What I've Learned - The Summer Vacation Edition

Have you ever had a few weeks of experiences that really make you question the sanity of the people you are dealing with?  Well, gentle reader, this past fortnight has been a trip!  So as life is a journey with several "teaching opportunities" along the way (not unlike Howard Johnson's along the interstates of 1970's North America) I thought I'd take this opportunity to offer a summer bonus - a double-scoop serving of "What I've Learned". 

1.  You only get to be the Prom Queen once

It's exciting to feel popular, to feel like everyone thinks you're the greatest. And the owners and managers of watch brands are just as susceptible to fits of ego as any teenager. It is exciting when the quarterback or the captain of the cheerleading squad asks you out. It's important to understand that one date (even to the Homecoming dance, with dinner at Sizzler and a limo), does not a relationship make. 

More simply put, the doors of success tend (by design) to swing both ways. It's great when you land front and center in a big-time watch media outlet.  And this tends to lend the impression that your champagne wishes and caviar dreams are all about to come true. The fact of the matter is, wonderful brand though you may be, the only reason you were noticed by a big-time outlet is because they found you through a smaller one. Not unlike how footballers get discovered and moved along the ranks from non-conference Sunday park players, to the Premiership. The only difference is that your brand is not a world class striker dating a Spice Girl. Believe it or not, as you are not a huge and well-established brand, and you are not (despite what you might think about yourself) a unicorn, you are likely to have a good pop out of your turn in the spotlight, but unless that big, sexy outlet keeps writing about you, you will be right back where you started from (hopefully a little richer, and a little wiser from the experience).  Or to quote that other great commentator on the watch business, Barry Hearn -

"The day you think you're the 'nuts', is the day you're disappearing down the toilet. Complacency in business is a killer. When you think you've made it, that's the beginning of the end. You have to drive yourself every day, every hour to be better."

2.  Nobody Remembers James "Buster" Douglas, but they should.

Permit me to take you back in time to 1990. I was finishing my last year at the U, getting ready to graduate, and I had finally made it onto the best football club in the city - NFZFC. I had played for a few years without much success in the city leagues. I was known, the opinion around the leagues was that I could play a bit, but I wasn't truly a "baller". That year I scored a boatload of goals, and NFZFC won the title outright. I had arrived after a long and circuitous route. But that's the funny thing about journeymen, they tend to surprise you when you least expect it, and the reason why they can do it is because the big swinging dicks fall prey to what the author of Moneyball warned against -

“The inability to envision a certain kind of person doing a certain kind of thing because you've never seen someone who looks like him do it before is not just a vice. It's a luxury. What begins as a failure of the imagination ends as a market inefficiency: when you rule out an entire class of people from doing a job simply by their appearance, you are less likely to find the best person for the job.” 
― Michael Lewis, Moneyball: The Art of Winning an Unfair Game

I received a communication from a brand owner recently that underscored this very backward thinking.  He essentially told me that his brand would only be sending their English language press releases to outlet X because outlet X had the biggest coverage and fit their perceived demographics as to who would buy their watches. He further said that he had worked with a "PR Professional" and they wanted to "cut down" on the amount of press coverage and focus on only this one outlet.  Now I realize, that I am a bit older and more conventional, but I was always under the impression that the entire goal of PR and marketing was to get your product in front of as many eyes as possible. So I am curious how the "RASPUTIN PR" group convinced the brand owner on such a dip-shit marketing concept. But from my own selfish perspective, it's one less brand that I need to worry about ; )  

But what this brand and their soft-headed pr agency are failing to grasp, is that while Mike Tyson was once the champ, and seemed unbeatable, he was knocked out in the 10th round by someone they didn't rate or respect. In this case, I think the most apt metaphor involves eggs and baskets. If you are a brand, you should want as much coverage as possible. Moreover, you shouldn't tell 99% of the media outlets to go and piss up a rope, because sooner or later, just like Mike Tyson, big sexy Media Outlet X is going to replaced by someone else. Quite possibly someone the brand snubbed before. And suddenly, it's prom night and Brand Y is sitting in the limousine with the corsage for big sexy Media Outlet A, watching as the geeky kid from the math olympics team hops out of his mother's station wagon, and picks up the Prom Queen ; )

Long story short?  It's a relationship business. Relationships take time, and they don't happen overnight. But they can be ruined pretty quickly without too much effort.

A Dick Move - The Transfer Window Opens at Richemont

Yes, gentle reader, it's going to get a bit "blue"...

Per the Urban Dictionary:

Dick move

When a person goes out of their way to do something that barely improves their life but greatly inconveniences those around them for no other reason than to be a dick

by Pinkman84 July 13, 2015

Word reached the Northshore offices of Tempus Fugit late yesterday afternoon that the shot-callers at Richemont once again had a bad case of the fidgets. And as someone far smarter, better informed and (if we're being honest about it), better liked than yours truly (G. Pons) puts it, the latest game of musical chairs is on. And it seems that this time the axe is falling on someone who did what they were asked to do, and now has gotten her ticket punched as a thank-you.

