UPWARD SWING
The Swiss watch industry bounces back to promising heights
THE UNPRECEDENTED EVENTS OF 2020 resulted in a sharp decline in activity and a historic downturn in the luxury market, including fine timepieces. Swiss watch production came to a halt in spring and was met with a lack of market activity for many weeks, in response to the lockdown. The second wave of the pandemic during the autumn caused further disruption.
The value of Swiss watch exports in this exceptional situation fell to 17 billion Swiss francs compared with 21.7 billion a year earlier, a decline of 21.8%. This is comparable to the fall recorded in 2009 (-22.3%) during the financial crisis, which reduced the value of exports to their 2008 level. Following a historically poor second quarter (-61.6% compared with April-June 2019), the trend gradually recovered, resulting in just a 4.3% decline in the fourth quarter, in spite of the still highly unfavourable circumstances.
The relative improvement in the situation was due almost entirely to China, which recovered sharply from June 2020 onwards (+50.1% in the second half of the year) because of domestic sales of goods that had previously been purchased abroad. It became the leading destination for Swiss watch exports and was the only market to show growth (+20.0% compared with 2019.
In addition to China, the changes that was underway for some years accelerated sharply in response to the health crisis, allowing the sector to adapt more rapidly to new market characteristics. The digitalisation of customer relations and particularly, an increasing share of sales, has created new opportunities and partially offset the difficulties faced by traditional distribution channels. Initiatives in the area of sustainability are also responding to current and future consumer expectations. As the Mary Poppins song goes, “Let the past take a bow. The forever (or ‘new normal’) is now. And there’s nowhere to go but up!”
With the recovery in watch exports that began in the third quarter of 2020 and the swift methods deployed by brands to adapt to the situation, the Swiss watch industry seems to have recovered as quickly as the pandemic came. Following a first half of 2021 that was practically identical to pre-pandemic the marked recovery in watch exports was confirmed in July. Up 7.6% compared with the baseline of 2019, they crossed the threshold of 2 billion francs. This was an increase of 29.1% compared with 2020.
While China continued to perform strongly for the same reasons, with an increase of 75.0%, the US proved to be the leading market in July 2021 with a very strong growth of +48.5% compared with 2019. What’s surprising, steel products have been reported to see a significant drop in volume while watches made of precious metals are experiencing robust demand.
THE SHOW MUST GO ON
As time and tide wait for no man, the Swiss watch industry was quick to adapt, and seized the earliest opportunity to further explore the new normal with these major trade shows in 2021. Here are the highlights.
LVMH WATCH WEEK
Following the success of the inaugural edition of LVMH Watch Week in Dubai last January, LVMH watch brands Bulgari, Hublot and Zenith returned in 2021 with a digital iteration of the event. For a full week in January, industry professionals, members of the media and clients around the world were privy to new offerings from the brands as they continued to drive innovation and push boundaries thanks to their remarkable expertise.
For the 2021 edition, the group’s watchmaking Maisons combined the convenience of digital meetings using state-of-the-art tools with the hands-on experience of one-to-one physical presentations in 15 countries, offering attendees a seamless, informative and interactive experience to discover the brands’ latest releases
LVMH Watch & Jewelry Division CEO, Stéphane Bianchi said that organising a second edition was a natural move, “Once again we have decided to join forces in order to showcase the strength, innovation and watchmaking skills of the Group’s watchmaking brands. The LVMH Watch Week has proved to be an important get-together for our industry in order to meet with all our partners beginning of the year and we are very thankful to them for joining us”.
The second edition kicked off with an online press conference on January 25. For the introduction, Stéphane Bianchi was joined by Jean-Christophe Babin, CEO of Bulgari; Ricardo Guadalupe, CEO of Hublot; and Julien Tornare, CEO of Zenith. Each Maison’s CEO shared about the brands’ strategies and unveiled new exclusive timepieces.
