version with diamonds. It all comes together to make Gilda one of the most beautiful ladies’ watches of the year. Eberhard’s foray into the feminine sector has been a total success.

Conquering the markets

placed horizontally for hours, minutes, small seconds and GMT time. This particular sequential arrangement allowed for the reading of short time intervals that was both immediate and global, although it also involved a quite complex level of construction. When Palmiro Monti’s passed away in 2005, the compamy was taken over by his daughter, Barbara Monti, aided on the business side by her husband, Mario Peserico. The following period was one of readjustment, made necessary because the colourful Palmiro Monti was the soul of the brand. “We revisited our offer”, explained Mario Pesrico, “since we wanted to adapt it to the new timekeeping environment by bringing in more added value and more watch functions while conserving the soul and spirit of the company.”

Re-launches In 2008, Eberhard reintroduced the ‘8 Days’ model, and increased its size from 37mm to 41mm in diameter. The Chrono 4 also underwent several changes and its size passed from 40mm to 43mm. The Chrono 4 Grande Taille also became sportier. Mounted on a rubber strap, its pushbuttons and crown were also covered in rubber. Another change was in the alignment of the counters, which were placed vertically in the amazing Chrono 4 Temerario. Tonneau-shaped, this chronograph has its two pushbuttons situated at 11 o’clock and

GILDA

at 1 o’clock while the winding crown is at 12 o’clock under a small closable flap. This year at BaselWorld, Eberhard presented an even stronger and sportier version of its icon— the Chrono 4 Bad Boy. With its 46mm diameter, commanding forms, rotating bezel, protected crown, three-dimensional dial, tachometric scale in km/h, water-resistance to 200 metres and a seemingly sculpted rubber strap - this chronograph certainly deserves its name. It also demonstrates the quality changes that have taken place in the concept of the Chrono 4.

The beautiful Gilda Even though an essentially technical—and therefore masculine—brand, Eberhard has now entered into a new area, the feminine timepiece. And enter it has, with grace and style. Barbara Monti has created an oval watch in the form of an eclipse, with curves all around and a case back engraved with a delicate floral motif that also shows its name: Gilda. These new ladies’ watches feature very clean and pure dials, which are available in a choice of a white mother-of-pearl with stylized Roman numerals, or a white satiny finish with two large Roman numerals set with diamonds, or even a satiny pearl grey treated with ‘black gold’. There is also a choice of straps and bracelets: pearly white alligator leather, rows of

Eberhard’s new launch coincides with its plans to conquer the markets, most notably the Asian market. “For now, we are producing approximately 15,000 watches per year,” explains Mario Peserico,“destined for our principal market, Italy, where we have 300 points of sale, a number equal to what we have in the rest of the world. Our goal therefore is to open new markets. To do this, we are offering what I believe to be a very favourable price/quality ratio, with an average price between 4,500 and 5,000 CHF. As an example, the price of our new Gilda collection, with quartz movements, ranges from 3,000 to 9,500 CHF, for a quality product that we can really consider as haut de gamme.” Asked about the brand’s strategy in terms of movements, Mario Peserico is very frank: “For the moment, creating our own in-house movement is not indispensable. In the current economic situation, the supply of movements is easily accessible and guaranteed. We work essentially with ETA calibres as a base on which we develop our own exclusive modules such as for the 8 Days or the Chrono 4. Despite the increase in prices, ETA bases remain very advantageous and are of excellent quality. Moreover, our production is guaranteed to be 100 per cent Swiss, which not all brands can claim. We feel that we have good positioning and a good offer that will let us expand our markets. This is primarily what we are concentrating on today. We believe that success is around the corner, since from both a design and price point of view, our offer is in tune with the times. Clients today want value for their money. And this is what we offer them—not only in terms of exclusivity but also in terms of service, which is essential today.” O For more information about Eberhard click on Brand Index at www.europastar.com

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From AJS to Chevrolet RPierre Maillard

In 1998, André and Josette Saunier created AJS Productions. Today, installed in a new factory in Porrentruy, AJS has an impressive portfolio of 220 clients. They range from the midrange to the high-end, and even to the ultra high-end, and include some of the biggest names in the watch industry. (We can affirm this because we saw firsthand some of the pieces in production.) AJS produces dials, hands, bezels, cases, clasps, oscillating weights, rubber straps and even precision parts such as balances, toothed gears, pivots for hands, screws, crowns and pushpieces. It also creates specialty devices such as patented luminescent capsules as well as additional mechanisms as epitomized by the very interesting semainier that was designed and crafted for Cuervos y Sobrinos. AJS also assembles watches, including encasing and renovating movements, applying decoration, circular graining and engraving.

Versatility Clearly, this is an extremely versatile company, whose versatility is also seen in its very fluid

spatial organization and the diverse competencies of its employees. “Here, we don’t have workers”, declares André Saunier, “We only have managers”. His comment was corroborated by the employees themselves. Thanks to this generalized sense of responsibility and a relaxed management style, the ambiance is really quite extraordinary and very friendly. This does not preclude—quite the contrary— a high level of efficiency at the company. In fact, it even strengthens its reactivity. As a direct subcontractor or sometimes a “subcontractor to a subcontractor”, as André Saunier says with a smile, AJS Productions has always been self-financed, with the exception of the lease on its high-performance equipment. Among these tools are the new five-axis

Chiron milling machine, capable of making plates and other components, and the very advanced, versatile, and ultra-precise tooling machine using wire electro-erosion. “The economic crisis had one advantage,” adds André Saunier. “The machines today are being sold for 50 per cent of their original prices.” And, since he brought up the ‘crisis’, we asked Saunier what his thoughts are after the first half of 2010. “For twelve years, our turnover increased by 20 per cent each year. During the summer of 2009, while everything else was slow, we were still up by 18 per cent. Then, starting in October and November of 2009, things went drastically downhill—we were down 40 per cent. Today, we are working again but all the orders that we signed in Basel have not yet been confirmed.

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BRANDS 53

The watch market has become a little like dealing with carpet salesmen!”