Chabi Nouri, if the reports from Ms. Tweed, Bilan, Le Temps, and other sources are to be believed, has been relieved of her position at Piaget. The reasoning given that sales at Piaget have been slumping (which is not exactly "new" news), and per Ms. Tweed -

"Several industry sources blamed Chabi, saying she had focused too much on high jewelry, the Middle East and Asia and neglected Piaget’s core watch customers in other regions." 

Shamelessly borrowed from the World-Wide Infoweb

Now let's jump in the "Wayback Machine" to those thrilling days of...just over four years ago, when Ms. Chabi was appointed CEO and her predecessor had this to say about high jewelry watches -

https://www.ft.com/content/4ebad466-f82b-11e6-bd4e-68d53499ed71

(As the Financial Times has some pretty sticky policies about quoting their articles, I urge you to read the article linked above).

To paraphrase, Philippe Léopold-Metzger essentially said that Piaget had probably neglected jewelry watches too much, and that this would be part of Ms. Nouri's mandate. Even more ironic when you consider that the young man warming up on the touchline and getting ready to take off his tracksuit and go into the match is coming from... you guessed it - a JEWELRY company. So, it seems that if the "industry insiders" are to be believed, she did what she was asked to do and is now moving to be a “strategic adviser” to Richemont CEO Jerome Lambert, which I suspect is not unlike a duck making the move to l'Orange. And pretty ironic that someone else with (what I am assuming) is pretty much a jewelry background) is being brought in to run the watch brand that was "too" jewelry focused? What the actual f___k?!?

There are, of course, other rumblings about what the real reasons for her departure are. And it does not help that other rumors are starting to swirl about the future of Richemont's other female watch brand CEO. Let's just say it does not do Richemont's and Rupert's claim that they wanted to break the "sapphire crystal" ceiling much good.

Here's the thing, and it's something that the big dogs at Richemont seem to be having a tough time getting their heads around, it takes time to turn things around. As that other great commentator on the watch business, Barry Hearn once opined -

"You can't take a baby and turn it into a teenager overnight, things take time."

And this is the part that I find particularly curious, and almost perverse - there is at least 1(if not 2) layer/s of supervisory management that separates each of the Richemont CEOs from Rupert and ultimately the board.  So if these CEOs are failing so dramatically, what does that say about the guy who is supposed to be managing them?  We shall wait and we shall see.

As True Today As It Was Nearly Five Years Ago

The Ten Things that can be Learned by Owning a Watch Brand

I originally put this out back in December of 2015. Yes gentle reader, that is nearly 5 years ago!  Things were bad then, and they are clearly worse now.  Interestingly enough, I still don't think that we've reached bottom yet.  So as brand managers, sales reps, and most likely (and fairly) CEOs get ready to check the help wanted section, I thought it might be useful to remember why we got into this crazy business in the first place.  So here, once again in one long post -

What Barry Hearn Could Teach the Watch Industry

I am a fan of Men in Blazers, in one of their most recent pod casts they shared an interview with former Leyton Orient owner Barry Hearn that I found fascinating, informative and a lot of fun. I encourage you to check it out here -
http://meninblazers.com/2015/12/23/mibpodspec-hearn/
Essentially, Mr. Hearn shares the 10 rules that he learned by owning a football club, but there was a great deal of it that I felt truly applied to the luxury industry as well.  So with full credit extended to Mr. Hearn for putting them into words, and for the Men in Blazers for sharing it, here is my modified set of rules for the watch industry, one rule at a time -

1. Always remember why you bought the company in the first place.
The watch industry is one of those businesses that can stir a great deal of loyalty not just among the fans out there, but the people working for the brand.  From the top to the bottom, there is a personal identification that comes with working for a brand.  With that level of devotion comes a fairly large bundle of emotional baggage.  But whether you own it on paper, or you are a salaried employee, in one way or another you have "bought" the company.

And for many a brand owner/brand manager and (in some painfully obvious instances) CEO, the brand is something that they always wanted to have.  When you were working behind the counter at Tourneau, you sometimes fantasized about what it might be like to be the brand manager on the other side of the counter.  Beautiful suit, flawless manicure, expense account.  It all looked really good.  And when you made the jump to brand rep, and then to brand manager it all did seem exciting at the time.  But, and I will paraphrase what Mr. Hearn said - running a brand can be a lot like having a mistress - It costs you a fortune and you only have 3 good days a year.  

Now when I say that it costs a fortune I don't just mean in terms of money, although the money side of it is very evident to you when you are the brand owner, the CEO or even the rep who is counting on incentive bonuses based on sales.  But there is a bigger "cost" -

• Time away from family 
• Your health - in this instance physical owing to constant travel, poor sleep and even poorer diet
• Your relationships - and no, that is not just with your family
• Your mental health

So one way or another, you are paying a cost - this is, by the way, just like any other business.  But what makes the watch industry so unique is the amount of passion it stimulates from those who work in, or hope to work in it.  The only similar industries I can think of are automotive and fashion.  Do you think toothpaste, air conditioners or peanut butter fuel this level of enthusiasm?  

