The Salon International de la Haute Horlogerie (SIHH) 2009 was a high-risk rendezvous. Events around the world came together to make this a “crisis” show—the catastrophic state of the global economy, the ominous recession, and even the new dates of the salon, which was moved up, for the first time, to the middle of January. The weather itself on the opening day —overcast and freezing—also seemed to place a damper on the festivities.
Inside the luxurious corridors, however, everyone tried their best to allay fears and present an optimistic face. Nonetheless, the suspense was palpable. What would happen over the course of the week? Would retailers and distributors from around the world show up for this yearly appointment? Would the order books fill up as everyone hoped?
At the end of the week, the doors closed with a sigh of relief. But it was a relative relief, and a seemingly diverse relief depending on the particular brand. Overall, however, the feeling was that the worst had been avoided. But for how long? Was this just a small spurt before a much larger storm hit? For the answer to that, we’ll just have to wait.

Reasons for the respite
This relief—a perceptible respite—seems to be due to several intermingled factors. Moving the date of the show up to January was considered by many observers to be a risk in itself: two editions of the show during the same fiscal year and only nine short months to prepare the new collections—was this reasonable? Yet, against all expectations, the choice of this new date was in fact propitious, especially during these difficult times. It allowed brands to “take the temperature” of the market early in the year and thus adjust their upcoming production accordingly. And, because of the short time between the 2008 and 2009 shows, it forced the brands to moderate their ambitions in terms of new collections, which turned out to be, paradoxically, a good move given the current state of affairs.
Another factor contributing to this relief was a certain “solidarity” demonstrated between the various players in the watch world. The realization of a shared destiny between brands and retailers pushed them to “pull together” in these times of adversity. But this “solidarity” came with a price in the form of a reversal of “opposing armies.” The brands lost in terms of arrogance, while retailers gained in terms of freedom of choice and room for manoeuvre. Retailers, who had been increasingly subjected to the iron hand of the brands and the groups over the last few years, now found themselves at the centre of attention, and solicited as never before.
They were thus able to make their choices with a much greater degree of liberty, without being forced to order quantities and qualities pre-viously determined by the brands themselves. The retailers were the leading lights, as we were able to note publicly, especially concerning the launch of Ralph Lauren, whose positioning and prices were openly criticized in the halls of the SIHH, rather than simply behind the scenes.
Finally, the last reason for the relief—although it was still quite relative—was that the number of orders had not crashed through the floor as might have happened. While the total number of buyers declined (by an estimated 20 to 25 percent), they still placed orders, even if their orders varied significantly from one brand to another.
Although it is a bit tricky to draw general conclusions in this very difficult climate, we can make a few observations. According to the various people with whom we spoke, and their ability to waffle on the issues, orders ranged from “excellent” to “catastrophic,” from up 20 percent to down 80 percent! This seems to demonstrate that the economic crisis is affecting different markets in very different ways. And within each market, it affects different segments in even more diverse ways. It was apparent, however, that products in the very haut de gamme sector, as well as exclusive items and limited-series pieces, fared the best. This basically confirms what we already know—even in the worst crises, the richest are able to weather the storm much better than the others.
It is the “trader’s watch”, positioned in the middle of the haut de gamme range—in other words between 15,000 and 50,000 CHF— that is suffering the most. As to the rest of the industry, which includes the essential in terms of volume, BaselWorld will provide us with more precise data. Yet, we can affirm that the “entry-level luxury” category—the mid-range—is holding its own better than many prophets of doom had predicted.

Ideological turning point
We can also make another observation, although more general in nature. The financial mess, which turned into a full-blown economic crisis, marks an ideological turning point in attitudes towards a refocus on sure value, a return to authenticity, a realization of the importance of legitimacy, and a requirement for responsibility. The deflation of the watch bubble—a bubble that accompanied all the other bubbles, including housing—has not been without consequences that will gradually make themselves felt and that will remain for a long time to come.
We might also mention that, during this week of watches in Geneva, nearly fifty small watch enterprises organized their own special presentations in the grand hotels around the city. The response to these parallel activities demonstrates a net growth in interest for “real” watchmakers, and notably for a certain number of small independent watch enterprises engaged in research and true innovation (in this regard, see our article “Creativity and liberty among the independants” in this issue).
It is also true that this renewal of interest on the part of retailers for the most creative emerging brands comes from their need to find an antidote to the crisis. By displaying remarkable, unconventional, and innovative products in their windows, retailers are seeking to stimulate curiosity, interest, and buzz around other types of watches. This is perceived to be especially important since their main standard bearers are running out of steam to a certain degree, weighed down by heavy production costs and by their marketing efforts that are judged too obvious and onerous to be totally authentic.
But while we wait to visit the independents, let us take a look at some of the brands present at the SIHH (the brands not mentioned here will be discussed in a separate article in this issue by Malcom Lakin). Lest anyone say that the products arising during the 2009 crisis are not focused on “watch values,” it is clear that the essential part of the offer is indeed classical in nature.




