WATCHES & JEWELLERY FINANCIAL TIMES SPECIAL REPORT | Saturday September 8 2012 www.ft.com/reports/watches-jewellery-sept2012 | twitter.com/ftreports

Inside this issue Brands Richemont Sky is still took the Russian patent office to court on its home turf and won the limit Page 2 Second lines The sibling marque is not to be sniffed at, especially if it is Rolex’s for those Page 4 Bloggers Disdain is fading as the industry recognises its place in the digital world Page 5 at the top Planetary life Audemars’ Hard luxury ranges are accessories, notably Chanel, Versace has part and, most recently, Louis Vuitton, are funded an seen by customers as the rebalancing traditional portfolios by observatory most portable, transferable entering the sector. in a form of wealth in times of Branded sales make up 19 per cent celebration of the global fine jewellery market, of the link economic uncertainty, against 50 per cent and 38 per cent in the leather goods and eyewear sectors between writes Elizabeth Paton respectively. So, many see untapped star gazing and horology market potential, particularly given Page 6 ince the collapse of Lehman the appetite for “status symbol” Brothers in 2008 and the ensu- spending by consumers in emerging High frequency Why spend ing global financial crisis, one markets. so much money on expensive of the few resilient sectors has The characteristics of the sector engineering? Page 7 Sbeen the luxury goods industry. have also made it easier to insulate Consumer demand for prestige prod- against the impact of market volatil- ucts has appeared insatiable – notably ity. When 2009 saw a decline in Swiss Paris Biennale The antiques from the Bric economies – and was watch exports of 30 per cent, compa- fair has become an extremely reflected in the strong performances nies responded by expanding global important event for jewellery of market leaders such as PPR, Rich- retail networks and streamlining Page 10 emont and LVMH. wholesale operations. Yet results announced over the past The past three years have seen con- Creative directors As few months reveal something of a sistent organic growth of more than businesses have passed into slowdown, catalysed by sluggish 20 per cent. “The elite hard luxury growth in China and the continuing brands have recorded consistent the ownership of big groups, eurozone debacle. growth for two main reasons,” says they need to keep their In particular, sales in soft luxury Thomas Mesmin, a luxury analyst at personality Page 13 such as ready-to-wear lines and Cheuvreux. leather accessories have slipped, “Their watch and jewellery ranges Lab-made diamonds Fakes while management teams across the rarely offer discounted prices or more are gaining acceptance, even sector have aired a cautious long-term affordable lines, unlike clothes and among the wealthy view on the sustainability of stellar accessories collections. But, more Page 14 growth. importantly, they are still seen by For high-end hard luxury brands, customers as the most portable, trans- however, the sky continues to be the ferable form of wealth in times of eco- Family story limit. While some larger companies nomic uncertainty – significantly Weathering the storm: they are made. For generations, pres- they are looking to retain value, then What such as Tiffany have suffered slightly more reliable than stocks and shares.” prestige jewellery and tige jewellery has been a safe haven these things make a big difference. happened in recent months, haute luxe watch Stanislas de Quercize, chief execu- watches have been a for value.” Given we are a brand that only offers when Olivier and jewellery businesses seem to tive of Van Cleef & Arpel agrees. safe haven for value Getty He says clients are more demanding the very best, we can only see this as Reza took have weathered the downturn rela- “Hard luxe holds more long-term than they were before 2008. “They a reassuring sign for our business.” over Page 16 tively unscathed. Some brands, tradi- value than soft luxe creations, by want reassurance of the ultimate An important trend has been the tionally known for their clothes and virtue of the commodities from which quality, provenance and expertise. If Continued on Page 2 2 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery Richemont’s Russian victory is legal landmark

Brands James Shotter reports on a big stride in protection of intellectual property

arlier this year Patrizio Bertelli, the head of Prada, stirred up a storm in the world of fashion by declaring: E“We don’t want to be a brand that nobody wants to copy.” Most of Prada’s peers are rather less relaxed about having their intellec- tual property infringed. This year has been a bumper one for the IP lawyers, with high-profile suits ranging from Gucci and Guess’s wrangle over shoe trademarks, to Burberry’s successful pursuit of Chinese counterfeiters. The IP case with the most far-reach- ing implications for luxury goods makers, however, had nothing to do with copying. It played out in the Russian Federal Supreme Court in Moscow, and pitted Richemont, the Swiss luxury giant, against a Russian company called Ritter Gentleman. Ritter had registered the trade- marks Jaeger-LeCoultre and Vacheron Constantin – two of Richemont’s most famous Swiss watch brands – in its name in Russia. Ritter was not, however, using them to sell watches in the local market: instead it was using them to sell clothes. This co-opting of brands to sell unrelated goods is not unique to the world of luxury. In 2009, for example, Nasdaq had to ward off an attempt from an Italian company called Antarctica to register the exchange operator’s name as a trademark for various types of sport- ing goods. But as Marcus Höpperger, director of the law and legislative advice division of the World Intellectual Property Organisation, says: “there is an added temptation with luxury com- What’s in a name? Richemont, duped. A court agreed and Richemont The most immediate consequences “This is really an extraordinary step. panies because of the prestige associ- which owns Vacheron appealed. By April the case had of the ruling will be for companies Hopefully we will see courts moving ated with their brands”. Constantin (above) and worked its way to the Federal operating in the Russian luxury goods in the same direction in other jurisdic- Richemont duly applied to have Rit- Jaeger-LeCoultre, won a Supreme Court, which found in the market. tions,” she says. “I could imagine that ter’s trademarks cancelled on the trademark appeal in Moscow What has really got Swiss company’s favour. Given Russia’s ample supply of CIS [Commonwealth of Independent basis that customers were being lawyers and fashionistas That decision, lawyers said at the super-rich, that is no mere bagatelle: States] countries, which tend to look misled over the origin of the goods time, was a legal landmark. Histori- McKinsey, the consultancy, reckons it to Russian law, might take note of they were buying. excited is the prospect the cally trademarks were tied to specific was worth $5.3bn in 2011. this decision.” The Russian patent office refused, ruling could influence legal jurisdictions. However, as commerce What has really got the lawyers and Others in the world of intellectual arguing that watches and clothing became more global, they have fashionistas excited, though, is the property think that the case’s prece- were different products, and so there decisions in other nations increasingly become enforceable prospect that the ruling could also dent value could travel further still. was no chance of consumers being across borders. influence legal decisions in other Even as international law begins to The Russian court’s ruling recog- countries – and in particular in catch up with one type of infringe- nised that trademarks can be pro- emerging markets, an increasingly ment of intellectual property, how- tected across seemingly unrelated important source of revenue for lux- ever, the march of technology is open- classes of goods as well. ury companies. but where intellectual ing up other fields in which luxury That, says Janet Hoffman, a partner property protection is in practice goods makers must defend their at the law firm Fross Zelnick Lehr- often something of an optional extra. brands. man & Zissu, is the way things should At the international level, says Since the beginning of this year, be. WIPO’s Mr Höpperger, protection ICANN, the body that regulates the “The law should not permit third against trademark infringement in naming system for websites, has been parties to register or use, for example, the case of unrelated classes of goods accepting applications for new generic ‘Kodak’ for bicycles,” she says. dates back to the World Trade Organi- top-level domain names that will be “Because of the effort and invest- sation’s agreement on Trade-Related used alongside the established ones ment that goes into developing the Aspects of Intellectual Property such as .com or .org or .uk. Anyone reputation of a globally well-known Rights, which was adopted in 1994. with $185,000 to spare can apply for a brand, the owner should have the It takes time, however, for the prin- name. exclusive right to benefit from that ciples enshrined in international trea- Fresh from its Russian victory, reputation, even in respect of goods ties to work their way into jurispru- Richemont has been an enthusiastic and services beyond those for which dence of different nations. Richem- filer. So far it has applied to secure the mark might have initially been ont’s Russian victory, Ms Hoffman the right to domains named after no known or registered.” reckons, could accelerate that process. fewer than 10 of its brands.

Sky is still the limit for those at the top

Continued from Page 1 number of pieces and lots that since the launch of her away from analysing sales boom of fine watch and jew- per auction each year, division in 2005, she has on a country-by-country ellery sales at leading auc- heavy demand for exquisite seen a big shift in spending basis. Regions have become tion houses. pieces that are often in lim- patterns and demands – increasingly irrelevant post- Larry Pettinelli, president ited supply means that the notably a quest for thor- 2008. of Patek Philippe in North prices are edging higher ough knowledge and abso- Cheuvreux believes that America, says auctions too. lute quality. while China generates 30 have underpinned the “The ever increasing “Chinese customers are per cent of global watch brand’s business for the prices – and the willingness first and foremost invest- and jewellery sales, Chinese past 20 years. “We have of people to continue pay- ment buyers, and with a travellers are behind more always encouraged clients ing them – shows just how market dip, this mentality than 50 per cent of total to pass their watches down deep the market is,” says is inevitably strengthened. sales when accounting for through the generations. Mr Kadakia. “Buyers don’t Not only have prices recov- spending in tourist shop- “Now, they are realising simply see value within the ered since the crash, they ping hubs such as London, the time that passes also commodities; they are have considerably sur- Paris and New York. adds value – a piece can showing their appreciation passed their pre-2008 peak.” Mr de Quercize at Van gain considerable value if of heritage and craftsman- She says the most popu- Cleef & Arpels notes that: sold 30 years down the line. ship.” lar precious stones with “Double-digit growth in Demand for vintage models Inevitably, the influence first-time buyers are nor- Europe isn’t necessarily by collectors is enormous – of Chinese consumers con- mally white diamonds in being driven by Europeans it’s a means of insuring tinues to attract considera- round, brilliant shapes. any more. We need to step your wealth in a way that ble attention. The overall “The past two years have back and take a global can also be enjoyed.” luxury market is expected seen a particularly strong viewpoint, recognising that Mr Pettinelli believes that to grow by 15 to 20 per cent travellers are the 21st cen- this only applies to the in 2012. Euromonitor Inter- tury luxury customer.” industry’s most deluxe her- national has reported that The sector is Mr Pettinelli of Patek itage brands, such Patek the Chinese watch and jew- particularly strong Philippe is cautiously opti- Phillipe and Rolex, protect- ellery industry is worth mistic about the sector’s ing them from external $4bn alone, with a steady in China, partly overall outlook. “Many market fluctuations. “The predicted expansion rate of because watches affluent consumers are rein- third-party endorsement of 17 per cent a year to 2017. ing in spending – they don’t artisanal craftsmanship The sector is particularly and jewellery are want to stand out when oth- means the industry suffers strong thanks to a booming ers are hurting, particularly fewer ups and downs.” middle class of aspirational used for bribery in the run-up to elections. Rahul Kadakia, head of purchasers, a strong cul- The luxury watch business fine jewellery at Christie’s tural trend for gift giving, degree of customer interest will ultimately never take a in New York, says that, in and the popularity of from mainland China, huge fall . . . but we are very December 2008, when global watches and jewellery being although this boom will tail fortunate.” markets were at their most used as objects for commer- off.” says Ms Wong. So what lies on the hori- depressed, the industry wit- cial and political bribery. “We are seeing economic zon for watches and jewel- nessed the $24.3m sale of Unlike in western mar- slowdown, but annual gross lery, amid a global down- the Wittelsbach Diamond, kets where the alpha luxury domestic product is grow- turn? the most expensive jewel consumer tends to be an ing at about 8 per cent, “Some kind of slowdown ever sold by the house. older female, in China the which you aren’t seeing is inevitable,” says Thomas Precious stone sales have bulk of sales are to younger anywhere else.” Mesmin of Cheuvreux. been on the upswing ever men wanting to display However, some commen- “However I’m not wor- since, with even more ostentatious signs of newly- tators also emphasise the ried,” he adds. “Twenty per record sales than before the found wealth – hence the resilience of mature mar- cent growth year-on-year crash. Furthermore, the size popularity of luxe wrist kets. Christie’s says the was never going to be sus- of Christie’s hard luxury watches. bulk of buyers at the $116m tainable. I am confident we business has doubled over However. industry Elizabeth Taylor jewellery will continue to see low the past three years: the observers warn that the sale last year were from double-digit growth for the first half of 2012 saw watch Chinese luxury consumer is Europe or the US and most second half of this year and and jewellery sales of not to be undermined – or of the company’s biggest well into 2013. $365m, against $338m for underestimated. sales remain to western cli- “Compared with virtually the whole of 2009. Patti Wong, the Hong ents. every other industry sector, While the division contin- Kong-based chairman of Others argue that there business for hard luxury ues to offer about the same Sotheby’s Diamonds, says needs to be a movement brands is booming.” FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 3 Watches & Jewellery Asia retains its lustre despite the slowing economy

and luxury goods makers of all Chinese Manchuria, we have to CEO interview stripes have been keen to tap check that our boutiques are of Thierry Fritsch into this new accumulation of the highest possible standards, wealth. that our people are properly James Shotter talks to In recent months, however, trained,” he explains. there have been gathering The obvious next stop for the head of Chaumet signs that the Chinese economy Chaumet’s expansion, Mr is slowing, prompting some to Fritsch concedes, would be the question whether Asia’s US, where the company still hierry Fritsch appetite for luxury goods might has no boutiques. apologises for ringing be waning. But nothing is imminent, he early. “I’m just about Mr Fritsch is sanguine about adds. “No timetable has been to get on a flight,” such developments. set.” TChaumet’s chief executive “I’m not very worried about Such international explains. “We’re opening a a slowdown in Asia. Chinese adventures are a far cry from boutique in Shenyang.” purchases have held up well. I Chaumet’s Parisian beginnings. The store will be the Parisian am very confident in Asia’s The company was founded by jeweller-cum-watchmaker’s long-term prospects,” he says. Marie-Étienne Nitot, who second in Liaoning, and its Nor is he concerned about worked for a while with the 20th on the Chinese mainland. the financial strains of jeweller of Marie-Antoinette, It marks the latest step in expansion, which have tripped before – legend has it – the international expansion up many independent brands. winning the favour of Napoleon that the company has been “Jewellery is a very capital- Bonaparte by catching his pursuing since being bought by intensive business – you have bolting horse. the fashion giant, LVMH, in As a gesture of gratitude, 1999. Napoleon appointed the The expansion is proceeding ‘Even in Manchuria, craftsman as imperial jeweller, apace. A decade or so ago, we have to check and in the centuries since, Chaumet, which began life in Chaumet has built up a 1780 as a jewellery house that our boutiques reputation for its jewellery (in catering to the whims of the are of the highest particular tiaras, of which it Parisian court, was essentially has fashioned more than 2,000) still a French company with an possible standards’ and its watches. agent in Japan. “We do only jewellery and Today, it has 80 boutiques watches. We have done around the globe in locations to pay for the stores and so on jewellery for 230 years, and ranging from Russia to – but we have the support of watches for 200 years, and we Morocco to the Middle East. LVMH, which makes it easier are sticking to this. That is an The focus, however, is Asia, for us to expand,” he says. important part of our strategy,” which is home to roughly half Crucially, he adds, LVMH’s says Mr Fritsch. the boutiques, and last year largesse means that Chaumet Jewellery accounts for about drew in about 60 per cent of is in a position to maintain two-thirds of Chaumet’s sales revenues. tight control of its distribution and watches for the remainder, The Asian focus of network; three-quarters of its he says, but he is reticent Chaumet’s expansion, says Mr turnover comes via its own about absolute numbers. Fritsch, was in part the result boutiques. In contrast to Philippe of already having a man in This enables the company to Léopold-Metzger, his Japan. determine everything from counterpart at Swiss peer But it is also a reflection of pricing to how its brand is Piaget, who is keen to boost the shift of global wealth from presented. the brand’s men’s watches, Mr Thierry Fritsch: Chaumet began life in 1780 as a jewellery house catering to the whims of the Parisian court west to east. “My main concern is to keep Fritsch believes that there is This year, Asia overtook the spirit of Chaumet as we scope for Chaumet to exploit lots of technical complexity however, that is growing the “In the luxury business, we world, and they account for North America to become the expand. We have to do it its dual heritage by making and very precise movements. fastest. Mr Fritsch is keen to have very few markets that are only 20 per cent of the region with the most properly. If we do it too fast, more jewellery watches for But I also think that there is take advantage of this trend, not branded. market,” he says. millionaires, according to the we will lose the essence of the women. potential for more ladies’ and thinks that branded “The market for jewellery is “This is why fashion brands Capgemini and RBC Wealth brand. “There has been a lot of jewellery watches,” he says. jewellery in particular, offers a huge, but there are only 20 to are moving in. The opportunity Manager World Wealth Report, “That means that even in focus on watches for men, with It is the jewellery segment, lot of potential. 30 branded players across the is huge.” 4 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery Watch out for the ‘younger brothers’

