The New Piaget Haute Horlogerie Manufacture
On the occasion of the Salon International de la Haute Horlogerie, Piaget has invited its clients and representatives of the international press to come and enjoy a preview of its new Manufacture at an evening event based on the theme of movement. Messrs Yves G. Piaget, President, and Philippe Léopold-Metzger, Chief Executive Officer of Piaget International SA, presented the new premises that were specially decorated for the occasion.
Like a luminous vision at the heart of a shining circle, the new Manufacture can be seen and identified from quite a distance. Daring, original and functional, its design distinguishes Piaget in the same manner as its watch and jewellery creations. A tribute to dreams and to creativity, this new building confirms the positioning and values of the brand while emphasising the fact that for Piaget, everything is always on the move.
Located in Plan-les-Ouates, Geneva, the new Manufacture is arranged in an entirely distinctive manner. The site designed by Swiss architects Pierre Studer SA, is shaped like a circle that is lit up by night and symbolises a watch dial. Visitors enter the main building via a footbridge corresponding to the hand of the watch and suspended above some delightful greenery.
The architectural concept gives pride of place to light, thanks to the large bay windows. Wood is widely used both inside and outside, representing a natural material which, in the architect’s words “does not injure the precious metal, while symbolising the jewel-case”.
The “heart” of the Manufacture is composed of a central building that will house the reception, administration, general services and restaurant. Two large production halls, respectively measuring 2,628 and 1,124 square metres, are connected to it.
So as to guarantee quality and efficiency, the production is organised according to lines. Large areas devoid of pillars and partitions provide great flexibility to allow for the evolution of structures to keep pace with new creations.
In setting up this Manufacture in Plan-les-Ouates, a suburb of Geneva, Piaget will be transferring all the production activities previously located in Les Acacias. The new Manufacture will therefore welcome the following activities: machining bracelet and cases, gem-setting, polishing, rhodium-plating, assembly, casing-up and adjustment. A dedicated prototype workshop and an after-sales service will work alongside the production lines.
The new site will also house the design of watches and high jewellery creations. The coexistence of these activities reflects Piaget’s twin vocation, as master watchmaker and master jeweller.
Constituting the historic cradle of the brand, La Côte-aux-Fées in the Swiss Jura will continue to serve as the Manufacture of movements, Piaget’ s initial field of expertise. It is there that Piaget develops and crafts its famous calibres, including 222P, 430P and 500P.
Between May 1st and August 6th and after 14 months of construction work, around 340 people will be moving to the site of the Piaget Haute Horlogerie Manufacture. Production will not be disrupted, as the transfer will take place progressively.
During the summer of 2002, Piaget International SA will also relocate its administrative headquarters within the Plan-les-Ouates site, in a building that will be part of the symbolic circle. A perspective entirely in keeping with a brand on the move.
BASEL Glitters… Geneva Sparkles
BASEL 2001
2300 exhibitors from 40 different countries participated in BASEL 2001. The World Watchmaking and Jewellery Fair was held from 22 to 29 March. 86,700 professionals from more than 100 countries visited the Fair (up 2 % on last year). In general, exhibitors reported a satisfactory level of sales. However, client sentiment ranged from “moderate” to “excellent”.
Swiss exhibitors active in the superior segment are absolutely delighted: the event enabled them to generate excellent orders that sometimes even exceeded the exceptional results reported last year.
Although it naturally varied from one company to another, the overall result was less positive for brands active in the intermediate and lower market segments. Fears created by the incipient recession in the United States – the leading market for Swiss watchmaking exports – combined with chronic Japanese gloom and Europe’s nervous disposition affected orders. These orders did not experience last year’s euphoria, but, according to the majority of Swiss exhibitors active on these markets, the level achieved was more than acceptable. Except for a few companies that registered disappointing results, all the other brands left the Basel event, which many regard as a decisive event for the year to come, in a confident mood.
On the component supply and subcontracting side, the weakening of orders in a market under pressure for the last eighteen months is almost welcomed with relief because orders had been exceeding production capacities for some types of component.
Finally, as had been expected, the trade fair management was officially informed of Jaeger-LeCoultre, IWC and Lange & Söhne’s decision not to participate in the 2002 edition, scheduled for 14 to 21 March.
SIHH – GENEVA
The eleventh edition of the International Fair of Fine Luxury Watchmaking (SIHH) closed its doors on 3 April in a serene atmosphere. Since 27 March, around 9000 professional visitors including 600 journalists had thronged Hall 7 at Palexpo in Geneva.
