The watch industry is undergoing dramatic changes that were outlined even before the start of the pandemic. Brands, even the most conservative ones, are increasingly active on the Internet; international exhibition projects that a few years ago seemed global and unshakable are crumbling; a growing number of watchmakers who are interested and not necessarily buy. Ksenia Ponomarenko, a partner of the FHHAcademy Foundation and the founder of the digital agency BIOM, talked about everything that watchmaking lives and breathes with Pascal Ravessu, a representative of the Haute Horlogerie Foundation.
Pascal Ravessu © press service
- What is the mission of FHH?
- It is simple: we were created in order to raise the level of knowledge and understanding of watchmaking, to tell about this business and about the world's best watches to the widest possible audience. It sounds pretty mundane, but it's by no means a simple to-do list. One of the main ones is the educational direction, which we are implementing through the Academy. The program works primarily in the B2B segment: we do not improve the qualifications of craftsmen who directly assemble watches in workshops, but we actively help sales specialists to improve their efficiency. Today's watch shoppers surf the Internet before shopping in a boutique, and as a result they often know more about watches than store employees. Our Academy has arisen from the demand for qualified personnel. On the other hand, we see a rapidly growing demand for knowledge among non-professionals:watch connoisseurs, collectors, just curious people. The Academy organizes trainings for B2C audiences. We are also ready to offer training seminars for the Russian-speaking market.
- Today FHH collaborates with 70 watch brands. How is this cooperation built?
“At the sites of the Foundation, we give more than 70 brands the opportunity to tell about themselves, share news, present classic and avant-garde models. FHH is a very open and flexible organization - this is evidenced by a wide variety of "perimeter brands" (as we have designated the extended list of associate members). The "perimeter" includes not only the legendary Rolex, Breguet, Patek Philippe, but also independent watchmakers, for example, the Russian master Konstantin Chaikin. But the Foundation's partners, with whom we have the closest ties, are only 42 companies, most of them traditionally participated in the Geneva Salon of Fine Watchmaking (SIHH). The main criterion for joining FHH is the highest quality of the watches produced. They must be excellent both in terms of mechanism and in terms of design, idea, communication. The Foundation cooperates with brands for which the quality and craftsmanship of each individual piece is not just pretentious words, but a philosophy embedded in DNA.
Salon of fine watchmaking, 2019 © press service
- Do you plan to increase the number of partner brands?
“We have over 50 experts around the world, whose immediate task is to identify brands with which to develop relationships. The number of brands we work with is not constant, and, of course, we are open to cooperation. But the decision on partnership is made not only by FHH, but also by the manufacturing company. Our values, goals, views and plans must coincide.
- That is, there is a special committee that decides with whom and how to cooperate with the Fund?
- Yes. This advisory body includes retail professionals, journalists, historians, museum workers, collectors - in short, people from a wide variety of watchmaking industries. They can expertly assess the prospects for cooperation with each brand and the companies' compliance with the Fund's criteria. These experts have nothing to do with these brands, they do not lobby anyone's interests - they are independent and objective. They are not paid by brands or FHH - they do their job for the love of watchmaking.
- Will the Japanese brands Seiko and Casio one day become partners with FHH?
- FHH is currently in negotiations with Seiko. Our culture committee values the quality of Japanese Seiko watches and recognizes the growing popularity of Seiko's watches. In 2018, we visited the brand's factories, and our delegation was very impressed. The Swiss and Japanese approaches to watchmaking differ slightly, but excellence can be achieved in different ways. And there is no point in denying that the Japanese approach to watchmaking is finding more and more fans around the world.
- Why did you decide to change the name of SIHH (Salon of Fine Watchmaking) to Watches & Wonders?
- Our Foundation represents the interests of fine watchmaking, but it is difficult to explain what fine watchmaking is, it is hardly possible. There is obviously a lot of magic around the clock. The art of creating them is miraculous. We really presented the name Watches & Wonders this year, but the updated concept began to be introduced three years ago. The foundation has reformatted its activities to become more accessible and open to a wide audience. Among other things, we have changed the philosophy of our annual salon - an event where the realities and prospects of the industry are discussed, innovations are presented, and expert assessments are given. Now we have more open conferences, more master classes and workshops, more brands - while remaining faithful to the fine watchmaking art (presenting watches costing from $ 5,000). Swiss francs and without denying the possibility for more democratic brands to arrange their events in parallel to our salon). People are discovering the wonderful world of watches - and it's wonderful.
- When was the final decision to hold Watches & Wonders 2020 online?
