BA111OD Chapter 4.1 Discover the 100% Swiss-made skeletonised tourbillon for - BRITAIN'S MOST INFLUENTIAL WATCH TITLE THE BIG INTERVIEW - WatchPro
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BRITAIN’S MOST INFLUENTIAL WATCH TITLE
THE BIG FEBRUARY 2022 / ISSUE 134
watchpro.com
INTERVIEW
HUBLOT CEO RICARDO
GUADALUPE LOOKS
TO BUILD ON A
RECORD 2021
BA111OD
Chapter 4.1
Discover the 100% Swiss-made
skeletonised tourbillon for
under CHF 4,500
GoS Norrsken
Northern lights for your wrist
Handmade in Sweden
www.goswatches.com
thelimitededition.uk goswatches
COMMENT
More watches please
F
PROMEDIA DIGITAL LTD
ew industries embrace the old adage ‘less is more’ quite like
16-25 Bastwick Street, London, EC1V 3PS, UK
Swiss watchmakers. And for good reason. If you are in the Tel: +44 (0)20 3176 4228
business of selling miniature masterpieces, it pays not to Fax: +44 (0)20 3176 4231
make too many of them or they lose exclusivity.
WATCHPRO TEAM
That is one reason why the entire Swiss watch business hit a ceiling a
Co-Founder & Editor Rob Corder,
few years ago when it could not break above an annual global export rob.corder@itp.com
value of CHF 21 billion. Tel: +44 (0)20 3176 4227
Co-Founder & Publisher
Last year was an all-time record for the Swiss with total exports valued at CHF 22.3 billion, but this Daniel Malins, daniel.malins@itppromedia.com
doesn’t sound quite so exciting when you take into account Swiss watch exports were CHF 21.5 Tel: +44 (0)20 3176 4225
billion six years ago in 2015. Associate Publisher
Alex Douglas, alex.douglas@itppromedia.com
Manufacturing precise, micro-engineered and intricately decorated timepieces is very difficult, Tel: +44 (0)20 3176 4235
and so is increasing production. Head of WatchPro Live
Lucy Cheesewright
But production has actually been falling significantly over recent years. In 2015, the Swiss lucy.cheesewright@itppromedia.com
exported over 28,000 watches. Last year — an all-time record I remind you — this had almost Editorial Director Andrew Seymour
halved to only 15.7 million units. andrew.seymour@itppromedia.com
The fall in units is mostly down to the cheaper end of the market being decimated by the rise in DIGITAL
smartwatch sales but, even at the top end, production is pretty much flat. Database Management
Vinod Alath, vinod.alath@itp.com
In 2015, there were 1.6 million Swiss watches priced at over CHF 3,000 exported. Last year this
had inched up to just CHF 1.8 million. PRODUCTION & DISTRIBUTION
That is 300,000 more watches per year for the entire world, a pitiful number when you consider Group Production & Distribution Director
Kyle Smith, kyle.smith@itp.com
that The United States, alone, added 2,251,000 new millionaires in a year from 2019 to 2020. There
Production & Systems Manager
were almost six million new millionaires minted worldwide last year. Danny Corder, danny.corder@itppromedia.com
It is true that it takes a considerable length of time to train watchmakers to the standards required Outsourcing Manager
Aamar Shawwa, aamar.shawwa@itp.com
by the luxury industry, but investment in these skills has been too little and too late.
This will leave retailers disappointing customers, not just for the waiting list watches of Rolex, CIRCULATION
Patek Philippe and Audemars Piguet, but for a growing number of brands and for more and more SUBSCRIPTION CUSTOMER SERVICE
+44 (0)20 3176 4228
of their models.
subscriptions@itppromedia.com
This is supporting prices, so retailers are under less pressure to discount than at any time in living
memory, but it is also leading to frustration and lost sales. Web
www.watchpro.com
This is a once in a generation opportunity to push towards CHF 30 billion in Swiss watch exports,
www.itppromedia.com
but investment must go into increasing production rather than just hiking prices.
The publishers regret that they cannot accept liabil-
ity for error or omissions in this publication, however
Rob Corder caused. The opinions and views contained in this publi-
cation are not necessarily those of the publishers. Read-
ers are advised to seek specialist advice before acting
CO-FOUNDER & EDITOR, WATCHPRO on information contained in this publication, which is
provided for general use and may not be appropriate for
the readers’ particular circumstances.
The ownership of trademarks is acknowledged. No part
of this publication or any part of the contents thereof
may be reproduced, stored in a retrieval system or
transmitted in any form without the permission of the
publishers in writing. An exception is hereby granted for
extracts used for the purpose of fair review.
COVER PROMOTION COURTESY OF BA1110D
Published by and copyright 2022
BA1110D is on a mission to deliver the best value for money of any Swiss watchmaker Promedia Digital Ltd, incorporated and
to its worldwide customer base. By cutting out middlemen and turning customers into registered in the United Kingdom under
ambassadors, it has slashed distribution and marketing costs, enabling the business company number 10982417.
to offer its stunning Chapter 4 skeletonised tourbillon watch for just CHF 4,500.
watchpro.com / FEBRUARY 2022 / WATCHPRO 3
FRONT / NEWS REVIEW
NEWS REVIEW 04
THE BIG INTERVIEW — HUBLOT 14
NFTs & THE METAVERSE 19
THIS MONTH IN THE WATCH INDUSTRY... LVMH WATCH WEEK 28
APPLE WATCH IS A GATEWAY DRUG
FOR FINE MECHANICAL TIMEPIECES
A
pple’s Wearables, mechanical watch sales, the
Home, and Swiss may also have a wry smile
Accessories division to themselves at news that
includes the Apple Apple Watch sales actually fell
Watch, Apple TV, HomePod for most of last year.
mini, iPod touch, AirPods According to tech analyst
and Beats headphones. The IDC, Apple Watch sales fell by
company does not break 35% year on year for the first
down sales between the nine months of 2021, although
various products in its financial it sold almost 40 million units
reporting. worldwide in just the third
It is therefore only possible quarter of the year.
to speculate how much Apple Apple introduced its Series
Watch sales contributed to 7 Watch during the holiday
quarterly sales of $14.7 billion season, but retailers were
in the three months ending already discounting it after
December 25, 2021. Christmas.
Experienced analysts say On December 29, The Verge
Apple has been selling more reported that Apple’s latest
watches than the entire Swiss watch, which has larger display
industry combined since 2019 Hublot CEO Ricardo Guadalupe, segment, but we have found and other improvements
and, while the Swiss have just he told WATCHPRO that Apple that people putting something over predecessors, was being
had a record year, measured by Watch has been a force for on their wrist leads to them discounted to $379 rather than
the value of global exports, the good. looking for something different the recommended $429 on
number of units has halved in a “The Apple Watch was down the line. A mechanical Amazon for the 45mm GPS-
decade. initially seen as a threat to watch is a good answer,” he enabled model. The smaller
Not that the Swiss are that our industry, and has been a says. While embracing the 41mm model was down from
bothered. In an interview with challenge to the entry price positive impact of Apple on $399 to $349.
