Deja Vu All Over Again

Shamelessly borrowed from the worldwide info-web

With the bankruptcy announcement of RJ and the cancellations of this year's fairs (I suspect JCK and other regional shows will follow suit), it may seem as if we're in extraordinary times.  Well, yes and no.  Anyone who was in the business back in 2008 will have less-than warm and fuzzy memories of that time.  I had about a year under my belt at DOXA when the shit hit the fan.  And as bad as that was, remember that it wasn't the worst.  The quartz crisis was far worse.  

Shamelessly borrowed from the worldwide info-web

But what those two seismic events have in common with what is happening now, is a fundamental inattention to reality as it is unfolding, and a (sorry) rather shocking unwillingness to believe that contrary opinions might be, I don't know, good to listen to.  It's a little like refusing to listen to the weather report then being surprised when you get rained on.

Is the sky falling?  Of course not.  The watch business will continue to hum along, but for some brands the end of the road is rapidly approaching.  So a little inside baseball for you - with the exception of (most) micro brands, the majority of watch brands out there are fairly dependent upon outside investment.  Per RJ's press announcement:

Press Release Eysins, Switzerland, February 27, 2020. The Board of Directors of RJ Watches SA regrets to announce the company's bankruptcy application. The Board of Directors of RJ Watches has been informed of the decision of Alliance Investment Group SA, its majority shareholder, to stop investing in the company. This unpredictable decision was communicated with immediate effect, which makes continuation of the business impossible and the search for a possible buyer impossible within such short time. Consequently, the Board of Directors of RJ Watches has no other choice than to file for the bankruptcy of the company and the dismissal of all of its employees. Marco Tedeschi, CEO and the entire RJ team deeply regret this decision, which cuts 33 jobs and ends a great journey.

RJ is not alone in this situation, they are just the folks we are talking about right now.  If you want a good "canary in the coal mine" indication of just how well a brand is really doing, check their social media feeds.  Was a brand active up until, I don't know, let's say the end of January, and suddenly nothing?  That tells you something.  In some instances, these are brands that are little more than play things for wealthy owners/investors/partners.  More expensive than a mistress, but cheaper than a football (soccer) club.

Shamelessly borrowed from the worldwide info-web

When we talk about the big dogs, well let's just say that there is pain, there will continue to be some, but that pain is going to be felt by individuals, not so much for the brands as a whole.  People still want watches, people are still buying watches.

For the small independent/micro brands?  These are folks who are used to being their own rainmakers.  Those who keep their eyes on the prize will weather this latest storm and make safe harbor.

But what about the middle?  No offense to RJ, but have a brief look in the financials of several mid-size independent brands, you will likely find a similar situation.  All it takes is your main investor to pull the plug, and you're cooked.  Remember Kronaby?

So there is going to be consolidation.  Maybe not on the scale of the Quartz crisis, but I suspect certainly on a scale of 2008.  Keep in mind, we have several "sleeping beauty" brands right now, snoozing peacefully in financially induced comas, and unless there is a DNR, they will continue on this way. 

And this will not just be in the brand side.  Media is scrambling to not only stay relevant, but financially viable.  With brands tightening their belts, advertising money is usually cut before the company car benefit.  So this means that the press junkets will be less frequent, and certainly less glamorous.  But not to worry, I feel confident that there will still be money for yacht and F1 sponsorship ; )

And retail partners?  Well, not all marriages stand the test of time, and some truly good, fair dealing retailers are getting the fuzzy end of the lollipop from the brands who are dazzled by large stores who bully them into giving them exclusives.  It's an unfair game, but there you have it.

And as has happened in the past?  We will see several loyalists move away from the industry and "pursue other professional opportunities", and then there will be the inevitable consolidation.  

As mentioned previously, the current situation in watch land is not new, not due to Coronavirus, unrest in Hong Kong, or some Deep State conspiracy ; )

This has been on the cards for awhile, and the size and scope of the watch business couldn't go on forever.  

