FT SPECIAL REPORT Watches & Jewellery

Friday June 5 2015 www.ft.com/reports | @ftreports Watchmakers face a Seeing red Record price for Sunrise Ruby Inside The terminator timepiece Arnold Schwarzenegger bumpy ride after boom unveils his watches with muscle Luxury leaders remain in the wake of the Syrian and Islamic While the political protests in Hong State of Iraq and the Levant (Isis) con- Kong and the residual effects of the gov- Page 4 bullish in the face of flicts,whichhadbeenexpectedtoweigh ernment crackdown on gift giving have on sales, Middle East operations saw a played some part in the region’s sub- currency fluctuations 13 per cent boost to €841m. But in Asia dued performance, the crucial factor A winning formula? and a slowdown in Pacific, the company’s biggest market, has been the decision by many watch- Shelby Cobra Asian markets, salesweredown6percentto€4.1bn. makers, including Patek Philippe, Her- and Baume & The group’s main worries continue to mès and Chanel, to raise their prices in Mercier join writes Elizabeth Paton be centred around Hong Kong and some parts of the world and lower them Macau, two of the most important mar- inothers. forces ketsforluxurygoods,which,combined, Jon Cox, an analyst at Kepler Cheuv- Page 4 n the past six months, a cocktail of account for a fifth of global annual reux, says the move “has led to a great wavering Asian consumer enthusi- watch sales. This in turn has fuelled dealofunpredictabilityintermsoftrad- asm, currency headwinds and geo- fears of a build-up of unsold watches in ing, both wholesale and retail, as many political instability has triggered a Hong Kong that have been deterring big players continually adjust prices, I sales slowdown that is taking a toll retailersfrombuyingfreshstock. particularly in Greater China and the onsomeofthebiggestnamesinthehard “Who knows how long this region is US, and suppliers delay purchases Bite of the Apple luxurysector. going to have less robust demand,”says ahead of price cuts in markets linked to Luxury brands get smart InApril,Richemont,ownerofsomeof chairman Johann Rupert. “We are not the US dollar.” He says the fluctuations as they prepare to take theindustry’sleadingmaisons—includ- saying no demand, but less boom time have led to a migration of spending by on the Apple Watch ing Cartier, Piaget, Vacheron Constan- demandforsure.” wealthy Chinese to other parts of Asia, Page 6 tin, Officine Panerai, Baume & Mercier Latest data released last week show notablySouthKoreaandSingapore. and Van Cleef & Arpels — issued a stark thatSwisswatchexportsareupbyjust2 In response to the weakness of the profit warning, predicting that earnings per cent this year to date. This is a con- euro and the strength of the US dollar, A guaranteed diamond would drop by more than a third this tinuation of the subdued trend of 2014 Richemont raised prices in the euro- is forever year as the stronger Swiss franc of all leading watch players, analysts zone and cut them in the US, Middle De Beers has invested increased production costs for time- say,and a reflection of the sector’sover- East and Greater China, but said that no $10m in a grading pieces. exposure to Greater China, where furtherchangeswereplannedfornow. Sure enough, the world’s second- exports have fallen by 9 per cent since “We are now where we want to be,” facility in Surat, India largest maker of luxury goods, after thestartof2015. saysMrRupert. Page 10 LVMH,reportedinMaythatnetincome Thegapbetweenthepricesforluxury fortheyeartoMarch31wasdown35per watches and jewellery in Europe and in A passion for jet cent to €1.33bn, and announced a fur- A Chinese consumer would China is the biggest it has been for three ther unexpected 8 per cent decline in years, according to analysts at Bern- A rare Burmese ruby, with a “pigeon’s private collection of Cartier pieces, and Elizabeth Taylor Aprilsales. save 39 per cent on luxury stein. Currency swings mean that, blood hue” and weighing 25.59 carats, was part of the auction house’s Fashion designer Thegroup’scoremarkets,Europeand goods by flying to Paris despite the price rises in Europe, a Chi- was sold for a world auction record of Magnificent Jewels & Noble Jewels Anna Sui on her love of NorthAmerica,wereup7percentand8 nese consumer would save 39 per cent $30m at Sotheby’s in Geneva last sale. The auction achieved $170m. vintage jewellery per cent respectively to €3bn and instead of buying at home ontheaveragepurchaseofluxurygoods month. The Sunrise Ruby, from a An auction is like theatre — Page 12 €1.4bn. And despite regional volatility Continuedonpage3 Page 11 2 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery News Diamond heist leads to a spike in sales of insurance

Security Companies are having to demonstrate they have well-managed risks, writes Gill Plimmer

ust days before the Cannes Last month, eight men were charged Film Festival in France last with conspiracy to burgle following the month, masked thieves Hatton Garden raid. They are aged entered a Cartier store on the between 48 and 76 and include three J city’s main seafront road — the pensioners. Promenade de la Croisette — pointed a The challenge the thieves faced in gun at customers and staff and escaped breaking into the vault no doubt with€17.5mofwatchesandjewellery. explains why so many of the Hatton Thieves drilled incident—albeitaseriousone—isprob- In turn, she adds, companies need to receiving compensation for uninsured The timing was significant. Ahead of Garden jewellers using it were unin- through a thick ably not enough to make a big differ- ensure that the insurance they buy is itemsare“verylimited”. the film festival, leading jewellers ship sured. concrete wall to ence,”hesays. aligned with their risk exposure and However, even if jewellers and their in their most expensive gems for celeb- Assetsure, the specialist insurance access a vault in Asaruleofthumb,itcostsabout1.5to “willrespondwheretheriskshappen”. customers do adopt stringent precau- ritiestowearontheredcarpet. provider, says it has seen a doubling in Hatton Garden, 2 per cent of the value of the stock for “This includes understanding the tions, Simon Aitchison, head of jewel- The Cannes robbery came soon after the number of customers seeking insur- London jewellers to insure their goods. Over the values at risk at each stage of the manu- lery at Beazley, an insurer, points out the Hatton Garden heist in London, ance for items stored in safety deposit Getty past few years, the commercial jewel- facture, supply and retail chain, and that jewellery and watch thefts remain when a gang of thieves ransacked 72 boxesinthewakeoftheincident. leryandartsinsurancemarkethasbeen making sure the agreed levels of indem- common. safetydepositboxesusedbylocaljewel- Bob Andrews, marketing manager at relativelystable. nityarecorrect.” “If you are a Rolex dealer, you will lerystoresovertheEasterweekend. Assetsure, says: “A number of people Tracy Murrell, global client advocate Ms Murrell says that companies also have been targeted,” he says. “People Although both incidents were rela- who stored their jewellery and valua- atWillisFineArtJewellery,believesthat need to understand the extent to which haven’tstoppedstealing.” tively high-profile and received consid- bles in banks or secure facilities didn’t theseincidentsmakeinsurers,aswellas they can expect to be indemnified by erable media coverage, Charles Reese, a think it was possible for them to be sto- customers,morecautious. theirstorageandtransitproviders. broking director for Towergate Insur- len.Thathasallchanged.” “Generally, the inventory market is “You can buy off-the-shelf coverage, ance,whichspecialisesinjewellery,says He adds: “Not all such facilities very competitive, but as losses occur but the last thing you want is to buy suchheistsare“notinfrequent”. insure the goods they store — as in the andunderwritersarepayingoutonsize- insurance without stress-testing that Thefts from safe deposits vaults are case of the Hatton Garden Safe Deposit able claims, they are going to be more cover against likely claims scenarios,” More on FT.com much less common than hold-ups, in raid. This has highlighted the fact that selective about what they underwrite addsMsMurrell. part because they are more complex no security precaution is ever water- andwhattheycharge,”shesays. Following the Hatton Garden theft Art deco revival Contemporary crimesthatrequireextensiveplanning. tight and that, unless your items are “The onus is on insured parties and some of the stolen goods were subse- designs are drawing on the bold, To gain access to the Hatton Garden fully insured, their value is not pro- their brokers to demonstrate that a quently recovered. Forensic tests are geometric styles of the 1920s Safe Deposit building near Holborn, tected.” company has well-managed risks. The currently being run and the police hope central London, the thieves needed to Even though London is the world’s costisinfluencedbytheindividualcom- to return the items to their owners as Buccellati on show The Italian disable the lift, abseil down its shaft, biggest insurance market with cover for pany’s claim history and whether it is ‘No security soonaspossible. jeweller’s collection is on display in prise open some shutter doors and drill jewellers worldwide largely underwrit- perceivedbyaninsurerasagoodriskor It is not known if all the missing Milan alargeholethroughthevault’swalls. tenthere,MrReesesaysthattheHatton not.” precaution objects have been found and Harry So difficult was the task that, after en- Garden theft has yet to affect insurance MsMurrellsaysthatunderwritersare is ever Levy,president of the London Diamond Enlightened approach There is tering the shaft on Maundy Thursday, rates. becoming more precise about under- Bourse,atradeassociation,saysthatfor a growing trend for pieces inspired they took a break on Easter Friday, re- “The London insurance market standing their clients’ security arrange- watertight’ those small businesses affected by the by spirituality turningonSaturdaytocompletethejob. has an active international side, so one ments and also how they manage risk. Hatton Garden theft, the chances of Fine jewellery sales add a touch of sparkle to the luxury sector

Retail A more informal approach and rising internet sales have boosted sales, reports Andrea Felsted

London’s fine jewellery retail market is undergoingamakeover. An evolving customer mix, overhauls of fine jewellery rooms at some luxury department stores and changing con- sumertastesareshakinguptheUKcap- ital’s high-end jewellery market, which accounts for the vast majority of the country’sluxuryjewellerysales. Monica Vinader, who runs her own jewellery label, says the London jewel- Actress Jennifer Tse (left) meets Monica Vinader in her Harrods boutique - Getty lery market has had a “few tricky months”, with the UK general election. section on the first floor, to bring cohe- Despite the uncertainty in the high- “That is always a bit of a shake up for siontotheentiredepartment.Itwillpay end market, retailers are opening everybody. But I think London is still particularattentiontolighting,tosetoff stores. Last year, Watches of Switzer- verystrong.” thejewellery. land opened a £15m emporium on Lon- London, in common with other lux- Ms David says Harrods has “edited” don’sRegentStreet. ury centres, has been hit by the down- the brand mix on the ground floor, and Monica Vinader opened a store at turn in demand from Russia. According will open a dedicated fashion jewellery Duke of York Square in Chelsea in to Global Blue, which tracks spending areaonthelowergroundfloor. November. She says that up to April, by overseas visitors, Russian travellers “Theseredevelopmentsformpartofa sales were 10 per cent ahead of budget. to the UK were the seventh highest continued programme of investment Overall, the group’s sales are up 35 per spending nationality in 2014. In 2013, across the Knightsbridge store, as we centyearonyear. Russiawasrankedthird. aim to cultivate the world’s finest Demand has been particularly strong Despite the changes in spending hab- brand-mix in the most luxurious and for diamond jewellery, she says, with its, Annoushka Ducas, founder of jewel- invitingenvironment,”saysMsDavid. pieces ranging from £150 to £3,000. lery retailer Annoushka, and before Selfridges, meanwhile, is expanding Overall, diamond sales are up 78 per that Links of London, says she has not by a third its Wonder Room, which has cent year-on-year, with the volume of seen a significant fall in demand from housed its fine jewellery and watch diamondpiecessoldup107percent. Russian clients. Overall, Annoushka’s collections since 2007. The expansion “It’snot the very high-price point dia- sales from stores open at least a year are willbeledbyaTiffanyconceptstorethis mond pieces,” she says, but “very up 25 per cent so far in its financial year, month, followed by the launch of two affordable diamonds, very wearable, whichendsinJuly. brand boutiques for Chaumet and veryeveryday”. Alongside the change in shopper mix, Boucheron. It will also add a dedicated Style trends within the high-end the high-end jewellery retail landscape personalshoppingservice. jewellerymarketarealsochanging. is also evolving, with Harrods among Selfridges also offers a specially “People are more interested in thosechangingtheiroffering. adapted click and collect service for the wearing jewellery in an informal way Helen David, Harrods’ fashion direc- Wonder Room, where a customer can rather than special events and occa- tor for womenswear, accessories and orderapieceofjewelleryonlineandcol- sions,”saysMsDucas. fine jewellery, says: “We are not ‘reor- lect it in-store, trying it on in the bou- “I think people are getting braver. ganising’ the departments. Rather, we tique, and then changing or adding to [Jewellery] is becoming much more aremakingsomeexcitingchangestothe theinitialorderifrequired. part of the wardrobe. It’s more about existinglayoutandfootprint.” Launched last August with Cartier, finishinganoutfitorlook.” As part of the plans, Graff and Harry Selfridges now offers this service with More women are buying jewellery for Winston will open boutiques over the mostofthebrandsintheWonderRoom. themselves,shesays,with80percentof next few months. Tiffany will also Indeed, another trend that is emerg- Annoushka’scustomersbeingfemale. launch a boutique to carry its high-end ing is for customers to buy jewellery And in a world obsessed with images jewellery, while Harrods will open a online. Annoushka’s online sales are up on social media, jewellery can change large secondary boutique for Tiffany in 95 per cent so far this year, and it is thelookofanoutfit. theluxuryjewellerysection. abouttolaunchanewwebsite. “You can wear the same piece of jew- The department store has appointed “There is no doubt that consumers ellery to dress up your jeans as you can the David Collins Studio to refurbish are becoming more confident about togotoablacktieevent,”saysMsDucas. the central portion of its fine jewellery buyingjewelleryonline,”saysMsDucas. “It’sabouttheattitude.” Friday 5 June 2015 ★ FINANCIALTIMES 3

Watches & Jewellery A fantasy watch show and everyone is invited

‘Grand in between. The idea, says Mark Hearn, with the celebrated English emblem that anyway, without the need for an Patek Philippe the company’sUK managing director,is depicted in 19 hand-enamelled colours. exhibition. Exhibition’ brings not so much to make money as to open Theredenameldialissetwithemeralds “What we are trying to do is showcase the rarefied world of Patek Philippe to and the crown with a cabochon, while the craftsmanship, art and history of together a collection of the wider public — even to those, he thegoldchainonwhichthewatchhangs Patek Philippe from the very beginning 400 masterpieces, admits,whomightneverbeinaposition is set with 60 further emeralds and 60 up to the present day. The thinking tobuywhatitsells. redspinels. behind it being open to anyone and eve- writes Simon de Burton The event is called the Watch Art Also on show are: the personal ryone without any admission charge is Grand Exhibition. In keeping with the pocket watch of the company’sfounder, to give people the opportunity to be nyone with even a passing “art” in the title, it is being staged at the Antoine Norbert de Patek; a unique educated and informed about a watch interest in high-end Saatchi Gallery in Chelsea, which minute repeating watch made for the company that many might otherwise watches has probably already has horological form as the Duke of Regla in 1909; and Patek nothavethechancetodiscover. heardofPatekPhilippe. venue of the annual winter watch show, Philippe’s first Swiss-made wristwatch, “Realistically, we know that 80 or 90 A However, mention the SalonQP. per cent of the people who come to the name to passers-by on a London street But the Grand Exhibition is different. exhibitionwillprobablyneverbeableto and the chances are that many would It is the largest, most significant and acquire a Patek Philippe watch, but the fail to associate it with horology. Quite most varied collection of Patek Philippe ‘We are trying to showcase main aim is to get our name out to a simply, most people would never con- pieces ever shown in public — and it is the craftsmanship, art and wider audience and, hopefully, to pro- template spending the sort of sums open to anyone and everyone, free of vide a high quality,informative and fas- required to access the watchmaker’s charge. history of Patek Philippe cinating experience which gives an highlyprized,highlypricedproducts. Once inside, visitors have access to a from the very beginning’ insight into the workings of the last of But in recent weeks, Londoners have dozenroomsacrosstwofloorsofthegal- The Tudor Rose watch has been created in recognition of the London venue the great, privately owned Geneva found themselves exposed to Patek lery, divided into 15 themed areas in watchhouses.” Philippe through a wide-ranging pro- which 400 exceptional timepieces with musical watch with 20 complications, extensive horological library, interac- sold to a Hungarian countess in 1868. motional campaign that has extended a combined value of tens of millions of whichisbeingmadeinjustsevenexam- tive technical and historical animations MrHearncomments:“PatekPhilippe The Patek Philippe Watch Art Grand Exhi- far beyond the luxury lifestyle maga- poundsareshowcased. ples,eachpricedinexcessof£1m. and a special area in which visitors can staged a similar event in Dubai five bition runs until Sunday (June 7) at the zinesinwhichitusuallyadvertises. Every type of movement currently The Napoleon room, meanwhile, rep- listen to the striking of minute repeater years ago, and another in Munich two Saatchi Gallery, Duke of York’s HQ, King’s Advertisements carrying the name made by the Geneva company is exhib- licatesthebrand’sflagshipGenevasalon watches. years ago — but this is the first time it Road,LondonSW3. have appeared on the sides of 80 taxis, ited, along with the entire collection of (complete with views of a virtual Lac In recognition of the London venue, has held an exhibition of this size and at Theexhibitionisfreetoenter,andisopen on the walls of 100 tube stations and in watches created in honour of its 175th Léman).Otherzonesincludealibrary,a the company has produced a unique, thislevel. from 9am — 7pm today and tomorrow bus shelters from Ealing in the west to anniversary last year. This includes the museum, a rare handicrafts gallery and yellow-gold pocket watch named the “The objective [of the exhibition] has (Saturday)andfrom10am—4pmSunday. Eppingintheeast,aswellaseverywhere Grandmaster Chime, a double-faced, an “immersion room” containing an Tudor Rose. The watch is decorated never been to sell watches — we can do Nobookingrequired. Watchmakers face a bumpy ride after boom

