A new frontier for big brands

WATCHES& JEWELLERYFINANCIAL TIMES SPECIAL REPORT | Saturday November 12 2011

Big boys’ toysMotoring events are oftenlinked to horology. But

the Carrera PanAmericaroad race is

something else.Simon de BurtonreportsPage 8

In Paris, at 23 PlaceVendôme next year, LouisVuitton will open the firstboutique dedicated to its

fine jewellery. It is a significantmove for the industry.

At 150 sq m, one window willlook on to the fine jewellery hubthat is Place Vendôme, andanother four windows on to theRue de la Paix. Inside, custom-ers will be able to shop andwatch: alongside the salesassistants there will be artisansat work fashioning the house’sintricate, costly pieces.

Should there be any doubt asto the scale of its intentions,Yves Carcelle, Louis Vuittonchief executive, has beenreported by local media as say-ing the opening of the fine jew-ellery store will be “as funda-mental a step for our jewellerycollection as our workshop atAsnières was for our trunks in1859 or as our workshop inFiesso d’Artico in Italy was forour shoes in 2000”.

As is usual with Louis Vuit-ton, a decision by the world’smost successful luxury brand tomake a decisive step into a newmarket is a signal of shifts inthe industry.

The jewellery sector, with itsfragmented distribution systemand the prominence of “momand pop” manufacturers insome of the biggest markets inIndia, China and Russia, hasbeen a poor cousin to high-endwatches, where a few big brands

hold sway. But expectations arethat jewellery’s switch from apredominantly craft market to anew frontier for big brands isunder way.

In a report published thisyear, Bernstein Research ana-lysts predicted a “wave of acces-sible and aspirational demand”and a cultural shift from non-

branded jewellery to brandedwould crack open the marketover the next few years.

It estimated the jewellerymarket in its broadest sense isworth €136bn across all pricepoints – mass market, aspira-tional luxury and high end, andboth branded and non-brandedretail.

Compared with other sectors,jewellery is underpenetrated bybrands, which account for just12 per cent of the overall marketcompared with 50 per cent ofthe watches market and 80 percent of perfumes.

What is more, only 5 per centof the market, or €7bn, is in thehands of the big brands such as

Cartier, Bulgari, Van Cleef andGraff.

Adding their voice in a recentnote, HSBC analysts ErwanRambourg, Lina Yan and Cathe-rine Chao argue that in China –today’s powerhouse of the lux-ury goods industry – jewellerysales will outpace sales ofwatches as Chinese women

overtake Chinese men as thedominant consumers.

Among the luxury goodsbrands, Louis Vuitton is notalone. Chanel’s fine jewelleryeven includes a bridal collec-tion, while campaigns forautumn/winter, from Ralph

A new frontier for big brandsThe jewellery sectorhas always been apoor cousin tohighend watches.That might all beabout to change, saysRachel Sanderson

Inside this issueMovementwars Rollup for whatmay be acriticalround ofthe Swatchruckus.Haig Simonian Page 2

Obituaries Simon deBurton and NicholasFoulkes lament the lossof George Daniels andGerald Genta Page 5

Security of supplyProminent brands havestarted buying specialistsuppliers Page 6

Consumers Lessons ofbehavioural economics arebeing applied to the luxuryworld. Claire Adler reports,Page 9

Limited editionsExclusivity keeps thehighend watch industry inthe black, says Jim Shi0

GenevaauctionsThe RolexSubmariner,designed forthe JamesBond filmLive andLet Die, isup for salePage 11

Generationgame Why shouldn’t a malemarketing strategy work forwomen, asks Avril GroomPage 13

Remakes Bringing vintageback into vogue Page 16

Queen’sjubileeWelcome tonext year’sbig show atBuckinghamPalacePage 19

Continued on Page 2

Gorgeous in green: expectations are that jewellery’s switch from a predominantly craft market to a new frontier for big brands is under way Getty

www.ft.com/watchesjewellerynovember2011| twitter.com/ftreports

2 ★ FINANCIAL TIMES SATURDAY NOVEMBER 12 2011

Watches & Jewellery

The battle for thefuture of Swisswatch movementshas reached a new

and critical round.In a few weeks, and possi-

bly as early as you readthis, three judges at Swit-zerland’s Federal Adminis-trative Court will decidewhether Swatch Groupshould be allowed to slashsupplies of movements andregulating mechanismsnext year.

The issue is crucial.Swatch’s ETA subsidiarysells movements not just tobrands within the group,but also to dozens of others,including giants such asRolex. Even stronger is thestranglehold of Nivarox,another subsidiary, whichvirtually monopolises pro-duction of vital hairspringsand other regulating mech-anisms.

The ruckus started inJune, when Switzerland’sCompetition Commission(ComCo) said Swatch couldfrom next year cut move-ment supplies to 85 per centof 2010 levels, and, in thecase of regulating mecha-nisms, to 95 per cent.

The decision was part of abroader investigation intoSwatch’s market position insuch components, initiatedat the group’s behest, andrecalling a similar exercisea decade ago, when Swatchannounced plans to termi-nate supplies of movementkits to third parties.

Then, the companyargued that selling looseparts made it hard to tracksupplies and helped coun-terfeiters. It also reasoned

reducing kit supplies wouldencourage other watchbrands to invest in manu-facturing, to the good of theentire Swiss watch indus-try. ComCo was sympa-thetic to its pleas: after alengthy investigation,Swatch was given the greenlight, based on a multiyearphase out ending last year.

Emotions this time arerunning even higher. Somewatch and movement mak-ers claim a cut in finishedmovement supplies will sti-fle competition and kill offsome brands.

Most vocal has been Sell-ita, Switzerland’s second-biggest movement makerafter ETA. The companyeach year buys hundreds ofthousands of movementsfrom ETA that it then cus-tomises and sells to thirdparties, as well as produc-ing “cloned” off patent ETAmovements of its own.

Sellita is incensedbecause a little noticedclause in ComCo’s rulingallowed Swatch to axe salesto other movement makersby 30 per cent – double thereduction applied to manu-facturers of finishedwatches.

Sellita, like 10 others,turned to the FederalAdministrative Court to

contest ComCo’s decisionand have it permanentlyrescinded. They also askedthe court to freeze the moveimmediately, pending thejudges’ final decision.

ComCo was unmoved.“We were confident weknew what we were doing,”says Patrik Ducrey,ComCo’s deputy directorand the man leading theinvestigation.

On September 6, the courtruled ComCo’s “interimmeasure” – allowingSwatch to reduce suppliesnext year – could standwhile the underlying caseremained under considera-tion. “The final decision isexpected before year end,”says Joanne Siegenthaler,court spokesperson.

In recent weeks, lawyersfor the various parties havebeen submitting additionalevidence and responding torequests, based on variouscourt deadlines.

Further details are scant.Even the names of theplaintiffs are secret, withSellita the only one to havecome out into the open.This month, the courttold the Financial Timesthe number of plaintiffs hadfallen to eight, after somewithdrawals. Sellita andSwatch declined requests

for further comment.By contrast, ComCo has

been forthright. Mr Ducreysays his agency is funda-mentally sympathetic to theargument that Swatchshould not be obliged tosupply all comers andshould be able to select itscustomers.

One crucial factor – as inthe previous investigationinto movement kits – is theargument that reducingETA and Nivarox supplies

should encourage others toinvest in making movementand regulating mechanisms,whether third party manu-facturers or watch brands.

That trend was initiatedby ComCo’s ruling on kits,but arguably was not effec-tive enough. Nick Hayek,Swatch’s chief executive,likens his company to a“supermarket”, where oth-ers demand ever highersupplies – requiring biginvestments by Swatch – in

the good times, and thencancel orders overnightwhen times turn hard, as in2009.

ComCo hints its eventualruling may allow Swatch toterminate supplies, but, aswith kits a decade earlier,only very gradually overmany years, giving custom-ers enough time to findalternative sources or buildtheir own facilities.

But before ComCodecides, the Federal Admin-istrative Court will rule onits initial step for 2012. Andhere, the Financial Timeshas learnt of crucial evi-dence that may seriouslyinfluence the decision.

Research into Swiss cus-toms data shows movementmakers in the past decadeexported 800,000–1.2m unitsa year: the overwhelmingbulk going to China.

Of the total, ETA’s sharedeclined steadily from apeak of just under one-thirdin 2002 to less than 10 percent this year. In the case ofChina, the reduction waseven more striking: ETA’ssales this year amounted tojust 17,000 units – meaningalmost 900,000 other move-ments have been sold byother Swiss sources.

Intriguingly, the dataraises the question of whatwas being done with allthose movements in China.

But more immediatelyrelevant to the court, andComCo, is that there wouldappear to be no shortage ofmovement manufacturingcapacity in Switzerlandbeyond ETA – contradictingthe plaintiffs’ claim that thelatter’s quasi monopoly rolemeans it should be obligedto sell to all comers.

Only the court will beable to decide. And eventhen, the disappointed sidewould launch an appeal toSwitzerland’s Federal court,the highest tribunal. Withso many complications, thestory is by no means over.

Swatch hopes to call timeon supply of componentsMovement warSwiss industry isfocused on outcomeof court battle, saysHaig Simonian

Switzerland’s most prestigious movement makersMovement maker (owner)

Lemania (Swatch Group)

Frédérick Piguet (Swatch Group)

Vaucher (Sandoz Foundation)

Renaud & Papi

Precision Engineering* (independent)

Main brands supplied

Breguet

Blancpain

Parmigiani (also supplies Hermès,Richard Mille)

Audemars Piguet (majority owner),Richard Mille

H Moser

Watchmakersclaim a cut infinished movementsupplies will stiflecompetition

* So far just regulating mechanisms; movements to follow from 2012

Movement matters: with so many complications, the story is by no means over

Lauren and Tod’s, andResort 2012 collections fromPrada and Miu Miu, show“jewels”.

Andrea Morante, chiefexecutive of Pomellato,Europe’s fifth largest jewel-lery retailer that is behindthe cult rings Nudo andM’ama non M’ama, says itis now accepted in theindustry that it will “take avery small switch fromnon-branded jewelleryto branded jewellery toincrease volumes dramati-cally”.

“This is the number onereason why there is somuch interest in well-estab-lished jewellery brands. Theanticipation within theindustry is that the switchfrom non-branded tobranded will be more visi-ble within the next three tofive years,” he says.

Because of the expectedswell in demand forbranded luxury jewellery,Mr Morante, a former Gucciexecutive and Credit Suissebanker, believes the entryinto the market of LouisVuitton and Prada withtheir big advertising budg-ets will help raise the pro-file of the sector as a whole,rather than present athreat.

Pomellato, which makes60 per cent of its salesthrough wholesale, recentlyopened its first Londonstore on Sloane Square ofits younger Dodo line.

It already has stores inBeijing. “It takes time for abrand to be fully acceptedand trusted in any part ofthe jewellery sector, includ-ing in emerging markets. Ittook Pomellato a while tobe accepted in Paris butnow our Paris store is ourmost successful store,” hesays.

“There is a legiti-mate questionof whysomeonein Chinaa n dI n d i awho has

never heard of a specificbrand will be incentivisedto go into that store, butthe answer is that it justtakes time. It takes time fora brand to be accepted,understood and tested, andalso to pass the test of serv-icing.”

Nonetheless, not allbrands are equally pre-pared.

In 2009, emerging marketsaccounted for more thanhalf of global jewellerysales, according to Bern-stein data. China, the Mid-dle East, India and Russiamade up 65 per cent of over-all gold demand for the jew-ellery industry in terms ofvolume and value.

Analysts argue it is diffi-cult to imagine large groupssuch as LVMH and PPR canever make a credible chal-lenge to hard luxury lead-ers, such as Richemont,with its star brand Cartier,or Tiffany, without “gamechanging” mergers andacquisitions.

Arguably better placed tocater to the predicted waveof accessible and aspira-tional buyers are emergingpowerhouse branded retailchains, such as Copenha-gen-based Pandora, India’sGitanjali, or Brazilian HStern. H Stern’s Ipanemaheadquarters isreported to be thelargest space forjewellery man-ufacturing inthe world.

The acqui-sition of Bul-gari is con-sidered animportantstep for-ward forLVMH – inthat it

brings on board a brand,and experience in the formof Francesco Trapani, theRoman jeweller’s CEO – butit is not seen as enough.

Mr Trapani told the FTthis year he would be look-ing to add more smallbrands to the newly createdLVMH watches and jewel-lery group: PPR is also keento purchase small brands toput around Boucheron.

Where those acquisitionswill come is unclear. Manyfamily owned brands that

are obvious targets say theywant to remain independ-ent.

Tiffany is the prime catchfor LVMH or PPR in theeyes of many dealmakers,and the recent rupture of a20-year joint venture withSwatch puts Tiffany morereadily into play. But itremains expensive on cur-rent market valuations.

Global economicvolatility and

the eurozonecrisis, indi-c a t e sthat thej e w e l -lery sec-tor –w h i c htends too u t p e r -

form onthe upside

and under-perform onthe downside

– could

face difficulties in the shortterm that may ease stockprices.

However, there are signsthat consumers are continu-ing to buy, regardless ofeconomic conditions. Altag-amma, the Italian luxurygoods lobby, in a report thismonth insisted it sawgrowth of 10 per cent forthe hard luxury pairing ofwatches and jewellery for2012, better than other sec-tors.

Moreover, out of the UShas come an intriguinganalysis this month fromIBM that suggests one ofthe brightest areas for USretail stores this holidayseason will be jewellery.

According to the forecast,sales of jewellery in the US,the world’s biggest market,are predicted to reach$2.659bn this month, a 7.7per cent increase overNovember 2010. In Decem-ber, sales of jewellery arepredicted to rise to $5.458bn,a 4 per cent increase overDecember 2010.

The forecast, fromMichael Haydock, IBMretail analytics chief, alsoshows signs that in 2011jewellery might be consid-ered as a safe haven forconsumers.

Sales have increased inline with increases in theCBOE Volatility Index(VIX) – otherwise known asthe “Fear Index” – whichmeasures the volatility ofthe S&P 500 stock index.

“This correlation – jewel-lery sales rising twomonths after big stock mar-ket swings – is highly unu-sual and bears watching,”Mr Haydock says.

“It’s a 2011 event. Wehaven’t seen an event withthis strong a correlation inany other years.

“This is more than coinci-dence. My feeling is thatwomen are extending theirwardrobes because of con-

cerns about the econ-omy. Maybe they areseeing jewellery as away of extending theirwardrobe.”

A new frontier for big brandsContinued from Page 1

AndreaMorantesays itwouldtake asmallswitch toraise salesvolumes

‘The entry ofcompanies withbig advertisingbudgets will helpraise profile of thesector as a whole’

FINANCIAL TIMES SATURDAY NOVEMBER 12 2011 ★ 3

Watches & Jewellery

The story goes thatRichard Mille oncemislaid one of hisfeatherlight

watches in a Parisrestaurant.

Distraught at losing a€300,000 timepiece, herushed back, but to notavail.

Only after a chanceencounter with the ownerand a staff grilling did asheepish waiter admit tohaving pocketed it,thinking, wrongly, thewatch was some plasticthrowaway.

Picking up one of MrMille’s Rafael Nadalwatches, the mistake canalmost be understood.

Rather than having theweight typical of acomplicated watch, or theconspicuous gold orplatinum casing, thelimited edition is dirtybrown colour and feelslighter than a Swatch.

The exterior is actuallyan advanced carbon fibreand the watch itself weighsjust 18gms.

The model developed forthe Spanish tennis star,whose strap is its singleheaviest item and whosemovement weighs just3.8gms, exemplifies MrMille’s watchmakingphilosophy.

His limited edition forthe 125th anniversary ofprestige jewellerBoucheron did the same.

Unlike conventionaljewellery watches, drippingwith externally mountedgems, its worth lies within.

Depending onspecification, crucialinternal moving parts,normally made of metal,are cut from precious andsemi-precious stones.

Since the brand’s debutin 2001, such top levelinnovation has establishedRichard Mille as amongthe most interesting in thebusiness, competing withequally unconventional topprice rivals such as MB&Fand Urwerk or the moreclassic Greubel Forsey, butvisibly distinct from all ofthem.

What marks the watchesout is their distinctivelook, described variouslyas “technical”, “futuristic”or even “architectural”.

Mr Mille, a garrulous 60-year-old Frenchman,attributes the design to hislove from an early age ofall things mechanical.

“I love cars, I loveaircraft. Even today, whenI see a plane, I’mentranced,” he says.

Often, the look of aRichard Mille watch iscompared with a motor carengine, especially the F1thoroughbreds whoseuncompromising use ofhigh-tech materials thewatches mimic.

Mr Mille acknowledgeshis design polarises people.“They either love them orhate them. No one is leftunmoved.” But heemphasises his products’appearance is based onfunctionality, not gimmick.“I always wanted to bedifferent. But I’ve neverbelieved in doing things

just to stand out. Therehas to be a value andfunction. I hate gimmicks.I’ll never use a materialthat has no purpose.”

Taking risks withproducts is part of hisbusiness culture. At theSIHH show in January, hewill reveal his first in-house movement, almostfour years in the making,an automatic that willpower a new model – oneof 10 newcomers to beunveiled.

Sometimes, of course,innovation has its price.Perfecting the Hommage àBoucheron turned into anightmare: the firstwatches appeared only twoyears after the jeweller’sanniversary and the finalpieces are only nowreaching completion.

Such difficulties have notstopped the brand’sgrowth. Output this yearshould be 2,500 pieces, onlyabout the same as 2010,but reflecting what MrMille only half jokinglycalls “some deliveryproblems” because oftechnological challenges.Revenues will be slightlyabove SFr90m. Profitsremain secret.

“But our bankers arequite happy when they seethe figures.”

In spite of success, MrMille is in no rush,suggesting he takes riskswith innovation, notmanagement strategy. “Iknow, with the brandawareness I’ve achieved, Icould launch a morecommercial model andmake 10,000 pieces a year.But I prefer the‘headaches’.”

Output could reach 3,500or even 4,000 pieces in thevery long term, he says.Already, Montres Valgine,with which the Mille brandshares premises, isworking exclusively forRichard Mille.

The relationship betweenthe two companies iscomplex. Mr Mille and hispartner Dominique Guénatare co-owners, along withother, unnamed, parties.Separately, AudemarsPiguet holds 10 per cent ofthe Horometrie holdingcompany behind theRichard Mille brand andits 80 employees.

The relationships dateback to the late 1990s,when Mr Mille, thenapproaching 50, decided tocreate his own brand. “Ithought it was now ornever,” he says.

Although not awatchmaker, he knew thebusiness well, havingbegun in watch marketingand moved on toMauboussin, the upmarketParis jeweller, where helater developed a watchline.

In that period, he got to

know Giulio Papi, one ofSwitzerland’s mostrespected watchmakers, aswell as Mr Guénat.

The former provided

technical expertise for thefirst Mille model, atourbillon; the latter theassembly capacity throughMontres Valgine, his

contract watchmaker.Mr Mille sees no reason

for those relationships tochange. The newmovement will be a

milestone – like thedecision to produce casesinternally, rather thanfrom outside.

But Mr Mille remains

wedded to the traditionalmodel of purchasingimportant parts andmovements from specialistssuch as Vaucher and

A relationship with all things mechanicalCEO interviewRichard MilleHaig Simoniantalks to a verypatient watchmaker

Richard Mille: ‘I hategimmicks. I’ll never use amaterial that has nopurpose’ Martin Ruetschi

In spite of success,Mille is in no rush,suggesting hetakes risks withinnovation, notmanagement

ContributorsRachel SandersonMilan Correspondent

Haig SimonianSwitzerland Correspondent

Elizabeth PatonAssistant Editor, Luxury 360

Nicholas Foulkes,Simon de Burton,Claire Adler, MariaDoulton, Avril Groom,Lucie Greene, Syl Tang,Jim Shi, Timothy BarberFT Contributors

Stephanie GrayCommissioning Editor

Steven BirdDesigner

Andy MearsPicture Editor

For advertising details,contact:Sindy Walker on:+44 (0) 207 873 4208;email: [email protected] your usual FTrepresentative.

All FT Reports are availableon FT.com.Go to:www.ft.com/reportsFollow us on twitter atwww.twitter.com/ftreportsAll editorial content in thissupplement is produced bythe FT.

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Renaud & Papi, ratherthan following the trendtowards verticallyintegrated manufactures.

He is equally sanguineabout the future, in spiteof rising pressure onsmaller brands amidconsolidation.

Succession should not bean issue, given he hasseven children from twomarriages.

Although none of hisoffspring is interested inthe business, “that’s not aproblem”, he says. Forwhile he has receivedperiodic takeoverapproaches, he emphasisesthe brand is not for sale.

“You are a target. But Ithink we’re a little youngstill. We have sufficientcash flow to ensure growthand the means to continuedeveloping,” says Mr Mille.

“I’m acutely aware thatat small companies,overheating is usually thereason for cash flow crises.So above all, we’recautious about expansion.”


Watches & Jewellery

Watches and jewellerysales in Hong Kong haveleapt 37 per cent in thepast year, driven bymainland Chinese andoutpacing all other luxurysales in the Asia Pacificmarket.