So if we stick with the mistress analogy, this makes the watch brand a bit of a cruel mistress.  

But you got into this business for a reason.  Moreover, if you recently joined a different brand in the past months, you did so for a reason.  Whether or not it was the right reason, only time will tell.  

What I think gets lost in the morass of a downturn the likes of which we are experiencing is the fun, the enjoyment - the reason you got into this business in the first place.  The reason why you "bought the company" in the first place.

I got into the business on a full-time basis in 2007 - just before the last big downturn. And it was one hell of a ride! It is safe to say that I was so new to it at the time, that I probably didn't know enough to be worried or unhappy. Every day I was asked to take on new and different challenges and responsibilities. Long days, and a lot of effort went in. There was a real team spirit and we were all pulling together. And we emerged on the other side intact. This was perhaps one of the great benefits of being a smaller operation - you could be nimble. There were many other folks from bigger, richer brands who are now in different industries.

But looking back on it now, we never questioned why we got into the business or "bought the company" in the first 

place ; )

2. Do not leave your brain in the factory parking lot
Many "sensible" people lose their way when they get into the watch business. I get the press releases every day - "years of success and experience in industry X", "excited to join the exciting and glamorous world of Haute Horology"...

Despite what we would like to think, the watch business is in some ways no different than any other. Things do not happen overnight. It takes time for them to develop. But this oftentimes gets lost in the hype.

The watch business is a wasteland of people at every level (retailer, distributor, national brand manager, CEO, owner) who have built up business success in other areas, and managed to squander the company's, or family's money chasing the dream of being the next Tourneau, Hublot, Rolex or Omega. The unshakable belief that the next celebrity partner, the newest boutique, the latest advertising campaign will make it happen. It seldom does.

You have to be sensible - and make sure that you do not leave your brain in the factory parking lot.

3.     Make sure your heart and wallet stay in a different place

Watches do more than tell time, they stir passion. Inevitably, the folks in the PR departments and those signing on the dotted line, and even those at the very top sometimes lose track of the business side. Sometimes, their hearts and the company wallets "merge".

Let me put it even more bluntly - LVMH, Richemont, SWATCH and even the smaller guys have absolutely no problem with be tough negotiators with suppliers, staff, distribution and retail partners.

And frankly that is the way it should be - this is business after all.  

But when it comes to celebrity partnerships, ambassadors and events, they spend like drunken sailors on a 24 hour shore leave. Press junkets to Argentina to watch polo, to Iceland to hike and look at glaciers, Germany for a gala launch, to Hawaii to watch (and not report on) a surfing event... it goes on and on. Put another way, some brand managers and CEOs have clearly never met a celebrity that they wouldn't like to be "closer to".

Millions of dollars thrown at celebrities, and very little measurable return. But every brand PR manager, brand manager, CEO is so terrified of NOT doing the same thing that the big boys are doing that they continue to throw the money around.  

Now I am not saying that friends of the brands or partnerships are inherently bad. But I take more of a "Money Ball" approach to the spending of marketing money. But ultimately, there is the unshakable belief that you must be partnered with the MOST PRESTIGIOUS partner possible. Which, in turn, limits your exposure (fewer "impressions"), and costs you a BOATLOAD of cash.

When your brand is hemorrhaging money, maybe if you spend your marketing money a little more responsibly, you won't have to lay off hardworking staff for the sake of your ego.

But ultimately, brand manager, PR manager and CEO - it is up to you.

4.  Think outside the box – and I do not mean the “watch box”

The watch business is not strictly black and white. As Mr. Hearn shared about the business of football, you don't work just right handed or left handed - you need a bit of "ambidexterity". More often than not, there is an unshakable belief that the business is done by certain people in a certain way to achieve a certain outcome.

And here is where I will borrow from Moneyball -

“Managers tend to pick a strategy that is the least likely to fail, rather than to pick a strategy that is most efficient," Said Palmer. " The pain of looking bad is worse than the gain of making the best move.” 

― Michael Lewis, Moneyball: The Art of Winning an Unfair Game

Or to put it another way, brand managers and department heads are in some instances so concerned about being reprimanded (or worse), they will inevitably take the safest route to ensure continual employment. 

This is, of course, a recipe for failure in the long term. I will share the abbreviated story that a friend shared with me back in 2009 -

Meeting with the heads of several of the group's brands, they had outlined a plan to cover the needs of the entire group in terms of a pr/marketing proposal that would double their coverage and cut their expense in half.  The brand heads said that they couldn't make that decision, that only Person X could. 

My friend said - "Great! Let's set up a meeting!" 

The brand heads muttered among themselves, and looking extremely uncomfortable said "oh, we couldn't make that recommendation. Maybe you could contact Person X and propose the meeting to present it again..."

The truth was that it wasn't that they couldn't make the recommendation. It was clear that they were too afraid to make the recommendation. Moreover it was abundantly clear that Person X had instilled such a fear of failure, and fear in general that nobody in all of those companies would dare to "break wind" without running it past Person X first. 

