Posts Tagged ‘Swiss Made’
How To Move Forwards While Looking Backwards – Innovation In The Watch Industry Part.3
In Part.2 of our exclusive special on innovation in the watch industry we talked about the truly baffling achievements of Montblanc, made all the more amazing by the incredibly short time frame within which they were realized. Remarkable as they were, however, we should acknowledge that Montblanc did not go it alone. Rather they had the luxury of being able to count on the generous funding and support of an immensely successful and experienced global organization.
With this is mind we have to ask how then can young brands with little to no backing even contemplate, let alone succeed at, creating highly-innovative, credible pieces?
To find out we went to ask Romain Jérôme.
The Opposite End Of The Scale
Romain Jérôme couldn’t have less in common with the Richemont empire Montblanc belongs to: only around fifteen employees, and barely out of diapers and yet this young company continues to box well above its weight. In this year alone the company took 50’000’000 CHF in orders just during the SIHH!
So how then has such a little company, which was no more than a start-up just a few short years ago, risen so quickly? The answer is not strategic like Montblanc, nor marketing like Hublot; it’s product-based.
Around its “DNA of Famous Legends” tagline, Romain Jérôme based its business model almost purely on a highly unique concept. Although timepieces have often been used before to commemorate historic events, this idea was taken one (or several) steps further when the brand introduced watches that would actually incorporate physical aspects of the events within the piece’s design, for example dust from the moon, or parts of the Titanic (and more recently, ash from Iceland’s Eyjafjallajökull volcano).
That the young brand actually had the audacity to try something so different in what is a very traditional industry speaks volumes about their approach to be business. Especially when you consider that typically R&D dollars are generally invested in exploring and discovering the new materials of the future, not the past!
Being bold and different is all well and good but what about tomorrow? How will the brand continue to evolve itself, when its name is so tightly linked to one unique concept?
Building A Brand, Or Building A Concept?
We thought this was a pretty relevant question for the young brand and so we asked Romain Jérôme CEO, Manuel Emch. At age 38, Emch is the combined product of a background in marketing studies and a career within the Swatch Group. An intelligent entrepreneur he is able to rely on the support of an investments fund to help in the continued development of Romain Jérôme.
Still, is this enough?
Critics of the brand often draw attention to the fact that Romain Jérôme has little credibility as a traditional watch-maker and instead relies on gimmicks and publicity to sell their products. This could be an issue but for the fact that Romain Jérôme is not looking for acceptance into the traditional watch-making world. A for those who continue to doubt they are able to demonstrate commercial viability. In other words, they are creating a product people want, and they are selling. Just ask their customers.
It is this success then that Emch intends to build on.
“The backbone of our brand is the 3 collections of legends, Air, Sea and Earth. Two of them are already available: the Moon-Dust for the Air collection, and the Titanic for the Sea. We are currently looking for the third legend to illustrate the Earth collection. We don’t have a specific time-frame, it could be 2011 or 2012.”
And so it seems that Romain Jérôme will stay faithful to its “DNA of Famous Legends” strategy. But will this be enough for the brand to remain visible and relevant, especially if we take a more long-term view, say after 10 or 20 years of production?
“We don’t see so far. There are still a lot of things to do on our 3 DNA collections. The Moon-Dust worked very well because we launched it when the 40th anniversary of the man on the moon was celebrated. The Titanic also has bright days coming as 2012 will be the 100th anniversary of the liner. And we will of course follow the same principles with our forthcoming Earth collection” explains Emch.
Perhaps this is the right strategy to adopt? It certainly seems to be working well for Hublot, a company famous for producing almost exclusively just one style of watch, the Big-Bang. And in all honesty, when Hublot CEO Jean-Claude Biver explains his strategy, it all makes a lot of sense;
“We’ll stay mono-product as long as the market will let us! We do 70% of our business with only 10 references or so, and 30% with limited editions that allow our clients to buy a second or a third watch from our collection.”
The Final Word
Romain Jérôme is just one example, albeit an extreme one, of a young brand that is approaching watch-making in a completely new and innovative way. It’s important to note though that when we talk about innovation we don’t just mean the use of new materials or different designs, we’re also talking about taking a completely new approach to the business model, which includes marketing, distribution and so forth.
Naysayers may criticize Romain Jérôme for using what they regard as gimmicks but at the end of day the company is selling watches, and with the exception of only a handful of watch-makers in the industry, that is what everyone else is here to do too.
Like it or not this is a business, it just so happens that companies are better at it than others.
