The Transfer Window Opens (for the FOURTH TIME IN TWO YEARS)

At Tag Heuer...

Courtesy of Tag Heuer

In the interest of transparency, I have about as much interest in the machinations of Tag Heuer and the LVMH watch stable writ-large as I do in hemorrhoid treatment. Actually, that's not fair. If and when I do develop hemorrhoids I suspect I will have more than a passing interest in the healing properties of Preparation H. But as they say, sometimes you have to lance a boil, and as this is outlet that talks about watches (allegedly), I guess we have to give "mighty Tag Heuer" some air time.

Okay, let's get to the heart of this. I have no doubt that the new person in the hot seat is probably more experienced and capable than the winners of the Arnault Family DNA Olympics. And add to that, Ms. Goasglas has been with Tag Heuer since 2018, and held some pretty big jobs with them. And it doesn't hurt that she is French, because although HQ is in La Chaux-de- Fonds, the real marching orders are coming from an arrondissement several train stops North by Northeast.


The timing is a wee bit quirky as well, why hold off for May 1? There is a little event that some people say is even more prestigious that The HYPE NYC ; )

The real question is this - what the f&*k has been going on at Tag Heuer and LVMH's watch division? Hublot has become an afterthought, and Zenith is starting to operate from the Sunk Cost Trap theory of business -

https://www.henkitime.com/2017/04/the-sunk-cost-trap.html

So what I'm driving at is this: for all his faults - and he has more than his share, the LVMH watch brands (Hublot, Tag, and Zenith) under Jean-Claude Biver's oversight at least seemed to know what they were doing. Or in Zenith's case what they were trying to do.

Regardless of the heroes and zeroes of the (recent) past, we at Henki Time wish Ms. Goasglas bon chance and Godspeed.
Tag Heuer may just be a dog that won't hunt, but we shall see.

The Transfer Window Has Opened...

At Tag Heuer -

Although Miss Tweed had floated this news the middle of last week, I am a bit of a traditionalist and also think when you are unceremoniously dumped by the love of your life, you should be afforded some measure of dignity. So I have been waiting for an official announcement which has now been made. Former Tag Heuer Antoine Pin has, in the words of the caring, compassionate folks in the LVMH PR Department:

“decided to start a new chapter in his career”.

I have to be honest, that level of sentimentality gets me all choked up...

How do you sum up the career of someone who, let's be honest, gave A LOT to Tag Heuer and what was to become the LVMH watch division over several decades? Ideally something more eloquent than what was offered by the wordsmiths in LVMH's gas factory.

But as Watch Town has taught yours truly not so long ago - you can give and give and give, but nothing trumps family. Now in truth, unless Arnault - The Even Younger, or Arnault - The Gleam In The Milkman's Eye is kitted-up and stretching on the touch line, LVMH Watch Week is going to have the not-so-discreet waft of a damp fart with the absence of a CEO of the most important jewel in the crown.

We shall wait, and we shall see, but we wish Mr. Pin good luck and Godspeed.

The Reality of the Situation - A Christmas Miracle in Watch Town?

Shamelessly borrowed from the World-Wide Infoweb

As we move closer to the holiday season, a few undeniable truths are becoming more and more apparent. First and foremost? Sales in Watch Town suck. There's really no nice way to put it. Lots of exports going out, but as anyone who's been in the game a minute or two will tell you, exports do not equal sales. So as 100s of SKUs are piling up in various warehouses around the world, the problem of too much stock on hand is going hand in hand with supply chain issues. It's an interesting situation that started with the first domino falling - over production. Ironically, this is not a new thing. It seems that the CEOs of Watch Town still prefer their own bath water to to pretty much any other beverage.

Once it became clear that the supply was far exceeding the already weak demand, the same folks who couldn't have their teams build enough soon-to-be grey market watches then slashed or completely canceled their supply orders. Which, in turn, led the suppliers to make many of their workers redundant. This, in turn, put the squeeze on smaller brands that were living in Reality (a more modest, yet stable municipality that is Watch Town adjacent). This, in turn, meant that although they were selling, they could not fulfill the orders that they were receiving. 

And so here we are - counting down for the holidays, and the Grinch is firmly ensconced under the Christmas Tree.

But maybe, just maybe there's a Festivus Miracle waiting!

Just kidding, that's about as likely as an Arnault offspring being replaced by someone who actually has experience...

Happy Holidays!

The Transfer Window Opens - Welcome to Crazy Town

Well for those who were on the edge of their pool floats or chaise lounges, fear not! The transfer window is apparently still open and though this is more fish-wrap than news at this point, let's get caught up, shall we?

