Watches
|
|
|
Swiss shows thrive as industry adapts to economy
June 12, 2008
Basel, Switzerland—America's economy may be in a lull, and the price of precious metals may hover at historic highs, but watch brands still drew in record-breaking crowds at the Swiss shows in mid April.
Specifically, visitor turnout at this year's BaselWorld increased 5 percent to 106,800, with a slight drop in the number of American and Chinese visitors. Brands at the Salon International de la Haute Horlogerie (SIHH), held in Geneva, lured buyers too, welcoming close to 14,000 visitors from around the world, 8 percent more than in 2007.
The U.S. sub-prime mortgage crisis did not have as great an impact on buying as feared, with strong demand from emerging countries such as China, India and those in Eastern Europe possibly compensating for the potential slowdown in exports to the United States, said Francois Thiebaud, president of the BaselWorld Swiss Exhibitors Committee, of the post-show results.
And the strength of Swiss watch exports is evident in the increasing numbers, which rose to about $15.75 billion (16 billion Swiss francs) last year, as well as the sheer level of offerings at shows such as BaselWorld and SIHH. Some 2,100 exhibitors showed off their latest products at BaselWorld alone.
Darker hues, jewelry watches Top trends at both shows included timepieces bedecked with black diamonds, rose gold timepieces paired with black and brown straps, mixed metals, multiple time zones, brightly colored dials and bands, architecturally inspired designs and jewelry-style watches for both men and women.
Amanda Gizzi, associate director for public relations at the Jewelry Information Center, says common themes at the show in both jewelry and watches included a lot of warm metals, such as rose gold, along with mother-of-pearl and champagne diamond accents.
Gizzi saw extremes as another trend, with non-expensive materials such as rubber being paired with platinum and gold. For watches, she also repeatedly observed automobile themes and the use of black carbon and skeleton faces.
Nicolas Bos, creative director of Van Cleef and Arpels, emphasized the brand's timepieces as possessing "poetic complications," injecting a sense of identity into watches and transforming them into jewels. One example is the brand's "Fairy Watch," which features on its face a fairy with a wand pointing to the time, a technique designed to tell a story.
"There's nothing more magic than a fairy telling time," Bos said.
But even with such innovations, no amount of design magic can eliminate some obstacles, including the turbulent U.S. economy and rising price of metals.
Still, many brands reported their sales are holding steady as they've adapted to the times.
Jerry Batt, North American president of watch brand N.O.A., said his company has select distribution, with its biggest export markets being the United States and Asia. Batt said the U.S. market is "pretty good," and if one door isn't doing as well, it tends to be the store's own issue.
 | | "Secret Duo Watch Caresse d'Eole" in white gold with blue enamel and diamond case on a black satin strap by Van Cleef and Arpels; suggested retail price is $83,000. Vancleef-arpels.com |
"We know where we are going and what will be good for us," he said, adding that the brand just stays disciplined in its focus.
Paul O'Neil, public relations and events manager at Wyler Geneve, said the brand's North American market is growing, and he believes the biggest obstacle is the weakness of the American economy versus the rising price of gold.
Ronnie Bernheim, president of Mondaine, described business as "great" at the Basel show. The American market accounts for 15 percent of the Swiss brand's exports, and while it is a big market, he says that the current downturn isn't going to kill business.
To deal with the U.S. economy, he said, one has to adapt, and Mondaine will be raising its prices for the Americans, given the weakness of the dollar against the Swiss franc.
"It's not a good moment to do it, but we have to make money," Bernheim said. "Everyone will have to go up or they will go out of business."
The top trends for Mondaine include rose gold and larger watches.
Scott Wolfe, president of Callanen International (a company managing brands such as Marc Ecko and Nautica), said the weak U.S. dollar helped Nautica's international exports, but he still anticipates the possibility of tougher third and fourth quarters.
For Corum, which creates many of its watches in 18-karat red gold, rising precious metal prices have become a growing concern, with the big question being whether or not to hike the brand's prices to make up for the material costs.
"We're trying to absorb it for the moment," said Corum USA President Michael Wunderman. "We don't think our customers can absorb it."
The brand's average price point has nonetheless risen from about $6,000 in 2005 to $14,000 in 2007, and the focus is shifting toward higher-end timepieces, targeting more affluent consumers.
"With the economy teetering, the high end is where people are going to be," Wunderman said.
The trend for the company has been selling more watches at higher price points, he added.
Even Seiko, known for watches on the lower end of the price-point spectrum, introduced a high-end watch at BaselWorld: The brand's "Spring Drive Spacewalk," a $25,000 timepiece that will be worn by space tourist Richard Garriott when he visits the International Space Station this fall.
Editor's note: For a review of the latest design trends and price points in watches, download Time is money. These stories first appeared in the May 16, 2008, edition of National Jeweler.
|
|
More Watches
Luxury goods giant Richemont saw its sales decrease by 15 percent for the six-month period ended Sept. 30, with a decline in U.S. sales and revenues at its jewelry houses and luxury watch brands contributing to the downturn. Read More
|
Small multi video player located on right rail of NJN site
|
Save
E-mail
Print
Most Popular
RSS
Reprints