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Romain Jerome Announces The Eyjafjallajökull-DNA
As the smoke barely clears one brand is already seeking to capitalize on all the chaos and disruption caused by Iceland’s Eyjafjallajökull. Not surprisingly it’s Romain Jerome. The watch-maker is renowned for creating unique timepieces that celebrate momentous occasions in our history, such as the sinking of the Titanic or the arrival of Man on the Moon. This latest piece has been designed the capture the raw power and emotion elicited by the erupting volcano and to be honest, it looks pretty amazing.
Eyjafjallajökull-DNA
Like the other pieces in the DNA series the Eyjafjallajökull-DNA incorporates an element of the event it is celebrating in its design. Just as the Moondust-DNA featured actual dust from the moon on the dial, so too does the Eyjafjallajökull feature actual ash and rock from the volcano (as confirmed by the certificate of authenticity it comes with.)
What is truly special for us, however, is the remarkable effect RJ has been able to achieve with the design of the dial. It actually gives the appearance that hot lava is bubbling just below the surface, ready to unleash its full force at any second, destroying anything in its path.
In the brand’s words, the design “conveys memories of fire and lava, swept over by powerful images of dust and winds, and testifies to primeval energies as well as human vulnerability…”
Perhaps a tad dramatic, but at the same time we have to admit that Romain Jerome seems to have really captured the essence of not only the volcano itself but the impact it has had on life as we know it. Years from now the lucky owner will look at this piece and be instantly reminded of the force of nature and the ability it has to completely disrupt our lives, despite our best laid plans,
No pricing has been advised on this one of a kind piece but expect to pay a lot, assuming you’ll even get the chance to contemplate it before its snapped up by a collector.
The Final Word
Although we don’t usually go in for these types of gimmicks we can’t help but respect Romain Jerome’s resourcefulness and innovative thinking. Whilst their designs may not be for everyone they are undeniably cool and totally unique, a concept that is sometimes lacking in the industry.
Plus what better way to celebrate an event that has brought the world’s biggest airlines to their knees?
How To Move Forwards While Looking Backwards – Innovation In The Watch Industry Part.2
Although relatively new to the world of watch-making, luxury marque Montblanc has an incredibly rich heritage and reputation for fine craftsmanship that has been cultivated over a period of more than a century. It’s no wonder then that this iconic brand is dedicated to preserving its past.
Yet at the same time they recognize the inherent need to be continually looking to the future, exploring new possibilities and pushing boundaries and for many observers this is what makes Montblanc today such an interesting brand.
If you missed Part.1 of this series read it here first.
Creating A Center For Innovation
Given Montblanc’s desire to maintain and exploit their reputation for exceptional craftsmanship and attention to detail it was of high importance that the brand was able to create pieces which exemplified these qualities whilst at the same time displayed their creative abilities.
The solution? The creation of a center for innovation.
Back in 2006, the Richemont group (which owns Montblanc) bought the watch-making manufacture Minerva, from which it created the Minerva Institute for High Horology Research. This fully equipped and highly specialized facility is completely dedicated to the production of original calibers and complications for Montblanc only.
In buying this company, Montblanc was able complete their watch-making equation, combining tradition with modernity: the Minerva Institute, on the one hand, allows their young and talented watch-makers the opportunity to enhance the art of watch-making with their spirit of innovation and dynamism; while the Villeret manufacture, on the other hand, allows Montblanc to continue to enrich its Villeret 1858 range and its associated manufacture, one of the most prestigious in the industry.
“We had these two goals right from the beginning”, explains Alexander Schmiedt, Business Development Manager for Villeret 1858. “First, the protection of this truly living heritage that is the Manufacture de Villeret, one of the oldest [manufacturers] in the world that has never stopped through the ages; then, the development of major innovations and original movements, through our Institute.”
And the latter we must admit has worked tirelessly at setting the bar very high. In less than two years the Institute has produced its first creation, and it is simply mindblowing: the Montblanc Metamorphosis.
Breaking All Barriers
A truly exceptional achievement in the fine art of watchmaking , the Metamorphosis is able to change from a traditional time keeper to a chronograph in front of your very eyes, through the stupefying collective actions of a number of inter-related components. Words simply cannot describe this phenomenon, it simply needs to be seen although be warned, you may have some trouble believing your eyes!
No less than 50 individual pieces start their mysterious dance during the transformation, amongst the 650 required for the making of this outstanding watch, for which a number of patents are currently being processed.
Interesting fact: even though the Metamorphosis is a real Montblanc product, its constituent patents have been left to their inventors, they don’t belong to Montblanc. In our eyes this is an exemplary encouragement to innovation.
Three months ago, Montblanc struck again with their Exo Tourbillon (pictured at the top of this page), equipped with a totally new tourbillon architecture unique to the market: its pendulum is bigger than its cage, and it stands outside of it.