Continuedfrompage1 strong currency for years, you are used by flying to Paris instead of buying at to competition, so you build sufficient home, compared with a saving of 26 per flexibility into your structures to com- centlastyear.AsofMarchthisyear,lux- pensate. LVMH, for example, knows ury watches specifically were on aver- how to take advantage of the situation age 33 per cent cheaper in France than by having contracts in euros for things inChina,against21percentlastyear. such as leather watch straps, bracelets Executives have alluded to the andsoon.” uncomfortable impact these pricing Therearebrightspotstobefound.Mr shifts could have on the minds — and Cox of Kepler Cheuvreux points to a wallets—ofhigh-net-worthconsumers. tough trading year, but notes that “Ofcourse,VIPsarealwaysconcerned demand dynamics should improve as if we consider a price decrease, because new prices come into effect and com- you damage their assets,” Wilhelm parison becomes easier,now that a year Schmid A Lange & Söhne’s chief execu- has passed since the Occupy Hong Kong tive,saidearlierthisyear. movement — and impact on the wider But many brands do not have much market—began. choice,followingtheJanuarydecisionof To that end, Richemont has said that theSwissNationalBanktoliftthecapon retailer orders had improved in May to the Swiss franc in relation to the euro, generate flat sales at constant exchange leadingtoitssharpappreciation. rates and the company is looking to the “Most Swiss watch companies have a future “positively”. A slashing of hefty currency mismatch between their cost government tariffs set into play last and revenue base,” explains Thomas week in China should also encourage Chauvet, a Citi analyst. “The move by furtherdomesticspending. the Swiss National Bank prompted the And after enduring months of hype price rises in an attempt by watchmak- surrounding the launch of the Apple ers to protect margins and prevent the Watch and questions on its impact on developmentofparallelmarkets.” the traditional watch market, the old Richemont, which has 8,700 employ- guardarestrikingback. ees,saysmovingproductionoutofSwit- Swatch is launching a model that can zerland is not an option. It says it is make mobile payments this summer, implementing belt-tightening measures giving Apple more low-price competi- and top executives have taken a pay cut tion. Richemont has unveiled so-called to help them negotiate salary readjust- ‘intelligent’ watch straps that can track mentswithotherstaff. stepsandreademails,attachedtoMont- “We’ve got to get on with life,”said Mr blanctimepieces. AndTagHeuerhasannouncedapart- nershipwithGoogleandAndroidtopro- Jean-Claude Biver duce a smartwatch, launching this of Tag Heuer says that countries with autumn, which it claims will have 40 strong currencies hours of battery life, compared with 18 are able to turn hoursfortheAppleWatch. things around As lower-priced Swiss watch exports continue to outshine those at the higher Rupert. “We survived it before and I end of the pricing spectrum, these for- think we’ll survive it again. Switzerland ayscouldofferalonger-termfilliptothe isstillawonderfulplacetodobusiness.” industry. Mr Biver told the Financial Jean-Claude Biver, chief executive of Times this year that he thought smart- Tag Heuer and Hublot as well as presi- watches could ultimately help by dent of the LVMH watch division, encouraging young people to wear stresses that the past has shown that watches,whichtheydonotdotoday. countries with strong currencies are “If they make young people start to abletoturnthingsaround. wear watches again, there is more “Did the strength of the Deutschmark chancethattheywillwanttobuyamore after world war two stop the Germans expensivetimepiecelateron,”hesaid. from selling cars and machinery?” “People will appreciate even more he asked journalists earlier this year. that haute horlogerie is designed to sur- “When you have been used to a viveforgenerations.”

Contributors Camilla Apcar Freelance journalists Researcher, How To Spend It Linda Anderson Simon de Burton Commissioning editor Contributing editor, How to Spend It Steven Bird Andrea Felsted Designer Senior retail correspondent Graham Parrish Simoney Kyriakou Graphic artist News editor, Financial Adviser Andy Mears Elizabeth Paton Picture Editor Business reporter For advertising details, contact: Gill Plimmer Charlotte Williamson, +44 (0)20 7873 Reporter 4038, [email protected], or your usual FT representative. Giulia Segreti Rome reporter All FT Reports are available on FT.com at ft.com/reports Claire Adler, Elisa Anniss, Anthony DeMarco, Jessica Diamond, Rachel Editorial content in this report is Felder, Liza Foreman, Rachel Garrahan, produced by the FT. Our advertisers have Hettie Judah, Ming Liu, Sarah Murray, no influence over or prior sight of the Robin Swithinbank, Syl Tang articles. 4 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery Brands Brand goes back to school to find first-class clients

That group is Richemont, which Education announced annual results last month. NetincomefortheyeartoMarch31was Baume & Mercier is hoping €1.33bn, down 35 per cent on the year, to attract a younger inlinewithexpectationsafterthegroup generation of buyers, issued a profit warning in April. Sales wereup4percentto€10bn. says Robin Swithinbank Baume & Mercier is the entry-level brand in the group’s portfolio of watch In April, luxury Swiss watch brand companies, and the hope is that rela- Baume & Mercier announced it would tionships made with young consumers be the “celebratory partner” of London will lead to purchases from the group’s Business School for the graduating class top-end luxury brands (which include of2015. Cartier, IWC, Jaeger-LeCoultre and Thedealisthelatestinaseriesofpart- Vacheron Constantin), as the purchas- nerships between the brand and elite ing power of high-achieving students internationalacademicinstitutionsthat increases. aredesignedtohelpitgaintractionwith Lastyear,Baume&Mercierranapilot a younger generation of watch buyers, project with Ecole Hôtelière de Fewer than 1,000 Shelby Cobras were built during the original 1960s production run, but they were among the most successful sports cars of their day particularly those with high-flying Lausanne, the hotel management careerprospects. school. The partnership began after the “Baume & Mercier is an initiation school’sstudentshadlobbiedforgreater brand,” says Alain Zimmermann, the inputfromluxurybusinesses. company’s chief executive. “And we’ve Matthew Crudgington, EHL’s head of Swiss timing and American got to reach young clients. Over the past partnerships, says: “Students realise 10 years, we’ve missed being connected that the real-life insight from our part- to these upcoming clients and needed a nersiswhatsticksinthemind.” place to meet them. The answer is According to Mr Crudgington, brands schools.” have more to gain from partnering with racing make strong contenders The relationship with LBS is the ninth schools than simply raising awareness established by Baume & Mercier as part oftheirbusinesses. of a global strategy. It has already part- “Although the school is focused on neredwithinstitutionssuchastheHong hospitality, there’s a lot of attraction Partnership A tie-up with the Shelby Cobra car moves up a gear, writes Simon de Burton KongUniversityofScienceandTechnol- from other industries that want stu- ogy, the American University in Dubai dents they can train to work in their he business benefits to be Furthermore, the only other time the CobraDaytonastravelledtoEuropeand performance Mustang will go on sale in andtheUniversityofBologna. businesses,”hesays. had from watch brands and watchmaker has involved itself with madeShelbythefirst(andstilltheonly) Europe and will also become available “We wanted to tie this partnership “We’re seeing more and more interest car marques teaming up to cars was in 1979, when one of its Riviera American carmaker to win the prestig- in UK-ready, right-hand-drive form, into our celebration campaign, which [in our students] from luxury brands, target buyers with a mutual watches was strapped to the road wheel ious World Manufacturers’ GT Champi- which is partly what attracted Shelby to we launched last year,” says Mr Zim- andparticularlyfromwatchmaking.” T appreciation for high-end of a BMW M1 during the Le Mans 24- onship, which had previously been the the offer of a tie-up with Baume & Mer- mermann. Mr Zimmermann has been quick to automobiles and haute horlogerie are hourracetodemonstrateitsrobustness. domain of marques such as Ferrari and cier. “One of the first successes you cele- use the reciprocal nature of his partner- wellknown. But while the name Shelby American Aston Martin. And it is this year’s 50th Gary Patterson, Shelby American’s brate in life is graduation. It’s very shipstohisadvantage. Over the decades, such relationships might not mean much to many people, anniversary of that victory that pro- vice-president of international sales, important for us to communicate with At the Solvay Brussels School of Eco- have resulted in longstanding partner- its most famous product, the Shelby vided the catalyst for Baume & Mercier says: “We are aware that Shelby Ameri- potential customers at the right nomics and Management, for example, ships between Breitling and Bentley, Cobra, has achieved almost mythical to jump on to the car/watch bandwagon can is best known in the US, and this moment.Graduationisperfect.” he initiated what he describes as a busi- Jaeger-LeCoultre and Aston Martin, status since it was first produced more withShelbyAmericanasapartner. year’s globalisation of the latest Mus- At each of its partner institutions, IWC and Mercedes-AMG, Parmigiani than50yearsago. “About a year ago,” explains Mr Zim- tang model means we need to get our Baume & Mercier awards top students andBugattiand—celebratingtheir30th The late Carroll Shelby was a Le mermann, “we worked with the photo- brandknowntoawideraudience. withspeciallyengravedwatchesatcere- Baume & Mercier’s Alain Zimmermann anniversary together this year — TAG Mans-winning Texan racing driver, but grapher Peter Lindbergh to produce a “So the fact that Baume & Mercier moniesthatMrZimmermanndescribes sees graduation HeuerandMcLaren. a heart problem ended his competition marketing campaign based on our ‘Life already has a well established com- as“veryemotional”. as the perfect Butforwatchhousesthathavenotyet career in 1959 at the age of 36. He went isaboutmoments’strapline. munications strategy in Europe and the But the partnerships are intended to moment to found a motoring partner, there is a ontoputhisloveofcarstousebysetting “One of Peter’sphotos shows a man in rest of the world was certainly crucial in be more than sponsorship deals that communicate problem: the pool of high-end carmak- up a performance driving school and a classic sports car, and it was such a our decision to enter into the partner- seize on a moment. “I don’t want to be a ers offering the right “fit” is decidedly founding the tuning house Shelby powerful image that we decided to ship.” sponsor,Iwanttobeapartner,”hesays. ness game, in which students were small, and most of the appropriate ones American. explore the idea of matching the brand The first fruits of the tie-up are about “Wedidn’t just want to come and be a invited to submit ideas about where havebeentaken. In 1962, Shelby American began with a car — and the one that seemed to to reach stores in the form of two Cape- fireworkonthelastday.Wearecreating Baume&Merciershouldbein20years. Which is why Alain Zimmermann, importing British-built AC Ace road- fitbestwastheShelbyCobra. land Shelby Cobra chronographs, one touch points along the student’slife and “We had 150 answers,” he says. “The chief executive of the Richemont- sters into the US and souping them up “We approached Shelby American, being a £3,000 model in steel — limited will take part in events where we lend submissions were so inspiring. It was owned Baume & Mercier brand, acted withlargecapacityV8Fordengines. discovered that this year was the 50th to 1,965 pieces in recognition of the ourexpertiseandinsight.” extremely reassuring to see that in this fastwhenhediscoveredthatonedis- Fewer than 1,000 Shelby anniversary of the Cobra’s historic GT championship-winningyear. Mr Zimmermann says his brand will time of connectivity, there is still space tinguished automotive name Cobras were built during Championshipwinandrealiseditrepre- Cobra-inspired styling cues include a be involved in between three and seven in the minds of young people for tradi- still lacked a watch partner the original, five-year sented a perfect opportunity to estab- “snake’s head” counterweight on the events a year at each of the partner tionalwatchmaking.” — albeit a name that productionrun,butthe lishapartnership. secondhand,adialinShelby’ssignature schools, ranging from workshops and Mr Zimmermann stresses that the really only resonates model proved success- “It is not, however, a licensing deal. guardsman blue and sub-dials based on businesslecturestocelebratoryevents. primary benefit of these partnerships is with sports car ful both as a high-per- We don’t need Shelby to sell our the car’s instrument panel. The sap- LBS’s Student Association believes the opportunity to link perceptions of buffs. formance vehicle for watches, but we do believe that we can phire crystal case back, meanwhile, is that Baume & Mercier’s involvement the brand with a landmark moment in Indeed, the thewidermarketand enjoy a mutually beneficial partnership engraved with a facsimile of Carroll willopendoorsforitsmembers. an individual’s life. “Suddenly, we are company Mr Zim- as a racing car, overanextendedperiodoftime.” Shelby’ssignature. Christina Brigati, the association’s the partner of some of life’s most emo- mermann chose, achieving a top speed Nowadays, building and selling so- Amoreexclusiveversionofthewatch social affairs officer, who brokered the tional events,” he says. “Can I measure Shelby American, (in its closed Daytona called “continuation” Cobras for comes in red gold, features a sophisti- deal, says: “London Business School’s this? Definitely not. But will I benefit is an almost exclu- Coupéform)ofalmost upwards of $100,000 apiece represents cated flyback chronograph movement traditional recruitment sectors are con- fromit? sively US operation 190mph. only a tiny part of Shelby American’s andislimitedto98piecesinrecognition sulting and banking, but there’s been a “When I see the response on the spot and does not cur- In 1965, a team of business, which is largely concerned of Carroll Shelby’s famous racing growinginterestinrecentyearsinretail, at the events I attend — not just from rently have a com- with upgrading the popular Ford Mus- number. It costs £13,300. With a 1962 andspecificallyinluxury. students but also family members and mercial presence in The Capeland Shelby tangsportscar. Shelby competition Cobra having sold “The partnership gives students an alumni — I see that in their minds our Baume & Mercier’s Cobra is designed to Up until now, these have been for almost $2m in the US lastmonth, opportunity to learn more about the brandstandsforsomethingpositive. key markets of Europe look like the car’s available only in American specifica- that price seems unlikely to cause the industry, not just about Baume & Mer- “It means that for generation after andAsia. instrument panel tion. This year,however,the latest high- averageCobraownertorecoil. cier,butaboutthegroupbehindit.” generationwewillbeclosetopeople.” The terminator turns his hand, and muscle, to timepieces