Jean-Christophe Babin noted that the 2021 creations from Bulgari express its Estetica Della Meccanica, “Our unique spirit is anchored in jewelry savoir-faire and craftsmanship with iconic and bold designs, fusing the Italian roots of our DNA with incomparable Swiss expertise.”
Zenith debuted the Chronomaster Sport with an evolved version of the El Primero calibre, a watch for those ready to follow Zenith’s exhortation “Reach for your stars!”
Hublot took the opportunity to launch a series of novelties showcasing its philosophy of always being “First, Unique, and Different,” notably with the new Big Bang Tourbillon Automatic Orange Sapphire, which is, according to Ricardo Guadalupe, “The perfect expression of
Hublot’s Art of Fusion.”
WATCHES AND WONDERS
GENEVA
Watches and Wonders 2021 confirmed its agenda and strengthened its ecosystem through continued strategic partnerships. For days in April, watchmaking dominated the attention of the world on www.watchesandwonders. com where the leading names took the stage and presented their latest products for 2021. All the brands that confirmed their presence included Cartier, Chanel, Chopard, IWC Schaffhausen, Jaeger-LeCoultre, Hermès, Patek Philippe, Rolex, Tudor and Ulysse Nardin, plus firsttimers Bulgari, Carl F. Bucherer, Hublot, Louis Vuitton, TAG Heuer and Zenith.
To facilitate interaction and enable visitors from around the world to enjoy the full Watches and Wonders experience, the watchesandwonders.com platform ‒ successfully introduced in April 2020 ‒ launched with additional features. More interactive, more functional and focused on services and exchange, this upgraded version was designed to favour synergies, communication and networking.
Attendees were more than just onlookers in a robust program that included multiple opportunities to directly interact with the brands through live chats and streams. In addition, to product launches and online press presentations, the organisers took the initiative to produce exclusive specialist contents in the form of a daily live Morning Show, where the public could tune in for a halfhour analysis of the latest news and happenings from the world of watches, plus panels and talks led by key industry figures and influential personalities on important topics such as sustainability, innovation, digital transformation, etc, specially curated by the participating brands and experts at the Fondation de la Haute Horlogerie.
Continuing its partnership with Watches and Wonders, Mr. Porter and Net-a-Porter offered immersive virtual activations, original content and enhanced shopping capabilities including exclusive virtual one-to-one shopping appointments for EIPs (Extremely Important Persons); indepth reviews of the latest novelties and trends; bespoke digital panels starring some of the watch industry’s most influential players guided by Net-a-Porter’s fine jewellery and watch editor, Charlie Boyd, and Mr. Porter’s senior watch editor Chris Hall.
As the leading e-commerce partners of Watches and Wonders, Mr. Porter and Net-a-Porter were given “first-tomarket” access in selling a curated selection of novelties from brands including Cartier, IWC Schaffhausen, Panerai, Piaget, and Vacheron Constantin, allowing customers to purchase these new pieces in real time, during the event, and around the globe beginning on 7 April. They followed up their April activity with a second campaign in September 2021, displaying additional novelties and further celebrating the intersection of fine watches and their luxury style and fashion offering.
SHAHGHAI
Carrying on the momentum from Geneva, Watch and Wonders made its way to the West Bund Art Center in
Shanghai and with 19 watch brands. For five consecutive days from 14 to 18 April, the venue became a destination with an ambitious and wide-ranging program. With full safety measures in place, Watches and Wonders Shanghai provided professionals and guests with the opportunity to immerse themselves in watchmaking excellence and discover, in the flesh, the latest releases as well as trends for 2021.
This time around, the participating brands presented unique pieces and iconic heritage watches. Cartier, for one, showcased a vast range of exceptional creations. For its first participation in Watches and Wonders Shanghai, Rolex unveiled timepieces from its latest novelty collection. Vacheron Constantin, Piaget, A. Lange & Söhne, Ulysse Nardin, Roger Dubuis, Tudor and Baume & Mercier also had surprises in store. Brands such Montblanc, Panerai and Chopard also took the opportunity to announce their brand ambassadors, allowing visitors a chance to come face to face with their favourite stars and famous influencers.
