Published in European Urban and Regional Studies, 20, issue 4, 370-384, 2013 1 which should be used for any reference to this work

Staging experience, valuing authenticity: Towards a perspective on territorial development

Hugues Jeannerat University of Neuchâtel, Switzerland

Abstract Drawing on particular socio-economic theories, this paper discusses the implications for regional studies of the experience economy approach through the broader question of market valuation. Different forms of market construction are identified and compared with regard to distinct models of regional development. It is observed that most of established territorial innovation models give prominence to a technical form of market valuation driven by technological change, by localized innovative production and by the mobility of and services. Conversely, experiential valuation primarily points to alternative models of development focusing on the local capacity to set attractive and engaging stages and to exploit consumer mobility. While the former models have mainly been applied to export-based manufacturing, the latter have essentially been applied to leisure, entertainment and activities. The second part of the paper discusses the limits of technical as well as experiential market valuation in the case of the Swiss watchmaking industry. In such a case, experience in consumption and technology in production appears as strategic economic resources but what is primarily valued is authentic watchmaking. Authenticity is regarded as a third possible form of market valuation revealing specific socio-economic and territorial dynamics. The paper finally argues that market valuation should be considered as a key issue for future understandings of economic and territorial development.

Keywords Experience economy, authenticity, market valuation, quality conventions, territorial innovation models

Introduction ‘Welcome to the Experience Economy.’ With this Hauge and Power 2013). Which particular analytical catchphrase, Pine and Gilmore (1999) have described and conceptual challenges does such an approach the emergence of an economy in which business is imply for the comprehension of economic and territo- primarily made not out of a technical offering of rial development today? What are the scope and limits goods or services but out of consumers’ engagement of a potential ‘experience turn’ in regional studies? in ‘memorable’ experiences. In line with earlier work In the last few decades, regional studies have in marketing studies (Holbrook and Hirschman, mostly focused on production processes in order to 1982), they point to the place of symbolic, entertain- understand economic and territorial development. ing and hedonistic consumption in economic creation. Owing to the increased importance of cul- ture, leisure, events and tourism in territorial develop- Corresponding author: ment, this approach has more recently been addressed Hugues Jeannerat, Institute of Sociology, University of Neuchâtel, Faubourg de l’Hôpital 27, 2000 Neuchâtel, as a central research and policy agenda in regional Switzerland. studies (Freire-Gibb, 2011; Lorentzen, 2009, 2013; Email: [email protected] 2

Numerous researchers have analysed how particular possible form of market construction out of which local production systems innovate, succeed or fail in specific economic and territorial issues can be a global market driven by an increased mobility of observed. . In contrast, the experience econ- omy approach enhances the importance of consump- Technical and experiential market tion in economic processes. In this approach, goods valuation in territorial development and services are no longer valued as market outputs. Rather, they support the social performance staged Beyond a ‘productionist’ approach by a seller and experienced by a buyer. The con- to economic and territorial development sumer experience is what is sold. From this perspec- Regional studies have traditionally paid attention to tive, territorial development is based on the local production in order to explain territorial develop- capacity to stage and contextualize a valuable con- ment. Since the late 1980s, various territorial innova- sumptive engagement. tion models have pointed out how specific regional Drawing on particular socio-economic theories, this systems of production are able to compete in a glo- paper discusses the implications for regional studies of balized market (Lagendijk, 2006; Moulaert and the experience economy approach through the broader Sekia, 2003). Often inspired by an industrial approach question of market valuation. Different forms of mar- to economic development, such models have mostly ket construction are identified and compared with considered technological change as the main driver regard to distinct models of territorial development. of innovative production and regional competi- The first part of the paper compares the techni- tiveness. This technological perspective has more cal and the experiential forms of market valuation. recently been challenged by several studies that have It is argued that traditional ‘territorial innovation underlined the importance of cultural/creative activi- models’ (Moulaert and Sekia, 2003) often reflect a ties in urban or regional innovation, regeneration and technical market valuation perspective driven by growth (see, for instance, Cooke and Lazzeretti, technological change, by localized innovative pro- 2008; Power and Scott, 2004). Nevertheless, this duction and by the mobility of goods and services. in symbolic and immaterial resources within Conversely, experiential valuation primarily points economic and territorial development has mostly to alternative models of development focusing on placed the emphasis on the production and commodi- the local capacity to set attractive and engaging fication of cultural activity and has largely remained stages and to exploit consumer mobility. While the -orientated (Garnham, 2005). former models have mainly been applied to export- However, this ‘productionist’ perspective has based manufacturing, the latter have essentially been an object of criticism and several scholars have been applied to leisure, entertainment and tourism called for a renewed understanding of production activities. and consumption within regional studies and eco- The second part of the paper discusses the limits nomic geography (Coe et al., 2008; Grabher et al., of technical as well as experiential market valuation 2008; Malmberg and Power, 2005; Power and in the case of the Swiss watchmaking industry. On Hauge, 2008). Addressing territorial development the one hand, it is observed that, even though tech- nological development represents an essential issue from an experience economy perspective converges in the economic success of this industry, Swiss with this research agenda. It implies considering watches are no longer valued according to technical consumption as an essential process of value cre- use in a market. On the other hand, although con- ation whereby end-consumers ‘are the products’ of sumer experience contributes to their value, experi- their experiences (Pine and Gilmore, 1999: 63). ences are not directly what is sold in the market. In Besides the particular analytical and theoretical such a case, experience in consumption and technol- issues raised by the experience economy, this article ogy in production appear as strategic resources proposes a more general reflection on the question mobilized to value authentic watchmaking. The val- of production–consumption processes in market val- uation of authenticity is thus regarded as a third uation at large (Aspers and Beckert, 2011). 3