China accounts for astaggering 29 per cent ofthe value of Swiss watchexports, a trend that is setto continue as mainlandChina outperforms HongKong in luxury growth.Fine jewellery sales, drivenby China’s increasinglywealthy female population,are starting to catch upwith the watch market.Little wonder then thatevery watch and jewellerybrand executive has said totheir teams: “Go East.”

One of the mostambitious examples isPiaget, the Richemont-owned Swiss fine watchesand jewellery brand. Itstale is a sort of microcosmof the industry.

Piaget, havingrestructured its stores to amore vertical model in thepast 10 years, is planning arollout of three stores ayear in mainland China forthe foreseeable future. Asignificant 4,520 sq ft spaceis being added in HongKong this year.

The brand is marking itsexpansion with acommemorative 24-pieceDragon and Phoenix: ALegend by Piaget, whichwill be unveiled nextmonth with an event atHong Kong’s China Cluband a grand gala celebrity-attended dinner in Beijing.

Piaget, when comparedwith Cartier or Tiffanymonoliths, is relativelyniche but the companyalready has adisproportionately strongpresence in China whereits ultra-slim, oftendiamond encrustedtimepieces are highlypopular.

The brand has been inthe region since the 1960sand has 20 stores in China.Its watches are also sold in30 luxury multi-brandstores.

An industry sourceestimates that two-thirds ofits sales already come fromthe region.

“Piaget is highlyrespected in Hong Kong,”says Erwan Rambourg,

head of consumer andretail, global research, atHSBC in Hong Kong.“There is often a higherperception of the brandthan Cartier.”

Dimitri Goutenmacher,president of Asia Pacificfor Piaget, says itsrecognition in China is abig boost to the brandacross the board.

“It used to be viewed asalmost a weakness to bestrong in Asia, now it’s astrength. We’re feeling theimpact of that brandstrength at all our stores.The Chinese are shoppingat our London and NewYork locations. We’reinvesting in new locationsin across Europe.”

According to NickDebnam, Asia Pacific chairof consumer markets forKPMG, the accountingfirm, many watch brandswith eyes on the Chineseconsumer have alreadystarted – albeit subtly –adapting some of theircollections to echo localtastes.

“Glass-backed watchesthat reveal the innerworkings are verypopular,” he says. Otherlocal tastes include moreornamentation anddiamonds, and removingthe number 4 from the dialwhich is believed to be badluck.

One luxury expertobserved that Piaget’spopularity in China ispartly rooted in catering toAsian style. “For sometime now it’s been seen asvery much an Asian brandand not very visible inEurope.

“The design has becomemore Asian, which couldbe a risk long-term asChinese tastes developmore towards Europeanbrands,” the company says.

“Piaget would rationalisethat there’s a history ofexuberance in its design,but there have beenchanges.”

However, MrGoutenmachersays Piaget hasnot adapted itscollections anddid not plan todo so.

“You have tokeep your roots.We are Swissmanufacturedand this,ultimately, is whythey come to us.The Chinese areshopping withluxuryEuropeanbrandsbecause theyare differentfrom theirs.”He says the Dragon

and Phoenix collection wascommemorative and doesnot signal a shift in design.

Mr Goutenmacher saysstore size is an increasingfactor in prestige amongChinese consumers. “Ourboutiques have grown toshowcase the watches andjewellery collections.

“The average size ofstore in Hong Kong was1,076 sq ft but it is alsogetting bigger and youhave to compete. In HongKong it’s grow or die. InChina it’s also because theprojects themselves arebigger.”

HSBC’s Mr Rambourgsays adaptability in Asianretail is important forsurvival: “The retailenvironment changes veryquickly. You can have astore in what you think isa great location in a topmall but a year or twolater that mall will havebecome obsolete.”

He also highlights theimportance of addingEuropean and NorthAmerican locations inbolster image amongChinese consumers:“Chinese consumers arevery aspirational. Theydon’t know, or rather theydon’t care much for, what’shappening 50 miles fromthem but they know thekey brands in New York,Paris, Tokyo and Milan.That’s why Omega isopening a store on FifthAvenue. It’s not becausethere’s a sudden surge ofUS buyers – though salesare increasing with thelocals – its more thatManhattan is full ofChinese tourists andOmega needs to be seen asa global brand.”

Overseas presencehelps China salesCase studyPiagetLucie Greenetakes a look atone company’sAsia strategy

A watch from Piaget’sDragon and Phoenix

collection to beannounced in

Hong Kong next month

Anew name has sprung up inwatch auctions – albeit onenot immediately familiar,even to experts.

Last month, DKSH, the nearly 150-year-old Swiss trading house activeacross Asia, made its Hong Kong sale-room debut. The Zurich-based groupmay not be a household name ineither Switzerland or Europe, but inAsia, it has more than 20,000 employ-ees and SFr7.2bn in revenues.

Most come from representing bigcompanies, notably in pharmaceuti-cals and consumer goods. But DKSHis also active in luxury, distributingand representing brands in marketseither too small to be of interest oracting as local agent for manufactur-ers lacking the resources for a directpresence. In watches, Rolex, Breitlingand Harry Winston are just threebrands represented in Asia by DKSH,which also owns Swiss watchmakerMaurice Lacroix.

“DKSH has been associated withwatches for more than 100 years as adistributor,” says Gonpo Tsering, theexecutive behind the auctions initia-tive. “Only LVMH, Swatch Group andRichemont have the network we have.But we have an open system and pro-vide services to all watchmakers.”

He argues that diversifying intoauctions was a logical step, even if ittook 10 years. “We’d been thinkingabout it for a long time, but only nowdid we feel the time was really right.”

Rather than using its own name,DKSH has set up a subsidiary, SwissAuctions, for the venture. Althoughfewer than half the 250-odd items ten-dered at its first sale changed hands,the event raised $3m.

“It was fantastic for a first go.

Retailers were very impressed andthere were lots of celebrities”, says MrTsering. Further sales will followtwice a year, in May and October,with possible expansion to smallerlocal events in Singapore and Beijingand potential diversification into jew-ellery.

Mr Tsering says Swiss Auctions isalready adjusting its business model.“The established houses tend to focus

on safe brands like Patek Philippe andRolex. We wanted to distinguish our-selves by bringing some really inter-esting pieces and even some more off-beat items,” he says.

“What we saw was that Asian col-lectors preferred safe brands andweren’t yet so inclined to go for moreunusual items. So next time, we’ll bea bit more conservative: even if not asmuch as the established auctioneers.

We don’t just want to be resellers ofPatek and Rolex. We want to differen-tiate ourselves.”

In spite of the massive cost of rent-ing the ballroom at the Ritz Carlton,arguably Hong Kong’s glitziest hotel,printing lavish catalogues and import-ing celebrities, Mr Tsering says SwissAuctions emerged with a modestprofit. “Our costs are relatively low,because DKSH already has a big pres-

ence locally.” He declines to discloseany absolute figures, or targets forfuture sales and profitability. ButSwiss Auctions is setting its sightshigh. “After three or four sales, Ireally want to make the establishedauction houses sweat. Obviously, wecan’t expect to beat Christie’s orSotheby’s after our first event.”

Local observers are more detached.One expert says he was not even

aware the auction had taken place.But local rivals concede Swiss Auc-tions appears a serious operator andhas made a respectable start. “DKSHseems to have deep pockets andapparently is serious about its entryinto the market,” says one well placedobserver, who asks not to be named.

The timing was good. Swiss Auc-tions’ sale coincided roughly withSotheby’s, meaning plenty of wealthyChinese buyers were in town. It alsocame ahead of the regular Christie’sNovember sales. The newcomer isalso credited with a good sense ofwhat the market wanted. Raisingabout $3m was seen as creditable for afirst go, against the $10m to $12m reg-ularly notched up by Christie’s orSotheby’s.

Top seller was a white gold HarryWinston tourbillon watch from 2009,which went for HK$2.55m. That wasfollowed by a Jacquet Droz inspiredBirdcage Clock. The extraordinaryitem changed hands for HK$1.4m,reflecting the success of a similar“singing bird” sold recently by Chris-ties’.

But Swiss Auctions will need toaddress some continuing questions tobe assured about its future. “Theywill need to ensure a steady stream ofgood items: there have been otherswho have been and gone,” says thelocal expert.

The company may also face probinginto its pricing structure. Swiss Auc-tions’ buyer’s premium is signifi-cantly below the stiff rates charged bySotheby’s and Christie’s. That raisesquestions about price cutting to gainmarket share, and whether the com-pany might raise commissions if itgets established.

Mr Tsering says the commissionswill stay as they are, and reflect SwissAuctions’ relative cost advantages. Heexpresses confidence about the future.“We have connections and relation-ships among retailers and collectorsacross Asia. We’re seen as Swiss, inde-pendent and transparent: those arethree big benefits.”

Swiss agent in Asia takes on a saleroom roleDiversificationHaig Simonian reports ona trading house that hasbranched out into auctions

Wristwatch models: Swiss Auctions’ sale coincided roughly with the Sotheby’s sale, meaning plenty of wealthy Chinese buyers were in town


Watches & Jewellery

Tributes have been pour-ing in from around theglobe following thedeath three weeks ago

of George Daniels, the leadingEnglish horologist, at the age of85.

Mr Daniels, who had lived onthe Isle of Man since 1982, waswidely regarded as the world’sgreatest living watchmaker andwas thought to have been theonly person to have fully mas-tered the 34 individual craftsnecessary to hand-build a watchfrom scratch.

Perhaps his greatest achieve-ment, however, was the inven-tion of the Coaxial escapementhe began developing in the1970s. Designed to run unaf-fected by the deterioration of itslubricant and to keep accuratetime for years without requiringattention, it represented themost significant step forward inmechanical watchmaking inmore than 200 years.

Mr Daniels battled for a dec-ade to have the benefits of theinvention recognised, and it waseventually introduced to thepublic in an Omega wristwatchat the Basel Fair in 1999. TheCoaxial is now accepted as prob-ably the most accurate and con-sistent mechanical watch move-ment on the market.

George Daniels was born oneof 11 children in 1926, in Edg-ware, Middlesex. His father, acarpenter, was a violent heavydrinker and the family existedin near poverty. George was justfive when he found an inexpen-sive pocket watch lying aroundat home – he opened the backand became besotted by what hefound inside.

With his mind set on becom-ing a watchmaker, he left schoolat 14 and went to work in amattress factory in order toboost his father’s meagreincome. He left after a week tobecome a grocer’s errand boy,then found employment in agarage specialising in re-tread-ing car tyres.

But it was not until after thesecond world war and nationalservice that he landed his firstjob with a watchmaker.

He enrolled for horologicalclasses at Northampton Insti-tute – later City University, Lon-don – at a cost of almost £2 ayear for a three-year course heattended three nights a weekafter work. He passed his finalexams in 1953, marking the endof his only spell of formal train-ing.

Three years later, he startedhis own watch repair businessand, after being introduced to

antique watches by collectorSam Clutton, who also sharedMr Daniels’s passion for vintagecars, he established a thrivingbusiness mending and restoringearly pieces, often making newcomponents to replace missingor worn-out originals.

Repairing a valuable Breguetwatch for Mr Clutton led MrDaniels to visit Maison Breguetin Paris and “...with the intro-duction to his work, my interestin antiquarian horology wassuddenly and obsessivelyfocused upon Abraham LouisBreguet, the most celebratedand admired of watchmakers”.

It was an obsession thatopened the doors to some of thegreatest and wealthiest collec-tors in the world and encour-aged Mr Daniels to begin mak-ing his own watches fromscratch, always working aloneand invariably creating designdrawings only after a piece wasfinished.

Between 1969 and the mid1990s, he produced more than 20exquisite pocket watches, eachone taking more than a year toconstruct entirely by hand.They included several grandcomplication models, includinga tourbillon minute repeaterwith perpetual calendar, equa-tion of time, phases of themoon, thermometer and powerreserve display. Of the few Dan-iels watches that have appearedon the open market, one fetchedmore than £200,000 in 2002.

Mr Daniels also made twoexamples of his so-called SpaceTraveller’s watch, the mostremarkable of which featured achronograph, mean solar andsidereal time, age and phase of

the moon and equation of timeindications.

Tina Millar, who establishedthe watch and clock departmentat Sotheby’s in 1970 andemployed Mr Daniels as a con-sultant, remained his closefriend for more than 40 years.

“He was an absolutely amaz-ing man and it is difficult tocomprehend quite how talentedhe really was. He personallyrestored his vintage cars, playedthe harmonica and illustratedhis books.”

Another longstanding friend

is Isle of Man watchmakerRoger Smith, who became a pro-tégé of Mr Daniels after firstencountering him in 1988 whenhe visited the ManchesterSchool of Horology where MrSmith was studying.

“We were all totally mesmer-ised by what he had to say tous, and when someone askedhim what was on the end of hiswatch chain and he pulled outthe Space Traveller’s watch wewere simply speechless,” hesays. “No one could believe thatit was possible to make such a

thing entirely by hand.” MrSmith became Mr Daniels’apprentice in 1998, working withhim for three-and-a-half yearsand collaborating on the produc-tion of 50 Coaxial Daniels wrist-watches designed to mark thenew millennium.

When Mr Smith left to estab-lish his own business, Mr Dan-iels gave him his first two com-missions and, most recently, thetwo men worked on designing aseries of 35 wristwatches tomark the 35th anniversary ofthe perfection of the Coaxial

movement. Mr Daniels saw thefirst completed prototypeshortly before he died.

Paying tribute to his mentor,Mr Smith says: “Without him, Idon’t believe any of today’sindependent makers would bearound. The real art of watch-making had been lost to massproduction, but George turnedround and proved that there isstill a place for truly hand-crafted pieces by becoming thefirst watchmaker in history tosit down and make every part ofa watch from scratch.”

Tributes pour in fora master craftsmanObituaryGeorge DanielsSimon de Burton on aunique man whomastered all 34 skills

George Daniels: between 1969 and the mid 1990s, he produced about 20 pocket watches, each taking a year to construct by hand Corbis

The past 18 months haveseen the watch industryrobbed of some its titanicfigures: Gino Macaluso,Nicolas Hayek, Rolf Schny-der, George Daniels andGerald Genta.

Mr Genta’s most famouscreation was the AudemarsPiguet Royal Oak, launchedby the conservative LeBrassus brand in 1972.

The slim, dapper musta-chioed figure is describedby those who knew him asa gentleman. His death hascome just a year before the40th anniversary of themodel that catapultedAudemars Piguet into thepremier league of luxurywatchmakers and launchedan entire market sector.

From his childhood inGeneva where he was bornto Italian parents, Mr Gentahad artistic leanings andlater in life he would onceagain turn to painting andsculpture.

As a young man hetrained as a jeweller, but itwas as a creator that heexcelled. His mind sproutedwith ideas that his skilledhands translated intosketches and designs thathe sold, to jewellers andincreasingly to the watchindustry.

But he might haveremained a successful andtalented designer littleknown beyond the industryhad it not been for Aude-mars Piguet’s decision tolaunch a limited series of aluxury steel bracelet watchthat had been requested bythe Swiss, Italian andFrench markets.

The thinking at the end ofthe 1960s was that Rolexwas becoming too wellknown; as one industry vet-eran explains “the driverwore one watch in steel andthe guy sitting in the backwas wearing the samewatch in gold”.

Then, as now, thenuances of relative statuswere communicatedthrough one’s choice oftimepiece, especially instyle-aware markets such asFrance and Italy wheresnobs wanted a braceletwatch that set them apart.

Audemars Piguet turnedto Mr Genta, by then anestablished designer, to

come up with this watch.There is a creation myth

that surrounds the birth ofthe Royal Oak, that has MrGenta walking along theshore of Lake Geneva whenhe saw a diver in an old-fashioned diving suit, thehelmet secured with screws.

If true, this moment wasto change his life and alterthe course of luxury watch-making more profoundlythan anyone could haveknown.

The concept was auda-cious enough – a steelwatch that cost more thanmany gold ones from ahouse that was known forslim gold watches. Even inthe 21st century, the hamletof Le Brassus where AP isbased, is a quiet place.Forty years ago, the arrivalof the Royal Oak must havehad the effect of alienspacecraft touching downin the Alpine meadows.

The revolutionary geniusof the design lay in the inte-gration of case and bracelet:the watch and braceletdesigned as a whole ratherthan as a watch head with abracelet fitted almost as anafterthought. The steel isbrushed, polished and fac-eted, much as a jeweller

might treat gold while theprominence of the screw-heads in the bezel wasagain a refutation of theorthodoxy that humblecomponents should be dis-guised and hidden.

Jasmine Audemarsremembers at home whenshe was young a debate asto whether AudemarsPiguet should launch sucha watch. At the time, APwas respected but small,making about 5,800 pieces ayear. But it was run by avisionary chief executivecalled Georges Golay. MrGolay believed in the Oakand decided to launch a lim-ited series of 1,000 pieces.

Martin Wehrli, AudemarsPiguet’s director of museumand heritage, was workingfor the company as a juniorsalesman at the time andrecalls the Basel Fair atwhich it was launched.

“When we launched it wehad a corner booth and wehad a small window in thecorner on the main alley:this piece was put in the

window and everybody whosaw it said it was a tremen-dous piece and then theywalked 10 metres on andsaid ‘in six months we canbuy them. They will bebankrupt’.”

Instead, by the secondhalf of the decade any seri-ous luxury watch companyhad an Oak competitor. ButMr Genta’s most prominentcompetitor was himself: in1976 Patek Philippelaunched the Nautiluswhich, designed by MrGenta, is one of the greatclassics of the 1970s.

It is also said that he wasinvolved with the redesignof the IWC Ingenieur atabout the same time. Sosynonymous did he becomewith the luxury steel sports-watch that he was creditedwith designing watcheswith which he had no con-nection.

The most significantmisattribution is anotherimportant watch of thetime, Vacheron Constan-tin’s 222, which laterbecame the Overseas, andwhich was in fact designedby a young Jorg Hysek.

Mr Genta worked forbrands as diverse as Bul-gari, Omega and Seiko anddesigned many morewatches for AP. In terms ofpersonal success, the 1980swas the decade in which MrGenta made it. Watches,again in his beloved octago-nal shape, sold under hisname became highly soughtafter (today they are amongthe most undervaluedpieces at auction), and heworked on private commis-sions for such patrons asthe Sultan of Brunei.

After his brand wasacquired by Bulgari, hemade some watches underthe name Gerald Charlesbut they did not recapturethe success of the earlieryears.

Mr Wehrli, who knew himfor 40 years, says Mr Gentaremained a stickler for tra-ditional courtesies. “He hada bit of a problem with themanners people have in theindustry today. He wasinvited by a gentleman tovisit him in another Euro-pean city and the guy lethim wait half an hour. Hedid not like that. As I usedto say to people at Aude-mars Piguet: ‘If GeraldGenta is a bit of a primadonna it is because he hasthe right to be a primadonna’.”

Revolutionaryinventor of agenius conceptObituaryGerald GentaNicholas Foulkeslooks back at theman who designedAP’s Royal Oak

Gerald Genta: a gentleman

The arrival of theRoyal Oak musthave been like analien spacecrafttouching down inAlpine meadows

George was five whenhe found a cheappocket watch.He opened the backand became besotted


Watches & Jewellery

Nicolas G Hayek, theman who master-minded the growth ofthe Swatch Group, is

no longer with us, but his influ-ence is still felt throughout theindustry. At the time of hisdeath Mr Hayek was at the cen-tre of a debate about the supplyof movements to brands otherthan those within the SwatchGroup.

It was an involved and attimes vigorously argued issue.One of the changes it hasbrought about is the way com-panies at the upper end of theindustry do business. As wellas the cultural appeal of beingable to claim that as a verticallyintegrated manufacture, a brandis a master of its métiers andhandles all aspects of designand construction in-house. Thespectre of over-reliance uponcrucial suppliers has, in thewords of Jean Claude Biver ofHublot, “made everybody fright-ened of suppliers”.

Mr Biver is a formidable manin character, physical presenceand reputation so is unlikely tobe frightened easily. Neverthe-less, at the beginning of theyear he finalised the purchase ofa specialist casemaker thatgives his brand a degree of secu-rity when it comes to meetingthe needs of production. Theacquisition has been one of a

series of high-profile purchasesby prominent brands of special-ist suppliers this year.

Mr Biver found the companyafter a long search for a case-maker capable of working incarbon. “Traditional casemakershad done aluminium, titanium,tantalum, gold, platinum, silvercases and whatever else butnone of them had done carbon,”he says. In the end, he cameacross the supplier following arecommendation by a maker ofscrews for Formula One.

“I knew that Hublot was des-tined to work with him when Ifound out the name of the com-pany – Profusion,” he says.Since relaunching Hublot, MrBiver has described the watcheshe makes as fusion watchmak-ing. “He was doing a few hun-dred cases a year including spe-cial cases for Max Busser [theeponym of Max Busser &Friends, a boutique high-techwatch brand]. But we did notwant this guy to do 50 cases, weneed 5,000, so I said we caninvest or make him a proposi-tion to sell his company. Hesaid: ‘Let’s see after two years’.”

At the start of this year, twoyears had passed. “We boughthim and then we put in newmachines and new people andwe are coming to a point wherewe can produce up to 4,000 car-bon cases.”