So who will emerge from this latest Back to the Future moment as a visionary/savior? I think what we will see is someone who can see things a little more clearly, without the lens of ego. Someone who can pull together a seemingly disparate group and streamline processes. Remember when it looked like Fiat was cooked? It took something more than just a trendy Fiat sweatshirt to save the day, it took Sergio Marchionne, an outsider who looked at things as they were, not how brand managers wanted them to be.  Nobody likes to be told that they have an ugly baby, but just as we can't give a participation trophy, we also need to accept that perhaps not every brand is truly viable.

One of my all-time favorite lines that I used to hear just before this person essentially told me, you just don't understand:

"You see, the thing is..."

Well, the "thing" is this - the ecosystem has been overpopulated for some time, and there is going to be even more pain.  Just like 08, just like the 70s.  We are going back to the future.

Baume & Mercier and What Could Still be

Courtesy of Baume & Mercier

There are some brands out there that just seem to get lost in the shuffle.  I was trying to explain the concept of luxury groups to someone who is really not into watches at all.  This conversation took place while driving past one of America's innumerable "Auto Miles" where row upon row of auto dealers live and work, cheek to jowl.  

And we had a perfect example passing by the local Chrysler, Dodge, Jeep, RAM and... Fiat dealership. It becomes a bit more confusing were you to add some of the other brands owned by the same parent company - Lancia, Maserati, Alfa Romeo...

Well, you get the idea.

Richemont, for all of their swagger and flash are not enjoying the best of times in terms of watch sales.  Now while it has been reported that sales were up in the jewelry section, and a modest bump in watches, there are actually quite a few more pennies about to drop. 

Apart from Rolex and Patek, everyone else is, essentially, sucking a rather fuzzy lollipop.  

But let's get back to the main topic this evening, Baume & Mercier.  And not unlike that aforementioned Fiat Auto Group, while there are several horses in the stable, they are not all future Kentucky Derby winners.

As mentioned previously, the Fiat group has a lot of "work horses", and there are some who feel that Dodge should be sent to the knackers, but they have one race horse - Maserati.  Now curious to relate, all of the brands within the group are not trying to emulate Maserati.  In fact, each of the brands pretty much stays in their lane.  Also curious to relate?  Baume & Mercier had a very bad habit of trying to piss in the tall horological weeds with the other big dogs in the Richemont pack.  Now in fairness, that was under a previous regime.  But the point being, you have to punch your weight.   

Do you ever wonder why Mido doesn't come out with a tourbillon?  

Baume & Mercier has A LOT to offer.  A lot to offer at the right price point and positioning anyway.  There are a lot of people out there who walk into a jewelers without any blessed idea as to what to buy for themselves or as a gift for someone else.  Guess what they buy?  They might buy a Longines, they might buy a Baume & Mercier.  In fact, in speaking with a lot of retailers in North America, that is why Baume & Mercier was such a great seller for them.  It was the watch to sell when a "civilian" came in unsure of what to get.  Not too cheap, not too expensive, but just right.

That was long before the spin-off of Baume, before the identity crisis that is still roiling.
Baume & Mercier could still be something pretty special.  But it is going to take some time and some re-working of the brand and the brand's message.

But Baume & Mercier could knock it out of the park if they are willing to be who they are, and can stop trying to be who they are not.

I would buy this one in a heartbeat -

Courtesy of Baume & Mercier

BRM Abarth 595 V12-44 Limited Edition

This just in from BRM -

Courtesy of BRM

BRM is proud to present its limited edition V12-44 chronograph in commemoration of the Abarth 595 “50th Anniversary.” 

A Command Repeat - A few minutes with Willy Schweizer

So as I am in a reflective mood while looking back on this past year, it seems a good time to revisit some of my favorite memories of 2012.