Conceptualizing socio-economic A second analytical dimension, notably devel- market valuation oped within the economics of conventions, empha- sizes the conventional construction of market Even though the market is largely regarded as a value. Whereas the relational perspective shows central economic mechanism, its socio-economic how actors and objects are positioned relative to construction often remains an unexplored ‘black each other, this approach draws attention to how box’ in (Berndt and Boeckler, this positioning is legitimized against particular 2009, 2010). This issue has, however, received shared equivalency principles. A market is there- more attention in other fields of social sciences. fore regarded not only as an arena of interaction Different theories have argued that the market but also as a socio-economic context governed by value of a good or a does not reflect a specific ‘quality conventions’ (Eymard-Duvernay, ‘Walrasian equilibrium’ (Walras L, 1900) naturally 1989; Favereau et al., 2002) to which actors refer established between a given demand and a given to ‘justify’ their actions and discourses (Boltanski supply. Rather, it results from a dynamic social pro- and Thévenot, 1991; Diaz-Bone, 2009; Stark, cess of valuation whereby particular actors (e.g. 2009). Conventions are not only perceived as con- producers, consumers or intermediaries) coordinate tractual principles upon which actors agree to and mobilize resources to assign a particular socio- facilitate their relations. Rather, they bear an insti- economic value to different market objects (e.g. tutional dimension in the sense that they exist goods or services). Based on a selective account of before, are reinforced by and live through individ- this rich research field, three central analytical ual relations (Bessy and Favereau, 2003; Hodgson, dimensions of market valuation can be stressed. 2007). Quality conventions do not establish a fixed Often highlighted in , a first configuration of objects and actors. They allow a analytical dimension deals with the relational dynamic of valuation by providing legitimate prin- construction of market value. In this approach, ciples in coordinated actions. Producers, consum- economic value results from a qualification process ers and intermediaries evaluate, test, adapt or based on a dynamic positioning of market actors innovate in reference to these principles. and market objects. Qualification involves A third analytical dimension, particularly ‘hybrid relations’ of cooperation, and addressed in anthropological and ethnographical influence among producers, intermediaries and research, stresses the transactional construction of consumers (Beckert, 2009; Grabher et al., 2008). It market value. In this approach, markets organize also implies a relational positioning of objects that around the social construction of equivalency are made comparable and distinguishable at the between an object and its exchanged counterparty same time (Callon et al., 2002). In some cases, pro- (Weber, 2000). In a market economy, this counter- ducers and consumers may qualify goods or ser- party most often consists in a monetary exchange – a vices primarily by comparing them with each other payment – taking place within an organized com- (e.g. comparison of products with similar function- mercialization process. The of a alities). In other cases, they may utilize them to good or a service is a particular form of commercial- acknowledge a mutual social status (Aspers, 2009) ization whereby an object and its monetary exchange or to engage with particular imagination (Beckert, substitutes, temporarily or permanently, for the 2011). In this qualification process, intermediary interpersonal transactions among producers, con- actors (e.g. journalists or opinion leaders) and tech- sumers or intermediaries (Testart, 2001; Weber, nical devices (e.g. awards, magazines or certifi- 2000). However, an exchange counterparty (e.g. a cates) often constitute crucial resources. Not only payment) can also be achieved through other forms do they make objects visible and identifiable, but of commercialization processes. For instance, folk they also allow social recognition or mutual music in Irish pubs is usually not commodified as engagement among actors (Callon et al., 2002; such but commercialized through the payment of Cochoy, 2008; Grossetti, 2008). food or drink. This valuation process implies, for 4

