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.

The Transfer Window Opens

At Corum and Eterna.

Davide Traxler has been relieved of his duties at both Eterna and Corum.  For many of us, the news was delivered by Karl Heinz Nuber through is well-regarded TICK-Talk site:

http://www.tick-talk.ch/city-champ-jewelery-watch-group-faehrt-eterna-an-die-wand-und-sucht-nach-neuem-corum-ceo/

I was able to confirm this news through a contact at Corum, Switzerland.  For those of you (like me) who do not speak or read German, Google Translate can give you a fairly decent version.  I want to thank Karl Heinz for tackling what many other writers would avoid, and I commend him for showing some willingness to take on a touchy subject.

Now, I have a slightly different perspective having worked on the "other side" of the BaselWorld counter, and I agree with a lot of what Mr. Nuber points out.  But I would add some layers that are based on what I have seen and heard not as a journalist, but from some brand management experience.

One thing that we can all agree on is that losing your job sucks. There are generally no good feelings engendered when you are informed that your services are now surplus to requirements.  But the problems at Corum and Eterna did not sprout up overnight and they were never going to be solved in any short-term fashion.  I know that there are a lot of folks out there who feel that the dysfunction is solely down to the incompetence or lack of cultural awareness of the Chinese ownership - Citychamp.  I would have to say that, with respect, I disagree.

The problems at Eterna have been going on for YEARS.  Long before I entered the industry, long before I started covering watches back in 2010.  And the one thing that has always rung true is that there has been a near perpetual lack of self-awareness at Eterna.  And let's be really, really honest, it is a Top - Down problem.  It's interesting to note that through several "regime changes", several key people who were, well, supposed to be responsible for little things like sales, etc. were kept on.  In other words, the head coach kept changing, but some of the key players stayed on.  The other piece at Eterna that continues to hamstring it is a fundamental misunderstanding of what kind of watch company they really are, and what exactly they should do, as opposed to what they could do.  In terms of products, pricing, and how they are perceived in the market place, this is something that has shifted and changed on a fairly constant basis over the last 10 years, leaving the brand identity to drift on an ice floe.

And as we are being honest with each other, let's be clear that Eterna has two solid cornerstones to build (or in this case, rebuild) their brand upon: the KonTiki and movements.  Everything else will only be noise and distraction.  Sounds sort of harsh, doesn't it?  Well, ask yourself - how many collections have been launched by Eterna and, well, sunk in the past few years?  How many marketing campaigns have been pushed away from the shore, only to be lost at sea?  What has hindered Eterna FOR YEARS is a fundamental inability to work on a project, and see it ALL THE WAY THROUGH to the end.  This was true when Calce oversaw both Corum and Eterna, it was painfully true under the tenure of Mr. Dreyfuss, and has been abundantly clear in this latest chapter.  And yes, that is a cultural dysfunction - but that is, regrettably, the Eterna culture.  It  has been there for YEARS.

While I am not the MOST informed person out there, I can tell you that I meet A LOT of former Eterna employees now working at other brands or in other areas outside of Eterna who are now FLOURISHING.  Doing amazing things!  But they all tell a similar tale, and that tale is really more about a culture that is not so good.  And the culture is not Swiss, and it is not Chinese.  The culture is the company culture.

Now consider the role of Citychamp in all of this.  They have come in, they have pumped, literally, MILLIONS of Swiss Francs into Eterna and Corum.  They have trusted the individuals recommended to them - insiders from the Swiss watch industry.  Keep in mind, these were not Citychamp or Chinese CEOs.   It is also worth noting that the key staff that was kept on despite their sometimes indifferent performance were not from Citychamp either.  The amount of debt racked up by the previous and recent administrations points to poor management and oversight.  Put another way, if it were not for Citychamp, there likely would not have been an Eterna for the past several years. 

I think what I find most fascinating in all of this is that what really underscores a somewhat xenophobic attitude of the Swiss watch industry.  I visited Eterna back in 2013.  I stopped at a bakery for directions to the factory and was asked if I spoke Chinese.  Meant as a joke, but to me really underscored a certain unwillingness to accept that a Chinese owner could ever hope to successfuly manage a Swiss company.  Now in fairness, it does seem that Citychamp is having some difficulties in getting these two houses in order.  But I am less and less convinced that this is a question of who owns the brands. 

My point is that sometimes brands just can't get their shit together.  And sometimes it is a question of changing the culture.  Not Swiss, not Chinese, but company culture.

So let's hope that Citychamp will find a team leader who will not only be focused on developing a brand, but developing a team.  A team with a strong identity and a positive, collaborative, and solid culture.

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.