News was strategically placed with that bastion of impartial reporting Hodinkee (oops, coffee just shot out of my nose and I need to take break to wipe the screen) that "Arnault, the even younger" had a case of the fidgets and hiked up his leg to more firmly "mark" his territory around the halls of LVMH's watch division. Long story short? Former favorite of God (JC Biver) Ricardo Guadalupe (you may remember him from such jobs as "CEO of Hublot") has either decided, or been asked, to sling his hook and take it on the arches. Now the official word is that he will be assuming the position of "Honorary President" of Hublot, which essentially means he won't be required to go to board meetings and he can play out his contract. He is only 59, so I tend to doubt that this will be his last stop, but you never know.

I have no doubt this suits junior just fine as Guadalupe was the last of Biver's palace guards, and know the only thing he is running is Jack and shit, and Jack just left town.

But then the other intriguing turn - fresh off of a truly stunning few months at Tag Heuer (yes, that was sarcasm) Julian Tornare leaves La Chaux-de-Fonds in the rearview as he heads south to Geneva to lead product placement firm Hublot. 

Rumor has it they make watches as well ;)

Now the other funny bit in all of this is reading the commentary from some of my more well-heeled colleagues in Watch Town's Fourth and Fifth Estate claiming that Mr. G had spent too much time and focus on brand partnerships and famous "chums". It is clear that they slept through the Biver years at Hublot ; ) 

This is made even funnier when notable conspiracy theorist and pro football player Aaron Rogers was picked to "Reach His Star" (still the worst tagline ever) on behalf of Zenith. So look for more NFL quarterbacks to be joining the Hublot stable now that Tornare can indulge in fantasy football picks with a real budget to throw at them.

But then perhaps the goofiest turn of events came from independent brand Audemars Piguet. You might have heard of them, old family owned independent brand with one and a half product collections? It would seem that although the Royal Oak continues to be hotter than Satan's jockstrap, Hodinkee's personally anointed sage on all things horology and pop music has been tipped to be a special envoy. So needless to say, Hodinkee will now be able to rhapsodize about which version of the Royal Oak best sets off a tattoo sleeve with leather jacket sleeve zhuzhed. Give me strength...

Here is the info, straight from AP -

A unique collaboration.
We are thrilled to announce that we have appointed the iconic American singer, guitarist, and watch collector, John Mayer, as our “creative conduit”.
In this unique role, John Mayer will not only act as a channel of creativity, pushing the brand to explore new horizons and elevate our technical, aesthetic, and ergonomic developments, but he will also serve as an important translator between Audemars Piguet and watch enthusiasts worldwide. His collector’s eye and deep insight will guide us in innovating to meet the ever-evolving needs and expectations of our clients.

Okay, I have absolutely zero idea what a "creative conduit" is, but this new "job" for Mr. M truly begs credulity. I mean, unless he has some idea to save the 1/2 product family the ill-fated Code 11.59, 'cause that is one turd that seems to refuse to be flushed....

Do you mean to tell me that Audemars Piguet, with more cash than some small third-world GNPs, and with 1 of their 1.5 product families having one of the most sought after watches of all time needs a man notable for these bon mots which he dropped in an interview with noted watch collector enthusiast magazine, Playboy -

“My d–k is sort of like a white supremacist,” Mayer went on. “I’ve got a Benetton heart and a f—in David Duke cock. I’m going to start dating separately from my d–k.”

Well, I guess AP knows what their doing...

Let's hope Mr. Mayer keeps "little David Duke" in his pants, it's Le Brassus, not Las Vegas.

Family Business

The word came down from LVMH HQ that Frédéric Arnault was now in charge of all things watches within the group. And with all due respect to Hodinkee (and if the comment section is anything to go by, I am not alone in my feelings), Mr. Anault's mercurial rise within the ranks of LVMH's watch division seems unlikely to happen anywhere else in Watch Town. The tone of the coverage from the 'dink was bordering on sycophantic. And not for nothing, it is understood that LVMH has invested in Hodinkee.

Family Business

It is not lost on anyone in the watch business that many of the most successful brands are businesses that have been started and run by individual families. Over time, several family owned brands made the decision to bring in outside talent to manage their brands. The recent departure of Mr. B at Audemars Piguet is a good example of this. AP could have engaged in the DNA Olympics, but opted for competent management that didn't happen to fall off the same family tree. 