From the other side of the screen A thin ‘screen’ separates AJS Productions from the watch brand, Louis Chevrolet. André and Josette Saunier took this big step six years ago. Creating their own brand was important to them, and we can certainly understand why. All, or nearly all, of their amazing and versatile production tools can easily be put to this use. “At that time, we had a bit of luck and we were also rather naïve”, explains Saunier, “because, in the end, a brand is only worth what you make of it. We soon realized that the respective hunting grounds were very well guarded. But in good years and in bad years, we have grown and our offer has become more coherent with more depth”. The story is really quite wonderful. Louis Chevrolet, who gave his name to the famous

FRONTENAC 10500

American car brand, was a child of the land, born December 25, 1878 in La Chaux-deFonds, the son of a watchmaker. He began his initiation into the world of mechanics in his father’s atelier. In 1900, he set out to find the American Dream, first by emigrating to Canada and then moving to the United States. The rest, as they say, is history. He became a mechanic working on auto-

mobiles, then a pilot. At the steering wheel of his machines, he won many of the most important racing competitions. Breaking all records, he soon become famous throughout the country. He worked at Buick, then in 1911 along with the millionaire William Durant, created the Chevrolet Motor Company. Louis’ following adventures proved more difficult. He closed the door on Chevrolet and returned to racing with his famous ‘Frontenac’ vehicles. He regained his fame alongside his brother who was killed during a racing accident the evening before he was to be crowned the race car champion of America in 1920. Louis then devoted his efforts to aviation until the crisis of 1929 put an end to his plans. In 1934, he fell ill and passed away in 1941.

An epic birth So, exactly how did this brand that bears such a famous name see the light of day? “One day, a guy came to me and suggested I take the brand ‘Louis Chevrolet’. It took only ten

54 BRANDS europa star

them is the Frontenac 7100, a powerful 43mm mechanical chronograph (ETA 7750) in stainless steel that is water-resistant to 100 metres. A limited edition 45-mm Frontenac 7500 comes with a very structured contemporary dial. The brand also offers more ‘urban’ models, if we might use the term, with either mechanical or quartz movements such as the quartz Frontenac 5500, equipped with a large date and a retrograde semainier, or the very elegant and classic automatic Frontenac 9500. For the ladies, there is the beautiful Frontenac 10500, with a quartz movement. In the works is an innovative concept watch called the Frontenac Driver, a remarkable fusion between the automobile and the watch that has never before been taken to this point.

“Never give up”

FRONTENAC 7500

seconds for me to decide and I immediately registered the name in Switzerland, the United States, Europe, China and Taiwan, etc. There were 87 oppositions including one from General Motors, but GM had nothing on Louis Chevrolet—no archives, not even a single photograph. And he was their cofounder! They wanted to write a book so they contacted me directly since they knew that I had all the rights to the photos of Louis. I gave them the rights to reproduction and they made their book. One day I ran across some of the top directors at Chevrolet and offered them a watch that I had already made. I also

mentioned that there were 87 oppositions. A while later, I saw them again at the Manicourt circuit and they told me that everything was OK. All the oppositions had been dropped thanks to their army of attorneys.”

Frontenac The first collection dedicated to Louis Chevrolet logically bears the name of his famous race car, the Frontenac. These are essentially sports watches in a style that we can qualify as ‘neoretro’, complete with a few strong identifying signs—the number 8 (Louis Chevrolet’s favourite number), the laurel leaves and the fluted sides—that evoke the dashboards of the cars of the early 20th century. Among

Today, Louis Chevrolet produces about one thousand pieces per year but Saunier quickly adds, “we have the capacity to rapidly increase this to 2,000 per year. Our price/quality ratio is excellent, with prices starting at around CHF 700 for a quartz timepiece to a maximum of CHF 6,000 for an automatic chronograph that has been decorated and finished in keeping with the art of haut de gamme timekeeping. The average price tag is between CHF 1,000 and CHF 2,500”. He goes on to explain, “Our distribution is rather particular. We have important distribution contracts in the USA and in Russia. We have some presence in France and in Spain but we have no stores in Switzerland. In our own country, we have hit up against the famous glass ceiling that locks up distribution. Be that as it may, while waiting for the situation to change, we sell around 600 watches a year directly from the factory.” “Never give up” was Louis Chevrolet’s motto— a motto adopted in unison by the Saunier family (son Anthony is responsible for technical development and design), and which is clearly echoed in their watch brand. O For more information about Chevrolet click on Brand Index at www.europastar.com

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56 BEHIND THE SCENES europa star

Crystal clear Watch crystals are rarely referred to in the pages of Europa Star, except perhaps for the occasional mention in a watch caption, but the art of crafting sapphire crystal is a fascinating affair, as our editor Sophie Furley discovered during her visit to Stettler Sapphire in Lyss, Switzerland.

RSophie Furley

Underground origins In its natural form, sapphire crystal was formed under the Earth’s crust millions of years ago. Crystals appear when the liquid in the Earth consolidates and the temperature drops, or when water passes through clefts under the ground, dispensing minerals in between the rocks. However, it is also possible to make synthetic crystal, which is quicker to produce, has far fewer impurities and doesn’t require any mining!

Windows on watches Watch crystals were first placed on pocket watches to protect the dial and underlying movement from water, dust and knocks. They have been an integral part of watchmaking ever since. Watch glass or crystal comes in all shapes and forms—circles, squares, rectangles, ovals, curved, domed and often with numerous facets. Some have built in magnifiers, a blue or green tinge, anti-scratch coatings or antireflective treatments that make them almost invisible to the naked eye. Perhaps because of its unobtrusive nature, the watch crystal isn’t a component that commands much interest, that is, until you know how it is made. There are three main materials that are used as watch windows: Plexiglass, mineral glass and sapphire crystal. Diving and sports watches are sometimes fitted with Plexiglass, an extremely hardwearing and inexpensive material that is also used in the fabrication of motorcycle helmet visors and aquariums. Although Plexiglass is almost indestructible, the downside for watches is that it scratches relatively easily and reflects a great deal of light. Glass, or mineral glass as it is often called, is

with fine timepieces will have noticed how transparent watch crystals are. Sometimes, under certain light, we even question whether the watchmaker has forgotten to fit the crystal at all, and our fingers become possessed as they move towards the dial for a little poke to reassure ourselves that everything is in order! But where does sapphire crystal come from?