The SIHH ended with “an excellent overall result” indicated the International Committee of Fine Luxury Watchmaking (CIHH). The trends registered in the sector “are clearly positive for the year 2001”. Orders are on the increase and apparently well up on last year in terms of both quality and quantity. According to the first assessments of all the brands, performance reported in Europe was steady. Other markets continued to show regular growth in line with forecasts.
The next edition will be held from 18 to 25 January 2002. Long-term prospects, besides “the arrival of Jaeger-LeCoultre, IWC and Lange & Söhne at the SIHH next year, enable us to envisage various restructuring and development options for the years to come”, the organising committee concludes.
Longines Presents Its New “Ambassador of Elegance”, Oleg Menshikov
In recent months, the Russian market has generated sharply growing demand for upmarket timepieces, confirming its very promising potential for manufacturers of luxury goods. Active in Russia since Tsarist times and having managed to raise its profile there by its activities as official timekeeper of major sports events, Longines is now consolidating and expanding its market position, not least through its recent association with the noted Russian actor, Oleg Menshikov.
In the late 19th century and in the early years of the next, the complex luxury watches purchased by the Russian imperial family and nobility, high officials and the country’s leading artistic figures were practically all designed and made in Switzerland. Among the handful of Swiss makes that dominated the market at the time were Breguet, Omega and Tissot along with Longines—all of which today form part of Swatch Group.
The first Longines timepiece earmarked for the Russian market left the company’s Saint-Imier workshops in 1884 for St.Petersburg. This silver pocket watch signaled the start of a close and fruitful relationship between the company and the imperial family and court circles. While the bolshevist and communist regime would curtail all normal business relations with the outside world, high officials and members of the nomenklatura did nevertheless continue to acquire Swiss watches via the Soviet embassy in Berne or through the Kaufhaus des Westens in Berlin. Longines nevertheless managed to cultivate its image in the Soviet Union thanks to its international sports timekeeping activities, not least at the 1980 Moscow Olympics, sports reporting being free of the usual censorship, and thanks to the outstanding performance of Soviet athletes in various disciplines.
In 1991, the end of the perestroika and political change in general sparked the Swiss watch industry’s market re-entry. Under the guidance of its president and CEO Nicolas G. Hayek, Swatch Group wasted no time setting up a quality service network in Russia along with a selective distribution network to serve this vast country. That year, Longines had already inaugurated a sales outlet at Moscow’s new Sheremetyevo 2 airport. From 1993 on, it opened in Moscow and St. Petersburg, the country’s leading political, business and historic centers, then branched out to regional capitals including Samara, Yekaterinburg, Rostov-on-Don, Volgograd, Vladivostok, Irkutsk… In 1993, Swatch Group also opened a representative office in Moscow.
Despite the 1998 economic downturn, this country of 150 million inhabitants has gradually developed a budding middle class with the means to purchase luxury consumer goods. Today’s Russian consumer is extremely conscious of his or her appearance and grooming and appreciates luxury products, as confirmed by the steadily rising number of specialist outlets opening week after week in Moscow and elsewhere as well as by the Federation of the Swiss Watch Industry’s own statistics, according to which the Russian market experienced 56.6% growth during the first quarter of this year over the same period a year earlier and by 148.3% compared to the first quarter of 1999.
When buying a watch, Russian consumers are known to pay exceptional attention to the brand it is sold under, this in a country where demand for mechanical timepieces, including selfwinding designs, remains far stronger than in the rest of the world! What’s more, Russian watch buyers are as a rule attracted to pure metal timepieces—in gold, in platinum, in titanium, in steel…
With its selective distribution structures, including outlets run in partnership with Russian retailers and reserved exclusively for its own brands, Swatch Group, the world’s premier watch-industry firm, is the dominant force in today’s Russian market. Longines, for instance, can rightfully claim to be one of the country’s leading watch makes.
Longines runs some 70 sales retail outlets in Russia, including over 30 in Moscow and about a dozen in St. Petersburg. The two centers in fact account for two-thirds of total sales with the remainder generated by the regional stores.
With its Russian distribution network in the major urban centers now operational, outlets with after-sales servicing facilities are scheduled to open in regional centers including Vladivostok and Irkutsk, in Siberia during the current year. Longines is also sharpening its brand profile in this promising market by teaming up with the noted Russian actor Oleg Menshikov (on the left of the picture), today an “ambassador of elegance” in the image of silver screen legends Audrey Hepburn and Humphrey Bogart and alongside the many attractive contemporary personalities who contribute to the brand’s universal character.