For Mr Biver it was the exper-tise as much as the capacitythat made purchasing this busi-ness so important. While reluc-tant to disclose the sum he paidfor it, he talks of considerableinvestment subsequently. “Wehave made an investment ofSFr10m so they work withmachines they would never

have dreamt of,” he says.He has also recruited more

staff. “When we bought thefirm, there were 28 people, nowit is up to 50 and next year therewill be around 80. Competitionis more and more about technol-ogy; it is just not enough to rec-reate the past, and in control-ling specialist knowhow, youcontrol your creativity.”

It was control of specialistsavoir faire that motivatedUlysse Nardin’s recent purchaseof Donzé Cadrans, a specialistenamel dialmaker. Rolf Schny-der, Ulysse Nardin’s owner, wasone of the crucial figures in therevival of enamel dials and heworked closely with Michel Ver-mot, Donzé’s owner. But MrSchnyder died recently and MrVermot wanted to retire.

Although the firm is small,comprising Vermot, his daugh-ter and a handful of others,Patrik Hoffmann, Ulysse Nar-din’s CEO, felt the acquisitionwas important. “Today we have

to be very careful to keep an eyeon everything, not only in dialsand enamelling. You have a lotof small companies, specialistsand artisans, and some of thoseartisans are ageing. The exper-

tise must not leave the industrywhen they do. We don’t want tolose that knowhow and buying acompany such as DonzéCadrans is our way of sayingthat we have control over it.”

He believes that, within a cou-ple of years, the business will beintegrated into Ulysse Nardinand the deal will have paid foritself. He says that, while salesof enamel dialled watches havegrown, as a proportion of theoverall turnover they are lesssignificant than in the past. Butin terms of brand identity, theirimportance is huge and this waythe company can ensure a newgeneration of enamel workerswill be trained.

It is this sense of owning yourown prestige that attractedHamdi Chatti to purchasing spe-

cialist movement maker La Fab-rique du Temps, this year. MrChatti has taken over the watchand jewellery division of LouisVuitton and is keen tostrengthen the brand in men’swatches, which he seeks to dothrough improving the qualityand variety of the movementoffer.

The motivation behind LouisVuitton’s new acquisition istwofold, he says. “We want todesign and develop amazingnew watches, not only with tra-ditional high complications. Webelieve we need to have our ownmovement for our own chrono-graph and we are working withLa Fabrique du Temps todevelop our unique signaturechronograph. I hope that in twoyears we have not only the

design but that it will be in pro-duction.”

It would appear that this sortof acquisition will becomeincreasingly common as thosebrands with special require-ments integrate small skill-richsuppliers into their operations.

For Jean Claude Biver, atleast this trend is evidence ofprogress moving backwardsrather than forwards. “I thinkthe result of more of thesehighly specialised acquisitionswill be to bring the industryback to the state it was 100years ago when everybody wasdoing movements by them-selves, which, by the way, is notbad for the industry as everybrand will have a greater degreeof responsibility for its prod-ucts.”

Time to gobackwardsin orderto go forthSpecialist acquisitionsNicholas Foulkesreports on prominentbrands buying upsupplier companies

‘The result of more ofthese acquisitionwill be to bring theindustry back to whereit was 100 years ago’

Donzé Cadrans enamelling: Ulysse Nardin’s decision to buy the company was motivated by its interest in keeping enamelling expertise in the industry as artisans age

Anyone who likes gadgetswould undoubtedly bepleased to find in theirstocking this Christmas TagHeuer’s latest creation – amechanical wristwatchcapable of recording elapsedtime down to one 1,000th ofa second.

The Mikrotimer 1,000 wasunveiled eight months agoat the Baselworld show as a“concept” piece. The reac-tion to it was so positive,however, that the sportstiming brand has alreadyput the model into limitedproduction.

The first examples aredue to be delivered nextweek, with 10 pieces in thepipeline for this year and 50for next. Each will have an£85,000 price tag and a merefive examples will be availa-ble in the UK.

To create a mechanicalwatch movement capable ofsuch a high degree of accu-racy, Tag’s engineers haveabandoned the traditionalbalance wheel system infavour of what is describedas a “launcher-hub brakesystem controlled by a col-umn wheel” and a radialescapement that oscillatesat a frantic 500 hz – or 3.6mbeats an hour.

To put such technicalitiesinto context, it is perhapsbest to explain that themechanism enables thechronograph seconds handto make 10 rotations of thedial every second.

The downside of the sys-tem is that it uses a mas-sive amount of energy,meaning the chronographcan only be operated inbursts of 150 seconds.

Thanks to the use of twoseparate power trains in acommon movement, how-ever, the watch proper stillhas a power reserve of43 hours. The unveiling ofthe Mikrotimer caused sur-prise in the industry asmuch for its technicalwizardry as for the fact

that it eclipsed a recordthat Tag Heuer itself hadset at the start of the yearwhen it announced itsMikrograph 100 watch, thefirst mechanical chrono-graph to achieve accuracydown to one 100th of a sec-ond. This, too, is now onsale in limited numbers at£35,000 apiece.

The brand’s history ofcreating ultra-accurateelapsed time mechanismsdates back to the Microsplitof 1916, the first 100th of asecond stopwatch with asplit-second hand.

In 1966, Heuer created thefirst miniaturised electronictiming device capable ofrecording to the same1,000th of a second accuracythat has now been achievedin the new mechanicalwristwatch.

The development of thenew mechanism goes someway to settling the long-standing anomaly in whichmechanical watches areinvariably considerablymore expensive and harderto produce than electronicor so-called “quartz” ones,yet are generally far lessaccurate.

With the Mikrotimer1,000, however, Tag hasproved that traditionalclockwork can almost keepup with quartz – for shortperiods of time, at least.

“We began taking depos-its for the Mikrotimer 1,000

almost as soon as it wasannounced,” says Jean-Christophe Babin, the com-pany’s CEO.

“There are many wealthycollectors who are desper-ate to be among the first tohave one on their wristbecause it really does repre-sent a revolution inmechanical timekeeping –99 per cent of chronographson the market operate at afrequency of 28,800 hz, thatis 125 times slower than theMikrotimer 1,000, and pro-duce an accuracy of one-eighth of a second.”

But creating a chrono-graph that provides thisdegree of accuracy is onlypart of the challenge facedby watchmakers seeking todevelop a mechanical time-piece that can truly com-pete with a quartz-poweredone on the most basic level– that of telling the time.

The average, good qualityquartz wristwatch operat-ing at the industry standardof 32,768 hz should easilyprovide accuracy to within10 seconds a year, yet the

current benchmark set byCOSC (Controle OfficielSuisse des Chronometres)for a mechanical movementallows for a variation ofminus four to plus six sec-onds a day.

As well as their innateaccuracy, quartz move-ments have the benefit ofusing very few movingparts, which makes themless vulnerable to shocksand enables them to remainconsistent for far longerperiods.

But the race is well andtruly on to lend even moreadded value to luxurymechanical watches by alsoenhancing their overallaccuracy.

Zenith, for example, haslong been famed for its ElPrimero chronograph move-ment that operates at fivehz, the equivalent of 36,000oscillations (or vibrations)an hour. This higher rate –identifiable by a faster thannormal ticking sound – the-oretically makes the watch25 per cent more accurate.

As a result of the need forgreater energy, brands suchas Zenith, Breguet, PatekPhilippe and Ulysse Nardin,use ultra light silicon forcertain movement compo-nents in order to reduce thedrain on power and theneed for lubricants that cancause drag as they degrade.

Chopard, meanwhile, isworking on new escape-ments operating at 8 hz and10 hz.

Just as with a high-rev-ving car engine, however,such increased speedspotentially lead to fasterwear and tear and greaterfragility – both negativesthat vastly outweigh anyincrease in accuracy.

Guy Bove, Chopard’sproduct development direc-tor, says the brand will notgo into full production witheither of the new move-ments until its engineersare satisfied they are robustand reliable and goodenough to achieve COSCcertification.

“Ultimately, we want tobe sure that we are not justoffering something that ismore complicated, butsomething that has a realadvantage in terms of timekeeping accuracy.”

Mechanical movementwith accuracy of quartzThe MikrotimerSimon de Burtonreports on thecutting edge oftechnical prowess

Mikrotimer 1,000: first examples to be delivered next week

Creating achronograph withthis accuracyis just part ofthe challenge


Watches & Jewellery

Holiday hot spots New generation of global vacationers drives salesSo where do you go if you want tobuy a watch? You might think ofMadison Avenue or Bond Street, butinsiders suggest you should think moreof Bodrum, Beirut or Grand Cayman.

In LVMH’s annual report last month,the group attributed a 19 per centincrease in overall revenue to its travelretail arm DFS Gallerias. “Sustained bythe continued growth of Asian tourism,DFS reaped remarkable rewards byupscaling its strategy and developmentin new markets,” it said.

Traditional European hubs continueto pull in the majority of luxury watchsales, but a coterie of brands has beendeveloping alternative strategies:boutiques in smaller, yet highlylucrative, holiday hot spots.

“Since launching in 2009, some ofour top points of sale outside Parisand New York have been highend skiresorts such as Gstaad, St Moritz andCourchevel,” says Guy Chatillon, CEOat Ralph Lauren Watches & Jewellery.

Sales assistants in the après skiboutiques say their biggest customerbase is Russian holidaymakers, whosespending on luxury goods hit €9bn lastyear. The Turkish coastline has seen asimilar boom after brands noticed itspopularity with the eastern Europeanbourgeoisie.

Financial data service Global Bluesays luxury watch sales in Turkeyare up 366 per cent since2006, making it theindustry’s secondlargest growth areaworldwide.

The MiddleEast isanotherimportant

emerging market. Yet despite theopportunities offered by the malls ofDubai, Riyadh and Abu Dhabi, Lebanonis proving to be the region’s starperformer. It is now the fourth largestmarket in the world for watch andjewellery sales. Last year, Cartier, Rolexand Boucheron all unveiled boutiquesin the glamorous gold souk ofdowntown Beirut; other luxury brandsare opening stores in streets nearby.

Expansion here is designed toentice wealthy tourists as well as thelocal population. Visitors from the Gulfare up by 30 per cent this year,perhaps thanks to Lebanon’s relativestability.

Gambling resorts also continue tobring in watch sales, despite thedownturn. “Las Vegas, Singapore andMacau have all given exceptionalperformances this year,” says LucPerammond, CEO of Hermes Watches& Jewellery. “This new focus is animportant development as the watchessold in resorts are often of a highervalue than in normal retailenvironments.”

However, it is not just high spirits orhedonism that fuels vacation spendingon luxury goods. There is a newgeneration of global vacationeremerging – particularly from Asia –who travels primarily to makepurchases. According to Mintel, 82 percent of Chinese tourists say thatshopping is their first choice of holidayactivity.

“The Asian consumer knows exactlywhat he or she wants from a luxurypurchase,” says Berndd Schmitt,executive director of the Asian Instituteon Consumer Insight. “Buying ahighend watch on vacation is acalculated investment – it’sa stylish souvenir forshowing off a risingincome andelevated

lifestylewhen that

person returnshome.”

Financial savvy is a hugedriving force in luxury travel retail –

particularly when it comes to theaspirational middle classes emergingout of new markets.

Hefty sales tariffs can add between20 and 50 per cent to luxury watchprices in China. Keen to make asaving, millions of weekend shoppersfly to duty free cities such asSingapore and Hong Kong where,according to HSBC analysts, 75 percent of all 2010 luxury watch saleswere made to vacationing Chinesemainland residents.

“Flight costs will be negated by theoverall savings made on their newCartier or Rolex timepiece,” says ProfSchmitt. “Almost all have come toshop; conventional tourism is now asecondary pursuit.”

Protectionist import taxes have hada similar impact in Brazil: more thanhalf all luxury purchases made byBrazilians happen outside the country.

Thirtynine per cent are carried out inand around North America – buoyedby a favourable exchange rate betweenthe US dollar and real.

“Of course it will be attractive to buyan expensive watch in destinationswhere the currency is weak – businessis booming for us in the Caribbean, asit should be for anyone in theindustry,” says Nelson Lucero, vicepresident of sales and marketing atUlysse Nardin. The brand has reported“exceptional” sales in dutyfree portssuch as Grand Cayman, St. Martin, StThomas and Aruba.

“In some cases, results are due tolocal wealthy expat populations,” saysMr Lucero. “Mainly, however, sales arethanks to tourists passing through onhighend cruise ships.”

Finally, one of the biggest retailingarenas for brands isthe transit market;targeting

highrollingtravellers on the

move. They may notbe glamorous, but

airports account for billions ofdollars of watch sales each year.

“The destinations may keepchanging, but global travellers willalways be travelling – and most go viaairports,” says JeanChristophe Babin,CEO of Tag Heuer. About 15 per centof the brand’s sales are to tourists,he adds. Most are business travellersin departure lounges, taking advantageof some free time – and duty freeprices. Bidding wars for bothconcession and advertising wall spacesare fierce.

“The airport is one of the bestplaces for us to create brand exposure;we have ad campaigns in 32 airportsworldwide so we can connect withcustomers. You will see Tag when youcheck in, when you pass security andwhen you pick up your luggage. Weeven feature in Air France inflightentertainment programmes – thebrand is with you from door to dooron your journey.”

Despite all this, for most luxurywatch brands, home is still best.

“Our core focus continues to bedomestic markets: Paris will always beour number one store,” says Mr Babin.“Still, no one can ignore the growthpotential in travel retail.”

Elizabeth Paton

With Swiss watch imports intothe US having taken a 22 percent tumble in 2009, accordingto Zurich’s Bank Vontobel, theprinciples behind the customerexperience have changed dra-matically – none more so thanin the luxury sector.

As the luxury watch marketreadjusts, two brands thatrecently debuted flagships inManhattan’s Madison Avenue –Vacheron Constantin andTourneau – are using differentstrategies to attract, engage andconnect.

At Tourneau, whose 3,135 sq ftstore opened in June, theapproach is modelled on thesuccess of Apple.

“I don’t know who doesn’tenjoy shopping in an Applestore,” says James Seuss, CEO.

“[Steve Jobs] made it enjoya-ble and exciting. I felt it wasimportant to integrate the Appleand online experiences [in thisnew store].”

The result? Counterlessselling, a democratic approachrealised by Wilhelm Oehl, aprincipal at Eight Inc, the samecompany that worked with MrJobs on the first 300 Applestores.

“Traditional retailers becameold fashioned and outdated: itwas time for a change in theway watches are discovered andviewed and purchased,” says MrSeuss.

“Watches are something youwant to look at, so we brokedown the barrier to what can beperceived as an intimidatingencounter.”

Indeed, clients can browse orbe assisted; self discover or gethelp from a sales professional.

Mr Oehl’s three-part systemfor Tourneau centres aroundconcepts of “product is hero”,“approachable, knowledgeablestaff” and “service on the floor”.

“We established the notion ofa peer-to-peer relationshipbetween the customer andthe sales staff, versus thetraditional behind-the-countermentality still very commonin watch retailing,” says MrOehl, whose design is beingimplemented in Tourneau’sPalm Beach and South Coast

Plaza, California stores in 2012.“It should be the customer’s

choice whether or not theywould like to engage with asales person.”

Ultimately, the purchasetransaction occurs on thefloor in front of the customerthrough handheld check-outdevices, like at Apple, and nothidden behind a wall of secrecyand cameras.

As a result, the personal qual-ities, not to mention the charac-ter of the sales staff, are becom-ing more important in thisinteraction with customers, whoare generally already wellinformed about the product.

Tourneau employees aretrained in role-playing situa-tions to acclimatise themselvesto this new experience.

A few blocks north on Madi-son Avenue, in the heart of Jew-elers Row, sits Vacheron Con-stantin’s first US boutique. Itslandmark status is what Huguesde Pins, president of VacheronConstantin North America,counts as one of the store’smain drawing points.

With a space a fraction thesize of multi-brand Tourneau,the watchmaker marries a con-temporary selling space with anenergy that is both warm andinviting – no easy task whentimepieces regularly top six fig-ures.

Mr de Pins admits that thestore is not spectacular in the“wow” design sense; it wasnever meant to be. Instead, it isan understated space that usestactile materials such asMurano glass, leather and woodto create a comfortable atmos-phere.

“Besides the comfort, wedidn’t want an intimidating bou-tique,” Mr de Pin says.

“Anybody who comes to havethis Vacheron Constantin expe-rience will feel at ease.”

While clients are greetedimmediately on entry, there isample free-flowing space and asimilar counterless system forboth admirers and serious col-lectors to peruse at their leisure.

Not only is there access to allparts of the store’s open spaces,

Mr de Pins says the brand evenrethought the training of itsstaff.

“We democratised the store byselecting a team that is veryknowledgeable and well pre-pared to engage a conversationand, above all, they’reextremely warm and friendly.”

They also speak English, Ger-man, Portuguese, French andChinese.

It is also no longer about justselling watches. It is about cus-tomer experience. Mr de Pinssays the average time from ini-tial interest to point of purchaseat Vacheron Constantin is fourmonths – a clear indicator thatthose initial moments of interac-tion are crucial.

“The experience of purchasinga timepiece now is really at itsbest when there is a personalinteraction; the customer canreally understand and appreci-ate all the technical aspects,”says Mr de Pins, who adds thathe was pleasantly surprised bythe number of visitors whobrought their families to viewthe watches. “So there really isa conversation, not just a sales-person trying to sell a product.It’s a real exchange of ideas.”

While at Tourneau, an LCDvideo tower and discovery wallshowcases a specific brand ortrend, at Vacheron Constantinthere are watch exhibits inplace of traditional counters.

Both Mr Seuss and Mr de Pinsagree that the client enjoying ahigh quality timepiece is thesame client who enjoys his iPador iPhone.

“What is quite amazing is, atthe same time, the same peopleare enjoying very traditionalmechanics, very classical hand-made products,” says Mr dePins.

“The US is very major in bothnew and old technologies.”

Proving that technology isparamount.

Tourneau’s new websiteallows the client to selectwatches and virtually placethem in a watch tray, scheduleonline an appointment tocome into the store and be pre-sented with the timepieces onarrival.

Both companies, like theirpeers, further the experience byoffering private appointments –but those are more the excep-tion to the rule.

Most of these clients, says MrSeuss, have an idea of the watchor watches they are interestedin buying. “Usually they arelooking for something rare.”

Different ways toattract and connectUS retail strategiesJim Shi looks attwo companies’methods of appealingto customers

‘We established thenotion of a peertopeer relationshipbetween thecustomer and staff’

Sails: cruise shipsbring big watch business

It is well known that carsand watches go together,but few motoring eventshave become as inextrica-

bly linked with horology as theCarrera PanAmericana roadrace, the most recent of whichtook place at the end of lastmonth.

The modern-day version of theevent has its roots in 1950 whenMexico became the first LatinAmerican country to completeits portion of the 29,800-mile PanAmerican highway.

To inaugurate the newstretch, the Mexican authoritiesorganised a no-holds-barredroad race specifically for five-seat sedans. The first grid com-prised no one more professionalthan would-be racing drivers,cabbies and countless otheramateurs, but that did not pre-vent “La Carrera” becominginstantly famous and it quicklybegan to attract some of theworld’s top drivers.

The route was littered withnatural hazards and deathswere frequent due to the ridicu-lous speeds: in 1954, UmbertoMaglioli won after completingthe 2,100 mile course at an aver-age of 138mph.

The race was scrapped in 1955after 27 fatalities in five years,only to be resurrected in 1988for cars from the original era.Now it attracts more than 100entries a year (nearly all aresuper-rich classic car enthusi-asts) and, unlike many old carevents, originality is encour-aged.

As a result, 1950s Studebakersand Pontiacs with 600 horse-power engines and top speeds of160mph plus are extremely pop-ular.

The watch connection datesback to 1962. Jack Heuer, the

great grandson of watch com-pany founder Edouard, had beenworking as official timekeeperat the 12 Hours of Sebring whenhe was introduced to motor rac-ing brothers Pedro and RicardoRodriguez who held him inthrall with their tales of thewild and crazy Carrera Pan-Americana.

Somehow, Mr Heuer managedto absorb the spirit of the eventwithout ever having been thereand decided to encapsulate it ina wristwatch. In 1964 the HeuerCarrera chronograph was born,a watch that soon found its wayon to the wrists of star driversof the time such as Clay Regaz-zoni and Niki Lauda andquickly became the choice ofwristwear for sporting drivers.

The Carrera models still formone of the cornerstones of TagHeuer’s collection and the brandremains involved with the Car-rera PanAmericana as a sponsorof the Volvo P1800 driven byJoaquin “Jo” Ramirez, theformer McLaren F1 team co-or-dinator.

This year, however, the pri-vately owned Frederique Con-stant brand came on board asthe official timing partner of LaCarrera.

Peter Stas, the Geneva-basedcompany’s CEO, establishedFrederique Constant in itspresent form in 1988, launchingthe first collection in 1992. Itwas a further decade, however,before he was able to follow thebrand slogan “Live Your Pas-sion” by using some of his mar-keting budget to back a classiccar event in the form of theEuropean Healey Meeting.

Although an apparently eso-teric choice – the Austin Healeymarque has been defunct since1972 – it is a collaboration thathas gone from strength tostrength and resulted in remark-ably strong sales of the limitededition Healey watches thebrand has produced in severalvariations during the past sevenyears.

“We originally chose to getinvolved with the Healeymarque for two reasons: Freder-

ique Constant wants to beknown for producing classicalwatches, and Healeys are classi-cal cars; second, we promote theaffordability of our watches, andHealeys have remained rela-tively affordable to collectors. Ithas proved to be a very strongconnection which has enabledus to sell, at a guess, about20,000 Healey watches since2004.