A trio of processes

Top: EFG process / Bottom: Crystal polishing

mostly found in mid-range watches; it also reflects the light and scratches easily, but the advantage is that the scratches can be polished away. For high-end watches, most watch brands prefer to use sapphire crystal, a material that is so hard that it will only scratch if it comes into contact with a diamond or another crystal. But it isn’t only the durability of the surface that attracts watchmakers. Anyone familiar

For industrial crystal production, there are three main techniques – the Verneuil, EFG and Kyropoulos processes. The Verneuil method, a flame fusion growth technique, was invented by the French chemist Auguste Verneuil in 1902. The crystal starts life as an aluminum oxide, Al2O3, that is grown by placing a sapphire crystal seed into a kiln. The aluminium oxide is fed into the kiln with a hydrogen and oxygen flame (at temperatures exceeding 2,000 degrees centigrade) and the material gradually settles on the seed, forming a carrotshaped crystal rod. These rods are perfect for producing round watch crystals. For square or rectangular crystals, the EFG method, developed by the Polish scientist Jan

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BEHIND THE SCENES 57

Czochralski in 1916, is preferred as the crystals grow in a rectangular form. A tiny sapphire seed crystal is placed into a tungsten mould containing molten aluminium oxide, and then slowly withdrawn upward resulting in flat crystal plates. For much larger crystals, the Kyropoulos process (invented by Spyro Kyropoulos in 1926 at the Physical Institute in Gottingen, Germany) is mostly used as the crystals are grown in large melts where the crystal forms in a large, single block.

Stettler Sapphire Stettler Sapphire has been supplying the watch industry since 1881 when Hans Stettler set up the family business making semi-finished jewels for watch movements. In the 1950s the company started developing watch crystals and this has since become its core business. Five generations later, under the direction of Martin Stettler, watch crystals now represent

around 80 per cent of the company’s production, with the remaining 20 per cent of its output dedicated to applications such as photo, laser, medical, optic and sensor technologies. The company’s ultramodern manufacturing processes can produce anything from a handful of crystals for a limited series of wristwatches to the industrial production for many of Switzerland’s traditional brands. Stettler Sapphire grows a small percentage of its own crystals at its second facility in Mauritius, but it also has partnerships with suppliers of raw crystal all over the world. Stettler’s expertise lies in the transformation of these raw crystals into some of the most incredibly shaped watch crystals on the market today.

Raw crystal to watch crystal When the crystal is ready to be machined, the raw material is glued onto a support with an adhesive putty. It is then loaded into a machine that slices through it to create rough looking discs or squares. At this stage the crys-

tals are opaque (it is only when they are polished that they become transparent). The next stage is to load them into a large milling machine that will grind away at the crystals until they are the required thickness. This is a long operation as crystal registers nine out of ten on the Mohs scale (the second hardest material after diamonds, which register a maximum 10 Mohs). All the operations needed to cut, grind, bevel or polish the crystals require diamond tools or diamond paste, which is one of the reasons why sapphire crystals are so much more expensive than other materials. The next step is polishing, which is a huge part of the operation, and Stettler has a myriad of machines (many of which they have designed themselves) to polish every single facet of a watch crystal, and when that is not possible, they have a team of hand polishers who will meticulously polish where the machines cannot go. Not all crystals have flat surfaces; there are convex crystals, box crystals, crystals with apertures, loupes and so forth, that all need to

58 BEHIND THE SCENES europa star

be polished to perfection. “If you polish away too much material on one side of a crystal, it will be evident to the wearer once the crystal is mounted, even if it is a hundredth of a millimetre off,” explains Beat Allemann, Stettler’s Head of Sales and Marketing.

Crystal challenges The process of cutting, grinding and polishing sounds simple in words, but there are a number of challenges when working with this special material. One of the main problems is that there is always a risk of impurities in the form of bubbles or lines. The only time these can be detected is after the crystal is fully polished. So it is during the final quality control process when any blemishes will become disappointingly apparent. When some crystals cost as much as $15,000 to produce and hundreds of hours of production, an impurity can be a major set back. “Working with crystal is the biggest challenge as it is a living material,” shares Martin Stettler. “One crystal differs from the next, one supplier differs from another; it is impossible to manage 100 per cent.” But it isn’t only impurities that can cause problems; the only two materials that can scratch crystal are other crystals and diamonds, and both are present along the production line. It is essential to be as meticulous as possible when handling the crystals. The Swiss watch industry is well known for its high quality standards and there is no room for compromise. Being a family business also presents its own trials, as many retailers will be able to sympathise with. “To act as an independent, family business is tough,” notes Stettler “There are

only a few big groups in the watch industry and their market power is much greater than ours.”

They don’t impede the visibility, but they are noticeable at certain angles.

Anti-reflective coatings

The crystal trend

But let’s return to the crystal’s production as the journey doesn’t end here. After the crystals pass quality control, they will then go to other partners who specialise in the application of different treatments and coatings. The most common is the anti-reflective coating, which is a film that is applied to the crystal to reduce the reflection of light and improve the view of the dial. Developed by the Ukrainian physicist Alexander Smakula in 1935 while he was working for the Carl Zeiss optics company in Germany, the technology was a German military secret during World War II. A compound of aluminium oxide (Al2O3) magnesium fluoride (MgF2) and hafnium dioxide (HfO2) is heated to 1,800 degrees Fahrenheit in a vacuum. The compound melts and then evaporates into a gas and disperses throughout the chamber. When the gas comes into contact with the crystal it condenses on the surface. The process is basically the same as if you stand over a pan of boiling water with your glasses on; the water evaporates and condenses on the lenses. The only difference is that the steam disappears at room temperature, where the anti-reflective coating fixes at room temperature. The same process is used for adding the green or blue tint that is popular on some sapphire crystals, or an additional anti-scratch coating. Although the objective of the watch crystal is to provide an unobstructed view on the dial, most brands like to be able to see the crystal just slightly, this is why the coloured tinges are so popular.