In charge of Russian and Eastern European markets at Swatch Group headquarters , Longines president Walter von Kaenel (on the right of the picture) points out that “Oleg Menshikov’s appealing personality and handsome features perfectly complement our ongoing “Elegance is an attitude” campaign, conveying the Longines message in this particularly promising country and in fact through-out Eastern Europe. We are very happy to announce this fresh testimony to Longines’ unique way of reaching out to consumers everywhere, confirming yet again its universal popularity.”
Oleg Menshikov today proudly displays his new La Grande Classique timepiece. Its very name underlines the fact that La Grande Classique designs embody Longines’ long and distinguished styling record, albeit with distinctive contemporary flair. Their blend of past and present is particularly appropriate in a country that is reappropriating the glories of its own past. Oleg Menshikov’s Russia is thus exceptionally partial to classic elegance and well as to the standards of taste and style that make La Grande Classique as enduring and unimpeachable as the classic spirit itself.
Audemars Piguet And Its Complications Worldwide
Since its foundation in 1875, Audemars Piguet has specialised in creating and marketing watches with complications. An exhibition, which will be staged in about sixty different cities on all five continents, and a theme catalogue will be the major event of this first year of the third millennium. Chronographs, tourbillons, striking mechanisms, jumping hours, time zones, time equation and sun path, large date, power reserve, moon phases, annual and perpetual day of the month functions will all reveal a part of their mystery. But this exhibition including about 50 masterpieces all created at Le Brassus will offer above all an opportunity to see two worldwide firsts.
Under the title "As time goes by: the art of watches and complications", the 12 chapters of Audemars Piguet’s new catalogue present all the watches with complications, both contemporary and historic, made by this watchmaker based in Le Brassus. The result is determined by the time units counted by the calibres, from the fraction of a se-cond measured by the jumping seconds hand to the 1,461 days of the cycle between one leap year to the next.
Chopard Manufactory, Fleurier: Signed LUC
To become a watchmaking manufactory in its own right, Chopard Geneva took the bold step of establishing a workshop in Fleurier in 1996 for the production of a new self-winding movement. Five years later the project has proved a success.
As a tribute to its origins, the Genevan Chopard company decided a few years ago to develop its own self-winding movement, which it named LUC (after Louis-Ulysse Chopard who created the business back in 1860 in Sonvilier). It established a workshop in Fleurier (NE) with sophisticated equipment and small team of first-class engineers and technicians…
Today the Chopard Manufactory in Val-de-Travers has more than 60 employees and makes five different types of LUC movements. The latest is the small LUC 6.96 model, a world first presented in Basel this year (see photos). This movement is used in the LUC Tonneau the only watch in the world with an automatic fashioned calibre with an off-centre microrotor which fits harmoniously into a domed case.
But the Fleurier-based company does not just develop and make LUC movements. It also performs other work for its parent company, including assembly of the famous Mille Miglia watches.
According to the unwritten laws of the watch industry a company cannot use the envied title of “manufactory” unless it makes at least one of its movements itself. By producing high quality movements, Chopard is trying to secure a share of the market for very fine luxury men’s watches. Asked whether he had already recouped the investment of around 3.5 to 4 million francs in Fleurier, Mr Karl-Friedrich Scheufele, Vice-Chairman of Chopard, replies: “Yes. Not only in terms of sales but also as goodwill. We have won incredible goodwill for the brand. Apart from that, the little company in Fleurier is doing very well indeed. The first two or three years were the launch years during which we invested but now we have gained our independence.”
In the old buildings of the Fleurier Movement Blank Factory – FEF which the manufactory has acquired in the meantime, the plan is for the number of staff to reach eighty watchmakers in 2002. Annual production capacity for its part should reach between 8000 and 10,000 mechanical LUC movements in the next three to four years.
“Our ambition is to fit a LUC movement in still more Chopard watches”, the Vice-Chairman of the Genevan company points out. Five thousand movements, i.e. less than 10% of the 70,000 movements needed by Chopard each year, are delivered today by the manufactory. “For our brand, the launch of the LUC movement was a particularly important step which earned us considerable prestige and inestimable celebrity in the watchmaking world”, Mr Scheufele concludes.
The Swatch Group In 2000: Another Record-Breaking Year
On 2 May this year, The Swatch Group, headed by Nicolas Hayek, its Chairman and Managing Director, presented its annual report 2000 to the press.
