FT SPECIAL REPORT Watches & Jewellery Thursday April 25 2013 www.ft.com/reports | twitter.com/ftreports Sales flux spreads patina of caution Inside » BaselWorld New exhibition space brings The principal reason for light to lacklustre uncertainty is the experience of old clampdown on the giving of gifts in China, writes Page 2 James Shotter Emerald named fter three years of relentless growth, the path the Swiss colour of 2013 watch industry will follow Move to green gets in 2013 is less clearly sign- posted. boost from red ALast September, Swiss watch carpet exposure exports recorded their first decline since the financial crisis, and have Page 6 since oscillated sharply: up in October and November, down in December, up in January, down again in February. Time for safety These fluctuations have spread a patina of caution across the industry. Breitling to launch Nick Hayek, Swatch’s chief executive, second generation has spoken of the need to “calm down the spirits” on growth expectations. of Emergency with One participant described this locator beacon year’s Salon International de la Haute Horlogerie, the January fair at which Page 8 analysts say Richemont’s brands tra- ditionally book up to 60 per cent of their annual orders, as “serene, not Designers take ebullient”. “This year in one word? Unpredicta- organic approach ble,” says Thierry Fritsch, chief exec- Use of alternative utive of Chaumet, the Parisian jewel- ler-cum-watchmaker that belongs to gems raises LVMH’s stable of brands. concern over ethics The principal reason for the uncer- tainty is mainland China. The world’s Uncertain times: the slowdown in exports of Swiss watches to China reflects a wider deceleration in the mainland economy Getty Page 11 third-largest watch market – behind Hong Kong and the US – has powered growth in recent years but has slowed a sharp crackdown by the new presi- ing in China is going to be one of the remain relatively sanguine. “Through- executive of the independent watch- Robot revolution noticeably since the fourth quarter of dent, Xi Jinping, on the practice of determining features of the year,” out the bureaucracy, one set of heads maker Audemars Piguet, China’s last year. Exports of Swiss timepieces gift giving. says Jon Cox, head of Swiss research has been replaced with another,” says growth is still likely to compare Creative embrace to the country were down 23 per cent The practice has long been wide- at Kepler Capital Markets. Jean-Frédéric Dufour, chief executive favourably with other markets in the of 3D technology in January and February compared spread in business and political cir- “Greater China accounts for around of Zenith, another of LVMH’s brands. coming year. with the same period a year earlier. cles but has gained unwelcome promi- a third of the Swiss watch market. If “It will take a while for the system “If I am driving at 80mph and slow makes bespoke Although the slowdown is in part a nence following a series of corruption the Chinese stop buying watches as to settle down but I don’t think the down to 60mph, yes, it is a difference. items accessible reflection of destocking that followed scandals involving Chinese officials. gifts, the big question is how long can slowdown will last for long.” But if everyone else is only going a wider deceleration in the Chinese “It is rapidly becoming clear that sales hold up.” And, despite the hiccup, argues Page 21 economy, the main cause seems to be the impact of the clampdown on gift- For the moment, watchmakers François-Henry Bennahmias, chief Continued on Page 4 2 ★ FINANCIAL TIMES THURSDAY APRIL 25 2013 Watches & Jewellery The show’s organisers say a further the signature grey palette, modern- SFr430m has been spent by the 1,815 ised with the use of concrete and exhibitors on their design and con- glass, and softened with a “fishnet” New exhibition struction of stands. ceiling that diffuses the light. And what better place to flex your Hermès has played a different card, horological muscles, with this the moving away from overt references by only annual event where direct com- commissioning Japanese architect parisons can be made between brands. Toyo Ito to express the brand’s ethos Each stand is the concentrated in their shared philosophy of crafts- space brings essence of each company, with archi- manship, precision and love of natu- tects and designers hired to present ral materials. the latest products in an immersive Based upon a traditional Japanese and impactful environment, a “stand- teahouse, the exterior wall is clad in off’” in the literal sense. 