It can also be said that there are family owned (and controlled) brands that have (by and large) remained in the family and gone from strength to strength - the name Stern still rings out loud and clear in Watch Town. But it is also important to understand that Thierry Stern grew up in the business, and spent years (not months) learning it. 

The Boss's Kid

I am no stranger to enjoying the largesse of perceived (and possibly real) nepotism. My father was a country club manager and as a teenager a job was arranged for me in the locker room of the Elyria Country Club where I spent my weekends and summers polishing members shoes and cleaning their golf clubs. I wasn't paid any more or less than my colleagues, but my hours were wildly elastic and absolutely to the benefit of my ability to go play in soccer games that my faither was coaching. I was not quite made the CEO of a watch brand, but I suspect the impact of nepotism (both perceived and real) has on the people you work with is a pretty universal and cross cultural one. You will always be judged with more than a soupçon of doubt.

Now it is safe to say that Mr. Arnault did not grow up in the watch business. And that is not necessarily a disqualifying factor. Several leaders in Watch Town came through different channels. But invariably, these folks had other experience in other industries. Mr. Arnault's CV prior to joining Tag Heuer was a little thin. His age at that time was in question by many. For me, in hindsight, I would not point a finger at age, but rather a lack of experience. We fast forward now some several years later, and Mr. Arnault certainly has some experience under his belt (both business and life). But to say that he single handedly made Tag Heuer a success is myopic (sorry Hodinkee). A lot of time and effort from a LOT of people before Mr. Arnault arrived paved the way for the path that Tag was and continues to be on. But as I have learned over more than 20 years in Watch Town, it is more often than not the family heir that receives the laurels as the last person standing.

Reality Check 

Regardless of what watch fans, the business world, or we members of the Fourth and Fifth Estate think and claim to be expert on, there is one simple, plain reality - LVMH is an extremely large, and by all accounts extremely successful juggernaut in the luxury business world. And with all due respect to all sides, it is a business that is essentially owned by the Arnault family. And to put it even more bluntly - Hublot, Tag Heuer, and Zenith were not exactly robust brands on their own. They needed (and still need) the group to support them, there is really no denying it. 

And One Last Bowl of Truth Soup

It is easy to be earnest and nostalgic about brands. It is even easier to shout that "I could do it better!" Watch fans are not entirely unlike fans of professional sports teams - we are a somewhat obsessive, overly opinionated lot that are convinced that if we were given the keys to the castle and a seat behind the big mahogany desk we would somehow know better and be hugely successful. And that just isn't true.

I think Mr. Arnault deserves the opportunity to prove himself now that he has landed in the hot seat. But to the historical revisionists out there, let's not forget that Tag's success is currently more down to the efforts put in prior. It doesn't mean Tag won't continue to prosper, but let's be real about assigning credit when we're handing out the roses ; )

What I've Learned - The Morning After Edition

Over the past few days, news has slowly trickled out about the most recent round of layoffs at Hodinkee, that by joyful coincidence have come just in time for the holiday season. While I suspect a few luminaries are still sunning themselves by the banks of Lake Geneva, the reality of what is really going on is tightening more than a few sphincters as all of Watch Town's great and good go through duty free picking up their giri (that's Japanese for duty, Gaijin!) gifts including toys and chocolate for the youngsters. Probably more than a few of these fine guys and gals will be updating their resumes and considering going into some other field that is not as dependent on the willing suspension of disbelief in the light of woefully unsustainable business plans. Lucky for them, liquor is still free on most international flights, which should make for a more focused cover letter upon sobering up Monday morning.

So the party, for many, is over. For many others, it's clear that the band has gone home, and the cleaning staff are starting to get a wee bit grumpy.  And this is true for the watch business and watch media business as a whole. Hodinkee just happens to be the canary in the coal mine.

So as much as I hate my prognostications being proven right (albeit years after making them) here goes. I will be calling on the help of several other notable watch industry experts, so here goes -

What I've Learned - The Morning After Edition

“The key to the game is capital reserves. If you don't have enough, you can't piss in the tall weeds with the big dogs.” 

Michael Douglas as Gordon Gecko in Wall Street.

So as I mentioned yesterday, +$40,000,000.00 doesn't seem to go nearly as far as it used to. To be fair, Hodinkee is not guilty of anything more or less dumb than what many Swiss watch brands have done (and will continue to do). They simply assumed that hiring a LOT of people, launching (in retrospect) an ill-advised watch insurance program, and doubling down on a fairly dubious move into online retail would pay off. 