- FHH canceled the traditional event in Geneva back in February. All the brands with which we talked regretfully stated that without our salon they do not have a platform to present new products to a wide audience. After several weeks of discussion, we agreed to present a common digital portal W&W. And they appointed its premiere on the first day of the previously planned exhibition, that is, on April 26. The final decision on the online format was made five weeks before the actual opening. And the result justified all the efforts invested: it is already obvious that the online salon has become a successful project. On the first day of the platform's operation, 30 thousand visitors came to it, which was a huge achievement for the resource that had just appeared on the network. Of course, we foresaw the future of the digital salon. But the events of this year made us hurry up with the development. And this is even for the best, because now we have an Internet space where watch manufacturers, experts, connoisseurs can meet and exchange views 365 days a year, without being tied to the dates of an offline event. We, FHH, strive to update the resource content on a weekly basis. Well, and the grandiose offline event with restaurant zones, evening entertainment and concerts, scheduled for 2020, we postponed to next year.we have moved to next year.we have moved to next year.
Watch and jewelery expert Gianfranco Richel talks about mechanical watches. Master class from watchesandwonders.com platform
- Will those who wish to buy tickets for Watches & Wonders 2021 directly on the days of the event or do they need to plan a visit in advance?
- Guests should be able to buy a ticket for the show on any day of the show, not just in advance. However, the price for tickets purchased on the day of the event will be predictably higher. We believed that this approach would help us guarantee the highest level of service and communication with guests and participants. It will also help spread the number of visitors more evenly across the day, rather than expecting everyone at the time of opening.
- Will the brands that left the Basel exhibition join Watches & Wonders next year?
- This is an interesting question. Indeed, Rolex, Patek Philippe, Chopard, Chanel and Tudor have officially dropped out of Baselworld's permanent lineup and announced preparations for their own show at Palexpo in 2021. One of the options is that they will hold their parallel exhibition in a separate Palexpo hall, but the format is still being discussed, and there are no clear agreements yet. We can confidently say that the show of these five brands will take place in Geneva at the Palexpo exhibition complex simultaneously with Watches & Wonders in the first half of April.
The result justified all the efforts invested: it is already clear that the online salon has become a successful project.
- What is your professional opinion about the fate of Baselworld?
- I've never been a member of Baselworld. I can only assume that the curators of the exhibition at some point felt like monopolists in the organization of events in the watch industry and because of this they became very relaxed. This means that they have ceased to feel economic fluctuations, the needs of manufacturers, and the trends of our business. Meanwhile, the industry is turbulent, and brands can no longer allocate the same budgets for exhibiting as they did a few years ago. Attendance at Baselworld itself has become less profitable: 15-20 years ago, based on the results of the exhibition, manufacturing companies were guaranteed to receive 40-60% of annual revenue, and now only 20-30%.
- Is one common exhibition in one city a positive step for the watch industry?
- The overwhelming majority of market participants do not see the point in organizing different exhibitions in different places - they find it more convenient to have a single center for making decisions, obtaining expert assessment and presenting new products. After 15-20 years of continuous growth, the industry is feeling the pressure of circumstances and recession. More than ever today, we need a consensus, a common vision of the future and the readiness of all players for dialogue. It makes sense to focus on one point. It is important to understand that the high-quality watch industry is very small: in 2019, Swiss watch exports brought in just over 20 billion Swiss francs - not much compared to other industries.
Salon of fine watchmaking, 2019 © press service
- How does the watch industry feel now?
- In March and April, watch sales fell in the most dramatic way. It is roughly estimated that about 96% of watch shops around the world have been closed. Now the fate of each brand depends on what its strategy was before the pandemic: if a company developed digital platforms and online sales, it is now a little easier for it than for those who invested exclusively in traditional sales channels. Interestingly, while sales were falling, the number of searches for watch information increased. Many brands reported a large number of calls, consultations, even orders for future models. Of course, we understand that such requests come from people whose incomes were slightly affected by the pandemic. Millions of people around the world have lost their jobs, are prostrated and live on welfare. Hard times have come for the so-called middle class:in terms of watch sales, we see a decline in demand for entry-level models, that is, for the most affordable of the good ones. For watches costing from 3-5 thousand francs and more, demand did not fall and, most likely, will grow. It is unlikely that in December 2020 we will return to the level of December 2019, but I want to believe that sales compared to last year will fall by a maximum of 20-25%. However, remember the global financial crisis of 2009 - then the indicators of watch sales fell by 22%. It seems to me that 2020 and 2009 can be comparable. We need time to adapt to the new reality.that sales compared to last year will fall by a maximum of 20-25%. However, remember the global financial crisis of 2009 - then the indicators of watch sales fell by 22%. It seems to me that 2020 and 2009 can be comparable. We need time to adapt to the new reality.that sales compared to last year will fall by a maximum of 20-25%. However, remember the global financial crisis of 2009 - then the indicators of watch sales fell by 22%. It seems to me that 2020 and 2009 can be comparable. We need time to adapt to the new reality.