624 slats of beech that undulate gen- light to dark old Bulgari, historically housed in a tly. Behind that sits a corridor of 165 separate and cavernous building, has plants (and presumably a good irriga- joined other international brands in tion system), and behind that the the new Hall 1. inner atrium houses the aluminium A huge, 82m walkway wraps around display cases, each milled from a sin- hall experience its stand, the bronze panels mimick- gle block of metal. Fabric coloured ing the Tubogas bracelets created in with natural dye using the Japanese the 1950s, and the spiral shape echo- Kusaki-Zome technique lines the inte- ing Bulgari’s Serpenti range. Large rior walls. All-in-all it adds up to an columns of black and pink marble are immersive experience in a luxurious sliced to frame its watch designs, Zen-like environment. while evoking the company’s Roman Hermès describes it as a pavilion, heritage. presumably “stand” being too generic Chanel’s stand is similarly recognis- a word. able. The company commissioned Finally, the standalone watch Peter Marino, the US architect, to brands. Visitors should expect acres design its stand, as he does all the of marble, etched glass, water features company’s boutiques. Like a giant light box, the mono- lithic structure emits white light from its back-lit skin, contrasting graphi- The shape of the upper cally with a linear black steel frame floors undulates gently in and black granite floor – all 200 tons a perfect exercise in Chanel’s restrained places and prevents New look BaselWorld In keeping with the signature monotones. Chopard has also opted for the any straying into a massive scale of the project, brand stands have familiarity of the store experience brutalist aesthetic with its stand inspired by its newly also had a makeover, writes Jessica Diamond designed boutique in Geneva (by architect Thierry Despont), and it makes sense. Although not primarily and overt references to aircraft, motor t was always a foregone conclu- ists to a space that banishes the Basel- doubt welcome relief from prolonged Swiss efficiency: the new BaselWorld a retail experience, Chopard is known racing and skydiving. sion that Herzog & de Meuron was World of old, an unremarkable series inspection through the jeweller’s building (above) took just 22 months to to sell significant pieces during the Scale is everything with the TAG going to design the new extension of buildings with no daylight, loupe. The reflective quality of the complete in time for this year’s fair show. Heuer stand, which took 100 people to the existing cluster of exhibi- nowhere to eat, patchy WiFi and mur- outer skin is designed to “regulate the Large expanses of oak panelling, seven weeks to assemble and materi- tion halls in Basel. The architects’ der on the feet. fall of natural light on adjacent prop- leather, silk and velvet all combine to als filling 50 trucks. Ipractice has been making its mark The new three-storey building is erties”. evoke a private home, with the furni- Bell & Ross greets guests with a across the city’s skyline for 40 years massive in volume, as it needs to be, The shape of the upper floors undu- ture in the VIP room designed by large visual of a replica cockpit, while with BaselWorld 2013 marking the with a ground floor glazed to add light lates gently in places, contrasting Jacques Garcia. Zenith’s visitors are reminded on a unveiling of its latest design. and lightness. The upper two floors with the precise and sharp corners of Dior, by contrast, plays heavily on huge screen of Felix Baumgartner’s At a cost of SFr430m and taking are clad in aluminium, seemingly cut others, and prevents any straying into its heritage. Its stand, double the size record-breaking skydive. With the only 22 months to complete, the into thousands of slits, that mostly a brutalist aesthetic. of last year’s, references Christian watches and jewellery year defined by project has been delivered with typi- obscure the interior void. Basel is surely delighted with this Dior’s obsession with the Palace of this eight-day show, the stands are as cal Swiss efficiency in time for the From inside, the wider apertures new addition, even if not as iconic as Versailles – its ballrooms, mirrors and much an expression of the brands’ arrival of 104,000 retailers and journal- allow views back across the city, no other Herzog & de Meuron buildings. geometric gardens, all wrapped up in message as the pieces they contain. Mixed messages on the value of all that glisters Gold Price fall will have instant effect in some cases but jewellery is more than the sum of its parts, says Claire Adler Theft of jewellery has risen by 22 per cent in two years, according to Churchill, the UK insurance group. A growing number of cash-for- gold services has made it easier for thieves, encour- aged by the soaring price of gold in recent years, to sell Going for gold: jewellers hope for better price stability AP stolen jewellery.