And curious to relate? They have been forced to go to the well on more than one occasion to top-up the tank. And as I said, this is no different than innumerable Swiss watch companies. Money is always a problem. If you don't manage it, it will manage you. And Hodinkee is not the only erstwhile media company that has been drop-kicked through the goal posts of ill-advised retail. And if those two missteps weren't enough...

"Even Napoleon had his Watergate"

Yogi Berra

Hodinkee's Last Layoff

Now keep in mind, that was back in September. We are now just over 2 months later, and if the rumors are true, this might have resulted in further cuts in terms of headcount than in the previous round. Those who will say don't know, and those who know won't say. It's all well and good to point the bony finger of blame at a seemingly great acquisition gone wrong. But the fiscal realities staring them in the face comes down to more than mere buyer's remorse. Crown and Caliber, in hindsight, might have been an ill-advised purchase. But the deeper question is what really drove that purchase? Let's hope more than ego.

"Always remember why you bought the club (Company) in the first place."

Barry Hearn - The 10 things I learned from owning a football club.

In fairness, I suspect that owing a piece of Hodinkee was a pretty attractive proposition. It even caught the eye of The Wolf in Cashmere. And you never know, it might be attractive enough in its new, "value proposition" (sorry, too soon?) condition that if there is another "Arnault the Even Younger" out there looking for a youth-training opportunity, LVMH might pump in another round of investment and parachute another offspring fresh off a Berlitz English class to take the helm. But the truth in all of this is pretty sad when you think about the many people now out of work. And in fairness, I do feel bad for the founder, one Mr. Clymer. Now in all candor, I think we have met exactly twice, and I think it was equally unmemorable for both of us. Well, probably more unmemorable for him as I am sure that he has no memory of either instance ; )

But at the same time, I also find my sympathy challenging to balance. This is a guy who, after all, came from UBS, and was not one to hide his light under a bushel. But the real test now is how Hodinkee pivots. Hopefully in a positive direction.

"You've been drinking too much of your own bathwater."

Henki

As a middle aged man I think I can say this with some authority. Every man thinks he's good looking and has a great sense of humor. And the watch media business is, by and large, a sausage fest. If we are being honest about things, Hodinkee has not been living in reality. $40,000,000.00 seems like a lot of money, but when you live beyond your means, it can be gone pretty quickly. Jack Forster, Jon Bues, Cole Pennington - you may remember them from such roles as: "Editor - Hodinkee." 

They have come and gone. Whether these departures were the result of fiscal concerns remains to be seen (or said). There are some loyalists still in the fold, so we shall wait, and we shall see. But the bottom line is that sustainability is key whether you are running a lemonade stand, or a media/retail venture.

Now beyond anything else, the latest issues at Hodinkee are a bellwether for the watch media business as a whole. One large watch media outlet has apparently done some front-office redecorating with their (now former) US Editor seeking pastures greener. Others are struggling to balance commerce with editorial. It is a tough needle to thread, balancing editorial with commerce. It's an even tougher needle to thread when you have myriad investors expecting a positive return on said investment.

Arnault, The Even Younger Will Lead TAG Heuer

So... where to begin?

Courtesy of TAG Heuer

When dad owns the company, it is safe to say that he can make whatever staffing decisions he wants to.  But to be very honest, this is quite a bit different than lending junior the car keys. 

But let's get back to Mr. Arnault The Even Younger.  This is how his experience, education, etc. are described in the press release -

A former student of France’s École Polytechnique (X2014), Frédéric Arnault started his professional career at Facebook before moving on to consulting firm McKinsey. At the start of 2017 he joined TAG Heuer to manage its smartwatch activities. Since being appointed Chief Strategy and Digital Officer in October 2018, he has led an ambitious transformation and digitalisation campaign within the Maison in close collaboration with Stéphane Bianchi, CEO of the Watchmaking Division and TAG Heuer.

Now fairness, it's not as if I think I would be qualified to run this thing myself. But to be completely honest?  Based on his (let's be real here) scant experience, I don't get the sense that there was much of a talent search conducted to identify the best person for this particular job.

While Mr. Arnault has been able to focus on the fun stuff - digital communications, connected watches, party planning. The really hard piece of this job is going to be about making sound, informed decisions.  

And speaking of sound, informed decisions -

Courtesy of TAG Heuer

This is the same boy genius who decided that in the second week of March as the warnings about COVID-19 were getting louder and louder and people were advised to social distance and stay home whenever possible?  He decided it was a good idea to have a party instead -

Courtesy of Tag Heuer

And it remains to be seen how many party goers  might have gone home with something more than just the "swag bag".