ger’srelationshipwithAudemarsPiguet Magnum, expects to appoint a Swiss The designs are bold. In the Hero col- Product launch endedin2011.) manufacturing partner by mid-July. lectionofmovie-inspiredwatches,there “I wanted watches that could be mili- Prices for AS watches are due to start is a piece with a crown protector made Inspired by his movie career, tary-style to reflect my movies, elegant from$565andgoupto$2,790. in the shape of a grenade pin, recalling Arnold Schwarzenegger has and sporty — you can find plenty of Mr Schwarzenegger was involved in the1980sviolentthrillerCommando. designed a range of ‘elegant brands with one or two of those things, the design and branding processes. “I Another has a red piece of glass butnotallthree,”headds. sat down with the team from Magnum over a section of the dial, much like the and sporty’ watches, The company behind the AS brand is early on and explained my vision,” he eye of the cyborg Mr Schwarzenegger says Robin Swithinbank Magnum Indústria da Amazonia, a Bra- says. “Magnum was able to deliver eve- played in the 30-year-old Terminator zilian manufacturer of mass-market rything I wanted — an affordable, dura- franchise, which returns with a fifth products that is virtually unknown out- blewatchthatlooksballsy.” instalment this summer. Mr Graziano After a career spanning almost five dec- sideSouthAmerica. At Baselworld, more than 100 refer- believes AS watches — which will be ades across professional bodybuilding, The company says it owns the largest ences were unveiled, prompting some 55mm in diameter — will appeal to Hollywood and US politics, Arnold business park in Latin America, which critics to suggest the collection lacked men between 20 and 55 who are “self- Schwarzeneggerintendstomuscleinon produces goods ranging from calcula- direction. Despite this, there will be 105 confident, entrepreneurs, natural thewatchindustry. tors to lighters, as well as 5m watches a models in the range, broken down into leaders”. The former governor of California year. These are allocated to dial names three lines, to reflect Mr Schwarzeneg- In year one, the target is to distribute announced plans at the Baselworld such as Champion, which according to ger’s time in bodybuilding, movies and thebrandin20territories,includingthe watchfairinMarchforawatchbrandin the company has 4,000 models in its politics. US and UK. “We intend to implement a hisname.Thefirstproductsbearingthe inventory and is Brazil’s biggest-selling “Arnold knows exactly what he wants 360-degreemarketingapproachandwe AS logo are due to arrive on the global watchbrand. have a $4m, year-one marketing marketintherun-uptoChristmas. MagnumisalsotheBraziliandistribu- budget,” says Mr Graziano. “Arnold Mr Schwarzenegger is known in torforthemorefamiliarBulova,Citizen Schwarzenegger will be our brand watchmaking circles as a collector, and and Frédérique Constant names and ‘I wanted [to create} an ambassador, which will give us our has sported pieces by Audemars Piguet reportsannualturnoverof$125m. affordable, durable watch uniquesellingpoint.” and Panerai in his films. Last year, he Despite the Brazilian provenance of UK retailers have so far been reluc- appeared in The Expendables 3 with an the brand, Magnum’s intention is to that looks ballsy ’ tant to invest in the brand, having only oversized U-boat on his wrist. But this make the watches in Switzerland, using seen prototypes. Privately, some have marks the first time the youngest win- a mix of Swiss quartz and mechanical and likes,” says Mr Graziano, who co- questioned the price point, with most of ner of Mr Olympia and movie action movements. One of Mr Schwarzeneg- founded Magnum in 1990. “He gave us the collection set to sit between £500 herohasputhisnametoabrand. ger’srequirements was that his watches ideas and we came up with some and £750, a notoriously tricky bracket, “I wanted to develop watches that I should be Swiss-made, posing a chal- designs. Once we presented the designs, and one made more complicated by the love, that are also affordable — most of lenge for Magnum, which is working therewerecertainthingshefeltstrongly arrivalofAppleWatch. the watches I like are not considered with Switzerland for the first time on about and we made the changes he Mr Graziano says: “We previewed the affordable,” says Mr Schwarzenegger. this project. The company’s Swiss wanted. collection during Baselworld and it was (The Audemars Piguet Royal Oak Off- design partner is Studio Divine, which “The logo, for example — initially he very well received. We have many shore Chronograph Arnold Schwarzen- has worked with TAG Heuer,Audemars didn’t like what we came up with, so he potential distribution candidates in egger Legacy of 2011 retailed for PiguetandSevenFriday. guided us and we changed it. There is so most European countries. We’re in the $40,200 on launch. Mr Schwarzeneg- Robert Graziano, the president of Schwarzenegger: ‘Most of the watches I like are not considered affordable’ muchofArnoldinourdesigns.” processofchoosingtherightpartners.” Friday 5 June 2015 ★ FINANCIALTIMES 5 6 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery Technology Sophisticated clients continue A leap into the future Every second counts to search for handcrafted luxury

away from the digital era. Montblanc looking for. “In our industry you often Montblanc has an iPhone app, as well as a presence hearsuchsentencesas‘Itwillneversell’ on everything from YouTube and Face- or ‘The client will not understand’. We Adapting products for the booktoPinterestandTwitter. believethatwasmaybethecase15years digital age proves a creative In fact, Mr Lambert sees digital infor- ago, but this has changed. For me that’s strategy, says Sarah Murray mation as prompting a rise in buyers’ wherethere’sarealdisruption.” understandingofcomplexproductsand Meanwhile,thecompanyhasalsohad anincreasedlevelofinterestinthetech- to decide how to respond to the advent Managing a 100-year-old company nical aspects of the company’s watches ofproductssuchastheAppleWatchand known for handcrafted fountain pens, andpens. otherdigitalwearables. watches and other luxury goods is no One example is the Orbis Terrarum, The challenge that digital technology easy task when the tablet is the new which launched this year and intro- presents for any company in the busi- writing instrument and watches have duced a new complication with its ness of haute horlogerie lies in the fact becomeminicomputers. multi-layered dial of sapphire crystal that innovations materialise as rapidly Montblanc’sresponse has not been to showing the continents as if viewed as the rate at which consumers want to moveintodigitaldevicesbuttoadaptits from the North Pole, encircled by the upgradetonewproducts. products to meet demand for techno- names of the 24 cities representing the “One of the key fundamentals of lux- logicalinnovation. world’stimezones. ury is its value and its long-lasting Ofcourse,inonesense,whatthecom- Undercutoutsofthecontinents,adisc nature,”saysMrLambert. pany offers is an experience that is still shows day and night, while the 24 time “And when you go to technology, the firmlyrootedinthepast.“Wewantany- zones rotate with the movement’s firstthingpeopletellyouisthatevery18 one who comes through the door at mechanism causing the continents to months, its value halves. So you see two Montblanc to have an experience simi- change colour as day turns to night curves that are moving in the opposite lar to visiting your tailor 100 years ago,” and making it possible to tell what direction.” says Jérôme Lambert, the company’s timeofdayornightitisanywhereinthe For the company, the solution was chiefexecutive. world. not to move into the realm of digital However, Mr Lambert, who before Mr Lambert believes that this kind of devices. joining Montblanc was chief executive sophistication is something buyers are Instead, Montblanc has developed of Jaeger-LeCoultre, the Swiss luxury new versions of traditional products. watchmaker, believes that the digital For example, its StarWalker pen allows era is creating opportunities for the users to switch between writing on company. paperandwritingontouchscreens. He argues that instant access to infor- And instead of developing a digital mation and social media is creating watch, the company turned to the strap more sophisticated customers, who still as the vehicle for its first foray into value the personal experience of buying wearable technology. The e-Strap is an Hoptroff will be the first to insert a leap second into its quartz and atomic models luxurygoodsinastore. interchangeable watch strap that can “You might have thought that with a connecttocertainsmartphones. At the end of this month watchmaker Hoptroff will take a leap Hoptroff. “We added the capability in tandem with our good website and a few guys you could Mr Lambert welcomes the advance of into the future. automatic daylight saving adjustment, but this is the first organise the market for your company. technology and the challenges it brings On June 30 at 23.59.59 their watches — both quartz and opportunity to see it happen for real.” But it’s the opposite,”says Mr Lambert. to companies, such as Montblanc, to up atomic — will be the first to insert a leap second at the The leap second’s adjustment information will be sent to “The amount of information means cli- theirgame. correct moment. the watch in advance via a Bluetooth connection from the ents’attentiontodetailisgrowing.” “Embracing doesn’t mean fusion,”he “The earth’s spin speeds up and slows down erratically, so owner’s mobile phone. And, while maintaining a highly per- says. “I find that where there is a new every few years, astronomers have to add a leap second to “You only need to have connected to the watch some time sonalised service in its stores remains a Jérôme Lambert: company offers an paradigm, there is an opportunity for time to keep it correct,” explains managing director Richard in the past few months,” adds Mr Hoptroff. priority, the company has not shied experience rooted in the past creativity.” Introducing the smart strap If the Apple Watch fails then the Watch this year. Although also owned Connected devices by Richemont, the brand has chosen a Brands are innovating different technology partner from smartwatch will fail and developing devices Montblanc. The success of these offerings may with different dependonwhoiswillingtocreateapps. At the Apple Watch launch, brands mindthatSmartwatchGroup’sresearch applications to take on such as Starwood and BMW rushed to Review shows that the 89 companies in the mix the Apple Watch, offer iOS apps that unlock guest rooms beforeApplejoinedthefraymanagedto andcars. Robin Swithinbank discovers sell 6.8m watches between them in reports Syl Tang Sports companies, such as ESPN, plan he would rather have an 2014,thatisaseriousshotinthearm. to zip sports scores on to the wrist and orange than an Apple Watch However, Apple probably will not ven before the Apple Watch financialservicesgroupssuchasCitiwill have to do it all alone. Before the year is went on sale on April 24th, provide account balances and usage out, watchmaking icons Swatch and the company had sold more notifications. These are peculiar times for watch TAG Heuer are due to plug in too. TAG’s than 1m pieces during the However, analysts believe that bat- industry critics. For years, the job has solution comes with backing from E firsthoursofpre-ordering. terylifewillbethedecidingfactor. been all about Switzerland — with hon- Google and Intel, which should mean it While these analysts’ figures came as Jon Cox of Kepler Cheuvreux, the ourable mentions for Germany, Japan istakenseriously. no surprise to technophiles, the watch financial services company, says: “We and even the UK — but of late the focus Butifsmartwatchesaregoingtocatch communityhasbeenlessenthusiastic. can’t have a computer on our wrist has been on smartwatches, which are on,itwillbedowntotheyoungergener- ManyattendeesatSIHH(SalonInter- because of the power issue. For the time notSwissatall. ation. A fresh-faced “Appleyte”, in the national de la Haute Horlogerie) in Jan- being the Apple Watch is an upmarket And when I say all about smart- company’s Regent Street store in Lon- uary — Richemont’s annual conference fitness band and only has 18 hours of watches, of course I mean the Apple don, told me she had never worn a — had dismissed the impact of a smart power, so you have to take it off at Watch.Smartwatcheshavebeenabuzz- watchbefore,becauseitwasa“solepur- watch. night. That makes it difficult to monitor ing gnat in the ear for years, technology pose device”.A watch that only tells the However,atleastoneSIHHbrandwas fitness.” thatnoseriouswatchpersonwouldever time is not enough any more — not least prepared for the changing tide: Mont- Frederique Constant and its sister give the time of day to. But Apple is because now there is a watch that can blanc. On display at SIHH and currently brand Alpina are hoping to address bat- changingtheconversation. alsopayforyourcoffeeandmakevoice- beingpromotedisa“smart”watchstrap tery life with their entry into the smart This is despite the fact that many crit- activatedphonecalls. the company has introduced within its market. In February, they announced a ics will tell you the Apple Watch is not Apple lent me one of its watches at its lineofTimeWalkerwatches. partnership with Fullpower Technolo- really a watch at all. Imagined in Silicon launch and it is astonishingly good at Alexander Schmiedt, global manag- gies, an intellectual property and tech- Valley and made in east Asia, it is a very mostofwhatitdoesandabrilliantpiece ing director of watches at the company, nologylicensingcompany. clever computer, which, among many of engineering. The notification centre says: “Montblanc believes each item Fullpower has formed Manufacture other things, sits on the wrist and tells isaneatsmartphonebypassthatIfound should be a lifetime companion; that Modules Technologies (MMT), a joint thetime. less disruptive than I had expected and you will love it even more in 30 or 40 venturewithUnionHorlogereHoldings, Comparing its chips and pixels with it made taking phone calls while tying years, focusing on the craftsmanship andhaslaunchedtheMotionXHorolog- the balance springs and escapement myshoelacesadoddle.Eventhebattery andquality. ical Smartwatch Open Platform for the wheels of a conventional timepiece is life was all right — I managed three days “But . . . the smart technology life Swisswatchindustry. likecomparingappleswithoranges. on a single charge on one occasion and cycleistheexactopposite.In12months, Frederique Hublot, is $10,000, you can forget the The platform puts motion tracking But it is a watch — at least the watch averagedtwo. it’s on to the next generation and in two Constant connectedwatch,becausenoonebuysa into five Constant and eight Alpina industry certainly seems to think so. yearsyoucanthrowitaway.” Horological watchthatwillbecomeobsolete. styles with a dial that displays the per- Ask IWC, Breitling, Montblanc, Bulgari, At press time, a prototype had yet to “OK, there might be a few lunatics, centage of the wearer’s fitness goal Gucci, Frédérique Constant et al why Smartwatches Smartwatch and were a buzzing be made available, but the strap, known below the Alpina butit’snotthemarket.” reached each day and the level of sleep they have made “connected” watches gnat in the ear for as the Urban Speed e-Strap, will use a Horological Of those watches priced up to attained. A connected app, accessed on this year and they will all say smart- years, but Apple Montblanc app to work with select Smartwatch SFr2,000 ($2,150), the majority of an individual’s phone, allows health watchesarethenextbigthing. Watch is changing AndroidandiOSsmartphones. which are quartz, experts estimate that goalstobeset. Wewill all be wearing them before we the conversation Itwillofferadigitaldisplayof:activity 40-50percentofthese20mpieceswill “Wedon’t think that consumers want know it, says the conventional wisdom tracking; email, text and social media be“smart”withintwotothreeyears. to charge a third device in addition to —andyouhavetobeinittowinit. But the activity tracker and its hourly notifications; music and camera remote TAG, which plans to reveal a proto- their cell phone and laptop. That’s the Orwillwe?Samsungmadetheworld’s reminder to stand up drove me to control; and Find-Me functions (for typethismonth,willbegindelivery Achilles heel of the e-Strap and other first watch phone in 1999, though few despair. The maps are flawed and I can- locatingacellphone). ofitsfirstsmartwatchinOctober, offerings,”saysPeterStas,chiefexec- remember that. Sony has been trying to not think why you would choose to read For 2015, the e-Strap, which charges pricedatapproximately$1,200. utiveofConstantandAlpina. recapture its Walkman glory days with an email on a screen not much bigger every five days via a micro-USB cable It will be followed next April “This watch stays charged for smartwatches for years, with a support- than your thumb, digital crown or no. and comes with two years’ of app by a second model with dif- two years. Activity tracking on ing cast that includes fellow tech groups And you cannot tell the time without updates, will be available to buyers of ferent applications. While the wrist is much more accu- LG and Pebble, but it has made almost raisingyourarmtoyourface—whichin new TimeWalker watches on five mod- fewdetailswereavailable, rate than on a phone. That’s noimpressiononthemarket. manysituationsistotallyinappropriate. elspricedfrom€3,000to€4,500. TAG has indicated that much more the direction Admittedly, sales of smartwatches What is most troubling, though, is the Although the company would not the watch may offer we’re interested in rose 82 per cent last year, to $1.29bn, idea that someone might waive an confirm a release date, it suggested that functions connected to going.” according to data gathered by Smart- entry-level Swiss mechanical at say thestrapwouldbeastandaloneoffering The strap its marketing and fan Fullpower is offering watch Group. But that figure is eclipsed £500 for a piece of technology that will in2016ata€300-€400pricepoint. will offer a base. TAG sponsors the the MMT platform to by global smartphone sales, which beobsoletebyteatime. Another mid-priced luxury watch- Monaco Grand Prix, For- other watchmakers and researchagencyGfKsayshit$381bnlast Hamilton, Tissot and Oris will bring maker that believes watch lovers might digital mulaEandtheIndy500. hopes to make 100,000 pieces year. We are sold on smartphones, but out watches in the next few years, but wantsomepieceofthetechnologicalpie display of A watch brand’s financial in2015. thejuryisstilloutonsmartwatches. these will not make those they are mak- is TAG Heuer, which announced a part- ability to spend on research Ultimately, the success of the SoalothangsontheAppleWatch.Ifit ing today redundant. And that is nership with Google and Intel in mid- activity and development or partner smartwatch (and strap) will fails, the smartwatch fails. Slice Intelli- because these brands are not currently March. tracking, with a technology group will be dependonconsumerdemand. gence estimated that 957,000 Ameri- considering how to integrate a camera Jean-Claude Biver, chief executive of instrumental in what consumers However,MrSchmiedtisconfident cans pre-ordered Apple Watches on into the next generation of their prod- TAG Heuer, says: “If you’re a luxury email, text decidetopurchase. that the high-end watch market will launch day in April, dwarfing the uct,ormakemapswork. brand with an entry price that is high and social Early last month, IWC Schaff- notbeaffected. 720,000 Android Wear watches sold in And for that reason, I will take an but still reachable, say $1,200-$1,500 — hausen announced plans to release “Nobody buys a watch at this level theUSfor2014,accordingtoCanalys. orangeoveranAppleanyday. at that price level you should consider media the IWC Connect, another strap- [$5,000-plus] just to know what the Analysts think Apple will sell any- thetechnology.” notifications driven offering, which will initially be time is. So in this way the smartwatch where between 10m-45m watches The writer is a journalist and watch critic “Where the entry price, such as for available alongside the IWC Big Pilot’s willneveraffectthat.” before the end of the year. Bearing in andeditorofCalibrewatchmagazine Friday 5 June 2015 ★ FINANCIALTIMES 7