AP rumored to be hunting for its next chief exec
Audemars Piguet’s charismatic the company said it would not external candidate to lead the of the classic Royal Oak. “The
chief executive François- comment on rumors. luxury watchmaker. race is on internally as well,
Henry Bennahmias is set to Mr Bennahmias has been He is credited with several sources with first-hand
leave the business next year, working at Audemars Piguet for modernizing the brand image knowledge of the matter have
according to Astrid Wendlandt 25 years and as CEO for almost of AP through radical limited said. “There will be a dual-track
who writes the respected a decade. Miss Tweed suggests editions and innovative brand process,” one of the sources
Miss Tweed blog about stories that AP is preparing to hire a partnerships while introducing said. Bennahmias is due to leave
from inside major luxury headhunting firm, probably the entirely new CODE 11.59 the company sometime next
groups. A spokesperson for based in Paris, to help hire an and maintaining the desirability year,” Miss Tweed reports.
4 WATCHPRO / FEBRUARY 2022 / watchpro.com
Bring your Watch to Bonhams
We’ll sell it to the world
UPCOMING AUCTIONS ENQUIRIES AUDEMARS PIGUET. AN EXCEPTIONALLY
Watches and Wristwatches, 17 May Penelope Andrews RARE AND FINE PLATINUM AUTOMATIC
+44 (0) 20 7393 3869 PERPETUAL CALENDAR BRACELET
Fine Watches, 15 June
watches@bonhams.com WATCH WITH MOON PHASE AND
Watches and Wristwatches, 13 September MOTHER OF PEARL DIAL
bonhams.com/watches
Royal Oak Quantieme Perpetuel Automatique,
Request an estimate online No.041, Ref: 25686PT, Circa 1992
@bonhamswatches sell.bonhams.com Sold for £275,250 inc. premium *
* For details of the charges payable in addition to the final hammer price, please visit bonhams.com/buyersguide
FRONT / NEWS REVIEW Audemars Piguet upgrades Royal Oak Jumbo The number 50 forged into announcement caused prices a platinum option with an ivy and will run for 60 hours thanks the rotor of the new Royal Oak for the 15202ST to rise 50% green sunburst dial. to great efficiency and a larger Jumbo signifies the number from around $50,000 on the Only 1,875 of the new barrel. of years you would be on a secondary market to $75,000 in Calibre 7121 will be available Plus, the 50th anniversary waiting list for one, a comic on early 2021. for all of the new Jumbos this rotor makes it an instant Instagram noted as Audemars They are now being offered year, Audemars Piguet’s CEO collectors’ grail watch. Piguet revealed its golden jubilee for $125,000, almost five times François-Henry Bennahmias Aesthetically, the average edition of its flagship luxury steel the watch’s retail price. revealed at the launch of the Joe will be hard pressed sports watch. Replacing the 15202ST with 50th anniversary editions. to see the differences. Like That won’t dampen the frenzy a new generation of 39mm That’s fewer than 2,000 the replacement of Rolex’s AP is unleashing with a more Royal Oak Jumbo Extra-Thin (ref. watches out of a total production Submariner in 2020, the new refined, slimmer Royal Oak with 16202) watches with Audemars expected to be around 50,000 Royal Oaks are more about an a new movement and the 50th Piguet’s a new automatic Calibre units this year. upgrade to a new generation of anniversary reminder on its 18ct 7121 might take some of the heat Remarkably, this is only the movement than tampering too gold commemorative oscillating out of the market, but quantities second automatic three-hand much with a design classic. weight. are going to be extremely movement with date that Prices are £27,900 for steel on AP confirmed in March last limited this year. Audemars Piguet has used in steel ref. 16202ST.OO.1240ST.01; year that it was discontinuing There are four references in the Royal Oak Jumbo since it and £59,400 for the pink or the Royal Oak Jumbo Extra Thin the 16202 collection: steel on was launched in 1972. yellow gold pieces (ref. 16202BA. ref. 15202ST, a steel sports watch steel with a blue Petite Tapisserie The Calibre 2121 was finally OO.1240BA.01 and ref. 16202OR. with direct lineage back to the dial; a pink gold version with a retired at the end of 2021 after OO.1240OR.01). The platinum original Gérald Genta ref. 5402 smoked grey dial; a yellow gold half a century of service. Ref. PT.OO.1240PT.01 is price design from 1972. piece with a burned yellow The new Calibre 7121 is extra on request and only available Speculation ahead of that to black graduated dial; and thin, has an easier date corrector through AP Houses. 6 WATCHPRO / FEBRUARY 2022 / watchpro.com
T H E S I LV E R
T R AV E L E R S WA N
£179
THE RED & BLACK THE TURQUOISE THE SHINING
D I V E R S WA N SEAGULL SEAGULL
£159 £149 £169
W W W. 2 6 S P I R I T S. C H
For any inquiries, please contact our UK representative Philip Adams
philip@26spirits.ch 07813 144517
FRONT / NEWS REVIEW G-SHOCK MUDMASTER GETS STRONGER AND LIGHTER IN FORGED CARBON CASE Today’s fashion for watches is to wear them a little smaller, but what do you do if your stock in trade is to make the boldest and strongest timepieces? G-SHOCK, master of the indestructible, has concluded that potentially lifesaving information like time, date, altitude, temperature and barometric pressure should be displayed as clearly as possible when out in the wilderness, which is why it has kept the diameter of its latest MUDMASTER GWG-2000 at a punchy 61.2mm. Clarity does not mean compromising on wearability, however, and the latest shock- resistant watch line is slimmed down to just 16mm tall and weighs in at just 106 grams thanks to a new forged carbon construction, a light and strong material used in racing cars and lighter than and has tensile by kneading fine particles of buttons throughout. The aircraft. strength superior to stainless carbon fiber into resin, which combination of stainless steel Launched late last year, the steel. With its ability to be is then forged in a press die at button pipes and internal latest GWG-2000 MUDMASTER pressed into complex shapes, high temperature and pressure. silicone buffer material, which series of watches has a dust- and forged carbon is used in the Viewed from certain angles, fine not only absorbs shock but mud-resistant structure designed new MUDMASTER for the lug carbon particles are visible on provides a tight seal, ensures for use in land environments connecting the bezel to the the surface, forming a random even better dust- and mud- with lots of dirt, sand, mud, dust, band on both sides, structurally black and gray pattern that not resistant performance. or rubble. protecting the watch face. only looks appealing but is truly The GWG-2000 is available Forged carbon, used for the Forged carbon is used in one of a kind. in three colours: stoic case, is a special type of carbon super-high end watches from The watch also features monochrome gray, military-look fiber-reinforced resin that is the likes of Panerai. It is made newly developed Mud Resist khaki, and sand beige. Omega shifts to two seasonal collections Omega will present its 2022 September,” the report states. including a cluster of artisan Most brands — Rolex being novelties in two seasonal Watches and Wonders has independents. the exception — moved to drops, according to a financial confirmed it will take place as a Swatch Group has not launching new watches digitally statement released by Swatch physical show in Geneva from revealed any plans for how it and frequently through the year Group alsong with its 2021 full March 30 to April 5. will launch its new watches in during the pandemic. year results. It is hosting Richemont and February and September. This year looks more “Omega, as timekeeper for LVMH watch brands along with It has not held a major normal with most industrial the Olympic Winter Games in Rolex, Patek Philippe, Chopard multibrand presentation since watchmakers concentrating Beijing, will be present worldwide and Tudor. There will be a total 2019, the year after it left announcements into the first in the media in February, and in of 39 brands at the exhibition, Baselworld. quarter. 8 WATCHPRO / FEBRUARY 2022 / watchpro.com
WatchPro_Seiko_Presage_SRPE191J1_February2022.indd 1 08/06/2021 16:05
FRONT / NEWS REVIEW
THE IMPOSSIBLE DREAM
BRINGING A TOURBILLON WATCH TO MARKET FOR LESS THAN CHF 4,500 SEEMED LIKE AN IMPOSSIBLE DREAM. BUT YOU TELL THAT TO
THOMAS BAILLOD AND HIS BRAND BA111OD. THEY HAVE SOMETHING AMAZING TO SHOW YOU, AND IT IS 100% SWISS MADE TOO.
