Independent Watch Brands Make their Mark at Baselworld 2013

The Speake-Marin Triad

It’s officially known as the “Palace” but it’s actually a small, makeshift building on the Basel fairgrounds (Messe Basel), home of Baselworld 2013, the world’s biggest and most important watch and jewelry tradeshow. Royalty may not inhabit this portable building but what is inside are some of the most creative and innovative independent watchmakers in the world. These companies are joined by equally capable small independent watch brands that were scattered among the 1,460 exhibitors throughout the massive complex of buildings.

Their visions may be entirely different, but one thing these companies do share is keen intellect, creativity and passion. The individuals who lead these small firms are highly skilled at combining the highest forms of modern watching with an advance design esthetic and a singular vision.

It was impossible for me to visit them all but what is presented below are nine companies and their products as a representative sample of the technical prowess and artistry of these firms at the recently-concluded tradeshow. They are as follows:

Arnold & Son
The Swiss company with British heritage created what it says is the world’s thinnest tourbillon watch. Called the UTTE (Ultra-Thin Tourbillon Escapement), the case of this timepiece is 8.34 mm thick. It is equipped with the A&S8200 movement that is just 2.97 mm thick. The caliber was created in-house at the brand’s La Chaux-de-Fonds workshops. It is limited to 50 pieces.

Christophe Claret
The French native who operates out of Le Locle, Switzerland, introduced the Kantharos at Baselworld— a complex monopusher chronograph with an integrated in-house automatic movement. It features a striking cathedral gong at the 10 o’clock mark that chimes with each change of function. The constant-force escapement is on the dial side at 6 o’clock. The energy delivered to the escapement remains constant from beginning to end of the power reserve.

Da Vindice Geneva
A watch complication I never encountered is a barometer. It was a passion and challenge for Cosimo Vindice, founder of the new Geneva-based watch brand with Italian heritage, to include this and a tourbillon in a single watch built in-house. An aneroid barometer is used for the Da Vindice’s Videx Tourbillon Barometer timepiece. Atmospheric pressure is managed in a capsule, sealed with the air partially removed from it. The changes in pressure are visible on a subdial placed at 6 o’clock. The watch is designed to accommodate this complication. It is available in white or rose gold.

Dubey & Schaldenbrand
The stainless steel tonneau-shaped Grand Dome R92 Column Wheel Chronograph is another example of how this watch brand produces timepieces that combine vintage movements with modern craftsmanship and design. The R92 movement was originally fabricated in the 1950s. It uses a swivel-pinion design to synchronize the chronograph components. The dial is exposed providing full view of the movement.

Franc Vila
The Spanish native is one of the best-known and most innovative independent Swiss watchmakers in the world. The latest edition to his Intrepido Collection, the FVi No 8 Tourbillon Intrepido SuperLigero Skeleton, has a skeletonized hand-wound tourbillon and 100-hour power reserve. Its set into a grade 5 titanium case coated with black DLC, with an 18k red gold bezel. Visible through the sapphire crystal, the dial exposes the in-house movement.

Linde Werdelin
The German watch brand launched the Oktopus II Moon in a series of 59 pieces, available in two versions. The first 12 pieces, representing one piece for each moon of the 2013 calendar year, feature a rose gold and titanium DLC case with ceramic bezel. The following 47 pieces are available in a DLC titanium case with a ceramic bezel. The Oktopus II Moon’s complication, developed in-house, displays the phases of the moon on its dial as one would see it in the sky. As the moon moves clockwise through its monthly cycle, more of its surface is illuminated.

MB&F
The company that released a music box at Baselworld 2013 also decided it was a good idea to release an advancement to its well-known Horological Machine No. 3 (HM3) series: The Megawind. The focus of this piece is a giant battle-axe shaped winding rotor that swings unhurriedly, but indomitably, over the hand-finished movement. The titanium arms of the rotor intermittently reveal views through to the oscillating balance wheel. It’s available in red gold with a 22k red gold rotor or white gold with a sky-blue 22k gold rotor.

Speake-Marin (top photo)
One of the most passionate and intelligent independent watchmakers I met at Baselworld 2013 is British native Peter Speake-Marin, founder of the eponymous Swiss watch brand. His creations are complex in their functions and their stories, yet they adhere to the tradition of fine Swiss watchmaking. The Triad features triple hour-minute indications over an open dial powered by an Eros 2 automatic winding movement. Three is a number heavy with symbolism and meaning; encompasses beginning, middle and end; birth, life, and death; past, present and future. In music, a triad is a three-note chord played simultaneously to provide a single sound. It is available in a limited edition of 88 pieces in stainless steel with an 18k red gold bezel.