Georges-Henri Meylan and Philippe Merk
Montre Jules Audemars by Audemars Piguet
Jules Audemars Chronograph by Audemars Piguet


Transfer of power at Audemars Piguet
Philippe Merk himself agrees—changing captains in the middle of a storm is not an ideal situation. Yet, this man—after having taken Maurice Lacroix upmarket, having positioned it excellently, and having seriously improved the brand by verticalizing its production—seems well prepared to take over the command of the venerable Manufacture, Audemars Piguet.
The transfer of power was carried out quietly and Georges-Henri Meylan (who remains a member of the board) was present at the SIHH to accompany Merk on his first steps as the brand’s new captain.
“Of course”, admits Philippe Merk, “we are seeing a slowdown here and there like everyone else, especially in the USA, a market that today represents 20 percent of our sales. But the great strengths of Audemars Piguet are its culture and its 360-degree development, in other words, its production, manufacture, and distribution—a very integrated production, a high-performance manufacture with an enviable research and development division, and a distribution network that is nearly completely controlled directly by us. We are thus particularly well prepared to confront the crisis”.
The direction has thus been set and Philippe Merk intends to stay the course, whether in terms of distribution policy—meaning continuing the gradual opening of stores—or in terms of the product.
For its presence at the SIHH, the brand’s general theme was the complicated watch. Its standard bearer was a remarkable piece called “Montre Jules Audemars”, equipped with an Audemars Piguet escapement. Derived from the famous “Robin escapement”, this device does not require any lubrication, and it vibrates at the extremely high frequency of 43,200 vibrations per hour (6Hz), which provides it with superior chronometry.




Royal Oak Offshore by Audemars Piguet


Aside from the technical aspects, its three-dimensional appearance makes this timekeeper especially seductive. All notion of the dial has disappeared, replaced by a space showcasing the essential elements of its mechanism, rigorously ordered in a highly classic architecture with uncompromising finishing in keeping with the art of timekeeping. With its twenty models, which we can be fairly sure are all pre-sold, the Montre Jules Audemars is perfectly emblematic of the best timekeepers exhibited at this edition of the SIHH. Tradition, chronometry, classicism, and innovation all go hand in hand.
We find these same qualities in another form, in the Jules Audemars Chronograph, a watch with a very vintage design but equipped with an exclusive automatic calibre.
On the other side is the Royal Oak family, which celebrates its 40th anniversary in 2010, and which will see a flurry of new models arrive starting next year. The most remarkable piece in this new line is a Royal Oak Offshore that proposes, for the first time, a feminine model in forged carbon (offering a baroque-like surface) whose bezel is set with diamonds—another form of carbon—on a black dial with red hands and numbers.

Continuity at Girard-Perregaux
Going from one manufacture to another, we now visit Girard-Perregaux. Gino Macaluso is quite serene. While Swiss watchmaking “experienced a period from 2003 to 2007 that was a little, even a lot, surrealist, resembling a race that it was not prepared for and during which brands did not dare to say ‘stop,’ we at Girard-Perregaux, on the contrary, were working hard to organize our production. Today, we make all of our movements and 60 percent of our cases in-house,” says Macaluso who adds, “Industrial manufacturing is a difficult business because obtaining optimal quality for 25,000 movements per year is not the same thing as making a few hundred watches. But we are taking our time since we have great pride in saying that we create watches for the next century, and that we are following our goal of achieving magnificent chronometric results.”




Tourbillon Vintage 1945 & 1966 Annual Calendar by Girard-Perregaux


Asked about the PPR group’s participation in the brand’s capital, Gino Macaluso reaffirms that it is an agreement “between families” and that he has no intention of selling. “The agreement stipulates that PPR can obtain as much as 40 percent of the shares, but no more. Pinault is on the board of directors and his enormous knowledge of retail and logistics is a great and concrete contribution. Don’t forget that Gucci directly manages 550 points of sale around the world. This is an irreplaceable experience.”
In terms of products, 2009 will be a year of transition. Girard Perregaux is promoting a Tourbillon Vintage 1945 whose three golden bridges have been redesigned in a vigorous yet purist manner, conferring on this piece an impeccable geometry. The brand will continue to develop the Cat's Eye line, with a high jewellery model entirely set with diamonds, and an Annual Calendar with zodiac on a sky of the most beautiful mother-of-pearl.
The ww.tc Shadow will be presented with a flyback chronograph and world time in a new ceramic case. Last but not least, the 1966 collection, evoking pure classicism and equipped with a variable inertia “Microvar” balance, is proposed as an Annual Calendar and Time Equation with a radiantly simple and easily read dial.