“Perhaps surprisingly, I wouldsay that fewer than 5 per cent ofthose sales have been made toHealey owners – the bulk go topeople who are simply enthusi-asts of cars and watches.”

As a result of analysing thesuccess of the Healey watches,Mr Stas looked around for addi-tional car connections thatmight sit comfortably with theFrederique Constant brand andsubsequently negotiated a partin backing last year’s 10,000

mile Peking to Paris challenge.“We collaborated as official

timing partner of the event and,again, it proved extremely suc-cessful in terms of sales andexposure – which is why, forthis year, we decided to offerour help to the Carrera Pan-Americana. These rallies alwaysneed a little extra funding andwe make a point of helping withevent merchandising and, ofcourse, we create a special lim-ited edition watch,” he says.

“The collaboration was organ-ised in something of a hurry, asa result of which we didn’t havetime to get the watches into pro-duction and they will be offi-cially unveiled at the Basel-world Fair – but that didn’t pre-vent people from placingorders.”

The watches – simple, hand-wound, models with the CarreraPanAmericana logo engraved onthe movement – will be sold in aspecial case together with ahandheld stopwatch, all for thereasonable price of about €1,495.

But multiply that by the 1,888sets being produced, and theresulting figure of more than€2.8m goes a long way toexplaining why sponsoring theworld’s craziest car race actu-ally makes a great deal of sense.

Why wouldyou sponsorthe world’scraziest race?Men and machinesSimon de Burtonexplains theconnection betweenwatches and fast cars

Carrera models forma cornerstone of TagHeuer’s collectionand the brand is stillinvolved as a sponsor

No holds barred: the race was scrapped after 27 fatalities in five years


Watches & Jewellery

Behavioural economicsexplains how people makedecisions and its lessonsare increasingly being

applied in the luxury world.Research has repeatedly found that,while we believe humans arerational, their behaviour is consist-ently the opposite.

The Affluence Collaborative, aNew York based research consul-tancy, recently recruited a behav-ioural economist to join its team ofquantitative and qualitativeresearchers, strategists and market-ers.

Meanwhile, the London-basedInstitute of Practitioners in Adver-tising has a Behavioural Economicsthink-tank to advise on best prac-tice and offer training sessions tomembers.

Beyond the luxury arena,Match.com, one of the world’s big-gest dating sites, has developedalgorithms to improve the probabil-ity of successful matches by observ-ing that, although people say theyare looking for certain qualities in apartner, in fact they repeatedly lookat profiles of people without thosequalities.

Dan Ariely, author of PredictablyIrrational, teaches at Duke Univer-sity and founded the Centre forAdvanced Hindsight. He signs hisemails “irrationally yours” andsays behavioural economicsresearch has important implica-tions for the watch and jewelleryindustry.

Prof Ariely had his first brushwith luxury goods at a Harper’sBazaar anti-counterfeiting confer-ence.

“I gave a talk to the 100 bestdressed women I’d seen in my life.When they gave me a Prada bag asa thank you, I wasn’t sure whetherto wear the logo on the outside oragainst my leg so that only I wouldknow I was wearing Prada. I ended

up wearing it against my leg butrealised I still felt more fashiona-ble,” remembers Prof Ariely.

“Jewellery, watches and fashionare about signalling, both to our-selves and to others – like a pea-cock’s tail that signals virility,through them we tell ourselveswhat kind of people we are. Theinternal signalling is sometimeseven more important than theexternal signalling.”

Prof Ariely and others, includingRobert Cialdini, author of Influence,the Psychology of Persuasion, offerlessons about building and protect-ing luxury brands, that have appli-cations for pricing newly discoveredor less-known coloured gemstones,launching new brands, craftingshop window displays, planningadvertising campaigns and testingproducts before investing heavily inmanufacturing and distribution.

Commonly in the market for

goods and services, consumers donot know the value of things, imbu-ing marketers with more control.Our decisions are often based onrelative valuations. Prof Arielypoints to the foresight of HarryWinston as a classic application ofbehavioural economics.

“When black pearls first came onthe market, they did not sell well.But jeweller Harry Winston beganplacing black pearls in his shopwindow alongside rubies, sapphiresand diamonds. He took out fancyadvertisements and priced blackpearls higher than white pearls.From then on, they became verydesirable and black pearls becamemore – rather than less – valuablethan white pearls,” he says.

The professor maintains that theprice at which products are intro-duced has implications for long-term prices.

He cites Apple’s iPhone – initiallyit was hard to know how much it

was worth paying for the new touchscreen technology.

Originally introduced to theAmerican market at $600, it soondropped to $400. Prof Ariely saysthis made the $400 price tag looklike a steal.

“Apple established a relativeprice and anchored a comparison.Smart marketers reconnect the rela-tivity to something that servesthem and this way give us a senseof the value of the products we’reexamining,” he says.

Somewhat reassuringly for con-sumers, an experiment called thesplit dollar test confirms that con-sumers walk away when a deal or aprice is unfair – even when it isirrational for them to do so.

Pairs were given the opportunityto split a quantity of money as theywished and then divide the sum asagreed, or they could reject the splitand get nothing.

Rationally, any split is beneficialas something is always better thannothing. But on average, peoplestart to walk away at a split ofapproximately 70 to 30.

Prof Ariely preaches humility,given the many lessons yet to belearnt about consumer behaviour.

“Whether it’s a decision aboutinvesting 19 per cent of grossdomestic product in healthcare,introducing new pricing schemesfor luxury products or creating newservices, decision-makers need tounderstand how little we know andbe willing to do more experimenta-tion and testing before making sig-nificant investments,” he says.

On the advertising front, behav-ioural economics sheds light on aparadox surrounding the perennialappeal of scarce and exclusive lux-ury goods, says Nick Southgate, abehavioural economist with a PhDin the metaphysics of personal iden-tity.

A consultant to the Institute ofPractitioners in Advertising, themost he has ever spent on a watchis £100 but he can confidently reeloff the names of Switzerland’s bestknown high-end watchmakers.“While advertisers normally targetaudiences who will buy a product,luxury brands must invest in mak-ing their brand desirable to manywho will never buy it,” he says.

Top tips on sales toirrational shoppersConsumer behaviourClaire Adler considersthe implications ofbehavioural economicson the industry

Match.com says people who say they are looking for certain qualities repeatedly go for those who don’t have them Getty

Reassuringly forconsumers, anexperiment confirms thatconsumers walk awaywhen a deal is unfair


Watches & Jewellery

Much like a Ferrari 250GTO or bottle of ChâteauLafite-Rothschild, themarket for one-off and

limited edition timepieces continuesto grow, as demand exceeds supply.

Exclusivity has kept the entire high-end watch business not only in theblack but, in many cases, booming.

“Today, clients and connoisseursare looking for always more exclusiv-ity and technical invention,” says Jer-ome Lambert, chief executive atJaeger-LeCoultre. The company’s$248,000 Master Grande TraditionMinute Repeater, produced in a lim-ited series of 100 in 18-carat yellowgold, recently found a fan in SimonCowell, the television celebrity, whopurchased one.

This year’s Vacheron ConstantinMetier d’Art collection, an annual setof high art timepieces, starred LaSymbolique des Laques, which high-lighted the technique of the art oflacquering. Only 20 sets of three wereoffered at $285,000, and most were soldbefore they were made.

Xavier Merkl, marketing director atGirard-Perregeux, says 300 ordershave been placed for the company’s220th anniversary edition GP1966, ofwhich only 100 will be made.

Chopard reports sales of its LUCTriple Certification Tourbillon, thefirst watch in the world to bear thethree most prestigious Swiss watch-making certifications – COSC,Poinçon de Genève and Fleurier Qual-ity Foundation – of which only 100 arebeing made.

According to LGI Network, a mem-ber of NPD Group, sales of watchespriced above $25,000 have grown byabout 5 per cent over the past 12months ($771.6m in sales) and 7 percent over the past three months($166.7m in sales).

At Graff, where a $2m MasterGraffSkeleton diamond watch waslaunched at Basel this year and short-listed for the Grand Prix, Michel Pitte-loud, chief executive of the company’sluxury watch division, says many ofhis clients expect their watch to be asmuch a work of art as a functionalobject.

“The luxury watch segment hasundergone a transformation over the

past 15 years,” says Mr Pitteloud.“Watches are [more and more] viewedas an heirloom or an investment asmuch as they are an expression ofindividuality.”

A similar experience is found atVan Cleef & Arpels, where NicolasBos, president and chief executive ofthe Americas, reports a significantincrease in demand for special time-

pieces that clients treat more likehigh jewellery bracelets coupled witha watch function.

The $138,000 Le Pont Des Amoureuxwatch, for example, available only toclients who place a deposit to get on a12-month waiting list, boasts theworld’s most time-consuming enamel-ling technique, limiting production toonly five to eight pieces a month.

The $300,000-plus Tourbillonsrequire a 100 per cent deposit, whilethe $120,000 Love & Nature collection,part of the Extraordinary Dials offer-ing, are selling on the basis of draw-ings alone. “They’re really more jew-ellery clients,” says Mr Bos.

He says the response from Asia,Russia and the Middle East, wheretastes are more in line with highly

d e c o r a t e dpieces, is particularly strong.

Piaget has begun delivering its Alti-plano 43mm to clients, who have beenwaiting for more than a year and havepractically guaranteed the timepiecewill not hit the stores. The $199,000Automatic Tourbillon, of which Piagetmakes only three or four a year, isspoken for for the foreseeable future.

A special Altiplano Skeleton versionsold for more than double its estimateat the Only Watch auction and Piagetis expecting high demand for its newAltiplano Skeleton 1200S that willdebut at SIHH in January.

“Very wealthy clients are lookingtoday for uniqueness,” says PhilippeLéopold-Metzger, Piaget chief execu-tive, who views special orders as away of establishing private relation-ships. At Piaget, as with most watchbrands of such a calibre, manufactur-ing is conducted at low volumes – notonly to ensure that each watch is spe-cial, but also, as an economic buffer,to keep overheads low.

Because Piaget makes all its move-ments, it is self-restricted in growthby capacity, says Mr Léopold-Metzger.

According to Jon Cox, a watch ana-lyst with Kepler Capital Markets, theindependent investment boutique, afactor crucial to this uptick indemand is that watchmakers haveincreased their exposure to China,which accounts for more than a thirdof the market.

“There is no inventory problem; infact, many retailers are short ofstock,” says Mr Cox. This is quite acontrast to 2009, when the luxurywatch market fell 20 per cent. MrCox says retailers were overstocked

and aggressively destocked to stayliquid.

In his eyes, the trend for one-offindividual pieces is self-explanatory.

“Not only does the client get braggingrights, but the piece is more likely toretain, if not increase, its value in thesecond hand-market or at auctionlater,” he explains.

As Francois-Henry Bennahmias,Audemars president and chief execu-tive, sees it, the demand for one-offwatches is only just starting.

“Most watch companies in the pasttwo decades have focused on the corecollections but, because of the devel-opment of watch sales, we have seensome very specific collectors thatwant things made just for them,” hesays.

While the one-off business at Aude-mars Piguet is less than 5 per cent oftotal sales, it nevertheless representsa marked increase from the yearsbefore. As Mr Bennahmias notes: “It’llnever be 20 per cent, but a singledecimal point increase makes a hugedifference.”

Exclusive, top notch makers are on a rollLimited editionsDemand for oneoffscontinues to exceedsupply, says Jim Shi

Clockwise from far left: Piaget’sAltiplano, the MasterGraff skeleton,Vacheron Constantin’s Metiersd’Art and Chopard’s LUCTriple Certification Tourbillon

When IWC launched itsastronomical watch, theSiderale Scafusia, this year,it was not enough that the€750,000 timepiece shouldbe the most complex thebrand has produced.

Reinforcing its exclusivitywas the fact that buyers areinvited to choose how itshould look.

The case material andlook of the dial are up tothe buyer and the star chartfilling the reverse side isdesigned to match the heav-ens as seen from specific co-ordinates, again supplied bythe customer.

This is an extreme exam-ple, but the idea of purchas-ing something made to per-sonal specifications is apotent one for watch con-n o i s s e u r s .There is ag r o w i n gnumber ofoptions atdifferent lev-els of themarket.

On thefirst rung, adealer cang e n e r a l l ya r r a n g eengravingsfor about£100. Themanager ofone prestig-ious Londonb o u t i q u esays, how-ever, thatwhile regu-lar engrav-ing requestsare received,the growth ofopen casebacks and thetendency ofbrands toapply their ownwording, logos, production

numbers and seals to casesand movement parts meansthat finding space toengrave is increasingly dif-ficult.

A watch whose legend ispartly founded on the spaceit allows for personal deco-ration is Jaeger-LeCoultre’sReverso, launched in 1931.The watch, created so thatit could be worn safely forsports events with its plainrear surface facing up, waspopular with interwar eliteswhose crests, logos and per-

sonal messages could beapplied.

This year, the Reverso’s80th birthday, Jaeger-LeCoultre has applied mod-ern technology to personali-sation. Via the company’s

website, customers canchoose their own dec-oration from a lim-ited pallet of options,ranging fromengraved initials tohand-enamelled

designs.The web-

site alsoallows theuploadingof imagesto be usedin moreelaboratepersonal-i s e d

designs.The cost

r a n g e sfrom a few

h u n d r e dpounds for basic

engraving toabout €5,000 forgrand feu enamel-ling.

Vacheron Con-stantin has a similarweb set-up for its

Quai de L’Ile watches.A buyer can choose themetal for the case, bezel,flanks and crown, the typeof dial and the strap andclasp, while also having theoption of uploading a

design for engraving. Thecompany says about 1,000combinations are offered forthe watch.

“We are involved in thefield of luxury, and luxuryis rooted in the custom-made concept,” says Chris-tian Selmoni, Vach-eron’s artisticdirector. “Custom-ers are more andmore looking forexclusivity.”

Louis Vuit-ton’s Tam-bour Mono-gram Tour-billon isa n o t h e rh a u t ehorologypiece spe-c i f i c a l l yde s i gnedfor person-alisation. Ap u r c h a s e rcan choosethe type ofgold to be used,while the wheelbridge can beformed into theshape of a per-son’s initials.

Several other high-endhouses, such as Blancpain,Zenith and A Lange &Söhne, are able to personal-ise pieces on request –

Zenith says requests haverisen since the economiccrisis. A Lange & Söhne ismaking a virtue of thesearch for space by revivingthe tradition of decoratingthe tiny balance cockwithin the movement withmicro-engraved patternsand, on request, a person’sinitials.

Cartier also sets greatstore by its ability to per-sonalise, drawing on itsstrength in the jewellerybusiness.

“Our accounting bookshave a book for commissionand a book for stock. It’spart of our culture goingright back and we’d neverchange,” says Pierre Rani-ero, director of image, styleand heritage.

One person in each ofCartier’s design studios spe-cialises in custom orders; aseparate department istasked with managing theseorders, which come in fromaround the world and

number about 1,000 a year.Commissions vary from

the reproduction of a pet onthe dial – the most popularrequest – to a recent assign-ment from a superyachtowner who wanted a Santos100 watch for each of his

crew, in a case of black-ened ADLC, a dial inthe colours of theyacht and anadjusted strap posi-

tion.Piaget is

another manu-facture knownfor its cus-t o m i s e dpieces. It

has cre-ated exam-ples of its

thin Alti-plano watchwith a dia-

mond dial pat-tern based on

the customer’sf i n g e r p r i n t ,

while its PoloTourbillon Relatifcan be created withdecorations rangingfrom images of a

city skyline on thecase to colourful, highly

elaborate patterns in enam-els, precious metals andgemstones.

For the ultimate in exclu-sivity, a completely bespoketimepiece is a possibility forthose prepared to shell outsix figure sums.

Independent watchmak-ers, such as the Isle ofMan’s Roger Smith and Ire-land’s McGonigle brothers,specialise in pieces madefrom scratch to a cus-tomer’s recommendations.

It is a painstaking processthat, with Mr Smith, cantake up to three years, onceyou’ve risen to the top of aseven-year waiting list.

It is also an area Vach-eron Constantin hasbecome involved in, settingup a dedicated studio, theAtelier Carbinotiers, whichproduces about 40 highlycustomised watches a year,and one watch every twoyears that is entirely devel-oped from scratch.

“The demand for such anexclusive and sophisticatedservice is growing year byyear,” says Mr Selmoni atVacheron.

Something for the trulysophisticated connoisseurCustom builtTimothy Barberreports on thetrend for timepiecesyou design yourself

The idea of buyingsomething madeto personalspecificationsis a potent one

Top right: one of VacheronConstantin’s Quai de L’Iletimepieces; below,JaegerLeCoultre’s Reverso


Watches & Jewellery

As individual products,they are simple, made ofplastic and, above all, gen-erally cheap – but a singlelot of Swatch watches couldfetch $6m when it comesunder the hammer at auc-tion house Phillips de Puryin Hong Kong this month.

For his – or her – money,the buyer will stagger awaywith no fewer than 4,363Swatch-related items,mostly watches,amassed during a 20-year collecting spree byPeter Blum, the lateSwiss businessman, andhis wife, Linda.

The collectionincludes all of the mostdesirable, commerciallyavailable Swatchdesigns as well as fac-tory prototypes,hybrid models andproduction variantsthat were neveroffered for sale.

Mr Blum, who ran abig building suppliescompany specialising inpaving slabs, becamehooked on Swatchwatches after his daugh-ter began to form amodest collection dur-ing the 1980s, shortlyafter the first Swatchmodels were launched.

“Our daughter per-suaded us to accompanyher to a Swatch auctionin Lucerne in 1990,” saysMrs Blum.

“After that, Peter couldnot get the concept of theSwatch out of his head and,a few months later, he pur-chased the 1990 SwatchChristmas Special, calledthe Hollywood Dream, for avery high price from aretailer,” she says.

“After that, we attendedevery Swatch auction inEurope and began acquiringrarities through word ofmouth, buying prototypesand variations for historicaldocumentation – manycame from former Swatchworkers and external

designers at a time whenthe people involved in thedevelopment of modelswere allowed to keep theunwanted test pieces.”

The Blums’ ambition wasto establish a comprehen-sive Swatch museum, butthe idea had to be aban-doned because of Mr Blum’sdeteriorating health beforehis death in 2002. The cou-ple did, however, stage aseries of exhibitions inSwitzerland in the mid-

1990s, dis-playing thewatches invitrines illu-minated withspecial, low-tempera-

ture lighting designed toprevent the plastic strapsand cases from fading orbeing damaged.

“The launch of theSwatch watch in 1982 was ahighlight of technology andartistic design,” says MrsBlum. “Peter was deeplyimpressed by the worldwidepopularity and economicsuccess of the product andthat it was both affordableand of high quality.

“It was a first for Switzer-land and proved to be thesaviour of the country’straditional watchmaking in-dustry at a time when itwas under extreme threat

from cheap imports fromeast Asia.”

Among the rarities in theone-lot auction are notableexamples of the longstand-ing relationship betweenSwatch and art, includingMimmo Paladino’s OigolOro men’s dress watch fromthe 1988 spring-summer col-lection; six prototypes cre-ated by Kiki Picasso (akaChristian Chapiron) and aset of the four productionwatches designed by KeithHaring, the Americanpainter.

Also on offer is the firstof 120 examples made of aparticular version of the

fur-t r i m m e dSwatch Puffand Rudolph

Moshammer’sfeathers – awatch surrounded, as thename implies, by a borderof livid-coloured feathers.

The Swatch was thebrainchild of ErnstThomke, former chief exec-utive of Eta, part of theASUAG/SSIH group, cre-ated when the late NicolasHayek merged two of Swit-zerland’s largest watchfirms in the early 1980swhen the Swiss industrywas in dire straits.

After a launch in Dallas

in 1982, which proved to bea false start because of poormarketing and a lack ofstrategy, it was decided topush Swatch as an acces-sory that individuals wouldbuy in multiple examples,and which would cost lessthan the price of the aver-age repair to a standardwatch.

As in the fashion world,regular collection updateswere planned and largesums were set aside forcommunicating the mes-sage about Swatch with theslogan “fashion that ticks”.

Within five years of the1983 relaunch, 268 modelshad been created and 50munits sold worldwide. The

Swatch had become aphenomenon. and the

The financial suc-cess resulting from aretail price 10 timesgreater than the costof production enabledMr Hayek to reinvestin traditional watch-making and, accordingto legend, “save theindustry”.

It was not longbefore Swatchwatches became ascollectable as theywere fashionable,

with Sotheby’s hold-ing its landmark

Worldwide SwatchAuction in Milan inSeptember 1990 atwhich prices soaredbeyond expectations.

Phillips de Pury’sdecision to offer theBlum Collection as asingle lot sets the barat a new level andcould be perceived asrisky – although ifanyone exists who hasboth the passion and

the capital to own theultimate Swatch collection,this is probably the onechance they will get.

The most likely buyer,however, is the Swatchcompany itself.

***The Blum Collectionsale takes place on Novem-ber 24 at 9pm Hong Kongtime at the Four SeasonsHotel, 8 Finance Street,Hong Kong. It will be pre-ceded by the sale of sevenlots of artworks from theSwatch archives.