t was one of the sim- Rolex makes about ered designs and can draw Second lines plest watches of the 750,000 watches a year. It upon the technical and Basel Fair: black dial dominates the sports watch logistical strengths of its Nicholas Foulkes with gilt detailing and sector and has been around parent. Ia red rotating bezel; a clas- since 1905. But Tudor is no A more polite way of explains why some sic diving watch, a pitch- newcomer either; it is describing the relationship bigger names are perfect evocation of a mid- almost as old as Rolex. is perhaps that of a younger reviving lesser 20th century sports watch. The name was registered brother, in that there are And yet, for all its classi- in 1906, but it was not until shared characteristics known marques cism, it was one of the most 1936 it was bought by Rolex between the two marques talked-about pieces at the founder Hans Wilsdorf. In but clear differences too. fair. the years after the second This is not just a cheaper It was more than just its world war, he offered Tudor “me too” product. design that made it a talk- as a good quality, lower The same can be said of ing point; the name of its priced alternative for cus- the relationship between maker, a brand that is not tomers who wanted a relia- Girard Perregaux and Jean- yet officially available in ble and dependable watch Richard, a brand dedicated either the US or the UK, but found a Rolex beyond to Daniel Jean Richard, a accounted for much of the their reach. pioneer of watchmaking in interest. As a marque, it has come the Neuchatel region during The watch was the Herit- to enjoy a cult status, with the 17th century. The dor- age Black Bay and the collectors who have prized mant brand was bought by maker is Tudor, but even if its Ref 7031, a funky early the late Gino Macaluso and you have not heard of 1970s chronograph that reactivated to create a com- Tudor, then you will cer- offers a sort of Paul New- petitively priced sports-ori- tainly know its sibling man Daytona feel at a frac- ented range. brand, one that is most defi- tion of the price, and its Now, with PPR as major- nitely available in the US, Submariner models which ity shareholder, the sepa- the UK and almost every- share a look with their rate more youthful and where else on the planet: Rolex siblings. adventurous image of the Super sibling: Tudor, owned by Rolex, was a talking point at the Basel Fair with this Heritage Black Bay Rolex. By comparison, the pro- brand, promulgated by such duction of the past 20 years recent launches as the rug- has done little to excite the ged Highlands watch, is aficionado: conscientious likely to be further devel- and competent rather than oped, differentiating it from dazzling, a function perhaps the haute horlogerie identity of the long period of of Girard Perregaux. exposure to the Chinese However, the sibling market at a time when it brand need not always be a gradually disappeared from lower priced alternative. some big western markets. This is demonstrated by the Now, however, it is considerable number of sub- returning to the Old World sidiary niche brands that with a management team have been developed at that has decided to leverage Watchland, the Franck the appeal of the marque to Muller headquarters, just collectors by producing her- outside Geneva. itage models. The pro- Take, for instance, Backes gramme started in 2010, & Strauss. For many years, with the launch of a herit- this historic diamond trad- age chrono that evoked the ing company was a supplier spirit of the quirky 7031. of precious stones to Franck It was an instant and Muller but, following a astonishing success, offer- management buyout, Vart- ing sleek styling and a kess Knadjian, its chief great price/quality relation- executive, entered a joint ship. As well as evoking the venture with Vartan Sir- past, Tudor is offering con- makes, chief executive of temporary technical time- Franck Muller, to create a pieces. Alongside the Black high-value, low-volume Bay, it offers a modern take brand of diamond-set on the diving watch, the watches with a strong link Pelagos, which keeps such to Backes & Strauss’s roots Tudor design cues as the in Georgian England. square-ended hour hand, “We are not trying to be a but features a titanium case regular purist watch manu- water-resistant to 500 facturer that is entirely in metres, with a helium the hands of Franck escape valve and a nifty Muller,” says Mr Knadjian. self-adjusting spring-loaded “What we do is about the clasp that contracts under diamonds on the watches: the pressure of deep diving design, history and heritage and expands as pressure of the brand, which Franck reduces. Muller does not have.” There are two reasons for But even though Franck the success of this strategy Muller is known for compli- and the first is that it is cations, Mr Sirmakes thinks extremely well done. The there is scope for spinning Rolex machine is a power- off the oeuvre of the tal- ful one and, having decided ented watchmakers work- on an identity for Tudor ing in-house into micro that is discrete from Rolex, brands. Pierre Kunz, known extreme care in design and for its retrogrades is one, considerable technical and Pierre Michel Golay and production another. The resources have been strategy is to employed to make it create highly happen. specialised The second is brands with pricing. Of annual pro- late, sports duction that watch spe- u s u a l l y c i a l i s t remains in b r a n d s three fig- such as ures. Rolex and, M e a n - t o a while, at d e g r e e Tudor, pro- B r e i t l i n g d u c t i o n and Omega, numbers are have left the not made pub- s e c t o r lic. But it is safe b e t w e e n to assume that SFr1,000 and they are not much SFr5,000 and, more than a quarter of rather than the Rolex output. abandon this Nevertheless, with territory to the such critical and com- likes of TAG Heuer, mercial successes as the Rolex has decided to revital- heritage chrono and the ise its subsidiary brand. Black Bay, Rolex’s younger What makes it so attrac- brother is certainly one to tive is that it does not pre- watch. tend to be something it is not. It works with ETA movements, but it clothes Revival: the JeanRichard them in carefully consid- Highlands model

Contributors Elizabeth Paton Steven Bird Assistant editor, Designer FT Luxury 360 Andy Mears, John James Shotter Wellings, Jo Laycock Frankfurt Correspondent Picture Editors

Eric Sylvers For advertising details, Milan Correspondent contact: Charlotte Williamson Robin Swithinbank Nicholas Foulkes +44 (0)20 7876 4038 Claire Adler [email protected] Simon de Burton or your usual representative Timothy Barber Jim Shi All FT Reports are available Avril Groom on FT.com. Anthony DeMarco Go to: Vivienne Becker www.ft.com/reports Syl Tang Lucie Greene Follow us on twitter at Elisa Anniss www.twitter.com/ Simon Brooke ft.reports FT Contributors All editorial content in this Stephanie Gray supplement is produced by Commissioning Editor the FT. FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 5 Watches & Jewellery Web nerds are now part of the family

and a profitable business. “I Blogging still believe many Europe- ans think of ‘blog’ as a four- The influence of letter word – until they internet is growing, realise just how many peo- ple are reading them, and reports Robin what kind of people at Swithinbank that,” he says. Part of the reason the brands are changing their t has been a while stance is that the blogs coming, but the watch themselves are growing up. blog is finally gaining Some are sophisticated traction. Once the online publications, more Iunloved offspring of the digital magazines than marriage between the streams of consciousness, watch industry and publica- making them increasingly New wave: Benjamin Clymer started New York-based website hodinkee.com as a hobby and turned it into full-time work and a profitable business tions devoted to immortalis- appealing to many luxury ing it, watch blogs and brands. run ablogtoread.com, a blogs compiled by Cision, bility. Anyone with a com- the growth of his company. networks,” says Andrew and I can’t scribble my own those behind them are Take Piaget, which ran a news and review site, since an international media rela- puter can post a blog, so a “There is no doubt that, Carrier, a marketing spe- opinion or question at the becoming part of the family competition on Hodin- 2007, was one of the first on tions company. lot of misinformation finds without them, we would cialist who cofounded the bottom of the page and as they experience a surge kee.com offering readers the watch blog scene and But trust remains an its way on to the web.” have taken longer to grow website theprodigal- have others respond.” in influence. the chance to visit its man- has come to the attention of issue. Brands are still wary This may be true, but is our brand globally,” he guide.com, which reviews The rise of the watch blog Solid reputations have ufacture in Switzerland last a number of brands because of the raft of inexperienced unlikely to prevent blogs says. cars, gadgets and films, as offers further evidence of emerged, traffic figures year. Alexandre Wehrlin, of his frank style. bloggers posting unmoder- from growing in influence. Bremont might be the well as watches. the increasing relevance of have soared and, all of a Piaget’s e-business man- “There was the time ated information in an envi- The challenge for brands is exception rather than the “Whether it’s friends the internet to the luxury sudden the enthusiastic ager, says: “This kind of someone from a watch ronment that is so easily how to harness their poten- rule. In the blogging com- down the pub, the online sector. Mr Carrier is une- watchnerd with a good partnership is excellent for brand sat me down in a accessible. Stephen Urqu- tial. munity, there is a consen- publications they read or quivocal about the future. grasp of WordPress has the blog, because it can very kind and almost patri- hart, president of Omega, “Blogs are here to stay,” sus that the industry has their Twitter stream, people “The good blogs will found himself with a busi- present its followers with archal manner to explain to says: “Some are clearly says Giles English, who been slow to catch on to the value recommendations of replace the adverts, vanity ness model on his hands. qualitative knowledge and me that around the office much better informed than founded Bremont, a British potential engagement a their network above the publishing and sponsor- How has this happened? they called me an ‘arrogant others and obviously there’s luxury watch brand, with blog can drive between a influence of advertising. driven print magazines that “The digital space is a pr**k’,” he recalls wryly. a considerable difference in his brother Nick in 2002. brand and a consumer. And they expect to be able have been the dominant much stronger influencer of Brands are wary “Another time, I sat down the quality of the writing. Bremont works with a “Nowadays, customers to engage. I love glossy force behind watch-buying buying habits than print,” of inexperienced with a brand and they The great strength of blog- number of blogs and Mr form their opinions and magazines but I’m always decisions” he says. “The says Benjamin Clymer, pulled out their ‘file’ on me, ging – that it democratises English credits them with therefore their buying pref- slightly disappointed when industry needs to wake up founder and executive edi- bloggers posting while other brands have media – is also its vulnera- playing a significant part in erences from their social I get to the end of an article to that new reality.” tor of New York-based web- unmoderated admitted to having confer- site hodinkee.com. ences to discuss me.” “It’s more regular, more information Mr Adams may be the personal, more dynamic bad boy of watch blogging and, most importantly to to some brands, but his site advertisers, more measura- in-depth articles. It’s good has developed a huge fan ble. Much of the increased for followers too – they can base and now regularly influence of online publica- find interesting information racks up 275,000 unique vis- tions has to do with an about high-end watches – its a month, plus a further industry starting to realise and, of course, for the 190,000 monthly views of that luxury can be, has brand’s image.” short reviews he posts on been, and will continue to Collaborations such as YouTube. Most of those be digital.” this have not come about come from important terri- Mr Clymer started Hodin- overnight – luxury watch tories such as US, Hong kee.com in 2008 as a hobby brands have been keeping a Kong and the UK. because he was bored at his “watchful” eye on blogs for In August, Mr Adams’ job at UBS and has since some time. blog was ranked 19th in a turned it into full-time work Ariel Adams, who has list of the Top 50 fashion How to kick-start your bright idea

Once they launched their with factories in China to Internet finance campaign, Mr Migicovsky help with production. In the and his partners expected past few months, Mr Migi- Claire Adler looks to have to wait a month to covsky has travelled regu- at a campaign to find enough individuals to larly to China to visit facto- commit $115 each to pre- ries and spent several days raise capital online order a watch to raise their at his alma mater, the target. Within two hours, University of Waterloo, Pebble had hit its goal of Ontario, to recruit employ- A watch brand has emerged $100,000. That night, they ees. as the king of crowdfund- had reached $600,000. Mr Whether Pebble succeeds ing, a trend that allows cre- Migicovsky went out for a in the long term or not, the ative people to connect beer to celebrate, went story of its staggering suc- online with the public for home and went to sleep. cess on Kickstarter might cash to fund their business When he woke up, Pebble just be a game-changer ideas. was at $1m. within the usually closed- In April, after numerous Within six days, the door world of watchmaking. rejections from venture cap- project had become the “Crowdfunding allows italists and rapidly running most funded project in creative individuals to com- out of cash, five 20-some- Kickstarter history, raising pete with the research and thing men from Silicon Val- more than $4.7m with 30 development and innova- ley turned to Kickstarter, a days left of the campaign. tion units of corporations,” site that allows creative Within 30 days, Pebble had says Milton Pedraza, chief companies, including many raised $10.27m from 68,929 executive of the New York- film-makers and musicians, people on Kickstarter. based Luxury Institute. to raise money from indi- Later this year, Pebble is “It unleashes a wave of viduals online. due to ship the first 85,000 creativity that is no longer The site does not charge watches to its backers. One limited to those with deep to set up a campaign. But, if of the watch’s big selling pockets. In the watch indus- it is successful, the site points is its sleek electronic try, it means that innova- takes 5 per cent of the final paper display that is tors from anywhere can amount. Amazon, which fund their projects and that processes the payments, Design: Eric a great deal of innovation takes 3 to 5 per cent. Migicovsky’s will compete with estab- Eric Migicovsky, a Pebble is a lished brands.” 26-year-old engineer, and watch with Mr Pedraza believes this his partners aimed to raise a particular could prompt large watch $100,000 to create Pebble, look companies to think about a watch that communicates innovation in a new way. wirelessly with iPhones “Pebble is a harbinger of and Android phones via designed to be read in the things to come for the Bluetooth technology to sun. It is also designed to watch industry and other shuffle music, receive texts allow developers to create luxury categories. The large and Twitter and Facebook their own new games, run- watch companies may need messages, display applica- ning applications and more, to acquire innovators in the tions, show caller ID, adjust which can be downloaded same way that Google, the volume on your phone, through smartphones. The Apple and Microsoft acquire show you how far you Pebble battery is expected start-ups at premiums in have run or cycled and to last seven days and the order to stay competitive even become a remote con- watch comes with a USB and not allow themselves to trol for a PowerPoint pres- cable for recharging. be rendered obsolete by entation. “The success of Pebble innovators who are well- Mr Migicovsky, a Cana- confirms that people are funded and have nothing to dian, came up with the idea interested in adding tech- lose,” he says. for a hands-free device for nology and the internet into One to watch might be checking his email, texts their wearable accessories,” luxury mogul François- and calls, while studying says Mr Migicovsky, who Henri Pinault, chief execu- industrial design in the recently asked the person tive of Gucci and Girard Netherlands where he was who shares his apartment Perregaux owners PPR. an avid cyclist. to move out so that he As Imran Amed, editor of He could not keep looking could use his bedroom as Business of Fashion, has at his mobile while on his the company conference noted, Mr Pinault is a “self- bike and did not want to room. In August, Pebble’s proclaimed technology risk dropping it into one of six-strong team finally geek” who has “made dig- the canals. He began think- moved into rented office ital a strategic, CEO-level ing about adding smart- space in Palo Alto. priority” and he recently phone capabilities to a Pebble has retained “fancied” the Pebble on The watch and came up with Dragon Innovation LLC, a Fancy, a social curation InPulse, an early version of manufacturing consultancy, site, where he has 260,000 the Pebble. that helps companies work followers. 6 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery Hired ‘hands’ may turn out to be a concept that has legs

in order to take part in a competition. Watch rental “The wheels cost far more to buy than I would ever have considered Try before you buy can be paying, so I decided to rent them – but, after using them for three weeks, a way to tempt existing I came to realise why they were so owners to upgrade, expensive and appreciated the fact that owning them might actually be a explains Simon de Burton good idea. It then occurred to me that the same might apply to someone he saying that anything that renting an expensive wristwatch.” “flies, floats or fornicates” He sees the service as becoming should be rented is well available in three categories: try enough known – but what if before you buy, temporary upgrade Tthe object in question ticks? and outright rental. Luxury watch hire was launched “Try before you buy is aimed at the Time out: if you find it hard to choose, you could try out a watch by renting it from providers such as Watchfinder and Linde Werdelin this year as a pilot scheme by Watch- great majority of pre-owned buyers finder, the leading pre-owned e-tailer. who spend considerable time are deducted from the purchase price. £1,425 and command a weekly rental you can simply hand it back. It’s not For those remaining 49 weeks, it The results suggest the idea could researching alternatives before they “The outright rental category will of £230, while a £9,250 IWC Portuguese unlike leasing a car and being able to might as well be generating an have legs. take the plunge. Having the ability to be the most difficult to manage,” says could be had for a deposit of £2,310 exercise the option to buy it at the income”. After all, it has worked with many wear a watch for a week, live with it Mr Bowling, “because it entails the and £370 a week. end of the term.” He later used his The “try before you buy” aspect of other types of luxury goods, ranging and show it to friends, family, and highest risk, but, essentially, it would One of the longstanding Watch- newly acquired Jaeger-LeCoultre as a the scheme is not entirely new, how- from high-end handbags to supercars, colleagues before committing to buy- simply involve passing a scrutineer- finder customers among the 25 invited deposit against an IWC which he ever. Niche brand Linde Werdelin, so why not watches? ing adds another level of confidence ing process and paying a deposit and to take part in the pilot scheme is rented to wear to a wedding. which retails its products via its web- With its stock of close to 1,000 to the transaction. If the watch is pur- a weekly rental fee. The scrutineering Anthony Tarchetti, a 31-year-old golf But it is not only potential buyers site as well as from outlets around the pieces by dozens of dial names, the chased, the deposit and rental fee are aspect will be crucial to this and we’ll professional, who used his Breitling who find the service appealing – own- world, first offered its “Try It” service UK company is well equipped to pio- deducted from the cost of the watch,” manage the pool of watches available for Bentley wristwatch as a deposit in ers of high-end watches see it as an about three years ago. neer the service – although, perhaps says Mr Bowling. to members carefully.” order to rent a Jaeger-LeCoultre opportunity to make a return on their Prospective purchasers can sign up wisely, it has embarked upon the ven- The temporary upgrade service is “Someone we have known for sev- Squadra which he subsequently horological investments. via the website, after which they are ture with a degree of caution, initially for customers who already own a high eral years, for example, will have dif- bought. Mr Bowling says: “A couple of cus- called by a member of the Linde restricting rentals to 25 trusted quality watch but want something ferent access and privileges from Mr Tarchetti says: “I think one of tomers have expressed an interest in Werdelin sales team who secures a Watchfinder members with estab- better to wear, maybe to a special someone with whom we have no trad- the best aspects of the scheme is supplying their own watches to the holding deposit before despatching lished purchasing records. event. They use their current watch ing history or relationship.” being able to use your existing watch rental pool in order to make some the product for a free, five-day trial. Matt Bowling, director, says he was as a deposit against the upgrade and, The cost of rental will, of course, as a deposit against the hire watch. money from them. One person, for At the end of the trial customers inspired to introduce the scheme if they decide to make the change vary according to the value of the Renting enables you to find out for example, has a white gold IWC Big may opt to buy the watch for the after paying £1,100 to rent a pair of permanent, the rental fee and a part- watch. A £5,700 Rolex Submariner, for certain if you really like a particular Pilot watch which he estimates he retail price minus the deposit, or Reynolds wheels for his racing bicycle exchange price for the deposit watch example, would require a deposit of watch and, if you decide you don’t, wears for about three weeks a year. return it without charge. Best places to study phases of the moon

