The Rise, Fall, Rise, Fall, Rise and Fall Again of Daniel Jean Richard

Or is that Jean Richard, no wait - JEANRICHARD!  Like many out there, I continue to scratch my head when it comes to the strategy cooked up by the (former) twin houses of the Sowind Group.  Unsubstantiated reports are that on the first day of this year's BaselWorld there were one or two boxes of JEANRICHARD watches, and that edicts were issued from far up the food chain, and those same boxes disappeared overnight and were never spoken of again.  A lot has changed in just over three years.

Looking back, there was about a 14 month period where JEANRICHARD was an exciting, vibrant, engaging brand.  Great products for the money.  And it finally made sense.  A modular case that could be used for three different models - diver, chronograph, standard (or aqua, aero, terra).  It was scalable.

But as is often the case with JEANRICHARD (and if we're being fair, Girard-Perregaux), somebody got the fidgets.  They just couldn't sit still.  "We need gold pieces!  Oh, and manufacture movements!  Oh, and we need BIG TIME celebrities and partnerships that everyone will identify with - like... a circus performer, no, wait!  Tightrope walker!  Yeah!"  And my suspicion is that marketing pitches for these partnerships might possibly have been accompanied with some lubrication from the absinthe family, because some of them made no sense at all.  The Arsenal Football Club partnership was perhaps the one big-time opportunity. This was on a par with a Biver-esqe, take no prisoners and make no apologies partnership.  And in the beginning it was lauded as a triumph, but about a year later it would amount to Arsenal branded JEANRICHARDs being dumped into the grey market, along with every other limited series that had been produced.  Thus underscoring that, in fact, there was virtually no limit to the number of limited editions!

Things groaned, sputtered and began to grind.  Top management left.  Two years after their triumphant debut at BaselWorld, what had been an equal presence for Girard-Perregaux and JEANRICHARD had been halved to simply a Girard-Perregaux booth with a broom closet sized room for JEANRICHARD to attempt to show watches, and maybe sell something.  It literally resembled the stock room of a Wall Mart where all of the damaged/returned products get dumped.  It was sad to say the least.  But there was one more card to play, and that was to totally remove JEANRICHARD from the booth this year.  Budget concerns were cited.
But just as cutting off the food and oxygen supply will kill life, cutting of marketing, sales, etc. will kill a brand.

It would, seemingly, make more sense to simply try to sell-off JEANRICHARD or to close it down completely, rip off the band aid and move on.  But perhaps the answer is in between these two spaces - a bit of a dormancy like Wonka's factory.  Nobody goes in, nobody goes out.  Hopefully one fine spring day a few years from now, a dynamic, charismatic character will fling open the doors to the factory welcoming all who have a golden ticket and the sky will be the limit!

Yeah, I don't see that happening either...

A Few Minutes with Mike Margolis - President of America for the Sowind Group

It was a real pleasure to have an opportunity to interview Mike Margolis following his appointment at Girard-Perregaux/Jean Richard (also known as the Sowind Group) as the President of their American operations.

And now - a few minutes with Mike Margolis -

Courtesy of Girard-Perregaux

James Henderson:  What was your first watch?  Was it a gift, is there a story behind it?

Mike Margolis:  The first watch I remember having was in about 1974, it was one of the red letter LED’s that had just come out. The Pulsar’s were so expensive, I couldn’t afford one at age 14, so I had a generic one instead. When it died, my father gave me his SS Omega Seamaster Automatic. I wound it up, put it to my ear, and began a lifelong love of mechanical watches.

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

MM:  I never had aspirations to anything in particular.

JH:  Where did you go to school, what did you study exactly?

MM:  University of Connecticut, BA in Latin American Studies and Foreign Languages, then some postgrad work at the Universidade de Lisboa in Portugal.

JH:  In some ways you seem to have a bit more of a background suited for an academic, or even some sort of governmental career, what are some of the things you did prior to entering the watch industry?

MM:  I was a union carpenter, a lifeguard, an English teacher at a Berlitz School in Dusseldorf Germany, then began a career in the high-tech world.  My last job was 9 years with Magellan GPS.

JH:  What got you started in the watch industry?

MM:  In about 1997 I found watchnet.com and then timezone.com.  Before that, I thought I was the only person in the world who liked watches.  So I started hanging around TZ and very early became the moderator of the Blancpain forum, then also IWC and Vacheron.  I met Jean-Claude Biver in about 1999 while he was still at Blancpain.  He asked me to host a collector’s dinner in NYC and we became friends from that; and we’d see each other and stay in contact as friends would.  When he started at Hublot in 2004, he connected with me and asked that I would start an Hublot forum on timezone.  We did that in 2005, and that eventually led him to ask me to come work for him full time in 2007.