Throughout the five days, Watches and Wonders Shanghai kept up a brisk pace with activities focused on watchmaking culture and learning, including live demonstrations and first-hand workshops. There were also programs that allowed guests to delve into new technologies and innovations at the LAB with IWC Schaffhausen, Jaeger-LeCoultre and Montblanc; and to better understand the challenges and trends in the industry at live talks and panels.
A place for discovery, exchanges and experiences, the first floor of the West Bund Art Center came alive with discussions in the auditorium on topics such as Digitalization in business, the impact of the secondary market in China, 2021 trends, iconic watches and watchmaking’s grandes complications, broadcast live on streaming platforms and social media. Also, five independent artisan-creators, namely H. Moser & Cie., Armin Strom, Arnold & Son, Ferdinand Berthoud and Purnell ‒ presented their creations in a specially dedicated space.
To further its China digitalization and empower new online-to-offline consumption experience, Watches and Wonders collaborated with the most powerful Tmall campaign, Tmall Super Brand Day. During this collaboration, each participating brand offered unique experiences and exclusive offers on Tmall Luxury Pavillion. This unprecedented collaboration featuring 11 of the world’s leading Swiss watch brands is seen as a robust offering of digitalization for the luxury sector; an intense and informative experience for all watch enthusiasts.
On April 15, renowned guest influencer Austin Li will host three hours of live streaming and present 11 exclusive, pre-selected watches to an audience of several million followers. At the end of this extraordinary day, 1,000 drones took to the skies above Shanghai for a Watches and Wonders sound and light choreography, culminating the event in spectacular style.
AFTER THE CORONA PANDEMIC HAD STALLED BASELWORLD OVER THE LAST TWO YEARS, WE TOOK A LOT OF TIME TO TALK TO OUR PARTNERS AND EXHIBITORS. ONE THING BECAME VERY CLEAR: THE BASELWORLD BRAND MUST REMAIN, BUT IT MUST FUNDAMENTALLY CHANGE
— MICHEL LORIS-MELIKOFF,
MANAGING DIRECTOR OF BASELWORLD
The adventure will continue for Watches and Wonders in Sanya, China. Following the success of Watches and Wonders Sanya in 2020, the seaside resort located on the southern end of Hainan Island will be welcoming 13 exhibiting Maisons for this second edition, held from 1 October to 31 December 2021. This gathering, which is undeniably becoming a must-attend rendezvous, will take place on the esplanade of the Sanya International Duty Free Shopping Complex, the world’s largest dutyfree shopping center ran by China Duty Free Group, a subsidiary company of China Tourism Group Duty Free Corporation Limited. The location and the layout of the pop-up pavilions of the participating brands have been redesigned to offer a complete and immersive experience to the visitors.
This year, to meet the specific requirements of VIP and specialist customers, extremely rare, exceptional products will be exhibited as well as a large number of mid-range products to offer visitors a visual impression of the depth and abundance of the offering, and the richest experience possible. The event enhances the opening of the China Duty Free Group and the Hainan free-port zone to the international market and opens up new outlooks for tax free retail with the principle of the “three synchronizations”. Finally, it helps to confirm Hainan’s reputation as an international tourism and shopping destination.” said Charles Chen, President of the China Duty Free Group.
Like the previous edition, the launch of Watches and Wonders Sanya will coincide this year with the Golden Week - from October 1st to 7th- a week of national holidays that is particularly popular with Chinese holidaymakers. Guests - press and end clients - will have preview access to the year’s latest new products. Visitors will be able to discover exceptional pieces, participate in workshops, attend conferences hosted by watchmaking experts and meet personalities invited by the participating Maisons. The program, which will extend over three months, will enable the Chinese and international clientele, beginners and experts alike, to perfect their watchmaking knowledge and discover the latest trends in watchmaking. A space for discussions, experiences and discoveries, Watches and Wonders is making a new port of call in China and continuing to put fine watchmaking on the map.