A few minutes with Willy Schweizer

Sometimes you get some wonderful opportunities, and my visit to Girard-Perregaux's Headquarters and Manufacture this past March was right up there in a "Wonka Golden Ticket" sort of way.  I was very excited to see the operation, observe first hand how movements were assembled and watches were made.  I was also anxious to look at the buildings, take in the architecture, and try to get a sense of what the place is like on a daily basis.

But in all honesty, the high point of the day was spending time with the conservateur of the museums, and to some extent the guardian of the legacy of Girard-Perregaux and Gino Macaluso.  A historian, curator, and genuinely interesting guy.  

When I think of the stereotypical museum worker, I tend to think of a fussy person scurrying about, with a better rapport for objects than people.  Girard-Perregaux's Willy Schweizer - not so much!  Engaging, extremely knowledgeable, a communicator beyond compare... and frankly, an extremely gifted story teller.  

And now a few minutes with the Poet Laureate of La Chaux-de-Fonds, Willy Schweizer -

James Henderson - What was your first watch? Was it a gift? Is there a story behind it?

Willy Schweizer - It was a non-branded manual-wind, made by the students of the watchmaking school of la Chaux-de-Fonds. It was a gift from my father for my 8th birthday.

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

WS - I had 2 dreams : aviation and car racing, which both came true, but not professionally : I am private pilot and I used to race in the Swiss and European rally championships.

JH - My understanding is that you almost didn't get involved in the watch industry? I believe that you studied something a bit removed from main-springs and tourbillons? 

WS - Not exactly - I come from a family of watchmakers, but I am not a watchmaker myself, because when I had to choose a profession in the 1970’s, watchmaking was in crisis and within less than 10 years, the number of jobs fell from 150.000 to 30.000.  In this context, everybody was thinking that this trade would disappear sooner or later.  So I studied history at the University of Neuchâtel, with a special interest in local history and watchmaking.  When I graduated, I started at the Swissair aviation school, but after one year, they said my eyes were not good enough.  So, with the idea of entering into the watchmaking world, I sudied marketing in St-Gallen.

JH - After your studies, what was your first job in the working world?


WS - Marketing and sales at Zenith, for the Swiss market.

JH -  So from History, to the watch industry, to museum curator - was that at all how you planned it?

WS - Certainly not.  When I moved to Girard-Perregaux in 1984, the logo was already referring to 1791 (« fine watches since 1791 »), but nothing was done to enlighten the rich history of the brand, so I started to work on that immediately, and we opened a first Museum in 1991, the year of our bicentenary.


JH - What brought you to Girard-Perregaux originally?  What was your first job there?


WS - The opportunity to work on the international markets.  I was in charge of Germany, Britain and the Middle-East.

JH - Lately, it has been said that there are now essentially three "ages" of Girard-Perregaux: Pre- Gino Macaluso, Gino Macaluso, and Post-Gino Macaluso.
What was GP like in the time you were there before he arrived?


WS - It was a small company (60 people), producing nice watches, but watches which did not correspond to the demand : high end already, but with quartz movements.

JH - If you can put your finger on it, what was the one most important change that he made?


WS - Precisely that he changed completely the products, which were then exactly in line with the demand of the international markets.

JH - When did the idea come about to create the museums?


WS - The date of foundation of GP is 1791 and we have been constantly active since then, so the history is authentic.  When we started to think about the celebrations of the bicentenary, I thought it logical to show this history to the public, through watches we have been patiently collecting over the years.

JH - In the past year, your museum has gone on a world tour - what was that like?

WS - A very rich, but also scary experience : imagine that all the most precious watches of the Museum were on tour, without exception, and that anything could have happened. What is almost incredible is that we needed 15 tons of material to display them properly…

JH - What was your favorite "stop" during the world tour?

WS - With cities as different as Singapore, Shanghai, Paris or New-York, you cannot really put it this way.  Each time, the exhibition was much appreciated, with many visitors, but for reasons that were never the same.  I liked Shanghai quite a lot, but maybe because it was my first time there.