I don't get the impression that this was perhaps the most well-thought out decision.

He is young, 25 years old by some accounts, so hopefully he will learn, and hopefully make better decisions now that he is in the driver's seat. 

As always, we wish Mr. Arnault good luck and God's Speed.

Lausanne is the New Basel

Maybe...

Perhaps the worst guarded secret pinging around Watch Town today is the (I'm going to say less than surreptitious) first step made by MCH (organizers of the fair formerly known as BaselWorld) to potentially embark southwards to Lake Geneva.
https://de.watchpro.com/wagt-das-management-der-baselworld-einen-neustart-in-lausanne/

Whether or not this is the future, and the stars will align remains to be seen.  A few things that bear consideration -

Shamelessly borrowed from the world-wide infoweb

1.  When Daddy Warbucks (read Rolex, Patek and that "rags to riches" group that being born into the controlling family of does wonders for your professional prospects - LVMH) told BaselWorld to piss up a rope, it didn't leave a lot of room for potential reconciliation.  It also bears mentioning that it seems clear that the breakaway group really is not too interested or bothered in the public, or more specifically, that ever elusive unicorn - a paying customer.  Well, fair enough.

2.  Although I have never visited Geneva, it has been explained to me that both the canton and the city itself are controlled with the type of iron fist that would make Pol Pot and the Khmer Rouge blush.  Nobody farts in that burg without the proper permissions stamped and processed by 15 different offices.  Meaning if the SIHH is calling the tune, most of the other brands are not going to be invited to the dance, and suffice it to say, nobody will likely rent any sort of space to any potential interlopers for fear of what could (and likely would) happen. 

3.  There were already A LOT of brands who had abandoned the fair prior to COVID-19.  And sometimes break-ups happen for a reason.  And now it is going to be challenging to drip enough honey to bring back the jilted former lovers.

Now for me personally?  While I might be able to get in to see Rolex, Patek and Tudor, I am effectively persona non grata to the gate keepers at Richemont.  And truthfully?  I'm okay with that.  

I also think that Lausanne is maybe not the worst place to host a fair for those that were left behind following the "rapture" of Rolex, Patek and the other "popular kids".  So the question is, will this be a "make weight" effort, or will this maybe, just maybe, be a Festivus for the Rest of Us?

Shamelessly Borrowed from the world-wide infoweb

We shall wait, and we shall see.

Biver Leave's the Party - Maybe this Time for Sure...

So you've read it everywhere else, the last emperor is perhaps now finally, really, actually leaving the party.  Well, this time seems more likely than previous retirements.  

Shamelessly borrowed from the world-wide info-web

But to quote that other great commentator on the watch industry, Lieutenant Columbo - 
"Something's still bothering me..."

So I'm going straight up on the "Columbo-tip", and ask a few questions that are, perhaps, not being asked elsewhere.

I held off putting anything out there yesterday because, frankly, I felt that there was more to this than an ill executive stepping aside to focus on his health. Moreover, it was the guy's birthday. A little respect was in order. But remember, we've been down this road before, when he announced that he was stepping down, and returned with an even broader mandate a few months later.

And the fact that there were two names being "mooted" as possible replacements was not accidental. And today's press release from LVMH HQ confirms what I suspected -

After an extraordinary career spanning over 40 years in watchmaking, Jean-Claude Biver, together with LVMH, has decided to relinquish his operational responsibilities and assume the role of non-executive Chairman of the LVMH watchmaking division.

Stéphane Bianchi has been appointed CEO of the Watchmaking Division, with effect from 1st November 2018. He will directly lead TAG Heuer, with the CEOs of Hublot and Zenith reporting to him.

Frédéric Arnault has been appointed Strategy and Digital Director of TAG Heuer.

Okay, let's consider this from LVMH's perspective - You've got a strong, dynamic leader in charge of 1 of your most important brands, and "overseeing" 2 others. But what you also have is a wee bit of a cult of personality. And I want to say something very clearly - that is not a dig at Mr. Biver, it actually underscores his charisma, popularity and ability to lead. But what also happens in this situation is that you then find yourself without a real contingency plan, and more than just a small power vacuum just waiting to happen.

Hublot, while having a CEO not named Biver, constantly finds Mr. Biver front and center at a LOT of its operations. Tag Heuer? Mr. Biver has been the defacto CEO for several years, and there still does not seem to be anyone lined up and ready to take the helm, even though he has said frequently that it would be a priority to develop a replacement. And Zenith? Sure, lots of interesting new models, but if the conversation I recently heard two US retailers having about sales is anything to go on? Not exactly punching their weight. Now I also want to clearly state that these points are merely anecdotal. But when taken as a whole, they are worth considering.