The use of sapphire crystal is not only reserved for protecting a dial. More and more watch companies are experimenting with crystal for other parts of the watch too. Century uses a selection of hand-faceted sapphire crystal cases and bezels in both its men’s and women’s lines. Louis Vuitton’s Tambour Mystérieuse features a mysterious movement in which the hands, mounted on crystal discs, seem to float unattached to its watch movement. Ulysse Nardin uses a clear crystal baseplate and blue crystal bridges in its Royal Blue Tourbillon to allow a transparent view of its movement; Corum also uses grey-tinged crystal plates and bridges in a recent version of its Golden Tourbillon Panoramique. Breitling, among others, has coated the crystals of its timepieces with antireflective coatings on both sides to optimize clarity. And MB&F has just launched its new Horological Machine No. 4, the Thunderbolt, whose production takes the watch crystal to a whole new level. In an industry where the workmanship, details and finishing of a timepiece are, for the most part, on full show, the beauty of the sapphire crystal is in its invisibility, its discreetness and its service to the rest of the timepiece. It is a noble component that deserves to be noticed and appreciated, even if it isn’t supposed to be seen! O

Timepieces featured in this article are examples of watch crystals only and are not necessarily products of Stettler Sapphire.

60 AFTER SALES SERVICE europa star

Servicing mechanical watches an opportunity to shine RKeith W. Strandberg

“The market is saturated with retail jewellers selling timepieces, but very few are service driven,” he continues. “Watches are living, breathing animals, every timepiece that is sold will need a service at some point in its lifetime. I would advise every retailler to hire and train an individual to professionally manage their repair department. Make it a profit centre for your business - if you can provide excellent service, you will gain respect and trust from your customer. They will come back to you when they are ready to invest in a new timepiece.”

Lately, there has been some doom and gloom about the service aspect of the watch industry. Too many brands are doing a poor job of servicing watches - taking too long, not doing the job right the first time, and in general disappointing the end consumer. Too often, this reflects badly on the retailer, with whom the customer has a relationship, not necessarily impacting the brand. “After sales is as important as sales,” says Denis Asch, owner, L’Heure Asch, Geneva, Switzerland, pulling no punches. “We keep clients loyal with quality and an efficient after sales service. A satisfied client will talk about the brand, but also about a store’s great service. And on the contrary, if a watch stops working, the store is always in the front line for complaints.” The time has come for retailers to take back the power in the service relationship and demand better service from the brands, and to see service as an opportunity to shine in the eyes of their customers. Sure, there are things out of your control as a retailer, but with after sales service, take the reins where you can.

Communication and trust If you have ever been stranded at an airport with no news about the flight for which you are waiting, you know how frustrating it is to not have communication. When you accept a timepiece for repair, it’s vital for you to communicate with your customer throughout the course of the repair. “No one likes to feel like they have been forgotten,” says Ron Stoll, President of Carl F Bucherer North America, and also the owner of one of the most respected watch repair companies in the USA, Stoll & Co., based in Dayton, Ohio. “I foresee that service will become more of a challenge for consumers and retailers, due to the incredible number of mechanical watches produced and sold in the last 15 years.

The quality of the service experience First and foremost, for your after sales service department to be successful, the watch has to be serviced correctly. Too many retailers have horror stories about sending watches back to the brands to be repaired, only to have them returned with the problem still there. That’s one of the reasons more and more forwardthinking retailers are setting up or expanding their service areas. For service to be excellent, the timepiece has to be both mechanically and cosmetically perfect. “Great service, personalized attention, will always stand out over a standard service,” says Asch. “It sometimes happens that when the service or a personalized surprise amazes

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Photo: Kristian Skeie

a client, he then feels indebted - it’s human and legitimate, and can transform into a good opportunity to sell.”

The length of time Typically, a repair comes in and the first step is to provide an estimate, so the customer knows what to expect. Then, after the estimate is approved, the watch is serviced. In today’s day and age, where modern computerized cars can be repaired in one day, it’s hard for customers to accept that watches will take much, much longer. Again, stories abound of watches that have taken six months or more to repair. The better you can be at managing the time it takes to repair a watch will go a long way to assuring that your customer has a positive experience. If the watch is super complicated and needs to go back to the brand for service, the wait will obviously be longer. That’s where communication comes in, informing the client about what is happening with the watch. “The majority of clients don’t want to wait and don’t know how to wait,” explains Asch. “I feel that they prefer to pay and wait less. They have to give up their favourite watch, it is almost a painful separation, the less they wait, the better it is. And of course quality service is of utmost importance - we must always preserve this equation of irreproachable service in the quickest time.” Education is vital here, explaining to the customer why it can take so long to fix a complicated watch. Some retailers provide a replacement watch for the service time, while others

Photo: Kristian Skeie

don’t bother, because if it’s a special watch that needs to be sent away, chances are the customer has another watch he can wear. “The length of time that it takes to provide the estimate and how long it takes to perform the service work, once the estimate is approved, is so important,” explains Stoll. “We work hard to turnaround watches in the quickest time possible, while also communicating with the client every step of the way.”

The challenge of in-house movements As the Swatch Group continues limiting access to movements, more and more brands are developing their own in-house movements. This presents a potentially huge problem for repairs, as each of these new movements is different from the others. In the past, most watches used ETA movements, for which the watchmakers in repair centres were trained. Now, the watchmakers will most probably not be trained on the YZ1000 movement from Company X, so the watch is going to have to be returned to the factory, which means increased delays. The burden here will be on these brands to manage their after sales service departments very well. While it’s true that more watchmakers are coming into the industry, as schools continue to open around the world, but at the same time, the best watchmakers don’t necessarily think about service first. Many want to create new watches, not service existing watches, so finding the best watchmakers for service work can be a real challenge.

Photo: Stoll & Co.

SALES SERVICE 61

Photo: Kristian Skeie

“I am worried because a lot of brands are not doing the necessary work to ensure a good and rapid follow-up, because obviously there is less added value for repairs than for sales,” says Asch. “Too often, many brands make their clients wait way too long, even if they do give a quality service.”