1999 was a record year for The Swatch Group, and the last financial year was exceptional with 4.263 billion francs turnover and a 651 million net profit. At the Annual General Meeting on 22 May, the Board of Directors will therefore be proposing a partial reimbursement of the nominal value of shares to the shareholders, i.e. 172 million francs equivalent to more than twice the dividend received last year.
The Swiss Federal Council has enacted legislation allowing the nominal value of shares to be reduced to one centime. The Board of Directors of The Swatch Group will therefore be proposing to the next General Meeting a ten to one split of the Group’s shares. The current value of the registered share is ten francs: after the partial reimbursement, it will be worth 4.50 francs and once the split has been completed the nominal value will be just 45 centimes. The same calculation will be applied to the bearer share; it will decrease in value from 50 francs to 2.25 francs.
The press conference held on 2 May provided an opportunity for the group to introduce its different projects. According to Mr Hayek, the luxury sector is going through an adjustment process. His group has decided to invest 2 billion francs in new technologies and in the creation of new production units. Another strategic aspect is the development of the “retail” division. This provides a direct link with the customer and an increasing number of the group’s brands, in particular those belonging to the luxury watchmaking division will be opening boutiques exclusively dedicated to their respective labels (Glashütte, Omega, Swatch, Breguet, Blancpain, Léon Hatot). Other boutiques will offer several different brands. Boutiques of this kind will be inaugurated in the course of the year in Cannes, London, Frankfort and New York. Mrs Arlette Emch stated that: “retail outlets guarantee control of the brand’s image”.
Mr Anton Bally introduced Tissot’s T-Touch (see picture), a watch equipped with many functions (altimeter, compass, weather reports, temperature, chronograph) activated by a gentle touch on the crystal glass.
Mr Michele Sofisti talked about the Skin Chrono by Swatch. Its 6.6 mm thickness makes it the flattest watch in the world.
Mr Nick Hayek junior recognised that the Internet has become an undeniable commercial force and unveiled the virtual shop opened by Swatch to meet the demand of the American market. This site can be accessed from anywhere in the world but shipments will only be made to US residents. Mr Hayek pointed out that this idea will probably never be applied to luxury brands. A client willing to pay a large amount for a watch would not want to do without visual and tactile contact with the desired object and benefit at the same time from the advice of a specialist before making his decision.
Records are made to be broken. The Swatch Group proved the point yet again with its year 2000 results!
Corum Tripled Its Sales At Basel 2001
Basel 2001 confirmed Corum’s success. “Sales were three times higher than at last year’s event”, is the delighted comment of Mr Michel Pitteloud, chief executive of Corum Suisse (photo). And it is not over yet: interest in the brand’s models remains buoyant – “people are fascinated”, he explains.
Basel 2001 also enabled Corum to complete its integrated world sales network. “We currently have six distribution companies belonging to the Corum group: in Switzerland, France, Italy, Spain England and the United States. In the Middle East, which is an extremely important area for the brand we are working with the leading importers in each of the countries concerned. In the Far East and South America we have set up a network of agents which is one of the most effective in these geographical zones.”
After being the managing director of Bulgari Time in the eighties and then director of the Harry Winston Ultimate Timepiece SA company in the nineties, Mr Pitteloud was appointed chief executive of Corum Suisse in early 2000.
“All our staff have performed exceptionally well as a team with unusual determination and enthusiasm,” he says before concluding: “Our success is the outcome of work founded on passionate interest and creative strength, a wonderful adventure which is proving a great success… but is only just beginning!"
2002 – BASEL And The SIHH: New Dates
Executives of Messe Basel and the Luxury Watchmaking International Committee (CIHH) have agreed to synchronize the dates of their events scheduled for the year 2002. The next edition of the World Watchmaking and Jewellery Fair will take place in Basel from 4 to 11 April, while the International Luxury Watchmaking Fair (SIHH) will be held from 8 to 15 April. Messe Basel and the SIHH took this decision for the benefit of their exhibitors and international visitors.
This year, the BASEL World Watchmaking and Jewellery Fair and the Geneva International Luxury Watchmaking Fair (SIHH) were once again remarkably successful in consolidating their position as world watchmaking events leaders. Exhibitors shared great satisfaction with their participation in the respective fairs. However, they also expressed anxiety over next year’s calendar. BASEL had set a date in March and the SIHH in January.
The management of the two events will do everything they can to promptly implement a global and long-lasting solution for the coordination of exhibition dates in years to come.