amount of which was and a selection of smaller Star gazing donated by Audemars telescopes. Piguet and various local “I must say it was a very Simon de Burton authorities. difficult project with many Using a combination of obstacles right from the reports on a amateur and professional start,” says Mr Pellett. horological labour, the structure was “But the passion, determi- built over an 18-month nation, patience and persist- collaboration period – when the mountain ence of everyone involved weather permitted – and bore fruit and now every- The eternal and inextrica- the AstroVal building was one in la Vallée de Joux ble link between horology officially opened in July and beyond can have a and astronomy is often 2011. chance to enjoy nature’s marked in the creation of Despite the fact that the perfection – the universe. complicated watches that project was started and “The observatory is open might show anything from managed by a band of for 10 months of the year – the phases of the moon to enthusiastic amateurs, the there is too much snow to the pattern of the night sky end result is a highly pro- reach it in midwinter – and above the hemisphere in fessional set-up. we have attracted many which the wearer lives. The observatory’s dome is people to the regular events But an employee of Aude- made from a special glass we stage there. It is difficult mars Piguet, the high-end fibre and designed to with- to imagine a more perfect watch brand, has celebrated stand exceptionally high place from which to gaze at time and space in an even winds, while the cylindrical the stars.” more radical way: by insti- base of the building was The AstroVal is not, how- gating the construction of a constructed using thermo- ever, the only observatory full-scale observatory for insulated bricks to main- to have benefited from the the promotion of star gaz- tain the internal tempera- help of a watch company. ing in the Vallée de Joux, Wempe, the German com- otherwise known as Swit- pany, was instrumental in zerland’s “watch valley”. AstroVal is not restoring an observatory Gilles Pellet, the head of the only 410 metres above sea level the company’s quality con- in the watch making town trol division, established observatory of Glashütte. L’Association d’astronomie to have benefited The building opened in de la Vallée de Joux in 2003 1910 and was equipped with together with Daniel from the help of a a refracting telescope and Fritsch, another amateur some of the most accurate astronomer. watch company timepieces, including a Initially, the two men marine chronometer and a set-up a Newton telescope ture during the bitterly cold precision pendulum clock on the top floor of a florist’s winters. donated by the town’s lead- shop in the centre of Le The heart of the matter, ing industrialist. Brassus but then decided to the main telescope housed The original purpose of go a step further and estab- on the top floor, is mounted the observatory was to pro- lish an organisation called on a 60cm diameter pillar vide Germany’s watchmak- AstroVal (a contraction of set in sand to minimise ers with a reliable time sig- the words astronomy and vibration. Supplied by nal by which to synchronise vallée) in order to raise Ritchey-Chretien, the US their clocks and watches – interest in their hobby optical company, and cost- but war and Communist among the locals and, in ing tens of thousands of dol- rule subsequently saw the particular, to provide lars, it boasts massive mag- building fall into decline nearby schools with access nifying power and is suita- before it was rescued dur- to the facility. ble for professional weather ing the early 2000s. By 2006, the idea had observations and data gath- Since 2006, Wempe has grown into a full-blown ering. used the building in con- project based on the idea of The dome can accommo- junction with Nomos as a constructing a purpose-built date up to three observers manufacturing base for its observatory among the at a time and has all the high-end chronometers. mountains where the clear necessary computer facili- air and lack of light pollu- ties for the downloading www.Astroval.ch tion would provide perfect and recording of astronomi- www.chronometerwerk- viewing conditions. cal information. The sec- glashuette.de The local authority ondary building contains approved and, a year later, AstroVal’s 1,000-volume after two astronomers from astronomical library the University of Geneva had helped to choose a suit- able site, architects’ plans AstroVal were drawn up for a round, observatory: two-storey observatory with everyone in la a five-metre diameter dome Vallee de Joux together with a separate has a chance building from which the to enjoy organisation would be run. the universe By the summer of 2009, all of the necessary permits were in place and Mr Pel- let and his fellow enthusiasts were well on the way to raising the S F r 1 . 2 m needed to bring the project to fruition, a l a r g e FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 7 Watches & Jewellery Industry races to achieve yet greater speeds

ometric precision in Switzer- tiny extra dial has a hand that High frequency land. spins away making a rotation Mr Scheufele says: “There are every two seconds, while the Timothy Barber people who want a high-per- case back of Chopard’s piece considers the virtues formance car. Even if they can’t puts a magnifying porthole over drive it to its top speed, they’re its fast-beating escapement. of craft over precision still fascinated by the perform- And then there is TAG Heuer. ance, or more accurately by the In a little under two years its potential performance. It’s a research and development unit he chief executive of similar thing with very precise has produced a handful of one traditional watch- watches.” chronographs under the Mikro maker recently High frequency in a watch banner that has reached described the mechan- refers to the speed with which frequencies as formidably high icalT watch industry as “craft- the escapement assembly oscil- as 1,000 hertz. ing and selling steam engine lates back and forth, so convert- These bring the satisfaction of locomotives in the era of the ing power from the watch’s central chronograph hands that bullet train”. mainspring into regulated time- rocket round the dial when acti- He adds: “You don’t want that keeping. The more oscillations vated – in the case of the Mikro- steam engine to break down, so per second the smoother and Timer, at 10 revolutions a sec- it should be high quality. But more precise the regulation. ond, with a stated ability to why spend gazillions to try to A normal escapement will time to a precision of 1/1000th of make it 5 per cent faster? Go oscillate at 28,800 beats per a second. and get a bullet train if that’s hour, or four hertz. Chopard’s Its latest creation, the what you want.” LUC 8HF runs at eight hertz, MikroTourbillonS, incorporates This is the question lurking in while Breguet’s new Classique two futuristic tourbillon escape- the background of the indus- ments into the high-frequency try’s latest arms race: the quest mix, one to regulate timekeep- for ever higher escapement The engineering is ing and the other to regulate the frequencies to achieve ever radically innovative, chronograph function, negating more precise timekeeping. the normally detrimental The engineering is radically the numbers are impact of one upon the other. innovative, the numbers are mind-scrambling and The chronograph tourbillon, mind-scrambling – chrono- which makes a full rotation graphs, for instance, that can prices astronomical every five seconds when acti- measure time to a precision of vated and runs at 50 hertz (or 1/1,000th of a second – and the 360,000 beats an hour) is thrill- prices astronomical. Chronométrie 7727 manages 10 ing to observe in action. At the same time the facts hertz. Both use silicon technol- “Our mission is to come up appear to defy logic. Whatever ogy to help speed their oscilla- with the best possible chrono- extreme frequencies houses tions. Mr Scheufele admits that, graph – that’s what our DNA is such as Breguet, TAG Heuer while his workshops have exper- all about,” says Jean-Christophe and Montblanc may reach, noth- imented with 10 hertz escape- Babin, TAG’s CEO. “We’ve cre- Good vibrations: Chopard’s capabilities as it aims to free mental pieces that seek to give says Robert Wilson, the com- ing they produce will match the ments, no particular benefit was ated the best chronograph ever LUC 8HF watch movement itself from reliance on supplied value to its ambitions as a seri- pany’s international marketing accuracy of a cheap electronic seen for an extra 14,400 beats invented, because it combines oscillates at 57,600 beats per movements, and new lines of ous watchmaker. manager. “But it gives people a watch. The steam engine will per hour, so the figure 8 – with the highest precision with the hour, twice the normal pricier watches in the £10,000 to While all these watches are warm feeling when they’re never catch the bullet train. So all its beneficial philosophical attributes of a tourbillon in escapement speed £15,000 range in the offing, its produced in limited numbers, wearing something of great pre- what is the point? associations in Asian markets – negating the impact of gravity experiments in frontline haute Grand Seiko’s high frequency cision. The core idea is to take “What do you need a supercar was settled on. on chronometry.” horlogerie must raise its profile piece introduced two years ago, the pure essentials of watch- for?” asks Karl-Friedrich While the superior daily accu- Considering TAG’s bread and as a serious technical innovator. the Hi-Beat 36,000 is a volume making and do them as well as Scheufele, CEO of Chopard, racy of these pieces will hardly butter is at the entry-level end Similarly, Montblanc’s product that has quickly they can be done, and that does whose LUC 8HF watch, be noticed by the wearer, of the market it is worth placing TimeWriter II Chronographe become its flagship watch. mean precision.” launched at Basel this year, con- amounting to a very few sec- this in the context of the com- Bi-Frequence 1,000, with a “It isn’t a consumer driven It seems the steam locomotive tains the first high-frequency onds a day, there are other ways pany’s wider strategy. With 50 hertz movement and 1/1000th thing – it’s certainly not because still has some room for accelera- calibre to be certified by COSC, to express their cutting edge massive investment going into of a second chronograph preci- reams of market research says tion left, even in the era of the the industry custodian of chron- nature: on Breguet’s watch, a its in-house manufacturing sion, follows previous experi- people want more accuracy,” bullet train. Developments that embrace geometry and aerodynamics

case containing a lubrica- Advances tion-free movement designed to eliminate the Simon de Burton need for the time consum- gets to grips with ing post-assembly adjust- ment that all conventional Cartier’s ID Two mechanical watches must concept watch undergo before leaving the factory. Bernard Fornas, Cartier’s chief executive, The quest for optimum effi- likened the advance to the ciency is at the top of every car world’s switch from car- designer’s brief these days, burettors to fuel injection. but it is usually associated The ID Two incorporates Exposé: Cartier’s ID Two features a transparent case with reducing the green- some of the developments house gases and energy seen in its predecessor, but ticles means the ID Two its technologies to be put to consumption of objects Cartier’s designers and case should take up to a use in commercial pieces. such as cars and domestic engineers – led by Carole decade to return to stand- He says: “The technologi- appliances. Forestier, head of “move- ard atmospheric pressure. cal solutions and creative Few people would imag- ment creation” – have intro- The movement itself, gambles of Cartier ID Two ine, however, that the tradi- duced numerous other, meanwhile, features two will find their way into tional clockwork mecha- groundbreaking features winding barrels, each of Cartier’s watches for 2020 nism could be made much which serve to demonstrate which is equipped with a and 2030.” more efficient. It could be the brand’s prowess as an pair of springs made from “This is not just a mar- described as the nearest important innovator in the glass microfibres rather keting gimmick – the posi- mankind has come to business, despite it being than conventional steel, tion I have adopted is that achieving perpetual motion, only five years since Cartier which allegedly produce these technological ad- with its internal, spring- began to conceive and make greater power and deliver it vances should be used in driven power supply which its own movements. in a more linear fashion. the watches we sell. We in the case of self-winding “ID” stands for innova- The components of the want to preserve tradition, watches is constantly tion and development, and movement, including the but that does not mean we topped up by the movement this second project bristles escapement, are made from should be afraid to take of the wearer. with the results of both. For materials such as titanium things a step further. Con- But brands such as a start, the entire case of and carbon crystal, many of cept watches such as this Breguet, Patek Philippe, the watch is transparent, which are covered in stimulate creativity and Jaeger-LeCoultre and having been made from a make the future real.” Ulysse Nardin, to name but material called Ceramyst, a Indeed, the first commer- a few, have been working polycrystalline ceramic The result is a cial piece to benefit from hard to incorporate new, developed for the defence movement that the advances made through lightweight, low resistance industry, and used, among ID One will go on sale materials into their mecha- other things, to make wind- uses half the about the time of the Salon nisms to reduce friction, shields for tanks as well as energy of a regular International de la Haute drag and energy consump- the bomb-resistant windows Horlogerie in January. tion with the aim of of the White House. mechanism The Cartier Astrotourbil- enhancing accuracy and More remarkably, how- lon Carbon Crystal will be combating wear. ever, the inside of the 42mm produced in an edition of 50 Earlier this year, the tech- case is devoid of air. On “amorphous diamond-like and feature a case made nicians at Cartier’s haute final assembly, the air is carbon” (ADLC) which does from niobium-titanium, horlogerie laboratory in La sucked out of the watch not wear, is highly shock- with tourbillon bridges and Chaux de Fonds, Switzer- through a hole which is resistant and requires no pallet and escapement land, took things a big step then sealed with the wind- lubrication. wheels in carbon crystal – further with the unveiling ing stem. The result is a movement negating the need for the of a concept watch The result of creating the that uses half the energy of two latter to be lubricated. crammed with high-tech vacuum is that the typical a conventional mechanism The watch also features developments that address energy losses caused by air while boasting a power an unusual interpretation everything from the basic friction within a normal reserve of 32 days – making of the tourbillon concept, in geometry of a mechanical case are reduced by 60 per it comparable to the auto- which the carriage is incor- movement to its “aero- cent. The treatment also motive world’s quest for porated into an off-centre, dynamic efficiency”. means the back of the combining greater fuel arrow-shaped balance wheel The ID Two is (unsurpris- watch does not need screws mileage with better per- bridge that makes one ingly) the sequel to the ID or a thread to attach it – it formance through the revolution of the dial a One concept piece shown at is simply sucked into place, development of more effi- minute while simultane- Geneva’s Salon Interna- requiring the application of cient engines. ously serving as a seconds tional de la Haute Horlo- an 80kg force to remove it. At this stage, the ID Two indicator. gerie in 2009, which fea- Further sealing by gaskets is very much a concept The price of the watch tured a niobium titanium “doped” with clay nanopar- watch, but Mr Fornas wants has yet to be announced. 8 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery Objets that ref lect the traditions of horlorgerie

imaginatively designed watches and Beyond the wrist jewellery emerging from international fashion brands at every market level, Avril Groom explains why from Chanel, Dior and Louis Vuitton jewellery is increasingly to Calvin Klein. One aspect they all agree on, however, is that to have seen on sale with watches credibility in an increasingly crowded market, the jewellery must reflect the quality and themes of the brand’s or a monobrand with a big watches. Complementary pieces: (clockwise from top left) store such as Omega’s 750- Susie Otero, international jewellery WJC’s sapphire and diamond necklace; square-foot Westfield Strat- managing director for Montblanc, Cartier’s Biennale white gold, onyx and ford boutique in east London, says: “It’s difficult for a watch com- brilliants bracelet; Piaget’s collier broderie; Fits largest in Europe, even the most pany new to jewellery to find a Dear Dior’s Dentelle Opale d’Orient bracelet comprehensive watch range shown in unique style, particularly if it is better a minimalist, modern manner is liable known for masculine designs.” Mont- to leave acres of space. blanc has just launched its Princesse At Omega, whose president have credibility. “It is sold pri- Equally grand is Breguet which This sets retailers thinking about Grace de Monaco range of diamond Stephen Urquhart links the marily in our boutiques so cus- cites a tradition of individually what else they could sell. As a com- and gold jewellery. reintroduction of jewellery in 2002 tomers often know the brand, crafted jewellery watches going back plementary product, jewellery is obvi- “We started, of course, with pens, to the expansion of larger stores but others come to it through the 200 years as justification for high jew- ous – and may well attract non-watch and diversified into watches 17 years with added lifestyle products, watch jewellery,” says Mr Urquhart. “Our ellery equivalents. buyers shopping with their partners. ago, along with small leather items. symbols segue literally and figura- watches are designed as accessories “Breguet is firstly a watchmaker, so This is one of a number of reasons Very feminine pen styles are like jew- tively into jewels. and a form of jewellery, so it’s not it never does jewellery that is nothing that watch brands are adding pure els that write, and the jewellery, along “We won jewellery awards in the such a leap to fine jewellery”. to do with the manufacture,” the com- jewellery to their ranges, some of it at with watches from the same collec- 1960s, so we have the heritage, and That intimate link is reiterated at pany says. Most pieces reflect the a very highly-crafted level. Piaget, for tion, reference that rather than the with our increasing appeal to women the top end by Nicolas Mohs, Piaget’s painstaking work that imbues both instance, shows its jewellery at the technicality of our men’s watches. and a growing market for branded UK managing director. “The trend to disciplines and references historic highly prestigious Biennale des Anti- Princess Grace was a customer and a jewellery, this is a good opportunity,” diversify is more common the other female clients, so shell cameo roses on quaires in Paris alongside the best familiar figure of timeless elegance,” he says. way round,” he says. “But, in the watches and jewellery reflect both an pieces from the likes of Cartier and she says. The Aqua range reflects both the 1960s, our iconic, semi-precious- ancient craft and a painting of Marie- Van Cleef & Arpels. Montblanc has used its own dia- organic wave patterns of the popular dialled, gold bracelet watches were Antoinette. There are several drivers of this mond cut, shaped as its trademark ‘It’s difficult for a watch Ladymatic model’s case and the house jewellery and we have always had the The latest Petite Fleur collection trend and some common thinking. Big six-point star, but its latest range is tradition of water-resistant models. In craftsmen, so high jewellery was a has layers of baguette diamonds, each commercial brands have the impetus more subtle and modern, based on a company new to jewellery different golds, with or without dia- natural avenue to explore. with independent movements, that to fill larger selling spaces while lux- rose-petal motif that Ms Otero hopes to find a unique style, monds, or ceramic, its free-form He adds: “It’s not about volume but look modern, yet represent a tech- ury watch groups are under pressure will also become a symbol. shapes and stackability make it indi- about the unique, which is what our nique long used on watch cases. The from the growing quality of time- “People like icons, but brands need particularly if it is vidual and suitably modern for a tech- customer demands and our challenge companion Crazy Flower watch costs pieces produced by top-end jewellery new ones that eventually become part nical house. is to deliver at that level, which takes about £500,000. From unique pieces to houses and feel the need to respond of their patrimony,” she says, declar- better known for The Omegamania range, based on considerable investment.” The latest accessible Aqua ceramic rings, such with jewellery of equal quality. ing herself very happy with the sales masculine designs’ the house logo, is more classic, but range, based on lace, is reflected in items may soon be as usual as a fine Everybody is being squeezed by response so far. subtle and high-quality enough to unique jewellery watches. watch from a top jewellery house. Look developed for high f liers still appeals