It was an opportunity to think outside of the "watch box" and do something different, but the fear of failure was far greater than the possible gain of making a bold, but beneficial decision.

This is not intended as an attack of the brand managers, department heads, or even the CEO pulling the strings. All of these folks are just doing it the same way that they've always done it. And being employed is far better than being unemployed. 

It is an open question to the culture of the industry and how things are done. Perhaps it is time for a little more "outside the watch box" thinking?

Barry Hearn's rule was "If you're old enough, you're good enough".  I have modified it here.
5.     If you’re good enough, you’re qualified to do the job

Which brings me to a question that nobody ever really thinks to ask -

"Where do brand managers and brand leaders really come from?"

There has been an interesting phenomenon in North America and other regions where very qualified, very capable people are never given a second look because they are viewed as "not industry people", and the few people to break into the business from outside and move up the ladder then refuse to consider the possibility of others from "outside" the industry as possible candidates. i.e. they forget where they came from. They forget that at one time they were "outside" the business but someone saw something in them, took a chance and they learned the business.

Now, in fairness, I say this as someone who was inside the industry, and now resides between several sectors - the press, independent consultant, and brand manager/representative. But what never ceases to amaze me is that brands continue to hire the same sort of person who, inevitably, is replaced by another "same sort of person". This is easily understood when you look at it from a greater distance -
Fear. Fear of failure, fear of making a mistake. Fear of perhaps proving that "they" (the people inside the industry who took a chance on you) made a mistake on hiring someone from outside the industry (you). To put it into a sports metaphor - it is playing not to lose, rather than playing to win.

The thing is, everyone needs to start somewhere. And someone who is good at sales is not necessarily someone that is going to be a good manager. Or as is often the case, someone who was at best "safe" at sales.

So watch industry, consider this possibility when reviewing candidates - if they're good enough, they're qualified to do the job.

6.     When it comes to grass roots, make sure you own the grass

This is a reference to when Mr. Hearn had taken over the Leyton Orient Football Club and had to make a decision about whether he should continue to lease the stadium grounds from the council, or if he should purchase the grounds and develop them. In the end he opted to purchase the grounds for approximately $500,000 US. He then developed the surrounding area building four sets of flats at each corner of the football grounds, and used the money from that to build a new stadium and develop local services for the community such as a health center, and an IT center for the local youth among other benefits to the local area. In other words he put the money back into the club and in the process created a sustainable business for the club.

There is the old, dyed in the wool idea of what a manufacturer is and that is subject to a great deal of debate - and it is not my intention to open that particular can of worms. But what is intriguing is the different manner in which brands are going about ensuring their autonomy. I would particularly point out what one brand is doing -

NOMOS has taken steps to become even more "in house" and their NOMOS swing system (their in-house escapement) has helped in their steady progression to become even more self-sufficient. This is an intriguing approach on the part of the folks at NOMOS. What I continue to find intriguing about NOMOS is their steady approach. Slow, steady, consistent growth. Good things, sometimes, take time.

Now in fairness, the big dogs have been doing whatever it takes to ensure their ability to "control the means of production". And that is to be commended. Omega, Rolex, Hublot continue to grow and develop their manufacturing capacities. And when you are as big as they are, that is what you have to do to ensure your forward momentum.

So when it comes to grass roots, make sure you own the grass.

7.  Reality is not such a bad place to live in

This was Mr. Hearn's 6th point, but I've shaken the order up a bit. What rang true for me was the importance of the need to live within your means. All too often the temptation is to borrow money or go into debt (taking on partners and investors) to try and create an instant impact. There is a greatly mistaken belief that the public has regarding some of the "newer" brands. By all outward appearances they seem to have leap-frogged into the public's consciousness and supplanted older, more established brands overnight. A further misconception is that these brands therefore must be incredibly valuable! This is aided and abetted by the posturing of the CEO and/or that horological hero of the earlier part of this century - the watchmaker turned rock star. 

But let's talk a bit about the part you seldom see or hear about - the investors. Yes, the guys and gals who pump more cash into the venture than the GDPs of some countries. Their largesse makes it possible to make watches, buy ads, host extravagant PR junkets, purchase a Lamborghini, and in the process maybe even buy the watch maker's name! All that money flashing around creates a perception (or deception) as to how well the brand is really doing. And when the actuals don't actually match the advertised projections? That same person who's name was on the dial is quietly (and in some instances not so quietly), escorted out of the building.

This is a business that is primarily based upon perception. Many of these perceptions turn out to be misleading, aided by marketing programs designed to convince you that day is night, black is white, and that a loss is actually a gain. Unfortunately, this same sort of false perception is often bought lock, stock and "spring barrel" by the media, and sadly, the potential customer.  

