The Transfer Window Opens - At Parmigiani

Watch Town is a funny place. Parmigiani has bid its current CEO, Davide Traxler, arrivederci and in a shrewd move did so while the majority of Watch Town's members of the press have been preoccupied with LVMH's dog and pony show. So before he barely had a chance to sling his hook and take it on the arches, his replacement had, in fact, already been installed. So in the same breath, congratulations to Guido Terreni, until very (VERY) recently a very senior executive in Bulgari's watch division.

News broke in pretty much every branch of the press, except... the watch press, that Mr. Traxler would be pursuing "other professional opportunities" and curious to relate? His replacement had already been vetted, approved by the board of directors and appointed.   

Watch Gods, you do move in mysterious ways...

Now it is also interesting to relate that more than one press outlet portrayed Parmigiani as "struggling". And that is a hard one to quantify as Parmigiani is an independent company owned by what is, essentially, a family trust. What remains unsaid is whether Parmigiani is:

A.  In better shape than when Traxler took on his role as CEO.

B. In worse shape than when Traxler took on his role as CEO.

C. No better, and no worse than when Traxler took on his role as CEO.

But as that other great commentator on the watch business, Darryl Dawkins once opined -

“When everything is said and done there is nothing left to do or say.” 

So we wish Davide Traxler the best of success moving forward, and wish Mr. Terreni Godspeed in his new role.

Left Behind...

What we know:

Rolex, Patek Philippe, Tudor, Chopard, Chanel, Bulgari, TAG Heuer and Zenith have officially left the building (or more specifically, Hall 1).

What we can be pretty sure of:

Seiko, Casio, Citizen (which actually includes more than a few other brands including Frederique Constant and Alpina among others), Bell & Ross, Carl F. Bucherer are probably going to sling their hooks and "Take their talents south, to Lake Geneva". And with those brands, any hope of having a fair in Basel will go with them.

BUT -

There's in fact, more than just one more twist in the tail to this shit-show. Because it bears mentioning that saying you want to leave BaselWorld does not, de facto, mean you will be welcomed with open arms to the Geneva Fair to be Named Later. Because the operating name says it all - FHH. Now it is important to note the language used by the initial breakaway group in their "See ya, wouldn't wanna' be ya" letter:

The new show, which will be linked to Watches & Wonders, organized by the Fondation de la Haute Horlogerie, is to take place at Palexpo. The aim is to offer partner brands the best possible professional platform, applying a shared vision to successfully meet future challenges in the watchmaking industry. It will also give crucial prominence to the sector’s expertise and innovations, both in Switzerland and internationally.

Other brands may also be added, according to terms that have not yet been defined. This new event will be geared predominantly towards retailers, the press and VIP customers.

And that is the kicker here.  Because when we talk about the five brands that initially split off, they clearly fit into a certain demographic in terms of "acceptable suitors" to join the Richemont circus.  And then, this is where it gets really interesting and there will be a chasm that opens between "luxe" brands and the rest.  And again, reading simply what is there and not even between the lines -
This new event will be geared predominantly towards retailers, the press and VIP customers.
So that means that a lot of press, a lot of potential retailers and pretty much all of the "great unwashed" (i.e. watch enthusiasts), are not really of interest.  

So we shall wait, and we shall see.

LVMH Heads South

Shamelessly Borrowed from the WorldWide infoweb 

News, honestly more anticipated than surprising, has made its way to the North Shore this morning confirming what most of us have seen as inevitable -

The Swiss watch Manufactures belonging to the LVMH Group, the world leader in luxury, have in turn decided to leave Baselworld in order to join the other flagship brands of the Swiss watch industry in Geneva from 2021 onwards.

That's the as yet to be formally named FHH spinoff, for those of you playing at home without a score card and game program.  Now there are some of you out there that might equate this with LeBron James taking his talents to  South Beach, but I think in all fairness this was inevitable.  

Watch Town is a very funny and peculiar place.  It is filled with some very intelligent, hardworking, and charming people.  And, like any other industry (and perhaps more than many) it is filled with ego.  And all of us who inhabit Watch Town are guilty of it to some extent.

I personally loved going to BaselWorld.  It was like the Super Bowl, 4th of July, World Cup, Christmas and Olympics all landed on your birthday.  It was fun.  Even from my first visit as a member of the press back in 2011 when almost nobody had time for me or knew who I was, it was exciting.  And yes, the fair was an expensive proposition.  For my first 6 BaselWorlds I stayed in Lucerne and commuted back and forth by train as the cost of accommodation for a week, even in a half-way house converted for BaselWeek (recovering addicts temporarily relocated) was of the level that is usually negotiated with the aid of a loaded pistol and a getaway car.  

