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.
Patek Philippe Takes Control Of Ergas
Patek Philippe is continuing on its chosen path of integration in the area of watchmaking components. After recently acquiring the watch case manufacturer Calame & Cie of La Chaux-de-Fonds, the Genevan brand has taken a further step by purchasing a substantial majority shareholding in Ergas Sarl of Tramelan. Active in high precision micromechanical components, this company, which was founded in 1945, currently employs around fifteen persons.
“This participation brings us precious expertise in the field of stampings intended for the production of small high precision steel components such as pawls or date-fingers”, the managing director of Patek Philippe, Mr Claude Peny, points out. “This acquisition enables us to provide a long-term quality guarantee.” Half the production is intended for non-watchmaking sectors (medical branch) and will remain so in future, just as Patek Philippe does not plan to cultivate exclusivity in this particular area of expertise. “We are open to outside customers,” Mr Peny says.
Ergas Sarl will be managed as an independent unit. Mr Michel Vuillemier will continue to work for the company as a managing partner.
A Brilliant Quarter For Bulgari
Quarterly results reported by Bulgari continue at their record-breaking pace: sales by the Italian jeweller grew 35% to 165 million euros between January and March against the first quarter of 2000, while its net profit for the same period rose 79% to 22.5 million (the operating result stood at 26.8 million, up 26%).
All the markets and all the products shared in this success, especially Italy (+85%) and the Middle East (+95%), accessories (+97%) and fragrances (+66%). But watches (+30%) and jewellery (+25%) are not lagging behind. Results for Europe, excluding Italy (+31%), Japan (+29%) and the Far East (+25%) are equally good. From January to March 2001, watches accounted for 45% of group sales against 46% one year ago, ahead of jewellery (32% against 35%)), fragrances (16% against 13%), accessories (5% against 4%) and royalties (2% unchanged).
Richemont Sparkles
The Richemont luxury group grew strongly in the 2000-2001 financial year, which ended on 31 March. The Zug-based group reported sales 26% higher at 3.684 billion euros (5.6 billion francs); the operating profit was up 33% at 712 million euros. The dividend will therefore be raised by 25% to 30 euros per share. The group also announced its intention of dividing the value of its shares by 100 in the fourth quarter.
Mr Johann Rupert, the Richemont boss, described these results as excellent. Throughout the financial year, the group had benefited from a “favourable economic situation.” The strength of the dollar and yen against the euro also contributed to this performance.
In the jewellery sector, sales were 31% higher at 877 million euros up 28%. The clothing division also benefited from the economic upturn with sales worth 579 million euros, an increase of 25%.
Pre-Ebel Brasilia Mini Steel & Red Gold Watch
In 2009, Ebel’s Brasilia ladies watch collection will expand to include Mini models that combine stainless steel and 5N 18-karat red gold. These elegant new Mini watches, which will debut at the Baselworld exhibition in April, feature the characteristic streamlined rectangular Brasilia form, a bezel with 34 “Top Wesselton” brilliant-cut diamonds, and the intricate five-link Brasilia bracelet with contrasting brushed and polished elements in steel and red gold. Complimenting the refined, sensual form of the Ebel Brasilia Mini Steel & Red Gold watch is a white mother of pearl dial that sparkles with ten round brilliant diamonds and Roman numerals at the 12 and 6 o’clock positions. The crystal is manufactured from sapphire, a material renowned for its exceptional resistance to scratches and abrasions. Beneath the stainless steel back with its engraved Brasilia motif lies a highly precise Swiss quartz movement that derives its power from a battery. Like other Ebel Brasilia Mini watches, these new versions in steel and red gold are water resistant to 50 meters.Shop By Ebel CollectionRelated articles in Ebel newsEbel Beluga Watch Updated For 2008Rebellion REB-5 Tourbillon Invisible Set Watch
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