In parallel, Montblanc started a great work on materials with its Time Walker Dual Carbon, which reveals an advanced state of R&D on the DLC component, “Diamond Like Carbon”. Thanks to a special thermic and atomic treatment, Montblanc succeeded in making this surface 17 times more resistant than steel!
The Final Word
Thanks to a clever combination of ancient know-how and innovation, Montblanc, in less than two years, has risen to take its place as a respectable player in the watch-making industry. Although awareness of the brand from a watch-making perspective still needs a bit of improvement, there is certainly no need for the brand to prove its incredible expertise any more.
Although given the brand’s history, they certainly will continue to do so regardless.
How To Move Forwards While Looking Backwards – Innovation In The Watch Industry Part.1
Much like in the wild a company’s ability to survive and prosper in the business world depends largely on its ability to evolve and innovate. Nowhere is this more apparent than in a super-competitive industry like the luxury watch industry, where new brands continually come and go, sometimes in a matter of months. Yet, what makes the watch industry somewhat different from many others is the value its consumers place on a brand’s heritage.
Please note this article is also available in a slightly modified version in French. Please click here to read it.
The Ultimate Balancing Act
It would seem that companies need to be constantly moving forward whilst at the same time firmly anchored in the past, a balancing act not easily achieved but one that is nonetheless essential to the brand’s success. Whilst clients are almost certainly interested in and attracted to innovation, at the same time they also feel a deep sense of attachment to tradition, or even a sense of status quo established by some of the brand’s older models.
So how do these famous watch-making houses do the splits? How do they dedicate a part of their production to historic, illustrious models, which are often highly expensive and complicated, whilst at the same time maintaining strong investment in R&D to develop future projects? And furthermore, how do the myriad of young brands appearing on the scene attempt to compete within this complex environment?
This is the paradox of the watch-making industry. Discover new territories, but remain faithful to the culture of your origins. Respect the purest tradition, but embrace the latest techniques. In summary, one must be always looking to the future whilst at the same time remaining firmly connected to the past to ensure that the core identity of the brand is preserved.
Each brand has developed its own answer, but all share a common objective: complete customer satisfaction.
Straight To The Source
There have been countless examples of brands (none of which we wish to name here) who have lost their way, and as a result their identity, in their rush to embrace technology and as such paid the ultimate price for it. To find out how some of the best in the business avoid this tricky pitfall The Watch Lounge went to meet several great industry captains to better understand their strategy.
Mr. Jean-Claude Biver – CEO, Hublot
It’s Thursday, 10 :00 AM and we are with Jean-Claude Biver, CEO of Hublot. A seasoned veteran of the industry, who has been at the helm of some of the best known watch brands in the world like Omega and Blancpain, Biver stepped in to take over the reins at Hublot in 2004. For a man that has enjoyed so much success in the industry there is no miracle recipe for staying visible and attractive.
“Each time it’s all about starting almost from a blank page. Of course, it’s necessary to take into consideration the DNA of the brand, but there is no one approach available here.”
Wise words indeed from a man who played an instrumental role in changing the fortunes of the mechanical watch industry after the fallout from the introduction of the quartz movement. Still if there is anything that has really changed the way companies think about growing and a protecting their brand in recent times then surely it would be the financial crisis that almost brought the industry to its knees? After all the impacts of this have been many, and in many instances have created opportunities for new players to step in.
“Yes, nowadays it’s far easier to be in this business! Now there are a lot of new brands, most of the markets are open, and it has become very easy to enter the game.”
But more brands means more competition, so we find ourselves back where we started: how does a brand stand out without losing its identity?
“First, for me, being present right there next to my team on the playground is essential. A football captain doesn’t follow the match of his team from the terrace. Real luxury is all about proximity. I travel at least once per month in the US, in Japan or in China, and will continue to do so as long as my health will let me!”
So there you have it, a strong presence on the ground both with the team and with your clients is critical to your success. And let’s not forget one of Mr Biver’s other exceptional talents; self promotion.
Known for his philanthropic activities we recently saw him, through Hublot, actively showing his commitment to the African Wildlife Foundation, complete with a supermodel ambassador on his arm (the beautiful Veronica Varekova no less). The cynics amongst us might be tempted to ask if this is just another marketing tactic designed to exploit this highly visible cause to help sell more watches. In other words, is this simply another way to create some hype and positive sentiment towards the brand?
On the contrary.
The genuine passion and excitement in Mr. Biver’s voice is obvious as he explains his logic:
“This century will be either dedicated to sharing or it won’t be. I don’t understand brands that don’t have a philanthropic involvement. Sharing, for a luxury brand, is vital!”
Certainly no arguments here but surely the driving force behind this “sharing” is the promotional exposure it provides to the brand?