The news that Tom Cruise among professionals and with Mr Kelly on a special Pilot watches will reprise his role as Mav- mainstream watch lovers project. erick and return to the alike. “Zenith! Isn’t that a name A way to satisfy navy fighter jet cockpit in Watchmakers have just destined for aviators?” cravings for both the long-awaited sequel to responded accordingly – be says Jean-Frédéric Dufour, the 1986 hit movie Top Gun it with authentic pilot’s Zenith chief executive. “In nostalgia and confirms the notion that watches or those influenced today’s economic climate, gizmos at the same pilot watches are once by the “look”. the pilot universe speaks to again in vogue from New Omega’s new Spacemas- those enamoured with wide- time, says Jim Shi York to New Delhi. ter Z-33 digital pilot watch open spaces, symbolises dis- Movie heroes aside, avia- is based on its Flightmaster covery and exploration and tor watches and timepieces from the 1970s, while Ham- is a great escape that gives with aeronautical stylings ilton bills its new Khaki X- us wings.” have represented the Patrol – created in partner- Tony Chambers, the edi- romance of flight since the Wearers generally ship with Air Zermatt, the tor of Wallpaper, cites 1930s. buy them for their prestigious Swiss helicopter Zenith’s limited-edition However, there are also rescue and transport serv- retro-style Pilot Montre utilitarian reasons why rugged looks; the ice – as a “portable cockpit d’Aéronef Type 20 – a they are enjoying such a functions are rarely, for navigating lifestyles”. bumper-sized wristpiece revival. Pilots’ need of relia- Even Louis Vuitton has that lifts its graphic styling ble, easy-to-read watches if ever, used its Tambour Volez “Fly directly from the dash- has found a resonance Back” watch, whose boards of old French air- functions allow the wearer craft – as a prime example to reset the timing under of “an obvious lean-back by way and restart another brands to vintage styling immediately without need- with simple, clean dials and ing to activate the “stop” worn-looking metals”. push button. Nick and Giles English, Carlos Rosillo, Bell & co-founders of the decade- Ross chief, whose com- old Bremont watch brand, pany’s BR01 Turn Coordina- which has just debuted its tor bears the tagline “From World Timer ALTI-WT the cockpit to the wrist”, chronometer, still run their says the market appreciates father’s second world war that pilot watches are not aircraft restoration busi- merely accessories. ness. “Even as people want to As pilots, the brothers move forward and be ahead coupled their field knowl- in technology, they also like edge to produce watches to keep a foot in tradition,” that are now delivered to he says. “A pilot watch more than 60 military avia- offers just that.” tion squadrons and also Michael Williams, the pro- spent three years develop- prietor behind the style ing a watch with Martin blog “A Continuous Lean”, Baker (MB1/MB2) that is agrees. “A 48mm IWC Top shoes and zany tweeds all 18-carat red gold, IWC is Purpose built: the only one of its kind to Gun Big Pilot is certainly thrown together with that able to create legitimacy Bell & Ross’s BR01 have been put through a not undersized,” he con- kind of sprezzatura vibe. while enriching its brand. chronograph (above) full ejection seat testing cedes, “but pilot watches “A much cleaner aes- Today’s vanguard is the and the Omega programme. are one of the few styles thetic has returned and a new Miramar line: a tribute Spacemaster Z-33 Hamilton is official time- that can get away with this, timeless pilot’s watch fits in to the home of the Top Gun (below) keeper of the EAA AirVen- because even the vintage well with this new ‘less is fighter school in California. ture Oshkosh, in Oshkosh, watches of this type were more’ moment.” Breitling, whose Chrono- Wisconsin, billed as “The big in diameter.” Ted Stafford, fashion mat 44 bears the official World’s Greatest Aviation At last month’s Pebble market director at Ameri- seal of the US. Navy Fighter Celebration” and is partner Beach Concours d’Elegance can GQ, cites the influx of Weapons School, is another of the Free Flight World auto show, Rolls-Royce military styles from Dior brand with deep roots in Master in France. debuted a limited edition Homme to Balmain to aviation. Sylvain Dolla, Hamilton’s “Aviator” Drophead Coupé Ralph Lauren (and the asso- It installed control chief executive, says the equipped with an aviation ciated bomber jackets and systems in the RAF’s sec- public’s interest in aviation clock by Revue Thommen, epaulettes) as complement- ond world war propeller has risen in recent years, which manufactured air- ing this watch style. fighter aircraft, while its citing his brand’s craft chronographs for the “They have range – from chronographs to equip strong, double-digit Swiss Air Force. IWC to Timex – and guys fighter aircraft had the growth over the Giles Taylor, Rolls-Royce like them because they’re company dubbed the “offi- past seven years. director of design, says the durable and not super- cial supplier to world avia- Truth be told, vehicle, is a homage to the precious,” he says. tion”. wearers of pilot pioneering spirit of brand Being linked to such an Mark Kelly, the retired watches, much like co-founder Charles Rolls emotional profession serves American astronaut, US diving watches, and his mechanical innova- as a strong source of inspi- Navy captain and naval generally buy tion, not to mention the ration for both pilot watch aviator who flew combat them for their rug- Supermarine S6B using a wearers and manufacturers. missions during the Gulf ged looks; the Rolls-Royce engine that At IWC, Gianfranco war, and husband of Gabby functions that won the Schneider Trophy D’Attis, North American Giffords, former Democra- define them are air race held near South- brand president, points to tive member of the US rarely, if ever, used. ampton in 1929 and 1931. the company’s ability to house of representatives, Esquire’s Mr Sulli- There is also the notion allow the consumer to emu- owns four Breitling time- van comments: “These that watch design follows late the lifestyle of an pieces, including the Emer- types of watches all have the same trajectory as actual pilot. By associating gency watch that, with its positive associations for men’s styles. Nick Sullivan, itself not only with Top microtransmitter, is men, that kind of James fashion director of US Gun but also with Antoine designed as a radio beacon Bond thing. Esquire, says: “We seem to de St Exupéry, whose mem- for rescuers to home into. “It’s like your watch hints be exiting a period in which ory the company is cele- According to Thierry Pris- quietly that when you’re men’s fashion was all about brating this year with a lim- sert, Breitling’s US presi- not in your day job you are jazzy accessories, funky ited edition chronograph in dent, the brand is in talks a man of action.” FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 9 10 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery The big names ‘will always have Paris’

visit. We will return next The biennale time but now we are anchoring our position on Avril Groom on a the Place Vendôme.” long-running luxury Visitors are in for a trip to a sensory wonderland, event that has kept including the imaginative its mystique Van Cleef & Arpels’ Palais de la Chance collection, based on lucky symbols, f you question how and extraordinary individ- important the Paris ual pieces by Claire Choisne Biennale Antiquaires – at Boucheron, which primarily an antiques combine rough stones with Iand fine art fair that runs brilliants and wearable from September 14 to 23 – is objets with jewellery. to the high jewellery Dior, meanwhile, offers market, then Frédéric de wild colour mixes and Bul- Narp, chief executive of gari has matched sapphire Harry Winston, will provide and emerald cabochons. you with the answer. Chanel presents technical “It is the most important experiments with diamond- fine jewellery exhibition in scattered titanium and 3D the world, with the best of faceted sapphires. and the best in craftsmanship Chaumet has modern tiaras and design,” he says. “As and hair decorations. the only American brand Piaget has diamond and invited, it is an honour, and rubellite lace and frogging. a testament to our craft and Cartier and Harry Winston artistry.” have water and ice-inspired Benjamin Comar, gems. Chanel’s international Majestic: the glass-roofed Grand Palais, (centre) opened in 1900. It is president, says: “Its rigor- share Bulgari’s creative Place Vendôme flagship and Anyone who cannot get jewellery director, agrees. home to the Paris Biennale Antiquaires, but is an increasingly important ous selection of works and expertise.” However, it workshop where, says to Paris will find a selection “The biennale is a key exhi- event for the exhibition of fine jewellery, such as Boucheron’s Nature de its high-profile attendance seems not all are convinced. Hamdi Chatti, the com- from the biennale at bition,” he says. “This is Cristal bracelet (below) and Chaumet’s collier (bottom), designed especially of art experts, connoisseurs Louis Vuitton exhibited last pany’s watch and jewellery Harrods fine jewellery our fourth; we joined after for the occasion Dreamstime and collectors, make it a time but has recently MD: “We know clients in room, a first for the store, it returned to the majestic prestigious framework to opened its Marino-designed town for the biennale will from October 1 to 14. Grand Palais. We started with a 28-square metre booth but now we have one this can only be imagined of 155 sq m.” but restoration of the Grand The biennale is hot partly Palais, including opening because the time interval the Cour d’Honneur gallery, allows jewellers to prepare has allowed a rethink and large, sumptuous collec- an expanded new layout. tions involving unique “Last time there were stones that have been seven jewellers and the tracked down over years. crowds made it difficult to Cartier will unveil 150 see the pieces,” says Chris- pieces, none seen or sold tian Deydier, chairman of beforehand, on its vast the Syndicat National des 250-sq m booth. Van Cleef & Antiquaires. “With the new Arpels has 70. Chaumet, gallery, we have 1,200 sq m rejoining after many years, extra that has allowed us to has beuatiful pieces like the invite 30 more exhibitors, Biennale necklace pictured including three jewellers – below and is already work- Chaumet, Bulgari and Wal- ing on its collection for lace Chan from Hong Kong. 2014. Boucheron, “We have shared them in there for three areas which, with the first 100,000 visitors expected, time in means more footfall every- decades, where.” has 125 new This makes sense, he pieces, includ- ing the Nature de Cristal bracelet seen here. Nowhere else is the very best work of top houses, many from the jewel- lery hub of the Place Vendôme, brought together so openly for the paying public and invited collector. This is a strength, says Pierre Rainero, creative says. “The same customer director of Cartier. “Many who buys jewellery goes to exhibitions are invitation Art Basel or Miami or the only, and the biennale big fairs in Asia, and the attracts regular clients from biennale is on their calen- across the world, who will dar.” buy,” he says, “But it is The fair has been also a publicity tool to show designed by Karl Lagerfeld the public our expertise and who disliked the mise en illustrate the evolution of scène last time and said Cartier style.” that, should Mr Deydier be Victoire de Castellane, elected as chairman, he Dior’s designer, agrees it is would design the set, based “great for brand awareness, on Paris’s 19th century and for selling our unique arcades, for free. Individual pieces to people who appre- stands are equally plush ciate design in jewellery as with big names such as they do in antiques”. Peter Marino (at Cartier) on Like several other houses, board, all aimed at creating, Cartier will also show vin- as Mr de Narp says of their tage pieces – jewellery has design by William Sofield, been part of the biennale’s “a compelling shopping remit since 1964. But inter- experience while offering est in new jewellery, includ- clients the intimate envi- ing that from couture ronment they expect from houses such as Chanel and us”. Dior, has mushroomed. In other words, private Last time the cramped booths away from public jewellery area was perpetu- eyes, which is one reason ally crowded, while some of the biennale is a sales suc- the antiques areas were cess. Newcomers are con- almost painfully empty. vinced of its showcase What the long-established importance. Francesco Tra- antiques dealers made of pani, LVMH’s jewellery FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 11 Watches & Jewellery The return of bigger, bolder gemstones

nlike the seasonal Las Vegas Fairs trends in the clothing industry, Anthony DeMarco fashion cycles are Umuch slower when it comes on the continuing to jewellery. fascination The cost of materials, the with colour fragmented distribution sys- tem of moving raw materi- als and finished products, the time it takes to create products and the traditional view that jewellery should have a timeless quality, all contribute to this. For example, the increased use of colour in jewellery has been preva- On show in Las Vegas: less expensive coloured dia- ers have become more inno- tinue to enter the market qualifies as a trend when Ms Courtney provided a lent, particularly in the US jewellery consumers in the monds and gemstones in vative at creating quality with no end in sight. discussing jewellery. fine example of this trend market, since at least 2010, US may be buying fewer but response to the recession. fine jewellery at broader So, even though the wide- What has changed is the with large finely faceted as designers and manufac- bigger pieces Anthony DeMarco The result has been price points. New designs spread move to colour is at return of using large, state- African Green Tourmaline turers turned to smaller, largely positive, as design- based on this approach con- least two years old, it still ment gems. Orange and red earrings shaped like a cross gemstones were particu- between a diamond and a larly prevalent during the tear drop. Small round dia- annual jewellery fairs in monds border the gem and Las Vegas in June. 18 carat gold finishes the One reason why fiery col- piece. ours were popular this year An exceptional example was the result of “Tange- of innovation in Las Vegas rine Tango” being named was presented by Miiori, Pantone Colour of the Year. which has developed a proc- Erica Courtney and Yael ess of creating fine jewel- Designs, both of California, lery pieces that change in chose Fire Opal to express design as the piece moves. this colour. It is comparable to how In Ms Courtney’s case, the image changes on a the opal centre stone is sur- holographic card. It might rounded by white diamonds seem gimmicky, but it is and set on 18 carat yellow serious jewellery that can gold. be customised to create any Yael uses three delicate image desired by the user. threads of diamond pavé to A piece can run from cradle a 6.06-carat fire opal $5,000 to $100,000, says on to an 18 carat yellow Ohanes Agopyan, owner gold setting, seen below to and designer of the New the right. The use of dia- York-based company, which mond pavé threads was has a gem factory in Thai- prevalent this year as a cre- land and a design facility in ative way to provide a deli- Armenia. cate looking accent to large The technique of creating colourful stones. these dual images requires Meanwhile, Goshwara, a each setting to be New York-based com- pany that specialises in coloured gem- stone jewellery, chose 110 carat mandarin garnet c a b o c h o n mounted on yel- low gold to express the more subtle aspects of the fiery gem. Yellow gold is of course the stand- ard for fine jewel- lery, but as the cost of gold has exploded over the past few years, white metals such as platinum and the angled dif- far less expensive sil- ferently, Mr. ver, have made big Agopyan says. inroads. The process has received The designs at this year’s patents throughout the shows reveal that yellow world. gold still holds a strong “Each and every stone is place for designers when set at a different angle to pairing it with large col- get the maximum colour oured gemstones. exposure and the maximum Other popular colours colour change,” Mr Ago- were light blue and green pyan says. gems (particularly emer- For example, a bracelet alds) and bright yellows – made of a carpet of dia- especially large, traditional monds and pink sapphires yellow diamonds. first appears white, but New York-based, Cora gradually bleeds pink as the International, which spe- hand moves. Just about any cialises in fancy coloured image can be created using diamonds, presented a 16.19- this process. Examples that carat radiant cut fancy were presented in Las intense yellow diamond, Vegas included astrological accented with 0.87 carats of signs and an American flag round yellow diamonds set that changed into an Ameri- on 18 carat yellow gold. can Bald Eagle. Norman Silverman, a Los With the return to bigger Angeles-based diamond and bolder gems, jewellery jewellery manufacturer, brands may be hoping that unveiled earrings made of serious jewellery consumers large, yellow, pear-shaped in the US are leaning diamonds, topped with toward buying fewer pieces smaller white pear-shaped of jewellery but making diamonds and surrounded sure each piece they pur- by white diamond pavé set chase is substantial. on white gold. The total dia- On the other hand, mond weight is 23 carats. designers may have decided An example of the soft to create jewellery that fits blue colours that were pop- their brand identity and ular is the aquamarine their creative strengths. Wild-Orchid ring from Aru- nashi in which a 42.8-carat Colour magic: Aquamarine was cut in the Erica Courtney and Yael’s shape of a flower with each Fire Opal (above) and petal draped in diamonds. Arunashi’s Aquamarine The centre of the flower Wild Orchid ring (below) contains 31 sapphires (19.32 carat total weight) and more dia- monds. A total of 221 diamonds (4.860 ctw) were used. 12 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery European designers connect with Arab world

East for producers and buyers of gold Middle East links and jewellery. Fiera di Vicenza will act as the exclusive representative for Claire Adler reports on a all European jewellery, gold, watch- tie-up between Fiera di making and related technology com- panies at the exhibition. Vicenza and the Dubai According to figures from the Dubai World Trade Centre World Trade Centre, Dubai imports 360 tonnes of gold a year, valued at $3.3bn. n a sign of the increasing part- Dubai is also expected to acquire a nerships between Europe and the significant proportion of the 6 per Middle East, Fiera di Vicenza, cent annual rise increase in the dia- the company that organises mond supply predicted up to 2020. The Isome of the world’s most important United Arab Emirates imports €670m jewellery exhibitions, inked an agree- of Italian jewellery a year, 13 per cent ment this year with the Dubai World of Italy’s gold and jewellery exports. Trade Centre, organiser of Dubai “The Arab world loves gold and pre- International Jewellery Week. cious stones. It appreciates Italian Through its annual calendar of jewellery, Italian products and Euro- events spanning Italy, the US and pean luxury style,” says Roberto Ditri, India, Fiera di Vicenza unites more Fiera di Vicenza chairman. than 4,500 exhibitors from 35 coun- “Our role as exhibition organisers tries with 43,000 buyers from 124 extends to offering our Italian exhibi- countries. tors, who often include small ateliers On show: Fiera di Vicenza organises some of the world’s most important jewellery exhibitions. Seen here, rings at a Vicenza Oro event in Italy in January La Presse Its exhibition roster takes in Italian of highly skilled craftspeople, the sup- VicenzaOro events in January, May port they need to respond to the needs Forecasting, run by Paola de Luca. At tion has formed with offices in Lon- Jewellery and watch brands with a and September, VicenzaOro About J – of the market. For example, Italians VicenzaOro later this month, a semi- don and Jeddah. The aim of the Anglo growing Middle Eastern presence a travelling invitation-only show can’t compete with the Arab jewellers nar given by Ms de Luca will present Arab Association is to offer British include Montblanc, which has had focusing on high-end jewellery, and on weighty gold pieces. We suggest predicted jewellery trends between luxury brands easy access to retail boutiques in Arab countries for 15 T-Gold, held in January alongside our Italian manufacturers show light now and 2014. their wares in the Middle East. years. VicenzaOro and specialising in manu- and very elegant pieces.” The event will also give a nod to After the organisation’s July launch But in the past two years, facturing equipment for the industry. When Fiera di Vicenza hosted an Italy’s illustrious jewellery heritage at the Mayfair Hotel in London, 21 the company has brought its full In November, Dubai International Italian pavilion at JCK Las Vegas last with a display of historical pieces by brands, including nine royal warrant collections of watches, jewellery, Jewellery Week, an important show- year as part of its expansion to new Italian jewellers Buccellati, a com- holders, expressed an interest in giv- pens and leather goods to sumptuous case for the Middle East’s increasingly markets, Mr Ditri remembers seeing a pany with roots in 18th century Milan ing the company the green light to new flagship boutiques in Kuwait, upmarket jewellery trade, will play queue forming outside the booth of a whose clients have included two identify Middle Eastern partners Abu Dhabi, Dubai, Riyadh and host to 300 exhibitors from 20 coun- small Italian company from Torre del popes and composers Verdi and Puc- within 24 months. Jewellers who Beirut. tries. Greco specialising in cameos. cini. attended included Theo Fennell, Today, the luxury group’s retail net- Under what is likely to be a lucra- “I was thrilled when I realised a “We have been very busy organis- David Marshall, Dinny Hall and work includes 17 boutiques in the tive agreement, Fiera di Vicenza and vice-president of the purchasing ing the police and our security teams Auric. United Arab Emirates and 13 in the the Dubai World Trade Centre will department of Tiffany was standing in The exhibition organiser for this exhibit and we’re very excited “There is an insatiable desire for rest of the region. capitalise on their specialist knowl- the queue for this tiny Italian com- will co-ordinate all Italian about it,” says Mr Ditri. “Jean Maria British luxury in the Middle East, par- Meanwhile, following its success at edge, local contacts and event experi- pany, with fewer than 10 employees,” Buccellati inspired generations of jew- ticularly royal warrant holders,” says the Doha Jewellery and Watch exhibi- ence. The exhibition organiser will co- he says. and other European ellers when he said ‘a piece of jewel- Andrew Lloyd, chief executive of the tion this year, Fabergé is preparing ordinate all Italian and other Euro- Fiera di Vicenza offers exhibitors at brands, increasing trade lery is made to express love’.” Anglo Arab Alliance. “A Saudi sheikh for Middle East expansion and expects pean brands at the Dubai event, all its fairs access to industry analysis Elsewhere, as the Middle Eastern recently told me: ‘If it’s good enough to announce details of its develop- increasing trade and retail opportuni- from its in-house research centre, and retail opportunities appetite for high-end luxury items for the Queen, it’s good enough for ments in the region before the end of ties in both Europe and the Middle known as Trend Vision Jewellery and and jewellery soars, a new organisa- anyone’.” the year. Groups receive a buffeting from volatile stock markets