instance, reciprocal transactions among musicians, social status and seek to qualify and re-qualify the publicans and tourists (Kaul, 2007). technical attributes of different objects. In this sense, Building upon these three analytical dimensions, technical qualification is a fundamental process of market valuation is here conceptualized as a relational, objectivation (Figure 1). conventional and transactional process of qualification ‘Objectivated’ here means not that a good or a and commercialization. Qualification implies relations service is of Producers and Users value but that between actors and objects that are reflected in particu- socio-economic resources are essentially mobilized lar buyer–seller interactions and in particular interme- by actors around the construction and the character- diation processes. It is governed by specific quality ization of market objects. On the one hand, buyers conventions that are equivalency principles to which are users who draw on knowledgeable skills to eval- actors refer when mobilizing resources (e.g. dis- uate, compare and distinguish the use value of courses, culture) and developing ‘knowledgeable objects without paying attention to the identity of skills’ (Lave, 1991) in production, consumption, and sellers. ‘Is it useful?’ ‘Does it work well/better?’ ‘Is innovation. Commercialization implies specific trans- it (more) reliable/accurate?’ ‘Is it fast(er)?’ On the actions among producers, consumers and intermediar- other hand, sellers are producers who mobilize ies during which a payment is achieved at a particular resources to produce an object according to its stage of the valuation process. potential generic or dedicated use (Salais and Based on this comprehensive approach, the fol- Storper, 1993) and according to a strategic niche lowing sections put the experience economy approach identified through a mutual comparison (White, into perspective by positioning and comparing the 2002). idealized form of experiential market valuation with Technical quality conventions are institutionalized the idealized form of technical market valuation. Both in technical standards providing equivalency princi- are regarded as analytical categories highlighting spe- ples against which objects are evaluated and compared cific market relations, conventions and transactions, (e.g. technical measurements, manufacturing or which mirror not only specific economic issues but security standards) (Aspers, 2009; Eymard-Duvernay, also specific models of territorial development. 1989). These conventions are legitimized by technical discourses focusing on the characteristics of the object. Branding, marketing and communication strategies Technical market valuation: objectivating and are, for instance, designed to advertise the attributes of commodifying value in market the product rather than the identity of the producer. Technical market value is assigned to a good or a In this view, technological innovation in produc- service mainly according to its physical or functional tion is perceived as an essential form of economic characteristics, for instance ‘healthy food’, ‘a safe change and development. It drives the technical re- car’, ‘an accurate watch’ or ‘a reliable service’. In qualification of objects by improving industrial pro- these cases, market actors abstract from their mutual ductivity (the same use for a lower ) or by

Producer Objectivation User

commodification Innovation driven by technology in production final purchase

Local Certification Global

Figure 1. Technical market valuation. Source: own elaboration. 5

providing new technical attributes to a good or a ser- In other words, commodification is about organizing vice (improved efficiency or a new technical oppor- the ex ante qualification of the object and its final tunity for use). The adoption of a radically new purchase. technology within a market may replace older tech- nologies (Nelson and Winter, 1982) and redefine new legitimate technical quality conventions and techni- Experiential market valuation: consumer cal justifications. The objectivation process is also supported by experience as an end value in the market particular forms of intermediation between produc- For Pine and Gilmore (1999: 2), the market value of ers and users. On the one hand, it implies certifica- a coffee bought in St Mark’s Square in Venice does tion, consisting of testing and legitimizing technical not essentially rely upon the technical attributes of characteristics attributed to the object, regardless of the good or the service, for instance the selection of the producer–user relation. Technical standards coffee beans or the promptness of the waiter. It pri- (e.g. health, security, accuracy) are for instance marily results from the experience achieved by the controlled and acknowledged by external experts, buyer who drinks a coffee in a memorable environ- journalists, laboratories or schools and by institu- ment. In such a case, goods and services are ‘props tionalized technical certificates (e.g. a certified and stages’ that support a particular experience in competence in the objectivation of a service or a consumption (Pine and Gilmore, 1999: 11). Their certificate of accuracy in the objectivation of a quality is not objectivated and abstracted from buy- good). On the other hand, intermediation also ers and sellers. It results from their reciprocal, live relates to distribution, consisting of making the and situated relation during the contextual experi- technical attributes of the objects identifiable, com- mentation of a stage. The seller is a stager who dedi- parable and distinguishable for end-users (Cochoy, cates strategic resources to setting a particular social 2008). This implies giving end-users access to context of action, of interpretation and of interaction technical information without engaging in privi- in which the buyer engages as a guest (Pine and leged interpersonal relations along the distribution Gilmore, 1999: Figure 2). chain. Such a process of abstraction was typical of Quality conventions are about the ‘theme’ of an the Fordist philosophy according to which dis- expected experience and are not about the experi- tributors or retailers had to limit themselves to ence itself (Pine and Gilmore, 1999: 46). They communicating the attributes of the product instead enable market actors to justify and coordinate their of engaging in mutual relations with end-users activities through the setting of a particular stage. (Eymard-Duvernay, 1989: 340). For instance, in a festival organized on the theme of In addition, technical market valuation also ‘Medieval Times’, various stagers coordinate their involves a particular commercialization process activities (e.g. cooking, musical performance or based on the commodification of the object. craftwork) in reference to the Middle Ages. On the Commodification means that a ‘produced thing or one hand, experiential quality conventions enable activity itself is given a consumptive market value’ the stagers to harmonize positive cues (e.g. dis- (Kaul, 2007: 706). Hence, the object becomes the courses or artefacts) and to avoid dissonance while purpose of the market transactions whereby produc- staging an experience. On the other hand, they ers and users put their interpersonal relations ‘into enable the guests to identify attractive themes and to brackets’ to evaluate an object and establish its mon- adopt an adequate predisposition to enter an experi- etary counterparty (Weber, 2000). Ideally, technical ence (e.g. a pre-engaged or open attitude with regard information enables end-users to achieve a full to a promised experience). appreciation of the object before its purchase. Buyers In contrast to technical valuation whereby the are not interested in the seller’s identity. They do not characteristics of goods and services can ideally be maintain any loyalty to a particular producer after qualified as an end, the quality of an experience may the purchase. The producer–user transaction is thus be fully appreciated only once achieved by a con- exhausted and terminated by the monetary exchange. sumer. For Hutter (2011), this particular uncertainty 6