Baselworld has been breathing life into the world of watches since 1917. It has paved the way for all the players from around the world to come together in one place: manufacturers, buyers, collectors, media, influencers, etc. Despite its long history and symbolic significance, it failed to take place in the wake of the pandemic. Nevertheless, the organisers announced in June 2021 that it is coming back next spring season and assured that it will be very different.
Instead of focusing on the spectacular appearance of luxury brands in the watch, jewellery and gemstone sector, the organisers has revealed that the new Baselworld will primarily be a B2B platform in the mid-range luxury segment. The future concept combines trends in the experience marketing market with the needs of the entire community in the mid- and high-end segment of the watch, jewellery and gemstone industry.
“After the Corona Pandemic had stalled Baselworld over the last two years, we took a lot of time to talk to our partners and exhibitors,” said managing director Michel Loris-Melikoff. “One thing became very clear: the Baselworld brand must remain, but it must fundamentally change.”
Whereas Baselworld used to be the most important annual meeting place for the luxury brands in the watch, jewellery and gemstone industry, the new Baselworld will be a platform on which smaller watches and jewellery manufacturers and gemstone traders can present their products and retailers will have efficient and easy access to the diversity of manufacturers. Baselworld will become a digital platform, supplemented by live events, which will be available to the jewellery, watch and gems industry around the clock, 365 days a year, worldwide.
The date of Baselworld 2022 will be coordinated with the trade fairs taking place in Geneva at the same time and
is intended as an important supplement and additional platform for the exchange of information between all the players in the industry, including those who did not participate in the past.
To be launched in autumn 2021, the digital platform will become a forum for exchange between all relevant representatives of the industry, the public and the media at Baselworld 2022. New tools for content creation will be used, allowing a maximum “touch and feel” experience and providing the opportunity to expand one’s network and exchange information on the latest trends. It will be the first independent platform that combines digital and live events.
“Everyone will meet on our platform. The brands, the manufacturers, the retailers, the fans and the media,” explained Michel Loris-Melikoff. “We will offer attractive conditions and prices for all brands that want to benefit from this unique platform.”
Baselworld officially opened its first ‘pop-up event’ in Geneva in August, at a press conference presenting the new Baselworld spirit, with 10 independent brands and a programme that favours openness, conviviality and networking. The event was meant to be part of the build-up to Baselworld 2022, which will take place in Basel from March 31 to April 4, 2022, marking the first unprecedented step outside its traditional premises to meet the industry and its customers.
Ten watch brands - Claude Meylan, IceWatch, AHCI represented by Ludovic Ballouard and David Candaux, BA111OD Watch Concept, Bomberg, Furlan Marri,
Ikepod, Riskers and Sinn Spezialuhren ̶ all chosen for their independent profile, their size and their distinctive positioning, gathered under the new Baselworld banner, and participated in the new concept to showcase their novelties.
Animating the community all year round 24/7/365, is the core of the new Baselworld concept. With this first meeting, it launched a multitude of events - live and virtual - that will take place on the new digital platform, which will be activated in a few weeks’ time in the autumn of 2021. Original content, events, networking, connections are new tools, for the industry, that have been developed and that will be made available to brands to optimise their audience and their business, all year round, in addition to the physical meeting points.
The business programme was broadcast live, featuring: Espresso Talks between Baselworld Managing Director Michel Loris-Melikoff and Jean-Christophe Babin, CEO of Bvlgari, as well as with Aurel Bacs, Senior Consultant at Phillips in Association with Bacs&Russo. A series of panel discussions on current topics such as Blockchain demystified with Gaetano Cavalieri, President of the CIBJO, the World Jewellery Confederation, whose member associations in more than 45 countries encompass more than 7 million individuals involved in the world’s jewellery and gemstone sectors.
Much of all the above will be replicated on a larger scale at the grand show in Basel next year as the new Baselworld 2022 spirit reveals itself in a new environment as cool, friendly, trendy and open and accessible to all.