Watches & Jewellery

Bulgari Diagono Magnesium Bulgari’s ‘intelligent’ luxury watch Wrist Vault The reaction of the traditional watch the paired devices are close together. Sapphire crystal industry to the arrival of the Apple In the event of the phone being lost Watch and other forms of connected or stolen, any data — which will be wristwear has been decidedly varied. stored on a “cloud” inside a Swiss But perhaps the most unusual military bunker — can be instantly counter to the perceived threat that destroyed, but later retrieved by the smartwatches pose to clockwork rightful owner using an encrypted Ceramic bezel comes from Bulgari’s Diagono back-up in the watch. Magnesium Wrist Vault, which claims The Diagono Magnesium timepiece Screw to be “the first intelligent luxury selected as the basis for the device is watch”. already on sale at a relatively modest Still a concept, but — according to a £3,120 in its standard form. The piece Bulgari insider — certain to become has a 41mm steel case and is equipped Motorlac finish dial reality, the Wrist Vault has been with a centre made from a combination Ceramic insert developed with Swiss digital secure of lightweight magnesium and storage specialist WISeKey and uses a polyether ether ketone and has a bezel cryptographic chip inside the case to made from scratch-resistant ceramic. Peek insert hold personal data. The striking, grained finish of the Magnesium case An invisible antenna, also mounted case middle and dial is created using a within the watch, can then connect material called Motorlac. This is more with a smartphone using near field commonly associated with high- technology (NFT) to transmit a “digital performance engine building, where it certificate” securely from the Bulgari is used as a friction-reducing coating Vault application previously capable of withstanding high downloaded on to an iOS or Android temperatures and extremes of Date disc smartphone. Only the owner of the expansion and contraction. watch has access to the data, which Motorlac is available in a range of Bulgari says will be stored with distinctive colours, including the “banking-level” security. copper brown, anthracite grey and Lugs peek insert The idea is that the watch could be deep-blue hues that make the Bulgari Back cover used for everything, from storing Diagono Magnesium one of the most codes to transmitting payments and unusual-looking and attractive even remotely opening car doors. NFT watches to have emerged from this is said to be a very secure form of data year’s Baselworld show. transfer because it works only when Simon de Burton FT graphic Source: Bulgari ‘I have a piece of gold in my hands’

currentlyourThreeGoldBridgesisonly Interview availableinhautehorlogeriewiththe Antonio Calce, Sowind tourbillon. “Weareworkingonmodelswith chief executive, differentpricesegmentsthatinclude will promote the othercomplicationstogiveclientsthe opportunitytowearaGirard-Perregaux brand’s history, says watchwiththaticonicdesignelement.” Anthony DeMarco Amongthemodelsthatareunder developmentaretwo-goldandone-gold bridgetimepieces,hesays.Thebrand onsiderablepersonnel hasalreadyintroducedapiecefromthe movesamongwatchand 1966collectionmadeinsteel,insteadof jewellerycompanieswerein gold. evidenceatBaselworld MrCalceisenthusiasticabout C recently,butnonewasas workingwithAteliersBautte,alittle- radicalasthechangesatSowindGroup. known,high-endcasemanufacturer Fromtoptobottom,therewerenew thatSowindGroupacquiredin2007 facesintheexhibitionboothsforthe andusestocreateGirard-Perregaux group’stwoluxurybrands—Girard- cases.MrCalceconsidersthe PerregauxandJeanRichard. manufacturerapartofthebrand’s AntonioCalce,theformerchief heritagethatheadmiresandwants executiveofCorum,anindependent otherstoknowabout. Swissluxurywatchbrand,was “Iamapersondedicatedtothe appointedSowindchiefexecutivein productandtocraftsmanship,”hesays. January,replacingMicheleSofisti,who “Iamtotallycommittedtoundertake hadheldthepositionfortheprevious thisnewchallengeforacompanythat threeyears. deservesdeeprespectinthewatch Kering,theFrenchluxuryand industry.” lifestyleholdingcompany,ownsa50.1 CommunicationisalargepartofMr percentstakeinSowind,withSowind Calce’sstrategyforbothbrands.For founderLuigiMacalusoandhisfamily Girard-Perregaux,heplanstousethe owningtheremainingcapital.The brand’smuseuminLaChaux-de-Fonds, companydoesnotdiscloseseparate Switzerland,whichhesaysis salesandprofitfiguresforSowind,but underutilised,asawaytoexplainthe saysthatwatchesmadeup4percentof company’shistory.Thiswillinclude itsluxuryrevenuein2014. travellingexhibitions. MrCalce(picturedbelow)hastwovery ForJeanRichard,thecurrentfocusis differentbrandsunderhischarge. onthepopularTerrascopecollection.At Girard-Perregaux,whichdatesfrom Baselworld,thebrandlauncheda 1791,operatesontheloftiestlevelsof TerrascopeGMTandanall-black hautehorlogerie,producinghigh-end carbonTerrascope. complicationssuchasitsThreeGold MrCalcehasbeeninthewatch BridgeTourbillion.In2013,thebrand businessfor21years.Mostofthattime wasawardedtheAiguilled’Orat hasbeenspentwithRichemontGroup’s theGenevaWatchmakingGrand OfficinePaneraiandPiagetbrands Prixforitsgroundbreaking invarioushigh-level ConstantEscapement positions,andmost LMtimepiece. recentlyhewasat JeanRichardisa Corum. lifestylewatch Nowthatheis brandthatbuiltits onceagainworking identityaround forabiggroupone theslogan ofthethingshe “Philosophyof appreciatesisthe Life”.Ithas opportunityfor partnershipswith synergy. For peopleandgroupsin example,Sowind avarietyoffields, sharesdistributionin rangingfromtightrope theUSwithluxurywatch walkerNikWallenda,chef brandUlysseNardin,recently LucaManfeandtheArsenal acquiredbyKering. footballteam. MrCalcesaysthattherewillbe MrCalcesaysthathisprimaryfocusis furtheropportunitiesforthiskindof onGirard-Perregauxwiththegoalof collaboration,althoughherefusesto enhancingitsvalue.“Ihavealong-term elaborate. visionandashortdeadlinetodeliver,” Hebelievesthatthemainchallenge hesays. facingtheSwisswatchindustryliesin “Ihaveapieceofgoldinmyhands communicatingtheSwisspedigree. andIneedtocapitaliseonitshistory “Itisimportanttoletpeopleknow andheritage.Everybodyhastoknow thatwhenyoubuyaGirard-Perregaux, whatGirard-Perregauxis.Thisismy Swiss-manufacturedtimepiece,you maingoalforthenextfewyears.” buyapieceofartthatisdurable.Itisnot MrCalceisdevelopingwhathe atrend.Itistheacquisitionof describesas“productfamilies”,watches craftsmanship,ofanexclusiveproduct.” attieredpricinglevelsbasedonGirard- Thisextendstosmartwatchesand Perregaux’shigh-endmodels.He other“wearables”,whichsomeseeasa believesthattoomuchproductispriced threattothewatchindustry.Unlike atthehighend. severalSwisswatchcompanies,Mr “Wewillpursuethedevelopmentof Calcehasnoplanstointroducesucha manufacturedhigh-endproducts,”he deviceforeitherbrand. says.“However,weneedtodevelop “Wehaveadifferentvisionofthe familiesaroundexistingcollections timepiece.When[ourclients]choosea withdifferentpricesegments. Girard-Perregaux,theychoosecodesof “Wewilladaptourofferingsby eleganceandtradition.Amechanical enlargingourcollections.Forexample, watchhasaheart.” 8 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery ‘Lunch with the Queen was a true career highlight’

backto1975,whenhiscosmopolitan involvedCartierwithinAmerica. theirsuitablywealthyowners,who Interview flairwasrecognisedbyCartier’sthen- “Theassociationwithpoloreally knowwhomtocontactwhentheneed Arnaud Bamberger president,AlainDominiquePerrin,who helpedtorejuvenatethebrandinthe arisesforaspecialwristwatchorpiece Cartier UK hiredhimasexportdirectoratatime UKandrestoredsomeofitsaura,”he ofjewellery. whenthecompanywastryingtoregain says. But,saysMrBamberger,whilehis The executive chairman someofthesparkleithadenjoyedinits “IntheoldformatoftheCartier missiontopromoteCartierwas heyday50yearsbefore. InternationalDay,wehadasmanyas successful,today’sbusinessisvery planned to stay only two MrBambergertravelledtheglobein 30,000peopleattending—althoughI differentfromhowitwaswhenhe years at Cartier UK — therole,thenmovedtoNewYorkwhere mustadmit,theywerenotallpolofans. arrivedintheearly1990s. 23 years later, he is retiring, heopened15USCartierstoresineight ManycamefortheChinawhiteclub” “Weareonceagainbackinthehigh yearsbeforereturningtoParistowork [exclusivenightclub]. jewellerygameandhavereturnedtoa writes Simon de Burton asworldwideretaildirectorresponsible Nowadays,Cartiersponsorsthe positionwhereourdesignandcreativity for175boutiques.Then,atthenadirof Queen’sCupmatchesattheGuards arewhatweareknownfor. London’sluxurygoodsfirmamentwill theearly1990srecession,hewasasked PoloClubeachJune—aneventthathas “Whathasalsochangedradicallyis loseabrightstarinacoupleofmonths tomovetoLondonand“shakeupthe enabledMrBambergertocontinuea Londonitself.Ithasbecomea whenoneofitsbest-lovedfixturesisto brand”. longacquaintancewiththeQueen worldwidecentreforcaptainsof retire. “Cartierwasalreadyafamousname whichisrecordedinthenumerous industryandarealdrawforpeoplefrom ArnaudBamberger,theAnglophile intheUK,butthechallengelayinthe photographsofhimselfandHerMajesty placessuchastheMiddleEastandAsia, Frenchmanwhohasbecomesowell factthatithadbecomesomethingofa whicharespreadaroundhisBondStreet makingitoneofthemostinternational integratedintoEnglishsocietythathe sleepinggiant,”herecalls. office. citiesintheworldandoneofthetruly drivesaBentley,luncheswiththeQueen “Myjobwastoputitbackinto “IfirstmettheQueen23yearsago greatshoppingdestinations.” andshootsatBlenheimPalace,is people’smindsasthejewelleritwasin andIfeelveryhonouredtobeabletosay Butwhatdoesretirementholdfora steppingdownfromhisroleas the1920sand1930s.” thatIamprobablyoneoftheFrench Bamberger with aneffort”—andthatheappreciatesthe manwhohasspentmorethanhalfhis executivechairmanofCartierUKin HesetouttoreconnecttheCartier guyswhohasmetherthemost,”saysMr the Queen at the waytheEnglishbehave. lifeintheluxuryfastlane? August.Hehadarrived“foracoupleof namewitharistocrats,membersofhigh Bamberger,whowasawardedthe Cartier Queen’s “MyFrenchcolleaguesoftenaskme “Ishallremainashonorarychairman years”in1992. societyandanyothermoversand Légiond’honneurin2009. Cup, one of the howIhavemanagedtomeetsomany ofCartierUK,butI’mverymuch Duringhiseventual23yearsatthe shakershedeemedappropriateby “Infact,Ienjoyedoneofthemost leading polo Englishpeopleandtodevelopsomany lookingforwardtodedicatingmore helmMrBamberger,whowillbe70 associatingitwiththesortofeventshe memorabledaysofmylifethreeyears tournaments friendships—andmyfirstresponseisto timetomywifeandchildren,moretime whenheleaves,hasachievedwhathe believedhistargetaudiencemightlike agoduringRoyalAscotwhenmywife saythatImaketheefforttoletpeople My totravellingforenjoymentratherthan setouttodoinblowingthedustoffthe toattend. CarlaandIwereinvitedtoasmalllunch knowthatIreallylikethiscountry. challenge businessandmoretimetoimproving CartierbrandintheUKandreturningit TheseeventsrangedfromtheChelsea withtheQueenandPrincePhilipat “IalsolovethefactthattheEnglish mygolfhandicap,”hesays. toapositionworthyofits“kingof FlowerShowtotheGoodwoodFestival WindsorCastle.Itwasoneofthetrue canbesoself-deprecatingandknow was in “OnethingIshan’tbedoinghowever, jewellersandjewellerofkings” ofSpeed,whereCartierholdsitsannual highlightsofmycareer.” howtomakefunofthemselves.Ihave ‘awakening isleavingEngland.Imightalwaysbea sobriquet.CartiersaysthatMr StyleetLuxeconcoursd’élégance. Heattributeshissuccessful(and learnttobethatway,too.” frog,buthopefully‘lesrosbifs’will Bambergerhashelpedmorethantreble Oneofthemostsuccessfultie-ups, commerciallyimportant)integration Additionally,hisloveofshooting the sleeping continuetobenicetome,becauseIlove turnover. however,hasprovedtobewiththeelite intoEnglishsocietytothesimplefact hasearnedhimaccesstosomeof giant’ ithere.Afteralltheseyears,Ifeeltotally Hiscareerwiththecompanydates worldofpolo,whichMrBambergerfirst thathehasalwaysbeensureto“make Britain’sgreateststatelyhomes—and athome.” Manufactured, assembled and Phillips eclipses decorated — in 28.5 seconds rivals as it returns

Swatch The company is to Geneva sale building a second Sistem51 plant and may Auctions and collecting lift production of its Patek Philippe and rare robot-built watches to vintage pieces dominate 2m units a year, says the four-day spring event, Robin Swithinbank writes Simon de Burton watch has confirmed plans to double the manufacturing The Geneva watch auctions that take capacity behind its Sistem51 place in May have traditionally been watch, in a move that is dominated by luxury brands, Antiquo- S expected to increase annual rum, Christie’s and Sotheby’s. This year productionofthegroundbreakingprod- however,Phillipshasrejoinedthefray. uctto2munitsayear. Although the auction house had not Construction is under way on a sec- staged a specialist horological sale since ond plant that is due for completion in the early 2000s, it managed to eclipse spring2016,onthecompany’sBoncourt the opposition last month with a Aurel Bacs at the Phillips auction siteinnorthwestSwitzerland. SFr29.6m ($31.2m) total that almost The development is a clear indication doubledthatofitsnearestrival. dialsignedbytheretailerTiffany,itsold of Swatch’s belief in the profitability of The undoubted key to its success lay for SFr471,500, while a highly compli- its pioneering project. Sistem51 is the in the return to the rostrum of gavel- cated Louis Audemars pocket watch, only watch in the world made and swinging wunderkind Aurel Bacs, the which was presented to a Spanish count assembled entirely (bar the strap) by former Christie’sstar who left the house in 1920 by King Alphonse XIII, realised automated machines. It first went on in 2013 to set up a consultancy which SFr351,750. saleintheUKinAugustlastyear,priced has since partnered with Phillips to A perhaps more recognisable celeb- at£108. facilitateitsreturntowatchauctions. rity connection came in the form of a The plant will mirror the existing With hindsight, Phillips was always Jaeger-LeCoultre Reverso that origi- Boncourtfactory,a17,500sqfteco-facil- goingtohitthegroundrunning.MrBacs nally belonged to the celebrated US ity with 15,000 sq ft of manufacturing is considered an horological pied piper. general Douglas MacArthur and which space. A percentage of the floor space is High-end buyers and sellers tend to was engraved on the back with his ini- given over to other watchmaking activi- gravitate to him, assured by his reputa- tials. It made SFr87,500, quadruple its ties run by ETA, the Swatch Group- tion for being able to put the right estimate. owned specialist movement manufac- watches in front of the right people at Christie’s achieved the best overall turing division, that helped Swatch therightmoney. result after Phillips, grossing SFr15.4m developSistem51’sinnovativecalibre. To give his return some added pizz- and achieving a 99 per cent sale rate Although figures published by the azz, Mr Bacs made the inaugural Phil- from 314 watches offered. Typically, Swiss watch industry do not detail indi- lips sale a two-day affair, starting with a PatekPhilippepiecesdominated,witha vidual brand activity, it is widely themed auction dedicated to the Rolex 2006 Sky Moon Tourbillon — one of the believed that this year Sistem51 will Day-Date, the brand’s most prestigious brand’s most complex models and now become Switzerland’s number one model, conceived in 1955. The 60 rari- discontinued — selling to a private col- mechanicalwatchbyvolume. ties sold for a total of SFr6.1m, with the lectorforalmostSFr1.1m. In 2014, the Federation of the Swiss highest sum — a record SFr473,000 — TheChristie’ssalealsosawrecordsfor WatchIndustryreportedthatexportsof being paid for a so-called Big Kahuna a Patek ‘Nautilus’ at SFr845,000, an Swiss made mechanical watches were variation, one of only two known to up 9 per cent to 8.1m, an increase that existinplatinum. Sistem51 is in part responsible for.With But the Glamorous Day-Date sale annual production set to reach 2m by provedlittlemorethanawarm-upexer- The key to its success lay in 2017, Sistem51 could soon account for cise. The following day 164 watches the gavel-swinging almost a quarter of Switzerland’s grossed SFr23.46m and saw records mechanicalwatchexports. established for any steel wrist watch at wunderkind Aurel Bacs Such volumes are only made possible auction — SFr4.6m for a 1927 Patek by the automated system that produces Assembly line Hayekafortunethatheusedtoinvestin $448m(£274matthetime)plus$9min Philippe chronograph — and for any Audemars Piguet minute repeater from Sistem51, which was developed by one for the Swatch and revive flagging Swiss watch compa- legal fees. In 2013, it completed a $1bn Rolex at auction — SFr1.3m for an 1951 which sold for SFr605,000 and a ofSwatchGroup’ssubsidiarycompanies Sistem51 watch nies such as Omega, Longines and takeover of New York jeweller Harry “albino” Rolex Cosmograph Daytona 1930s Rolex chronograph, which specialising in machine manufacturing. (below right) Breguet. In 2007, three years before his Winston, a deal that has since helped it that once belonged to rock star Eric exceeded its presale estimate by 10 Swatch has never declared its invest- death,MrHayek’swealthwasestimated offset the negative impact of the over- Clapton. timestofetchapriceofSFr341,000. mentinthefacility,althoughin2013the at $3.2bn by Forbes, making him the valuedSwissfranc. Two other watches also broke the It was then left to Sotheby’s to round group reported a 19.5 per cent growth in world’s273rdrichestpersonatthetime. Sistem51 sales to date have not been seven-figure barrier, vindicating the off Geneva’s four-day watch auction thevalueofitsproperty,equipmentand The Sistem51 project has all the eco- made public, but it has been a critical decision of Edward Dolman, Phillips extravaganza with an offering of 326 plantrisingtoSFr2.3bn($2.46bn). nomic hallmarks of its quartz ances- success thanks to its 90-hour power chairman and chief executive, to bring lots, a sizeable 93 of which failed to find There are more than 400 machines tor. It will be expected to boost reserve and Swatch’s insistence that the house back into what is a highly buyers — resulting in a disappointing inside the existing factory, some of Swatch Group’s operating profits, it will never need maintaining — an competitivemarket. 71.5 per cent sale rate. All of the top 10 which have up to 12 modules. These are whichstoodatSFr1.75bnin2014, unheard of claim in mechanical Hesaid:“ConsideringthatthePhillips sellers were Patek Philippe pieces, with in operation for 24 hours a day,five and and give the company much- watchmaking where moving watchdepartmentwasonlylaunchedin the highlight being a collectable Refer- sometimes six days a week, across It is the only needed leverage in takeover parts are said to need cleaning November, it pays the greatest testa- ence 5207P tourbillon with perpetual three, eight-hour shifts. The production deals. and relubricating every few menttotheteamandtothestewardship calendar and leap-year indication that lineproduces4,000watchesaday. watch The watch industry is domi- years. and reputation of Aurel Bacs and [his madeSFr586,000. Swatch says that the theoretical time made and nated by a small number of pow- It may also have a significant wife] Livia Russo to have achieved so To discover if Phillips’ dominance of it takes to manufacture, assemble and erfulgroups,includingRichemont, impactonthewatchindustry. muchinsolittletime.” the market will continue, auction fol- decorate a single movement is 28.5 sec- assembled LVMH, Kering and recently China “Sistem51 is no more than a pre- ThePhillipstriumphwasahardactto lowers must wait until the flagship onds,acounter-culturaladmissioninan entirely Haidian, making the industry more mium Swatch,” says James Gurney, follow. Antiquorum was first up with an Geneva sales in November. Between industry that places great value on the competitivethanever. director of SalonQP, London’s annual offeringof504lotsthatfetchedatotalof now and then, the lull in international timeinvolvedincreatingitsproduct. (bar the Swatch’s ambitions have met with finewatchmakingfair. SFr6.5m, the highlight being an exam- watch sales, which starts after Bonhams Sistem51 was introduced for Swatch’s strap) by mixedfortunesinrecentyears. ”Its construction, however, may have ple of Patek Philippe’s Reference 2499 New York and London sales, on June 9 30th anniversary in 2013. The original In 2007 it entered into a 20-year joint lessons for more expensive watches, perpetual calendar model, considered and 10 respectively and Sotheby’s New quartz “second watch” was launched in automated venturewithTiffanythatendedacrimo- particularlyasthemarketadjuststothe by many to be among the most collecta- York Sale on June 11, might at least give 1983 and sold 50m units in its first five machines niously in 2013 when a Dutch court arrival of connected watches,” adds Mr bleofallvintagewatches. Phillips’s competitors the opportunity years, netting Swatch’s founder Nicolas ordered Tiffany to pay Swatch Group Gurney. With the added attraction of having a toregroupanddecidehowtofightback. Friday 5 June 2015 ★ FINANCIALTIMES 9