When you see boutiques in New York, Miami and other major destinations, you assume that business must be THROUGH THE ROOF! When you see that watch maker-turned multi-millionaire behind the wheel of a super-charged Italian chariot, you have to assume that business is fantastic! But ask yourself, honestly, how many watches would have to be sold to go from zero to sixty in a 2 - 3 year period? It is a false reality. Sales may be good, but they are not THAT good. Investment is important, but sticking to the fundamentals is even more so. Massive investment can distract you from an actual loss. And massive investment then means that the person who has their name on the dial is no longer necessary at all - they have become surplus to requirements.
Think I'm full of it? Ask the growing number of watch company staff who were laid-off these past weeks. Glossy marketing pieces with expensive cars, press junkets to exotic locations, a watch on a Super Bowl MVP - none of these things are bringing up the sales numbers to the incredible levels that we'd be asked to believe are real.

Then look at the brands who are quietly, steadily moving forward. Meeting modest, and dare I say it - HONEST projections. They are careful about what they spend. They invest in what is important, rather than the ephemeral. Stars, parties, athletes and sports cars are exciting. But they don't pay the milk bill.  

Will the laid-off employees get an invitation to the next red-carpet event? Let's hope so.

Reality - it really is not such a bad place to live in.

8.  Never let the tail wag the dog

Watch companies need customers. That has always been irrefutably true. But as the new century dawned, a new reality emerged which morphed into a bit of reality distortion - it also seemed that watch companies needed FANS.

The unshakable belief being that fans would, inevitably, convert to customers. In the watch business these supporters of the brand are often unkindly referred to as "fan boys", but that is a topic for another day.  

So the brands both big and small have invested A LOT OF MONEY trying to figure out how to get the elusive watch "fan". And this has led to the recruitment of a LOT of millennials who know a LOT about social media, but sadly do not know a lot about the watch business, and in some instances business in general.  

Gee, that sounds pretty harsh doesn't it? Sounds like something a "grumpy old fart" would say? Possibly, but the thing that the watch industry (and a lot of industries for that matter) don't understand is that social media, in many ways works exactly the same way as any other form of media. It is just a faster, (sometimes) more efficient delivery system for your message. And it can cut both ways. Tag Heuer tasted the lows with the "Super Model" and the baby lion, then the highs with the Super Model" auctioning her personal Tag Heuer watch to benefit the research of lions. From the depths of failure to the pinnacle of success!  

The majority of brands have not fully grasped the notion that social media, when used intelligently, can in fact be one of the most powerful research tools in their marketing arsenals. But just as the people who are selling watches need to know a bit about them, the folks promoting them through social media on behalf of the watch brand need to know about the actual product that they are promoting, and they need to have an understanding that a fan does not necessarily convert to a customer. Moreover, while as a brand you ALWAYS want to attract new demographics, you do not want to appear to abandon your previous demographics. Or to put it more bluntly - you don't tend to see a lot of Porsche advertisements in Archie comics. Archie comics sell all over the world, but by and large the typical purchaser and reader of an Archie comic is not in the financial demographic to afford a Porsche. Just as the typical 20-something dance club aficionado is not as likely to be able to afford a $2,500 - $3,500 watch, where as that cranky 45 - 50 year old who falls asleep at 10:00 PM is.

We all want to be loved, and brands do need fans to be sure. But those making the pr and marketing decisions, ask yourself a serious question - 

As the big dog, are you wagging your tail, or is it wagging you?

9.  Never Forget the Good Times - there are too few to forget!

It is really remarkable, there seems to be a phenomenally short-term memory for brands, brand managers and the buying public.

I worked for a brand where, back in 2007 we were probably two or three good decisions away from being the next Panerai. We were that hot. 

But as Barry Hearn has said, the biggest killer in business - and yes, that includes the luxury business is complacency. "The day you think you're the 'nuts', is the day you're disappearing down the toilet. Complacency in business is a killer. When you think you've made it, that's the beginning of the end. You have to drive yourself every day, every hour to be better."

All too often, it is a bit too easy to hit the "cruise control" button. And that is a mistake. How many brands have great products, great initiatives, great fan followings, and then they start ignoring the fans, the customers and they don't follow-up as assertively. And suddenly sales drop, journalists stop returning your calls, emails drop into the void, retail partners stop paying their invoices... you get the idea.

Now there is a BIG difference between "laying up" to reduce the spending on ads, luxury press junkets, etc. and simply ignoring the people who helped you get where you are. When times are tough - as they are now for sure - that is when you have to INCREASE your presence. And that DOES NOT mean spending more money. It means stay active on social media, stay in touch with your contacts, keep sending press releases, keep active. 

Simple truth - life moves forward, doesn't it? Your watch brand might not grow in terms of sales, but it can certainly grow and evolve in terms of influence. 

Barry Hearn's Rule #10 - Know Your Sell-By Date

Barry Hearn's 10th and final rule that he learned in owning a football club - and its watch world application -

Know your sell-by date.

For better or worse, the watch world is led (by and large) by a bunch of latter-middle-age white guys. And if we are all honest with ourselves, in many instances, these are people who are making it difficult, if not impossible for the new generation of leaders, managers, etc. to grow into their positions.