And in all honesty, does the fair itself really need to cost the brands SOOOOO much money to participate?  I have worked on the other side of the BaselWorld booth as a brand employee, and the amounts demanded for just the booth space were of a level on par with the GDP of a small developing country, and that was just in Hall 2!  Trying to negotiate on certain points was often not unlike trying to purchase the correct exit visa on the East Berlin side at Check Point Charlie circa 1985 -

But Watch Town, although exciting and interesting, is not always populated by angels.  As rapacious and usurious as the brands feel that the fair organization has been these last five years (and in many ways, rightly so), some of those same brands have not exactly been welcoming, inclusive or even interested in the majority of the press, and honestly could not give a toss about the public.  You know, those mythical unicorns that actually BUY WATCHES.  Press appointments are often forgotten or ignored.  Now from the brand employee's point of view, they have a thousand appointments, and hey, some of them might be forgotten or missed, and if you are not the Wall Street Journal or one of the big outlets, we're not going to reschedule.  But to the journalist that spent $2,000 on a plane ticket, another $2,000 for accommodation, add more for food and ground transportation, and let's not forget the time off from work, this is a big deal.  The indifference of some brands to try and accommodate appointments that they (the brands) have messed up is really the height of arrogance.  And for many of us in the Fourth and Fifth Estate, it impacts how we view those brands moving forward.

So short view - it takes two to tango.

But let's get more basic than that -

On a core level, BaselWorld (and Watches and Wonders and the Geneva "fair to be named later") are there to serve the brands.  Not the other way around.  And that is something that BaselWorld lost sight of.  But I truly do not know that the folks in Geneva are going to be any more warm and fuzzy.  Trying to beg, borrow or steal a press credential for the former SIHH was a bit like being a contestant on Survivor.  

Again, the fairs are there to serve the brands.  BUT - the brands participating in these shows are there to serve the press, the retail partners and the public.  And here's an even colder cup of coffee on an already chilly morning - as brands have to cut or curtail their advertising budgets (understandably), the big, shiny watch media outlets that get all of the prime invites and velvet rope access?  Well, they are going to find it harder and harder to keep going.  And one more time for my one special fan out there whispering nasty things about me every chance they get, I do not wish bad luck or lack of success on ANYONE.

Fairs - you need the brands.  Stop making them kiss the ring.

Brands - you need the press and the public.  Stop treating the press like a beauty pageant where you're going to select the most popular boy and girl for the Homecoming/Prom King and Queen and blow everyone else off.

Journalists - it might be time to be a bit more inclusive with your coverage, and here's a crazy idea for one particular outlet - stop trying to charge money to brands who probably can't afford it for coverage in your outlet.  It's a dick move.

I think it is safe to say that we all love watches, maybe we all need to find a way to better share that love?

The Group that Saved BaselWorld

Shamelessly borrowed from the worldwide infoweb

By now, the management of the MCH group (responsible for the management of the BaselWorld fair) have fully absorbed the relief of LVMH confirming that they would, indeed, be moving forward for another year in Hall 1. Here is the official release -

MEDIA RELEASE | 25 APRIL 2019

LVMH CONFIRMS ITS PARTICIPATION FOR BASELWORLD 2020
Bvlgari, Hublot, TAG Heuer and Zenith will exhibit at Baselworld 2020. Collaboration on concept for 2021 and beyond.

 

BASEL, SWITZERLAND, 25 April 2019 – The LVMH Group has confirmed its participation for Baselworld 2020 within the current framework for its Bvlgari, Hublot, TAG Heuer and Zenith brands. For 2021 and the following years, Baselworld is collaborating with the Group and its brands on new presentation concepts and formats.

“We are delighted to be cooperating with LVMH and the Bvlgari, Hublot, TAG Heuer and Zenith brands again in 2020 and jointly shaping the future of Baselworld,” says Michel Loris-Melikoff, Managing Director of Baselworld. Baselworld will support each LVMH brand in the design of innovative exhibition formats for their presence in 2021 and beyond. The purpose of these new formats is to let each house express its creativity and provide an outstanding brand immersion.

“This is a creative and completely open process with no constraints or thought restrictions, that we are tackling together,” says Michel Loris-Melikoff. “Our concept for the Experience Platform is precisely that: enabling brands to flexibly present themselves to their various target audiences”. 