The future Given the amount of mechanical watches sold over the past two decades and the lack of qualified watchmakers, and the increasing number of in-house movements on which watchmakers are not trained, there could be real trouble in the coming days. Investment is needed, to prepare for the future and to keep your customers happy, because the bottom line is that it’s not a question of if, but of when these mechanical watches will be brought in for service. The time has come for retailers to invest in state-of-the-art after sales service facilities, or to align themselves closely with a third party vendor in their own country. “We are a service company, therefore we have made the investments in newest testing equipment/tools available from Switzerland, and have built and staffed our workshops to facilitate servicing the most complicated mechanical timepieces,” says Stoll. “We are also very advanced in our I.T. department, giving us the ability to process repairs quickly.” The time has come for retailers to take action, to solve the problem before it becomes unsolvable. O

62 POSTCARD europa star

tar 25 S s pa cia o a r c Eu sA de va ene G nd 1227 rla e z it Sw

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Postcard from San Diego –

Training with the Navy SEALs RKeith W. Strandberg, International Editor Perched on my knees at the edge of the airplane door, the plane ane at 14,000 feet, I watched the elite Navy SEAL ‘Leap Frog’ jump team m soar through the thin air. I briefly thought “What I am doing here?” but my musing was interrupted when my instructor tossed me into the abyss. byss. 15 seconds of sheer, abject terror later, I came to my senses, enjoying ing the sensation of free-falling towards the earth, admiring the views above San Diego. When the parachute canopy opened above me andd I was safely descending towards the landing area, I said a quiet thank you to still be alive, and focused on the days ahead – an experience designed ned by Jaeger-LeCoultre to explain their partnership with the US Navy SEALs. EALs. Over the course of the next two days, in addition to jumping outt off an airplane, I would be firing all sorts of guns, learning all about SEAL training and tactics, tour the usually off-limits SEAL training centre on Coronado Island, get to know the Navy SEALs testing Jaeger’s latest SEAL watch and be driven into the ground by these same gentlemen.

The partnership Jaeger-LeCoultre decided to develop cutting-edge diving timepieces and to make sure they were doing it right, they approached the Pentagon to involve the Navy SEALs in testing the watches and providing feedback.

As the Navy’s elite squad (SEAL stands for SEa, Air and Land), they were w in a unique position to put the watches through incredible testing testin – diving, breaking jjumping i outt off airplanes, i l di i shooting h ti firearms, fi b ki down d doors, hand to hand combat, doing covert operations and more. Jaeger announced the partnership at the 2009 SIHH and I will be the first one to admit I didn’t understand it. After all, the SEALs weren’t exactly in the position to buy an expensive Swiss watch. Now, after spending some time with both sides of the partnership, I understand – the SEALs test and provide feedback on the watches, Jaeger gets access to these consummate professionals, benefiting from this association, and watch lovers get an extremely capable timepiece available in very limited quantities.

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The watch

The training The SEALs are trained to do it all. Not only is the training claimed to be the most rigorous of any military team anywhere in the world, it is incredibly comprehensive. SEALs are trained to work anywhere and everywhere – they are incursion experts, demolition certified, skilled in all weapons and in hand-to-hand combat and can withstand circumstances seemingly impossible to survive. The six months of SEAL training comes after Navy basic training and includes a week long ‘Hell Week’, with everything designed to force the recruits to eliminate themselves. One active SEAL told me that his class had 240 recruits and the graduating class numbered only 19! I got the chance to train with the SEALs for a little bit and I came away extremely impressed with their abilities, their knowledge and their skills. They showed me how to shoot handguns, shotguns, AK-47s, M4s and more. Then, the next day, they ran me around on the beach, making fun of me, making me do pushups, team-building drills and then forced me into the freezing waters of Coronado Bay. And I loved every second of it!

Jaeger-LeCoultre introduced a new watch, the Incursion, which is limited to 19 pieces in yellow and 62 pieces in orange (1962 is the year the SEALs were founded). The timepiece was heavily influenced by the feedback of the SEALs, who wanted a non-reflective case surface, smoother lugs, greater luminosity and more. “The logic for us was that if we wanted to have the ultimate diving instrument, we wanted it to work with the best, and that was the Navy SEALs,” says Jerome Lambert, President, Jaeger-LeCoultre. “We wanted to develop a watch that was extra shock resistant, we needed to find out what the ultimate test for these watches would be. The SEALs are giving their time and their effort, and we really appreciate this. “The feedback from the SEALs was crucial to the development of the watch,” he continues. “It was like a report that they would do for a handgun. The watch has been reinforced in the bezel, the strap has lots of different variations and sizes, the Super Luminova is much brighter, the lugs were smoothed out, and they asked for a duller finish, for undercover work.” The watch, given its capabilities and serious design, should be a hit with collectors and watch lovers the world over. Working on the development of the watch was no day at the beach, like my SEAL training, but as my SEAL instructor and one of the watch testers, says to his recruits, “The only easy day was yesterday.” O

64 RETAILER PROFILE europa star

Scottish time: Hamilton & Inches, Edinburgh, Scotland It is said that people from Edinburgh, no matter where they are in the world, instinctively check their watches at 1:00 pm, expecting the castle gun to fire. This anecdote is told about the gun and Edinburgh retailer Hamilton & Inches: While at the Castle, a reporter asked the man who fired the one-o'clock gun how he knew the exact time. 'Easy', replied the man, 'I check my watch every morning by the clock in Hamilton & Inches window. The reporter then went down to Hamilton & Inches and asked how they checked the clock in their window. Came the reply: 'By the one-o'clock gun'.

RKeith W. Strandberg

years, we focused on repairs, but for the last 20 years, we’ve turned it into manufacturing.

ES: Please give me the history of your store and your background. SP: I started in August of 1979, straight from school. The business was a family store originally, founded by Robert Kirk and James Hamilton and it was family-owned by the Inches family until 1992. In 1992, the company ran into some financial trouble and it was bought by Asprey of London. In 1998, four of us here did a management buyout and bought it back into private Scottish ownership. Our heritage is Scotland and it’s something that people up north of the border quite like.

I visited with Stephen Paterson, the Executive Director of Hamilton & Inches, while I was in Edinburgh, Scotland. Founded in 1866 in Edinburgh, Hamilton & Inches is the leading retailer in Scotland and their main store (they also have a small store in London) is located on the Royal Mile, the street that runs from the Castle down to the Queen’s residence where she resides while in Edinburgh.