Mr. Biver admittedly has been having health troubles, but as one person who knows about these things confided, Mr. Biver has had, and worked through several rather serious health issues for the past several years and has still remained at the helm. Moreover, we are talking about a guy who LOVES what he does, and has worked through similar challenges. And the last point about the health concerns, he has stated in his brief comments that he is now starting to do better health-wise. If so, why leave now?

And more pertinent, if it was really about health, why would the replacement not be starting until November? My sense is that someone at LVMH who has a last name that might begin with the letter "A" has a case of the fidgets.

It bears considering the language used in the release:
Jean-Claude Biver, together with LVMH, has decided to relinquish his operational responsibilities and assume the role of non-executive Chairman of the LVMH watchmaking division.

So at least insofar as LVMH goes, this is the end of a truly dynamic career. And if I am being honest? I think that there will be some changes coming within the brands as well, because when there is someone with that much personal involvement, who commands the type of loyalty that Mr. Biver has? Let's just say that for some, there might be some uncomfortable questions that cannot be ignored any longer.

Another way to look at it is what a person inside the industry has referred to as the "Biververse" or "Biversphere". Meaning that at the center of it all, you have Jean-Claude Biver, and orbiting around him are the satellites, such as Ricardo Guadalupe. There have been others, who have seen their career trajectories greatly altered once they have been uncoupled from the mother ship. The rare exception to this perhaps being Jean-Frederic Dufour, who landed perhaps one of the safest and most secure gigs out there when he landed on the Green Planet, Rolex. Aldo Magada is laboring on an obscure and dark planet with Anonimo and Vulcain. Stéphane Linder who resigned unexpectedly from Tag Heuer (which led to Mr Biver taking over at Tag) stopped for a glass of Tang at Gucci (less than 2 years) a brief stint as a consultant, then off to Breitling-World where he is now piloting the LEM with Georges Kern, potentially arguing about who will be the first to walk on the moon. What has not happened in recent years, which had happened in previous Biver regimes was the development of new talent. Many people felt (and rightly so) that a stint at Biver U could help develop someone to lead a brand of their own one day. This explains the 2 appointments announced by LVMH today. I do not claim to be a great friend or confidant to Mr. Biver, but I feel confident is saying that I think he would have looked for someone with actual industry experience, and probably would not have looked to promote based on family connections.

I think to sum it up, in many ways, Mr. Biver was the patron of the watch making peloton, and while you couldn't really argue with the overall results, it eventually led to a set-up that was entirely too dependent upon him to oversee, and as such it was inevitable that it would end. Sooner or later time is called on all of us, we just don't always know when it will be, or how it will come about.

Now on to the two New-Jacks. Per the LVMH announcement -

Stéphane Bianchi has been appointed CEO of the Watchmaking Division, with effect from 1st November 2018. He will directly lead TAG Heuer, with the CEOs of Hublot and Zenith reporting to him.

This breaks the Biver model, because while Mr. Bianchi might have been a titan in the cosmetics/perfume industry? This is quite a different thing and goes contrary to what Mr. Biver has said in more than one interview, and I quote particularly from an interview he had with Wired, essentially? You have to learn the ropes before you try to take command of the ship. He often reflects back to his beginnings and his stint at Audemars Piguet where he was put through an internship at half-salary for one year to learn the inner workings of the business. Something tells me that Mr. Bianchi is not taking a similar path. You could argue that at his age that would be unreasonable, but then again we do need to consider the title that he has been given. Time will tell, but from an outside perspective, I suspect that this appointment was driven more by the LVMH folks and was probably not taking into account too much feedback from the folks who actually work in this particular sector within the group.

And as for Arnault the "even younger"? Firstly, age is not necessarily a requirement for ability. Having said that? Well, it is interesting that Arnault the "slightly older" was invested with a luggage company, and now another family member is being inserted into a fairly high level position within the group in a company that he has spent some time with, but in an industry that he has very little actual experience in. So again, we will see what develops and how things go, but it doesn't hurt that he shares the same last name as the owners.

But if anything is abundantly clear given today's announcement, it is that LVMH is making a fairly serious change in how the watch brands will be managed, and I suspect that while this is a very big shift, there are more to come. And in this instance, I do not think that we will see Atlas shrug.