But this is more than an age issue.  This is a troubling, overwhelmingly white, male dominated industry - and I say that as a 47 year old white male.  For those of us who get press releases the only people of color or women we generally see are either the celebrity ambassadors, or the PR representatives.

Here in the US there are (thankfully) a few women are leading brands for North America, but really there should be more.  And in terms of the color line - it is a pretty clear one.  It shouldn't be that way, but it is.

So how do we fix this?  I think brands should stop looking for the "right type" of people, and rather look for the RIGHT people.  As Barry Hearn has said - "It's about ability".  Being white and male are not, and should not be prerequisites, just as being a woman should not navigate you directly to PR or HR.  That is starting to change, but it is a slow movement.

So I will leave you again with a passage from Moneyball -

“The inability to envision a certain kind of person doing a certain kind of thing because you've never seen someone who looks like him do it before is not just a vice. It's a luxury. What begins as a failure of the imagination ends as a market inefficiency: when you rule out an entire class of people from doing a job simply by their appearance, you are less likely to find the best person for the job.” 
― Michael Lewis, Moneyball: The Art of Winning an Unfair Game

Doper Than A Doppio!

The BWD Badgerworks Coffee Edition!

Courtesy of Bamford Watch Department, The Black Badger and TAG Heuer

Where to begin?  If you're like me, you've been percolating away during lockdown. The drip, drip, drip of new watch news bottled up like the clogged porta-filter of a La Marzocco 4-head after the morning rush.  The snark and sarcasm frothing up, ready to pour out, and then...

Courtesy of The Black Badger, Bamford Watch Department and TAG Heuer

The erstwhile James Thompson who is more widely known by his nom de lume -The Black Badger decided to team up with Bamford Watch Department once again and serve up this visceral triple-shot that hit me like a two-by-four of caffeinated goodness this AM.

Courtesy of The Black Badger, Bamford Watch Department and TAG Heuer

This is the BWD X Badgerworks TAG Heuer Carrera Calibre 5 with Tropical Coffee Dial.  And while it might not be everyone's cup of coffee, I have to say that it hits all of the visceral buttons for me.  

A watch, is a watch, is a watch...

Until it isn't.  This isn't... just a watch.  And maybe for me it's a bit more of a personal connection.  Not unlike Mr. Thompson, I once  decamped North America and headed east.  For Wendy and me the destination was Finland, first Turku, and then Helsinki.  And one of the best memories I have is the handful of cafes along the Esplanade. The espresso machines looked as if they might have been hold overs from the Winter War, the counters were aged, the tables highly polished, the atmosphere?  If I could have moved my bed in and they would accept cats?  I never would have left.  

It goes deeper for me, at a time when I'd been cast out of my high flying job in San Francisco, I found a second chance as a Starbucks store manager at one of the few stores that did not have one of the sexy, new fully automated machines.  Yes gentle reader, I could field strip a commercial grade La Marzocco 4-head and re-assemble it blindfolded.  Coffee has been a constant in terms of comfort and security for me.  But hey, enough about Henki-Lore, let's get back to the watch -

Courtesy of The Black Badger, Bamford Watch Department and TAG Heuer

The dial is a riff on the much sought after tropical dial.  Essentially a black dial that has been aged and faded by light until it has taken on more of a brown hue. And while I know there is a certain smug group of bearded fellas who favor tweed jackets and other group-think affectations who will wax lyrical about history, provenance, craft... oh, sorry, dozed off there!  I guess my point is that there is nothing wrong with appreciating the past, but as that other great commentator on the watch business, Barry Hearn would remind us - life moves forward.

I love the adaptation of ground coffee to help create the dial.  It seems so obvious in hindsight, but probably the last thing most would think of.  

To quote another great commentator on watches, Samuel L. Jackson as Jules in Pulp Fiction -

"Mmmm! Goddamn, Jimmie! This is some serious gourmet shit! Usually, me and Vince would be happy with some freeze-dried Taster's Choice right, but he springs this serious GOURMET shit on us!"

Courtesy of The Black Badger, Bamford Watch Department and TAG Heuer

Not just any coffee was used to achieve the dial's finish.  None other than Cafe da Matteo provided the coffee for the dials. If you ever find yourselves in Göteborg post lockdown, check them out - https://damatteo.se

Courtesy of Cafe da Matteo

The watch itself is Tag Heuer's Carrera Calibre 5, but thanks to the Black Badger and Bamford Watch Department, it is so much more!

Available from Bamford Watch Department       

and limited to 20 pieces.

Here are the pertinents -

Technical information: 

Model:  Carrera Calibre 5.

Type:  Automatic Watch

Movement: Tag Heuer Calibre 5 *Sellita SW-220-1)

Power Reserve: 38 Hours.

Case Material: Stainless Steel finished with light grey Military Grade Titanium Coating (MGTC)

Case Diameter: 41mm.

Case Thickness: 13.45mm

Case Back: Stainless Steel with Sapphire Display back.

Water Resistant: 10ATM - 100m.