StagersGExperimentation uests

fee Innovation driven by Attraction surprise in consumption admission

Staged co-location

Figure 2. Experiential market valuation. Source: own elaboration. is at the core of a cultural economy driven by the raise different territorial issues. They also highlight valuation of surprise in consumption. For Pine and specific and challenging models of regional Gilmore (1999) as well, surprise is inherent in the development. experiential value of the stage. Stimulating, enter- In various ways, technical market valuation taining or renovating surprise in consumer engage- emphasizes an industrial perspective that has largely ment is therefore the central driver of innovation in inspired iconic ‘territorial innovation models’ experiential market valuation. This can be done (TIMs) (Moulaert and Sekia, 2003) such as indus- through a consolidation of the stage (surprise by get- trial districts (Becattini, 1990), innovative milieus ting deeper into an experience) or through the reno- (Camagni and Maillat, 2006) or clusters (Porter, vation of a theme (surprise through a new type of 1998). Although these models have built upon dif- experience). ferent theoretical traditions and analytical approaches In experiential market valuation, intermediation (Lagendijk, 2006; Moulaert and Sekia, 2003; primarily relates not to the certification and distri- Simmie, 2005), they do share fundamental concep- bution of goods and services but to consumer tual principles. attraction to a stage. Attraction may imply support- Originally, TIMs were built on the idea that glo- ing and facilitating the physical access or transfer balization implies new economic and competition of the guests to the stage. Above all, however, it challenges induced by the increased mobility of pro- deals with stimulating consumer knowledgeability duction factors (e.g. the relocation of production and expectations regarding an anticipated experi- lines or the mobility of workers) and of goods or ser- ence (Stamboulis and Skayannis, 2003). vices. This mobility leads to new spatial divisions of What finally characterizes the experiential mar- productive activities and to new export opportunities ket valuation is that the consumer experience is in on a global scale. Based on empirical observations, itself the purpose of the market transaction. For these models have pointed out how particular regions Pine and Gilmore (1999), it is the admission to the are able to compete globally through specialized or experience that is commercialized through the pay- specific productive resources embedded in local ment of admission fees (Pine and Gilmore, 1999: communities. A region is primarily perceived as the 62). Reinforcing the idea that surprise in consump- locus where a particular production system anchors tion is part of its value, an experience is assigned a itself (e.g. in a milieu, in a district or in a cluster) monetary counterparty before its achievement. within proximate organizational learning and techno- Experimentation occurs ex post to payment. logical innovation dynamics (Moulaert and Sekia, 2003). Local development is examined through the Technical and experiential valuations: contrasting lens of a global ‘production market’ (White, 2002) where distinct regional systems occupy strategic the approaches to territorial development niches of production. The relation between producers Technical and experiential market valuations point and end-users is mostly conceptualized in technical to distinct forms of socio-economic organization and terms: in the early phase of development, through a 7