their brand value and Investment higher margins due to pric- ing power. Very high-end Graff’s abandoned diamonds also enjoy a rar- IPO was not the ity value, since supply is limited and demand is only mishap, growing from emerging says Claire Adler markets.” When Pandora, the Dan- ish jeweller famous for its silver jewellery and charm Jewellers have had mixed bracelets, listed on the encounters with the invest- Copenhagen Stock Ex- ment community of late. change in 2010, it hoped to This year, Graff, diamond become one of the most suc- jewellers to the likes of cessful branded groups in Oprah Winfrey, Imelda Mar- jewellery and luxury goods. cos and George Soros, But what started out as planned to launch on the one of Europe’s biggest Hong Kong Stock IPOs proved to be one of the Exchange. worst for initial investors, It hoped to raise $1bn, with the stock falling 70 per with a view to trebling the cent in one day. number of its Asian stores According to Mr McLean, in the next two years and the sharp fall in the share funding a restructuring price came down to the that involved buying a sub- weaknesses in Pandora’s stantial diamond inventory business model. from Laurence Graff, the A company started by a company’s founder and couple at their kitchen chairman. table in 1982, today Pandora But in May plans for what sells its jewellery in more might have been Asia’s big- Flawless: high-end diamonds like this enjoy rarity value than 65 countries on six gest flotation of 2012 fal- continents at 10,000 outlets tered. As Facebook made its issues,” says Mr McLean. in Hong Kong and main- and 750 stores. In 2011, sales disappointing market debut “A small group of custom- land China raised $2bn on were €893m, and in the first and European and US glo- ers accounted for almost the Hong Kong Stock half of this year, Pandora bal equity markets nose- half of revenue and the Exchange late last year. Its opened 94 more of its con- dived amid fears over the large family stake after shares have fallen almost a cept stores. eurozone crisis and China’s issue also worried markets. third since the listing. But last month, the economic slowdown, Graff The proposed use of some of Some analysts questioned group, which employs 3,900 received orders for only half the funds to buy assets why Graff chose to list on people at its manufacturing its $1bn initial public offer- from the family was also a the Hong Kong market. facility in Thailand, ing. concern.” Graff is one of a handful reported losses in every Two days before the deal In each of the past three of luxury goods companies region in which it operates. was due to price Graff years, just 20 jewellery cus- to list outside Europe, It says a campaign to pulled out, announcing it tomers have accounted for choosing Hong Kong redistribute new stock to was postponing the listing more than 40 per cent of retailers exchanging it for and blaming volatile mar- Graff’s revenue. discontinued items is under kets. Against a backdrop of Scilla Huang Sun, Zurich- ‘The proposed use way and is a big explana- investors determined to based portfolio manager of of some of the tion for the company’s dis- shun risk, it was the third the Julius Baer Luxury appointing results. big IPO to be called off in Brands Fund, says: “Reve- funds to buy assets “When it listed in 2010, Asia in the space of a week. nues for Graff are difficult from the family was Pandora had not yet proven Graff says its plans to to predict, given the rarity itself as a luxury brand open more stores will not and size of its diamond also a concern’ with stable or growing mar- be affected and the com- inventory. The jewellery gins,” says Mr McLean. pany will continue to business is cyclical because “The chairman eventually expand. it is built around big ticket because it is such an impor- admitted that Pandora was Analysts at Deutsche purchases and non-essential tant market. Others include not a luxury goods busi- Bank, HSBC and Citigroup, spending.” L’Occitane, Samsonite and ness. Pandora had wanted who were the joint global Still, Graff is not the only Prada, which raised $2.5bn to use the listing to co-ordinators of the IPO, luxury goods company to in June 2011. enhance the brand and declined to comment. have felt the pressure from Ms Huang Sun says: growth, but this is probably But Colin McLean, co- the stock market recently. “IPOs can sometimes be unrealistic. founder of SVM Asset Man- Shares in Tiffany tumbled priced higher in Hong The company’s strategy agement, which was not almost 22 per cent in the Kong. On the plus side for did not include the control involved in the transaction, past year, although luxury jewellers listing on of image and distribution says he was not surprised August’s figures were bet- the stock exchange, needed for a genuine luxury at the outcome. ter than expected. branded jewellers are often brand, making it difficult “We had serious reserva- Chow Tai Fook, the Chi- traded at a premium when for investors to be clear tions about the IPO, partic- nese jewellery company compared with mass mar- what role it would have in ularly on accounting with more than 1,500 stores ket jewellers because of their portfolios.” FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 13 Watches & Jewellery Interpreting aesthetics for a modern age

need things that express Creative directors our spirit, not just beautiful things’. To me, the Nicholas Foulkes Ardentes collection he on the importance designed expressed that per- fectly. The signature is the of personality monogram and, when you look at the Ardentes collec- tion, you see it is the ulti- idney Toledano, mate expression of a mono- chief executive of gram and it is beautiful. To Dior, is in upbeat me this is how you estab- mood. He has had a lish a signature.” Sgood summer and is looking The identifiable signature forward to the first big is the philosopher’s stone of event of the autumn, the jewellery design, something Biennale des Antiquaires, that will do for a brand which takes place in Paris what Elsa Peretti’s cuff did next week. for Tiffany or Cipullo’s Mr Toledano can hardly Love Bangle for Cartier. wait to pull the wraps off a Having established Dior as new set of designs by Vic- a creative force in high jew- toire de Castellane, the cre- ellery, Ms de Castellane ative force behind the look might now be establishing a of the French couture signature collection. It will house’s high jewellery. be interesting to see the He is not alone. There is a “My Dior” pieces among the playful intelligence evident Castellane-designed jewel- in her work, and it was this lery presented at the Bien- quality that appealed to nale. Bernard Arnault, chairman and chief executive of Van Cleef & Arpels pub- LVMH and chairman of directly involved in the cre- approach that is different pany. We are offering prod- are bringing to this busi- Pop artist: to understand what the lished a special edition of Dior, when Dior launched ative process, there was no from the godlike status ucts that you use every day ness is the idea of the pre- Victoire de Castellane, brand stands for and Bals: Legendary Costume its fine jewellery at the end need for a creative director. accorded some creative and we believe that jewel- cious accessory versus com- the creative force behind express that with jewellery. Balls of the Twentieth Cen- of the 1990s. But as these businesses directors. “What is new is lery is part of this. What modity or status jewellery. Dior jewellery “I tell my creative direc- tury, by Nicholas Foulkes, He says Mr Arnault was have passed into the owner- that we are a lifestyle com- luxury and fashion brands “The artistic director has tor, Lorenz Baumer, ‘We in July 2011. charmed by the quirky ship of the big groups, young woman with the aris- someone needs to interpret tocratic background. the creative and aesthetic “She was a young girl, heritage for the modern age she studied fine jewellery, and to ensure that the she played with gems, there house continues to evolve. was a magic. She could Nicolas Bos, creative have done her own work, director at Van Cleef & but she was inspired by the Arpels, believes the percep- personality of Dior.” tion of the creative director Ms de Castellane’s indi- as crucial to a legacy brand vidual stamp is an increas- dates to the time of Tom ingly important and visible Ford’s renewal of Gucci, part of Dior’s activity, an though the cycles of fashion example of how the concept and fine jewellery move at of creative director has different speeds. been imported from the He believes customers fashion world to jewellery. expect slightly different Fame does not seem to things from a jeweller. have turned her head, but “Clients expect to be sur- in the vacuum left after the prised by fashion brands Icarus-like collapse of John with fresh, unusual crea- Galliano’s career at Dior, tions. They expect their jeweller to be surprising, yet predictable. They feel Fashion is defined like they own the jeweller a by obsolescence bit more than in fashion and they hate it when it whereas jewellery is goes in a direction they seen as a lasting don’t understand.” Fashion is defined by its store of value obsolescence whereas, cul- turally, jewellery is seen as a lasting store of value. she seems to be accorded a Mr Bos says his role is sort of rock star status. that of “co-ordinator”, link- “She is a very affectionate ing the spirit of the house, person, she meets a lot of as exemplified by pieces it our big clients. She will be has made in the past, to present at the Biennale and current creativity. she designs big pieces At Richemont stablemate exclusively for clients.” Cartier, Pierre Rainero, who As with a rock star, tour- prefers the title, style direc- ing is an important part of tor, says: “In a jewellery her work. “She was in Bei- house, it is very difficult to jing in May and met lots of say that only one person clients. This is important, has the entire responsibility because it is a kind of for creation.” exclusivity she is offering, Starting with selection of and the relationship with the stones, Mr Rainero these clients is special.” believes every pair of hands This is a couture rather that touches the piece – than a prêt-à-porter designer, maker or stone approach. If the fragrance setter – has creative input. and the bags are at one end “So many people have an of the ubiquity scale, then influence on the final result Ms de Castellane’s oeuvre is that it is very difficult to at the other. It is not a vol- say that there is an artistic ume business. To describe director in the way that the her relationship with Dior term now has an under- as a business model is to standing, a little like people cheapen it. But it has cer- understand dictatorships.” tainly worked for the house, He sees his role as having creating identity, buzz, and “a vision of what the con- revenue. temporary style of Cartier The power of the creative should be and how it builds director is not lost on more on the history.” established businesses. In It is a similar sense of the past, when such compa- coherence that Hamdi nies as Cartier and Van Chatti is seeking in his role Cleef & Arpels were family- as the boss of Louis Vuit- owned, a style and aesthetic ton’s watch and jewellery would emerge. business. Historically, Vuit- After all, if the person ton was neither a fashion whose name was above the house nor a jeweller. This, door was an owner who was he says, calls for an

Vision: Nicolas Bos of Van Cleef & Arpels Reuters 14 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery Even the wealthy buy gems that are not the real thing

the same chemical composi- maintain the HPHT process cent when buying a labora- portable assets such as dia- or not the real thing,” he diamond ring is between Laboratory-made tion as geologically-created for more than six weeks. So, tory-created diamond.” monds. says. £6,000 and £8,000. That’s a diamonds diamonds, are made in one for economic reasons, While Gemesis is not the “From 2009, prices on “There’s no kudos with a lot more than saving 25 per of two ways. stones are usually grown to only company with lab- rough and finished polished man-made thing.” cent! Client-wise, we see Syl Tang considers Either they are produced only 1 to 1.5 carats. made gems, it is the first diamonds have steadily However, Dervla Cogan, everything from Arab prin- through high-pressure high- In the one-carat arena, with significant stock climbed to all-time highs.” co-owner of Brilliant, a five- cesses to bankers at Gold- the debate over temperature situations, a one brand is poised to take consistent in size and qual- While De Beers says that year-old London-based com- man Sachs and Barclays.” whether faux process called HPHT, or advantage. ity – important factors in demand for diamonds has pany with a store off Sloane Indeed technological through chemical vapour Gemesis, a 16-year-old becoming a potential softened in the global mar- Square, disagrees. She has a advances have come so far jewels have the deposition (CVD), by which company, based in Lake- market leader. ket, couples continue to long list of celebrity clients that, in 2008, the US Federal right kind of kudos the stones are grown from a wood Ranch, Florida, has And the market may be seek out affordable engage- to prove it. Trade Commission indi- hydrocarbon gas mixture. launched several thousand ready. ment-sized diamonds. Ms Cogan has experi- cated that language em- According to papers in styles of lab-created dia- Roy Lunt, the owner of enced first hand that an ployed for cultured dia- A diamond may be forever, the magazine, Nature, in monds. Hancocks Fine Jewellers in increasing awareness of monds should use the terms but what if it was formed the 1950s, General Electric They are certified by the ‘You can save Manchester, the city’s long- quality lab-grown real gems “lab-created or lab-grown” just yesterday? Lab-grown created lab-grown International Gemological between 25% and est established jeweller, means wealthy consumers stones, to separate the sorts diamonds, also known as diamonds, ostensibly for Institute, with the majority having been in business will even accept lab-grown of stones that Gemesis cre- cultured diamonds, have commercial use. But in clarity graded VS-quality or 50% when buying since 1860, believes that zirconium oxide, technically ates from the simulated dia- been finding increasing 1970, the company produced better, including the first a lab-created consumers, primarily a diamond simulant. monds that Brilliant grows. acceptance in the high-end the first gem-quality dia- noticeably colourless and women, will never want “In the past, consumers But Brilliant, which has jewellery world. mond crystals. fancy yellow creations. diamond’ artificial gems. could buy cubic zirconia, been approached by depart- Melissa Salas, director of However, the stones were Stephen Lux, chief execu- “We hold lectures on dia- but it didn’t stand the test ment stores including marketing for Buy.com, always yellow to brown in tive of Gemesis, says: “Last monds, Fabergé, crown jew- of time. It would dull or Kate kudos: Kate Middleton Selfridges and Harrods, says the diamonds do well colour as a result of nitro- year, we had a significant In recent years, despite els and, during the discus- cloud over. As technology wears Fabulous Fakes where the head of jewellery with consumers. gen contaminations. Fur- breakthrough in making the recession, fine jewellers sions, we learn that ladies has advanced, we’ve found is a top Brilliant customer, “A key selling point is ther, plate-like inclusions colourless diamonds. have seen the prices of without exception do not a way to grow our stones to ence which is .05 in the may be on to something. that lab-grown diamonds were common. “Also, while the fashion some mined diamonds want a man-made gem,” he replicate natural earth refractive index.” In June, Kate Middleton are ‘conflict- free’. Plus, It has since become possi- world has one view of climb. says. conditions,” she says. Brilliant sells simulated wore faux diamond and they are diamonds, not to ble to grow large diamonds. things, the largest selling Martin Katz, a Beverly “Women would rather “Under heat tests, ours diamonds with a stone pearl drop earrings from be confused with diamond- The De Beers Diamond diamond size is about one- Hills-based jeweller, says: have a small natural dia- have a hardness just under equivalent to grade D or E jewellery designer Belinda like substances.” Research Laboratory has carat, typically for an “By mid-2009, as the mar- mond over a cultured or level 10 where diamonds flawless that it says rival a Hadden’s “Fabulous Fakes”. Lab-created diamonds are grown stones of 25 carats. engagement ring. kets worried how to keep lab-created large gem, are. And it requires a mined diamond. During part of Queen not new. But, to produce a 25 carat “At that size, you can their money safe, they because cultured gives the trained eye under the “Our rings start at £245, Elizabeth’s diamond jubilee The stones, which have diamond, De Beers had to save between 25 and 50 per quickly went back into impression it’s inexpensive microscope to see the differ- while a regular one- carat celebration, no less. Diamonds may take over from precious metals