FT SPECIAL REPORT Jewellery Excite and Fine jewellery follows the fashion mix it up for Traditional brands and pendant styles. In terms of gemstones, turquoise was notable across the mar- the new independent designers Winning entries in ket, as were unusual colour combina- courted the younger the Couture Design tions. Awards (clockwise Maria Lemos of London-based show- consumer customer at the from top left): room Rainbowwave, says she came Tomasz Donocik looking to develop US business for her Couture Show, writes designers, who include Ileana Makri earrings; Nikos Trade shows Rachel Garrahan Koulis ring; Plevé and Venyx. She also met many interna- bracelet; Reho tional buyers who she would normally Retailers need to adapt and he wares on offer at last necklace; Spinelli seeinParisatFashionWeek. week’s annual Couture Kilcollin ring Nadine McCarthy-Kahane of Stone innovate if they are to Show in Las Vegas reflect and Strand, a fine jewellery etailer appeal to changing tastes, thegrowingimportanceofa based in New York, came to Las Vegas T sophisticated female buyer with a targeted approach. “Experience says Rachel Garrahan who is making fine jewellery part of her tellsusthatourdesignersneedtohavea On display: the JCK trade show everydaywardrobe. strong story online that will immedi- Traditional jewellery retailers, in atelyresonatewiththebuyer,”shesays. JCK, the largest of the Las Vegas jewel- develop their ecommerce offering, she common with multi-brand fashion The challenge facing the industry,she lery week trade shows, is well aware of says, and must get to grips with smart boutiques such as Dover Street adds, is how to meet consumer demand the need for retailers to focus on chang- jewellery and watches after the buzz Market, have recognised the for new product alongside the con- ing consumer buying habits, says Yancy aroundthelaunchoftheAppleWatch. potential of this customer and are straintsofahandmade,luxuryproduct Weinrich, senior vice-president of its Withthejewellerymarketreportinga offeringatrend-consciousselection. likejewellery. organiserJCKEvents. slow start to the year,Andrea Hanson of The shift is also blurring the line “Today’s customer constantly She believes that some traditional US Luxe Intelligence, a sales showroom between traditional brands and fash- wants something new. There is no jewellerystoreshavebeenslowtoadapt that represents 20 designers at JCK, ion fine designers. Pomellato and immediatesolution,buttheretailers their product selection and marketing agrees. “Without merchandise innova- Kwiat were among the larger compa- aregoingtohavefigureitout.” strategy to the emerging female self- tion in stores, the consumer is even nies in Las Vegas launching products With the slowdown in the formerly purchaser. more likely to abandon the jewellery targeted at a younger consumer seeking booming Russian and Chinese markets, “You need excitement in stores,”says categoryinsearchofatravelexperience everyday pieces, and there was a strong many international brands are looking Ms Weinrich, pointing to Roberson’s ortechnology,”shesays. showing from fashion-centric brands thatwillbepartofitsnewselec- independent jewellery retailers to the US, with its large, diverse and Fine Jewelry in Little Rock, Arkansas, Hartmut Kraft, head of the North such as Delfina Delettrez and Lynn Ban, tion. The New York-based across the US that are adapting sophisticated jewellery market, to fill which targets female customers with its American division of Kering watches, who have previously only shown at designer, who originally devel- their product range. “These are thegap. selectionofmerchandiseandregularin- believesthatanauthenticbrandexperi- ParisFashionWeek.” oped a successful sterling silver often family businesses and the sec- Fabergé brought its playful interpre- storeevents. ence is the only way to drive growth in “Fortheluxuryconsumer,jewelleryis collection,wasatCoutureforthe ond generation is recognising the tation of fine jewellery to Couture for She adds that stores need to buy the US’s saturated men’s high-end now a big part of their purchase,” says first time, to raise the profile of need to cater towards a more fash- the first time, seeking US partners as across different price points and catego- mechanicalwatchmarket. Gannon Brousseau, director of North her year-old fine jewellery line. ion-forwardcustomer,”sheexplains. partofitsglobalexpansion. ries: “Once there was a real separation Kering’s luxury watch brands, Ulysse America’s leading fine jewellery design The collection is already availa- Some of the winning entries in the Many independent designers were at between fashion and fine jewellery, but Nardin, JeanRichard, and Girard- tradeshow. bleatstoresincludingBarneysin show’s Design Awards reflect this aes- Couture, in search of opportunities. the modern woman is now mixing it up, Perregaux, were among the exhibitors Lane Crawford, the luxury depart- theUSandColetteinParis. thetic, including Nikos Koulis’s alterna- Dutch designer Bibi Van Der Velden has wearing a $15,000 watch with a $125 at JCK’sSwiss Watch show and Mr Kraft ment store in Hong Kong, is shifting its Ms Love came seeking part- tiveengagementringandTomaszDono- focused on developing her business in bracelet.” saystechnicalinnovationandexpensive focus from a traditional jewellery selec- ners among specialist US jewel- cik’s Blade Runner-inspired earrings, the US for the last couple of years. JCK has restructured its floor plan to advertising campaigns are not enough tion to designer fashion fine jewellery lery stores as well as buyers from both of which are a modern reinterpre- AlreadyavailableatanumberofAmeri- try to accommodate this shift and next to ensure sales and brand loyalty in the that better reflects the needs of its lux- the UK, Japan and the Middle tation of art deco. Both designers are can stores including Bergdorf Goodman year will add a further section, The saturatedUSluxurymarket. ury customer. The shop’s jewellery sec- East. She says response was stockedatBergdorfGoodman. andReinholdinPuertoRico,shecontin- Bridge, focused on base metal, lower- ‘The [high-end mechanical watch] tion is moving closer to ready-to-wear strong and hopes to secure six to Variations on the earring and the ues to find opportunities for selling her price-pointjewellery. brands that will succeed in the US are and will become a more integrated part eightnewaccountsasaresult. pearl remained popular at Couture and luxebutplayfulcollection. Technology is another area in which theonesthatcanprovideauniqueexpe- ofthebuyingexperience. Sheisoneofthedesignersseeing there was considerable focus on the “The US market is like a Pandora’s Ms Weinrich believes it is crucial to rience to the buyer that cannot be Pamela Love is one of the designers a trend among the hundreds of neck, from chokers to lariats and long box,”shesays. develop expertise. Stores need to boughtanywhereelse,”hesays. A champion of the young, the innovative and the independent

Meeling Wong, president North team, together with members of the Profile America/managing director jewellery Couturecommunity,vetapplicantswho at Georg Jensen, says it was refreshing join the show via Design Atelier. They Gannon Brousseau, director that Mr Brousseau did not come from look for “an original voice and a unique of Couture, has opened the theindustry. pointofview”. show to non-traditional “Hemakesitknownthatheisopento Mr Brousseau describes the work of listen and open to receive — which was these independent designers as retailers, says Elisa Anniss muchneededwhenhefirsttookover.” “designer fine jewellery” — because, he She believes that from an exhibitor’s says,“itisdesignedbyartists”. Gannon Brousseau, the 35-year-old point of view, it had been a good idea of He adds: “With designer fine jewel- director of the Couture show, which Mr Brousseau to open the show to non- lerytheindustryhasnotdoneagoodjob held its 20th event in Las Vegas last traditional retailers, especially because of educating the consumer about the week, chooses his words carefully when the retail landscape had considerably artist and the processes behind the describingtheevent. changed. brands.” Couture is not a trade show he says, it “He has also made great efforts to Mr Brousseau admires the way that is more “a community” a word he uses seek and welcome new designers and the fashion industry has turned its fin- frequently to describe the buyers and new retailers and has successfully est creators into stars. Tom Ford and vendors who attend this upmarket, Giorgio Armani have become instantly carefullyeditedjewelleryevent. recognisable faces and Mr Brousseau Previously, he adds, jewellery brands sees no reason why a jewellery designer, targeted Russia and mainland China, ‘The US is a different such as Stephen Webster, should not buttherehadbeenashiftinthemindset market . . . there is scope enjoythesamekindofrecognition. ofthesebrands. “I think it’s important to promote “With the US economy rebounding, and scale due to its size’ these artists and learn from the fashion thecurrencyfluctuationsinEuropeand industry,” he says. He points to the instabilityinRussia,brandsarerefocus- assembled an impressive portfolio of Council of Fashion Designers of Amer- ing their efforts on the US market. We jewellery designers, established and ica as an organisation he would like to are certainly seeing this with vendors emerging,”shesays. strengthen ties with, given that jewel- [atCouture],”hesays. Creativity is at the heart of Couture’s lery does not have an equivalent unify- As for the retailer side of the show, he Design Atelier, which was established ingvoice. adds, Couture’s strategy is to target before he arrived. Mr Brousseau and his Withanincreasedemphasisondesign regions around the world — Japan and and more women buying jewellery for South America — as well as specific themselves, Mr Brousseau believes that stores. He pays close attention to Cou- today’s consumers want to know more ture’s designers and vendors when about the designers, their inspiration decidingwhichretailerstoapproach. andthebehind-the-scenesprocesses. Harrods, EC1, Dover Street Market ThesuccessofCouture’sofficialInsta- and Fenwick already attend from the gram account @by_couture, launched UK, although the appeal is even greater 18 months ago, confirms that this appe- for exhibiting UK-based showrooms titebothexistsandisgrowinghesays. such as Valery Demure, Rainbowwave “We use Instagram as a vehicle to andRockVaultdesigners. spread the word about designer fine “The US is a different market from jewellery and luxury timepieces. We other regions in the world. It is very feature a different designer each day, large and primarily composed of inde- and each month we have a different pendent retailers. There’s scope and community member take the control of there’sscalebecauseofitssize,”headds. our account in our #Couturetakeover Mr Brousseau joined Couture in April series . . . and post images on our 2012. Before that he was the sales direc- behalf.” tor for Emerald Exposition’s entire jew- Mr Brousseau’s innovative take on ellery portfolio at its trade shows ASD Couture has won widespread support MarketWeek, JA New York and also fromexhibitors. Couture. “Gannon listens to and engages with From 2006 to 2010 he cut his teeth at the exhibitors. He is aware that the ASD, which he describes as “the polar industry is changing, bringing with it a opposite to Couture, selling everything new type of jewellery buyer and retailer from military surplus to unbranded sil- who are key to the survival of an indus- ver”. try show,” says Stephen Webster, who MrBrousseauhasaclearunderstand- hasexhibitedatCouturefor16years. ing of exactly where Couture sits in a “Since Gannon took over the reins, shifting jewellery universe. He has my team consider it more than just a encouragedyounger,innovativedesign- show we take part in once a year, it’s a ersandnewretailerstoattendtheshow. Innovative take: Gannon Brousseau communityweenjoybelongingto.” 10 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery

A guaranteed diamond is forever The sparkle, the radiance and the appeal . . . of a synthetic stone