sophisticated use (Porter, 1998); in a mature phase of approach, cultural events (festivals, exhibitions, market exploitation, through a distant and rather sport) are regarded as strategic tools that stimu- ‘aspatial’ use taking place on a global scale (Malmberg late and valorize local creative activities through and Power, 2005). This market organization essen- the promotion of an attractive image of place tially reflects a local–global dialectic: it is locally (Richards and Wilson, 2004). Place branding acts innovated and produced and globally used and sold as a market signal enabling local stagers to har- (Figure 1). monize their offering within a coherent theme of In contrast to these models, experiential market experience, and potential guests to identify an valuation implies considering territorial develop- experience promised by a particular destination ment not only through the spatial organization of (Blain et al., 2005). production but also through the spatial contextual- Hence, experiential and technical market valua- ization of consumption. In recent years, an increas- tions bring to light contrasting models of territorial ing number of studies have stressed the importance development. They point to different economic of the consumer experience in the economic valu- activities too. Whereas technical market valuation ation of regional products and activities. Pointing has mostly been applied to export-based manufac- to the increasing importance of culture, events and turing, experiential market valuation has mainly tourism in urban and rural development, various been highlighted in cases of leisure, entertainment studies have highlighted the economic value of a and visitor-based activities. Does an experience staged co-location of production and consump- economy approach provide some relevance also in tion (see for instance, Lorentzen, 2009; Richards, the case of export-based manufacturing? How does 2004; Scott, 2010). Territory is regarded as a stag- consumers’ experience relate to the market valuation ing system within which local activities and offer- of a good that is produced and consumed in distant ings draw competitive economic value from the places? specific and contextual memorable engagement of In the next part of this article, these questions consumers. are addressed through the case of the Swiss watch- In experiential market valuation, the economic making industry. This particular case emphasizes a value of local natural and cultural resources can be third possible form of market construction whereby understood not only through their mobilization in technology, culture and consumer experience are creative and productive activities, but also through engaged in the socio-economic valuation of the social involvement of residents and visitors authenticity. (Scott, 2010). Goods and activities provided by firms and by local initiatives are the components of a stage setting to be performed through the valuable Authenticity as market valuation in collective and personal engagement of consumers the Swiss watchmaking industry (Wikström, 2008). Accordingly, the quality of goods and services is not dissociated from the quality of the The analytical and conceptual reflections provided place in which they are experienced. Considering the in the following section draw on empirical observa- experience economy in territorial development tions made within a larger qualitative study realized emphasizes not only particular place-based produc- between 2007 and 2010 in the EC FP6-funded proj- tion processes, but also particular place-based prod- ect EURODITE. The qualitative research was based ucts and consumption processes (Lorentzen, 2009). on document analysis as well as on semi-structured In contrast to territorial models of develop- interviews. On the one hand, a large review of print ment that are primarily inspired by the mobility magazines, websites and online forums launched by of goods and services, such a perspective gives watchmaking companies, umbrella organizations, prominence to the mobility of consumers: partic- media companies, auction houses, watch experts, ular regional activities are turned into attractions bloggers and customers was undertaken. On the for visitors and residents (Richards, 2001). In this other hand, 50 interviews were carried out inside 8

and outside watchmaking companies with chief During the 1980s, the production of mechanical executive officers, human resource managers, com- watches was nearly abandoned and the production of munication managers, marketing managers, journal- electronic watches was centralized and vertically ists, publishers, event organizers and representatives integrated within larger companies (Glasmeier, of watchmaking organizations. This data gathering 2000). An increased cultural and symbolic valuation provided knowledge about recent entrepreneurial of the design and the fashionable components of projects, about significant changes in corporate Swiss watches accompanied this industrial restruc- strategies and about valued discourses. It also turing. Around the same time, important interna- revealed the particular views that interviewees had tional luxury and fashion companies began to on the milieu in which they were involved. The establish factories in the Jura region in order to pro- place of end-consumers in the current development duce branded ‘Swiss Made’ watches. More and of the industry has been analysed by observing how more, Swiss watches became iconic products of watchmaking firms and intermediaries try to influ- social and symbolic distinction (Crevoisier, 1993). ence them and are influenced by them in their busi- Since the mid-1990s, notably driven by the rise of ness strategies. the luxury sector and by the increasing number of The empirical observations used in this paper are enthusiastic buyers in search of ‘exceptional’ watches, selective accounts from this research. They are Swiss watchmaking companies have progressively assembled in a comprehensive way to highlight a returned to the production of mechanical watches. particular evolution of the Swiss watchmaking sec- Characterized by a generalized move to higher-range tor during the last two decades. A particular focus is and higher-priced products, this technological revival put on the revival of mechanical watches and on the has extraordinarily increased the average value of importance of initiated consumption in the valuation Swiss timepieces. The export value of mechanical of authentic watchmaking within the marketplace. watches has trebled in the last 10 years and represents Although the following analysis particularly applies nearly three-quarters of the overall export value of the to high-end and luxury watchmaking, it also reflects Swiss watchmaking industry today. business and management issues that are increas- This evolution underlies important technological ingly relevant for middle-range watches. innovations (e.g. in materials, in micro-mechanical components and in industrial processing) that are stimulated by proximate learning and by complex Moving beyond the technical market relations of cooperation and competition among valuation of Swiss watches regional firms (watch producers and suppliers). Until the 1970s, the production and business organiza- However, interpreting the current economic com- tion of Swiss watchmaking was in many ways illustra- petitiveness of the Swiss watchmaking industry tive of a technical form of market valuation. Through merely as the success of a local milieu able to pro- specific and localized technical competences, Swiss duce goods technically better than somewhere else is watch manufacturers established in the Jura region and too restrictive. Mobile phones and rudimentary elec- in the city of Geneva had become internationally lead- tronic watches provide cheaper and even more accu- ing producers of mechanical watches. The particular rate time-giving tools in everyday life than a highly organizational and institutional structures of the sophisticated mechanical watch. The economic regional production system reflected important fea- value of Swiss watches is thus not primarily based tures of an industrial district (Donzé, 2009). With the on a technical use value in the market. rise of electronic technology and under the pressure of international competitors, the Swiss watchmaking industry fell into a devastating crisis between the Authenticity as the purpose of market 1970s and early 1980s (Glasmeier, 2000). This crisis valuation led the Swiss watchmaking sector to radical industrial How, then, should we characterize and analyse mar- and business transformations. ket valuation in the Swiss watchmaking industry 9