Family’s obsession withSwatch adds up to a lotCollectionSimon de Burtonon a single saleof 4,363 items

Were the 16th cen-tury preacher andtheologian JohnCalvin still alive,

he would probably more than alittle dismayed at what will takeplace tomorrow in his oldstamping ground of Geneva.

The observance of Sun-day as a day of rest willbe overridden in ashameless stampede tospend, spend, spendon watches – thevery objects thatGenevoise crafts-men turned tomaking afterCalvin bannedthe wearing ofjewellery.

A Sunday inmid-Novemberhas becomethe traditionaltime for Antiq-uorum andSotheby’s to holdtheir flagshipautumn watch auc-tions, with Christie’sfollowing the dayafter.

With the marketbooming for pre-ownedtimepieces, both vintageand modern, it is virtually aforegone conclusion that thesethree sales will gross somethingapproaching $30m between

them – and see a few recordstumble, although economic con-ditions in the wider world meanthat nothing is certain.

Antiquorum will be first totest the water, with its 603-lotsale starting at 10am in theplush Mandarin Oriental Hoteldu Rhone, where its star lotswill, predictably, be watchesmade by Patek Philippe.

The first is a rare and recentlyrediscovered pocket

watch with a 24-hourdial and a highly com-plex repeating mecha-

nism. It was sold in1894 to a Neapolitanbuyer for SFr3,750(it comes with theoriginal receipt)but is now set to

realise about100 times asmuch.

A simi-lar sum(SFr200,000

- Fr300,000)is expected for

both a 1948Patek Reference

1518 wristwatch –the first wrist-watch to combine

the functions of per-petual calendar andchronograph – and athree-year-old Refer-

ence 5959 split-secondschronograph, which is enhancedby a diamond-set platinum case.

Top Rolex offerings include a1950 model with a dial decorated

with a map of the Americas inenamel, which is being sold byits original owner. With enam-elled watches achieving strongprices at the moment, this hasbeen estimated at SFr80,000 toSFr140,000, while one of thebrand’s highly collectable Sub-mariner models made forComex, the French industrialdive company, in 1972, couldmake up to SFr70,000.

No sooner will the gavel havefallen on the final Antiquorumlot, however, than the first ofSotheby’s 270 offerings will

come under the hammer, whenits SFr8m evening sale getsunder way at 8pm down theroad in the Hotel Beau-Rivage.

Again, Patek Philippe leads inthe form of the so-called “ClarinMustad” Reference 1518 from1944.

This pink gold watch on pinkgold bracelet was made to spe-cial order for Clarin Mustad, aNorwegian industrialist whocontributed to the emergence ofthe European car industry. Ofthe 47 pink gold Reference 1518sknown, this is the only one to

feature a matching bracelet andthis design of case lug – hence itis expected to realise aboutSFr1m.

The sale includes two Rolexwristwatches made for signifi-cant postwar leaders. They area sweep seconds model from1950, thought to have been pre-sented to Rajendra Prasad, firstpresident of the Republic ofIndia (SFr180,000-SFr250,000);and a SFr80,000 Oyster Datejustfrom 1955 that was originallyowned by Konrad Adenauer, theformer German chancellor, inwhose family the watch hasremained – complete with a let-ter from Rolex founder HansWilsdorf.

Sotheby’s is also fielding anexceptionally strong selection ofantique pocket watches, one ofwhich dates back to about 1574.

Conservatively estimated atSFr30,000-SFr50,000, this oval“verge” watch (verge referringto the oldest type of mechanicalescapement) is intricatelychased and engraved through-out and in remarkable conditionfor a piece that is almost 450years old.

The current enthusiasm forpocket watches made for exportto China during the 19th cen-tury is addressed with animpressive range of enamelledexamples, as well as othersmade for the Ottoman, Indianand Hispanic markets.

It is Christie’s, however, thatis set to take the lion’s share ofbidders’ money when it stagesits Geneva sale on Monday. Thehouse, which claimed a 69 percent share of the worldwidewatch auction market in 2010,has compiled a 420-lot saleworth a staggering estimatedSFr16m-plus, which includes aunique and pristine 1968 PatekPhilippe Reference 3448expected to fetch up to SFr1m.

The sale includes a further 129Pateks, of which no fewer than26 are vintage, complicated mod-els, possibly the highest numberever to be fielded in a mixed-owner watch sale.

The most valuable is a plati-num-cased Reference 1579chronograph that is tipped tomake up to SFr1.5m. Almost asmuch is expected for a Patekpocket watch from 1932 thatwon a Geneva Observatory prizeand belonged to the legendarycollector Henry Graves.

The products of every otherimportant, high-end watchbrand from A. Lange& Söhne toZenith will also be up for grabs,notably in an array of morethan 100 modern pieces that willbe offered without reserve.

James Bond fans will haveeyes only for one lot, a RolexSubmariner designed to be wornby Roger Moore in the 1973Bond film Live and Let Die.

The watch apparently fea-tured a “buzz saw” bezel and abullet-neutralising magnet –which Bond put to good use as adevice with which to remotelyunzip Solitaire’s dress. Beingsold with construction drawingsand signed photographs fromthe making of the film, thewatch is estimated atSFr200,000-SFr400,000.

Horolophiles who fail in theirmission to secure a wristwatchat the Geneva auctions will,however, have plenty of otheropportunities to buy in London,Hong Kong and New Yorkbefore the year is out.

Bonhams, for example, willhold no fewer than four salesover the next month, endingwith a £2m event in London onDecember 14, which includesthe largest single offering ofPatek Philippe watches to comeunder the hammer in the UKcapital.

Big ticketitems atthe autumnauctionsGeneva salesThree houses areholding events withintwo days, writesSimon de Burton

Bond fans will haveeyes only for one lot –a Rolex Submarinerdesigned to be wornby Roger Moore in thefilm Live and Let Die

Christie’s is set to takethe lion’s share of

bidders’ money. It has aJames Bond Rolex

Submariner on its books

Watch AuctionsBefore ChristmasAntiquorum(antiquorum.com)November 13, GenevaDecember 7, New York

Bonhams (bonhams.com)November 23, London(Knightsbridge)November 27, Hong KongDecember 8, New YorkDecember 14, London(New Bond Street)

Christie’s (christies.com)November 14, GenevaNovember 16, London(South Kensington)November 30, Hong KongDecember 16, New York

Phillips de Pury(phillipsdepury.com)November 24, Hong Kong

Sotheby’s (sothebys.com)November 13, GenevaDecember 6, New YorkDecember 13, London

Watches of Knightsbridge(watchesofknightsbridge.com)December 10, London

(Blum Swatch collection,see story below)


Watches & Jewellery

Readers of the Septemberissues of lifestyle magazinesmay have noticed celebri-ties Kelly Osbourne, RoseMcGowan and PamelaAnderson proclaiming how“over” heavy metal theyare.

The three are not disa-vowing their rock and rollties so much as tying them-selves to a new campaign;one for the precious metalpalladium.

Hallmarked just last yearin the UK, the newly-anointed jewellery materialseems to be everywhere, yethow many consumers actu-ally know what the metalis?

In September, the Palla-dium Alliance International(PAI) launched a big cam-paign to create awarenessand desire among consum-ers and retailers. Can con-sumers be persuaded tochoose palladium over suchclassic options as whitegold for pieces such as wed-ding and engagement rings?

Brooke Brinkman,spokeswoman for the Palla-dium Alliance, says: “Thefirst months are about justletting people know there’sa choice. Our industryworks at a very slow paceand there needs to bedemand before there can besupply. There need to beretailers where consumerscan actually purchase it.”

One reason palladiumcould catch on is that it isfrom the same group asplatinum – metals knownboth for strength and natu-ral whiteness.

Palladium also weighs alot less than platinum. Thishas designers, especiallythose interested in playingwith larger pieces alreadyexperimenting with themetal. In March, VivienneWestwood created a palla-dium jewellery collection.

Johnny Rockets and Han-nah Martin, both of themLondon jewellers, haveworked with palladium.

This year, Ms Martinjudged students at CentralSt Martin’s art school inLondon who participated ina competition to have thePAI cast, make and promoteits pieces.

Simon Fraser, coursedirector of MA Design, says:“Because there aren’t a lotof pieces being made yet inpalladium, it’s an opportu-nity to define how it will beused in the [jewellery]industry. There is a histori-cal understanding thatweight equals value butthat’s a perception.”

Innovation aside, how-ever, if palladium is to com-pete with other preciousmetals widely used forbridal or other large jewel-lery purchases, it will needto be adopted by big finejewellery retailers. Themetal has had one failedattempt in the marketplacebefore.

Fortunoff, a US retailer,ventured into palladiumwith a collection in 2008.Many pieces either did notsell or were returned.

The flaws were notexactly an industry secret.Ms Brinkman says: “Therewas a strong technical com-ponent in that failure.There was no standard inhow the metal was used, sothere were technical prob-lems with pieces, whichhave since been resolved.Jewellers were not familiarwith how to work with it,size or set it.”

Success this time there-fore would seem to dependon several factors.

One will be obtaining ahallmark in the US, estab-lishing a standard for themetal in the most robustwedding ring marketplacein world. A second wouldbe the education of manu-facturers on working withthe metal, providing soldersand tools invented in thepast three years. Third,with many consumers mak-ing decisions at the point ofsale, training on the expla-nation of palladium would

need to be provided for thethousands of sales people atthe counters of any retaileroffering the metal.

Before its consumer cam-paign, the PAI hadlaunched a trade campaign.

Its 10,000 Facebook fansinclude retailers who seemprepared to promote ametal that is much rarerthan white gold, not tomention environmentallyfriendly.

And the PAI is ready tobegin training, alreadyintroducing palladium toAmerican designers withstrong bridal collectionssuch as Todd Reed andSimon G.

But some retailers indi-cate that it could take more

than a few years. Inga Vas-cenkova, brand manager, ofItsHot.com, a retailer thatspecialises in diamond andcustom design jewelleryand sees orders from allover the world, saysdemand does not yet exist.

She says: “The market isnot there. The consumerneeds to feel a connectionto palladium as a desirablemetal. I started gettingpress releases in July andI’ve had maybe one requestout of thousands of custom-ers since then.”

Josh Kaufman of MartinFlyer, a jewellery manufac-turer specialising in bridaland classic diamond jewel-lery, says the metal is won-derful for men’s weddingbands but the brand is notprepared to make 100 percent palladium engagementrings.

“No one has been makingpalladium jewellery for 20or 30 years, so we don’tknow how it wears in thesettings. In micro-pavérings, the setting has to bevery secure.

“In today’s society no onewants to take big risks,especially when the alterna-tive is very good.

“The only way 100 percent palladium engagementpieces will really catch onis if the price of gold staysabove $1,600 an ounce andplatinum rises above $2,000an ounce.”

Palladium’s secret wea-pon could thus be the econ-omy.

At the time of writing,gold was $1,800 an ounce,platinum $1,600, and palla-dium a mere $650.

So much forheavy metal indifficult timesPalladiumSyl Tang looks ata potentialreplacement forgold and platinum

‘No one has beenmaking palladiumjewellery for 30years, so we don’tknow how it wears’

A piece from Vivienne Westwood’s ‘Get a Life’ collection Getty

When mechanical watchesre-established themselvesin the wake of the quartzboom, weight was seen

as a sign of quality.Heaviness in a watch meant a cer-

tain satisfaction – the more preciousits metal and more numerous its mov-ing parts, the weightier, rarer andmore valuable the timepiece.

Lightness was the domain of thequartz watch, its cheap materials anddisposable circuitry making it asweightless as it was soulless.

The opposite is increasingly thecase now. The instinct to reduce massand eradicate the sensation of wear-ing a watch, while simultaneously

maintaining complexity and robust-ness, has become the technical frontline. It has produced several ultra-thin, and by extension light, watchesdesigned to slide stealthily beneaththe shirt-cuff, from brands such asPiaget, Vacheron Constantin andRalph Lauren.

On a different tack, it is generatingexperiments in materials at the cut-ting edge of industrial science andwatches that barely weigh more thantheir straps. Weightlessness has itselfbecome a benchmark of prestige.

The trailblazer here is AudemarsPiguet, the brand that introduced theidea that there was more to luxurythan gold and platinum, with its steelsports watch, the Royal Oak, in 1972.That remains one of the most recog-nisable timepieces on the market, butit is the Royal Oak’s macho, oversizedyounger brother, the Royal Oak Off-shore, that is the proving ground forAP’s wonder material – forged carbon.

A moulded and compressed form ofcarbon fibre that originated in aero-space engineering, the substance is astough as it is exceptionally light, and

results in an eye-catching marbled fin-ish. The Royal Oak Offshore GrandPrix chronograph, released last yearwith a forged carbon case and forgedcarbon and ceramic bezel, weighs just120g.

But that is positively leaden com-pared with various of the watches cre-ated by Richard Mille, the leadingindependent producer, particularlythe RM027 tourbillon sported by ten-nis superstar Rafael Nadal, whichweighs in at a barely-there 20g. It isthe lightest of several watches in MrMille’s collection that weigh less than50g.

“Cars, aircraft, satellites – all areextremely concerned with lightness,”says Mr Mille. “Light products makeour lives more comfortable and morefun. The challenge is that it costsmore to produce light products thatretain their strength and functionalityunder all conditions.”

Achieving strength and functional-ity in a 20g tourbillon strapped to theflying wrist of a tennis ace wouldseem a ludicrous notion, but Mr Milleachieved it. The case is made from a

carbon composite, while movementparts are formed from titanium and alithium alloy – the movement itselfweighs just 3.8g. An asking price of$500,000 for one of the 50 models beingproduced is not just a reflection ofexclusivity but of the technologicalchallenge – something that runsthroughout Mr Mille’s collection.

“In the beginning, it was sometimeshard for people to understand allthese aspects that are not clear to thenaked eye,” he says. “[Using] carbonnanofibre required a whole newapproach to fastening parts, and actu-ally wears down the machines fasterthan metal does. Just 20 baseplatescan be made before the tools need to

be replaced; they just wear down tonothing. It was a long and costlylearning process.”

Using groundbreaking technology tocreate dynamic, super-light watches isa central tenet of Mr Mille’s brand.The same would not be said of Fran-cois-Paul Journe, maker of some ofthe world’s finest watches but notsomeone associated with lightness orsportiness. The arrival, therefore, of asports watch from Mr Journe in alu-minium, must rank as one of theyear’s more peculiar launches.

“I admit I said I would never do asports watch,” says Mr Journe, “buton the request of a very importantclient totally involved in sport, whowanted to have an ultra light watchwith a high horology movement, Istarted to think – so much so, that anew collection, SportLine, is born.”

For the watch in question, the FPJourne Centigraphe Sport watch, MrJourne lighted upon aluminium asmuch for its novelty and the chal-lenges it presented as for its lightness.

“It’s a light alloy, but I had toperfect different methods of special

processing in order to make it scratch-resistant and give it anti-corrosiveand anti-allergic properties,” he says.

Remarkably, since Mr Journe’s sig-nature rose gold movement would betoo heavy, he also had to fabricate analuminium movement, a fiercely diffi-cult task. After Mr Journe donatedthe original piece to an auction forJapanese earthquake victims, collec-tors persuaded him to produce more.

“It’s a great change in our world –25 years ago there was nothing likethis,” says Pierre-André Finazzi,founder of British-inspired Swissbrand Ellicott.

The company is producing its latestwatches in carbon epoxy, anotherlight, durable material, which has pre-viously been used to make radar-resistant Stealth bombers.

“Customers are very sensitive tohigh-tech, non-conservative watches,and rarity has prestige. You are mak-ing something rare, with the fusion ofremarkable materials and innova-tion,” Mr Finazzi says.

Lightness, it seems, really hasbecome the new luxury.

When lightness of being is the new luxuryThe trouble with weightTimothy Barberreports from horology’stechnical front line, whereheft is no longer seenas a sign of quality

Ace: Richard Mille’s RM027 tourbillon, sported by tennis superstar Rafael Nadal, weighs 20g. It is the lightest of several watches in Mille’s collection weighing less than 50g Getty

Lightness was oncethe domain of the quartzwatch, its cheap materialsmaking it as weightlessas it was soulless


Watches & Jewellery

F ew observers of the watchscene could have failed to reg-ister Patek Philippe’s long-running advertising cam-

paign featuring what appears to be afather and son, in varying situationsbut always with the slogan aboutnever owning a Patek, merely lookingafter it for the next generation,

The campaign has been running invarious forms for more than 15 yearsbut it was not until last year that thecompany turned its attention toanother potential customer categorywho might wish to pass on a goodwatch: women.

This also involves pairs, with theyounger one anything from an impos-sibly elegant teenager to a little girl atthe stage of trying on mummy’s jew-els. The slogan – “something trulyprecious holds its beauty forever” – ismore oblique, but the message is thesame.

Add to this Frédérique Constant’sdecision to market watches specifi-cally for teenage girls to wear along-side their mothers’ models – theyalready did father and son pairs, as doIWC – and it is apparent that there isa new way of tapping the growingfemale interest in “serious” watches.

Gary Mead, Audemars Piguet’s UKchief executive, describes it as “theone remaining great area for potentialexpansion”.

It is early days yet, as even themost basic of surveys reveals. Thereare few men who do not have – eitheron their wrist or in a drawer some-where – their father’s or grandfather’swatch, often a testimony to thelongevity of timepieces from brandssuch as Omega or Longines – middle

market yet still considered worthy ofhanding down.

Women react differently. Most withan inherited watch say shamefacedlythat it is small, quartz, out of fashionand languishing unworn. However, afew own up to a family cocktail watchthat they wear for special evenings.

But with sales of mechanical andeven complicated watches to womengrowing, especially in Asia, surelysuccession could be increasingly a fac-tor in justifying spending more on asuperior model?

Patek Philippe says it has noticed adifference in the past decade,“because of changing consumer atti-tudes towards traditional and authen-tic products”, says Jasmina Steele,communications director.

“We believe our customers of bothsexes share the same brand knowl-edge and values, underlined by theincreasing interest from women intechnical watches, so we communi-cate to men and women on commonground, while expressing the emo-tional message in different ways.”

Furthermore, “we find increasinglythat more women are considering

buying a Patek Philippe watch as aninvestment, in which case the possi-bility of passing it on to their daugh-ters is a criterion,” Ms Steele says.

The brand has recently added grandcomplications for ladies, including aminute repeater, a world timer and asplit seconds chronograph, though, asMs Steele points out, “we make morefor men and demand is higher thanproduction, so women have to bepatient” – perhaps a means of makingthese rare pieces more desirable andinvestment-worthy still.

Other brands have anecdotal evi-dence. Mr Mead says: “Traditionally,everywhere in the world, fathers leavewatches while mothers leave jewel-lery, but the growing numbers ofladies’ fine watches will one day be anextension of that.”

Breguet says it has noticedinstances of mothers choosing awatch with their daughters –although the watch is ostensibly forthe mother, the inference for thefuture is clear. Omega says the best-seller in the saturation-coverage Lady-matic range is the comparativelyexpensive gold bracelet version seen

by customers, says a representative,as “a timeless design that will last forgenerations and play a meaningfulrole in family stories, as fine jewelleryhas always done. A top-qualitymechanical watch is no different”.

At Cartier, Pierre Rainero, creativedirector, says: “When clients choose aprecious object, they always thinkabout transmission to the next gener-ation. There is pride in passing onsomething beautiful with affection,and this certainly applies to women’sprecious watches. Their first consider-ation is the pleasure the object givesthem, but then they look at the cost,and the ability to pass it down maybe a factor.”

It will be an increasingly signifi-cant factor if Mr Mead’s predictionsprove right. “UK growth at Aude-mars Piguet has been largest inwomen’s watches this year,” hesays.

“Now women have the meansand are starting to follow theirEast Asian counterparts,who were already intomechanical watchesand now wantcomplications.

“ W o m e nprefer func-tions theycan seeworking. Idon’t thinkthey wouldbuy a per-petual calen-dar, but aworld timeris practicalfor their trav-elling lifestyleand we have alady client whobought a men’st o u r b i l l o nbecause of its‘heartbeat’.

“Design isimportant to them,like our Millennary

pieces which work well on the femalewrist. If a woman is spending tens ofthousands of pounds on a watch, shewill think about its future, especiallyif she already has a number ofwatches for different occasions. Pass-ing the piece on may justify the pur-chase.”

Oddly, the one brand not subscrib-ing to this viewpoint is FrédériqueConstant, perhaps because its pricesare not in the investment league. Thecompany’s Junior Ladies range, aimedat girls of 12 to 16 and in steel, somewith diamonds, and with quartz move-ments, are intended to encouragewatch-buying by mothers and daugh-ters together.

“For most women, the value of aluxury purchase is the excitement itcreates for oneself,” the company

says. “The Junior version isvalid, because who would

like to say to one’schild, ‘wait ‘til I’mgone’”?

Judging by all thoseinherited, function-

ing, middle mar-ket men’swatches, somelucky youngladies may even-tually own boththe Junior and

their mothers’models.

The handmedowns that a girl might wantGeneration gameAvril Groom considersthe potential forinheritance tacticswith a feminine side

Inheritance tracks:the extremely successfulmarketing aimed at men

might be adapted forwomen as they show a

keener interest in watchesCorbis/Alamy

In 1927, when a young Brit-ish swimmer called Mer-cedes Gleitze tried to swimthe English Channel, theexpectant eyes of a nationwere upon her.