cal development centre in Maidenhead, Mark of approval: the unique De Beers To reassure beforereturningtoleadthenewfacility. serial number on a Forevermark Lab-grown or synthetic China, India, Israel and its customers, the The team has also been shown how to diamond can only be seen with diamonds are having an Belgium. In 2012, 600 use De Beers’ proprietary inscription a De Beers viewer impact on the natural undisclosed synthetic company has invested technology. On each Forevermark dia- diamond industry. diamonds were found in a mond, a serial number is inscribed on While imitation parcel of 1,000 stones at $10m in a grading thestone’stablefacet. diamonds in the form of Antwerp’s International facility in India, writes The number — approximately cubic zirconia have existed Gemological Institute. Both 1/5,000th the depth of a human hair — for decades, technological the dealer and the supplier Simoney Kyriakou is so small it cannot be seen, even with advances are increasing had believed the stones an eyepiece. It can only be seen with a the number of high-end, were natural. The lab- f a jeweller could put a price on DeBeersviewer,whichbounceslightoff lab-grown gems. It is now grown diamonds included peace of mind, it might not be far thetablefacet’ssurface. harder than ever to tell the impurities to resemble the off$10m.Atleast,thatishowmuch De Beers is now rolling out its difference between a imperfections typically De Beers has invested in its latest viewers to a select few of its natural diamond and one found in natural diamonds. I International Institute of Diamond 16,000 retail partners in 24 grown in a laboratory. In February, the Surat GradingandInscription,inSurat,India. countries. Synthetic diamonds Diamond Association The institute will process, select and “Not every retailer trade at between 20 and discovered 110 synthetic grade Forevermark diamonds — a dia- has the right envi- 50 per cent less than the diamonds in a packet mond brand from the De Beers group. ronment for a price of natural diamonds. belonging to two traders. These will then be inscribed with a viewer,” says Mr But when not disclosed as The natural diamond unique serial number, which Stephen Lussier. Those lab-grown, they threaten industry also faces Lussier,chiefexecutiveofForevermark, who do, how- to undermine the challenges from changing says is De Beers’ guarantee that each ever, could pay reputation of the natural tastes. The 2014 De Beers Forevermark diamond is “beautiful, between $10,000 diamond industry, which Diamond Insight Report rareandresponsiblysourced”. and $30,000 a year relies heavily on trust and said that while the industry Of all diamonds mined globally only 1 for the equipment, has faced questions about derives practically all its percentareselectedforForevermark. marketing and training reputation, associated with value from consumer Currently, De Beers’ Antwerp base inhowtousethemachine. “conflict” diamonds. demand for diamond handles 400,000 diamonds a year; the Mr Lussier says that staff in Surat As a result, industry jewellery, natural diamonds Surat facility,with its 100 newly trained have competitions to see how quickly leaders have agreed on a are facing competition staff, is expected to process 500,000, trainees can find the inscription: 12 sec- need to stimulate demand from other luxury goods. with the ability to take handling across ondsisthecurrentrecord. for natural diamonds and Bruce Cleaver, De Beers’ both centres to 1m a year. At full capac- Grading, certifying and marking dia- inscription cannot be removed without at the same time ensure head of strategy, says: “We ity, Surat will be able to process $500m monds for assurance is not a new idea. altering the quality of the stone. There consumer confidence. need to understand worthofForevermarkdiamondsayear. The Gemological Institute of America are also aesthetics to consider. Mr Luss- ‘The marking is only visible In March, miners changing consumer Mr Lussier says that establishing the has been carrying out laser inscriptions iersaysthatsomeengravingsontheside at 10 times magnification’ including De Beers, Alrosa, preferences and the instituteinIndiamadesensegeographi- andcertificationforyears. could lead to visible inclusions and Petra Diamonds, Gem competition from other cally.Surat is the world’slargest cutting “This inscription can provide proof of reflections, or affect the way in which Diamonds, Dominion luxury categories to ensure and polishing centre for diamonds, ownership,”says Thomas Moses, execu- thejewellercansetthestone. and provenance,” says Mr Rachminov. Diamond and Rio Tinto we keep the diamond dealing with nine out of every 10 stones tive vice-president and chief laboratory However, diamond specialist Eden He is doubtful whether other dia- met in London to discuss dream alive.” minedglobally. and research officer for GIA. “The Rachminov,founder of the Israel-based mond dealers would want to create marketing and the threat In 2012, the World To meet growing demand for its For- marking is only visible at 10 Fancy Color Research Foundation, something similar. “This is more about of undisclosed lab-grown Federation of Diamond evermark diamonds — in 2014, the times magnification and is says that while an incised serial branding than adding value to the end- diamonds. They have said Bourses founded the World brand passed its 1m diamond milestone located in the girdle of the numbercould,atcertainangles, buyer,”headds. little about their plans. Diamond Mark Foundation — De Beers has invested in intellectual diamond,”hesays. reflect like an inclusion inside According to a spokesman for the Stephen Lussier, chief to stimulate demand for property, training and technology. For However, Mr Lussier a fancy coloured stone, it World Diamond Bourse platform in executive of Forevermark natural diamonds. Member example last month it took a 33.4 per believes that inscribing would be unlikely that the Antwerp, customers are becoming at De Beers, says: retailers pay an annual fee cent equity stake in Synova, the Swiss in this fashion does not aesthetics of a pure white increasingly precious about their jewels “Targeted investment is to be a World Diamond laser micro-jet tech developer. The deal provide the same level diamond would be compro- and want reassurance that when they required to ensure Mark authorised diamond will allow Synova to develop a laser to of security. A diamond mised. send their diamonds to be cleaned the diamonds maintain an dealer. There are currently cutandshapediamonds. could be stolen and cut “Most high-quality stones samestoneisreturned. appropriate share of 150 authorised dealers and But before diamonds can be shaped, up, with the inscription are unique and carry a The spokesman added: “Customers advertising voice, because the organisation aims to they must be selected. To do that a erased,heexplains. certification from the GIA, so needinggreaterlevelsofconfidenceand this will help maintain their have 20,000 retailers on its team of experts from Surat has been Anengravingonthegirdle thebuyershouldnotneedaspe- trust may value this sort of inscription unique luxury positioning books by 2020. trained in Forevermark selection and could be shaved off, he adds, cial machine to give them cer- technique to prove that they have their and underpin demand.” Ernie Blom, president of grading at the De Beers UK technologi- however, a nearly invisible tainty over the stone’s authenticity owndiamondintheirhand.” He adds: “We are the World Federation of committed to developing Diamond Bourses and our own promotional vice-chairman of the initiatives, but we believe foundation, says that the serious proposals including World Diamond Mark participation and Foundation has awakened A sixth sense for the unique and the exceptional contributions from across the diamond industry to the diamond value chain the necessity of generic are worthy of discussion.” promotion. come, and ultimately find things,” says have acquired an exceptional reputa- works; even when designers have their Lab-grown diamonds are But some believe the Shops and Retail vice-president Dickon Bowden, who tion for spotting and supporting fresh ownstorenearby,theDSMpieceswillbe cultivated from a carbon growth of lab-grown London’s Dover Street works alongside concessions and jewel- talentinthesector.Repossi—carriedby different. “The sole criterion is that the plate known as a seed, diamonds will prompt lerymanagerMimiHoppenandawider DSM since 2007,when creative director design has something to say. People which is placed in a low- demand for investment Market has developed a team in finding and meeting jewellers Gaia Repossi was 21 — now has some 55 come here to find something excep- pressure microwave stones. Ehud Laniado, reputation for identifying andselectingstock. listedpointsofsale.BothDelfinaDelett- tional,”saysMrBowden. chamber. Hydrogen and principal of Mercury The jewellery department started in rez and Jessica McCormack have Mr Bowden first saw Ms Delettrez’s methane gases are then Diamond, says: “Lab-grown and nurturing fresh talent, 2006 with a collection of eight pearl opened standalone stores in London’s work at her Paris showroom, Mr Wel- introduced and a diamonds appeal to the writes Hettie Judah necklaces by Rei Kawakubo, creative MountStreetquartersincebeingpicked stead was introduced by a client. microwave generator lower and middle classes director of Comme des Garçons and co- upin2007and2009respectively. Etienne Perret was discovered at the pumps energy into the and young consumers who founder (with husband Adrian Joffe) of DSMiscelebratedforitsartist-leddis- Couture Show in Las Vegas and Lia di chamber, igniting a view them as a high-tech, Dover Street Market (DSM) has long DSM. plays and close relationship with Gregoriaapproachedthestoredirectly. glowing plasma ball. green product. interwovenartandcommerce. “We created some displays and the designers and something akin to a sense The routes into DSM are as varied as Carbon molecules rain on “Provided lab-grown At the London multi-level retail store necklaces sold almost immediately,” of family underpins the DSM ethos. the display grids are uniform. But for all the seed, layering on top of diamonds remain recently,queuessnakeddownthestreet says Mr Bowden, who has been with the When William Welstead comes in to the creator-centric buying philosophy, it and fast-tracking the accurately presented to before opening time — one for a limited store since it opened in 2004. “It hap- show new pieces he casually pours a bag the process of selecting precisely which natural crystallisation the market as such, natural edition pair of sneaker shoes, the other pened organically: we saw that it of loose diamond Nizam beads on to the individual pieces will go into the store is process. The process takes diamonds will always be in for the Apple Watch. Visitors were worked, so we opened our eyes to see scorched wooden tabletop of the store’s rigorous. DSM’srelationship with jewel- six to 10 weeks. demand by the world’s greeted in the dedicated front-of-house whatwasoutthere.” RoseBakery. lers may be long, but it can also be nar- Undisclosed lab-grown wealthiest and most taxidermy display by a macabre set of The jewellery department has grown Structured around historic gem- row, with the in-store presence as lim- diamonds have surfaced in discerning customers.” eels suspended in specimen jars. steadily. Currently, it occupies about a stones, Mr Welstead’s jewellery is A sense of itedasthreeorfiveworks. certification laboratories in Claire Adler Beyond, presented in table-mounted quarter of DSM’s ground-floor retail among the store’s most traditional. Its family The team’s sixth sense for selecting, vitrines and wall cabinets, is the jewel- space and is likely to expand with the fiercer shop-mates include the bristling commissioning or collaborating on lery, the work of some 40 designers store’s move from Dover Street to Hay- Byzantine fantasia of Hunrod, and underpins l’objet juste has made the department an fromaroundtheworld. market at the end of 2015. Some 50 Betony Vernon’s fetish accessories, as the DSM obligatory port of call even for repre- There is no plush velvet, no hierarchy pieces — less than 10 per cent of the well as lyrical designs such as Sophie sentativesofleadingjewelleryhouses. of value or prime position, no visible stock—areavailableonline. BilleBrahe’sinnovativeearjewels. ethos. There It is founded on a search for equilib- branding of any kind. Instead, the In Mr Bowden and Ms Hoppen’s gen- There is nothing here approaching a is a lack of rium rather than mere commercial piecesarearrangedonPerspexblocksin tle terms, the store’s jewellery-buying house style or aesthetic through-line, appeal. As Mr Bowden confesses: a clean grid pattern, within which the strategy sounds unstructured, but in more the unspoken principle that the barriers and “There are some things that sell once in arrangementischangedweekly. less than a decade DSM London and its pieces cannot be found elsewhere. bureaucracy a blue moon, but they are important in Home-grown: a synthetic diamond — Bloomberg “People are challenged when they sibling stores in Ginza and New York Thirty per cent of the stock are one-off termsoftheaestheticmix.” Retailers seem happy to let designers take the financial strain

unexpected materials as a retail “sweet pendent jeweller, not the retailer, who Sally Leonard, a jeweller-turned- “With online becoming more impor- in Athens, selling her own label and Retail practices spot”. may crumble under financial strain. business consultant who works for the tanttodesigners’success,Ibelieve[that pieces by other designers, believes “the And yet some have also brought with Melanie Georgacopoulos used to run a London enterprise agency Centa, notes: increasingly] they will pick their part- fair thing to do is to buy a portion and Independent jewellers are them crippling practices such as return fine fashion jewellery label. Now head “At the moment, everyone wants to cut ners more carefully and only work with ask for another portion on consign- being crippled by stores’ to vendor (the retailer buys the piece, designer at Tasaki, a Japanese jeweller, costsandshopsknowthatmanydesign- those who truly support and believe in ment”. consignment deals, but if unsold, it is returned to the jewel- she describes how common retail prac- ers are desperate. I tell my clients they theirbrand. For her collection, she buys the gold ler and the retailer is reimbursed or tices left her disheartened. She became have to make some tough decisions, to They may choose to consign with anddiamondsandpaysformanufactur- writes Elisa Anniss receives a credit). And consignment — irritated that most retailers did not treat stockists as marketing to help some,butitwillbeamutuallybeneficial ing in advance. It takes 90 days at least themostcommonpracticeofall. appreciate consignment and did buildtheirprofileandthatsellingtofive relationship where both parties are to recoup these costs and that is selling Sellingonconsignment,where not offer anything in return, to10storesismorethanenoughtodrive investing in one another’s success. Con- wholesale. “If it’s all consignment, then For Valery Demure, the jewellery entre- the retailer pays the wholesale suchasmediacoverage. sales. ventional distribution is changing and you limit yourself to the bigger names preneur, consignment is a big subject. price after the sale, returning “I now appreciate that con- “They can hold out for an order or willcontinuetointheyearsahead.” that can afford to do it and that’s not “Sustainability and sweatshops are any unsold pieces, has signment is and should be decidetheycanaffordtoconsign.Andit For Emma Madden, of London jewel- whatIamlookingfor,”shesays. talked about with passion, but nobody become a highly contentious part of an order, as a small isworthit,especiallyifitisanorganised lers Shimell & Madden which launched Ms Demure cites Liberty in London, dares to talk about how jewellery matterforjewellerydesigners. percentage, because it ena- consignment to a store that fulfils its at Dover Street Market in March, con- Ylang 23 in Dallas and White Bird, Le designers struggle with today’s retailer For unless the designer is bles stores to stock more invoices and pays every month. But in signmenthasalwaysbeenthenorm. Bon Marché and Montaigne Market in demands,” says London-based Ms independently wealthy, pieces from a small the end, the most profitable transaction “I see it from both sides. Usually, Paris as some of the retailers that buy Demure. running an estab- designer, hence more istoselltotheclientdirectly.” retailers support you by using their PR intojewellers’collections. Her agency represents leading names lished business visibility for the Gannon Brousseau, the director of to help you grow and then once you are “Consignmentshouldnotbetakenfor in designer fine jewellery, including where cash flow is designer and less Couture, the jewellery trade show, says selling you are in a better position to granted, but be part of a negotiation Fernando Jorge, Delfina Delettrez and no longer an issue, investment risk for consignment is a difficult situation for negotiate,”saysMsMadden. process, so that retailers share the risk MoniquePéan. or cushioned by the store,”she says. the industry and a concern of his. Sinceitisthedesignerswhosetprices, with designers and are rewarded with In recent years, luxury e-tailers, start-up money, “But I think that if “Designers invest a substantial amount she knows of some who quote higher consignment stock to elevate and com- department stores and multi-brand it is the inde- the stores aren’t of money in their collections and want wholesale prices when asked for sale or pletetheirselection,”saysMsDemure. boutiques around the world buying,theysim- to know their retail partners are invest- return. “It [consignment] allows shops But Ms Leonard goes further. “In my have become eager for new, fine Valery Demure: plydon’tputthat ing in them too. I wouldn’t be surprised to carry more stock and makers to opinion, if a retailer knows it can sell a jewellery brands, often describing ‘Retailers must mucheffortinto if there is a shift in the coming years. exchangestock.” piece, then there’s no justification at all the fresh ideas, novel techniques and share the risk’ selling.” Quitefrankly,therehastobe. Ileana Makri, who has opened a store fornotbuying.” Friday 5 June 2015 ★ FINANCIALTIMES 11

Watches & Jewellery

Clockwise from top left: Erickson Beamon butterfly necklace; Kenneth Jay Lane bracelet; Attilio Codognato snake bracelet and Kenneth Jay Lane brooch. Left: Anna Sui wears items of her favourite jet jewellery Pascal Perich

A passion for jet, vintage and Elizabeth Taylor

wearanecklacepouchandit’sinthe alwayshadtomakesureIwasthereona GloriaSwansoninherbooth.Shehadso startedfindingitinthefleamarket,that him,that’swhyIknewwhatitwas.In My favourite pieces pouch. FridayoraMondaysothatIcouldgo muchMiriamHaskell—Ihadnoidea wasreallyexciting.Ilovedhis1960s theauctionIdon’tthinktheyknew Fashion designer Anna Mostofmyjewelleryisvintage.When there.Iacquiredmostofmypiecesfrom whatitwasbutIwasjustdazzledbyit.I pieces,andwhenIstarteddoingsome whatitwas,itwasjust“snakebracelet”. Ilookatnewjewellery,itdoesn’thave her.AtonepointIwassoobsessedthatI lovethatthepiecesarehand-assembled stylingIthought:“Oh,let’sgoupto LizTaylorandRichardBurtonwere Sui loves the flea market thesamedepth.Iboughtmyfirstpiece wentonvacationtoWhitbytoseethe andsomebodythoughtuptheshapes KennethJayLane.”That’swhenImet onlyinVeniceoncefortheVeniceFilm finds and her lucky ring. ofvintagejewelleryin[herhometown museumthere;insideisajetworkshop anddesigns. him—theyletmegothroughalltheold Festivalandheboughtthatforherasa of]DetroitwhenIwasinhighschoolata whereyoucanseewhattheworking It’sdifferentnow—Idon’tbuyMiriam pieces.Ijustlovethem—they’re“it”to present.Irememberreadingaboutitin As told to Rachel Felder resalestore.Istillwearthatpiece. conditionswerelike.Theywerevery Haskellanymore.AtthetimeIwas me. abook. Ihaveabout15piecesofjetjewellery.I cramped,workingatlittletableswith buyingit,itwasalotofmoneytome, WhatIloveaboutKennethJayLaneis Iwearit—youhavetoslideitonyour thinkmyloveofjewellerywas don’tliketothinkofitasmourning finetoolswheretheywouldcarvethe butoncepeoplestartedcollectingit,you thatit’sasgorgeousas[precious] hand.I’vewornthesnake’sheadupand inspiredbymom,becauseshe jewellery:Ilikethecraftsmanshipand objects. justcouldn’ttouchitanymore. jewellerybutit’sfaux,soyoudon’thave down,dependingonwhatmysleeveis alwayshadsuchbeautifulpieces. theintricacyofit,Ilovethatsomepieces Thejetjewelleryiswhatinspiredall IboughtmostofmyKennethJayLane toworryaboutitsomuch,althoughI doing. Shegavememygoodluckringthat werehand-carved.I’mveryattractedto thepackagingformycosmeticlineand piecesatthe[nowdefunctChelsea]New treasureitjustasmuchastherealthing. I’mabigElizabethTaylorfan—seeing I I’vewornateveryfashionshow:it’s it—theyaresuchbeautifulobjects. myfirstperfumebottle.It’sreallybased YorkFleaMarket.Itusedtobesuchan EricksonBeamonhasdonethe herjewellerywasjustfascinating.When apieceof[her]jewellerythatIjust Mostofmyjetpiecesarefromthe onallthesepieces—theyareso amazingfleamarket—everytimeyou jewelleryformyshowssincethe Iwenttotheauctionitwasreally lovedandrightbeforeIstartedtodo early1990s,fromanantiquedealerin recognisable.Ithinkthat’sreallywhat’s wentyoucouldfindsomething.Theflea beginning.Oneofmyfavouritepiecesis exciting.Theauctionestimateswerenot fashionshowsshegaveittome. Gray’sAntiqueMarketinLondoncalled madethebrandsuchasuccess. marketistotallyaboutthehunttome. abutterflynecklace—it’sbeenmadefor insane.TherewastheBulgaridiamond Ithinkthatjewellerycansymbolise AllisonMassey.She’stheonethatI MiriamHaskelldesignsstartedme Youneverknowwhatyou’regoingto metwice,fortwodifferentseasonsin [piece]andItriedthaton—andI that:thatloveyouhaveforyourmomor learntaboutjetjewelleryfrom—she collectingvintagejewellery.Iusedto find.Sometimesit’sabonanzaand differentpalettes. thought:“That’swhatIwant”.The yourmomforyouandIloveitwhenit’s wasvery,veryknowledgable.Sheeven buyherpiecesinthelate1970sand80s sometimesit’s“mmmm”,butthat Ihaveapiecefromthe[2013 estimatewas,ofcourse,notwhatitwent passeddown.Iusedtowearitonmy hadlittlebookstobuysoyoucouldread fromawomanatavintage[sales] makesyouappreciateitmore. Christie’s]ElizabethTaylorauction:It’s for—itwentforaboutamilliondollars hand,butsomanypeoplesqueezeyour uponit.Iwouldsaveupmymoneyand buildinginNewYorkwholookedlike Iknewofhimbecausesomeofmy abracelet[byVenetianjeweller]Attilio andsowatchingthebiddingonitwas hand,thatIwouldfreakout.NowIputit whenIwenttoLondonthatwasmyfirst GloriaSwanson;shewouldweara favouritejewelleryinoldVoguesfrom Codognato:IworkedinItalyand “Noway”.Thesnakebraceletismy inmypocketinabox,orsometimesI stop.Itwasn’topenontheweekendsoI beautymarkandshehadpicturesof the1960swerehisstuffandwhenI wheneverIwenttoVenice,Iusedtovisit consolationprize. Berber traditions find favour with western designers

