As it is International Women's Day

I thought I'd re-heat two posts.  Let's hope the industry (yes, that is you middle-aged white men) will start making a greater effort to recognize some of the very talented, very qualified, and all-too-often overlooked women in the industry.  So part one -

The Sapphire Crystal Ceiling

So over the past few months here in the US there has been much debate about what is commonly known as the glass ceiling.  That invisible, yet very real barrier that prevents women and those not noticeably white from advancing in business, politics and pretty much any other endeavor.  This is a blog with one very simple editorial rule, a post must be written in between the time I have the coffee made to the time I have to head out the door to go teach.  So needless to say, the glass ceiling is not a topic that I can even attempt to broach in this limited space.

But in the watch industry there is another, very real barrier that I have decided to call the sapphire crystal ceiling.  Think I'm full of it?

Then riddle me this - how many CEOs of the major Swiss brands are female?  And any major watch players who have skin that might be considered a shade darker than Southern European?  Women, as we all know, tend to make up the Public Relations, Communications and in VERY rare situations might be in Marketing.  In fairness, that is a stereotype.  But as we know, most stereotypes are based in some prior reality.  Aletta Stas-Bax of Frederique Constant/Alpina remains a very welcome presence as a member of the senior management team.  Sadly, she is a rare example.  With Fiona Kruger hanging out her shingle, we will hopefully see more and more women get involved at more significant levels, actually creating their own brands.  And here is a wild suggestion to the old white boys - take the time to talk to the women in your team and force yourself to imagine that maybe, just maybe they might be as good, and in some instances even better than the men you so frequently, typically, and foolishly defer to.  I realize that if her last name is Hayek you don't really have a choice, but try to imagine that a woman might just actually know just as much, if not more than the 25 year old snot-nose you just dispatched to the US to "complete his training".

And what of color?
Well, it would seem to be a paler shade of white.  Now in fairness, there are some Swiss companies that have been purchased in part or in whole by Asian investors.  And in those situations you will see non-white (Chinese) senior management.  But apart from that, I would defy you to point to any significant representation of people of color other than people in advertisements or the paid brand ambassadors.  I have visited three major watch brands HQs and, sorry, it is a "white out".  HR offices can actually do the wild and crazy thing and try to find under represented groups.  And moreover, there's a wonderful training program being offered by Tourneau that is training young, at risk youth (many of them who are not exactly white), and this would be a PERFECT recruitment source for you!  The talent is out there, you just might have to try a little harder.  You certainly have the resources ; )

So Swiss and German and Japanese brands - get your heads out of your asses, it's 2017!

The Sapphire Crystal Ceiling

So over the past few months here in the US there has been much debate about what is commonly known as the glass ceiling.  That invisible, yet very real barrier that prevents women and those not noticeably white from advancing in business, politics and pretty much any other endeavor.  This is a blog with one very simple editorial rule, a post must be written in between the time I have the coffee made to the time I have to head out the door to go teach.  So needless to say, the glass ceiling is not a topic that I can even attempt to broach in this limited space.

But in the watch industry there is another, very real barrier that I have decided to call the sapphire crystal ceiling.  Think I'm full of it?

Then riddle me this - how many CEOs of the major Swiss brands are female?  And any major watch players who have skin that might be considered a shade darker that Southern European?  Women, as we all know, tend to make up the Public Relations, Communications and in VERY rare situations might be in Marketing.  In fairness, that is a stereotype.  But as we know most stereotypes are based in some prior reality.  Aletta Stas-Bax of Frederique Constant/Alpina remains a very welcome presence as a member of the senior management team.  Sadly, she is a rare example.  With Fiona Kruger hanging out her shingle, we will hopefully see more and more women get involved at more significant levels.  And here is a wild suggestion to the old white boys - take the time to talk to the women in your team and force yourself to imagine that maybe, just maybe they might be as good, and in some instances even better than the men you so frequently, typically, and foolishly defer to.  I realize that if her last name is Hayek you don't really have a choice, but try to imagine that a woman might just actually know just as much, if not more than the 25 year old snot-nose you just dispatched to the US to "complete his training".

