To weather a desperately challenged market, the watch industry’s veterans may need to make way for young blood.
To weather a desperately challenged market, the watch industry’s veterans may need to make way for young blood.
Appropriately for an industry that is built on centuries-old history and heritage, watchmaking is led by many experienced (read: old) hands. And many of them have enjoyed lengthy tenures at the top. At the Swatch Group, for example, the heads of Omega, Longines and Tissot – the brands with the largest turnovers – are all in their 70s. In fact, the chief executive of Longines has been with the company since 1969, the year Neil Armstrong landed on the Moon. Over at Richemont, the other major watchmaking conglomerate, most of its brands are led by chief executives who have been in the top job for at least a decade. Besides age, watchmakers also appear to value management stability. Even at the smaller, independent brands, age seems to equate with wisdom. Maximilian Busser, founder of MB&F (short for Maximilian Busser and Friends) and one of independent watchmaking’s leading lights, is 48 years old.
But perhaps the next generation of leaders might emerge, as the industry adjusts to the slowdown that is here to stay. With China’s crackdown on corruption as the catalyst in 2013, the drop in demand for fi ne watches echoes that of other luxury goods. The weakness has also been exacerbated by economic woes around the world, as well as reduced tourist arrivals caused by fears of terrorism. Management attrition has been a consequence of the slowdown. Last year, the chief executives of De Bethune, Greubel Forsey, Parmigiani and Hautlence stepped down. The trend is likely to continue as watchmakers adapt to a more difficult environment. It’s worth noting that many of the industry’s leaders rode the wave that propelled the watch industry to unparalleled profi ts in the last decade. But times are changing. Montblanc, for example, replaced its chief executive two years ago, with Jerome Lambert taking the helm.
Lambert, who formerly headed Jaeger-LeCoultre, replaced the team that turned Montblanc from a niche penmaker into a giant in pens and accessories, but then faltered in the necessary transition to a luxury watchmaker as pens became less relevant in the age of the computer. In view of the current challenging environment, some watchmakers might need a similarly diff erent perspective at the top. The rise of crowdfunded watch brands, notably those on Kickstarter, is another factor in favour of tech-savvy, youthful entrepreneurs. Last year, several brands got off to a great start on Kickstarter, many of them off ering aff ordable watches priced under $500. But it is perhaps a cliche to associate youth and technology. One of the most successful Kickstarter-funded brands, Klokers, raised over 600,000 euros (S$938,000) – and both its founders are in their 40s.
“IN VIEW OF THE CHALLENGING ENVIRONMENT, SOME WATCHMAKERS MIGHT NEED A SIMILARLY DIFFERENT PERSPECTIVE AT THE TOP.”