York
The new release of the Royal Black Caviar watch has all of the pomp one would expect from a watch brand fronted by Earl York, a prince of the former Schaumburg-Lippe, a tiny principality in the Lower Saxony region of modern-day Germany. The watch comes in a handcrafted Wengé case that includes a caviar service for two. However, this timepiece is more than just packaging. It is a serious traditional watch created by the Schaumburg Watch company, which York serves as creative director and shareholder. The 18k, 44 mm gold case is topped by a bezel set with 53 black diamonds and five black diamonds on the crown. The black textured strap is made of indo-pacific stingray leather with a textured finish that is looks like caviar eggs. The mechanical movement SW 07 is made in house. It is available in a limited edition of 99.

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UBM to Launch Jewelry Fair in Germany during Baselworld 2014

Does Baselworld have competition? Hong Kong-based tradeshow and publishing company, UBM Asia, has been coy about this but its new jewelry show in Europe will butt heads with Baselworld in 2014.

This new tradeshow called, “Jewellery & Gem Fair – Europe,” will be held April 1 – 4, 2014, in Freiburg, Germany. The dates and location line up nicely with Baselworld 2014, which will be held March 27 – April 3, 2014. Freiburg is less than an hour away from Basel, Switzerland. In fact, it’s so close that when I attended Baselworld two years ago, I stayed in Freiburg

This announcement of a new tradeshow comes after the world’s largest watch and jewelry tradeshow finished a $454.5-million upgrade to the Messe Basel complex that came with several upset vendors. In fact, the 1,460 companies who exhibited at the recently concluded Baselworld 2013 was 355 fewer than those who exhibited the prior year.

The biggest player to exit Baselworld this year was David Yurman, after what was described as “‘exasperating’ back-and-forth with the powers that be at Baselworld.” People from several companies expressed their dissatisfaction to me with their booth placement, the substantial increase in the cost of participating this year, and the pressure to construct newer, larger and more expensive booths for the show. One company, which was one of the few companies to both remain in the same space and not expand their booth, told me they still had to pay 30 percent more than the prior year.

UBM Asia is refusing to acknowledge that they are creating a competing show, calling this new fair “a comprehensive sourcing fair offering a wide range of jewelry products.” It is being positioned “as a high-efficiency, high-level face-to-face jewelry business platform to create real business value for international suppliers and buyers.”

UBM says that more than 260 exhibitors from 25 countries and regions have reserved exhibition space a year ahead of its launch. “This figure represents more than 50 percent of the expected number of exhibitors and represents 60 percent of the total exhibition space which indicates the market’s enthusiasm for this new fair in Europe,” UBM said.

Exhibitors that have signed up are from Australia, Austria, Belgium, Brazil, China, Colombia, France, Germany, Hong Kong region, India, Israel, Italy, Japan, Korea, Poland, Russia, Spain, Sri Lanka, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Zambia.

The fair is open to the jewelry trade, business professionals and members of the media. Free admission to save €30 will be granted to preregistered visitors and online preregistration opens in June 2013. 

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MB&F Creates Timeless Music Machine That Doesn’t Tell Time

The MB&F 'Music Machine' in black

The award-winning independent watchmaking firm, MB&F (Maximilian Busser and friends), is known for its technical and artistic innovations and for its creative partnerships that result in unusual timepieces that they define as micromechanic sculptures and performance art pieces.

However, even for this Geneva-based company, what it unveiled in Baselworld 2013 this year took its innovative prowess to a new level. In a partnership with iconic luxury music box maker, Reuge, the two created what MB&F calls the “Music Machine.” It’s a music box that is outside the box in every way imaginable.

Maximilian Busser, the founder of MB&F defined the parameters of the design and chose the music, explained Eléonor Picciotto, MB&F’s public relations representative. Reuge built the music box based on those specifications. The two cones that create the music contain 72 notes each and play six melodies. It uses 1,400 precision-placed pins that pluck the teeth of a "comb" as the cylinder revolves. It works in a traditional way but they are exposed on top of a sleek, futuristic looking spacecraft made in walnut that works as a sound amplification chamber.