today? Since 2009, the Fondation de la Haute particular quality convention on which a distinct form Horlogerie (‘Foundation of Fine Watchmaking’) and of market valuation can be drawn and analysed. the Federation of the Swiss Watch Industry, which Inspired by Deleuze’s work (1990), Hertz represent most of the watch manufacturers estab- explains that the interpretation made by social actors lished in Switzerland, have been leading an intense of what is ‘real’ or ‘false’ relates to the idea they international anti-counterfeiting campaign under have about the resemblance of an object to its origi- the slogan: ‘Fake watches are for fake people: Be nal essence (Hertz, 2000: 42). Qualification of authentic. Buy real’ (see Figure 3). It is one of the authenticity can thus be regarded as the authentica- very few communication campaigns collectively tion of an idealized origin attributed to market supported by watchmaking companies. objects as well as to market actors (‘Fake watches Beyond the slogan, this catchphrase points to a are for fake people’). Valuing authenticity does not particular form of valuation that is neither technical mean conserving products and practices from an nor experiential. Quality builds upon the authentic ideal past. Socially constructed, authenticity is quali- status that is assigned to particular objects and actors fied and re-qualified in a perpetual ‘quest’ (Peterson, (‘be authentic’) through this essential question: ‘Is 2005: 1093) for an idealized origin implying innova- something/someone real or fake?’ (Gilmore and Pine, tion, negotiation or control around the legitimate 2007). This fundamental justification reveals a convention of authenticity. In this sense, considering authenticity market valuation as a prominent issue for the Swiss watchmaking industry today leads to analysing complex production and consumption pro- cesses in economic and territorial development (Figure 4).

Not producing authenticity but founding an idealized origin The idealized origin of an authentic Swiss watch is today largely embodied in the mechanical technology. This technology recalls the original technical know-how that has been developed in Geneva and the Jura region during past centuries. In this sense, technical competences are mobi- lized not primarily to improve the technical use value of watches but rather to justify the origin of authenticity. The capacity to develop and produce innovative and highly complicated mechanical movements in-house is regarded by manufactures as a major issue to justify their status of ‘real watchmakers’. The quality of Swiss watchmaking relates to the properties of the object (e.g. its technology) as well as to the social status of manufacturers that pro- mote their identity as original watchmakers. For Figure 3. Anti-counterfeiting campaign of the Fondation instance, the image of someone working with eye- de la Haute Horlogerie and the Federation of the Swiss glasses at a bench is largely used to represent this Watch Industry. Source: Fondation de la Haute Horlogerie and the Federation of status. The story of the manufacturers and of leg- the Swiss Watch Industry (2009). endary early watchmakers is told by specific books 10

Founders Authentication Connoisseurs Ritualized Innovation driven by experiences the perpetual quest of Ritualized Initiation an idealized origin purchase

Representative Representative consumption in the original production in original production the consumption milieu milieu

Figure 4. Authenticity market valuation. Source: own elaboration. and museums. Anniversaries of original logos, ‘producers’ of authenticity but funders of an initial original products or pioneer watchmakers are cele- and coherent socio-technical setting (e.g. goods, brated by older as well as younger brands to point services, discourses, repertoires or artefacts). to their origins. In such a valuation process, the Authenticity comes into existence and to market identity of the producer is merged within the ‘DNA’ value only through the individual and collective of the brand that qualifies a watch. Branding works interpretation developed by an audience (Beck here as a market signal giving coherence to, and and Wezel, 2008), which qualifies this setting as making identifiable, particular funding elements of ‘real’ or as ‘fake’. authenticity. Valuing an original essence does not necessarily mean valuing a long history. The notion of origi- Authentication as a dynamic process nality does not stay unchanged over time either. of initiation, legitimization and control It relates to the perpetual quest for an original End-consumers have to understand, subscribe and essence that underlies technological as well as non- contribute to the justification that qualifies ‘real’ technological forms of innovation. On the one hand, watchmaking. For instance, they have to know watchmaking companies must prove their legitimate about, and agree upon, the legitimate repertoire that technological competences by developing new con- is used to qualify a complicated watch or a historical cepts for watches, new mechanical complications brand. Authentication thus relies upon the adequate and new materials for display at major annual exhi- competence of an initiated audience whose members bitions. On the other hand, innovation also occurs engage as connoisseurs. through the development of parallel cultural activities. Consequently, initiation is a fundamental issue This implies, for instance, the editing of dedicated of intermediation in market. For instance, watch- publications (historical books, special issues and making brands increasingly develop training ses- dedicated publications), the production of multi-media sions for journalists, sales staff and enthusiastic supports (online editing, blogs or web television), end-consumers to initiate them into the historical the creation of stages (architecture of headquarters, and technical value of fine watchmaking (in French museums, exhibitions) and the organization of events ‘Haute Horlogerie’). Retailers also propose so- (Jeannerat and Crevoisier, 2011). called ‘spaces for connoisseurs’ in their shops However, the economic value of technological where one can learn about watch brands, watch his- and cultural creativity that has characterized the tory or watch technical specifications. They also development of the Swiss watchmaking industry organize particular events or workshops during in past decades cannot be restricted to a produc- which customers learn to assemble a mechanical tion process. Watchmaking companies are not watch. Consumers also initiate themselves through 11