Repeat - The Sunk Cost Trap

This originally ran over a year ago, but following BaselWorld and the noticeably reduced attendance of brands, retailers and journalists, it's a topic that could stand to be aired out again.  Because this year both wealthy and modest brands were willing to break the habit of a lifetime and skip BaselWorld.  And what it underscored was the reality that not only is the business changing, but after several years of financial (and emotional) losses, some shot-callers had finally accepted that they had to keep their hearts and their wallets in separate locations.  Barry Hearn would be proud ; )

What Barry Hearn Could Teach the Watch Industry - 3

3.     Make sure your heart and wallet stay in a different place

http://www.tempusfugit.watch/2016/01/what-barry-hearn-could-teach-watch.html?m=0

Which brings us back to today's repeat:

The Sunk Cost Trap

I think we have all experienced this in one way or another throughout our lives.  For those of you not familiar, the Sunk Cost Trap is the tendency of normal, sane people to foolishly and (if we're being honest) irrationally follow a plan that is clearly not succeeding in its expected outcome.  

Why?

Well, because we feel that we have "SUNK" too much time, and or money into the exercise and we further feel that all of that time and money will be wasted if we changed course. 

Sound familiar?

The Sunk Cost Trap explains why we keep books that we'll never read, and clothes that we've never worn.

The Sunk Cost Trap explains why some brands continue to "sink" hundreds of thousands of dollars into failing partnerships, celebrity ambassadors and the on again, off again retention of the same PR firm that tends to get signed for a year, then replaced the next year, only to be signed again the year after that.  It's a bit like the Olympics or the World Cup, except that it's every two years instead of four.  Why?  Because they've sunk too much money into it now to walk away.

The Sunk Cost Trap explains why blogs and magazines will continue to keep a brand's ads running even though the brand has not paid for an extended period of time.  This is two-fold:
1.  Time spent and money not received
2.  Fear that walking away will ensure that the  brand will never advertise with them again - which is pretty silly when you consider that they are giving the brand free advertising already and not getting paid.  What exactly is it that they are afraid of losing?

The Sunk Cost Trap explains why someone who really only wants one nice watch will buy several discounted through the grey market assuming and hoping that the value of those watches will somehow magically increase in the not-too-long term so that they will be able to flip those watches and have a nice enough profit to then afford that one nice one.  Which never happens because - you guessed it - they are then trapped by the notion that if they sell the watches they bought on the grey market they will be losing money.  Which, of course, they will.  So they hang onto the not-so-loved watches in the hope that things will change.  

The Sunk Cost Trap explains why a retailer who continually hoses the brand manager by not paying their memo account when they actually sell something will not be confronted by the brand manager.  The brand manager has sunk too much time and too much money into the partnership, and even though they often wait a ridiculously long period of time to get paid (making several expensive trips to the retailer to count the safe and prove to them that, in fact, they have sold the watches and need to pay), this "partnership" will live on.  Often without the brand manager getting paid, and inevitably seeking new professional opportunities.

The Sunk Cost Trap explains why an honest retail  partner will get shafted by a brand who will not provide them with a limited edition watch to sell to their client (at full price) because they want to try to sell it at their own boutique.  Even though they do not have anyone who wants to buy it.  But the fear of having had it, and not selling it?

You get the idea.

Breaking the Sapphire Crystal Ceiling - Richemont

Credit must go where credit is due.  If the reports from the South China Morning Post are correct, and now that the researchers here at Tempus Fugit HQ have checked with our "man in Bienne" it would seem that Richemont, on behalf of Jaeger-LeCoultre have done two things that many of us didn't think would ever happen.  They would finally make a decision about a CEO, and more importantly, they made a refreshing decision to appoint a woman to that role.  Word has bubbled out that Catherine Alix-Renier has been tapped to take the wheel at JLC.

Now, in the interest of fair and honest reporting, I have had a very, very hard time liking Jaeger-LeCoultre as a brand for some time.  There, it's out in the open, I've said it.  I have had such an abiding distaste and dislike for their way of doing things that I declined my first-ever invitation to the SIHH, and the "warm & fuzzy ambassadors" at Richemont took note, and no further invitations have been forthcoming...
Well, fair enough ; )

But as that other great commentator on watches, Barry Hearn, has noted:  "Life moves forward, doesn't it?"

So it was with no small amount of amazement, wonder and enthusiasm that I read the news that the brain trust at Richemont HQ had taken the very unusual step to break one of their cardinal rules and not appoint one of their pre-ordained "golden boys" to a senior position that they had been painstakingly groomed for, but rather looked inside the organization for someone who has not only the educational bona fides (insert a quick shout out to Boston College Eagles everywhere) having completed her MBA in my fair city, but the experience.  Someone who rather than loitering around the Richemont HQ, went out and worked in the field.  One of the biggest complaints that I hear from Brand Managers, Brand VPs, distributors and retailers is that the folks at the top have no idea what it's like at their level or in their region.  Well, good news boys and girls, things are about to change.