“A common decision was reached today, together with Bvlgari, Hublot, TAG Heuer and Zenith, to confirm our presence in Baselworld in 2020. We support Michel Loris-Melikoff and his team in their project to redefine and renew the concept of this major event for the Swiss watch industry,” says Stéphane Bianchi, CEO of the LVMH Watchmaking Division and CEO of TAG Heuer. “Our discussions and the changes that will be implemented will allow us to reassess our future involvement after the next edition.” 

So as the collective sphincters at MCH return to normal sizes after the stress of this latest game of high stakes chicken, now is the time for them to focus on (believe it or not) what the bigger problem is.  And just what does that mean?

Well, I think for far too long the previous as well as the current fair management have been distracted by "shiny objects" (i.e. big brands on the ground floor of Hall 1) and as a result they have lost a lot of the other players necessary to have a fully-functioning fair.

If you had attended BaselWorld for the past three years, you would be forced to agree that there was quite a bit missing in terms of brands who had been there before.  Eterna, Corum, Favre Leuba (which held court in a semi-circle of chairs in the Hyperion lobby), Graham (holed up in a hard to get to hotel room), Eberhard, and too many others to count.  These are all brands that have, in the past, had fairly prime real estate in Hall 1 or at least nearby.  And these are just a small sampling.  

So, just as an unlikely group of random basketball playing Pisces saved the day in "The Fish That Saved Pittsburgh" (1979 film staring Dr. J and featuring some of the era's forgotten stars, such as Norm Nixon, Kevin Porter, Cedric "Cornbread" Maxwell among others), an unlikely group of brands could save BaselWorld.  But it would require a few things to happen:

Shamelessly borrowed from the world-wide infoweb

1.  "Lighten up, Francis!"  (Stripes, 1981) - simply put, stop taking yourself so seriously, and lower the f#$*ing prices.  We had a rather embarrassingly painful lesson on market economies -
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Simply put?  The hotels and restaurants around the BaselWorld fair had no real motivation to lower their prices, despite what the fair organization promised.  Suffice it to say, you come to Basel, you get fleeced.  And what the fair organizers still don't seem to understand is that getting hosed on hotels and meals is not really the great deciding factor for most journalists, retailers and distributors.  And it certainly isn't for the brands.  It's whether or not the fair, as a whole, is solid enough to attract the crowds.

2.  Stop sticking it to the public -  Whether we admit it or not, what makes fashion, music, cinema, and yes watches sell?  The PUBLIC.  Stop charging the public usurious rates to come to the fair to look in some windows.  It's ridiculous, and the majority of the brands, big and small do make any effort to engage with the end customer.  

3.  Start punching your weight in terms of what you are going to charge for brands to participate.  It is better to have full halls for less per brand and still make more money, than to charge the type of amounts usually negotiated with the aid of a loaded pistol.  Less, in this case, would actually be more.

4.  Stop chasing after stars, and focus on the majority - in terms of brands, in terms of media, in terms of retailers.  And ESPECIALLY in terms of fans and enthusiasts.  BaselWorld has always been fairly democratic, unlike it's snooty, estranged partner the SIHH.  Keep it that way, focus on being inclusive?  You will only  benefit.

5.  Make it FUN again.  A fashion show, some cars up on a stage, and the same tired old press conferences conducted by tired old white men?  News flash - not so much fun.

With the confirmation of LVMH, you've got a fighting chance!  Like the hopefuls trying out for the Pittsburgh Pisces, this could be your "Chance of a Lifetime!"

  

BaselWorld Beckons

So it's that time again.  BaselWorld beckons and once again the hustle is real.  I am writing this from the newly revamped press area that is adjacent to Hall 1 (translation?  Too much space left unoccupied).

There are some very, very weird vibes.  Obviously we hope that the fair will be good, successful, etc. But I would be less than forthright if I did not say that there is a palpable whiff of anxiety hovering around the area.  So we shall wait, and we will see.

More to come, stay tuned!

A Few Minutes with Davide Traxler

With a new COO, the reintroduction of the Bubble, and a more focused approach, Corum is once again on the lips of many of us reporting on watches.  So it seemed appropriate to spend a little time with the man who has his hand on the wheel -

Courtesy of Corum

And now, a few minutes with Davide Traxler.

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


Davide Traxler - My first watch was a Timex and I have always loved watches.  My father gave it to me.  I remember its sound, at night, like a lullaby.


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

DT - I had no clear idea but I wanted to travel and to meet people from everywhere.


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

DT -  I grew up in a family of diplomats so we lived all over the world from South America to Africa, the USA and Europe, always studying in French schools.  I studied political science in the Catholic University of Milan.


TF - How did you get into the watch business in the first place?