Stephen Paterson

Europa Star: How's business? Stephen Paterson: We’ve been very lucky. We just finished our financial year and we were far better in terms of gross profit than anticipated. The watch business has helped, it’s about 48% of our turnover. We have very good relationships with our vendors and we’ve managed to get some quite nice allocations, like higher priced Patek Philippes, which helped our figures. We’ve found, in these times, that trust

plays a big part in our business. If people are spending large amounts of money, they need to know they are getting value. One of our unique selling points is that we manufacture our own silverware. We have fantastic silversmiths upstairs. We do nice commissions, which help us - it’s a bespoke service and it’s something that not everyone in the UK can do. For many

ES: How has business changed in recent years? SP: It all started in September in 2008 and at that time, coming up to Christmas, we got caught out a wee bit. We thought people who were buying would continue to buy nice things. We were caught out by the guilt factor and this has been an underlying tone for the last couple of years. People who owned businesses and were letting people go, felt that they shouldn’t be coming in and spending money. Now, people are beginning to feel more confident and are spending, but they are looking for value. People are more discerning than ever. Rather than being a company that sells jewellery, we wanted to become our customers’ personal jeweller. There’s quite a difference. It’s easy to be a shell and let the brands sell, which gives no identity. It’s better to be a jeweller that advises customers.

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FACTS AND FIGURES Name: Hamilton & Inches Location: Edinburgh, Scotland How long: since 1951 (59 years on George Street), founded in 1866 (in Scotland, on Prince’s Street) Employees: 36 in total, including London (5) Size of store: Five floors, the showroom is on the ground floor. Three floors of manufacturing workshops. Average sale: 2,500 pounds Range of price: 50 pounds to 250,000 pounds Best selling watches: Patek Philippe and Rolex. We sell more Rolexes than any other watch, but Patek Philippe is our highest value. Brands: Patek Philippe, A. Lange & Söhne, Rolex, Cartier, Panerai, IWC, Omega, Chanel, Bremont.

ES: What is the secret of your success? SP: When the founders set up the business, they wanted to provide the best quality products at correct prices. We have stuck to that principle, we haven’t gone down market, so as a result of that, we have been able to attract the big names like Patek Philippe and Rolex. Over the years, we’ve had a very constant staffing. When staff come to us, it’s very rare that they leave. From one decade to another, there is very good continuity. People quite like that there is a face they know in the store. ES: What do you like about your job? SP: Because we have all these high priced items, even though we have earrings for fifty pounds, people can get intimidated because there’s a big door and a grand interior. Many people have this perception of us as an intimidating place. We often get young people coming in looking a little sheepish and one thing that gives me great satisfaction is to find something a young woman can afford, wrap it like it’s worth 100,000 pounds and she can enjoy the experience. I feel very lucky to work here. ES: What is the biggest challenge facing your store right now? SP: It would be easy to say the websites, but I think that anyone who wants to buy something of value still likes the comfort of a jeweller. Some people talk about the watch companies setting up their own shops, but the big boys still honour the family tradition and work through retailers.

ES: What is the biggest challenge facing the watch industry right now? SP: Service is certainly one of the biggest challenges. The industry also has to control the number of pieces made, keeping them exclusive, and also to control the number of doors open. One of the problems we have with the watch houses is the discounting that goes on at airports, and in the UK, especially in Heathrow Terminal 5, some watches we have are being discounted by the VAT factor, which is 17.5%. We have an online shopping part of our website. It’s not a big part of the business, but we want to grow it. The website is more like a shop window for us to bring people into the store. ES: How do you market your store? SP: We do it through our window displays, that’s our strongest part of advertising. We have a catalogue that goes out once a year to our mailing list, which is at about 14,000 people right now. We advertise in national UK press and magazines, but we also try to focus on more local publications. We are trying to encourage customers to brings friends into the shop to do tours of the workshops. It’s great to take people up to meet the craftsmen. We also do events. We are the official jeweller for the Open Championship at St. Andrews, with Rolex. We have a number of charity events, as well. ES: Who is your customer? SP: We have local customers and travellers. We get quite a few customers from England. Our core customer is Edinburgh based, and we get quite a few visitors coming into the city.

We are across the board in age, but the majority of the business comes from the 30 – 65 age range. Men and women are about equal. More men buy watches while more women buy jewellery. We have a very big repeat customer business, probably as high as 70%. We try and offer another service rather than discounting, for example we occasionally do gift with purchase. ES: Are you optimistic about the future? SP: We’ve budgeted for this new financial year to do a flat turnover. I think things will be relatively tricky, but I’m quite confident we are going to have a reasonable year. We are watching our costs and I would be disappointed if we didn’t have the same result this year as we had last year. It’s a period for consolidating, getting the platform right and having a look next year. There is no plan to add watch brands this year. We have a lot of watch brands knocking on the door. We prefer to invest in the watch brands that are performing now and getting more stock in for Rolex, Patek and Cartier. ES: What is your favourite watch? SP: The watch I wear most of the time is a watch given to me by my wife and children for my 40th birthday, which is a Rolex Steel Submariner.O

66 THE EUROPA STAR KNOWLEDGE

europa star

Training retail salespeople the world over RKeith W. Strandberg

As Confucius said, “Real knowledge is to know the extent of one's ignorance.” Europa Star is proud to introduce the Knowledge, an educational programme aimed at retail salespeople. The goal of the Knowledge? To provide comprehensive watch education and arm salespeople the world over with the information they need to sell fine timepieces.

“I have been saying for ages that there was no place to send my team for a formal watch knowledge training course that explained all types of watches from a basic quartz trhough to the most complicated mechanical movements, trade terms and knowledge of what’s happening behind the glass. It is such an important part of selling to know! So it’s great to hear that Europa Star have stepped up to fill this void in our industry! Good luck and, of course, you have my support!” Paul Sheeran, Paul Sheeran Jewelers, Dublin, Ireland

“What a well needed concept for all retailers involved in selling watches. I think business can be enhanced tremendously by the sales force becoming more educated. When can we sign up?” Robin Levinson, Levinson Jewelers, Florida, USA

“Knowledge is the key to selling fine timepieces. With superior knowledge every situation is a genuine selling opportunity. To sell high complication timepieces a salesperson must be like a trusted advisor: the customer needs to feel total confidence in a salesperson’s understanding of the market and ability to offer advice based on informed and practical expertise in the chosen field. “One valued source of knowledge is Europa Star. The integrity and expertise of the most highly respected journalists in the industry makes Europa Star an ideal reference point for our industry. The Europa Star Knowledge training programme will be an invaluable selling tool for the top salespeople in our industry.” Jeremy Oster, Oster Jewelers, Colorado, USA