And what of color?
Well, it would seem to be a paler shade of white.  Now in fairness, there are some Swiss companies that have been purchased in part or in whole by Asian investors.  And in those situations you will see non-white (Chinese) senior management.  But apart from that, I would defy you to point to any significant representation of people of color other than people in advertisements or the paid brand ambassadors.  I have visited three major watch brands HQs and, sorry, it is a "white out".  HR offices can actually do the wild and crazy thing and try to find under represented groups.  And moreover, there's a wonderful training program being offered by Tourneau that is training young, at risk youth (many of them who are not exactly white), and this would be a PERFECT recruitment source for you!  The talent is out there, you just might have to try a little harder.  You certainly have the resources ; )

So Swiss and German and Japanese brands - get your heads out of your asses, it's 2016!

Hold your Breath, Make a Wish, Count to Three

So fresh off a phone call with Yasmina Pedrini of Frederique Constant / Alpina / Ateliers deMonaco I am now better informed about what today's news from Tokyo really means.  To re-cap, Citizen has agreed to purchase Frederique Constant, Alpina and Ateliers deMonaco.  One important note, the purchase does not include MMT.

And to help illustrate it, I am going to call on Willy Wonka himself:

The suspense is terrible... I hope it'll last.

For some of us, the notion that Frederique Constant might be looking for a strategic partner / buyer was something we had been chewing on for the last year or so. This was not to say that we felt that Frederique Constant's business was bad. In fact, it was just the opposite - things seemed pretty good! As we all recall from our high school economics class - the time to sell is when the price is high!  If you are going to sell, you want to do it when you are in a position of some strength.  Frederique Constant had been making moves that at least some of us viewed as strategic in what appeared to be a preparation for a possible sale/acquisition/merger.

So we waited, many theories were bandied back and forth during BaselWeek at the Ramada and other less savory venues as to who the potential buyer might be.  And in all honesty, the idea of an investor from the east was in contention.  But the idea that it would be one from Japan?  That had not really occurred to most of us, despite how clever we like to think that we are.

I can't go on forever, and I don't really want to try. So who can I trust to run the factory when I leave and take care of the Oompa Loompas for me? 

Now to be 100% clear, I am in no way, shape or form comparing the FC/Alpina/Ateliers deMonaco staff to Oompa Loompas ; )

But in our conversation, Ms. Pedrini shared some very interesting points with me that shed a great deal of light on why Peter and Aletta Stas felt that the time had come to sell, and why they have structured the type of arrangement that they have.  Frederique Constant is a company, but a company that was built by a lot of hard work and passion.  They wanted the company to not simply cease to exist after they retired, so in looking for a possible partner or buyer, they wanted to ensure that the brand would live on.  

It also was clear to them that their children were not really interested in carrying on the family business as they had other passions of their own.  And it is refreshing to know that the Stas parents felt that their children should pursue what they were passionate about - even it it wasn't the family business.  So as it seemed clear that there would not be a successor, it was time to ensure the continuity of the brands.

So shines a good deed in a weary world.

Ultimately, it should be about people.  No one individual builds a brand, a brand is built by a group of people working together towards a common goal.  And this came up in my conversation with Yasmina.  Peter and Aletta Stas wanted to be certain that in selling the company, they would not simply be leaving their team high and dry.  There is no shortage of people with money out there who want to own a watch brand, so the challenge really became finding a buyer who valued the same things that they did.  And in Citizen, they found the right fit.   So to be clear, no redundancies, no terminations - things stay as they are.  The agreement is that the Stas team will stay on for five (5) years to ensure continuity and continue the projects that are already in motion.  In addition, the people behind the scenes will be staying on as well.  Now I am fairly certain that the number I heard was five (5) but in fairness I was making an espresso just at that moment (it was early here at Tempus Fugit HQ), but I am fairly certain that was the figure.