Before she set off, HansWilsdorf, the co-founder ofRolex, offered her a proto-type of the brand’s newwaterproof Oyster wrist-watch – if she wore onearound her neck during theswim. Ms Gleitze failed theattempt and was pulledcomatose from the water.Yet the little gold watchhad kept perfect timethroughout.

The hype was unparal-leled, the Oyster waslaunched a month later andRolex established itself as abrand peerless in its crafts-manship. It was the birth ofcelebrity product endorse-ment, a glamorous strategythat has remained a pivotalpart of luxury advertisingever since.

In recent years, however,use of brand ambassadorshas been receiving a quietre-evaluation, largelybecause of a growing senseof unease regarding compa-nies’ ability to control thereliability – and reputations– of high-profile campaign“faces”.

“A successful brand-to-brand partnership betweenperson and product hasalways been based uponsharing common values,”says Graham Hales, chiefexecutive of Interbrand.

“It is crucial that compa-nies do extensive due dili-gence on their celebrity ofchoice: the face must fit thebrand and create the rightassociations.”

Sometimes, extensivebackground research is notenough, and a brand gets itwrong. The Tiger Woodsscandal in 2009 shocked theluxury marketing industryto its core. On the surface,Woods was a model spokes-man for LVMH’s Tag Heuer– a golfing hero and familyman.

His sordid double lifeshattered much of the foun-dation of his Tag partner-ship. It had a profoundimpact on subsequent cam-paign strategies.

“There is a fundamentalnervousness now about theuse of celebrity endorse-ment,” says Suzy Radcliffe,luxury specialist at WolffOlins. “It’s been exposed asa superficial shortcut topromoting certain values.”

Certain brands are adapt-ing their approach by alter-ing the spectrum of activitywithin which “faces” canparticipate in a campaign.There is a move away fromvocal and active spokespeo-ple to just faces or images.Furthermore, there is focuson teams rather than indi-viduals.

Bulgari’s campaign forthe Endurer ChronosprintAll Blacks, featuring theWorld Cup winning NewZealand rugby team, encap-sulates this perfectly.

The slick monochromevideo campaign sees theimage of a tattooed Maoriwarrior’s face, interspersedwith flashes of similartribal marks on the face ofthe watch dial. The playersperform the traditionalhaka but, beyond that, are

completely silent. To some,the unlikely alliancebetween new world rugbyand old Italian luxury,devoid of geographical orhistorical connection andwithout explanation, seemsstrained. Bulgari disagrees.

“The All Blacks are thebest team in the world.They don’t need to bespokesmen,” says GuidoTerreni, CEO of BulgariWatches and Jewellery.

Jason Beckley, globalmarketing director of Dun-hill, shares a similar out-look. “The Voice isn’t aboutpromoting product – it’sabout promoting Dunhillvalues,” he says of hisbrotherhood of brandambassadors, who includeRanulph Fiennes, MichaelGrandage and Sir DavidAttenborough. These menhave made headlines intheir lifetimes, but neverdominated them.

“Market research showed

youth, beauty and appear-ance were all secondary toachievement in the eyes ofmen.”

Zenith also puts uncon-ventional achievement atthe forefront of its cam-paigns, with its use of ordi-nary men who do extraordi-nary things. “They givelegitimacy to our legacy,”says Jean-Frederic Dufour,CEO of the brand on his useof sailors, climbers andexplorers.

“I’m not interested inmovie stars. We need tobring added value throughauthenticity. These individ-uals have real stories to tell– if we want the customerto dream, then their fairytale must lie in the image infront of them.”

Tim Delaney, chairman ofLeagas Delaney, the Lon-don-based advertising com-pany that created the PatekPhilippe “Generations”campaign, echoes MrDufour’s sentiments.

“You can force fit anyimage on to two sets ofmerging values, but celeb-rity endorsement misses thepoint of thoughtful advertis-ing,” he says. “The signifi-cant relationship is not thatof star and brand; it isbetween brand and con-sumer.”

Mr Delaney believes thatthe use of high-profileambassadors in watch cam-paigns detracts from theproduct – the two forcesstart to compete againstone another. It is one rea-son why he chose to usearchetypal images of fatherand son when the genera-tions campaign launched 15years ago.

“Pictures are simply car-riers, stylised conduits tovaluable, recognisablemoments that unlock emo-tional potential within thecustomer. We don’t dependon superficial values – oursare generational, they letcustomers create a heritageof their own. Wealthy peo-ple have depth and feelingstoo, and that’s somethingthat many brands seem tohave forgotten.”

The lessons of Tagand Tiger WoodsEndorsementElizabeth Paton ona switch in adcampaign strategies

’Youth, beauty andappearance wereall secondary toachievement in theeyes of men’

Winners: focus is now on teams rather than individuals Getty


Watches & Jewellery

Pink diamonds have beenin the spotlight of late.Livia Firth wore CalleijaArgyle stones to the

Oscars this year when her hus-band Colin collected his Acad-emy award. Oprah Winfrey worethe pink gems for the finale ofher television show. JoannaLumley, the actress, and Yas-min Le Bon and ClaudiaSchiffer, the models, haverecently worn them.

At the same time, the col-oured stones continue to shatterrecords. The sale of the mostexpensive jewel took place lastNovember, when Laurence Graffbought a 24.78 carat pink dia-mond for $46.1m.

Lisa Klein, executive vice-president of Leviev, the dia-mond jewellery retailer, says:“Pink diamonds can start at$150,000 and go over $4m for asingle stone.” With that muchfanfare, most would considerpink diamonds to be an out-of-reach purchase.

At least two companies areseeking to change that. Over thenext year, Jewels of Ocean is torelease a collection of pink dia-mond pieces ranging from $5,000to $500,000 that includes chande-lier earrings with a danglingpink freshwater pearl and apink gold cable bracelet with asprinkling of pink diamonds.

While $500,000 might not bean everyday purchase, RaymondHakimi, owner of Jewels ofOcean, points to the $5,000 entrylevel item, a pink butterfly pen-dant, as a piece for “everyyoung girl and woman toacquire”.

Just in time for the holidaysand the annual December toFebruary spike in wedding pro-posals, Bombay Jewellery Manu-facturers will launch its collec-tion, Naturally Pink, at Zales,the US jewellery retailer withmore than 750 stores.

The collection of 18 styles ofrings, necklaces and pendants

will be priced in the low thou-sands.

Nihar Mehta, creator of Natu-rally Pink, says: “We focused onrings and mixed white and pink,so people own a pink diamondpiece, but it is not quite asexpensive as if it were madewith all pink diamonds.”

However, bringing pink dia-monds to the masses, may provemore difficult, even if price con-siderations are ignored. Theyare second rarest only to red/purple diamonds.

Each year, 160m carats of

rough stones of all hues aremined. Of those 30,000 are pink,representing 0.19 per cent ofproduction.

Complicating matters, at least90 per cent of the world’s pinkdiamonds come from Rio Tinto’sArgyle mine in Western Aus-tralia, which is scheduled toclose in 2019, when geologicalsurveys indicate it will havebeen exhausted.

Making supply even moreproblematic, a rough diamondcut incorrectly can reveal differ-ent shades, so expert craftsman-

ship is required. A year’s worthof final-product pink diamondswould fit in the palm of one’shand.

Even at price points wellunder the $1m mark, demand ishealthy. Two-and-a-half yearsago, when Leviev placed a blackand white advertisement for apair of $40,000 pink diamondcufflinks in the New YorkTimes, they sold instantly,sight-unseen to a customer overthe phone.

Naturally Pink’s Mr Mehtatested his belief that a mass

market existed for pink dia-monds in the UK in 2009. Thecompany partnered with a cli-ent, crafting a ring with fourtiny pink diamonds. The duoput together a small direct mailcampaign expecting to sell 50rings at £800 each. Orders camein for 300 rings. It was a curseand a blessing.

Unable to fulfil orders past hisoriginal supply, Mr Mehta real-ised he had stumbled on to anuntapped market at the heightof the recession.

So how he will address the

combined challenge of limitedsupply for a high-cost productthis time round?

One approach may be via thelevel of pink. Alexander Eblen,director of fine jewellery at Les-lie Hindman Auctioneers says:“While diamonds occur natu-rally in a huge variety of col-ours, specific stones are highlyvalued only if they combine adesirable colour with apprecia-ble intensity.”

Both Mr Mehta and Mr Hak-imi’s collections will featurenaturally pink diamonds, but

possibly not intense or vividpinks.

But Ana Martins, a New York-based fine jewellery and watchpublicist, says it will not be thatsimple: “The challenge for anydesigners wanting to makesmaller pink diamond pieceswill be finding a supplier who iswilling to break up the rawstones into smaller cuts, so theycan become more accessible.”

Both Jewels of Ocean andNaturally Pink have expansiveplans. Mr Hakimi expects salesto rise next October duringBreast Cancer AwarenessMonth and is already preparingproduct for the Breast CancerResearch Foundation’s productpages. Naturally Pink’s agree-ment with Zale’s is non-exclu-sive and Mr Mehta has indicatedhe is open to expanding the dis-tribution worldwide.

To that end, the companieswill face challenges of consist-ent output.

Martin Katz, a Beverly Hillsjewellery designer known forhis diamond pavé work, says:“There are a lot of differentshades of pink and if you’re try-ing to do pavé, it would be hardto keep consistency. Not everypink is equal.”

While it would not be impossi-ble for another mine to befound, Ms Klein at Leviev says:“Pink diamonds are basicallyfound in Africa, in Brazil andeven in Russia.”

Even were a new mine to befound, it would take at least adecade from discovery of adeposit until diamonds came onto the market. Ultimately thetwo companies may need to tar-get where they want to sell theirlimited supply.

Robyn Ellison, communica-tions manager for Rio Tinto Dia-monds, says: “There are signifi-cant differences globally, whenit comes to pink. Japanesedesigners have always lovedworking with smaller pinks,what we call, melée.”

Companies wanting to makepink diamonds “everyday” mayneed to choose whose everydayit will become.

Attempt to make the exotic more ‘everyday’Pink diamondsTheir rarity andexpense may preventthem becomingmore popular,writes Syl Tang

Pretty in pink: most wouldconsider pink diamonds tobe an outofreach purchasebut two companies aretrying to change all that

A diamond may be forever,but not for every bride.Designers are increasinglycreating alternatives to thesolitaire engagement ringand eternity band.

Rosanne Karmes, thedesigner and creator at Syd-ney Evan, says what usedto be an anomaly is nowenough to sustain a range.

“The first ring I designed,a huge pavé diamond discoball, was meant to be a playon the idea of the womanwho wants a big diamondbut can’t afford a solitaire.Then, it actually sold as anengagement ring!”

She expanded to otherwedding designs, such as ascript diamond pavé “love”.

Another design, a locketring, was sold to a Britishcouple at the Wynn Hotel inLas Vegas on a day whenMs Karmes was in her storethere. “He was slipping an‘I love you’ note into it. Thebride works at Liberty ofLondon, which says a lot,considering she’s exposedto so many choices. Theyhad just eloped.”

Economic troublesmay be promptingcouples to skip abig wedding or notspend on the largesolitaire. Bridalmagazines reportedthat engagement ringprices remained high at£2,090 in the UK and $6,348in the US throughout2008-09, but indications arethat 2010-11 figures mightbe much lower, as couplesmake adjustments for theeffects of the recession.

After a price-consciouscouple asked Ariel Gordon,the jeweller, to add pavédiamonds to her Love Knotring, she realised it madesense to offer it as part ofher range. The ring quicklybecame a best-seller.

Where brides once startedwith an expensive selectionand adjusted expectationsdown to the affordable, now

the trend might be upgrad-ing a budget-friendly piece.

Ms Gordon’s rings arecarried at stores such asHenri Bendel, but not onlyboutiques are adopting thetrend. Middle market retail-ers are also offering non-traditional rings.

J Crew in the US, whichlaunched its wedding andspecial occasion boutique inMay 2010, was the firstplace to sign up for vintage-inspired jewellery fromLulu Frost’s CODE collec-tion, a series of 14k goldnumber rings favoured bybrides and priced at $690.

Lulu Frost’s designer LisaSalzer, who has long beenrefashioning inheritedpieces for engaged friends,says: “A classic solitairehas become so homogenous.We’ve been persuaded forthe past 40 years by the dia-mond companies that thisis what you have to have.

“But women are lookingfor something from beforethis marketing and com-mercialisation.

“Women have been usingnumbers to symbolise thedate of their wedding or theday they met their hus-band. I’m planning to do alot of rings that don’t use

diamonds but stoneswith meaning. The Victori-ans could read jewelleryalmost like a book. Forexample, an opal signifiespassion for a long-term rela-tionship”.

Perhaps this historicalperspective sparked thetrend. And couples nowhave access to thousands ofwedding blogs.

Tom Mora, J Crew’s headof women’s design, says: “Ifyou look through the dec-ades, there was a specific

look [for weddings] eachdecade, but now if youresearch on the internet,there’s a 100 looks.”

With the wedding blogsector garnering about$10m a year in advertisingrevenue, perhaps the pres-sure is on for designers tocater to many styles.

When Anna Sheffieldlaunched her bridal andcommitment collection inpartnership with Israeli dia-mond manufacturer EFD in

September, she made sureher range – which includesthe Hazeline, a yellow orrose gold metal solitaire inlieu of a diamond – waspriced from $695 to $30,000.

But price and technologyare not all that is behindthe trend; a cultural shift inthe definition of couplesmay also be a factor.

In 2010 the American Cen-

sus reported a 13 percent rise in the number ofopposite-sex unmarried cou-ples sharing living arrange-ments. At that time, same-sex marriage was becominglegal in Norway, Sweden,Portugal, Iceland andArgentina, as well as fiveUS states. Luxembourg, theUK, Uruguay, Denmark andNepal have announcedintentions towards gender-neutral marriage bills.

Ms Sheffield says: “Whenyou have an unusual union

and you want to expressyour love for one another,you want to do it in a crea-tive way.

I chose the word ‘commit-ment’ because it should bedefined by the people in theunion. It can be for thosewho aren’t interested inbeing properly married orfor love between same-sexcouples, so we did ringsthat could fit all categoriesof commitment.”

For some, alternative isthe word. Ken and Dana’sRights Collection, a NewYork atelier, features anumber of Supreme Courtcases about equal rights.

Same-sex couples aredrawn to the ringsinscribed with the casenumber for Romer vsEvans, the 1996 case whichprotects against discrimina-tion based on sexual orien-tation, and interracial cou-ples buy the rings inscribedwith Loving vs Virginia,which legalised interracialmarriage in 1967.

Dana Chin, the designer,says: “There is a power inthe connection to thosecases and acknowledgingthat it has taken effort toget where we are today, anda reminder that there isstill work to be done.”

What chunk of the multi-billion-dollar bridal

market these rangescan take remains tobe seen, butdemand seems tobe there. Barney’sJapan has ordered a

custom Lulu Frostwedding collection

and Ms Salzer willlaunch a full alternative

engagement and bridal col-lection by autumn 2012.

Ken and Dana have beenand sales are climbing withorders from Australia, Ire-land, Poland, and the Neth-erlands.

And in the two monthssince Ms Sheffield launchedher collection, it has beenpicked up by Liberty ofLondon, Love, Adorned inNew York, Roseark in LosAngeles, Fred Segal Rocksin Santa Monica, SeptièmeÉtage in Geneva, andBonadrag online.

Syl Tang runs [email protected]

Cultural shift sees manyshun traditional settingsAlternative ringsCouples choosetheir own way toshow commitment,writes Syl Tang

‘When you have anunusual union andyou want toexpress your love,you want to do it ina creative way’

Rosanne Karmesdesigned the scriptdiamond pavé ‘love’


Watches & Jewellery

The recent foray byMeissen, the 300-year-old Germanporcelain manufac-

turer, into jewellery hascontributed to the com-pany’s double-digit growthand expansion in Asia.

But its jewels are not theonly ones to emerge from aEuropean heritage brandwith a history steeped inhandcrafted tableware andobjects for the home.

Lalique, the French glasscompany, which has alsojust introduced jewellery, isfamous for its naturalisticcrystalware.

Fabergé heralded a newera for its brand in 2009when, under the ownershipof Pallinghurst Resources,owner of ethical emeraldminers Gemfields, itsecured involvement fromthe remaining Fabergé fam-ily members and began pro-ducing daring jewellery col-lections, shown this year atthe Royal Academy in Lon-don and during Paris Cou-ture Week, with watchespresented at BaselWorldthis spring.

Fabergé is best known forits priceless porcelain andbejewelled Easter eggs,commissioned by the Impe-rial court of Russia between1885 and 1917.

All three companies –Meissen, Lalique and Fab-ergé – are brandishing theircredentials and drawingattention to their historicassociation with jewellery,determined to attract a newgeneration of customersand boostsales fig-u r e s ,e v e nwhile somei n d u s t r yi n s i d e r sexpress scepti-cism.

C h r i s t i a nKurtzke, Meis-sen’s managingdirector, says thecompany firstmade pen-dants of

p o l -i s h e d

porcelain,diamond and

gold for chainsand bracelets back in 1767.

Today, the goldsmithingand setting is crafted byMeissen in Italy and someof the porcelain in the jew-ellery is hand-painted. It issold online and in 20 retailstores. Mr Kurtzke saysinterest is being shown byAsians long familiar withMeissen’s European luxuryheritage and others new tothe brand.

“René Lalique used pre-cious stones in his jewellerybetween 1885 and 1905 and,soon after he showed hispieces at the World Fair in1900, he received ordersfrom the English court andthe courts of Russia, Italyand Spain,” says Anne Kaz-uro, Lalique’s head of jewel-lery.

Today’s offerings arepriced at between €300(£400) and €3,500 and madefrom silver, nine and 18carat gold, crystal, andwhite and champagne dia-monds.

The jewellery draws onoriginal Lalique motifs,including cacti, dragonsand butterflies, and incor-porates enamel with con-trasting transparent andvelvety sanded glass.

“ T h r o u g hfine jewel-lery, weh o p et os edu

ceay o un g e rclienteleand build alifestyle brand.Like Hermès, we envisagepeople decorating the tablewith Lalique and then liv-ing the brand daily through

our jewellery and clothing,”says Ms Kazuro, whosemission is to appeal to30- to 45-year-olds.

She reports excel-lent feedbackfrom the UKmarket, includ-ing from theCompany ofMaster Jew-ellers, theinfluentialB r i t i s hwatch andj e w e l l e r ybuying group.

“The reasonso many compa-nies are getting onthe jewellery band-wagon is saleability,” saysStephen Forward, founderof Chicago-based antiquejewellery specialist BeverlyR, which sells original Lal-ique and Fabergé jewellerywhen it becomes available.

“Jewellery is like fashion.If you can afford to, youbuy everyday wear, occa-sion wear, pieces for differ-ent outfits, fun and funkypieces. But how many din-ner services or vases do youneed and how much roomdo you have to displaythem,” he asks.

“Jewellery is a goodseller, and in the earlierperiods, when most wasbeing handmade, jewelswere mini works of art intheir own right.

“It’s now crucial thatworkmanship remains atleast as important asprofit.”

As gold prices have sky-rocketed in recent years,the search for alternativedesign solutions and mate-rials to pure precious met-als has intensified.

René Lalique was knownfor innovating by juxtapos-ing precious and less pre-cious gemstones and met-als. But are companies

using theirillustriousnames for

o v e r l ycommercial

projects?“Nowadays, a

rich bride wouldmuch prefer a£40,000 tiara to a

£100,000 porcelainegg,” says PhillipBodenham, luxury

marketing special-ist and founder

of SpringL o n -d o n .“The lux-ury marketis very competi-tive. I questionwhether this is a cynicalmove.

“Are brands going forjewellery for the love of itor to survive – did theyjump or were they pushed,”asks Mr Bodenham, whopreviously worked for Ver-sace, Gucci and Mulberry.

But Geoffrey Munn, man-aging director of Wartski,the Mayfair vintage jewel-lers, and an expert valueron the BBC Antiques Road-show, believes that porce-lain jewels are a positivemove.

“Prince Albert gaveQueen Victoria as a wed-ding present porcelainflower jewellery, with goldbeads and it was also fash-ionable in the 1940s. Porce-lain is light, finely workedand intensely colourful – allgood qualities for jewel-lery,” says Mr Munn.

He adds: “Vivienne West-wood used glazed photocop-ies in her jewellery.

Other designers use jetand rubber. I welcome dif-ferent, fresh and interestingmaterials.”

Mark Tungate, a Paris-based marketing commenta-tor and author of Luxury

World, thinks several lux-ury goods companies

want to followthe success of

Hermès andL o u i sVuitton.

“ I fc o m p a -nies staytrue totheir her-itage of

craftsman-ship, are

well managed,and employ the

right marketing,brand extensions

can be very success-ful,” he says.“Just look at Louis Vuit-

ton – it started out makingluxury luggage.”

Heritage brandsset sights on thelifestyle marketPorcelainSceptics worry thatprofit will trumpcraftsmanship,writes Claire Adler

Detail of a Meissen pendant(right), butterfly ring(above), Lalique wingedwoman brooch (centre) anda Fabergé diamond ring


Watches & Jewellery

The great thing about hav-ing too deep an inventoryin the fine jewellery indus-try is that there are a mil-lion ways to solve the prob-lem, says Stephen Webster,the celebrity jeweller.