S
wiss watch brand BA111OD strength. The latest turn of the page for the how you produce the watch, but how you
celebrated generating sales brand has seen it come up with not only commercialize it. I created a new phygital
of over CHF 1 million in the an amazing product, but a Tourbillon that approach that effectively places the end
summer of 2021 which isn’t is available to customers for less that CHF customer at the center and not at the end.”
bad for a business that only launched 4,500. Astonishing. “This allowed us, with fair margins both
in 2019 and has operated for most of In conversation with WATCHPRO, Mr for our brand as for the top suppliers in
its fledgling life under the shadow of Baillod explains how: “Before being a Switzerland to offer an impressive tourbillon,
covid-19. brand, BA111OD is a concept first. Our idea 100% made in Switzerland, at a price never
Its founder, Thomas Baillod (pictured wasn’t just to sell watches, but to rethink seen before in the industry,” he adds.
opposite), says the pandemic has actually the way we (and the industry) should To prove his new sales concept, which
accelerated growth for the company do it. Brands have always focused on he teaches across several universities,
because of the unique way in which it sells optimizing the industrial performance to Baillod started the journey by launching
watches. reduce production costs, in order to offer spectacular wrist machines in the entry
From its first collection, “Chapter 1”, to timepieces at an accessible price. price segment, while not being Swiss Made.
what it has on offer today in “Chapter 4.1” “We at BA111OD believe we should take When industry professionals welcomed
BA111OD looks set to go from strength to the issue from the other side. It’s not about this approach, they reproached him at the
10 WATCHPRO / FEBRUARY 2022 / watchpro.comNEWS REVIEW / FRONT
same time that it would only work with skeletonized two-hander watch made from
affordable non Swiss Made timepieces. grade 5 titanium with black DLC with a
Therefore BA111OD released the chapter 3, power reserve of 105 hours.
a Swiss Made skeleton watch under $500. Veblen, for those outside of economic
The success with immediate in terms of academic circles, refers to a type of luxury
sales, but again people commented that product that becomes more popular as
the new concept would only work for entry price increases in contradiction to the law
price level, whereas this chapter 3 should of demand and supply.
have cost 3 times the price. Swiss watchmakers have turned the
Therefore, in considering the chapter 4, Veblen theory into a CHF 20 billion
Mr Baillod asked: “What would happened industry that BA111OD thinks is ripe for
if we plug our concept into high end disruption.
watchmaking. Would we be able to sell a It comes on a smart bracelet with an
£40k Tourbillon? The answer is yes, but embedded NFC chip, which is normally
the surprise is that it cost just a 10th of that, used for contactless payments but in the
without any compromise on the quality.” case of the Chapter 4 watch links to a
He continues: “Our Tourbillon Chapter concierge service.
4.1 is name “The Veblen Dilemma”, by the Currently available for pre-order for CHF
Austrian economist Thorstein Veblen who 4’4 40 + VAT, the offer is limited to a first
theorized what is called the “snob effect”. series of just 220 pieces, estimated to be
This demonstrates that customers react delivered in April.
positively to high prices since they think On whether this signals what the future
the product should be better. On the holds for BA111OD as a brand, Mr Baillod
contrary, something accessible is seen as concludes: “Indeed it’s pretty much
less qualitative.” happening, beyond our expectation. We
Adding: “Our Tourbillon is produced by experience an exponential growth and
the very best Swiss suppliers, the same That said, the brand is looking to work BA111OD is already seen as one of the most
that produce for the top end brands. But with retailers, which earn proper margins, innovative watch brand in the industry.
is costs only a fraction of their price. Is and has already opened one partner in Why is that great? Because BA111OD
that watch less good? Not at all. We just Switzerland and plans to grow distribution. was launched with zero investment and
allow normal people to access to high The Chapter 4.1 Veblen Dilemma is advertising, but just a brave idea to disrupt
end watchmaking at a fair price. Why do comes 43mm in diameter and is a semi- a conservative industry.”
we do that? Because we want normal
customers to reconnect with meaningful
watchmaking.”
‘Afluendors’
The sales strategy is based around
‘afluendors’, a term Mr Baillod coined
to describe how BA1110D’s customers
are given the power to influence more
customers, feed their views back to the
company and earn tokens that can be
exchanged for gifts and experiences from
selling watches.
It works like this: anybody who buys a
BA1110D watch automatically earns the
opportunity to earn tokens by selling
another BA1110D watch to somebody else.
A clever app tracks all of these
transactions and interactions, and
encourages the afluendors to keep
promoting and selling BA1110D timepieces.
The only way to buy a BA1110D watch
is directly from its website or through
its community app, which strips out the
cost of distributors or agents and keeps
marketing spending at a minimum.
watchpro.com / FEBRUARY 2022 / WATCHPRO 11FRONT / RETAIL SALES DATA
Average selling price rises begin to slow
AVERAGE SELLING PRICES RISING BY OVER 50% IN THE PAST YEAR HAS MORE THAN COMPENSATED FOR UNIT SALES OF
WATCHES FALLING BY ALMOST 10%, BUT THERE ARE EARLY SIGNS THAT SHOPPERS ARE GETTING A LITTLE MORE FRUGAL.
P
ublic reaction to the rise of omicron in confirm this figure. The average transaction
Britain dented sales in December but value of each watch sold in 2021 was almost 40%
could not derail a spectacular year for the higher than in 2020.
British watch industry. Shops remained open in The total value of sales for watches priced at
December, but people were voting with their feet, over £10,000 increased by 44.5%, almost exactly
particularly with the introduction of Plan B advice the same rise as for pieces selling for £5,000 to
to work from home. £10,000 (+44.6%).