JH - What is a typical day in the life of Will Schweizer?

WS - I like to start early, like 07.30. First I read my emails and reply immediately to those which do not need a research. I am in charge of the factory tours, which start either at 09.00 or 14.00. the rest of the time is dedicated to meetings, preparation of texts or of exhibitions, research, monitoring of auctions or sales in order to complete the collections of the Museum. And there are the days when I travel.

JH - You have often said that if you wrote a book about Girard-Perregaux or La Chaux-de-Fonds, you would actually have to write 2 books. What do you mean by that?

WS - There is what is politically correct and there is the reality, which often do not superimpose exactly.  So, let us say that the first book would be as close as possible to the reality and the second would tell what happened exactly.

JH - So what is one story or event that the general public might not be aware of that would appear in the "second book"?

WS - It is a bit too early to unveil one.  Everybody knows that the shortest way between 2 points is the straight line, but very often things do not happen so ideally.

JH - What is your favorite Girard-Perregaux watch? And for Jean Richard?

Courtesy of JeanRichard

WS - The Tourbillon with three gold Bridges in its skeleton, selwinding version for GP and the Diverscope LPR for JR.

JH - Who else out there is making watches that interest you?

WS - I don’t have a preference. For me, anybody making an innovative and interesting watch works in the right direction and deserves respect.

JH - What is the Swiss watch industry doing right?

WS - To keep on working like above. That is what our public expects from us.


JH - Where can the Swiss watch industry improve?

WS - Maybe less opportunism and more morality. I was shocked when I heard that Switzerland exported watches to Syria last May, for a value of 8 million of Swiss Francs.

JH - If you weren't doing this, what do you think you might be doing?

WS - Good question ! I promise i’ll start to think about it : after all, in theory, I shall be retired in less than 9 years…



JH - What advice do you have for aspiring horological historians and curators?

WS - No doubt that the interest for watchmaking has been tremendously growing these last 20 years, in every respect, and history is part of it.  Not every brand has a history like GP.  However, quite a number of brands have the legitimacy to tell stories : Look at JeanRichard, whose history is incomplete, but where I created a museum of watchmaking machines and tools which is unique in the world.  A Museum will never be a profit center, but can be a tremendous communication tool : all brands which are concerned should consider it under this angle.  So there is still a lot of work and space for all those who have ideas.

A Grand Day Out - Conclusion - It's not about the watch

My last stop at GP/JR was the area where the high complications are created and nurtured along. I must confess that I was hesitant to take too many distracting photos owing to the intense level of work going on!

Most of us will struggle through our professional lives to some extent (what we at least think) of as"averageness".  And I am sure that this is true in any profession.  And it is safe to say that in the watchmaking industry, there are folks who view it as a job - if not this one, perhaps another industry.  

But this is not the feeling that you have when visiting GP/JR and it is most certainly not you impression when speaking with the folks there.  There is a real feeling, a true sense of connectedness.  I have heard similar statements made about Brunello Cucinelli.  

Anyone can make a watch, many people can make a great watch, and only a handful of them can make an exceptional one.  But that does not make them exceptional people, or the company that's name adorns it exceptional.  When I first started doing PR for DOXA, I got to meet a lot of folks - some famous, some   I'd followed closely, one a childhood idol.  And I can tell you that it is often not so great to meet these folks, they can never live up to the high levels you have set.  Since I started this blog, and launched Chronometers, I have had a similar experience with the famous companies I had idolized.  People who are in PUBLIC RELATIONS who want nothing to do with the public, people in SALES who could care less whether you bought or not.  People in SERVICE who truly need a refresher course on what that word really means.  People who go about their job with a firm acceptance of "averageness".  