the fondation when it opened, and we says: “We try to use the same simple Morocco haveenricheditconsiderablysince.” techniques and tools employed in Not long after Yves Saint Laurent and Morocco, such as forming sheet silver Corals, amber, coins and Pierre Bergé set out on their jewellery with simple decorative punches and handcrafted silver are the quest, fashion designer Tory Burch’s hammers.” hallmarks of the region, parents travelled to Morocco. The New The tour comes as Moroccans — and Yorkdesignerdrewuponthishistoryfor some contemporary jewellers — are writes Liza Foreman her fall-winter 2015 “Marrakech meets beginning to rediscover their heritage, Chelsea”collection. muchofwhichwaslostwithmodernisa- “I have always been fascinated by tioninthe1970s,saysMrDahlström. Within the grounds of the Jardin Marrakech. My parents honeymooned Women wore traditional jewellery Majorelle in Marrakech lies the Musée there 50 years ago and returned often,” designs at weddings until the 1970s and Berbère. Its rooms are filled with rare says Ms Burch. “I loved hearing stories Mr Dahlström says he has seen many silverdesigns—ahordeofBerberjew- about their trips and found it to be a new designers using elements from the els. greatsourceofinspiration. tradition. With a permanent collection of “Our design team was influenced by “While you cannot wear such heavy 1,200 jewellery pieces, the the construction and design of vintage pieces today, some techniques and museum owns what Björn Dahl- pieces from the region,” she adds. materials are being incorporated into ström, the curator,describes as one “The details we incorporated into designs — such as fibulae [brooches] of the most significant collections in our mixed-metal designs — discs, beingusedaspendants,”hesays. theworld. chains, fringe and semi- “This jewellery was once produced Three hundred pieces are on display, precious stones — were everywhere and worn all over Morocco. while a selection from the museum’s inspired by vintage pieces The artisans were mainly Jewish and collection is part of a travelling exhibi- from Morocco, a country many left after the creation of Israel, tion. Currently, 80 pieces from the Ber- deeply rooted in Berber cul- andthesavoir-fairehasbeenlost.” ber Women of Morocco tour are at the ture.” Berber jewellery is made in multiple National Library of the Kingdom of Meanwhile, Dore Stock- territories, but all the Jardin Majorelle MoroccoinRabat. hausen, the Australian silver- collectionisfromMorocco. An image for the exhibition shows smith and jeweller, recently led “Many young Moroccans and Algeri- some of the pieces and demonstrates a tour through the High Atlas ans are wearing modern or smaller ver- how they should be worn. Reefs of and into the Sahara in Morocco. sions of older pieces,” says Cynthia chunky corals hang like the spine of an Participants make jewellery Becker,anassociateprofessorofhistory animal wrapped around the neck of the with the help of craftsmen en of art and architecture at Boston Uni- mannequin. Other necklaces made route.LiketheBerbers,Ms versity and a specialist in the arts of the from unpolished stones and hand- Stockhausen uses certain BerberinnorthwestAfrica. crafted silver adorn the look, along- traditions such as “Some older-style pieces, similar to side angular plates that cover the col- enamelling. those made until the 1960s, are still larbones and were used traditionally “I encourage par- madeinBeniYenniinAlgeriaandTiznit to pin garments together. Finally, ticipants to look at inMorocco—andareproducedforwed- there is an ornate silver headpiece thisrichculture,art dings. But most women prefer not to embellishedwithcutglass. and landscape to inform wear the heavy silver jewellery of the Anensemblelikethismightbepaired their designs,” she says. Fragments of pastandprefergold,”shesays. withlarger-than-lifeearrings,according antique jewels found during the tour, She counts silver, cloisonné, coral, to photographs in the exhibition, which alongwithbeads,leatherandcactussilk amber and coins as the main hallmarks also displays some of the Berber collec- arecombinedintothedesigns. of Berber jewellery. “Women wore a tion which Yves Saint Laurent, the fash- Rita Lazauskas, an artist and curator basic jewellery kit in the past, including ion designer, and Pierre Bergé, his part- and director of Amazigh Cultural Tours a silver headpiece, fibulae, two or four ner in life and in business, started Morocco, which organises the trips, braceletsandanecklace,”shesays. almost50yearsago. MsLazauskassaystheremainingBer- The Jardin Majorelle was once the Moroccan inspiration: Tory Burch ber jewellers tend to work from home, home of the artist Jacques Majorelle, pendant necklace (top) and Tory relying on co-operatives and traders to and is now the property of the Fonda- Burch triple finger ring (below) sell their work. But she adds that there tionPierreBergé-YvesSaintLaurent. are schools in Fez and Essaouira which “Ours is a small museum, so we tour practisetraditionaltechniques. to make it more accessible,” “The Amazigh [Berber] saysMrDahlström. traditions are struggling to “It started in the 1960s, survive,”saysMsLazauskas. when Yves Saint Laurent, “If you research Moroccan who was born in Algeria, Amazigh jewellery, it will say it began coming to Morocco. allhappensinTiznit,Taroudant Yves Saint Laurent and Pierre andEssaouira,butwefoundthat Bergé donated their collection to therewasverylittleleftthere.” 12 ★ FINANCIALTIMES Friday 5 June 2015

Watches & Jewellery Masterclasses in appreciating the finer things in life

Education Collectors are honing their expertise and learning about stones, writes Amie Tsang

“People haven’t seen jewellery as an art form,” says Joanna Hardy, a Christie’s jewellery expert. But things are chang- ing,sheadds. Whilejewellerymaynothavereached the high figures attained by art, prices arerising.Forexample,a35-caratKash- mir sapphire ring was sold for $7.3m — ($209,689 per carat) — at Christie’s Learning curve: a class at Bonhams Magnificent Jewels sale in Geneva recently. “People are individual . . . and I Asinterestinjewelleryincreases,auc- think they don’t want just to put on the tion houses are responding and offering twinset and pearls. At one time, you put aseriesofmasterclasses. the same jewellery on with whatever “Foranyonewhoisabouttostartbuy- youwerewearing.Thatwasverytypical ing jewellery or stones, I think the mar- in the 1980s and 1990s. But that’sreally ket for diamonds is all around us,” says changed.” David Bennett: ‘Important collections, when they appear, will require us to develop a specific strategy suited to the owner’ — Charlie Bibby Bonhams jewellery director Graeme There is also greater awareness of Thompson. where the jewellery comes from. “Peo- MrThompsonisrunninganintroduc- pleappreciatethattheearthisnotgoing tion to buying diamonds masterclass in tochurnoutanotherKashmirsapphire; Admiralty, a central Hong Kong busi- that mine is long extinct. People are ‘An auction is like theatre — you ness district. “It’s everywhere we go, really appreciating that the world is not whether we’re walking down the street, a supermarket; it won’t keep bringing or at auction . . . we see huge adverts all outthesestones,”saysMsHardy. aroundus,”headds. She says that a significant proportion Mr Thompson tells his masterclass of those attending her classes are finan- must hold people’s attention’ why the ubiquity of diamonds means ciallyindependentwomen,whowantto that buyers will turn to this “safety spend their wealth wisely.While the age blanket” when it comes to making range has dropped, with some in their David Bennett has presided over many record-breaking sales at Sotheby’s, says Camilla Apcar their first investment. He then goes on mid-30s, the average age of participants Interview to discuss what affects diamond prices, isabout45-50. as his guests sip champagne and eat Classes at Christie’s include behind- nApril,Sotheby’sMagnificent 100-caratexceptionaldiamonds.He Iwasalreadyverymuchinvolvedinthe canapés. the-scene visits so that customers can JewelssaleinNewYorkwasoneof hasledmanyrecord-breakingauctions, decision-makingprocess[whichpieces One of the audience, Agnes Ho, has see craftsmanship in action. Gemstones thefirstauctionstobeheldthrough includingthe‘GraffPink’arare24.78 tosellandwhichtokeep].” not missed any of Bonhams’ master- are recommended as a starting point itsnewplatformpartnershipwith carat‘fancyintensepink’diamondthat CV A life in MrBennettsays thatthedecisionto classessincetheystarted.Sheiseagerto becausetheyaresuchanintegralpartof I eBay,theonlineauctionsite. wassoldfor$46.2m,inNovember2010, the saleroom selljewelleryisrarelybasedpurelyon round out her knowledge of jewellery jewellery. Ofthe294lotssold,fourpricedat atthattimethehighestpriceeverpaid financialconsiderations.Thereis and learn about elements that she is not While Ms Hardy and Mr Thompson morethan$1mwereboughtbyonline foragemstoneorjewel. usuallyastrongelementofemotional toofamiliarwith. want attendees to feel more confident, bidders,eitherviaeBayorSotheby’s Hepresidedoverthesalesofthe 1974 Joins Sotheby’s as a involvementsuchasdeathordivorce. “I know about diamonds, but not they are wary of encouraging clients to onlinebiddingplatform,BidNow. collectionsofoperasingerMariaCallas cataloguer. “Importantcollections,whenthey other stuff like gemstones, jadeite. It go out immediately with their new- “Ithinkwe’rerapidlymovingintothe andfilmstarAvaGardnerandwas 1979 Takes first auction. appear,willrequireustodevelopa intrigues me because of the increase of foundknowledgeandahandfulof newage,”saysDavidBennett,whowas instrumentalinthesaleofthecollection 1984 Assumes directorship of specificstrategysuitedtotheowner.I value, but I don’t believe in investing banknotes. Ms Hardy recommends in namedworldwidechairmanof ofanotherfilmstar,GinaLollobrigida. London jewellery department. spendalotoftimeworkingonthis. unlessyoulikethem. the first instance that people do not just Sotheby’sInternationalJewellery Lastmonth,heputtogetherand 1989 Moves to Geneva: appointed “Clientsoftenneedtobeadvisedon “Of course”, she adds, “you like to buy for the sake of investment. “You’ll divisioninMarch.“Ithinkjewelleryis presidedoverarecord-breakingsalein director of European jewellery sales themarketplaceandtiming . . . Very know that your pieces have gone up in neverenjoyit.Youshouldbuywhatyou goingtobecomemoreandmore Genevathatrealised$160.9m,including and begins to sell record-breaking often,Ivisitaconsignoranumberof price—I’vedonesomethingright”. love, but when you have a discerning importantfortheauctionbusinessand the25.59ctCartierSunriserubythat diamonds and jewellery collections. timesbeforeafinaldecisionistaken.” MsHoexplainsthatshefindslearning eye, you can really appreciate its alsoforourdigitalworld.” soldfor$30.3m. 2006-2014 Chairman for Europe MrBennetthasconsiderableinputon about jewellery relaxing after a day’s beauty.” Forthemoment,onlyNewYorksales Itsurpassedthepreviousworld and the Middle East. Co-authors thecontentandorderofasaleand work. “Business I know inside out,”she Mr Thompson is similarly wary — he willbeofferedoneBay,buttheauction recordforthepriceforanyrubyby Celebrating Jewellery (2012). negotiatesmanyofthetoplots. says — she works in private equity.“For starts off his diamond masterclass with houseishopefulthatselectedsalesin morethan$20m,anotherofMr 2015 Appointed worldwide “Thesalehastohaveacertainpace. something like this, I can [use] Google, a warning. “I think as a buyer or a pri- EuropeandAsiawillfollow. Bennett’ssalesroomtriumphs. chairman of Sotheby’s International Youneedtomaintainarhythmby of course, but this can put it into per- vate individual . . . you do it for the love Sotheby’sjewellerydivisionis Duringacareerspanningmorethan Jewellery Division. attemptingtoorchestratemomentsof spective.It’sverystimulating.” of the jewel — you don’t necessarily growing.Itsworldwideturnover 35yearsatSotheby’s,MrBennetthas drama . . . Ithasalottodowith Although Mr Thompson is running want to start buying jewellery with a climbedfrom$190min2009to witnessedwhathereferstoas“the carefullyplacinglotsthatarelikelytobe the diamond class, external speakers viewtoincreasingthevalue.” $602.5mlastyear,itsrecordhigh.The globalisationoftheauctionbusiness” hotlycontested,spacingthemoutand are also brought in so that clients have Later he explains that he wants peo- divisionisnowtheauctionhouse’sthird andidentifiesthe1987saleofthe attractivethepiecesare,butitalso buildingexcitement.” access to independent expertise too. ple to feel more comfortable in their largestdepartment,accountingfor DuchessofWindsor’sjewelsas“thereal dependsuponwhatisonofferhesays. Enthusiasm,charismaandknowing Bonhams intends to roll out more mas- knowledge before buying. “You can’t some10percentofannualturnover. watershed”. Havinggoodcontactwithclientsisas whentochangethepaceofthe terclassesinmainlandChina. just drive in and spend a whole load of “Jewelleryissomethingthat, “ThepresaleexhibitioninNewYork vitalasgoodknowledgeofthefield,he proceedingsareallvitalcomponentsof ThepeoplewhoattendChristie’smas- money.Ithinkanauctionisagoodplace generally,everyonepossesses;ithasa attractedsuchunprecedentedlarge adds. beingagoodauctioneer,saysMr terclasses,whichtheauctionhouseruns to start familiarising yourself to under- farmorediversifiedownershipthanart, crowdsthatthequeuetogetintoour “Youcanhavethepossibilityof Bennett. globally, often have their own jewellery stand what it is you’re after. Definitely forexample,”saysMrBennett. gallerieson72ndstreetwasamilelong,” turningupthecompletelyunexpected. “Ifeelitisimportanttobeawarethat collectionandwanttoknowmoreabout take smaller steps, ask lots of questions, “Becauseofthat,itoffersanatural herecalls. “Theworld’spresscame;we “Onefamouscollectionwesold animportantauctioncanbelikeapiece what they have in their possession, says gotoavarietyofplaces.” first-entrypointintoouroverall hadexhibitionsaroundtheglobe,and recentlywastheculminationofa oftheatre. MsHardy. Nonetheless,MsHardythinksgreater business.Itsuniversalappealisclear satellite-connectedauctionrooms . . . relationshipbuiltovermorethan15 “Peoplearesitting,sometimesfora And of course, she adds, “there are understandingisbeneficialall round. fromthehightrafficweseetothe Itinjectedahugeamountofvigourand years,whichinvolvedvisitingthe coupleofhoursatleast,andoneneeds people who want to further their collec- She says: “They [participants] enjoy jewellerypagesofourwebsiteandthe enthusiasmintothejewellerybusiness individualinaEuropeancapitalon todevelopakindofsixthsenseastohow tion, people want to know what they’re thejourneyofdevelopinganeyeandthe phenomenalenthusiasmthereisfor internationallyandsparkedanew numerousoccasions. tokeeptheirattentionandmaintain buying”. knowledge.That’sagreatassettoevery- jewelleryonsocialmedia.” interestinjewelleryasanartform.” “Whatbeganasabusiness thatsenseofexcitement. The proliferation of information on body. Jewellery will be appreciated by a Anauthorityinthefieldofgemstones Decidingwhatgoesintoanauction— relationshipendedupbecominga “Iconsiderthataveryimportant the internet has also made people more wider audience. You see different jewels andjewellery,MrBennettisknownas andcreatingsaleswithasmuchvariety friendship,insuchawaythatwhenthe elementinthesuccessofamajor aware of the jewellery that is available, being worn, being offered — the market the100-caratman,havingsoldseven, aspossible—reliesonqualityandhow decisionwasmadetosellthecollection, jewelleryauction.” shesays. willrespondtothat.” Exhibition reveals China and Cartier’s shared influences