This contributed to the value of all watch sales Notably, the sub-£500 sector managed to
dropping by 22.7% in December in comparison sneak into positive growth of 1.2% in 2021, the first This data is supplied by
to the same month a year earlier.However, GfK time it has grown since 2014. GfK, the UK’s leading ana-
reports that full year sales rose by 33.2%, with the Although store sales dropped in December, lyst of retail performance
top end market for 5-figure timepieces driving the there was no rise in online revenue to and consumer confidence.
entire sector higher. compensate. For information please
The total value of all watch sales in Great Britain Online sales dipped by 24.4% in December but visit www.gfk.com
is around £1.83 billion, although GfK would not ended the year up by almost 10%.
Total GB Watch Market (Sales Value GBP) Total GB Watch Market (Sales Volume (Units)
January 2021 - December 2021 33.2% January 2021 - December 2021 -4.8%
December 2021 -22.7% December 2021 -26.5%
-25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 -30 -25 -20 -15 -10 -5 0
Online sales (Sales Value GBP) Online sales (Sales Volume (units)
January 2021 - December 2021 9.7% January 2021 - December 2021 -3.5%
December 2021 -24.4% December 2021 -32.1%
-25 -20 -15 -10 -5 0 5 10 -35 -30 -25 -20 -15 -10 -5 0
London (ISBA region) Sales Value GBP Rest of GB (Sales Value GBP)
January 2021 - December 2021 38.2% January 2021 - December 2021 44.6%
December 2021 -21.4% December 2021 -0.6%
-25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 40 -10 0 10 20 30 40 50
Price (£> 0 500Price (£> 1000 3000 5000 10000)
January 2021 - December 2021 44.6% January 2021 - December 2021 44.5%
December 2021 -27.5% December 2021 -23.1%
-30 -20 -10 0 10 20 30 40 50 -30 -20 -10 0 10 20 30 40 50
Strap performance () Strap performance (CERAMIC)
January 2021 - December 2021 33.2% January 2021 - December 2021 31.4%
December 2021 -22.7% December 2021 -16.8%
-25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 -20 -15 -10 -5 0 5 10 15 20 25 30 35
Strap performance (LEATHER) Strap performance (METAL)
January 2021 - December 2021 33.6%
January 2021 - December 2021 31.4%
December 2021 -29.1%
December 2021 7.3%
0 5 10 15 20 25 30 35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35
Strap performance (OTHERS) LADIES (Sales Value GBP)
January 2021 - December 2021 33.6% January 2021 - December 2021 41.2%
December 2021 -15.4% December 2021 -18.4%
-20 -15 -10 -5 0 5 10 15 20 25 30 35 -20 -10 0 10 20 30 40 50
GENTS (Sales Value GBP) UNISEX (Sales Value GBP)
January 2021 - December 2021 29.0% January 2021 - December 2021 75.8%
December 2021 -24.4% December 2021 -24.0%
-25 -20 -15 -10 -5 0 5 10 15 20 25 30 -30 -20 -10 0 10 20 30 40 50 60 70 80
CHILDRENS (Sales Value GBP) AVERAGE SELLING PRICE (GBP)
January 2021 - December 2021 -10.1% January 2021 - December 2021 39.9%
December 2021 -16.1% December 2021 5.1%
-20 -15 -10 -5 0 0 5 10 15 20 25 30 35 40
watchpro.com / FEBRUARY 2022 / WATCHPRO 13THE BIG INTERVIEW / HUBLOT CEO RICARDO GUADALUPE
HUBLOT SALES DROPPED BY AROUND ONE THIRD
DURING THE FIRST YEAR OF THE PANDEMIC AS
CITY CENTRE BOUTIQUES WERE FORCED TO CLOSE
AND, EVEN AFTER REOPENING, PUNTERS FAILED
TO RETURN BECAUSE OF TRAVEL BANS AND WORK
FROM HOME ORDERS. 2021 WAS A VERY DIFFERENT
STORY AND A RECORD YEAR, ACCORDING TO HUBLOT
CEO RICARDO GUADALUPE.
HUBLOT’S POST-PANDEMIC PLAY
W
atchPro: 2021 has 30% compared to the previous year. WP: That is useful to know you
been confirmed as an Everybody had a great rebound broadly accept the estimates from
all-time record year and for us 2021 was even better than the investment bank reports.
for the Swiss watch 2019, which is fantastic news. The Morgan Stanley report for
industry with exports of over CHF 2019 had Hublot sales at CHF 640
22 billion. That is a remarkable WP: LVMH breaks down its million and for 2020 at CHF 445
result in the second year of the results so we can see the overall million. Are you saying you will do
pandemic. contribution from watches and better than the CHF 640 million
Ricardo Guadalupe: It is almost jewellery, but not by individual from 2020?
surprising when you consider where brands, which is why I rely on RG: [No figures] but I can say we
the industry was at the end of 2020. annual figures, researched by have done better than in 2019.
The rebound has been incredible, Morgan Stanley and Vontobel,
probably not for all the brands but which are typically published in WP: How do you explain the
Top : most have had a great year. March. skyrocketing demand in 2021,
Hublot CEO We saw the release of the 2021 RG: Yes, normally they are quite particularly in the United States?
Ricardo Guadalupe. watch Group results with sales up accurate. RG: America has been incredible. The
14 WATCHPRO / FEBRUARY 2022 / watchpro.comHUBLOT CEO RICARDO GUADALUPE / THE BIG INTERVIEW
pandemic is a health crisis, it is not
an economic crisis. People that were
wealthy before the pandemic are
even wealthier now because the stock
exchange is at record highs. These
people are keen to consume, but they
are unable to travel, enjoy restaurants,
etc, so luxury products like watches
have become more desirable.
I would add that, specific to
watches, there is a new generation of
people who are keen to buy their first
luxury timepiece. There was talk that
these younger people would never be
interested in mechanical watches, but
we are seeing the opposite.
For example, we are seeing people
involved in the cryptocurrency boom
who are young and have generated
fortunes in just a few years, they love
luxury watches. I met a few guys
recently in Miami, all in their 30s, and
they are big buyers of watches.
There has been a few things
coming together like the so-called
revenge purchases and a new flow of
consumers coming in that are really they might only ever buy one Our issue is producing enough of
keen on luxury watches. luxury watch in their lifetimes. the watches to meet demand. It is
Do you think this sort of demand OK for demand to exceed supply by
WP: When you are talking about might soften as we get back to a small amount, but the gap today is
this younger generation, I wonder normal? More solid demand could too big for us and other brands. It will
whether Apple did the more come from the growing number take a few years to get that right.
traditional Swiss watch industry of super-rich, who buy watches
a favour when its smartwatch regularly and are amassing WP: It is interesting that external
launched in 2015. People who significant collections. factors like the Apple Watch are
grew up telling the time from RG: I would say the trend is not having such a significant effect
their phones suddenly got into the over. It will take time to satisfy all on demand for luxury watches.
habit of wearing a wristwatch, and consumers who want to buy luxury Another factor I would suggest
now some of them have become watches. You see this when you study is the growing sophistication,
bitcoin billionaires, they are the level of stock in the distribution maturity and scale of the
excited to move into prestigious networks. secondary market. Prices for
mechanical timepieces. There are some big brands — we many more models than five
RG: I fully agree. The Apple Watch do not need to name them — that years’ ago are well above retail
was initially seen as a threat to our have almost no stock. Hublot has low prices at authorised dealers and
industry, and has been a challenge to stock as well, so we need to produce people are bragging about buying
the entry price segment, but we have enough watches to restore availability and selling these watches on their
found that people putting something to a certain level. social media feeds so the stories
on their wrist leads to them looking Demand is still so high, and will not are amplified and get everybody
for something different down the line. change from one month to another, excited.