So when you look at this news, it should send shock waves through the industry - but not for the reasons that my more "well-fed/well-rested" colleagues would posit.  In fairness they've had a grueling week of day trips and heavy meals, so it's understandable that they might be a bit groggy this morning ; )

The shock waves are that the days of the mighty, all-knowing, all-powerful Swiss group might be over.  At a time where brands are laying off staff then spending millions on America's Cup sponsorships and the inevitable wining, dining and gifting that go along with it to keep the retailers and press members purring, this is a completely different approach.  This is a brand that put its PEOPLE above its own vanity.  Moreover, they put their people above making a fast sale.  For this alone, they should be commended and frankly, they should be seen as the example for how this type of thing should be handled.

Moreover, it really shows that it is not always the shiniest bauble in the jewelry case that is really the most valuable.  Citizen is now poised to become one of the biggest, most influential groups in the world.  Yes, that's right, Citizen.  Citizen may not be sexy, but they are rational, careful and thorough.  They are perhaps the most ideal stewards for the Frederique Constant stable of brands.  

And more than anything else - Congratulations to Peter and Aletta Stas and the teams at FC, Alpina and Ateliers deMonaco!

Willy Wonka: 

But Charlie, don't forget what happened to the man who suddenly got everything he always wanted. 

Charlie Bucket: 

What happened? 

Willy Wonka: 

He lived happily ever after.

A Few Minutes with Aletta Stas-Bax

Aletta Stas-Bax, along with her husband Peter have built something truly unique in a remarkably short span of time.  A brand that has come to rival and surpass many of its longer established, and dare I say it,  "greyer" old-school SWISS colleagues.

And now, a few minutes with Aletta Stas-Bax...

Courtesy of Frederique Constant

Tempus Fugit - What was your first watch?  Was it a gift?  Is there a story behind it?

Aletta Stas-Bax - My first watch was a Timex mechanical hand-winding model which I received in 1970 from my father.  He had just came back from a business trip to the US.

TF - When you were a young girl, what did you "want to be when you grew up?"

ASB - I grew up in a traditional family where my father worked and my mother took care of my brother and me.  I knew from a young age that I wanted to have the options to do the same things as my brother.  I did not have a clear picture in mind what I wanted exactly, but I knew that I wanted to be in the business world.

TF - Where did you go to school? What did you study?

ASB - For most of my elementary and secondary school I went to Rijnlands Lyceum in Wassenaar, the Netherlands.  After secondary school I studied Law in Rijks Universiteit Leiden.

TF - What got you involved in the watch business in the first place?

ASB - A Passion for watches and knowing that I did not want to spend the rest of my life for a big multinational. Peter my husband had the same feeling so we started together our own watch company.

TF - Having read the book "Live Your Passion" it seems quite clear that the creation, survival and now continued success was truly the result of a team effort between you and Peter Stas (and of course your team). Can you think back on a moment back in the early days where you asked yourself "why did I get into this?"

ASB - I may have thought this when a supplier did not deliver a component on time that we needed for a major customer but this vanished very fast!  It has always been an exciting adventure and especially in the early days, when we did not know what would happen each day.

TF - When was the moment when you felt - "okay, we're going to make it?"

ASB - This is something which I do not think for maybe a few seconds ;-) . 

We set goals each time and when we were nearly reaching them we already have set new goals, so therefor we do not have the feeling "we're going to make it".

TF - Frédérique Constant is perhaps one of the great success stories of the watch industry in recent times.  You managed to do something that has taken some of the older, mighty brands many more years, and millions more dollars.  What is it that you knew and did that helped you succeed where so many others failed?  