Ms. Alix-Renier had logged time in North America, Hong Kong and until now been responsible for the Asia Pacific region of Van Cleef & Arpels.  Think about that for a hot minute - the two most important market places that each represent the most daunting and frustrating challenges to brands.  So I suspect at meetings and planning sessions you will no longer hear:  
"Well in Europe..."  as a reason to not consider that different global markets require different approaches.

So I would like to commend the shot callers at Richemont for joining the 21st century, and on behalf of the Executive Publisher and myself wish Catherine Alix-Renier God's speed and all the best of success.

I am now off to a breakfast meeting with the Executive Publisher to discuss a possible pay increase so I can buy a Reverso.  I find that I actually want one again ; )

Introducing Eluxio

Ever wonder why we all know who Jean-Claude Biver is, but probably have no idea who the product president for Crest toothpaste is?  More people use Crest than own Hublots, Zeniths, or even Tag Heuers.  In fact, I am willing to wager that more people use Crest toothpaste in the US than follow (or more appropriately, obsess about) watches.

To quote Barry Hearn - It's about passion!  And thank goodness that there has been a recent burst of new watches, as-yet under reported brands and truly passionate people fighting an ongoing battle to bring their ideas to life in a market place that is increasingly surrounded by the horological equivalent of Big Box Stores.  And when you find Omega, Tag Heuer and Breitling at Costco, that only serves to underscore the point.

And one of those new brands doing things their own way?  Eluxio -

Courtesy of Eluxio

Eluxio is the creation of Osvaldo Marzo, someone who trained as a goldsmith, but finds joy and creative opportunity in making his own watches.  

Okay, so what?  Plenty of people have tried to launch their own brands.   Well, fair enough.  

But how many people craft:

* cases

* crown

* dial with applied indexes

* Hands (hours, minutes, seconds)

* ring movement block

* buckle

Themselves?

And here's a little inside baseball for you - the majority of the big dogs certainly don't, they order cases from case manufacturers.  The same for dials, hands, pretty much everything except the user manuals... wait, they job those out too!

And if we are being very, very honest about it, this is how the watch industry has worked for years.  One of the great perks for many CEOs and other upper-echelon folks is the, how do I put this gently, largess provided by eager parts suppliers in the hopes of securing orders.  

Well, we all need a side hustle ; )

Courtesy of Eluxio

So it is not just refreshing, but revelatory to see something honest, sincere and truly made with an attention to the personal involvement of the watch maker.  And that is just what Mr. Marzo has delivered with his Eluxio watches.

Courtesy of Eluxio

According to Mr. Marzo, CNC plays no part in the creation of the constituent parts of Eluxio watches.

Courtesy of Eluxio

The dials are created on a lathe, are micro sand blasted with a lovely level of satin finishing.

The case and crown are milled from Staybrite 1.4435 WCQ.

Courtesy of Eluxio

The movements are not "manufacture".  And in fairness, for a watch that is made one at a time, only upon order and at a price of 2450 Euro (VAT included), it would be unrealistic to expect this.  The movement is the manually wound Sellita SW216-1, a movement found in many much more expensive watches using factory supplied cases, dials, hands and crowns ; )

Courtesy of Eluxio

So, no big name "friends of the brand", no splashy red carpets, and no bullshit.  Just an honest, unique and hand created watch.

Now I know as well as anyone that we all respond to brands.   We all hear dog whistles, and many of us respond.  But if you want something made one at a time, by hand?  This might be in your wheelhouse.  It certainly is in mine.

Here are the pertinents, straight from the source -

Courtesy of Eluxio

Dial Arcum Grey: grey rhodium and gold-plated.
Indexes are gold-plated and white rhodium plated and applied manually.  The hands are gold-plated.

Courtesy of Eluxio

Dial Arcum Classic: white and grey rhodium-plated.
Indexes are gold-plated and thermally hand blueing and applied manually.  The hands are thermally hand blued.

Courtesy of Eluxio

Dial Arcum Rosé: Rosé gold and grey rhodium-plated.
Indexes are white rhodium-plated and thermally blueing and applied manually.  The hands are thermally hand blued.

The case and the crown are made by milling and filings in Staybrite 1.4435 WCQ (watch case quality).

* case measures: 47mm (lug to lug) x 38mm (without crown) x 9,2mm
* case and crown are equipped with rubber seals.
* sapphire crystal on the bezel and on the back.
* waterproof 3bar

Strap made from Genuine Ostrich leather and are handmade in Germany.

The movement is the Sellita SW216-1 manual winding Spécial (Elaboré), Rhodium finish, with blue screws, Genva cut and perlage, 28´800 V/h,24 jewels , 42h running time , stop-second device.

Eluxio watches are manufactured only on order (they are not ready in stock).

Your watch will be ready for shipping 5 to 6 week after ordered and paid.

* 2 years warranty.
* Each piece is numbered.
* price : 2450- € (incl. German VAT). Price for NO-EU-Countries 2060,- € + custom payments(import duty/taxes) + shipping costs.

Courtesy of Eluxio