A mechanical watch is a good answer. so we are talking about two to three RG: Secondary market has become
years to restore stock to the level we important, also because of the fact
WP: You mentioned revenge had in 2018 and 2019. As you know, it that people cannot buy the watches Top :
spending on watches by people takes time to increase production of they want through authorised Hublot’s Big Bang
who have had fewer holidays and mechanical watches — 18 months to channels. If they want a specific watch, Integral has become
nights out to spend money on. two years to ramp up capacity — and they have to go to the secondary a second bestselling
But I would suggest this applies that is the main challenge we will have market to find it, and they may buy core collection
most to upper-middle income this year as we are confident we have it even though it is selling for two or along with the
households feeling better off and the demand to grow. three times the retail price. Classic Fusion.
watchpro.com / FEBRUARY 2022 / WATCHPRO 15THE BIG INTERVIEW / HUBLOT CEO RICARDO GUADALUPE
certain point.
At this moment, demand is such
that we have not been able to
increase production to keep waiting
lists manageable. It is going to take
some time to resolve that.
WP: Scarcity is a great asset in
luxury, and that can come from
overwhelming demand, or it can
be manufactured by limiting
supply. Hublot has moved heavily
At the end of the day we are talking more closely matched right now into making limited editions, often
about a few models, not the whole so prices are more solid across boutique-only, in small quantities.
range of every brand. People talk the brands and collections, and Is that a deliberate attempt to
whole time about these few models. prestigious watches are being create scarcity or shortages that
At Hublot, we do have watches that seen, at the very least, as a much will support higher prices?
are selling for over retail like the Sang safer store of value than a few RG: Absolutely. This scarcity is good
Bleu limited edition, which is difficult years’ ago. People can buy with a for the Hublot brand when it happens
Top : to find. lot more confidence from far more for specific models. Limited editions
Hublot is appealing Of course we monitor and verify brands. watches are talking pieces. But 80%
to a new generation what is happening on the secondary RG: That is right and very good of our business comes from our core
of watch lovers market, but the key is to make sure for our industry. But again I would range of normal watches that we sell
with collaborations our watches are priced and valued say we do not want this situation to every day like the time only Classic
and sponsorships correctly. go to an extreme. When you have Fusion, a Big Bang Unico or Original.
including last year’s extremes, it has a negative effect. If The other 20% of talking piece
Big Bang launch WP: The entire Swiss watch you have watches that have waiting watches are about building the brand
with DJ Snake in industry is benefiting from lists of several years, the desirability of image of Hublot.
Paris. supply and demand being much those watches can be threatened at a Most brands like to talk about
16 WATCHPRO / FEBRUARY 2022 / watchpro.comHUBLOT CEO RICARDO GUADALUPE / THE BIG INTERVIEW
iconic models, but it is core collection have taken back control in places and they are obviously in big cities.
watches they are selling every day. like Spain and Portugal and we will We are also seeing great success with
For us, it is a strategy to have our own take back other markets in the future. ecommerce, particularly driven by
talking pieces because these help us Controlling our own distribution is social media platforms like WeChat.
to sell the core collection. another way to increase our average So, we have this great balance
revenue per watch. between digital and physical.
WP: That strategy also supports Physically, our boutiques are doing
another big trend for the Swiss WP: Hublot has built a lot of its great and we have the potential to
watch industry, which is falling own retail, particularly in markets open more in China. I see around
production volumes every like China. That has given you a 50 cities that have the potential to
year but rising average prices higher concentration than some support a boutique, so there is a lot of
compensating. Lower volumes of your rivals in key city centres space to grow?
and rising prices is a dream that have been hollowed out by
scenario, isn’t it? restrictions on travel and tourism, WP: What about mature Western
RG: Yes. We always want to increase and work from home mandates. markets like Germany, Britain and
the average price. The way we do this Does Hublot simply sit back and America?
is to increase production by less than wait for the pandemic to be over RG: Travel retail has impacted us in
the increase in the value of sales so and expect things to return to Western Europe, so we are waiting
that our average price goes up. normal in these city centres, or do for the pandemic to be over so that
There are two ways to do this. you have a strategy to rebalance travel returns. In the meantime, we
You build more value into the new and become less dependent on are working more locally. In Germany Top :
watches we make, so you see this boutiques in places like Bond we have managed to improve that. Assuming tourism
with us making more and more Street, 5th Avenue or Dubai Mall? In England, we have worked on returns this year,
watches with our own movements RG: If you take the example of expanding beyond our concentration Hublot will be
and fewer entry level pieces. That China, we entered the market quite in London and we have opened doors waiting for affluent
means the mix has a higher value late compared to other Swiss watch with our great partner Watches of sun seekers at its
overall. brands, so we decided to go in direct Switzerland in different cities. Every new boutiques in
The other way we do it is by having with our own boutiques. We opened time we open points of sale, we do Monaco, Capri and
our own distribution and retail. We four boutiques [in China] last year well. Mykonos.
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Email: info@timeoutwatches.comNFTs AND THE METAVERSE / WATCH COLUMNS
Jacob & Co. created
an NFT version of its
SF24 Tourbillon.
MASTERS OF
THE METAVERSE
WE HAVE ONLY JUST GOT TO GRIPS CRYPTO CURRENCY AND WHAT THE BLOCKCHAIN IS FOR. NOW WE ARE EXPECTED TO GET OUR HEADS AROUND NON-
FUNGIBLE TOKENS AND THE METAVERSE. ROBIN SWITHINBANK, A MAN WHO CONFESSES TO BEING MORE AT HOME WITH BROGUES THAN BITCOIN,
IS GRAPPLING WITH WHAT HE KNOWS, WHAT HE KNOWS HE DOESN’T KNOW AND WHAT HE DOESN’T KNOW HE NEEDS TO KNOW. NO MATTER. HERE HE
PRESENTS HIS FIRST ATTEMPT TO MAKE SENSE OF META AND WHAT IT MEANS FOR THE WATCH BUSINESS.