“The heritage collection,the vintage collection, a col-lection of rarely seen andunique pieces. Alterna-tively, there’s remodelling,”he says.

But the problem of whaton earth jewellers are to dowith unsold stock is real.

“All jewellers designsome jewellery that doesn’tsell at the end of the year.The goal is to manageinventory and distributionoutlets tightly to minimisethis,” says Eric Deardorff,chief executive of Garrardand Stephen Webster.

Jewellers, including Bul-gari, Boodles and Garrardare reluctant to talk aboutunsold stock. Many arechoosing between discount-ing or melting down.

“Thoughts of meltingdown jewellery are hardlysurprising – it’s no secretthat the price for a troyounce of gold has rocketedfrom £283 in November2005 to £1,149 this Septem-ber,” says Jayne Bond, UKconsultant to Shrenuj Mum-bai.

Figures from the UK arehard to come by, althoughdesign duo Dower and Hallrecently melted down somepieces left unsold for 20years.

According to In Storemagazine in the US, in2008, when most US jewel-lers liquidated excess goldinventory to generate cash,many made more moneyfrom the gold they meltedthan they would have

made selling the jewellery.About 48 per cent of inde-

pendent American retailersscrap jewellery to removeold inventory and the figureis thought to be muchhigher for national jewel-lery chains.

When a large UK retailerheld a half-price sale of goldchains, jewellers boughtstock to melt down. Oneperson bought as manykilos as they could carry,melted them down and net-ted the profit.

There is an additionalupside to recycling unused,unsold or unloved jewel-lery, says David Lamb, glo-bal marketing director atthe World Gold Council.

“Jewellery is to be treas-ured. But stocks of goldround the world are finite.With demand for gold grow-ing, recycling ensures greatpieces can be created anddemand can continue to bemet,” he says.

But do treasures riskbeing lost? Many say thereis little point becoming sen-timental. Now, more thanever, the intrinsic value ofjewellery is often muchgreater than the cost ofmanufacture.

“At Moussaieff, our cli-ents haven’t been hit by therecession, it’s purely amatter of fashion,” saysowner Alisa Moussaieff.“There is no heartbreakinvolved – pieces that don’tsell should be melted andreprocessed.”

Meanwhile, customerscan sometimes bag a bar-gain. Designers participatein London Fashion Week-end, an annual shoppingexhibition, with up to 75 percent discounts, and also sellsuccessfully on cut-priceshopping sites, Brand Alleyand Achica.

Marcus, a Bond Streetwatch retailer, now has asister store, Almar, on theBurlington Arcade sellingwatches from previous sea-sons, and in some cases,decades.

Marcus Margulies, theowner, admits the value ofhis unsold stock is “signifi-

cant” and he is very happywith turnover and customersatisfaction levels at Almar,noting that many of his cus-tomers are from the watchtrade.

Online retailers are oftenbetter at nailing optimumstock levels. Seventy SevenDiamonds keeps stock andshowroom samples to abare minimum, only sourc-

ing stones once customersplace orders.

But if you thought settingup online is a cheap alter-native, think again, say thefounders of Watchfinder,and online pre-owned watchbusiness that receives450,000 visitors a month.Turnround for its watchesis between four and eightweeks.

Matt Bowling, a directorat Watchfinder, says: “With-out an established online

brand, the costs of startingup, without any guaranteeof transactions, can beastronomic. Without ac-counting for our marketingexperts, the cost is about£35,000 monthly and thatcost will increase by a fur-ther £10,000 at Christmas.”

Rather than replicate thesite and carry the associ-ated costs, retailers arecatching on, and usingWatchfinder to sell their oldor discontinued stock.

Bentley & Skinner, theroyal warrant holding Lon-don jeweller, takes a differ-ent view. It is unapologeticabout pieces it has held inits vaults for up to 30 years.

Omar Vaja, its director,explains: “Melting somepieces down would be a sac-rilege. They’re still heresimply because the rightperson hasn’t come forthem yet.”

He recently sold anEdwardian sautoir necklaceto a customer after havingit in stock for 18 years.

The next day, anothercustomer who had periodi-cally admired the piececame in finally asking tobuy it, only to be told thathe had missed his chance.

What to dowith yourunsold stockInventoriesClaire Adlerconsiders theoptions whensupply outstripsdemand

‘There’s noheartbreakinvolved. Piecesthat don’t sellshould be melted’

Making money: there’s no point being sentimental Dreamstime

Fashion has an influence,even on the most seri-ous jewellery. Short-term trends mean noth-

ing as far as pieces costingmany thousands of pounds areconcerned, but the underlyinglong wavelengths of fashion cer-tainly do.

Thus, big brooches and cor-sages have fallen out of favour,while large cocktail rings haveseen their star rise; heavy, fulltiaras have been relegated toweddings while lighter pieces topin in an up-do are standardsocialite ball wear.

These slow but emphaticchanges leave both owners andsellers of good jewellery with a

dilemma: break up often well-de-signed, top-quality pieces toreuse the stones, or leave themto languish in the hope thattheir time will come again?

These were the thoughts thatconcerned photographer and arthistorian Eliane Fattal about 18months ago as she browsed thestock at S.J. Phillips’ BondStreet vintage jewellery and sil-ver store.

A long-term family customerof the company, renowned forthe quality of its choices andbest-known for supplying AnnaWintour, the faultlessly stylishAmerican Vogue editor, withmany of her signature neck-laces, Ms Fattal had asked Phil-lips to customise an old piecefor her engagement ring.

About two years ago, shewent in search of an antiqueflower ring without realising“that such pieces in a substan-tial size just weren’t made inthe 19th century.

“Then, in Phillips’ stock, Ispotted the most beautiful little

brooch and knew I had foundmy flower. I just had to per-suade the workshop here to turnit into a ring”.

The resulting piece, which shefell “instantly in love” with, wassuch a success and talking pointthat she began looking at otherPhillips pieces with remakingpossibilities in mind.

This has finally emerged asthe Metamorphosis collection of20 unique pieces, each based onan original item redesigned formodern women’s lives.

She worked closely withJonathan Norton, one of threefourth-generation brothers whorun the company. Despite herlack of formal jewellery train-ing, the brothers were happy torun with the creative ideas of ayoung woman they had knownfor many years – she is thedaughter of property mogul SirJohn Ritblat.

“The idea of a collection ofremade pieces grew organi-cally,” says Mr Norton, “Andwhy not? We had the items but

we would never have thought ofdoing this with them – wewould just wait until they sold.We are never in a hurry – I buywhat I like on the basis that, if Ido, eventually so will someoneelse. We just sold somethingthat was bought, I believe, in1924.”

For Ms Fattal the project

allows her to employ anotheraspect of the creativity that hasmade her a successful photogra-pher. “I love the past, in fash-ion, jewellery and art. Even as achild, my icons were womenwho were more famous for jew-els than fashion, like PeggyGuggenheim or Elizabeth Tay-lor,” she says. “My lack of tech-

nical expertise is not a problembecause the workshop here issuperb at finding a way when Iask for the impossible. They areas passionate as I am aboutthese pieces.”

She researched the idea care-fully, both with Diana Scaris-brick, a jewellery historian, whoverified the date, country of ori-gin, symbolism and – in somecases – the provenance of eachoriginal piece, and the Victoriaand Albert Museum, whosemain point was that the originalitem should be added to ratherthan tampered with.

She creates the concept foreach new piece, makes a sketchand then collaborates closelywith the workshop, which hasthe resources to find exactmatches for unusual andantique-cut stones, or make in-genious fastening mechanisms.

“Each piece is multifunc-tional, because that adds valuefor today’s woman,” she says.So a rose-cut diamond starbrooch now forms the head of a

large cocktail ring, its shankpavéd with identical diamondsand with an extra screw-in rubyto wear for day in place of thestar, which itself can be fas-tened to a velvet headband as ahair ornament.

A diamond and emerald-striped scarab pin becomes aring, a hair ornament or,attached to an onyx bead anddiamond sautoir, a necklace orhand jewellery. Earrings madefrom pins are asymmetrical –the original in one ear, a newelement from it in the other.

So a flight of six sapphire anddiamond flies match one newone, while a spray of diamondand garnet leaves match a gar-net trefoil in the other ear.

Ms Fattal says she hasbecome more confident at work-ing with the new elements – inthe latest a gold, diamond andemerald frog pin sits as a ringon a new pavé lily-pad.

Mr Norton says the companyhas also learnt much from theproject, especially about scale –

“nothing now must be toosmall, but a lot of antique jewel-lery was”.

Each item comes in a hand-made, numbered, leather bookbox, with its extra parts such asheadband, gold fixings and tinyscrewdriver set in velvet, and apage for its history. Prices varyfrom £14,500 to £150,000, control-led by the price of the originalpiece and the work and stonesinvolved in the new design.Pieces will be added as Ms Fat-tal finds originals that inspireher.

But nothing at Phillips hap-pens fast. “The workshop takesits own time and that’s how art-ists should work,” says Mr Nor-ton. This will doubtless makethe pieces even more attractiveto collectors, especially as thereis nothing else quite like it onthe market. But it cannot belong before other companieswith bright young design inputfind similar uses for high-qual-ity vintage jewellery that is sim-ply out of fashion.

How to put vintage pieces back in vogueRemakesS.J. Phillips hasrefashioned 20antique pieces,says Avril Groom

Transformation: rosecut diamond star brooch now forms the head of a large cocktail ring, the star can also be fastened to a velvet headband as a hair ornament A diamond and emeraldstriped scarab pin becomes a ring

The Metamorphosiscollection has beenredesigned formodern women’s lives


Watches & Jewellery

With the Christie’s sale ofElizabeth Taylor’s estatedubbed as the “sale of thecentury”, all eyes will be onNew York on December 13and 14 as the hammercomes down on 400 lots ofcouture, art, jewels and 14watches.

With so much anticipa-tion surrounding the sale,will the prices achieved bythese watches send ripplesthrough auction roomsaround the world?

While 14 timekeepersmight seem like an embarasde richesses for anyone else,for Elizabeth Taylor, or ETas she is now known amongthe auction set, this seemsto be a modest number.

The watches are unlikelyto have the same impact asthe 169 “crown jewels ofHollywood”.

But is there a chance thatthese watches will be agame changer for bejewel-led timepieces in thefuture?

“I could say that theimpact of the auction couldelevate the appeal of certainstyles,” saysTom Bursteinsenior vice-president atChr i s t i e ’ s ,New York.

“The amount ofpublicity for the resultsof the saleand thepicturesof herw e a r i n gthe jewelsmakes them veryaspirational, so allof this elevates theprice of all the piecesand it will have a lastingeffect,” he says. “I can’t sayfor which ones but a lot ofthese designs will enjoy aresurgence or we willbegin to recognise themagain, particularly whenwe see how she worethem.”

Mr Burstein says it is dif-

ficult to put a value on thepieces, “but the auctioncould definitely give a cer-tain style of watch the finalpush to be considered fash-ionable again.”

As for the styles of thewatches – like her jewelsthey are an eclectic selec-tion. “The watches repre-sented here are jewelsthat tell time. Theyare meant to beworn as pieces ofjewellery,” says MrBurstein.

“The fact they thetell the time is anadditional func-tionality, forexample on theBulgari Serpentwatch, the dial isconcealed by thediamonds onthe snake’shead and thedial of the Vach-eron Constantin isall large diamonds.

“In general, eachof them is a veryclassic representa-tion of a particular timeand very much a reflectionof her taste and connois-seurship,” he says.

“Her taste is really variedand based on quality asshe had a keen eye for

the finest gem-stones and

workmanship.”The highlight of the

watches selection isthe Bulgari Serpentifrom 1961, valuedconservatively at$12,000 to $15,000.

“This is the normalrange for this piece at

auction,” says Mr Burstein.“Because of its prove-

nance, we are more likely

to find out the real value inthe final price, but it ispriced as a standard Ser-penti of its era.” Christie’s,however, confirms that itsold a similar one in 2001for $51,700.

Historian Amanda Tri-

ossi, an external consultantto Bulgari who curated theBulgari retrospective thatfeatured a loan of 16 of Tay-lor’s jewels, says of the 1961Serpenti: “Records are quitescarce, but the Serpenti wasone of the first examples ofa Bulgari snake bracelet.We don’t know who gave itto her. It could have beenEddie Fisher or RichardBurton. And she had themeans to buy it for herself,

so who knows? You seethe watch in the stills

of Cleopatra thatshe was filming atthe time. She refers

to the fact of goingto ‘that nice little

shop’ Bulgari was an assetto working in Cinecittà.”

Another Serpenti in thecollection is from 2010,

given to her just before herdeath by Paolo Bulgari as atoken of thanks for lendingher jewels to the company’sretrospective.

It is valued at between$8,000 and $12,000. A thirdBulgari is a Parentesis dia-mond watch bought in May1987 and valued at between$5,000 and $7,000.

Does Ms Triossi thinkthat the sale will have animpact on future auction

prices? “No, I wouldn’tthink so,” is her verdict.

“I would presume thissale is in same category asthe Duchess of Windsor’s1987 auction at Sotheby’s inGeneva. The hype that goeswith the celebrity factor islimited to that sale. A simi-lar piece in an everydaysale with no provenancewill not be impacted bythis.”

The entirely diamond-set Vacheron Constan-tine Lord Kalla given

to Taylor by MichaelJackson in 1989 hasthe highest value at

$300,000 to $500,000and was chosen onthe basis that itwas somethingthat Taylor would

have liked.Another interest-

ing timepiece is aPiaget cuff watch

with a nephritegreen dial designed by

Jean-Claude Gueit whowas behind a trend for

large, audacious designs inthe late 1960s and 1970s thatappealed to the newlylanded jet-set. “I pictureElizabeth Taylor in Monacoor sailing in the Med wear-ing this bracelet watch witha nephrite dial,” says MrBurstein.

“She got it in the late1960s but we are not surefrom whom it was acquired.I can see her wearing it dur-ing her kaftan phase.” Theestimate for this watch is aconservative $2,000 to$3,000.

Another Piaget is a moredemure gold chain watch,also valued at between$2,000 and $3,000.

As for speculation on thefinal price of the star of thewatches, the 1961 BulgariSerpenti, Mr Burstein says:“With such a famous salefor such a famous person, itbecomes a market decision.

“There have been manyvariations of this iconicwatch and it has alwaysbeen popular though a ver-sion with a diamond headand tail is not so frequent.”Nor is one that belonged toElizabeth Taylor.

Test of provenance valueon ET’s ‘modest’ selectionThe watchesMaria Doultonasks whether thesale of the actress’swatches will be agame changer

A Piaget cuff watch withnephrite green dial designedby JeanClaude Gueit (top)and a 1961 Bulgari Serpenti

Rahul Kadakia, head ofjewellery for ChristiesAmericas, there hasbeen nothing like it

since Sotheby’s $50m sale of theDuchess of Windsor’s jewels inGeneva in 1987.

The New York sale of Eliza-beth Taylor’s fabled collectionon December 13 and 14 is, hesays, “creating huge new inter-est in precious vintage jewelleryand will continue to give a boostof energy to the jewellery mar-ket”.

Sotheby’s experience wouldback this up. “The Windsor salewas a watershed – the birth ofthe history of jewellery as awide interest rather than a spe-cialist subject,” says David Ben-nett, chairman of jewellery forEurope and the Middle East.

“It was the first time thatSuzanne Belperron’s work, forinstance, came to public notice,and it created interest in jewel-lery from the Art Deco period tothe 1960s that was little knownbefore.”

The Taylor sale has a nar-rower timespan but, selectionsfrom it are on a global tour ofChristie’s branches, and every-where there have been queues,timed entries and considerablesums raised for the actress’sAids charity from catalogue andticket sales.

“As we saw with the Windsor,Jacqueline Kennedy and DasiyFellowes sales, such a collectionis unique to that individual andtheir stories attract interest,”says Mr Bennett.

If Taylor’s pulling power asthe last Hollywood icon meansthat many viewers come out ofcuriosity rather than with anyintention of buying, Mr Kadakiais not worried. “Miss Tayloralways wanted as many peopleas possible to see her jewels andto understand the magic andenergy of them, which is whyshe wore them every day andwas so generous with them,inviting friends into her jewelroom, often to try them on,” he

says. “She treated jewels play-fully – the Van Cleef and Arpelspiece that Burton gave herwhen she became a grand-mother at 39 she called theGranny Necklace and the littlerings she received after a betover a table tennis match wereknown as the Ping Pong dia-monds,” says Mr kadakia. “Shebelieved jewels should be worn,not put in a museum, and thatpeople have custodianship ofprecious stones, not ownership.If people who view them start tothink in that way, that would befine with her.”

Mr Kadakia speaks withauthority. He first met herwhen, as a young auctioneer, heled the usually lucrative sale atthe AMFAR charity dinner inCannes. “One lot didn’t move,”he says. “I caught her eye andshe came up on stage to helpme, and then it really took off.”

He got to know her and thejewels better when she told himtheir stories as part of the prep-aration for her 2002 book, MyLove Affair with Jewelry, and onannual visits to her Bel Airmansion to assess the collectionfor insurance and repair pur-

poses. “Everything was properlykept and respected, in its ownbag and box, so harder stonescouldn’t damage softer ones. Asa result, her pieces are in greatcondition,” he says.

What struck him was howknowledgeable and serious shewas as a collector, far from thepopular image of a passive crea-ture being given baubles by themen in her life.

This is apparent also from thequality of other areas of thesale, such as art, which includesa rare Degas self portrait, a VanGogh and judiciously chosen

paintings by Augustus John.“The public know about the

Burton diamond and the pic-tures of her swimming in herRiviera pool wearing the Cartiersuite of rubies and diamondsshe had just been given by MikeTodd,” says Mr Kadakia.

“But she was very young thenand knew less. What changedher was filming Cleopatra inRome and the time she and Bur-ton spent with Gianni Bulgari,where both learnt a lot. She hadthe background [her father wasa successful art dealer], a natu-rally great eye for beauty and a

savvy business mind – and shejust loved stones”.

Burton famously said that,while he introduced her to beer,she introduced him to Bulgaribut, says Mr Kadakia, “whenshe started commissioningpieces herself, she went not justto classic houses but to then ris-ing, directional names like thereclusive Joel Rosenthal [JAR]”.

She also helped design pieces,both originals and new settingsfor historic stones, according toPierre Rainero, creative directorat Cartier, for whom her legacyis to throw a new spotlight on

collecting. “She was a true col-lector in a way not much seensince early in the 20th century,”he says. “She valued stones fortheir beauty and history – whenBurton gave her La Peregrina,the pearl which had been part ofthe Spanish crown jewels, shefelt its history made Cartier theright house to set it and she hadstrong ideas on the design,which she worked on with ourteam. It was the same with theTaj Mahal diamond. Serious col-lecting like this faded away latelast century, but there are signsof its revival, especially in thenew markets, and I believe thissale will give the idea freshimpetus.”

Whether it will also alter cur-rent design in the way that theWindsor sale stimulated interestis another question. Taylor’staste for big matching suitesand plentiful yellow gold hasfallen from favour and none ofthe houses she patronised suchas Bulgari, Cartier, or Van Cleefand Arpels suggests that, evenif spectacular prices areachieved at the sale, it willinfluence their design thinking– they all want, as a Bulgarispokesman says, “to be forward-looking, not revisiting stylisticelements from the past”.

Van Cleef and Arpels saysthat though it feels the sale willshowcase the company’s skilledcraftsmanship to a wider audi-ence, it does not anticipate arash of private orders mimick-ing Taylor’s style.

Yet the colourful Alhambrarange has scarcely changed andthe examples for sale seem verycontemporary, while the brace-lets, in a striking combinationof coral and amethyst, or JAR’sball earrings designed to matchher eyes, still seem adventur-ous.

Mr Rainero says: “ElizabethTaylor defined herself by hertaste in jewellery, which is themost intimate accessory. I thinkthe moving personal, emotionalaspects of the sale will have awider effect on client thinking.”So, even if the celebrity factorand the sheer quality of many ofthe items leads to memorablesale prices – the jewellery aloneis conservatively estimated at$30m, the effect on collectorsand their future buying habitscould be far more long lasting.

Sale to throw new spotlight on collectingThe Liz Taylor effectAvril Groom takesa look at lotsof fabulous jewels

Star draw: parts of the collection have been on show at Christie’s branches around the world and large sums of money have been raised for Taylor’s Aids charity


Watches & Jewellery

Shizaru, the contemporaryart gallery that opened onMount Street in London’sMayfair this year opens itsnext exhibition on Novem-ber 25.

But there will be no can-vasses, sculptures, sharksin formaldehyde or installa-tions of bricks. Instead gal-lery goers will be peering atsmaller oeuvres in the formof brooches, rings and neck-laces.

“Art Rocks: Contempo-rary Jewellery” is curatedby Joanna Hardy, the ex-Sotheby’s jewellery expert,and will bring together thework of 10 artist-jewellersfrom around the world.

But why is jewellerybeing shown in an art gal-lery? Simon Sakhai, thedirector of the gallery, says:“I am not trying to suggestcontemporary jewellery iscontemporary art. They arevery different things.

“But jewellery is an artform.”

Shizaru is hoping to takejewellery out of a pigeon-hole that relegates it toeither being a commoditytied to the value of a metalor a gem, a craft or, atmost, a decorative art.