JH:  Tell us a bit about your time at Hublot, what was it like to participate in the "Fusion Revolution"?

MM:  Wow, what an amazing five years. It was an education in so many ways: I rode the rocket ship up in 07 and 08, then things retracted a bit in 2009, and then we took off again in 2010 and 2011. I will be eternally grateful to Jean-Claude Biver for giving me a chance in the industry.

JH:  Of all of the Hublot projects/partnerships that you were involved with, do any favorites stand out?

MM:  I crewed on a vintage wooden racing yacht at the Yacht Club of Monaco in 2007. Black tie dinner with Albert II Prince of Monaco, stayed at the Hotel Hermitage. For me, that was the best event I’ve ever been to.

Courtesy of Girard-Perregaux

JH:  After a clearly successful time with Hublot, you made the move to join Girard-Perregaux.  Obviously as the head of North America, it is a move up the ladder so to speak.  But beyond the title, what are some of the things that attracted you to Girard-Perregaux?

MM:  So many things: We are a true manufacture, and have been continuously since 1791. I am at heart a very traditional person and I love the classical nature of our product. Our Haute Horlogerie department is to die for: tourbillons galore, minute repeaters, perpetual calendars, etc...

JH:  What are some of the differences between a company like Hublot, and Girard-Perregaux? 

MM:  Obviously, Hublot loves the new materials and cutting edge technology. Ceramic, carbon fiber, bead blasted platinum, all de rigeur. Girard-Perregaux is more traditional, building and finishing movements by hand and casing them in steel and precious metals. Neither is better or worse, just different.

JH:  What do you see as Girard-Perregaux's greatest challenges here in North America?

MM:  We are a spectacular 220 year old brand who has been asleep. It is my challenge to wake it up!

JH:  How do you see JeanRichard developing?

MM:  2013 will be a great year for JeanRichard. There will be new models, a new advertising campaign, an entire new push to re-establish the brand. I am quite excited as I’ve seen the prototypes!

JH:  Although it might be hard to choose, do you have a favorite GP and JR model?

MM:  For G-P, I am wearing a 1966 triple date moon phase in platinum, a small limited edition of 100 pieces. Past that, I can only fantasize about the new 1945 triple bridge tourbillon with grey dial. Wow.

For JeanRichard, as I answer this I am wearing a blue Aquascope; my summer watch for the pool, ocean and bicycle.

JH:  What would you be doing if you weren't doing this?

MM:  I have a huge passion for antiques and decorative arts. When I retire, I’d love to have an antique shop in Maine.

JH:  What do you like to do in your down time?

MM:  With four teenage kids, I don’t know what downtime is! Seriously, I love classical music, museums, travel and food. We live in a house from the 1760’s, so there’s always a project going on.

JH:  You have, in many ways, lived the dream of many watch fans - going from a watch collector and forum participant to the North American head of one of the world's most famous brands.  What advice do you have for those out there who might wish to follow in your footsteps?

MM:  I get asked this all the time, and always say the same thing: The watch industry is quite inbred, and it’s really hard for an outsider to find their way in. The best way I’ve seen is to take your gifts and talents, and offer them to your favorite brand at no charge. Show them what you can do for them, work your butt off asking nothing in return but for the love of being involved, and maybe you’ll be lucky enough to find yourself with a job offer.

A Grand Day Out - Part 5

So what does it take to work for Girard-Perregaux?  Willy gave me a good idea about this after visiting the first display room.

Inside the JeanRichard museum, there is a training center.  And this is not just any sort of training center, this is the place where all new Girard-Perregaux/JeanRichard team members "cut their teeth"before joining the team.  I asked Willy if this was just new watch makers, and he assured me that no, in fact all of the GP/JR team spend a few days "at the bench".  I was a bit befuddled by this, so he explained - and again I am going from memory - "how can we expect sales and marketing people to talk about our watches if they don't understand how they are made?"

Thanks to a right hand bent and warped from a cycling accident, I strongly suspect I will never be sitting in one of these hallowed seats.  And the setting is just beyond belief.  Clean, airy and... perfect.  And while I realize that it is a training center/workshop - it is in such a wonderfully beautiful space.  For lack of a better right "paw"I'd be in there.  I asked Willy how Dimitra from Public Relations did - and apparently she passed with flying colors!   This is a state of the art training center - the computer age meeting the hand-crafts.