H
ow much would you fork out of its customers, the questions are suddenly yet been written, are unique, digital assets,
for a watch you own but can’t becoming real. Already, there are signs that unalterably registered on a blockchain,
wear, or even touch? A tenner? the metaverse and NFTs – lumped together that can be bought and sold like any other
A grand? More? Or what here because there’s so much overlap – are product or commodity.
about spending your hard-earned cash well on their way to watchmaking. Expensive, encrypted jpegs or gifs, if you
on a luxury watch to clothe a virtual This, despite the fact understanding of like.
version of yourself? You know – in the this new virtual Wild West is still in creep The metaverse, already a shoo-in for
metaverse? mode. the word of 2022, is a virtual world where
The answer may be zero for any of the NFTs, or ‘non-fungible tokens’, about you can play, consume and live the life you
above, but for the watch industry and many which few brief explanatory sentences have always wanted, without having to worry
watchpro.com / FEBRUARY 2022 / WATCHPRO 19WATCH COLUMNS / NFTs AND THE METAVERSE
about covid, STDs or anyone ever their stall on the timeless traditions Mr Bianchi chimed in that TAG
finding out who you really are. I of hand-crafted mechanical Heuer has “legitimacy” in the field
gather. watchmaking wouldn’t consider because of its now well established
Luxury brands are scrambling to making NFTs, or virtual watches for Connected watch strategy.
get in on the act. In the never-quite- avatars? Would they? In the same breath, we can be sure
parallel world of high-end fashion, Well, they just might. Not that Hublot will come to the virtual table,
is Dolce & Gabbana, which a few we’ve seen it yet, but many already too. It was the official timekeeper
months back shifted its nine-piece are. Back-alley NFT chatter has of January’s Crypto Finance
‘Collezione Genesi’ debut NFT become bar-stool gossip, and by Conference in St. Moritz, part of the
collection for a scarcely believable the end of this year, it appears same universe.
$5.7 million. Tommy Hilfiger is now increasingly likely it’ll be front page And as for the luxury metaverse,
working on ‘v-commerce’. news. In January, I spoke with analysts have already decided it’s
And in watches, last spring, Jacob LVMH’s watch division president coming. Morgan Stanley has said the
& Co. created an NFT version of Stéphane Bianchi and TAG Heuer virtual luxury goods market could hit
its SF24 Tourbillon, a digital piece- chief executive Frederique Arnault $50 billion by 2030.
unique that sold at auction for about their NFT plans. Both became Industry personalities are getting
$100,000, ushering in a new era of highly animated by the subject, behind it, too. The Canadian
Above : virtual watch ownership. admitting they’re working on an NFT businessman and avid watch
Shark Tank investor No mistake, a new era has begun. strategy, albeit without revealing any collector Kevin O’Leary, known for
Kevin O’Leary says And it will leave many scratching detail. Like the rest of us, they’re still his long-running role on the US
he is going to start their heads. Why would anyone want figuring it out. version of Dragon’s Den, Shark Tank,
minting watch NFTs to spend huge sums on watches Meanwhile, Mr Arnault is quite has said he’s funding a white paper
for the secondary they can’t wear? And in any case, comfortable talking about his to standardise a watch NFT protocol
market. surely luxury watch brands that set charge as a “tech company”, while and that, come July, he’s going to be
20 WATCHPRO / FEBRUARY 2022 / watchpro.comNFTs AND THE METAVERSE / WATCH COLUMNS
minting watch NFTs for the secondary market.
These encrypted dial scans, he says, will sit alongside
the physical product, and act as digital authentication JEAN-CLAUDE BIVER NFT WATCH
certificates, useful for transactions and insurance, as well
as for brands and retailers wanting to keep track of their
AUCTION FIZZLES
watches. Perhaps the market will decide whether these When Swiss watch industry leg- Biver’s favourite watch for over
have their own value. end Jean-Claude Biver created an a quarter of a century,” a descrip-
If this seems to be coming too fast, not least for an NFT of his personal Hublot Bigger tion on OpenSea proclaims.
industry that prides itself on slow luxury, consider this: for Bang All Black Tourbillon Chron- The NFT was created by
some, it will already be too late. ograph and put the digital asset WISeKey, which offers digital
Why? Let’s peg this back to the real world, where, for up for auction, it was expected to certificates of authenticity that
now, manufacturers make actual watches. The problem is bring credibility and excitement live forever on the blockchain
that Swiss watchmaking has a huge volume problem. In to the fledgling market. where they become unchange-
2021, Switzerland shifted 25% fewer watches than in 2019, The auction on the OpenSea able and unchallengeable proof
a knotty issue that’s currently varnished by a 3% uptick in platform was set up to raise mon- of a buyer’s ownership.
overall value in exports. In no time at all, and fuelled by a ey for the Bill & Melinda Gates The Hublot watch may have
pandemic, the average export price of a Swiss watch has Foundation and launched on peerless provenance, providing a
jumped by almost 40%. March 30, 2021, with a high profile direct link between the NFT own-
But how long can brands rely on that trajectory? PR and marketing campaign that er and Mr Biver’s personal collec-
What happens if volumes drop further? We’re at around included a giant image of Mr. Bi- tion. The owner of the NFT could
15 million watches exported from Switzerland today, ver on a massive digital billboard be 100% certain that the treasure
and some predict we’ll slide to 10 million by the end of in New York’s Times Square. could never be duplicated or cor-
this decade, if not sooner. Then what? Can prices rise A fortnight later, and with the rupted. It could not even be lost or
exponentially? Or does the average punter find a limit NFT still unsold, the auction was stolen like a physical watch.
that is is lower than brands imagined? extended. So why didn’t it sell?
Recognising this trend, smart brands have already You can log in today to the Most likely because the NFT
begun diversifying into the virtual world. Some are sitting OpenSea platform and the listing owner would not secure the
on products that will be injected into the metaverse, still appears to be live with no right to ever own the watch and
expecting a spectacular spike in revenues. How many offers recorded. the world is not yet at the point
of the world’s three billion gamers need to spend 10 The Hublot watch is part of Mr where we all wander around in
V-Bucks (the virtual currency on gaming platforms Biver’s personal collection, and the metaverse showing off our
such as Roblox that’s purchased with real money – ask billed as a historic timepiece be- non fungible assets.
my kids) on a luxury watch they can wear through the cause of the major role it played The role of NFTs is looking
metaverse before the ‘maker’ of said watch is creaming in paving the way for today’s like it will be more as proof of all
off high-margin profits? Add in an incentive – win a watch trends. or part of a physical asset. Like
physical watch? – and you’re starting to mitigate those “It is a watch that has made owning shares in a company,
volume worries. watchmaking history, a symbol you really do own a miniscule
But, of course, it’s easier to write the future than make of success, a source of inspira- percentage of an actual com-
it happen. Swiss watchmaking has its progressives, but tion that has made it Jean-Claude pany.
many are rooted in the past, trapped by what economists
call active inertia – the tendency to follow established
patterns of behaviour, particularly when they’ve proved
profitable before.
The same could be said of the consumer, for whom
the idea of spending money on virtual assets will surely
be secondary to the buy-it-own-it-wear-it approach for a
time yet. There’s another hurdle, too. Brands and buyers
know, and often freely admit, that no one needs a luxury
mechanical watch. How much less do we need watches
that don’t actually exist? So much less that we’ll draw the
line at buying them?