gold? One director of a promi- Investment nent independent financial adviser has expressed concern Lucie Greene reports over being able accurately to on proposals for apply fixed values to diamonds in index form, as with gold. exchange traded funds “Diamonds are different. Each is unique, and has different facets. They should almost be As currencies fluctuate and the appraised as works of art. It’s global economic crisis rumbles not like gold, where there’s the on, wealthy investors have weight, and that’s it,” he says. increasingly focused on com- “There’s such a variety of fac- modities for protecting their tors with stones. Gold is gold is assets. gold. Diamonds are higher risk Until recently – in precious because the pricing is opaque.” metals terms – this centred on There is no doubt that gold and silver, but a new wealthy investors are becoming clutch of proposed diamond more open-minded about the hedge funds is aiming to over- commodities they invest in. take precious metals as the new Anxiety about international cur- hot investment. rencies has seen interest in col- In the US, where there is only lectables and luxury goods retail trading of diamonds, grow. IndexIQ, a New York company, According to research this is supporting the first diamond- year by Barclays Wealth, the backed exchange-traded fund. world’s millionaires are devot- The proposal is being reviewed ing an average of 9.6 per cent of by the Securities and Exchange their fortunes to non-financial Commission. Harry Winston, assets such as collectables. the largest publicly traded dia- Rare sports cars and art mond company, is also collabo- works are achieving record rating with a Swiss asset man- sales figures. Art too, has ager on a $250m fund to buy become a big focus. This year, a diamonds wholesale to store in version of Edvard Munch’s a vault, using money from painting The Scream sold for a hedge fund investments. record $120m at auction in 12 Peter Laib, chairman of Dia- minutes. “People are seeking to mond Asset Advisors, the Swiss diversify their portfolios,” says group collaborating with the the adviser. company, says: “After the sub- High-profile estate jewellery Rio Tinto is holding its annual tender in the Orangery at Kensington Palace, London, which will include 56 pink diamonds and an exhibition of spectacular gems prime disaster and with eco- nomic uncertainty, investors are Peter Laib at looking for low-volatility invest- Diamond Asset ments. Diamonds are less vola- Advisors says tile, as they’re resistant to spec- fund could offer ulation by the financial commu- annual returns Focus is on royal connections nity, so there are no derivatives of as much as or tradeable products and no 12 per cent short selling is possible.” He says the fund could offer pieces are also in high demand. annual returns of as much as 12 In December 2011, Elizabeth per cent. Taylor’s jewellery collection at Kensington Palace auction “Diamonds have shown con- broke all records, achieving sistent growth over the years, $157m. polished diamond prices have “Diamond prices were up ered in the late 1970s, in rugged invited guests, to be held in the There is no sign of another Chinese buyers as an invest- grown 100 per cent since 2004, before these hedge funds. People Argyle pink diamonds terrain 3,000 kilometres from Orangery at Kensington Palace. mine in the world that consist- ment, it is first and foremost an and this only looks set to con- want concrete investments that Perth, and came on stream in The 2012 tender comprises 56 ently produces rare pinks in the object of great beauty. tinue.” are also portable,” says Rahul Vivienne Becker 1984. exceptional pink diamonds, same way as Argyle, and the Josephine Johnson, manager Diamond prices are certainly Kadakia, head of fine jewellery considers the rarity The mine yielded diamonds of including two “hero” named near-exhaustion of the mine can of Argyle Pink Diamonds, part on a trajectory. Prices of ½ at Christie’s auction house. “In an extraordinary purplish pink pinks, the Argyle Siren and the only strengthen demand and of Rio Tinto, says: “Many hard- carat diamonds have risen by 49 1996, Christie’s sold $273m value of dwindling never seen before, in a palette Argyle Satine, and two red prices. nosed investors are surprised by per cent since 2001. One-carat worth of jewels globally. In 2011, reserves of gems ranging from delicate cherry stones, as well as a separate Even now, pinks represent the emotional connection they diamonds have risen by 88.9 per that reached $605m. In the first blossom to bubblegum, from offering of 19 blue diamonds, less than 0.01 per cent of the makes with these remarkable cent in the same period. Mean- half of this year we’ve sold champagne to cognac, veering collected over the past two mine’s production, and pink dia- gems, once they see them up while, three-carat diamonds $305m.” arity is one of the most into the occasional blue, and the years, including the heart- monds comprise just 0.03 per close and fully appreciate their have gone up a staggering 238 Will diamond commodity trad- powerful factors in the rarest of the rare, the red dia- shaped 0.33 carat Argyle Allure, cent of global diamond produc- complex depth of colour and per cent over the same time- ing have an impact on fine jew- gemstone market. It mond. and the violet Argyle Heloise. tion. their ancient mystique.” frame. ellery retail trends? has always played its The new Argyle diamonds These loose stones will be The Argyle mine has been the Pressure on supply is one fac- “It will mean that buyers are Rpart, of course, dictating the bal- captured the 1980s mood of glitz shown alongside an exhibition, largest single source of the Vivienne Becker will be a guest tor driving prices, says Mr Laib. more interested in large flawless ance of supply and demand, and and glam, spearheading the col- called Out of the Vault, of spec- world’s supply of pink dia- speaker at the Argyle Diamond “Supply constraints are a big stones. They will also only want therefore price, but in the case oured diamond craze, leading to tacular jewels from around the monds, creating a desire and a Event and Out of the Vault Exhi- factor, with few or no mines the best and the majority of the of Argyle pink diamonds, rarity today’s near-obsessive quest for world, set with Argyle dia- market that is separate from bition on October 9. expected to emerge in the next value to come from the stone,” takes on a new dimension. this ultimate natural rarity. monds, made by international that for white diamonds, less 10 years and existing mines past says Mr Laib. “If you have an The Argyle mine, in Western Rio Tinto decided to sell names, many with their own commoditised, with no price their peak, meaning supply will exquisitely crafted piece but Australia, owned by Rio Tinto, Argyle stones by tender, royal connections. They include list, since value depends on sub- decline.” He says the supply- with smaller stones, you’re los- has only another 10 years pro- through sealed bids, and to offer Graff, Moussaieff, Calleija, a tle nuances of colour, balanced demand gap could add as much ing a lot of the value in the duction left in it. Dwindling sup- only cut and polished diamonds, London and Sydney-based spe- with other variables such as as a 3 to 4 per cent premium to labour.” plies are swelling demand from processed in its own facility in cialist in red diamonds, and clarity and cut. diamonds over the next few Mr Laib says that the funds collectors and investors, espe- Perth. Nirav Modi of Mumbai. High-quality pink years. could further fuel retail sales of cially in the Middle East and Laurence Graff bought the The event will heighten the diamonds can reach Until just over a decade ago, fine jewellery. “You lose a large China, where the combination entire first tender, and, with heirloom aspect of the Argyle 20 or even 50 times De Beers, which controlled 80 piece of value by buying at of the stones’ natural beauty typical audacity, set them all pinks, and the royal links that the price for a white per cent of the diamond market, retail, of course [as opposed to and glittering investment poten- into one flower brooch, which connect them in turn to the long diamond equiva- largely dictated prices. But a investing in diamonds as a com- tial is proving irresistible. he sold immediately to the Sul- legacy of the pink diamond as lent, and prices turning point came in 2001, modity at wholesale prices], but Philip Baldwin, of the Sciens tan of Brunei. an object of desire. The history have increased when the company went pri- the fact that diamonds are seen Coloured Diamond Fund, says Mr Graff has a definite pen- extends from the early Indian exponentially, in the vate. It had previously held as assets will make pieces more demand is phenomenal. “It’s all chant for pink: in November Golconda diamonds, such as the past 10 years, defying stockpiles of diamonds, but attractive,” he says. “It creates about collectables. Buyers today 2010, at Sotheby’s Geneva, he Agra, given to the Mogul economic crises, peak- when it went private and took a feelgood factor about buying are more educated, developing paid $46.2m for a ravishing gem Emperor Babur, conqueror of ing in 2009, when the on debt, it was forced to sell pieces.” the taste and discernment of 24.78 carats, setting a new the city, in exchange for lives, average sale price these, keeping prices flat. Andrew Coxon, president of needed to appreciate coloured world record for a pink dia- and the Darya-I-Nur, another reached just under Mr Laib notes: “Once that the De Beers Institute of Dia- diamonds. mond, and naming it the Graff Mogul treasure that became $2m per carat, and is stockpile was depleted, prices monds says: “We do, of course, “Argyle stones are not big or pink. part of the Iranian crown jewels, now regaining momentum. started to rise again, as market see clients investing these days gaudy – the biggest are about This year, to celebrate Queen through to the Williamson Pink, Mr Baldwin talks of a “red forces took control. De Beers in rare, beautiful diamonds, but two carats – but their specific Elizabeth’s diamond jubilee, Rio a melting, powder-pink stone phenomenon”, the elitist race now controls 40 per cent of the purchasers know that they are colour, very different from pink Tinto is holding its annual ten- from the Williamson mine in for the staggeringly rare red market. Things have fundamen- also a sound investment. diamonds from say Brazil or der in London, a rare occur- Tanzania, found in 1947 and pre- diamonds, but empha- Laurence Graff set tally changed. The market is “It’s as good an investment as Africa, is both desirable and rence, and even more unusually sented as a wedding gift that sises that, while the the entire first now liquid and transparent.” art, if you buy for your own immediately recognisable.” showcasing the tender stones in year to the then Princess Eliza- red or pink diamond is tender of Argyle Will diamond investments pleasure as well as for capital The Argyle mine was discov- a one-off event for specially beth. viewed, for example, by pinks in this brooch succeed in taking over from appreciation.” FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 15 Watches & Jewellery Investors go for something more tangible

Stores of wealth One popular choice is investment diamonds, reports Claire Adler

recent report by Barclays found that, in the current zero interest rate environ- ment, investors are showing Amounting interest in collectables. Greg B Davies, head of behavioural finance at Barclays says: “A desire for tangibility and familiarity is encour- aging investors to increase the propor- tion of their wealth that is given to treasure such as precious metals, jew- ellery, wine and coin collections. This indicates that they perceive this as a more stable source of value.” Meanwhile, with Bain & Company forecasting that demand for diamonds will outstrip supply by 2020, the mar- ket for investment diamonds is about to play an increasingly influential role in the diamond industry – even if not everyone is comfortable with the idea. Ya’akov Almor, an industry consult- ant, comments: “The concept of investment diamonds is an admission that rare, high quality diamonds are a commodity. “This counters many of the indus- try’s traditional marketing messages, which have centred on romance and mystery. But there’s no denying it. Investors will join the most influential players in the diamond market.” The prospect of mines running dry, combined with robust returns on dia- monds of more than one carat and mounting demand from China and India, are generating much talk about investment diamonds, which are largely viewed as the most portable form of wealth there is. It takes 10 years and several billion dollars to turn the discovery of a kim- Inflation beaters: with stock markets volatile, investors are showing interest in commodities seen as having absolute value, including collectables such as diamonds AFP berlite pipe into a profitable, working diamond mine and no significant dis- holds less wealthy – which can weight have appreciated in value by selling to a diamond wholesaler or tive of Academy & Finance of Geneva, coveries have been made in more than adversely affect diamond prices,” he 8.2 per cent a year, while investments jewellery retailer. a wealth management conference 20 years. says. in the FTSE 100 yielded an average Waldman holds its investors’ dia- company, thinks the diamond invest- Encouragement also comes in the Jewellers, including Fabergé, Stein- return of 0.7 per cent. monds in high-security, segregated ment market is ready for its next step. form of repeated record-busting sales metz and Nourbel & Le Cavelier are Luxembourg-based Elite Advisers bank safes in Hong Kong, Israel and “Investing in diamonds, each of which of the largest stones in auction rooms, upbeat about the future of investment launched the Divine Jewels Fund in New York and also arranges insur- is different, can only be achieved suc- even during times of recession. diamonds. 2011, offering the opportunity to ance, shipping and storage. Alex cessfully through companies and At Sotheby’s in May, the Beau “Three years ago, I sold a three invest in a collection of diamonds, ‘The concept of Waldman, chief executive of Waldman frameworks that specialise in this par- Sancy, a 34.98 carat diamond that carat D flawless diamond for £125,000. precious stones and antique jewellery investment diamonds is Diamond Company, says: “Clients ticular asset. We plan to bring major passed through the royal families of Today I’d have to ask nearly double,” valued at more than $14m. either take ownership of the physical players in the diamond investment France, England and Prussia, fetched says Charlie Pragnell, managing Jan Maarten Asscher, scion of an an admission that rare, stone or use the services we offer that market together to present their oper- $9.7m, almost five times its pre-sale director of Pragnell’s, one of Eng- illustrious European diamond dynasty high-quality diamonds make our investment diamonds as ations to private investors, brokerage estimate, after a frenzied battle land’s most distinguished jewellers. and Mark Walker, an industry stal- close as possible to other financial firms and bankers, so they can inte- between five bidders that lasted just The fact that diamonds can be worn wart will soon launch a diamond asset are a commodity’ instruments.” grate diamonds into their clients’ eight minutes. and enjoyed might appear to be the fund, Pink Iguana, specialising in André Valery Bordes, chief execu- investment portfolios.” Christophe Spaenjers, assistant pro- best hedge against the risk that any trading certificated polished diamonds fessor of finance at HEC Paris, says investment brings. Yet some investors of a third of a carat and above. white diamonds sold at Sotheby’s and are now putting their money in dia- Meanwhile, Antwerp based diamond Christie’s beat inflation by more than monds without the benefit of direct industry consultancy European Qual- 6 per cent between 1999 and 2010 – access to the actual stones or jewel- ity Circle will soon launch a diamond outperforming equities and bonds, but lery. investment fund, also run by industry underperforming gold. However, he Georges Karam, Nourbel & Le Cave- insiders. points out it is difficult to predict lier co-founder, sells high-quality Waldman Diamond Investments which diamonds will hold their value loose diamonds at wholesale prices to works with wealth management firms over time and which lose value. private and institutional investors and brokers targeting investors inter- “Given diamonds are a luxury, even round the world. ested in high-quality diamonds of if financial turmoil makes investors Diamond Capital Fund requires a a carat or more. Via its online portal, think about diamonds as an alterna- minimum investment of $75,000 and investors can resell their diamonds tive asset that can have a positive trades one- to five-carat diamonds. In to others on an open marketplace affect on prices, it also makes house- the past decade, diamonds of this without having to discount them by Unabashed passion for diamonds and women

else would have sent the glamour has also shaped Book review 726-carat Jonker diamond his timeless appeal. from London to New York Let us not forget the Harry Winston via regular, registered many pop culture moments mail? that centred on Harry This jeweller’s Above all else, the book Winston. These include: name became part portrays beautifully the Marilyn Monroe exclaiming juxtaposition of “Talk to me, Harry of popular culture, approachability and Winston! Tell me all about says Jim Shi privilege – by no means an it!” in the song “Diamonds easy feat given the Are a Girl’s Best Friend”; priceless nature of Mr Gwyneth Paltrow accepting Harry Winston’s unabashed Winston’s trade. her 1999 Oscar in the passion for diamonds and But it is also a testament Winston firm’s signature the women who love them to the brand’s resounding wreath necklace designed are recounted in a strength that sales are by Ambaji Shinde; and Ben biography-cum-coffee table projected to hit $1bn in the Affleck’s now-infamous book, out next month, that next seven to nine years. proposal to Jennifer Lopez documents the rise of the Filled with rich images with a 6.1-carat pink “King of Diamonds”, who of the world’s most diamond. died in 1978, in the ever- historical and instantly Harry Winston’s competitive jewellery recognisable jewels, the diamonds are so world. book serves less as a enrapturing that Sharon The brand’s history reads jewellery collector’s fantasy Stone sued the jeweller in as almost too good to be catalogue and more of a 1993 for misrepresentation, true. At a tender age, Mr written documentary of after insisting that a Winston spotted a two- one man’s inexhaustible diamond necklace that was carat emerald in a desire, over the course loaned to her for the pawnshop that did not of 80 years, to bring Oscars was a gift. The item know what it was, bought the US to the forefront of was eventually returned. it for 25 cents, and sold it an industry that was once As Mr Winston is said to for $800. dominated by Europe and have remarked: “Jewels And so a diamond Asia. glamorise women, and dynasty was born. The seamless meld of some women glamorise He was quick to realise luxury and philanthropy jewels.” that if he could not that he cultivated remains While times, and, some compete with other unmatched. would argue, the human diamond heavies – at the This holds for the 601- spirit, have changed since time, 95 per cent of the carat Lesotho, which Mr Mr Winston’s heyday, the world’s diamond supply Winston purchased in 1968 brand he built from a was governed by De Beers and had cut into 18 gems, simple dream still retains – it would be most wise one of which Aristotle an air of unmatched to carve out another niche. Onassis bought for exclusivity, with only The result, in a rather Jacqueline Kennedy’s 22 retail salons worldwide. revolutionary fashion, was engagement ring; the 69.42- To this day, more than a modern jewellery design carat, pear-shaped, Taylor- 60 per cent of what the concept that evolved from Burton, that Richard house sells is more than buying great collections of Burton gave Elizabeth $200,000 at retail. estate jewels and Taylor in 1969; and the While it has been 34 transforming large stones fabled 45.52-carat dark blue HARRY WINSTON years since he died, Harry into pieces that not only Hope Diamond that once Winston would be proud to appealed to contemporary belonged to Louis XIV that Life and times of a legend know that the company he customers, but provided an Mr Winston acquired in of the industry built is in good shape – extraordinary return on 1949 and donated to the and that his words investment to boot. Smithsonian Museum of resonate stronger and All this was done with a Natural History in Rizzoli sharper than ever: delectable sense of humour Washington. $85 “‘Diamond’ is a magic and candour. After all, who Naturally, modern word.” 16 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 Watches & Jewellery ‘I had to learn a great deal quickly about hard luxury’