online platforms, blogs, technical and historical Through participation in workshops, events and exhi- books and magazines. bitions or through visits to factories or museums, Driving the perpetual quest of authenticity, ini- consumers learn by experiencing the idealized origin tiation also promotes innovation. On the one hand, of watch brands. On the other hand, these stages companies mobilize important resources to upgrade establish a direct interaction between the idealized the knowledgeability of their audience. On the universe funded by the buyers and sellers. Directly other hand, this increasing knowledgeability pushes experienced by the consumer, the idealized origin watchmaking companies to develop even more staged by the founders of an authenticity becomes sophisticated watches or to upgrade the compe- lively legitimized and appreciated as real. The impor- tences of their sales staff. The market value of tance of these initiating and legitimizing experiences authenticity is thus not granted and established for watchmaking companies clearly appears in the once for all. It is permanently at stake through a fact that they generally refuse to sell their products on renewal of its founding elements (e.g. a new prod- the Internet. The stage of the watch shop must be uct, a new technology or a new cultural content) experienced before buying an authentic watch. and through a constant initiation of the audience Consumers are usually not charged for admission (e.g. the rise of influential connoisseurs). to initiating and legitimizing experiences. The mon- For watchmaking companies, this implies a con- etary transaction is thus postponed to the purchase of tinuous struggle to maintain and justify the legiti- the watch. Most often, the purchase occurs at a mate repertoires used to qualify their authenticity. particular moment in the initiation process and does On the one hand, they rely upon independent voices not necessarily bring it to an end. Today buyers tend to legitimize their discourses (e.g. journalists, retail- increasingly to buy more than one Swiss watch in ers, bloggers, auctioneers, collectors). On the other their life. In some cases, prestigious watch brands hand, they try to influence and control these same sell their most complicated and expensive watches voices through advertising agreements and through only to initiated customers already owning one of selective accreditations (e.g. the appointment of their simpler models. Commercialization in authen- legitimate ambassadors). Consequently, the perpet- ticity market valuation thus reflects a ritualization ual quest for authenticity is also a perpetual game of process (Weber, 2000) whereby experience and pur- control and autonomy between market actors. chase are achieved at particular points of the valua- tion process and in particular ritual places. Consumers’ experience not as an end but as a resource in market valuation Staging a continuity between In the last decade, the development of fairs, thematic production and consumption milieus exhibitions, museums, visits to manufacturers, train- From a territorial perspective, considering the mar- ing workshops and sophisticated shops has given ket valuation of authenticity points to particular more attention to the place of consumer experience issues that differ from a technical or an experiential in the market valuation of Swiss watchmaking. In perspective. Within the market valuation of authen- contrast to experiential market valuation, consum- ticity, the region can be regarded as a local funding ers’ memorable engagement is not, in such cases, system whereby technical and cultural resources are what is primarily sold. The market transaction mobilized to acknowledge and make coherent an remains centred on the purchase of the watch and the idealized origin. consumer experience is embedded in the broader In the case of the Swiss watchmaking industry, process of authentication. the original Jura region and city of Geneva can be On the one hand, watchmaking companies or regarded as a territorial founding system of authen- retailers rely upon initiating experiences to engage ticity organized around local technological and cul- their audience (e.g. consumers, journalists, brand tural activities. As observed, local micro-mechanical ambassadors) in an interactive learning process. know-how enables regional firms to develop 12