But then if there’s a virtual image to be curated and
profits to be made in owning and trading an NFT watch
for consumers, the needle could move faster than even
the most optimistic predict. Into the new Wild West we
go. On a virtual horse. And if I’m wrong, you can shoot
me with your NFT Smith & Wesson (currently trading at
$15,000, by the way).
watchpro.com / FEBRUARY 2022 / WATCHPRO 21WATCH COLUMNS / GÉRALD GENTA AUCTION NFTs AND THE METAVERSE / WATCH COLUMNS
PROTECTING GÉRALD
GENTA FOR ALL TIME
SIMON DE BURTON, WRITER, HISTORIAN AND FOUNDER MEMBER OF THE HONORARY COMMITTEE OF THE GÉRALD GENTA HERITAGE
ASSOCIATION, BELIEVES A SALE THIS YEAR OF GÉRALD GENTA ORIGINAL SKETCHES — FOREVER PROTECTED AS UNIQUE NFTS — WILL BE
FOUGHT OVER LIKE PRICELESS WORKS OF ART BY COLLECTORS.
L
ast year was a stellar one for member of the Honorary Committee of the to CHF 500,000. A portion of the proceeds
horological auctions, but no Gérald Genta Heritage Association. from all lots will be donated to the Heritage
sooner had the last gavel fallen The remarkable portfolio of offerings, Association to fund the Gérald Genta Prize
than collectors were given which Mrs Genta has personally consigned for Young Talent.
something else to think about with the to Sotheby’s, comprises no fewer than 100 The items will be dispersed through sales
announcement that a quartet of sales of Genta’s original, meticulously executed happening in Geneva (February and May),
would take place in 2022 relating to the design drawings — including those for Hong Kong (March) and New York (April) —
work of a man whom many regard as his two most celebrated creations, the and, believe me, they are going to be hard-
the greatest watch designer of the 20th Audemars Piguet Royal Oak and the Patek fought contests.
century - the late Gérald Genta. Philippe Nautilus — all of which will be sold I say that with confidence, because nine
The news came from the office of the along with its own NFT. years ago Mrs Genta generously invited me
Gérald Genta Heritage Association which There will also be four original oil into her home to see not only the items that
was founded in 2018 by Genta’s widow paintings and, in a sale timed to coincide she has now consigned for sale, but also
and long-term business partner, Monaco’s with the 50th anniversary of the Royal Oak, many more of the drawings that constitute
ambassador to the United Kingdom Her Mr Genta’s personal and unique bi-metal her late husband’s truly remarkable legacy.
Excellency Evelyne Genta. I am a founder example of the model is tipped to realise up His ‘greatest hits’ might range from the
22 WATCHPRO / FEBRUARY 2022 / watchpro.comGÉRALD GENTA AUCTION / WATCH COLUMNS
Omega Constellation to IWC’s 1970s because it fills more than 60 drawers running his eponymous company,
Ingenieur and Da Vinci models, the and spans close to two decades of he was also working on the bespoke
perpetual calendar dial for the Cartier creativity. commissions in which he specialised.
Pasha and the aforementioned Royal And it reveals not merely the “Creating the one-off pieces was
Oak and Nautilus — but relatively prodigious nature of Mr Genta’s the side of the industry in which he
few people are aware that these output, but a meticulous approach was really interested,” explained Mrs
watches represent the tiny tip of a for which the word ‘sketch’ is simply Genta.
vast iceberg. not appropriate. Created on uniform “I would estimate that he designed
On his death in 2011 at the age of sheets of eight-inch by five-inch black at least 6,000 bespoke objects for
80, Mr Genta left behind a hoard of or dark blue pastel paper, every piece clients ranging from the late Fiat
no fewer than 3,400 highly finished of work is immaculately finished and head Gianni Agnelli to many of the
yet largely unrealised designs annotated. world’s royal families — he made
created not at the behest of any Originally trained as a jeweller, more than 2,000 for one particular
particular manufacturer, but simply Geneva-born Gérald Genta turned to head of state alone.
because his fertile imagination and freelance design as soon as he had “Gérald maintained a high
passion for drawing meant a day qualified, producing innumerable output throughout his life and, in
rarely passed without another idea sketches at 15 francs a time which his later years, would spend the
being put down on paper. he sold to independent makers. mornings designing watches and the
And, unlike the disorganised piles He subsequently diversified into afternoons painting. As a result, we
of canvases and drawing books that advertising and fashion, establishing have these many unrealised designs
are often found in the studios of a reputation that resulted in his first which are all completed to the exact In this spread :
departed artists, Mr Genta’s sketches, commissions to create one-off watch size and ready to be realised. He Gérald Genta
all made to precisely the intended designs and the beginnings of a knew exactly how a watch was made Sketches of four
life scale, are perfectly preserved, success story which enabled him to and, therefore, never produced a classics: Audemars
carefully filed and ready to be set-up the Gérald Genta watch brand. design that was not viable.” Piguet’s Royal Oak,
brought to life. He eventually sold that business in Among the original drawings Patek Philippe’s
I was left agog when Mrs Genta 1999 to a Singapore buyer which, in being made available for sale (in Nautilus, Cartier’s
allowed me to be the first journalist turn, sold it to Bulgari. addition to those for the Nautilus and Pasha and his own
to see the archive in its entirety, But all the time that he was Royal Oak) are others for the Gefica Micky Mouse watch.
watchpro.com / FEBRUARY 2022 / WATCHPRO 23WATCH COLUMNS / GÉRALD GENTA AUCTION
Safari, the Disney collection and “Each lot of the sale will consist he broke down by always being
the staggeringly complex Grande of the physical design but also of ahead of his time.
Sonnerie — all produced under the its NFT equivalent. This element of “Therefore, it seemed only natural
Gérald Genta dial name — as well the sale is very exciting for us, as we to continue his legacy of innovating
as for the Cartier Pasha and several believe these types of technology the watchmaking sector by reviving
done as private commissions. could even be a step into a new these sketches with the help of
The latter include a bejewelled direction for the watchmaking cutting-edge and artistic technology.
belt and pendant made as a gift for a industry. Gérald Genta is celebrated Had he been here today, Gérald
European head of state, a spectacular for his work, but also for the barriers would have been fascinated by NFTs
enamel box containing a perpetual and I can clearly see him going down
calendar and a minute repeater wrist such an innovative and exciting
watch featuring a dial decorated with DATES FOR THE path,” Mrs Genta suggests.
a Gaugin-inspired painting. GÉRALD GENTA ‘ICON As well as representing Genta’s art,
In our special WATCHPRO OF TIME’ SALES the NFTs are also being used — in
interview, Mrs Genta also explained what is believed to be a first — to
the thinking behind the sales. Geneva, February 10 - 24 authenticate each of the physical
“The project with Sotheby’s both (includes previously unseen designs on offer.
continues Gérald’s mission and very first design for the Royal “Using the everlasting technology
marks the 10th Anniversary of his Oak). of Blockchain means the provenance
passing,” she says. Hong Kong, March 10 - 24 and authenticity of these designs can
“We want each sale to represent (original design for the Nau- never be questioned,” concludes Mrs
a different aspect of my husband’s tilus and three for the Grand Genta.
impressive contribution to watch Sonnerie) “It will be engraved in history that
making by offering show stopping New York, April 13 - 27 Gérald Genta is the genius behind
Above : designs such as the Royal Oak, the (original designs for the Dis- these pieces and, through this
Evelyne Genta with Nautilus the Pasha and many other ney collection) everlasting art form, I hope that his
the original sketches recognisable names — but one of Geneva, May (Genta’s per-
genius and vision will continue to
the most exceptional aspects of this sonal Royal Oak and four oil influence the industry for many more
Gérald Genta’s per- collection will be that each design is paintings) years to come.”
sonal Royal Oak will to be paired with a unique, artistic To that, I think we can safely say
be auction in May. NFT. it will.
