There was both excitement and apprehension while attending this year’s edition of Baselworld. Excitement, because the most definitive show on luxury was celebrating its centenary this year, and apprehension because the luxury watch industry is going through its toughest period since the quartz crisis of the 80s, which threatened to wipe out the Swiss mechanical watch industry.
Basel has been witness to the best in luxury showcasing their latest to clients and media from across the world for exactly a century now. If the watches and jewellery on display are avant-garde, the marketing has been even more spectacular. The biggest names from Hollywood and sports are found at the glitziest parties here, and this year had names like Patrick Dempsey, Jasmine Sanders and the Chinese sensation Kris Wu coming down to promote brands.
Behind the gloss and glamour of the fancy parties, however, the watch industry is staring at an existential crisis. The reasons range from global recession, terrorism-affected geography, crackdown on corruption by major economies to emergence of smart watches by non-watch players, and the results have brought the Swiss watch exports back to the 2011 levels of 19.4 billion Swiss francs. The industry is feeling the pressure of two straight years of negative growth, last year’s fall being the steepest at 9.9%. Swiss watches dominate the value end of the industry with 60% contribution, while they contribute a mere 3% by volumes. Over-premiumisation is not easy in this world facing bigger crises at the moment. So where does the watch industry go from here? Here are some of the key trends. While the regular efforts of trying to get watches with smarter designs and more efficient mechanisms weren’t completely absent, the tough market conditions dominated the brands’ choices to a large extent.
More for less
Can you imagine the famous Bulgari Serpenti, known for its coiled steel and gold bracelets being offered in interchangeable Karung straps? Well now, you can make your own watch by choosing case material, dial and strap on a Bulgari app. No doubt, it’s a bold step, but it’s a risk the brand needs to take to shake up a stagnant market and grow market share. Echoing the same sentiments, Raymond Weil launches the new Shine collection with patented unlocking and locking system to change the straps within seconds. Olivier Bernheim, President, Raymond Weil, said this small innovation offers a practical solution to a lady looking to change her watch on different occasions through the day. There was steel galore at the fair, with brands coming up with watches in the affordable metal like never before. Take for example the new steel-and-gold version of Sky-Dweller from Rolex, after five years of being available in various gold references. And the price? Just above CHF 16,000!
Smaller dials
On the design front, the sizes are consistently getting smaller; with many brands offering 38-42mm dials for men, quite contrary to the huge chunky 45-48mm watches, three or four years ago. Barring Hublot, which hasn’t followed the trend, most have launched smaller dials, the notable ones being the Omega Railmaster 1957 in 38 mm, Oris Big Crown 1917 Limited Edition in 40 mm, Grand Seiko in 38 mm, Longines Flagship Heritage in 38.5 mm, or even the otherwise large Fifty Fathoms Bathyscaphe from Blancpain in 38 mm.
Rainbow roulette
Many watchmakers played with colour this year. Maybe to lift sagging spirits, who knows? Bucherer’s Manero Power Reserve was offered in mystical blue and shimmering pine green with same-coloured calfskin straps. Movado’s Edge, a collaboration with industrial designer Yves Behar, adds four new models this year in striking colours. And who could have thought Zenith would come up with their macho Pilot’s models in size 40 mm and in Burgundy? While these bright colours nudge their way into the serious watchmaking scene, last year’s rage – blue – continues to be a strong favourite.
Over smart
The mad rush of launching smart watches by traditional watchmakers is coming to an end. However, watchmakers are making sure they offer the convenience of connectivity to their clients. TAG Heuer’s new Connected Modular 45 was the big newsmaker at Baselworld 2017. The watch offers clients hundreds of options by combining various elements like straps, dials, bezels, lugs with the mechanical or digital modules.
Another brand consistently taking more products from their kitty to the connected space is Breitling. They launched a new Breitling for Bentley – the Calibre B55 – a timepiece that can pair with the car and smartphone to record laptimes.
Mark the occasion
Another trend this year is the tried-and-tested anniversary launch. Among hundreds of launches, some deserve special mention. The new Autavia Heuer 02 launched by TAG Heuer is a reinterpretation of the 1963 Autavia Rindt, chosen through a public poll of over 50,000 votes. The new model features a Heuer 02 automatic manufacture chronograph. Longines celebrated 90 years of Lindbergh’s maiden trans-atlantic solo flight and 60 years of the Flagship collection with two watches in limited and numbered editions to commemorate them: Lindbergh Hour Angle and Flagship Heritage. Hublot celebrated partner Ferrari’s 70th anniversary with the launch of Techframe, a watch by Ferrari designer Flavio Manzoni and his team.
Embracing e-commerce
The luxury industry has been averse to selling online, but brands know they need to move sales online eventually, and experiments have begun. I was told by Jean-Paul Girardin, VP of Breitling, that a combination of offline and online may work in the near future, without making his brand’s position very clear on the same.
Davide Traxler, the new boss at Corum, believes there is nothing wrong with selling some of their key lines in chosen markets on Amazon only, by-passing traditional retailers. Movado will sell the new limited edition Bauhaus collection only through their websites as confirmed by Ricardo Quintero, President, Movado Group.
All these experiments are still flanking strategy being adopted by brands before taking the plunge. By 2020, one can expect a sizeable part of the watch business to move online.
The writer is president and publisher of the Chitralekha Group and president, The Horologists