The Europa Star Knowledge The one thing that watch retail sales associates can never have enough of is...knowledge – of watchmaking in general, of the nuts and bolts of watches (how and why they work), of complications, of service issues, of consumer trends, of selling and display techniques, of the brands they carry and the ones they sell against and more. Currently, watch brands and watch groups do training, but it is often limited and by its nature brand-focused. The Europa Star Knowledge is an independent, multi-level training course for watch retailers, developed by Europa Star’s journalists along with well-known industry experts. The Europa Star Knowledge fills a need that everyone knows exists but no one is meeting. Most sales people

are woefully under-trained, not knowing enough about watches and watchmaking. In fact, many customers who come into a store are frequently more knowledgeable than the sales staff. Backed by industry “bible” Europa Star, based in the heart of the watchmaking industry, the Knowledge Level 1 is a certification programme, a three day basic training programme that gives salespeople what they need to be successful – comprehensive training on the brands the store carries and on the competition, information on watch industry trends, basic watchmaking knowledge and hands-on experiences, watch sales tips, display training and much more.

When and Where? The inaugural Europa Star Knowledge will be held in Yverdon-les-Bains, Switzerland, prior

to the 2011 BaselWorld, so retail salespeople can attend the four day workshop. The programme includes three days of training, one day of visits to a watch industry manufacture and a watch museum, just before the opening of BaselWorld. (The dates are March 20 – March 23, 2011, with BaselWorld starting on March 24, 2011.) At the end of the workshop, there will be a test and all who pass will be officially certified as Level 1 Masters of Watchmaking Knowledge by Europa Star. Come join Europa Star and get the Knowledge! For more information and registration, please visit www.europastar.com/watch-knowledge Contact Keith W. Strandberg: watch-knowledge@europastar.com

LUXE PACK Monaco hall Diaghilev DC5 BASELWORLD 3-2 D10

68 WORLDWATCHWEB europa star.com

The secret of successful watch brand videos AS THE WATCH INDUSTRY TRIES TO GET ITS MARKETING COMMUNICATION UP TO SPEED IN CYBER SPACE, KNOWING HOW TO PLACE BRAND VIDEOS ON THE INTERNET AND DETERMINING WHAT WOULD BE OF REAL INTEREST TO CLIENTS IS NOT ALWAYS EVIDENT.

RIn collaboration with Florent Bondoux, IC-Agency, Luxury Digital-Marketing™ The boom in online watch videos Two billion. . . This is the number of daily visits to YouTube, the leader in social networking, in the sharing of online videos. Five and a half million. . . This is, for the watch industry, the total number (not the daily figures) of views for videos of the 25 watch brands analyzed in the WorldWatchReport 2010. The section devoted to Social Media in the study conducted by IC-Agency in partnership with Europa Star examines the manner in which brands are visible on this particular social networking site. In searching for information on these brands using the internal search engines of YouTube —the second largest search engine after Google in the United States—we quickly found that a large number of videos is available: for example, 5,000 for

Breakdown of most viewed videos by source January to December 2009

Fan 43%

Commercial 22% Corporate 9%

Event 27%

Rolex, 2,300 for Hublot, and 1,900 for Audemars Piguet. In fact, we can find just about everything on YouTube. From aficionados proudly sporting an haute horlogerie model, to advertisements by brands, to reports and corporate films—we must also not forget promotional videos to sell counterfeit items—we are sometimes quite far from the traditional universe that the brands have already mastered. Communication on the ‘model’ dominates on YouTube What is clear is that certain types of content are more popular than others. To identify the key factors in successful watch videos, the WorldWatchReport 2010 study examined and categorized each video according to its origin (where it came from) and its content (what it talks about). The results demonstrate that the mini-films on the various watch models are the most watched videos in the realm of watch communication. In fact, 53 per cent of the total views of the 125 videos analyzed deal with watchmaking products as compared to 26 per cent and 21 per cent for the brands themselves and their ambassadors, respectively. The experts and invited contributors to the WorldWatchReport 2010 study share their opinions on these results. For Robert-Jan Broer, Editor of Fratello Watches, “Video reviews of a watch will give the consumer better insight into the product he or she wants to buy; the product becomes alive.” Ariel Adams, from aBlogtoRead.com, explains that “consumers are very interested in what watches do, seeing them in action, and getting what information they can from videos that text alone cannot provide conveniently.” Fan videos top the list Watch-related videos posted by fans now account for 43 per cent of brand visibility. This presents an opportunity for brands to support these fans, who often have a high power of persuasion. Ariel

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Adams adds, “Fan videos also include the large segment of watch reviews. These are personal reviews by fans that not only provide opinions on ownership experiences, but also provide actual images of what a product looks like. Consumers crave actual images of products in addition to marketing images, which don’t make a product feel real. At the same time, brands should be aware that the opinions and recommendations of trusted fans are highly influential in the purchase decision.” As to the 9 per cent share of views for corporate videos, brands would do well to remember that it is not enough to merely publish their presentation videos on YouTube; they must also adapt the content to these new supports.

The Subject of Watch Brands Videos Content January to December 2009

WORLDWATCHWEB 69

In terms of videos related to particular events, which garner more than 27 per cent of total views, Robert-Jan Broer explains that this type of content “is nice to give the consumer a feeling that he or she belongs to that group of people, owning a watch from a certain brand or type.”

Focus on the 3 most popular videos: Hublot, Rolex and Breitling HUBLOT Jet Man 569’624 / Event / Ambassador BREITLING World Ice Speed Record – Fastest Car on Ice 321 km/h 460’286 / Event / brand ROLEX Rolex GMT Master II Review 340’855 / Fan / Model

Model 53%

Brand 26%

Ambassador 21%

Controlling the content Regarding moving from traditional communication techniques to getting the luxury brand message out on new territories such as social networks, the invited contributor to the WorldWatchReport 2010 study and editor of Hodinkee, Benjamin Clymer concludes, “This brings us back to the control-of-content debate. Brands are simultaneously gaining control over information on some levels—live-casts, direct communication with consumers—while losing it on others. Fans may post whatever they like and have the potential for it to go viral. In the past, many brands discounted the power of one negative review, but now they are forced to realize that one customer can influence millions.” O