Richard Lange Pour le Mérite by Lange & Sæhne
1815 by Lange & Sæhne


The perfectly obvious A. Lange & SÖhne
The same “classic” approach is followed at A. Lange & SÖhne, a brand that, whatever happens, has always remained true to its “DNA”. Contrary to the often booming videos and deafening classico-techno music of its competitors, A. Lange & SÖhne has presented one of the most beautiful watch films of this decade. It is so simple, obvious, and perfect: there are only hands, first those of a magician who, in a fixed sequence shot, seems to construct a watch from nothing but his fingers. Then there are the hands of Saxon watchmakers who file, polish, and assemble a piece. The slogan sums it all up: “It is not magic. It is a Lange & SÖhne.”
The Lange & SÖhne in question is the “Richard Lange Pour le Mérite”, a watch “dedicated to the quest for the precise measure of time”, which has a fusee and chain transmission device that Lange is using for the third time. This device, which is “more efficient than the tourbillon in a wristwatch”, compensates for the decrease in energy by maintaining a constant torque, thus a constant amplitude of the balance, thanks to a fine chain (15 cm in length, 0.4 cm in height, and 0.5 cm in width, made up of 636 distinct components) that connects the fusee and the barrel. After 36 hours, a mechanism stops the movement before the spring motor unwinds entirely. Encased in a 40.5 mm platinum or rose gold case, the Richard Lange Pour le Mérite has an exceptional and well-organized appearance. Its magnificent dial is composed of three connected levels made of white enamel supporting the blued steel hands. It embodies absolute classical perfection, as does the brand’s second “new” timepiece—if we can employ the term “new” for the most timeless of timekeepers that were ever made—the 1815. Deceptively simple in appearance, this watch evokes a pocket watch, and is equipped with a new movement composed of a large balance and flat spring. The obvious, in a way.

“The world adapts to Vacheron Constantin”
When you ask Juan-Carlos Torres what he thinks of the current economic situation, he does not hesitate to answer, “It is the world that adapts to us, rather than the other way around.” With this little joke, the CEO of Vacheron Constantin wants to emphasize that the brand’s strategy has been established many years already, and that nothing will change it. This includes an economic crisis which, by diverting attention—and wallets—away from the most bling bling of false values and refocusing them on the most perennial of values, helps to reinforce a brand that has never deviated from its fiercely timekeeping vocation.
The brand’s communication this year places the accent on the PoinÇon de GenÈve (Geneva Seal) that applies to 100 percent of the watches coming out of the Geneva manufacture. “Vacheron Constantin is making a huge effort to educate the public about what this label means,” insists Torres. Perhaps the rumours indicating that Patek Philippe, the other important brand associated with the PoinÇon de GenÈve, is pulling out of this program partially explains this particular push in the brand’s communication.
Whatever the case, Vacheron Constantin’s 2009 offer is well placed under the sign of timekeeping classicism, symbolized by the Geneva Seal.
From the product point of view, the brand is emphasizing a new series of models in the Patrimony Traditionnelle line. Purity, even purism, rigour, clarity of expression, and equilibrium are evident in a series of watches encased in similar round cases with tiered horns, a fine bezel, facetted indexes, dauphine hands, and silvered dials: Chronograph, Perpetual Calendar Chronograph, Skeleton, Jewellery, and 38mm Patrimony Traditionnelle versions. The latter model houses the new manual-winding Vacheron Constantin 4400 calibre that, equipped with an imposing barrel, has a power reserve of 65 hours. With its beautiful movement, entirely hand decorated, this watch should become a reference for the long term in the Vacheron Constantin universe.




Perpetual Calendar Chronograph by Vacheron Constantin
Montblanc Star Nicolas Rieussec


Montblanc affirms its watchmaking ambitions
We tend to forget all too often, but Montblanc, with it’s writing instruments, jewellery, leather goods and watches, is, after Cartier, the second brand of the Richemont group.
Again heading up the watch and jewellery division of the Hamburg brand after a detour at Harry Winston, Hamdi Chatti intends to make Montblanc a major player in the haute horlogerie sector. To do so, he now has two complementary “resources” at his disposal: the Rieussec project (named after the inventor of the chronograph in 1822 that used ink to mark the measured time), which was launched five years ago and conducted with the Val Fleurier manufacture, and the integrated mini-manufacture Minerva (40 people, 20 skill sets), which was taken over in 2006 and renamed the Institut Minerva de Recherche en Haute Horlogerie.
Completely renovated, the Institut Minerva has permitted Montblanc to present two lovely traditional timepieces under the label Montblanc Collection Villeret 1858 (the name is derived from the town where Minerva is located and the date of its founding). These pieces include a Grand Tourbillon Heures MystÉrieuses and a Grand Chronographe RÉgulateur. With its enormous 14.5mm screw balance with a moment of inertia of 59mgmc2 (compared to the usual 7 to 10 mgmc2) placed in an 18.4mm carriage located at 12 o’clock, as well as its mysterious hours (hands designed on sapphire discs) positioned at 6 o’clock on an uncluttered dial with the same dimensions as the carriage, this Tourbillon is one of the most imposing and beautiful pieces that were presented this year. The perfect and classic finishing of the flared case and the finely guillochÉed rose gold dial give this piece an exceptional appearance.
Another remarkable timekeeper, the Grand Chronographe RÉgulateur, is a single pushbutton chronograph equipped with a Home Time indicator flanked by a Day/Night display. The manual-winding in-house movement has a power reserve of 45 hours and is equipped with a “warning hand”. Hidden under the main hand, a red hand detaches during the last 12 hours to signal the approaching end of the power reserve on a red scale.
Lastly, the Rieussec Collection is growing with the addition of a very nice manual-winding, single pushbutton Open Date Chronograph.