have since invited Cartier to showcase Although jewellery, watches and expert,whohascuratedthreeofthefive platinum and diamond rose clip brooch Sichuan Museum these precious antiques — the British clocks dominate, various objects fur- Cartier Collection shows in China, says: createdforPrincessMargaretin1938. Museum, New York’s Metropolitan ther showcase “The ideas and craftsmanship behind Cartier’s floral clocks and carved The Making of Art show was Museum of Art and Moscow’s Kremlin, Cartier’s range, these western treasures reference and agate animal figurines also feature and two years in the making and among them. The Chengdu show, two such as bejew- fuseChinesecharacteristics.” segue into the final room of museum pairs antique pieces from the years in the making, marks not only the elled evening TheallusionsarenotlimitedtoChina. works.Amongtheoldestpieceshereare 30th such show, but also the fifth to be bags from the jazz MrSonghasselectedJapanese,Egyptian 12 gold objects from the Song Dynasty jeweller with eastern works stagedinChina. age. Displays de- and Mughal-inspired designs, including (960-1279)—includingcarvedbuyao,or of art, reports Ming Liu Each exhibition is independently voted to the lavish col- anecklacewith2,390diamonds. dangling hairpins. A selection of about curated and unique. In Chengdu, 13 his- lections of Cartier cli- The jeweller’sfamed 1928 Tutti Frutti 20 jade pieces are also on display — dec- toric creations are being shown for the ents — including Napoleon bracelet is also displayed. The bold orative jade pendants and belt hooks Shortly before Chinese new year in Feb- first time, including a magnificent 1934 III’s wife, Empress Eugenie, Eliza- coloured, multiple-stone-set piece is among them — most of which date from ruary, Cartier opened its first stand- necklace, with 27 imperial jade beads beth Taylor and Gloria Swanson — Pieces from Cartier’s “Indian-inspired in that we mix tradi- theQingDynasty(1644-1911). alone boutique in China — in Chengdu, and a calibre-cut ruby clasp, that was addcelebrityglitz. collection, a butterfly tional stones such as rubies and emer- There are also educational displays. thecapitalofSichuanProvince. owned by the Woolworth’s heiress Bar- However, it is the exhibition’s “ADia- (1945) and dog (1912) alds,”says Mr Rainero, “[but] with blue Centuries-old jewellery and decorative The opening marked the jeweller and bara Hutton. Cartier picked up the gem logue with the World” section where sapphires, it is totally Cartier and not art techniques — including silversmith- watchmaker’s 36th outlet in China, but at Sotheby’slast year for $27m, setting a China and Cartier’s shared design influ- Indiananymore”. ing and Shu brocade, which originated the three-storey, 1,000 sq m space — in recordforjadeiteandthehouseinturn. encescometothefore. The show’s final sections shine a light inSichuan—areexplained. the heart of a metropolis that is home to The Cartier Collection is “about shar- A collection of mother-of-pearl inlaid on local culture, naturalism Theshow’sintentionisto“openawin- some 25,000 millionaires — was only ing culture,” says Pierre Rainero, jewellery cases showcases Cartier’s use and the museum’s own dow for understanding how the art of oneofseveralspringcelebrations. Cartier’simage,styleandheritagedirec- of traditional Chinese techniques. Else- works. Sichuan prov- jewellery-making developed,” says Xie In April, the Sichuan Museum tor, who adds that the exhibitions bring where, works of Chinese art are crafted ince is known for its Zhicheng, the museum’s vice-director. unveiled The Making of Art exhibition, Cartier’s rich, 168-year history to the intoobjectsforwesterntastes,suchasin natural beauty, a The show looks at “China — and indeed a showcase of more than 300 historic largestnumberofaudiencespossible. Cartier’sinterpretationsofsnuffbottles, fact Mr Song com- the eastern world’s — influence on glo- Cartier creations, paired alongside 87 The exhibition, which runs until 28 paintbrush holders and one-of-a-kind plements with baldesign,trendsandinnovation”. works from the Sichuan Museum, the July, has seven sections, with four dis- chinoiserie clocks. China’s decorative Cartier’s exten- The museum expects more than largest public museum in southwest tinct themes. The first is a historic nar- motifs also spurred the creation of an sive use of flora 200,000 visitors to the exhibition. China. rative of Cartier style, from Garland individual Cartier style, such as a 1928 andfauna. “They’re always a blockbuster,” says The Cartier pieces hail from the mai- designs to art deco creations and culmi- carved coral and emerald Chimera ban- Many of the Cartier’s chief executive Stanislas de son’s globetrotting Cartier Collection, a natingintherevivalofgoldinthe1960s. gle, which pays homage to an eastern designs are as Quercize. 1,500-strong assemblage of one-off Works date from an 1850s yellow gold green-and-red palette, but with Cartier noteworthy as “There are always queues [in China] works that Cartier has been acquiring and amethyst parure (set of matching usingemeraldsinplaceofjade. the personalities — people are fascinated . . . It’sopening since 1983. Museums around the world jewellery)toa1980stigernecklace. Song Haiyang, curator and jade who wore them, for example a thegatestoincredibletreasures.” Friday 5 June 2015 ★ FINANCIALTIMES 13

Watches & Jewellery

‘It is a new retail category — accessible’ Story of a piece The Empress Eugénie pearls David Chu “Thepriceisaccessible—we’ve Interview createdanewretailcategory.” of Georg Jensen has Thejewellerypropositionhasbeen In 1854, a year refocused the business cutfrom570modelstoabout300.A after she collaborationwithjewellerydesigner married and hopes to win a JordanAskill,basedonarepetitive Napoléon III, silverbutterflymotifwilllaunchin Eugénie de younger audience, says September2015. Montijo struck Jessica Diamond “It’sinourDNAtocollaboratewith a magnificent otherdesigners,”addsMrChu.Marc profile on NewsonhasdesignedaGeorgJensen canvas. avidChu,chiefexecutive limitededitionsilverteasetthatisdue Dressed in andchiefcreativeofficerof tolaunchinOctober2015andfurther a vivid yellow gown, the last DanishbrandGeorgJensen designprojects,withseveralhigh- empress of France had chosen a usedtolivethreeblocks profilenames,areintheearlystagesof particular pair of earrings from her D fromtheMadisonAvenue development. extensive collection to wear for GeorgJensenstoreinManhattan. Inthenextthreeyears,MrChu Franz Xaver Winterhalter’s oil “Iwouldwalkpastiteverydayand intendstoinvestheavilyinretailspace, portrait: two natural grey pearls, occasionallygoin,”hesays.“Sometimes withplansforadozenstoresthisyear. each suspended from a 3.01ct old I’dseebeautifulproduct,butI’dnever RecentopeningsinOsloandMunich mine brilliant cut diamond and seeanychanges.Itwaspresentedlikea andtherefurbishmentofthe mounted in silver and yellow gold. museum.” Copenhagenstorewillbefollowedby The painting was unveiled at the Twoyearsago,MrChuwasgiventhe therelocationoftheLondonflagship 1855 Exposition Universelle on the chancetotakecontrolofthebrand. fromBondStreet(whereithasbeenfor Champs-Elysées and is currently on ThechiefexecutiveofInvestcorp,the 80years)tothemorenicheenvironsof display at the Metropolitan privateequityfirm,andalongstanding nearbyMountStreet. Museum of Art in New York. friend,calledMrChu,knowingthathis MrChuisunfazedbythepotential Now the earrings will be offered recordasfounderofUSsportswear dropinfootfall,believingthenewarea for sale by New York jewellery companyNauticaandascreative offersamoresuitableclientele. house Siegelson at Masterpiece directorofTumiluggagehadboth “Jensenisn’taluxurybrandinthe Fair in London, (June 25 - July 1), provedcommerciallysuccessful. samewayasGrafforLouisVuitton. with an ‘asking price’ of about HewantedtodiscussbuyingGeorg We’remoreaboutdesignandIthinkthis $10m. JensenandinvitedMrChutovisitthe movewillattractayounger,cooler Following the fall of the Second brand’sheadquartersinCopenhagen. audience.”AdditionalLondonoutletsin Empire, the defeated Napoléon MrChuwasimpressedandshortly theRoyalExchangeandretailvillage abdicated. It is thought the family afterwards,inNovember2012, David Chu adjustmentsmadetothecasesofthe offeringretailedforlessthan£1,000. Westfieldhavealsoopenedin2015. relied on the sale of the jewels that Investcorp’sbidof$150mwas intends to invest iconicKoppelandViviannawatches MrChudecidedtomovethepricepoint MrChuisalsoplanningalifestyleand Eugénie smuggled to England successful. heavily in retail launchedbythebrandin1977and1969 tomorethan£1,000byintroducing retailconceptinBeijingattheendof when she fled from France. Sincehisappointmentinearly2013 space respectively.Instead,MrChu moregoldandpreciousstones.Results September2015.Athousandsquare Around this time the earrings MrChuhasrefocusedallareasofthe concentratedontheinnerworkingsof arealreadyvisiblewithgoldjewellery metresofspacewithinatraditional were acquired by George Crocker, business.“Isteppedbackforaboutsix thetimepieces. salesnowrepresentingmorethan50 hutong(narrowstreet)willbe vice-president of the Southern monthsobservingeverythingfrom “Westartedplanningayearagoto percentofalljewellerysales,withan renovatedtoprovideretailspaceto Pacific Railroad, for his wife, Emma productlinestoseniormanagementto developourwatchoffering,by averageretailpriceof$1,500. includewatches,jewellery,men’s Rutherford Crocker. retailspaces,”saysMrChu. incorporatingETAandSoprod Anewcollaboration,withethical accessories,silverwareandacafé. The pearls passed to the “TheDanishmanagementwasgood, movements,”saysMrChu.“It’s miningcompanyGemfields,also CalledtheHouseofJensen,MrChu Crockers’ daughter and were buthadfailedtotakeittoaglobal importantthatourwatchesareSwiss ensuresareliableandconstantsupply ‘I stepped hopestorollitoutacrossAsia,knowing acquired by another American position,soIstartedhiringthebest madewithSwissmovements.” ofemeraldsandrubies,incorporated thatthisnewterritoryforthebrandis industrialist, Henry R. Benjamin. His internationaltalent.”Heappointeda Theindependentmovementmaker intopiecesthatwereshownatBasel, back . . . centraltoitssuccess. wife wore them on Christmas Day dedicateddirectortoeachproduct Dubois-Déprazisalsousedinthenew includingRuna,ahigh-endjewellery observing Heiscautiousbutoptimisticabout 1925 and their daughter, Anne category—jewellery,watches,silver, semi-complicationswithintheKoppel collectionwithlargecabochonemerald thefuture.“Whenweboughtthe Rogers Benjamin, selected them for men’saccessories—anddividedthe range.MrChu’splanistofocuson beadsthatretailsfrom$232,500. everything company,wetookallthedebtout— her 1941 “debut” in New York. She businessintothreeterritories—North design,whilemaintainingthequality MrChubelievesthemarketforthis from we’redebt-free,andwe’llinjectmore married Robert Raymond Barry, a America,EuropeandAsia. andprecisionneededtopositionJensen pricepointisscatteredglobally.“Wesee moneythisyearandnext.Iwant Republican member of the House ThisyearsawGeorgJensenreturnto watchesamongcrediblecompetitors. purchasersinLondon,Tokyo,Taiwan product double-digitgrowtheveryyear—about of Representatives. Their daughter Baselworldfollowingafive-yearhiatus. Historicallysilverjewelleryhasbeen andSydney . . . Andinterestingly,those lines to retail 10-20percent.Sometimes,itdoesfeel was the last owner of the pearls Atfirstglance,theproductpresented themainstayoftheGeorgJensen whobuya$150,000pieceofsilver likea110-year-oldstart-up,butmost before they came to Siegelson. didnotlookverydifferentfrom businesssinceitwasfoundedin1904. hollow-warefromus,arealsobuying spaces’ importantly,theteamisreallyfired Camilla Apcar previousofferings,withminor Consequentlythelargestjewellery high-endjewellery. up . . . andwe’reallontherighttrack.” Heirs to a dynasty recount a passion for Rome and gems

Books The Bulgari brothers have produced a history of the city and jewels that inspired them, says Giulia Segreti

“Thereisgreatprideinthepastand[in] what has been done by past genera- tions,” says Nicola Bulgari, the vice- chairman of Bulgari, the jewellery maker, referring to his father Giorgio, his uncle Costantino and his grandfa- therSotirios. And it is that shared past that Nicola andhisbrotherPaolo,chairman,together with author Vincent Meylan, reveal in theirbookRoma,Passion,Jewels. For the first time, the Bulgari heirs unveil the human side of the luxury Memory lane: Nicola (left) and Paolo Bulgari reveal the story of the brand empire,foundedin1884.Theyrecallthe many milestones in the company’s rise Parisinthe1950shelpedBulgari’ssigna- wood celebrities buying its jewellery. tosuccess,bothinItalyandabroad. ture grand jewellery, set with flamboy- But more specifically, the legendary Initially conceived as a simple collec- ant coloured gems, win appreciation, boutique in Via Condotti became the tion of mementos, promoted by Bul- first in western Europe and then in the place where many went — even just to gari’sheritage section, to be given to the US,RussiaandAsia. be seen. “It was a curious gem, that had maison’s best clients, the project Rome is the setting for most of the tobevisited”,explainsNicola. expanded and became a book, celebrat- brothers’vividmemories.Thecityisthe The brothers’ stories often describe ingthebrand’so pulenthistory. heartandinspirationforboththefamily friendships: with arts patron Count Vit- “[The book] has provided me with a and the business and is where the com- torio Cini; socialite Dorothy di Frasso; unique opportunity to talk about pre- panybegan. director and screenwriter Luchino Vis- cious stones as I see them and to retrace “Rome is about an emotional factor, conti; and conductor and pianist Sir the story of the company through them, aesthetics,affection . . . somanythings. AntonioPappano—andmanybeautiful the extraordinary people who have fea- Everythingwasbornhere,”saysNicola. women, including Italian actresses tured in my family’s life and the thou- In the book, the city is the elegant SophiaLorenandAnnaMagnani. sand sources of inspiration for our jew- backdrop to parties, meetings, jet-set But it is Elizabeth Taylor who is most els,”saysPaolo. occasions, family gatherings, work and associated with Bulgari. “She used to The book is in the form of two inter- the second world war. During the war, meet discreetly with Richard Burton in views: with Paolo on Via Condotti in their uncle Costantino and his wife hid thesmallsalon[intheViaCondottibou- Rome and Nicola on Fifth Avenue in persecuted Jews in their flat and their tique] which has a private entrance. NewYork. parents welcomed Greek prisoners flee- Very often he would buy her a present: The Bulgari jewellery empire was ingfromconcentrationcamps. emeralds,diamonds,”saysPaolo. started by Sotirios, a Greek immigrant However,althoughcelebritiesenliven silversmith, who left his country for Roma Passion the tales of the Bulgari brothers, it is the Italy.HeopenedhisfirstshopinNaples, Jewels family that is the book’s true protago- butwassoonburgledandleftthecityfor by Vincent Meylan nist. “Family is important; it gives an Rome,wherehearrivedpenniless.After Electa, €40 added value [to the brand] and a saving money by selling silver from a 144 pages strongermeaning,”saysNicola. friend’s street trolley, he leased a small Published 2015 Bulgari was bought by Bernard shop on Via Sistina. As success grew, he Arnault’s LVMH in 2011 for $5.2bn. In opened many other boutiques, includ- 2013 Italy’s finance police seized assets ingtheoneonViaCondotti. worth €46m belonging to Bulgari in an After visiting Paris in 1908, Sotirios’ The brothers recall the days of the so- investigation over alleged tax evasion. son Giorgio, inspired by the classical called Dolce Vita of the 1960s, when Thefamilydeniesanywrongdoinganda Parisianschoolofjewelleryandwiththe Rome attracted many foreigners, trialisduetostartinOctober. support of his brother Constantino, mainly wealthy Americans, and gained TheBulgaribrothersarestillinvolved bravelymovedintofinejewellery. international visibility as it became the in the business following the sale of Sotirios died in 1932, leaving the setting for many Hollywood movies. their controlling stake to LVMH. Paolo empire in the hands of his two ambi- Bulgari thrived in parallel, with mag- designs high jewellery while Nicola tious sons. Giorgio’s numerous trips to nates, heiresses, nobility and Holly- advisesonheritageandpatronage. 14 ★ FINANCIALTIMES Friday 5 June 2015