For more than 40 years, attention. My father was Olivier took several personal connection that types of pieces are mainly and will have failed if we A family story Alexandre Reza has been sick, there was a huge bur- streamlining steps, includ- led to his decision to con- being seen now on the auc- produce something they can seen as a leader – and le- den on my mother’s shoul- ing the downsizing of the tinue designing and produc- tion house circuit. But an find anywhere else in the Olivier Reza’s gend – within the world of ders and the store had been Reza workshop in Paris and ing exquisite jewellery appetite for the aesthetic is world,” he says. journey has taken haute joaillerie. robbed several times – it the sale of all European pieces under the Reza booming again, both from Volume has remained a The quality of his crafts- was a difficult period for us stores. The latter was a par- name. western clients and the central design hallmark, him from mergers manship, dazzling client all,” says Olivier. ticularly timely and profita- “While my father was a emerging markets, so it’s passed from father to son and acquisitions list, plus a priceless collec- “Although jewellery had ble move, given the dizzy- shrewd investor when it giving us a great competi- and evident in several tion of gems and precious always been a large part of ing property prices paid for came to collecting stones tive edge.” recent pieces. So too has to jewellery stones, meant that the Mos- my life – I had grown up choice retail locations and fully understood the A Paris showroom opened ensuring the perfect cut of design, writes cow-born, Paris-based jewel- with endless visits to work- before the 2008 financial cri- importance of transferable on the Place Vendome last Hallmark: a Reza a stone, as the name of ler has been considered shops or exotic gem fairs sis. assets, the motivation was June. Olivier wants to stay commission will take Reza embraces not one man Elizabeth Paton responsible by many for and sometimes even sub- “The process felt familiar not to amass wealth. A per- small, so as not to dilute between three and but a whole family brand. some of the finest designs mitted my own designs – after the many projects I fectionist, he was driven by manufacturing quality and six months to create But does Olivier ever of the late 20th century. my father had often shut a desire to have maximum keep focus on the stones. miss the pace and chal- Five years ago, however, me out of his world. flexibility to create the Any Reza sketch or lenges of his past career in Mr Reza was diagnosed “He could be a difficult ‘Each design is an most innovative and beauti- bespoke commission the finance world? with Alzheimer’s disease. man to work with and, con- artisanal labour of ful designs imaginable.” will take between “Occasionally, although Both his brand and work- sequently, I found myself After months learning the three and six much of what I’ve learnt shop fell into a state of dor- needing to learn a great love, which shifts trade, with endless hours months to create, from banking comes into mancy when he became deal very quickly, both in gradual orbit spent at auctions, sketching with two to three practice again and again unable to continue. about our business and the and talking to past clients, pieces being today,” he says. The decision then fell to hard luxury sector as a around the stones’ Olivier began mounting a finished a “As a jeweller, you need his son, Olivier, a mergers whole.” preliminary collection of his month. to be a canny commodity and acquisitions specialist Several important man- own designs. A passion for “ E a c h trader, knowing when to at investment bank Lazard, agement decisions had to be had worked on during my haute joaillerie has been design is an buy and when to sell. You as to whether to take on his made regarding the future banking career – I used the one catalyst. Another has a r t i s a n a l must constantly guide cli- father’s jewellery business. of the brand. First, Olivier knowledge and skill sets I been his identification of a labour of love, ents and foster working In early 2008, after dec- contemplated taking the had acquired, so there was gap in the hard luxury sec- which shifts in relationships. ades pursuing his career in Reza house back to its roots a strange sense of déjà-vu tor. gradual orbit “Finally, you should the New York finance – as a leading supplier of as I calculated what to sell “The big-name brands are around the foster a successful business industry, Olivier returned stones to the jewellery or buy,” recalls Olivier. constantly constrained by stones. I want strategy with exciting to the family fold. world. Alexandre had spent “Only this time, the busi- their shareholders, invento- to give every growth potential. We have The move from a commer- a lifetime consolidating a ness was that of my family. ries and size of supply customer some- the stones, no debt and cial to a creative path was vast inventory; a reversion I didn’t necessarily want to demands when it comes to thing far beyond a stellar international not an easy one. “There was to a business-to-business liquidate it – I wanted to their designs. Many have the market value reputation. no doubt that the business strategy would simplify find another path.” abandoned the big stones of a diamond, “Let’s make people dream now warranted my full-time operations. It was this deep sense of a market altogether – those emerald or ruby, again.” The increasing attraction of the family connection

Heritage Clients are seeking authenticity over the perceived anonymity of corporate-run brands, writes Avril Groom

Nothing is more instructive about family firms in the watch and jewel- lery business today than the tale of Jack Heuer. The engineer grandson of the company’s founder, he built up the business in the 1960s with innova- tive marketing, becoming the first watch sponsor of Formula One. How- ever he, was forced to leave and give up his shares when the company was taken over after suffering supply problems in the 1970s recession. He turned his back on the watch Ancestry: Jacqueline Hermès (right), industry and made a successful career wearing the first Hermès watch in 1912 elsewhere. Now 80, he has been ambassador and honorary chairman Seynes, the chairman of Le Montre of the company now known as TAG Hermès. “Clients trust the integrity Heuer for the past 12 years, and is and quality of the brand, they believe seen as having been instrumental in we do things for the right reason. restoring its image. Alongside creative design, we were “The company changed hands three early into new mechanicals and now Winners: Theo Fennell, high society jeweller, with successful competitors in the contest he sponsors at the Royal College of Art in London Angus Taylor times and, along the way, it lost its women’s automatics, verticalising to heritage,” he says. “LVMH, which get the best makers, not because we bought it for SFr1.2bn in 1999, recog- were competing with other brands but nised that. It already had the experi- because our heritage is high craft.” ence of keeping family members in its Interest in the family, still ruggedly drinks companies. independent in the face of well-publi- How to propel talent to the “The then chief executive tenta- cised corporate overtures, comes tively asked me, over lunch, to com- increasingly from new markets, says ment on some products. I saw certain Mr de Seynes, especially “from sophis- details perhaps others wouldn’t, like ticated Chinese, who understand his- legibility, the balance of the hands, tory and value it over branding”. the size of the date figures – rules not Fourth-generation Jasmine Aude- top of the business world everyone knows but which make a mars, president of the board of direc- difference and that I had followed.” tors at Audemars Piguet, which still He suggested two product ideas and, boasts members of both founding fam- to connect with others in her field “Our collaborators know that really International Jewellery London, and a month later, was offered his new ilies, finds this interest a global trend The competition circuit before she went on to open her strong, fresh ideas can come from stu- this year went on to receive a free role. “They discovered that the cover- underpinned by “clients’ well Claire Adler looks at the boutiques in Notting Hill, London, dent competitions, so they’re a wise stand and business advice via the age I got them worldwide was valua- and Santa Monica, California. and valuable investment when run trade show’s Kickstart initiative. ble,” he says wryly, and their relation- The personal touch pros and cons of contests Thanks to its world-class reputation well.” She has also been named one of the ship has flourished. His personal as the alma mater of some of the Swarovski, Cool Diamonds and the Rock Vault Dozen who have been archives have proved essential to the is even more biggest names in British fashion, Goldsmith Craft and Design Awards invited to exhibit at London Fashion house establishing a museum and he gainst a backdrop of dwin- including Stella McCartney and the all run competitions in conjunction Week’s Rock Vault exhibition, an ini- has helped design new versions of the important to small dling manufacturing, profes- late Alexander McQueen, Central with Central Saint Martins. tiative of the British Fashion Council Carrera – his original creation – for firms without corporate sional jewellery competi- Saint Martins College of Art and Since 2011, the International Palla- and the International Palladium his 80th birthday and its 50th anniver- tions in Britain are offering Design is regularly approached by dium Board has also invited students Board, curated by Stephen Webster, a sary next year. Though he plans to advertising power Ainvaluable support and exposure to organisations wanting to run competi- from the college’s MA programme to celebrity jeweller. stop travelling, he says he will “con- the best and brightest new jewellery tions that capture the talent of its create a piece of jewellery from palla- Meanwhile, Andrew Geoghegan has tinue to advise on the creative side. talents, ensuring the UK retains its student population and benefit from dium that emphasises the metal’s become the first designer to be nomi- The brand is on the right course with informed Internet research and inter- reputation as a design powerhouse. the school’s prestige. lightness and strength and offers one- nated for International Jewellery Lon- the right people now”. est in the last luxury watch brand in The Goldsmiths’ Fair awards free “You have to be clear why organisa- to-one business mentoring support to don’s Editor’s Choice award two years There are parallels with fourth- independent family ownership”. exhibition stands to 10 winning jewel- tions want to run a competition. winners throughout the year. in a row. generation Walter Lange, who was In addition, she says, “people want lers and silversmiths, plus £1,500 and Sometimes, the students are the last Some jewellery designers are gain- He says: “Winning Editor’s Choice forced to give up the family company traceability, to know where some- a loan of precious metal to work with. thing on corporate minds and we ing a foothold on this new competi- has been extremely exciting for me. of Lange und Söhne to the East Ger- thing was made and by whom, and its Kickstart, which is run by Interna- advise students against entering,” tion circuit, demonstrating the princi- It’s given retailers more confidence to man state in 1948. He got it back in historical context – which is why cli- tional Jewellery London, offers free says Simon Fraser, Central Saint ple that success breeds success. invest in a collection knowing it is 1990 shortly after reunification and ents love to visit us”. exhibition stands at International Martins course director for MA design Clarice Price-Thomas, a 21-year-old award-winning – it’s a phrase with a trained its craftsmen watchmakers, The personal touch is even more Jewellery London, intensive work- in jewellery, ceramics and furniture. self-taught jeweller, inspired by her huge impact.” who had been producing cheap indus- important to small firms without cor- shops and the opportunity to partici- “But design-led retailers can be watchmaker father, has bagged five Some industry figures remain trial watches, in his high standards of porate advertising power. Olivier Mel- pate in a glamorous preview exhibi- hugely supportive, publicising win- awards in the past 10 months for her cautious about competitions, however, quality, finish and decoration. lerio presides over the venerable tion at Goldsmiths’ Centre, all ners’ names in store displays and pub- jewellery, which celebrates the beauty maintaining that mentoring and His idea, says his representative – Parisian jeweller that bears is name intended to prime winners for what is lic relations campaigns,” he says. of watch mechanisms out of their supporting talent over time is para- he is now 88 – “was to add creative and next year celebrates its docu- very often the first professional sell- cases. mount. modern technique to the traditional mented 25 years, though legend adds ing exhibition of their lives. The EC One Unsigned Competition Gordon Hamme, founder of British craft that collectors remembered the another century. “We have always These initiatives provide gifted involved applicants posting a photo Silver Week and a jewellery business brand for. It took four years”. concentrated on highly artisan, pri- designers with fast-track exposure to on Facebook and battling it out to mentor, recently took a young He took on a “watchmaking genius” vate commissions – though we also the right people – buyers, mentors secure the most “likes” as votes. designer round the BaselWorld fair partner and is still a respected figure- have a younger, fashionable, ready-to- and the press – as well as propelling The prize included intensive men- and made introductions for him. head at the manufacture and with vis- buy collection – and knowledgeable them rapidly into the business world. toring with Alison and Jos Skeates, He insists that vouching for some- iting clients, “because he has the his- clients now seek us out,” he says. Sarah Jordan, who has scooped at the owners of EC One, the Notting one can make a big difference. tory and the direct line, which makes Boodles, the British jeweller, pro- least 14 awards in her 25-year career, Hill and Clerkenwell-based jewellers. Theo Fennell, the high society jew- talking to him a highlight”. The com- motes the family angle because, says including first prizes from Platinum Ms Price-Thomas’s collection is now eller, remains in close contact with pany is now part-owned by Riche- Michael Wainwright, managing direc- Guild International for the past three stocked in high-end jewellery bou- winners of the annual competition he mont, the Swiss luxury goods group. tor, “customers feel they can rely on years, advises Kickstart winners, tiques, including Charles Fish in sponsors at the Royal College of Art. Family connections are in the the expertise and honest value of a often sharing her own business expe- Canary Wharf, east London, whose “There are many more prizes and ascendant, as clients seek authentic- company with such history and we do riences. buyer approached her after reading opportunities nowadays, but there are ity over the perceived anonymity of client events that our wives attend – “Topics such as pricing, manufac- about her in a trade magazine. also thousands of students and civil- corporate-run brands, which love to it’s an informal, personal relation- turing and selling in a professional “If I hadn’t won these competitions, ians, as it were, trying to be jewellery find people such as Mr Heuer. ship.” manner can be a complete mystery my progression would have been designers,” he says. Even huge groups such as Louis The company’s Bond Street flagship and minefield to college graduates,” much slower,” says Ms Price-Thomas, “The sooner students understand Vuitton and LVMH-owned Bulgari competes with big-name brands that she says. who recently moved into her own how tough the trade is, the better. have family members on board. are, he says, “still more of a draw for Pippa Small, a former Bright Young work and meeting space in the Hatton They can learn from every angle with- “Our biggest plus is our perspective international clients. Our repeat cus- Gem winner, says the award was Garden jewellery district. out the risks of it being their living. – being able to see the present and tomers tend to be local.” instrumental in giving her press cov- In 2011, Imogen Belfield won the Our creative students are one of Brit- future in the context of our past,” To judge by other groups’ experi- erage, validation and the opportunity Bright Young Gem: Imogen Belfield Bright Young Gem competition at ain’s most important resources.” says sixth generation Guillaume de ence, that may change. FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 17 Watches & Jewellery Pomellato tries its luck with a silver collection

Pomellato’s boutique Prada has given a hint that the aimed at the more adventurous Affordable luxury in Shanghai (left) late 60s and early 70s might and Chevaliere rings. and, below, the come back as a fashion or way “The Pomellato 67 items Eric Sylvers considers Italian jewellery of being and 67 fits into that. We would cost between eight and 10 the company’s decision house’s 67 silver always look to fashion for inspi- times more if they were done in bracelet, part of a ration.” gold,” say Mr Morante. to introduce a range range that is seeking Since its founding in 1967, The choice to premier Pomel- that does not use gold to appeal to a new Pomellato has positioned itself lato in the US was anything but type of customer somewhere between high-end accidental. Americans are much jewellers such as Tiffany, more inclined towards silver he fashion world is lit- Cartier and Bulgari and lower- and the presence of several tered with companies end producers. important makers of silver jew- that have gone down- The idea behind the creation els in the US means the market market in an attempt to of Pomellato was to make jewel- is probably big enough to Tincrease sales. Sometimes it lery priced so as to appeal to absorb a new entrant, says Mr works and even manages to pro- women as everyday accessories Morante. vide a boost to the high-end that they might buy for them- He is also keen to build the lines; and sometimes it pulls selves rather than wait to company’s US business, because down a brand that has spent receive as a gift. he is convinced that only brands years carefully building a fol- The company has played the lowing. card well, with women making With the introduction this up 65 per cent of customers, Each piece has been month of a line of silver unusually large among high-end drawn from the jewellery, Italy’s Pomellato, jewellers. long known for its skilfully In late 2010, the company archives, which handcrafted gold and stone- began a marketing push aimed include classic uneven studded creations, will try its at men through an advertising luck with the lesser precious campaign in Italian sports daily link chains, earrings, metal. La Gazzetta dello Sport that The new line of jewellery, sought to highlight the bangles and charms called Pomellato 67 to hark back approachable aspect of the com- to the company’s founding pany’s jewels. Pomellato 67 is 45 years ago, will debut in the attempting a similar move by with global reach will survive US in Saks Fifth Avenue and seeking to appeal to a new type the financial crisis. Pomellato’s stores and then of consumer. The crisis has accelerated cross back to Italy and the rest “With the silver collection, we Pomellato’s push to get a larger of Europe in November. are going to reach out to a new percentage of sales outside Italy. Each piece has been drawn c u s t o m e r Whereas a few years ago, the from the company’s archives – split was 55 per cent interna- which include classic uneven tional and the rest Italian, for- link chains, earrings, bangles eign sales now account for 75 and charms – reinterpreted and per cent and that is expected to still made by hand by Pomel- grow in the coming years. lato’s skilled goldsmiths. Pomellato already has a sec- Andrea Morante, chief execu- ond, less expensive, brand called tive and a former investment Dodo, introduced about 20 years banker at Credit Suisse and ago and now sold in its own Morgan Stanley, says: “Gold stores, and Mr Morante sees bracelets or chains that we were Pomellato 67 as a similar experi- making 40 years ago would base,” says ment, a potential third brand. be too heavy today and would Mr Morante. The success of Pomellato 67, be very expensive. With that “Younger peo- or the lack thereof, will deter- in mind, our creative director ple might start mine whether the line remains said ‘why don’t we blend, using by buying Pomel- an add-on product to Pomellato silver since the price of gold lato silver and, or becomes a separate brand is going beyond reach and why when they are with its own distribution and don’t we use the designs we comfortable with what stores. have in the archives for gold it represents, may For now, the products will be while reinterpreting them giv- switch into gold. And we available in Pomellato stores ing them a modern vibe?’ might also have traditional and high-end retailers that carry “Often, when companies use Pomellato customers who the brand. silver, since it’s less precious, might be happy to buy “We are already working as if they are less worried about the ity that will assure customers The company, with sales last “That was a period of evolu- Pomellato 67 products.” Pomellato 67 is its own brand, absolute quality of the produc- we aren’t lowering our stand- year of €138m, 12 per cent up on tion and we wanted to capture The Pomellato 67 line, with but the market is the real jury,” tion.” ards. We would never put into 2010, is reaching into its that with the silver collection,” prices ranging between $350 and says Mr Morante. “I think the But, he insists: “We are going jeopardy the brand awareness archives from the late 1960s to says Mr Morante. $4,500, includes the large Gour- jury will make up its mind in to maintain the element of qual- and niche that Pomellato has. the early 1970s for the new line. “In the fashion world, Miuccia mette chains, Safari pendants the next 24 months.” Substitutes shed cheap, disposable reputation