“No, I do it because it corresponds with my personal sensitivity, and to that of my clients. Besides, most of the well-known brands have a philanthropic action. Whether they choose to expose it or not is not my business. As far as we are concerned, it’s consistent with the DNA of our brand, with my personal convictions, and with the philosophy of our clients. I can’t imagine going in the opposite way!”
The Final Word
What more can be said? Regardless of your sentiments in relation to the above, it cannot be denied that Hublot is staying true to its identity as defined by Mr. Biver and by extension, its clients, and as a result the company is prospering.
Whilst they are arguably one of the most innovative brands in the industry today when it comes to the use of materials and the promotion of their products, they have also remained faithful to their original modus operandi, especially during a time when many other brands would have been tempted to divert philanthropic funds elsewhere to combat the effects of the market crisis.
Make sure you join us for Part.2 of this multiple-part special when we explore the exceptional watch-making journey of Montblanc and take a detailed look at where the magic really happens; the Minerva Institute for High Horology Research.
La difficile équation entre innovation et modernité – L’innovation dans la haute horlogerie – 1ère partie.
Il n’y a pas de salut à long terme sans innovation permanente. C’est certainement la maxime la plus répétée dans l’industrie, quel que soit le secteur d’activité.
A la recherche de l’équilibre parfait
Et pourtant, en matière d’horlogerie, le client est certes sensible à l’innovation des marques, mais reste en même temps profondément attaché à la tradition, voire à un strict statu quo pour les modèles les plus anciens. Comment les grandes maisons de l’horlogerie tiennent-elles ce grand écart ? Comment dédier une partie de sa production à d’illustres modèles parfois excessivement onéreux et compliqués, tout en maintenant de forts investissements en R&D ? Comment de jeunes marques peuvent-elles relever ce défi des plus risqués ?
C’est tout le paradoxe de l’industrie horlogère. Regarder loin devant, mais rester attacher à son passé. Découvrir de nouveaux territoires, mais rester fidèle à sa culture d’origine. Respecter la plus pure tradition, mais toujours être en mouvement. En somme : aller de l’avant….tout en restant attaché à ses racines.
Chaque marque a développé sa propre réponse, mais toutes ont le même objectif : toujours séduire le client final.
Retour aux sources
The Watch Lounge est allé à la rencontre de certains capitaines d’industrie pour mieux comprendre leur stratégie.
Mr. Jean-Claude Biver – CEO, Hublot
Jeudi, 10h, nous sommes avec Jean-Claude Biver, Président de Hublot. Pour lui, qui a œuvré chez Omega comme chez Blancpain avant de reprendre Hublot, il n’y a pas de recette miracle pour rester visible et attractif. « Il faut à chaque fois repartir d’une feuille presque blanche. Il faut naturellement prendre en considération l’ADN de la marque, mais il n’y a pas de recette unique ».
Certes, mais pour un vieux capitaine d’industrie comme Jean-Claude Biver, s’il y a bien quelque chose qui a changé la donne, c’est la crise, non ? « Oui, c’est beaucoup plus facile aujourd’hui d’être dans ce business ! Il y a aujourd’hui beaucoup plus de marques, la plupart des marchés sont déjà ouverts, c’est devenu très facile de se lancer ».
Mais plus de marques veut dire plus de concurrence, donc retour à la case départ : comment émerger ? « Déjà, pour moi, la présence sur le terrain est indispensable. On ne demande pas à un capitaine de foot de suivre le match depuis les tribunes. Le vrai luxe, c’est la proximité. Je voyage une fois par mois aux Etats-Unis, au Japon, et en Chine, et je continuerais tant que ma santé me le permettra ! ».
Présence sur le terrain, proximité…et affichage ? On a récemment vu M. Biver au bras de mannequins engagés pour des causes liées au développement durable. Est-ce un effet marketing à l’heure où ces grandes causes ont acquis une notoriété inégalée ? Un effet de plus pour se démarquer ? Au contraire. Jean-Claude Biver s’emporte : « Ce siècle sera celui du partage ou ne sera pas ! Je ne comprends pas les marques qui n’ont pas d’engagement philanthropique. Partager, pour une marque de luxe, c’est une nécessité ! ».
Certes, M. Biver, mais en attendant, vous utilisez cet affichage comme argument commercial… . « Non, je le fais parce que cela correspond à ma sensibilité personnelle, et à celle de mes clients. D’ailleurs la plupart des marques ont une action philanthropique. Qu’elles l’affichent ou pas ne m’intéresse pas. En ce qui nous concerne, c’est cohérent avec l’ADN de la marque, avec mes convictions personnelles, et avec la philosophie de nos clients. Je ne vais quand même pas aller dans le sens opposé ! ».
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