sophisticated products, to innovate and to create legitimate testament to their experience back to their employment. However, the market value of Swiss home region. watches cannot be reduced to a technical use. It also On the other hand, a representative production is builds upon important cultural resources (Kebir staged within the consumption milieu. Mono-brand and Crevoisier, 2008) that are mobilized through shops and travelling exhibitions launched by watch- additional activities developed and exploited by making companies seek to establish a presence within watchmaking companies (e.g. museums, publications, the consumption context. More and more, watch- exhibitions, architecture) as well as by external makers are exhibited in shops and in initiation work- actors (e.g. dedicated media, consultants in com- shops launched in various international cities. This munication, event organisers). territorial coupling is shaped not only by watchmak- Equally, this centrality of cultural activities can- ing companies, but also by retailers who organize not be dissociated from technological development. particular meetings with Swiss watchmakers or visits In other words, it is too restrictive to consider Swiss to Switzerland for their enthusiastic customers. watchmaking through the lens of a regional industry that commercializes culture as an end . Cultural and technological activities contribute Conclusion inseparably to the foundation of an idealized origin. In this context, labels such as ‘Swiss Made’, How to consider the relevance of an ‘experience ‘Poinçon de Genève’ or ‘COSC’ (Contrôle Officiel turn’ in regional studies? A possible way to address Suisse des Chronomètres) are utilized by companies this question could be to adopt Pine and Gilmore’s not only to certify the technical attributes of their (1999) proposition and to consider an ‘experience products, but also to authenticate their legitimate turn’ as the historical rise of a new predominant form status as original watchmakers. of economic development to be handled as a general Besides the foundation of authenticity, another ter- paradigmatic approach in regional studies. The ritorial issue relates to the authentication (initiation increasing importance of culture, leisure, tourism and legitimization) of the value of Swiss watch- and events (sport, art, festivals) for the attractiveness making across space. As already highlighted by and competitiveness of many regions today illus- different studies, an important part of the co- trates the necessity to place the consumer experience creation, diffusion and legitimation of cultural con- as a central issue for understanding territorial tents takes place at the level of global or ‘fashion cit- development. ies’ through globalized brand channels (Jansson and However, focusing exclusively on the rise of the Power, 2010). In particular, the cities of Paris and experience economy does not provide a sufficient Milan play a major role in cultural co-production understanding of innovation and economic pro- related to luxury, design and fashion activities in the cesses taking place within other relevant forms of promotion of Swiss watchmaking. However, beyond market valuation. In this sense, this article has con- global cultural trends relayed by major cultural cities sidered an experience turn in regional studies from a in the world, watchmaking companies establish a broader perspective that has consisted in highlight- more direct relation with their audience. This relation ing the central and fundamental research questions gives rise to a particular territorial coupling based on raised by the concept of the experience economy. It ritualized venues and experiential stages. has been argued that major conceptual and analyti- On the one hand, a representative consumption is cal issues addressed by this concept relate to the organized and staged in the original production milieu understanding of consumer engagement in eco- of Swiss watchmaking. Parts of factories, museums, nomic value creation and of socio-economic market exhibitions or touristic shops in Switzerland are ven- construction. The experience economy approach ues dedicated to a privileged audience (ambassadors, has been presented as a distinct form of market val- retailers, journalists, collectors, tourists) who engage uation whereby consumers’ memorable engage- in the original stage of watchmaking and who bring a ments are what is sold. This particular form of 13

market valuation challenges the views on techno- car making (see for instance, Beverland, 2005; Leigh logical innovation, on commodification and on pro- et al., 2006). ducer–user relations upon which iconic TIMs have Rather than opposing technical, experiential and been built in the last decades. It also leads to study- authenticity valuation, this article has pointed to the ing economic globalization not only through the importance of considering the socio-economic con- mobility of goods and production factors but also struction of the market as a central issue in the com- through the mobility of consumers. prehension of economic and territorial development Nevertheless, it has also been argued that consider- (Figure 5). Do we buy vegetables at a Saturday mar- ing the consumer experience only as a market output ket because they are healthier than in a supermarket provides a too restrictive lens for analysing economic (technical), because it is enjoyable to buy them in a and territorial development today. As highlighted in nice atmosphere (experiential) or because it is the the case of the Swiss watchmaking industry, the con- real way to buy them (authenticity)? If regional stud- sumer experience may contribute as a resource to the ies should not provide a single and exclusive answer, construction of other forms of market value. In this dealing with these questions certainly opens upchal- case, the importance of initiating and legitimizing lenging research issues and further investigation. experiences has been addressed within the particular Such reflection could lead not only to a renewed market valuation of authenticity. Facing increasing appreciation of different modes of market construc- competition in manufacturing and technological tion, but also to a new conceptualization of economic development, firms and regions, particularly in west- and social phenomena. ern countries, tend to develop and exploit new forms of economic value today. The case of the Swiss watch- Funding making industry is particularly illustrative of this phe- The study reported in this paper has been realized in the nomenon, and authenticity market valuation can be framework of the EU FP6-founded project EURODITE – applied to numerous other activities such as wine or Regional trajectories to the : a

Technical market Experiential Authenticity market valuation market valuation valuation

Qualification Objectivation Experimentation Authentication of an of products of the stage original status

Buyer-seller relation Producer-User Stager-Guest Founder-Connoisseur

Learning and Technology in Surprise in Perpetual quest of an innovation driver production consumption idealized origin Certification- Intermediation Attraction Initiation Distribution

Commercialization Commodification Admission Ritualization (final purchase) (admission fee) (ritualized purchase)

Territorial issues Local production Staged Coupling of production and global use co-location and consumption milieus

Figure 5. Technical, experiential and authenticity market valuation. Source: own elaboration. 14

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