Grand Tourbillon Heures Mystérieuses by Montblanc
Pershing 30 Seconds Tourbillon by Parmigiani
Excalibur Skeleton-Excalibur Tourbillon by Roger Dubuis


Launch of the Atelier Parmigiani concept
Parmigiani is essentially continuing along its chosen path while intensifying efforts in the area of feminine timekeepers with the Kalparissima line. This collection is equipped with a double barrel automatic movement, maintaining a power reserve of 55 hours. The brand is also strengthening its partnership with Pershing, with a skeletonised Pershing 30 Seconds Tourbillon (very subtle colouring in the lilac, blue, and anthracite tones, and platinum bridges by ionisation). Parmigiani is also increasing its efforts in the sporty line of the Tondagraph, equipped with a chronograph tourbillon.
But Michel Parmigiani also wants to advance a new concept, which he calls the Atelier Parmigiani. So what does this mean exactly? “There is a huge amount to do in the realm of after-sales service, which in general, is often not what it should be, nor is it worthy of Swiss Haute Horlogerie. With our idea of Atelier Parmigiani, we want to set an example because we are convinced that after-sales service is one of the keys to the future.”
Parmigiani has thus decided to gradually open a number of spaces entitled Atelier Parmigiani in the great capitals of the world (the first to open is in Moscow). They will not be stores or boutiques, nor will they sell anything. Instead, they will be presentations intended to deepen the public’s understanding of the brand and its values. Each of these spaces will have its own watchmaker, specially trained by Parmigiani, who will assure a very high level of after-sales service. A bold move, this deserves to be closely watched as time goes by.

A new era at Roger Dubuis
Mathias Schuler, who came from IWC, was recently named as CEO of Roger Dubuis, which has been acquired in its entirety by the Richemont group. The man certainly has his work cut out for him. Everything, or nearly everything, has to be redone—organization, collections, distribution, communication—except the brand’s veritable “treasure”, its 31 original movements, all different and all usable, but on condition that the quality and the reliability can be improved.
Mathias Schuler’s Germanic rigour will certainly serve him well in his new adventure. In the short term, the structure of the manufacture (400 people) has been redesigned into five directions: technical, commercial, finances, human resources, and communication. With each function having been clearly defined, the brand will undergo a strict evaluation of its strengths and its weaknesses in each domain. This will be followed by the reconstruction of its distribution and its after-sales service.
“Aesthetically, the brand is not going to become subdued,” explains Sylvie Rumo, who remains at the head of the brand’s communication and marketing division. “We want to remain different. We do not want to conform to the norm.” The brand’s design creativity is thus part of its heritage, although it has more or less overshadowed another strong feature, the quality and originality of the movements, of which 100 percent are recipients of the prestigious PoinÇon de GenÈve (Geneva Seal). “We consider this as a complication in itself,” adds Rumo. The brand’s particular mix of movement and style will thus be returned to the centre of attention, along with communication that is now finally up to the level of this originality.
As for distribution, everything needs to be reconstructed. Between “the worrisome markets” (such as the USA), the markets “to strengthen” (such as Asia and Japan, which are essential to the brand), and those that need to be reorganized or simply opened up (notably Europe and Russia), the task is immense. And the current economic situation is certainly not helping matters, especially since Richemont may be slowing its investments. But the mission ahead is not hopeless because Roger Dubuis’ offer is quite unique and unlike nearly all others.
Given the few short months between the brand’s acquisition by Richemont and the SIHH event, we cannot really expect see a lot of new products. Those that were presented remain structured around a few strong lines: mainly the Excalibur (the brand presented a skeleton double tourbillon whose movement has been optimised); and the King Square (with a new column wheel chronograph. These are just the beginnings of an ongoing reconstruction at Roger Dubuis.


SIHH Website

Source: Europa Star February-March 2009 Magazine Issue