24 WATCHPRO / FEBRUARY 2022 / watchpro.comSPECIAL EDITION WATCH PARTNERSHIPS / BUSINESS BRIEFING
WHAT’S SO SPECIAL ABOUT
SPECIAL EDITION WATCHES?
SCARCITY IS VITAL TO THE HIGH END WATCH SECTOR AND IS THE FUNDAMENTAL REASON PRICES FOR UNICORN TIMEPIECES FROM THE LIKES OF ROLEX,
RICHARD MILLE, AUDEMARS PIGUET AND PATEK PHILIPPE SELL FOR WELL OVER RETAIL ON THE SECONDARY MARKET. THAT SCARCITY COMES FROM
DEMAND DRAMATICALLY EXCEEDING SUPPLY, BUT SCARCITY CAN ALSO BE ENGINEERED, WHICH IS THE MOTIVATION BEHIND THE INCREASING NUMBER
OF LIMITED EDITIONS HITTING THE MARKET. WHILE MOST OF THESE ARTIFICIALLY RARE WATCHES ARE MADE TO PULL PUNTERS INTO BOUTIQUES RUN
BY THE WATCHMAKERS, THERE ARE ALSO SPECIAL MODELS MADE IN PARTNERSHIP WITH KEY AUTHORIZED DEALERS AND COLLECTORS’ CLUBS. ROBERTA
NAAS EXPLORES HOW SUCCESSFUL THESE PARTNERSHIP PIECES ARE, AND WHETHER CUSTOMERS SHOULD SHELL OUT EXTRA TO BUY THEM.
I
ronically, there appears to be no While it seems like everywhere you chapters around the world, and Tourneau
limit on the volume of limited turn, there are exclusive editions popping Bucherer retail operation that regularly
edition watches that premium up — and often selling out within hours — creates the Bucherer Blue collection. Turns
and even not-so-premium many collectors, and even retailers, have out, for watch lovers, these pieces are real
brands are prepared to create. Often questions ranging from “why do them?” to collector items.
these timepieces are boutique-only “do they hold their value?”, “who is at risk Eneuri Acosta, Hokinkee’s chief operating
editions designed to bring customers with the undertaking?”, and “what is the officer, recalls how the online platform
directly to brand ecommerce sites or benefit to all parties involved?.” initially started creating special editions
monobrand boutiques, but there is Recently, to get more insight, we in 2013, with a two-piece Ochs and Junior
also a long history of specials made in conducted private interviews on this edition. That was followed two years later
collaboration with retail partners, and topic with Hodinkee, an editorial platform in 2015 with a collaboration with MB&F
even collectors clubs such as RedBar transformed to predominantly sales with for a Legacy Machine that incorporated
and The Fine Watch Club are getting in editorial and educational information, Hodinkee’s design input. “For us, special
on the act. RedBar watch collecting group with 85 edition watches are a passion play to show
watchpro.com / FEBRUARY 2022 / WATCHPRO 25BUSINESS BRIEFING / SPECIAL EDITION WATCH PARTNERSHIPS
about 10 pieces of a Maurice Lacroix increase awareness and interaction.
Pontos dive watch. Since then, the Conversely, at Hodinkee, the
group has teamed with Oris for company buys all of the inventory
what it terms its most successful up front from the brand, much
special edition, and also Frederique like a retailer, and sells directly to
Constant. its customers online on its site.
“We want to give our RedBar The special editions are usually
members watches that are relevant larger in numbers (often with
to them and that flag their interests several hundred or more pieces
in collecting,” says McGivney. “It is being created, especially with
more about keeping our enthusiast the affordably priced brands like
collectors happy and at a sweet spot G-Shock, Swatch and Timex).
they don’t have to think too much The prices are also very varied,
about.” ranging from several hundred to as
For RedBar, that sweet spot is much as $60,000 for the special
generally in the $2,000 price range, edition Laurent Ferrier Traveler
but some watches definitely retail watch the brand created in 2017. The
for higher. Additionally, RedBar is sweet spot, though, says Mr Acosta
all about combining a charitable is the $2,000 to $9,000 range.
component to the mix. “We have a So, in Hodinkee’s case, where the
hobby that is collecting objects that company creates multiple special-
are luxury, not really necessity, so the edition watches annually, what’s
vast majority of our membership has in it for the brands other than a
discretionary income that they can guaranteed sale of x number of
channel back into the communities,” watches? “They get a good way to
Ms McGivney says, noting that listen to watch the enthusiasts are
RedBar even has its own charitable saying about their watches,” says
foundation. Mr Acosta. “They get access to real
Interestingly enough, these two collector opinions and can create
platforms manage their special new and different watches than they
editions in different ways. RedBar might ordinarily make. Before us, the
creates smaller editions, Vacheron Constantin Corne
generally of about 100 de Vache was not available
pieces, and relies on in steel, now it is. And after
the partnering brand our collaboration with
to handle the retail Zenith, they were able
aspect. “We don’t to create an all new
want to be a retailer. El Primero with two
We want to send registers thanks to
off our point of view when it comes our buyer the insight they
to watches. We take our inspiration members gained.”
from our customers who tell us what directly to Similarly
they like so that we can help bring it the brand,” Bucherer
to reality.” says Ms 1881,
In fact, for the online platforms McGivney, which
delving into special editions, almost noting that has more
all of which started in earnest at this gives than 30
about the same time frame (2015, the brand stores in
2016), the impetus for creating these the direct- America since
collaborations is more about getting to-consumer purchasing the
This page : closer to readers and followers and advantage. Tourneau Group
Hodinkee’s Eneuri bringing them more of what they “It is a positive several years ago
Acosta is hitting want. for the brands and at least 36 more
both ends of Kathleen McGivney, co-founder of because they are stores across Europe
the market with the global RedBar Group with about able to sell to a and Switzerland,
exclusive watches 10,000 members around the world, pre-selected watch- says its Bucherer Blue
from Laurent Ferrier says the group’s first collaboration specific audience,” collection of special-
and G-SHOCK. was in 2016 with a very small run of thereby helping them to edition timepieces gives
26 WATCHPRO / FEBRUARY 2022 / watchpro.comYou can also read
