The $15M Pocket Watch for Lost Time
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FT SPECIAL REPORT Watches & Jewellery Artisan hero Tech luxury ‘Read my pins’ The sensational Diamond-encrusted Madeleine Albright style of smartphones on her collection Slim Barrett are here My favourite pieces New romantic Page 14 Hold the line Page 16 Page 13 Saturday September 6 2014 Saleroom star Apple makes up The $15m pocket watch for lost time The most eagerly awaited smartwatch is imminent. Will it disrupt the Swiss watch industry, asks Elizabeth Paton onsumers have been bom- invested heavily in wearables. But traditional watch brands and barded by smartwatch Analysts at Kepler Cheuvreux esti- analysts say the risks have been over- launches by some of the mate that more than $3bn was spent stated, and see opportunities. world’s biggest technology on smartwatch research and develop- “The implications for us of a rise in companies in the past year. ment in 2013. wearables are clear,” says Jean- CThe fast-growing – and often-hyped – In the race to bring mobile commu- Claude Biver, LVMH president of wrist wearables sector is crowded nication to wrists, Apple has made watches and jewellery. “Adapt to this with new entrants – and the stakes big-name appointments, some of them new business model and don’t under- are about to get higher. from the ranks of Swiss brands owned estimate the technology. The most eagerly anticipated smart- by LVMH, the French luxury goods “But, at the same time, don’t forget watch is likely to be revealed next group. that it is not the first revolution expe- week. Apple is expected to unveil its The technology company poached rienced by the watch industry – and it smartwatch on Tuesday at a launch Patrick Pruniaux from TAG Heuer will certainly not be the last.” event near its California in July, where he had been vice- Swiss watchmakers have further headquarters. president of sales. reasons to remain confident, says Jon Long called the iWatch by industry Press reports have suggested the Cox, head of Swiss equities at Kepler observers but likely to be launched rise of wearables could lead to prob- Cheuvreux. Photo: Charlie Bibby under a different name, the device has lems in the Swiss watch industry on a “The industry has modernised in been the subject of speculation not similar scale to those of the so-called the past few decades,” he says. “It is The most expensive watch in the in Geneva in November with an auction in 1999 when it fetched only among rival technology compa- “quartz crisis” of the 1970s, when far more in control of its distribution world at auction, the Henry estimated value of $15m. more than $11m. It is the most nies but also within the Swiss watch inexpensive imports from Japan operations and quality control.” Graves Supercomplication, will go The watch, created by Patek complicated hand-made watch industry – and with good cause. threatened to wipe out mechanical under the hammer at Sotheby’s Philippe in 1925, last appeared at ever made. (See Page 6) The technology industry has watchmaking. Continued on page 3 2 ★ FINANCIAL TIMES SATURDAY SEPTEMBER 6 2014 Watches&Jewellery Small company reveals mighty ambitions Interview: Jean-Marc Pontroué, chief ‘You can favour another executive of Roger Dubuis, believes his young brand, but ours should brand deserves high status. By James Shotter be one of the top five’ oger Dubuis is one of the sales in Asia, 30 per cent in Europe, smaller watch companies CV: Jean-Marc Pontroué and 20 per cent in the Americas. in the portfolio of However, he plans to make cuts in Richemont, the Swiss countries including Spain and Italy, luxury goods group. But Education Ecole Supérieure de where there is neither sufficient local Rits leader has big ambitions. Commerce de Nantes or tourist demand to justify a “I always say you can favour presence, and bulk up in others another brand,” says Jean-Marc 1995 Joins LVMH, working at Givenchy where the watch market is booming. Pontroué, a Frenchman who has Countries at the top of the list been chief executive since 2011, “but 2000 Joins Richemont and works at include South Korea, where Roger if you are after an exceptional Montblanc, overseeing the brand’s Dubuis is opening three boutiques timepiece, Roger Dubuis should be diversification this year, and Saudi Arabia, where it one of the top five.” will open its first. The brand is also That would be quite an ascent for 2011 Becomes chief executive of Roger investing in China, the US, the a brand that has been in existence Dubuis Middle East and Macau. only since 1995, when it was founded Just three years after it arrived as an independent company by Roger there, the Chinese territory is now Dubuis, a Genevese watchmaker who Roger Dubuis’s largest market. had previously worked for Patek profile, however, Mr Pontroué is New stores do not come cheap, Philippe, and his business partner keen to stress that he does not want particularly in locations, such as and designer, Carlos Dias. the brand – whose watches are London’s Bond Street or Zurich’s In 2008, the brand – which makes known for their extravagant