And this is why Girard-Perregaux/JEANRICHARD is IMPORTANT, is SPECIAL - is EXCEPTIONAL!  It's the people!  They GET IT, THEY CARE - THEY REFUSE TO BE AVERAGE!  You don't just see it, you feel it, you sense it, it permeates the place.  Now granted, maybe everyone was on their "best behavior", but that would have been a remarkable display of orchestrated discipline for a humble writer like myself.

And coming back from the tour, on our way to lunch, Dimitra, Xavier and Willy had another surprise for me.  My humble "Portuguese-cased, re-dialed" Girard-Perregaux had enjoyed a bit of a "spa" visit -

A nice clear crystal...

A new strap, and buckle -

And a new crown -

The perfect end to the perfect morning.

I would like to close this by sharing what I wrote on the TimeZone forum:  

This is from a conversation on TimeZone -
What does 221 years of Girard-Perregaux mean to you? Mar 22, 2012 - 12:55 PM

I suspect that you could ask 10 people and get 10 different answers. I think that Girard-Perregaux (and for that matter, JeanRichard) is a brand that is deeper than just the "label". Consider this - brands are born, hum along, peter out, die - and sometimes are brought back to life. It is not "the brand" that does all of this by itself - it is the people behind the brand. Yes, there are a lot of beautiful, creative and innovative watches out there - but for the most part, a watch cannot sit up and tell you its history, cannot engage with you on a deeper level without the benefit of some shared experience. Again, this comes back to people. And yes, Girard-Perregaux is rich in history, technology, and innovation. But perhaps one of its most valuable resources is its people.  And this message that people - and customers are important is something you sense at EVERY LEVEL of the organization. I REALLY want to get a NEW Girard-Perregaux or JeanRichard now - not just because the watch is nice (which it most certainly is), but because of the people behind/in front of the brand are as fantastic as they are.

Yes, I am a little biased, I did get to peek (behind the curtain), but ultimately, aren't we all looking for that connection? Without that, a watch is just an object.

For those of you who go to BaselWorld, think on this - how many times do you get a cold impression - or downright indifference from a watch company or their representative? Here's the thing, Girard-Perregaux and all of these other wonderful, historic firms are in the PEOPLE business - it just so happens that their specialization within the people business is watches. Girard-Perregaux/JeanRichard actually get and understand that, and it is evident in everything that they do.

So there you have it!  

A Grand Day Out - part 3

So I believe we were talking about watches!  These are for some very special people - you'll have to read to the end to find out who they are going to.

Willy continued to lead me through the various stages of production and assembly.  As he said again and again - "our grandfathers don't work here".  What was truly astonishing to me was the sheer volume of production performed at such an exacting level of quality.  At every step of the way, there are MULTIPLE quality control checks.  If any part of the watch doesn't meet the exacting specifications?  Back it goes until it does!

But I would have to agree emphatically, that all of that attention to detail is worth it!  There are a lot of "haute/luxury" watch brands out there, and sometimes it is difficult to understand why they cost what they do.  As Gertrude Stein once said about Oakland - "There's no 'there' there".  Not so with Girard-Perregaux - having seen the amount of work, care and attention that goes into every Girard-Perregaux and JeanRichard - I can assure you that you get even more than what you pay for!

By the way - this is my ALL-TIME dream watch!  I am proud to say that one of these did not find its way into my bag!  The temptation, I can assure you, was strong!  So I will need to start the GP Vintage 1945 fund!

And this one is timeless.  This is not a fad, it is not of the moment - it is of EVERY moment.  This is a watch that will be passed from father to son.

And JeanRichard really is a manufacture brand!  It is easy to discount JeanRichard as a poor relation - but this is really not so.  This is obvious in walking through the manufacture - there is not a "B" team or a JR/GP division of labor or know-how.  Both fantastic brands are worked on by the "A" team.

And those chronographs at the beginning of today's installment?  They are 30 year service awards for a certain transportation manufacturer in Turin.  Let's see... I'm 43 now, maybe I could still squeeze 30 years in...

More to come - including a history lesson from the Professor himself,  Willy Schweizer.