Maurice Lacroix In Porto Rico For The Election Of Miss Universe
Porto Rico hosted the 50th election of Miss Universe on 11 May last. On this occasion the seven member jury including top model Veronica Webb, the former Miss Universe, Dayanara Torres Muniz, her husband Marc Anthony and designer Marc Bouwer chose the Porto Rican Denise Quinones August (aged 20) as the most beautiful woman in the world.
Between laughter and tears, Lara Dutta, Miss Universe 2000 and current ambassadress of the Maurice Lacroix brand, congratulated the new beauty queen and crowned a young lady whose beauty is rivalled only by her charm. This event, presented by top models Elie McPherson and Naomi Campbell and enlivened by the voices of Ricky Martin and others was watched by three billion television viewers worldwide.
Like Miss Universe 2000, Denise Quinones August will represent Maurice Lacroix for one year at various events open to customers and the media. The radiant Porto Rican was also offered a Maurice Lacroix watch from the new “Intuitions” collection specially enhanced by diamonds for the occasion. Fitted on a rubber strap it is priced at 5000 dollars.
This year Miss Universe once again administered proof that beauty is not in itself enough to win the title. Other exceptional qualities such as intelligence and charisma also play a vital role. The same principle applies to the “Tomorrow’s Classics” models by Maurice Lacroix. They are attractive in the first instance for their timeless beauty but gradually prove themselves to be objects which combine design and performance in impeccable quality.
CPHEMeeting In London On 11 May
At the invitation of the British Horological Federation, the Standing Committee of the European Watchmaking Industry (CPHE) held its first meeting of the year in London on 11 May under the chairmanship of Mr Francois Habersaat, the FH Chairman. In addition to the Swiss delegation, representatives of the French, German, Italian and of course the British watchmaking industry were present to discuss the following matters:
Electronic Waste
The CPHE began by considering the draft European directive on electrical and electronic waste, which seeks to introduce measures to control such waste and facilitate its recycling (elimination of waste, collection of discarded appliances, ecological label). The CPHE hoped that an exemption from this directive could still be obtained for horological products. The English and French texts do not make specific mention of watches on the list of products concerned. However, adoption of the final texts must be awaited before claiming victory.
Cites Certificate
The delegations took note of the position of the European Union, which did not wish to open discussions of a possible simplification of the Cites procedure for trade in products made from the hides of protected animals. The EU took the view that Community legislation did not permit such a simplification. A proposal had been made to computerize the procedure and abolish the need for Cites import permits.
Spare Parts
The EU delegations repeated their concern over the difficulties experienced in the procurement of spare parts. Some watchmaking associations complained that these parts were unobtainable. A question had been put in the European Parliament by an Austrian member and it seemed highly likely that the EU Commission would intervene. Excessively stringent measures must of course be avoided. The Swiss delegation pointed out that the brands wished to adopt selective distribution of spare parts based on their own distribution networks to ensure the requisite quality standard and avoid the growth of the grey market and counterfeit products. They also wished to limit the number of repair centres for reasons of economies of scale.
Nickel
On the subject of nickel, the delegations agreed to remain vigilant over the implementation of EU law. Some problems had been detected, notably in France, because products had been impounded by the customs authorities. The application of the European directive might in practice differ from country to country (Great Britain too had adopted instructions on the use of nickel).
Product Guarantee
The product guarantee was another area in which the implementation of a European directive at national level must be monitored. This directive is due to take effect in the member countries by 1 January 2002. In this field too the delegations had decided to inform each other of every new development because domestic legislation might differ from one country to another.
Basel Exhibition
The different delegations also raised the problem of the World Watch and Jewellery Show in Basel and future changes. Several participants voiced their concern over the transfer of the component show from Basel to Zurich and, more generally, over the lack of medium-term visibility of the policy followed by the event management. They hoped that better coordination would be arranged in future with the exhibitors over decisions to be taken.
Counterfeit Products
Finally, the Swiss delegation reviewed the subject of counterfeiting within the EU. It highlighted four regions that were particularly affected by this phenomenon: the Benelux countries, Spain, Italy and Turkey. While cooperation with some authorities in the Benelux and Spain was proceeding smoothly and had enabled large quantities of counterfeit products to be impounded, smuggling remained very active in Europe. It it was hoped that matters would improve. In Italy, identification of the centres in which counterfeit watches were manufactured is particularly difficult. The delegations placed their hopes in the measures that the EU Commission was planning to take following the publication of its green paper in 1998: better protection of intellectual property, exchange of information, administrative cooperation, training for the authorities.