designs Bahnhofstrasse, that are favoured by only mechanical watches, complying and sell on average for €50,000 each luxury watchmakers. with the stringent standards of the – to grow so fast as to lose its aura Mr Pontroué says that the poinçon de Genève, the city’s seal of of exclusivity. overhaul of the brand’s distribution, quality for watchmakers – was Analysts reckon that the marque as well as the additional staff needed bought by Richemont. This was a now produces between 4,000 and for the new stores, will account for a difficult period, as the company 5,000 watches a year, and while Mr fair share of investment this year. battled with the economic downturn Pontroué will not confirm this, he But as befits a brand that prides and an excessive range of products, makes clear that the upper limit, at itself on the originality of its say analysts. least in the medium term, will not collections, Roger Dubuis will devote “Along with Baume & Mercier, it be substantially higher. sizeable resources to research and was certainly among the brands that “We will not produce in the next development. needed a lot of investment and that five years more than 6,000 timepieces “We are investing significantly weighed on Richemont’s margins for [a year], even though we could, and more in R&D, in terms of its share a while,” says René Weber, at Bank we have the demand,” he says. “We of our expenses, than any other Vontobel in Zurich. “But in the past will not exceed this number.” brand in our industry. I would say it few years, things have improved.” Nevertheless, the 50-year-old is about five times more,” Mr Like all Richemont’s brand chiefs, Breton – who worked for Pontroué says. Mr Pontroué declines to provide Richemont’s Montblanc for 11 years “We came with a world premier at details of his fiefdom’s revenues – and oversaw its diversification – says JeanMarc concentrate on what we have.” of our distribution needs to be the last SIHH,” he adds, referring to which analysts reckon were about he aims to increase the amount of Pontroué: The brand currently sells through changed over the next five years, by Roger Dubuis’s Excalibur Quatuor, €60m in 2013 – or its profits. But he business Roger Dubuis does with its overhauling about 200 outlets, 20 of which are its closing branches in some cities, by the first silicon watch incorporating says that – perhaps unsurprisingly, network of retailers worldwide. distribution own boutiques. Although Mr closing points of sales that are not four sprung balances, which was given its size – Roger Dubuis has “If you want to develop your Pontroué plans to keep the overall relevant any more for our brand launched at the Geneva trade fair in been Richemont’s fastest-growing business, either you increase your number roughly constant, there will strategy,” he says. January 2013. marque for each of the past two number of points of sale, or you be some change in where the stores He is broadly happy with the “And we will come next year again years. concentrate on what you have,” he are located. geographical spread of the brand, with a world premier. R&D remains Despite his ambitions to raise its says. “We have made the decision to “We know that about 25 per cent which currently has about half its one of our priorities.” Inside Watches &Rotonde Jewellery de Cartier Astrocalendaire Sparkling Tiffany Sixties Cinderellas Strong sales at the US Mid-20th century pieces, Time display Winding crown Leap year jeweller after senior oncecalendar shunned by Amphitheatre indicator adjustment management changes display collectors, Tourbillon carriage are back Page 4 Winding weight Day, date and in month indicators demandPL950 stamp Limited edition Prosperity in Peru Deconstructed Page number 13 A surging appetite for The mechanisms behind luxury goods is driven by theSource: Cartier Rotonde de Cartier FT graphic an emerging middle class Astrocalendaire Page 4 Page 9 Slim Barrett Why the London-based Buccellati’s Green rubies designer stays true to his plans roots after 30 years Gemfields sources Private equity ethical stones in Page 14 partner pushes Mozambique change at Italian Glow head to toe Page 12 jewellery house Fine jewellers are creating Page 5 body jewellery with Bad-day brooches exceptionally high prices Patek’s 175th Page 15 Madeleine Albright, former Salerooms compete to US secretary mark the date, plus a of state, Old treasures short lifts the history lid on her On-the-road of the private valuations with super- collection Bonhams’ head of brand of treasures fine jewellery Page 6 Page 13 Page 17 Contributors Elizabeth Paton Giulia Segreti Rachel Felder, Rachel Steven Bird Luxury industries Rome correspondent Garrahan, Simoney Kyriakou Designer correspondent Robin Swithinbank Camilla Apcar Syl Tang, Kate Youde For advertising, contact: James Shotter Researcher, How to Spend It Freelance journalists Charlotte Williamson: Switzerland and Austria +44 (0)20 7873 4038, email correspondent Simon de Burton Helen Barrett [email protected], Nicholas Foulkes, Commissioning editor or your usual FT Adam Thomson Contributing editors, representative.