ASB - It is difficult to describe this in a few words. There are many things came together.  First of all, we noticed that there was a gap in the watch market: Beautiful classical swiss watches for an accessible price point.  We have put a lot of effort in the finishing of the watch and have paid a lot of attention to the details.  We have developed the company step by step ; no crazy investment. 

We have a clear mission: "Let more people enjoy luxury".  This is how we started and this is what we still do today.  The strategy has not changed. 

TF - What has been the greatest challenge you have faced?

ASB - There are certainly a few.  One that comes up in my mind, because I was involved in this project on a daily basis, was to increase the production capacity of our own in-house movements.  In the first years our in-house movements were made in a very artisanal way.  Due to the enormous success, we had to scale it up and our production needed to be more industrialized.  This was an enormous challenge.

TF - What has been the greatest success?

ASB - For me there is not one "greatest" success.  I will mention a few - our first Heart Beat in 1994, our in-house movements, the move of our factory to Plan-les-Ouates, The Ladies Double Heart Collection and our Management Team.

TF -  What is a typical day in the life of Aleta Stas-Bax like?

ASB - There is no typical day for me as I travel quite often and my role in the company has changed over the last 2 years as we now have a strong Management Team and I do not lead the daily operations anymore. 

My 3 main tasks now are:
1) To represent the company by giving press conferences or presentations
2) Design strategy and design of the watches
3) Advise and implement the strategy for the supply chain 

Apart from my business role I also am a mother of 2 children.

TF - I know it might be difficult, but what is your favorite Frederique Constant watch?

ASB - It is indeed difficult to choose one.. If I have to I will choose the Ladies Double Heart Beat 

with black dial.

Courtesy of Frederique Constant

TF - Having worked in the watch industry for many years, I know that life "on the other side of the counter" is not nearly always exciting as watch fans think it must be. What is one "myth" about the watch industry that you would like to correct the fans about?

ASB -  I would say that it is very hard work, just as it is in any other industry.

TF - Frédérique Constant has done quite a bit of work for charitable causes - thank you by the way!  What motivates you to participate on such a high level?

ASB - We have the chance to live in a well developed country.  On top of that, we have a healthy company and we get to live our passion.  In 2007 we met Dr Novick, a cardiologist.  In addition to his job as a cardiologist, he is also working in the non-profit sector and has his own foundation.  After hearing his story, I realized that this is real passion.  As of that moment we started contributing to children's heart related charities as well as to heart related charities.

 

TF -  In speaking with Mr. Stas a few years back, he mentioned that your son was becoming quite a good writer and communicator about Frederique Constant and Alpina.  Would it be fair to say that this is a "family business" with the next generation of Stas family members joining the company in the future?

ASB - This would of course be very nice.  However it is their choice.  Our son will first study in the US and our daughter has a few more years before entering University.

TF - Not being Swiss, have the language or cultural differences provided any obstacles in growing your brands?

ASB - No I don't think so.  Peter speaks fluent German and my French is nearly fluent.  We have always been well received and supported by our Swiss suppliers. 

TF - What do you like to do in your "down time"?

ASB - When I have time I like to spend time with Peter and the kids, participate in some sports activities (alpine skiing, randonner skiing, tennis and golf) and meeting up with friends.

TF - You are one of the few women to work so prominently in what many view to be a male dominated industry.  Has this ever been a challenge?

ASB - I must say that I feel rather at ease in a male dominated industry and therefor it never bothered me.

TF -  If you weren't doing this, what would you be doing?

ASB - That is difficult to answer as I can not imagine doing something else.  Probably we would have started another business where creation of beautiful products is important.

TF - What advice to you have to someone hoping to conceive, create, and grow a brand in the watch industry?

ASB - This is impossible to write down in a few lines.  First of all be passionate about your watch idea.  The watch line needs to be distinctive from other brands, well positioned and at the right price. You need to be noticed, so participation at the Basel fair is essential.  I recommend reading our Live your Passion book where we try to explain our journey in building our brand.