or finish,” says Ms Rogers. designers find these tech- bout wholesaling it or the Gold plate “Recently, we have defi- niques appealing, as the retailers add their nitely seen an increase in upfront costs are much less mark-up.” Elisa Anniss looks the variety of designers than having to invest heav- From Bex Rox to Daisy offering gold-plated pieces ily in gold for samples.” Knights, who creates pieces at designer pieces and have expanded our Indeed, choosing to pro- such as skull rings and ear- that are desirable offering to reflect this.” duce in plate is a practical rings fashioned from 22- She singles out Esteban consideration now that gold carat vermeil, there is a as never before Cortázar, the clothing has jumped from $400 an wealth of other interesting designer, who has beefed-up ounce a decade ago to about London-based designers for Rather like the contents of his collection by adding a $1,600 an ounce now. whom gold vermeil or plate a Christmas cracker, gold gold-plate offering of rings, Peter Byworth, a London- is the material of choice. vermeil or gold-plated jew- cuffs and chokers (£250 to based fifth generation jewel- Bex Manners, the ellery used to have a cheap, £420) designed by Alican ler, says: “Historically, designer behind Bex Rox, disposable reputation. But Icoz, the Paris-based jewel- when supply has been dis- says: “I would say that this is no longer the case. ler. rupted, we have looked at most people wouldn’t be Since gold prices have There is more gold-plated alternative raw materials. able to differentiate rocketed, jewellery design- and vermeil jewellery than This was true for widely between vermeil and gold ers have stepped up innova- ever before in Liberty of used synthetic corundum, plate. tion using substitutes for London’s newly extended rubies and sapphires and, “We make sure that we solid gold. Accessories Emporium, during the Deco and Retro have a minimum of one Take Rachel Entwistle which seamlessly mixes [1940s] periods. The same is micron of gold on all of our who joined forces with designer, precious and semi- true today with gold.” pieces – with five microns Kamilla Thorsen, another precious jewellery. Together with Ann Marie on rings – to ensure the London jewellery designer, Alexandra Stylianidis, Stanton, a Los Angeles- quality is high.” to open Thor & Wistle in head of buying for women’s based jeweller, he has Ms Manners specialises in Shoreditch, east London, in accessories and jewellery at launched a gold plated col- what she describes as “lux- May. Here, both designers Liberty, says: “We must lection, called Freyja, that ury costume jewellery”, showcase their labels, remember that plating and includes gold plated bangles statement pieces that are Dynasty Jewellery and vermeil used to be consid- modelled on 1940s Retro-era fashioned from gold plate Rachel Entwistle Jewellery, ered a luxury.” hinged or sprung pieces. and retail from £45 to £900 comprising delicate and She says that, after turn- “With gold at the highest at Browns Focus, Harvey decorative gold plate or ver- ing to Emily Satloff, a noted price for the longest period Nichols and Harrods. meil pieces retailing for antique jewellery dealer, recorded, it is just not via- It is not clear whether between £100 and £600. she discovered that gold ble to make larger state- consumers understand or Ms Entwistle says: “The plating was once a practical ment pieces out of the pre- even care about the differ- term gold vermeil is widely move by Georgians who set cious metal,” he says. ences between gold plate used in the industry, but we their family diamonds in “The multiples of retail and vermeil. Nevertheless, don’t actually think con- gold plated silver (vermeil) make some items eye water- most jewellers say that they sumers are able to distin- to prevent the silver from ingly expensive to manufac- try to educate their custom- guish between vermeil [gold tarnishing their clothing. ture. To put it into perspec- ers about exactly what they plated silver] or gold plat- These days, price rises tive, the Freyja bangle in are buying. ing [gold plating of any coupled with fashion-driven gold-plated brass retails for Katie Hillier, the accesso- other material].” trends such as layering, £550. In solid 18 carat gold, ries designer behind Hillier, Confusion over tech- have once again helped it would cost us £9,200 works in both solid gold niques does not seem to boost the material’s appeal. before we make a penny. and gold vermeil. The com- have hampered sales. Add New York-based Eddie And that’s before we even pany introduced vermeil, in fashion-savvy retailers, Borgo has set its collec- t h i n k which accounts for 40 per who increasingly sell such tion in gold plate a cent of the collection, to pieces, and you have a cate- and gold vermeil, give younger customers the gory collectively described which means chance to buy into the as gold plate that is consid- that investing brand. “I can only really ered “designer” and desira- in more than speak about our custom- ble as never before. one of his ers, and I do believe they From delicate studs at Pavé Cone can distinguish between Alex Monroe to bold and b r a c e l e t s the two. We make it very quirky pieces from Kenneth (£800 for the clear what the content Jay Lane, the costume jew- large and is,” she says. ellery aficionado, Net-a-Por- £510 for the Ms Hillier also considers ter has a whole section de- smaller ver- vermeil “fine jewellery”. dicated to gold-plated jewel- sion) will not “It’s not easy to define fine lery with prices ranging break the bank. jewellery. Everyone has from less than £100 to more At Astley their own opinion. For me, than £1,500. Holli Rogers, Clarke, stacking it’s about the quality of Net-A-Porter’s buying direc- pieces include 18 carat materials used to make it. tor, says she has found that gold vermeil rings, such It’s a fact that sterling sil- customers are not particu- as the Timbrel Citrine ver and 18-carat gold are larly price-sensitive, even ring retailing for £140. precious metals. The only when it comes to the higher Ms Stylianidis says: reason we categorise it as priced pieces. “Today, consumers are Economical: Freyja vermeil is that our custom- “It is all about great savvy and more price- gold-plated bangle ers understand that this design and great quality, conscious, while up-and- modelled on a means the base is sterling regardless of metal choice coming and independent 1940s piece silver plated in gold.” 18 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012 ★ 19 Watches & Jewellery Mayfair offices turned into high-end shops

Retail outlets Landlords are busy matching faces to places, says Simon Brooke

Walk into the new Bremont shop in South Audley Street, Mayfair, London, and it might take you a moment to realise this is the flagship store of an well respected British luxury watch brand. Entering Bremont’s first shop, Character: Bremont’s store you’ll be struck by a second world war motorbike, a fighter Connaught Hotel, is a small but aircraft ejector seat and an elegant enclave that Grosvenor antique deep-sea diving mask is particularly keen to develop. before you come to notice the Already home to French fashion more familiar cases of watches. house Roland Mouret, a British These aviation-inspired time- fashion and luxury jewellery, pieces with their highly engi- yet to be named, is due to open neered, masculine styling a maison here this year. include among their fans Hugh Oscar de la Renta and Celine Bonneville, the Downton Abbey are due to open maisons else- actor, Graham Bell, the skier where in Mayfair next month and Matthew Pinsent, the and early next year, respec- rower. tively. Both will show their jew- Beyond the watches there is a ellery collections, with Celine bar and, downstairs, what looks using the space to showcase like something from the Cabinet pieces including its classic sim- War Rooms but is in fact a room ple gold cuffs and clasp brace- for watch aficionados to learn lets in python skin. “Oscar de la more about particular pieces, as Renta had been looking for a well as a regular meeting place long time before we found the of the Bremont Explorers Club. right place, and Celine also In fact this retail outlet with wanted a bigger space,” says Ms its quirky collection of ephem- Franks. Hidden corner: worker at the Bon-Ace fine crafts factory on the island of Cebu in the Philippines where fixings and jewellery for the Paris and Milan runways are made Billy Farrell era is not really a store at all, Both will also use the space to it’s a maison – and the differ- entertain their more loyal and ence is important. The maison affluent clients. This will ticks a number of boxes: it adds include private views and oppor- to the luxury experience compa- tunities to meet designers and nies are trying to create in their craftspeople. A remote Philippines factory stores, it allows them to show off their artisanal skills, and it means top end customers can The idea of landlords shop discreetly. actively choosing Two-and-a-half years ago, Louis Vuitton opened its first brands rather than helps supply Milan’s runways UK maison in nearby Bond waiting for approaches Street and now Grosvenor Estates, landlord of this smart has been growing In this remote corner of the latest ranges off the runways accessories come in at between followed suit,” says Mr Pineda. part of London is encouraging Jewel wizards world, one factory is making had to hop on a flight to Hong $50 and $200. Mark González, founder of jewellery and watch brands as most of the fixings and jewel- Kong. Mr Pineda says: “Adora has Homme & Femme Retail Con- well as other selected luxury The location is important – Syl Tang makes the lery coming down the Paris and Not only did Adora present been a channel to discover cepts, and partners with Adora retailers to follow suit. Grosvenor approached Bremont long journey to a little Milan runways. sought-after designer wares Cebu, which is still within our as a concessionaire for compa- Grosvenor Estates has been with the South Audley Street The Cebu factory makes not such as Valentino, Dolce & Gab- shores. With Adora Artisan, nies such as Dior Homme, buying back office leases and site because it saw a match. known area to see a only the aforementioned heels, bana, Neil Barrett and Sandro, these are contemporary pieces agrees that it has not been easy then converting them to retail. “Bremont is quintessentially supplier popular with rings and bag handles, but also but Mr Pineda mounted small made in Cebu. I didn’t want to get the world to come to the At rents of up £375 per square English and so is South Audley belt buckles for Dolce & Gab- challenges to what representa- ‘ethnic’, but rather to bring Philippines. foot for “zone A” space – in Street,” says Ms Franks. “You the top luxury houses bana, rainbow-coloured neck- tives from large brands are used back the glory of Filipino crafts- Mr González says: “It was a other words the front of the also have Thomas Goode the laces for Marc Jacobs, and to seeing alongside their selec- manship.” struggle in the early days. building – operating one of this homeware store, Purdey the Chanel’s resin bangles and tions. A shoe range by Stella Before Mr Pineda came along, What’s commonly known about new type of spacious luxury shooting brand and George, the t a recent show by camellia accessories. The much- Luna, a Chinese brand, sits har- the Philippines exported incredi- the Philippines has been catas- emporia is something of an private members’ club.” Marc Jacobs, the photographed inlay Louis Vuit- moniously next to Jimmy Choo ble talent. Monique L’Huillier trophes, poverty and instability. investment, but it is one that a Giles English, one of the two American designer, ton bangles? They are from but at a price tag of just $100 a and Celestina’s Tina Maristela- The country is not known for growing number of watchmak- brothers who founded Bremont the audience was Cebu. pair. A house range, Harlan+ Ocampo are both from the Phil- its handicrafts, with the excep- ers and jewellers are clearly was also receptive to Grosvenor Awowed by a stunning pair of Going to the factory, Bon-Ace, Holden, features ready-to-wear ippines. Ms L’Huillier’s parents tion of furniture and home fur- willing to make. Estates’ suggested location. mirrored heels on the runway. is quite an undertaking. Once items by local designers and are very prominent in Cebu, nishings. It took some persua- Helen Franks, director of com- “Bond Street is great, but it’s Part Marie Antoinette, part one has reached Manila, one has owning everything from mango sion.” mercial leasing at Grosvenor, very much about international Paco Rabanne, the heels were a to take to a puddle jumper flight factories to cheque cashing Mr González has been slowly says: “We’re looking to create luxury names whereas South well-assembled puzzle of glass. to the island of Cebu, then hire The Bon-Ace factory chains. However, Mr Pineda is dragging brands to his corner of something like the Chanel store Audley Street just fits with our Meanwhile, Etro, an Italian a car to drive an hour, past the makes items for not looking to export Adora. the universe. Homme & Femme in the Rue Cambon or Louis brand DNA,” he says. fashion house found its small slums, eventually off-road over Rather he is bringing the world oversees franchises for four Vuitton in the Avenue de Mon- “We already have 35 retailers paisley rings were selling out. dirt and rocks to the factory Dolce & Gabbana to him. Fred Perry locations. taigne in Paris. As well as sales around the country, but we And Ferragamo, another Ital- gates. So, how did a dozen of the and Marc Jacobs as Sometimes that effort has had And Y-3 adidas – Yohji space, these outlets allowluxury wanted to showcase the brand ian house, found itself unable to world’s top luxury houses, find to be forced. “It took me asking Yamamoto, a first outlet for brands to give high net worth more effectively. We need a keep a handbag with an unusual this obscure manufacturing well as resin bangles five times to carry H Stern. Balenciaga, a Spanish fashion individuals an additional per- decent amount of space for chain link handle strap in stock. source? They kept saying: ‘No, we are house, with a second planned, sonal service in private show things like my brother Nick’s The company tried to reorder The answer may be that it for Chanel not ready for Asia or Manila’. I and a free standing Comme des rooms away from the ground motorbike and the ejector seat more from the factory. Except was a byproduct of the efforts of insisted. Garcons have opened in recent floor and we’ve seen a growing made by Martin Baker who the factory was not in Italy. It is Eman Pineda, the entrepreneur graphic artists in a limited edi- “On the fifth time of discuss- years – the Comme de Garcons demand for this.” we’ve collaborated with.” in Cebu in the Philippines. behind Adora, an upstart tion range of only 12 pieces of ing our buying process, editing, this year. The idea of landlords choosing The Bremont maison also Cebu is not exactly on the department store in Manila. Mr each print. Mr Pineda has curating concept and commit- And as the representatives of particular brands rather than includes a Marine Clock with a fashion map. It is almost not on Pineda, a descendant of two of tapped Margarita Fores, a mod- ments, the chief executive the brands come through waiting for approaches and then face painted by Ronnie Wood. the map of most westerners at the Philippines’ most influential ern florist, chef and caterer of finally said ‘yes’. We were the Manila, they cannot help but simply looking at revenue Retailing at £145,000, it is not a all. The city has one small claim retail families, owns an empo- choice to the Philippine govern- first and are still the only ones notice Adora’s in-house wares. opportunities has been growing piece that would fit most depart- to fame – a YouTube video of rium unlike anything the coun- ment, for a store within a store. selling H Stern in Asia, and It may be that, unintention- over the past decade or so – ment store concessions. hundreds of prisoners at the try has ever seen. But perhaps the most stand- have the responsibility of curat- ally, Mr Pineda has already Marylebone Lane, to the north Bremont also holds regular Cebu prison dancing to Michael While the image of Imelda out items are the pieces in ing it,” he says. helped Filipino style dominate of Mayfair – was one of the first meetings of its Explorers’ Club Jackson’s Thriller. Marcos and her shoes had long Adora Artisan, the house range “To me, it’s OK to be the first. the European runways. locations. with speakers such as adven- Cebu is the domestic shipping been left behind, mostly tradi- of jewellery and homewares, We were the first in Asia to But as the world continues to But Grosvenor Estates, whose turer Bear Grylls and polar port for the Philippines and the tional department store wares where carefully edited stone- carry Francis Kurkdjian, who discover Mr Pineda and Bon- elegant, expensive addresses are explorer Ben Saunders – so fans source of an incredible supply of continued to dominate the coun- and-mother-of-pearl box has been honoured in France for Ace’s doorstep, it only seems a already in great demand, is now of its chunky but lightweight mangoes, but beyond local visi- try’s shopping centres when Mr clutches rival the $1,000 options his work in perfumes. Now, all matter of time before Cebu is no following suit to create a partic- and very masculine watches can tors enjoying the island climate, Pineda opened Adora in 2008. available in western department the other stores such as Joyce, longer just the well-kept secret ular look and feel to the area. hear tales of derring-do without the area is hardly known. Until then, Filipinos seeking the stores. Made at Bon-Ace, these Lane Crawford to Isetan have of the top fashion houses. Carlos Place, location of the ever having to leave Mayfair.

Autumn auctions Antiquorum breaks with tradition, kicking off the sales season early to cater to enthusiasm in Hong Kong

August is a traditionally fallow time for perpetual calendar minute repeater tiny numbers and made available only eighth of 11 existing Invention however, will find 286 lots on Patek Philippe minute repeater, watch auction habitués – with many of which made HK$462,500. to Patek Philippe’s VIP clients. Piece One models made by offer at Bonhams in perpetual calendar model in the big buyers on holiday, the houses All eyes will be on Hong Kong again In April 2008, Sotheby’s Hong Kong the tiny company, Each Knightsbridge, London, on platinum (far left), and a Jeff Koons tend to down tools at the height of the next month, when Sotheby’s stages a sold a Sky Moon Tourbillon for Watch, is estimated to Tuesday September 11, Ikepod Cannonball summer and gradually resume sales in big watch sale there as part of an HK$11.75m to set a still unbroken realise between HK$2.2m where everything ranging September before the important intensive week of auctions covering record for the most expensive modern and HK$3.5m. from 19th century English events of November. the categories of fine wines, wristwatch at auction. That being In addition to pocket watches to But Antiquorum broke with Chinese and other Asian offered next month was one of the last complicated watches, contemporary tradition this year, choosing paintings and works of art, to be created before the end of Asian buyers covet chronographs will be to stage a Hong Kong sale jade and jewellery. The production late last year and is tipped high jewellery pieces up for grabs, with in late August. This drew watch section will to fetch between HK$8m and HK$12m. and this sale aims estimates starting at an impressive HK$13.65m, comprise 420 lots and is Other top-drawer Patek Philippe to satisfy desires about £300. with 80 per cent of the expected to gross as watches to be sold include a Reference with the inclusion Highlights 211 lots offered finding much as HK$125m 5104P minute repeater, perpetual of a one-off bangle include a Franck buyers. ($16m), making for calendar model in platinum (HK$4m to watch by Cartier, Muller King The enthusiasm of the highest pre-sale HK$5m), pictured left, and a 1998 fashioned in the Conquistador at Asian collectors for estimate of any Reference 5013R tonneau-shaped form of a stooping £4,000 to £6,000; a Forthcoming modern such sale held in minute repeater, perpetual calendar eagle and set with women’s 1990 Patek auctions complications was Hong Kong by piece, which was also discontinued last 42 carats of Philippe gold and catered for, with the auction year after a 19-year production run. It diamonds which make it diamond pocket watch September 11 Bonhams, the inclusion of a house. could make up to HK$3.2m. worthy of a pre-sale and one of the Ikepod bonhams.com selection of The most The Asian eye for contemporary, estimate of HK$1.9m to “Cannonballs” editions September 15 Watches of tourbillon valuable piece on rare, high-complication pieces will be HK$2.8m. designed by artist Jeff Koons Knightsbridge, wristwatches, offer will be an further satisfied by the presence of A fully diamond-set version (£3,500 to £4,500), pictured watchesofknightsbridge.com although the top lot example of Patek another Jaeger-LeCoultre Gyrotourbillon of Cartier’s Santos Triple left. The catalogue will also October 8 Sotheby’s, Hong Kong. – a Jaeger-LeCoultre Philippe’s recently 2 (a watch made in an edition of just 100, meanwhile, features a include a selection of sothebys.com Gyrotourbillon 2 in discontinued Sky Moon 20 in white gold) which, judging by the revolving, louvred dial which inexpensive military watches. October 15 Fellows, Birmingham. platinum – went to a Tourbillon, with double performance of the Antiquorum can be set to display a dragon image. At 1pm on Saturday September 15, fellows.co.uk European collector for dials and 12 complications, example, should have little difficulty in The model was produced in an edition recently established watch auction October 19 Antiquorum, Hong Kong. marginally above the including a minute realising its HK$1.2m estimate. of 50 pieces two years ago, specifically specialist Watches of Knightsbridge will antiquorum.com HK$1.8m estimate. Other repeater mechanism, There are also two examples to appeal to the Chinese market and hold an entry-level sale featuring lots November 6 Sotheby’s, London. strong prices were achieved tourbillon, perpetual calendar, available of the eye-wateringly this is the first to appear at auction. It estimated at as little as £100. Viewing (George Daniels sale). for one of the 450 Patek sky chart and sidereal time. expensive, superbly crafted and highly carries a pre-sale estimate of HK$1m is on Friday from 10am to 8pm and on November 11 Antiquorum, Geneva. Philippe 10 days tourbillons Launched in 2001 as the then collectable watches of niche maker to HK$1.5m. the day of sale from 9am to noon. November 12 Christie’s, Geneva. made in 2000 (sold for most complicated wristwatch Greubel Forsey. One is a 2009 Those in search of less ostentatious, christie’s.com HK$487,500) and a Gerald Genta ever made, it was manufactured in Quadruple Tourbillon. The other, the more affordable pre-owned pieces, Simon de Burton November 13 Sotheby’s, Geneva 20 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 8 2012