DT - I was at Bulgari when I first met the owners of Chopard at a dinner.  We met again, I worked for Chopard for 13 years.


TF - After tenures with Bulgari and Chopard, what drew you to Corum?

DT - It's exciting to join a group with a brand with such amazing timepieces.  Forum is a different brand, I like to thing that it offers special watches for special people.  The mission is to get the word out about the brand and bring together the knowledge within the company.  The time is now to share and this is what I want to bring to Corum.


TF - What are some of the biggest opportunities for Corum?

DT - Corum is a beautiful brand that has its respected place within the industry and the market.  Since the company's beginning, Corum has taken pride in being a distinctive Swiss watch manufacturer by being very creative.  Our models are truly unique in the market with iconic designs and offer exclusivity in terms of quantities and of designs.


TF -  I realize it might be hard, but what is your favorite Corum model?

Courtesy of Corum

DT - The Golden Bridge is so incredibly unique, elegant and rare; it stands alone among all other watches.  i first discovered it about 15 years ago and have loved it since.  Any watch aficionado wants a Corum Golden Bridge!


TF - In a crowded market space, what is it that makes Corum special?

Courtesy of Corum

DT - Corum is a distinctive watchmaking brand.  The Golden Bridge, with its unique linear baguette movement, or the Bubble with its creative design are both so definitely different yet both so iconic.  We can define Corum as a brand of special timepieces for special people who want, understand, and seek something extraordinary and different.


TF - What do you like to do in your free time?

DT - Actually my time in general is spread in two pillars, home and work.  With three children and a brand to enjoy, I really don't look for anything else.  It's a bit of a 19th century vision, work and family, maybe a bit obsolete today, that is who I am.  I keep it simple.


TF - If you weren't doing this, what do you think you'd be doing?

DT - Probably I would be in another branch of fine manufacturing.  I love special products and the special people behind them.


TF - What advice do you have for the aspiring watch executives/brand leaders out there?

DT - I believe the whole trade has much to learn from basics:  listen, listen, respect, respect, decide, and simple business ethics.

As the Transfer Window Opens - the Time for Renewal Approaches!

So it would seem that the first major move to follow the watch maker's holiday is firmly in the books, and it was not a "substitution", but rather what represents in many ways a junior player being called up to the senior side.

So enter Davide Traxler to the fray -

Today Corum announced Mr. Traxler as their new COO. With over 15 years of experience under his belt, let us hope that he has a bit more luck than the previous incumbents. Heavy is the head that wears the crown, and it goes without saying that previous "head men" at Corum tend to have executive tenures shorter than that Pope who got poisoned.

I for one am getting tired of writing about premature departures. So let's hope that Mr. Traxler has the "secret sauce" that eluded his predecessors.

Well Done Bulgari!!!

As is sometimes the case, this nice little piece of PR did not make the rounds to most of us who write about watches, but here at Tempus Fugit when we're not complaining about watch brands not doing or giving enough, we also try to recognize when they DO.  And this has been a great past few days for saying thank you to watch brands - Hublot, Rolex and now Bulgari!

Courtesy of Bulgari

According to their website (and I see no reason to disbelieve this) Bulgari has raised $35 million for Save the Children since they began their partnership back in 2009.  Pretty impressive?  That is an UNDERSTATEMENT!

And because, well, apparently they felt that they could do more -
Jean-Christophe Babin pledged an ADDITIONAL 500,000 Euros to Save the Children's efforts in Nepal following the earthquake earlier this year.

Forget all the movies and cartoons - the smiling gentleman in the stylish glasses pictured above?  HE IS THE REAL SANTA CLAUS!

The Watch Industry and the Transfer Window... LVMH...Maybe

Now, contrary to what a certain CEO of a certain "Manufacture" would have you believe about bloggers, some of us actually do take the time to fact check.  The story broke this morning that Jean-Christophe Babin will be leaving TAG-Heuer to lead Bulgari no later than June 30th of this year.  This was sourced by several online watch forums and the news was credited to a newspaper article, and also announced by Reuters, Women's Wear Daily and FOX Business News, among others.  So I called around for confirmation/ comment, and while nobody at TAG Heuer HQ is confirming or denying, I have been promised a press release shortly.

So if this is all factual, the next question becomes who will take over at TAG Heuer?  In many ways while this is news, we have to remember that both organizations are part of LVMH, and in many ways this could be considered as internal restructuring.  It is clear that Mr. Babin and the team at TAG Heuer have done some fantastic work to position the brand, and it will be very interesting to see if they go "outside the family" for the next head of TAG Heuer.

Stay tuned