This is truly the "Dream Factory".  

One more entry - stay tuned!

A Few Minutes with Massimo Macaluso

And now, a few minutes with Massimo Macaluso -

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

Massimo Macaluso - Growing-up in the watch industry, it had to be a gift. My first watch was actually a Girard-Perregaux 7000. It was the first chronograph designed by my father for Girard-Perregaux.

JH -  I think it is safe to say that watches are in the Macaluso DNA, what are some memories you have of growing up with such a notable figure as a father?

MM - This would be a long story to tell… as far as I remember I have always been surrounded by watches. For instance, when I was a kid I was doing my homework in the evening at my father’s office, in contact with watches. Specifically, I remember him showing me drawing or drafts of new models… it was really the part of his job that was driving him.

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

MM - I was dreaming of becoming a soccer player. I still have a passion for soccer.

JH -   Where did you go to school, what did you study?

MM - I have studied economics in Torino.

JH -  Growing up in the watch industry many people would think that you had always planned of joining the family business - but maybe you thought/dreamed of doing something else?

MM - As I said earlier, I literally grew up with watches.  Then, I have also been influenced by other family passions… soccer or motor sports. And boys dream probably more easily of becoming a soccer player or a race car driver than running a business.

JH -  I remember a few years ago there was a JEANRICHARD Juventus watch.  I assume that you are still a Juve supporter?

MM - I am still a supporter de la ‘vecchia signora’. A passionate and loyal one, I must say. I support the team in good and bad times.

JH -  For me it was Michel Platini - who was your favorite to wear the black and white?

MM - Alessandro Del Piero is ‘my’ period.  A great striker and at the same time a really creative player. He has been playing with the Juventus for nearly 20 years now…

JH -  Let's talk about JEANRICHARD - how do you see things developing this year and next?

MM - We have invested a lot in JEANRICHARD in the areas of product design, movement development and manufacturing.  Our offerings today are unique: we create in-house manufactured timepieces (cases and movements) with a really modern and innovative mindset.  Today, all movements for JEANRICHARD are manufactured in-house.  I believe we have really interesting offerings.  We have just been awarded sport watch of the year in Japan with the Aquascope for instance. And we will reveal some new interesting watches in next SIHH.

One of our main focuses for the next months will also be the distribution.  We have just set up a subsidiary in Hong-Kong among other projects.  The team there operates our business over China and South East Asia with really promising achievements…

JH - You and your brother Stefano are now by tragic necessity at the helm of the Sowind group.  How are things progressing for 2011?

MM - We had been working with our father and involved in the management of the Sowind Group for over 10 years.  Our plan is to perpetuate the entrepreneurial vision and spirit with a desire of continuity relying on our strong assets: a unique savoir-faire in the field of Haute Horlogerie, a priceless heritage, a magnificent design, technical and manufacturing culture and a unique movement portfolio.  We have a very clear project in terms of industrial policy, product creation and distribution of our brands.

2011 is an important date for Girard-Perregaux who will celebrate its 220th anniversary.  The worst of the crisis seems behind us know.  Specifically, the demand from certain regions is extremely strong. Supply and production are again strategic issues.

JH - Both Girard Perregaux and Jean Richard have strong ties to motor sports - is this something that will continue in the future?

MM - Our attention has been and will be focused mainly on our watchmaking expertise, on our products. Then, motor sport is part of our family DNA; It is difficult not to be true to this…

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

MM - I am very attentive to the work of other watchmakers… It is hard for me to name brands... But some products come to my mind.  For example, the Monaco from Tag Heuer, the Omega Speedmaster, the most simple expressions from the Jaeger-Lecoultre Reverso or the original Audemars Piguet Royal Oak are definitely emblematic watches to me.

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

MM - I believe it is really a privilege to work in the watch business.  Specifically as an entrepreneur and running a family business.  Watches are a passion and we have had the chance to shape our Brands, design our watches the way we see as right.  Plus the challenges are great and need action!

I think if I was not doing this, I would like to be involved in activities where you also make products with a high emotional dimension. For instance, making wine must be really interesting.

JH - What do you like to do in your down time?

MM - I have always had a passion for travelling.  I like to discover and explore new places, new cultures.  By chance I do it for business, but also for my down time, if possible with my wife and my young boy.

www.girard-perregaux.ch

http://jeanrichard.com