Editorial & Advertisers’ index A, B A. Lange & Söhne 65 AJS Productions 52, 53 Antoine Preziuso 46 Antopi SA 51 Armand Nicolet 46 Armin by Armin Strom 35 Artya 44, 46 Audemars Piguet 22, 24, 42, 43, 44, 68 Bell & Ross 25, 43, 44 Black Belt Watch 43, 46 Bovet 24 Breguet 6, 38 Breitling 24, 32, 34, 36, 58, 69 Bremont 46, 65 Bulgari 24 C, D Cabestan 46 Carl F. Bucherer 24, 31, 60 Cartier 18, 19, 22, 65 Casio 34 Century 58 Chanel COVER IV, 24, 65 China Watch & Clock Fair 71 Chopard 18 Christophe Claret 44, 46 Citizen 45 Corum 24, 36, 58 Cuervo y Sobrinos 52 DeLaneau 26, 27, 43 DeWitt 24 Dubois-Dépraz 17 E, F Ebel 33, 42, 43 Eberhard & Co. 48, 50 Ebohr 39

Ellicott 28, 29 ETA 12, 14, 15, 16, 18, 22, 61 Eterna 24 Fleurier Ebauches 17, 18 Fondation de la Haute Horlogerie 49 Frédéric Piguet 14 Frédérique Constant 24 G, H G91 67 Gerge 33 Hamilton & Inches 64-65 Hautlence 13, 44, 46 Hermès 17 L’Heure Asch 60 Hublot 17, 24, 68, 69 I, J IC-Agency 68-69 Ingersoll 41 IWC 65 Jaeger-LeCoultre COVER I, 8-11, 15, 18, 62-63 Jean Dunand 7, 42, 44 La Joux-Perret 16 L, M Louis Chevrolet 52-54 Louis Vuitton 17, 58 LVMH 17 MB&F 58 Milus 12a Montblanc 24 Morf Consulting 33, 34, 36 N, O Nivarox-FAR 14, 23 Nouvelle Lemania 14

Omega 65, 72 Orient Watch Co. Ltd. 47 P, R Panerai 5, 17, 65 Parmigiani 17 Patek Philippe 2-3, 18, 32, 33, 36, 65 Pequignet 24 Perrelet 30 Piaget 43 Promotion SpA COVER III Raymond Weil 20-21 Renaud & Papi 22, 24 Richard Mille 24 Richemont Group 17, 22, 40 Roger Dubuis 40 Rolex COVER II, 15, 65, 68, 69 Romain Jerome 42, 43, 46

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72 LAKIN@LARGE – A TRIBUTE TO NICOLAS G. HAYEK europa star

Stop all the clocks wrap, and carried on talking without really I was just about to go to the beach in Menton acknowledging my offering. We spoke for a when I had a telephone call advising me of while longer and our photographer took the sad news. My immediate reaction was some candid shots. When we left and I had to conjure up a vision of the bearded patriclosed the door to his office, I turned to the arch in a crowded room with the sleeves of photographer and mumbled a little grumpily, his jacket pulled up to reveal two armfuls of “Did you see that, he took all three of my cigwatches whilst holding the inevitable Havana ars.” Before we’d gone ten paces the door delicately between his fingers. The classic opened and he said, “Quick, come with me,” shot. He was the Chairman of the Board, the and we went along the corridor to where natural born showman, the entrepreneur, he Nicolas G. Hayek with yours truly. (Photo: Casey Bayandor) Cindy Crawford was being photographed. He was the man who changed the face of Swiss pushed me inside the room, told me to stand watchmaking … the inimitable Nicolas G. next to Cindy and then, as he left the room, Hayek. The day should have been shrouded in told my photographer to quickly take a couple clouds, not sunny. shots. Seconds later, he popped his head back Many people looked upon Hayek in awe, not around the door just as Cindy slipped her arm only because of his many achievements, but around my waist for the photograph and said also because he had the aura of a man with a winning smile, “That’s worth ten thoudemanding respect. But he was easy to talk sand dollars!” and disappeared. I’m smiling to and with me he was always friendly. I writing this because I wonder to this day if remember one particular occasion in Zurich at the opening of the Omega boutique in the Anna Kournikova, Nicolas G. Hayek, DML. (Photo: C. Bayandor) he’d actually heard my remark! After the ‘phone call, it felt both strange and city when the very beautiful Anna Kournikova was in attendance. Anna, wearing a red sweater and looking absolutely sad that I would never again see him, except in my mind’s eye or in a stunning had the world’s press hanging on to every pout and flick of photograph, and I suddenly recalled the opening verse of Funeral Blues her golden locks. The boys of the press were buzzing round her like the by W. H. Auden: proverbial queen bee, cameras and eyeballs flashing, they couldn’t get enough of her. I suppose I would have been doing the same thing if I’d Stop all the clocks, cut off the telephone, had a camera, but I didn’t so I stayed at the back of the madding Prevent the dog from barking with a juicy bone, crowd and found myself close to the big boss. Silence the pianos and with muffled drum We’d already met a few times, so I sauntered over and began talking Bring out the coffin, let the mourners come. to him. In all honesty, I don’t remember what we spoke about, the brouhaha going on around us, the economy, the oil crisis, Havana cigars, Nicolas G. Hayek was like no other, a colossus amongst us mere who knows, but for a few minutes we both leaned on the sparkling new mortals. He was the genius that put life back into a dying industry, the workbench beside us and chewed the fat. He then asked me if I’d met innovator who put Swiss back into watches, the man who convinced Anna and when I replied in the negative he said, “Come on, I’ll introduce the world to switch to Swatch. He created an empire and achieved you.” And with that we ploughed through the throng and he called Anna what others only dream about. To paraphrase William Shakespeare, he over and introduced me to the blonde Russian bombshell in a very was the man who launched a thousand timepieces. We’ll never see the flattering manner. Anna put her arm around his shoulder and the three likes of him again. of us chatted for a while, with him looking every inch the fatherly figure, exuding warmth, his eyes sparkling with life and good humour. D. Malcolm Lakin On another occasion I had an appointment with him on the opening Roving Editor day of BaselWorld. Having just been given some cigars and knowing his love of the Cuban leaf I put three in my cigar case so that I could offer him one at the meeting. He took all three, delicately adding them to the cigars he’d prepared for that day’s smokes in some bubble

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