“The difference between agallery and a shop is thatpeople come in with anopen mind,” says MrSakhai.

And an open mind iswhat Ms Hardy is after.

She believes it is timejewellers were seen in thesame light as other artists.

She says: “Jewellery hashad this problem of beingseen as a commodity andnot an art form, particu-larly when diamonds fea-ture so prominently.

“So, while my jewellersare using diamonds, theyare using them in a veryimaginative way to comple-ment the piece rather thanas the big solitaire.”

Shizaru, the long lostfourth of the “Three WiseMonkeys”, whose maxim is“do no evil”, belongs to thethree Khalili brothers, sonsof David Nasser Khalili, artcollector and patron.

The gallery’s speciality isto find work by contempo-rary artists who offer a highlevel of conceptual rigourcombined with exceptionalcraftsmanship. It line-upincludes artists such asBouk de Vries who makesintricately crafted worksout of ceramics, or MarkHumphrey who sculptsmarble.

Benjamin Khalili is appre-ciative of the craft qualitiesof the work of these jewel-lers and particularly tech-niques such as enamellingas demonstrated in thework of jewellers Fred Richor Kevin Coates.

“Creativity has been sub-divided into disciplinessuch as design, fine art orjewellery,” says Mr Sakhai.

“But we are more com-fortable mixing the con-cepts and everyone has anidea of what they considerto be more or less ‘artful’.

“We try to have a rangeof creative production,whatever the medium. Wesee jewellery as an impor-tant part of the artisticdialogue and it should beincluded in the great intel-lectual discourse of art,” hesays.

The 10 jewellers are allvery different in theirapproach, but what unitesthem is theirskill ine q u a lmeasureas art-ists andc r a f t s -men.

“I believej e w e l l e r yshould reflectthe wearer’s indi-viduality, but tofind well-made,unique jewels is noteasy,” says Ms Hardy.“These 10 internationaljewellery designers andmakers, some of whomare established mastercraftsmen and others whoare emerging or havenever showcased in theUK, have this talent.

“This exhibition putsjewels on a platform canwhere they can be appreci-ated as wearable art.”

Just how wearable someof the jewels are is open toquestion.

Shaun Leane’s “ContraMundum” is an armour-likewhite gold lace longevening glove, studded with5,000 diamonds custom-made to fit the petite handof Daphne Guinness, whocommissioned it.

Kevin Coates’ brooches ofmythical creatures from the

“A Notebook of Pins” col-lection are as much minia-ture ornaments as lapelenhancers. When not outand about, the shepherdCerembus from Ovid, whometamorphosed into a stagbeetle, can be displayed onthe wall against his ownnotebook page detailing theinspiration, idea and mate-rials that went into hismaking.

Much of British jewellerZoe Arnold’s work isrelated to her poetry andher golden flies, chairs,dead birds and chestsof drawers may not bean obvious choice forthe red carpet, buthave won herawards and a fol-lowing of jewel-lery collectors.

ARK, a NewYork company,

has createdRenaissance-i n s p i r e d

jewels, often incorporatingantique elements. Its jewel-lers learnt their skills from30 years of restoring jewelsfor houses such as VanCleef & Arpels, Boucheronand Cartier.

Each piece comes with itsown display case, echoingthe style of the jewel. A tur-quoise Chinese figure gazesserenely from his bejewel-led pagoda when not beingworn.

The idea of bringing jew-ellers into a gallery context,or of artists creating jewelsis not new. There are plentyof examples, such asPicasso’s jewels made forhis family, Marc Quinn’sgolden rings, or AnishKapoor’s work for Bulgari.

Ms Hardy has curatedcontemporary artist-jewel-ler sales alongside art auc-tions at Sotheby’s.

“It’s not rocket science,nor are we doing somethingthat has never been done.Rather, creativity has beenlacking in recent years aspeople have been wearing asort of uniform when itcomes to jewellery,” shesays. “But now there arepeople thinking ‘I don’twant to put on that dia-

mond line bracelet orpearl necklace like eve-ryone else’.”

It is a first forShizaru, however. MrSakhai met Ms Hardyat a Sotheby’s Institutelecture she was giving.“She changed the way I

see jewellery,” he says.“How could I not have

known about these jewel-lers? I couldn’t believe I hadnever been exposed to thisbefore.”

Homage to jewellery as art formCreativityMaria Doultonreports on a showof contemporary artwith a difference

Shaun Leane’swhite gold andwhite diamondGlove. On showat Shizaru

Rare Fancy Vivid Sundrop To go under the hammerThe Gemological Institute of Americadescribes the Fancy Vivid Yellow Sundropdiamond as a “paragon in the world ofdiamonds”. At 110.03 carats it is the largestdiamond of this bright yellow colour knownto exist in the world, making it one of therarest stones of this colour we may eversee.

Following a stint at the Natural HistoryMuseum in London earlier this year, theSundrop will be auctioned by Sotheby’s inGeneva on November 15 with a presaleestimate of between $11m and $15m.

Any diamond over 100 carat is unusual,but a coloured diamond (they constituteonly a small percentage of all diamonds)

with the top colourranking of “Fancy Vivid”is even more unusual.

The Sundrop is a recent discovery,unearthed in 2010 in South Africa. Thecarefully calculated job of cutting andpolishing the rough was carried out by CoraInternational, the New York based diamondhouse.

The cut is a unique pearshape tomaximise the colour and shape of thestone. The current world record for acoloured diamond is the 24.78 carat GraffPink that was sold by Sotheby’s inNovember 2010 for $46m.

Maria Doulton

Charlie Bibby

The jewellery andwatch worldhas seen aseries of art

and design exhibi-tions lately.

Some take a lat-eral approach,offering insightsinto the creativebrains and aes-thetic prefer-ences of a brandor design direc-tor.

Others offerb e h i n d - t h e -scenes, invita-t i o n - o n l yglimpses into thestages involved indesigning theintricate objectsthese companiesmake, sometimestransforming a pres-entation of drawingsand sketches (and add-ing the occasional royalor Hollywood visitor) toresult in a social and cul-tural event in its own right.

The founder of maverickwatch brand MB+F (or MaxBusser and friends) hasbeen making some newfriends of late and is callinghis newly opened MAD Gal-lery a “3D blog”.

Having auctioned off awatch in the form of a goldpanda flying on twin jets, inMonaco in September for€170,000, Mr Busser is nowoffering kinetic art andlighting from the likes ofFrank Buchwald, theformer science fictiongraphic designer turnedmetalwork designer, at hisMechanical Art Devicesgallery, both online and incentral Geneva.

Working to sell just 175watches this year, and cor-responding by email in themidst of his “11 city fiveweek world tour”, MrBusser says: “I’d expectedtwo or three visitors a day,but we’ve been having 12 to30, including a FormulaOne champion. Most hadnever heard of us. We’vesold two watches and lessexpensive art. I amshocked!”

In New York last month,Parmigiani opened thedoors to an exhibition of 50priceless pocket watches,automata and Fabergéitems, including the Impe-rial Swan and Golden Pea-cock eggs, among otherpieces created by Peter CarlFabergé – all property of

the Sandoz Foundation,which owns Parmigiani.

Pierre Landolt, the foun-dation’s president, encour-aged Michel Parmigiani toset up his own watchmak-ing company in 1996, afteravailing himself of Mr Par-migiani’s world-class exper-tise in antique and watchrestoration and conserva-tion for the Sandoz family’sprivate collection over thecourse of several decades.

The venue for the exhibi-tion, showing until lateNovember, is A la VieilleRussie, the Fifth Avenue-based antique specialists.Former clients include theDuke and Duchess of Wind-sor, and it was a regularhaunt for Maurice YvesSandoz, as he built up hisfamily’s collection.

In tribute to 19th centurymaster watchmakers, Par-migiani has created piecesto sit alongside the Sandozcollection at the exhibit,including a minute repeaterand a watch with telescopichands. VIP evenings areplanned, with guests fromAmerican Express andothers.

In

Mi l an ,P a n e r a i ,

the cult Italianwatch brand, has

teamed up with the Trien-nale Design Museum andartist Damien Hirst, anavowed fan of the brandwho has in the past usedPanerai watches in hisworks. An experiential exhi-bition of art and designexploring the concept oftime, entitled O’Clock, is onuntil January.

“I made this spin-paintingusing black Panerai watchfaces without hands in thepattern of the seeds in thehead of a sunflower – I hopethe painting makes youthink, we are here for agood time, not a long time,”says Mr Hirst of his Beauti-ful Sunflower paintingscommissioned specially forthe exhibition.

Mr Hirst’s work sitsalongside pieces by morethan 80 internationaldesigners, including influ-ential names Marten Baas,Marcel Wanders and LouiseBourgeois.

While the return oninvestment from theseexhibits might be tricky tocalculate, they are a wayfor luxury brands to offercustomers access to cul-tural experiences thatknowing the right people

can bring. The implicationis always that this is anexhibition that revealsobjects that inspire the ded-ication to quality workman-ship, forward-thinkingdesign, imaginative use ofmaterials and aesthetic

excellence of the associ-ated brand.

They also give peo-ple a narrative toassociate with thepiece they covet orultimately buy –even if, as in thecase of the£569,000 Parmi-giani Toricm i n u t erepeater, itmight take 20years to saveup for thebeauty.

J o a n n aHardy, thej e w e l l e r yexpert, says:“A jewel is notall about blingand branding,

it’s also about apersonal choice,

self-expression andthe conversation

about the piece thatarises from a compli-

ment, the meaning andhistory behind it, who

owned it and whatinspired it.”

This year, Shaun Leane,the British jeweller, stagedan exhibition in the FringeClub, the Hong Kong con-temporary arts venue,showcasing sketches of hiscollections and examples ofhis collaborative work withAlexander McQueen, SarahJessica Parker, Boucheron,De Beers Forevermark andthe diamond glove he cre-ated with inspiration fromDaphne Guinness, thehaute couture collector andhis friend and muse.

In Dubai next month,Robert Procop will showjewels as art against a back-ground of design sketches.Visitors to his exhibit inMonaco this year includedPrincess Charlene ofMonaco.

As the luxury worldaligns itself with art anddesign, it is a welcome turnof events when the art anddesign world returns thecompliment.

Next month, Shizaru,Mayfair’s fashionable artgallery, hosts Art Rocks, anexhibit of contemporaryjewels chosen by JoannaHardy (see story below).

Pieces include Mr Leane’sdiamond glove and a Leo deVroomen gold bangle bear-ing an extremely rare 144carat paraiba tourmalinecabochon, crafted with themillennia-old repoussé ham-mering and punching tech-nique.

What you can buy whenyou know the right peopleArt and designClaire Adlerconsiders atrend towardcultural crossovers

A Damien Hirst‘Beautiful Sunflower’,made especially for Paneraifor an exhibition at Milan’sTriennial Design MuseumPrudence Cuming Associates

Panerai, the Italiancult brand, hasteamed up with theTriennale DesignMuseum and artistDamien Hirst


A s part of a series of exhibi-tions to celebrate theQueen’s diamond jubilee, 60years on the throne, jewel-

lery from both the Royal Collectionand the Queen’s personal items willgo on show at Buckingham Palaceduring August and September nextyear.

The exhibition, Diamonds: A JubileeCelebration, will be held in the BallSupper Room, one of the state roomsused each year for special exhibitionsduring the summer.

Queen Victoria is the only otherEnglish monarch to have celebrated adiamond jubilee. The organisers arebilling this as the most significantroyal collection of jewellery to beunveiled since the Crown Jewels wenton show, and industry experts agree.

Exhibitions of jewellery at this levelof quality and provenance are extraor-dinarily rare.

Certain historic exhibitions are stilltalked about – from the Victoria andAlbert Museum’s exhibition of Fab-ergé in 1977, which attracted morethan 152,000 visitors with queuesspanning the length of London’sBrompton Road, to the samemuseum’s tiaras exhibition in 2002,which saw more than 182,000 visitorsexplore a single room packed withdiadems – and started a trend thatsaw tiaras being made by the likes ofVivienne Westwood and ZandraRhodes.

The Treasures of Tutankhamenexhibition in 1972 is the most popularexhibition in the British Museum’shistory and was largely responsiblefor the trend in Egyptian revival jew-ellery that followed. And the exhibi-tion held by JAR (Joel ArthurRosenthal, a Parisian jeweller) at theGilbert Collection in 2002 continues toinspire designers and jewellery collec-tors across the world.

The Queen’s personal collectionincludes both pieces she inherited and

those acquired during her reign.In some cases, jewels encasing

extraordinary stones have undergonevarious transformations, having beenrecut or incorporated into new set-tings during their history.

The exhibition explores the waysdiamonds have been used and wornby British monarchs over the past 200years.

Highlights include the necklace andearrings made for Queen Victoria towear at her coronation, and whichhave been worn by four more queens,including Queen Elizabeth, the QueenMother and her daughter, the presentmonarch. Twenty-five graduated cush-ion-shaped brilliant cut diamonds arepunctuated by a central drop-shapedpendant of 22.48 carats.

A Garrard Fringe brooch, crafted in1856 for Queen Victoria, was designedto be worn along the top of a bodice.A large emerald-cut round brilliant,surrounded by 12 large round stones,has nine chains suspended from it,although the piece did not alwayslook this way.

After Abdul Mejid, the Sultan ofTurkey, gave Queen Victoria a gift of

diamonds, Garrard remodelled anexisting piece, adding in the impor-tant stones. Almost a century later,Queen Elizabeth the Queen Motherwore the Fringe brooch at her daugh-ter’s coronation in 1953.

“Jewellery exhibitions such as thisare extraordinarily rare,” says Geof-frey Munn, who was curator of theVictoria and Albert Museum Tiaras

exhibition in 2002 and is now manag-ing director of Wartski, the Mayfairjeweller.

He says: “The fact that the Queen ismaking the generous gesture ofputting her jewellery on public dis-play will be a fantastic inspiration. Inthe 1940s and 1950s, people dressed upwith diamond brooches for a night at

the theatre or the opera. Maybe peo-ple will be inspired to dress up morenow. Jewellery can offer somethingjoyful in a dark time.”

A beautiful miniature crown wornby Queen Victoria for her official dia-mond jubilee portrait and made byGarrard, was designed to be worn ontop of the veil that she took to wear-ing after her husband Prince Albertdied.

Measuring about 10 centimetreshigh, it contains a staggering 1,187diamonds. Throughout the last 30years of her life, this was Queen Vic-toria’s favourite tiara, possibly thanksto its physical lightness.

The Girls of Great Britain Tiara wasa wedding present to Princess Victo-ria Mary of Teck – later Queen Maryas wife of George V – on behalf of the“Girls of Great Britain and Ireland”. Acommittee of 300 upper-class ladiesarranged its purchase via a subscrip-tion, though the actual price isunclear. Today, it is frequently wornby the Queen.

The Williamson brooch is namedafter the Canadian geologist who dis-covered its central pink diamond in

1947, the year of the Queen’s 21stbirthday and her wedding. In 1953,Cartier set the cut diamond at thecentre of a brooch with 200 small dia-monds.

The exhibition also includes historicobjects illustrating the ingenuity withwhich diamonds have been used indifferent cultures.

An 18th century box crafted fromthe green and red gem called blood-stone, made for King Frederick theGreat of Prussia, incorporates almost3,000 diamonds depicting flowers,insects and musical instruments.

Jewellery expert Joanna Hardybelieves the exhibition presents an“incredibly important opportunity”for both designers and jewellerylovers.“I hope the exhibition will trainpeople’s eyes to understand qualitycraftsmanship – both jewellers andthe public,” she says.

“Historically, important exhibitionslike these start trends and inspiredesigners. The exhibition mightencourage people to remodel inheritedjewellery they don’t wear or considerand appreciate alternative diamondcuts.”

The Queen’s CollectionClaire Adler considers thepotential impact of anunprecedented display

‘I hope the exhibition willtrain people’s eyes tounderstand qualitycraftsmanship – bothjewellers and the public’

Seiko, like almost everycompany in Japan, wasaffected by the March 11earthquake and tsunami.Although it avoided struc-tural damage, power cutsand other repercussionsdelayed production.

At Morioka Seiko Instru-ments, the facility in thewilds of northern Japanwhere the mechanicalwatches of the high-gradeGrand Seiko line are made,three weeks of work werelost, but the company saysthis was quickly made up.

Production was restoredjust as the Japanese inter-nal market for prestigewatches recovered.

“Until the end of May,people tended to refrainfrom spending a lot ofmoney, but after that, if westopped spending in theeconomy, that would beworse,” says Shinji Hattori,Seiko Holdings president,whose great-grandfatherfounded the company in1881.

“Now I think things havecome back to the normallevel.”

This, Seiko insiders willtell you, is the Japaneseway. Natural disasters,even those as devastatingas that of March 11, areunderstood and accepted aspart of existence, luckilyrare if occasionally devas-tating.

There are plenty of otherobstacles, from a skyrocket-ing yen to a complicatedcorporate structure.

Two parallel umbrellacompanies, Seiko HoldingsGroup and Epson Seiko,each make watches in thequartz and luxury sectors,as well as products rangingfrom Epson printers andprojectors to golf clubs andsemiconductors.

Watches account for asmaller segment of businessthan one might expect from

the company whose 1969invention, the Astron, begatthe quartz revolution.Watches make up 10 percent of Seiko Holdings busi-ness, and in Seiko Epsonrather less than that.

But they represent thesoul of the business and theshowroom for Seiko’s val-ues.

So, the company is mak-ing much of its 130th anni-versary this year. It ismarking it with the launchof the Grand Seiko prestigeline on to the global market– a mere half century afterits introduction in Japan.

“Grand Seiko is the mostimportant practical usewatch,” Mr Hattori says,contrasting it with the evenhigher specification, aes-thetically fancy Credordress watch line, still onlyavailable in Japan.

As the Swiss watch indus-try looks increasingly to theeast, Mr Hattori’s intentionis to establish Grand Seikoin the west to the extentthat, when consumers thinkof Seiko, they think ofGrand Seiko rather thanquartz.

“More and more peopleoverseas are hearing aboutit, creating demand. I thinkwithin five years GrandSeiko will be the mostpopular Seiko watch,”he says.

However, for plentyof people, Seikoremains synonymouswith affordable quartzpieces. It continues to sup-ply millions of cheapquartz movements to theindustry, and has brandssuch as Pulsar and Lorus inthe low-end market.

The bread andbutter of theSeiko watchbrand itself isthe £100-£400quartz range –a highly com-petitive mar-ket that MrH a t t o r iintends toq u i t ,u s i n g

Grand Seiko as the vehicle.“Worldwide, 95 per cent

of watches sold are quartz,so it’s right that we aredeeply engaged in this mar-ket,” he says. “Howeverquartz is now a jaded tech-nology, while Seiko is a pre-mium brand.

“We are putting moreemphasis on our prestigewatch business, so we cantake advantage of thegrowth in the sector.”

Rather than a singlewatch, Grand Seiko is afamily of watches, retailingin the £2,000-£10,000 range.

Confusingly, it includesquartz pieces as well asmechanical and those con-taining Seiko’s proprietarySpring Drive mechanism.

Nor does it have a unify-ing look – there are sportySpring Drive chronographs,

limited edi-tion retrop i e c e sand con-s e r v a -t i v ethree -h a n dmechan i c a l

watches.Muddy-

ing the waters further,Epson makes the SpringDrive and quartz pieces,while Seiko Instruments, asubsidiary of Seiko Hold-ings, makes the mechanicalwatches.

The Grand Seiko title isreally a symbol of care inconstruction: right down tothe escape wheels and bal-ance springs – the lattermade from Seiko’s own spe-cial alloy, Spron – all isdone painstakingly in-house.

It is Spring Drive thatshould be leading GrandSeiko’s charge. The mes-merisingly smooth, silentglide of the hands, and onesecond per day accuracy,confirm a remarkable tech-nology.

However, the fact of atiny electronic system usedto regulate its mechanicalaction is enough for someto dismiss it as a “hybrid”movement, even if its poweris derived from a main-spring like any mechanicalwatch.

Seiko’s task is to convincewestern buyers to spend£8,000 on such a watch,rather than going Swiss,but it is in no hurry.

Grand Seiko is stocked in30 European shops, includ-ing one in the UK (May-fair’s Jura Watches), but inintentionally limited num-bers.

As one executive says:“We’re not trying to takemarket share from Switzer-land, but we’ve proved toourselves that there is aplace for Seiko there.

“Strategic success forGrand Seiko is to sell a lit-tle bit less. It’s a peg in the

wall as we moveupmarket.”

After all, if ittook 50 years tobring GrandSeiko to theglobal market,a few morebaby steps areunderstanda-ble.

Quartz company putsmore emphasis on prestigeSeikoTimothy Barberlooks at theoffering to markthe company’s130th year

Shinji Hattori:‘Grand Seiko is

the mostimportant

practical usewatch’

Seiko is marking itsbirthday with theglobal launch of theGrand Seiko line –50 years after itsdebut in Japan

Watches & Jewellery

Diamonds to die for mark Queen’s jubilee

Queens and crowns:Queen Elizabeth in 1956 wearingthe Girls of Great Britain‘ tiara, QueenVictoria’s Small diamond crown and theWilliamsondiamond brooch

Copyright: The Royal Collection

A new frontier for big brands

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