The Music Machine in white at Baselworld. Photo credit: Anthony DeMarco

The songs performed by the cones are far from traditional. The one cone plays deep Purple’s “Smoke on the Water” (which was inspired by a fire during the Montreux Jazz Festival), Pink Floyd’s “Another Brick in the Wall” and John Lennon’s “Imagine. The second cone performs the Star Wars Theme and the Imperial March from Star Wars V The Empire Strikes Back, and the Star Trek theme song.

So how can a watchmaking company unveil a music box at the biggest watch fair in the world with a straight face? Picciotto explains that the company doesn’t call its products timepieces or watches. They call them “horological machines.” Creating a “music machine” is an extension of the concept. In addition, a traditional music box is based on the same mechanical principles as a watch.

As one would expect it is a limited edition item, in this case 66 pieces: 33 pieces in a white lacquer finish and 33 pieces in black lacquer. The cost is $12,300 Swiss francs ($13,174), about a quarter of what a MB&F watch starts at. However, others must have immediately saw the value as the Reuge website indicates that the entire line is sold out. 

Below is quick look at it in operation.



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Blue Nile Q1 Sales Up 16.9%, Profit Exceeds $800,000

The year has begun well for Blue Nile, Inc. The online diamond and jewelry retailer said Thursday that net sales increased 16.9 percent to $97.1 million for the first quarter ended March 31, led by a near 20-percent increase in U.S. engagement jewelry sales and overall strong growth in all markets.

Net income totaled $832,000, or $0.07 per diluted share, compared with $154,000 in the first quarter of 2012. Operating income for the period totaled $1.2 million, representing an operating margin of 1.2 percent of net sales.

Non-GAAP adjusted EBITDA for the quarter totaled $3.1 million. For the trailing 12-month period ended March 31, net cash provided by operating activities totaled $21.3 million compared to $18.4 million for the same period of the prior year. For the same trailing 12-month period, non-GAAP free cash flow totaled $18.6 million.

“We are pleased to announce significant revenue growth along with expanding profitability in the first quarter of 2013,” said Harvey Kanter, Blue Nile president and CEO. “Clearly our value proposition continues to resonate with consumers, both in the U.S. and internationally.”

Other first quarter 2013 highlights for the Seattle-based company include:

* U.S. engagement net sales increased 19 percent to $55.3 million.

* U.S. non-engagement net sales increased 7.4 percent to $24.2 million.

* International net sales increase of 24.8 percent to $17.6 million. Excluding the impact from foreign exchange rates, international net sales increased 25.9 percent.

* Gross profit totaled $17.6 million. As a percent of net sales, gross profit was 18.2 percent compared to 18.4 percent for the first quarter of 2012.

* Selling, general and administrative expenses for the first quarter 2013 were $16.5 million, compared to $15.1 million in the first quarter of 2012. This includes stock-based compensation expense of $1.1 million for the first quarter of 2013 and 2012.

* Earnings per diluted share for the first the period included stock based compensation expense of $0.05 compared to $0.05 for the first quarter of 2012.

* Cash and cash equivalents totaled $40.5 million.

In its guidance Blue Nile said it expects net sales in the second quarter to be between $100 million and $105 million with earnings per diluted share are projected at $0.13 to $0.17.

The company also said that net sales for fiscal year 2013 (ending December 29) are expected to be between $440 million and $470 million with earnings per diluted share projected at $0.75 to $0.85.

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The 206-Carat ‘Imperial Emerald’ Unveiled at Baselworld

Photo credit: Anthony DeMarco

Luxury jewelry firm, Bayco Jewels, unveiled a 206-carat natural Colombian emerald named the “Imperial Emerald” in its showroom Thursday during the opening day of Baselworld 2013.

Owners of the company, Moris and Giacomo Hadjibay, said it is “one of the most precious gemstones to ever exist.” The brothers say that it was purchased from a private collector who owned it for 40 years. They refuse to reveal the price of the gem.

“We paid with our hearts,” a visibly emotional Moris said. In addition, its provenance is unknown. 

Giacomo Hadjibay with the Imperial Emerald. Photo credit Anthony DeMarco

The brothers say the purchase is a tribute to their father, Amir, an Iranian native who moved to Italy in 1957 and founded Bayco not long afterward. The company specializes in one-of-a-kind jewelry pieces made with exceptional gemstones. Amir, knew the previous owner of the gem and told the owner long ago that he would buy it whenever he was ready to sell.

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Baselworld’s ‘Opening Act’

Baselworld representatives at opening day press conference.

BASEL, Switzerland — Baselworld, the premiere event of the Swiss watch industry, on Wednesday unveiled the latest renovation to the multi-building complex that it calls home. The $454.5-million upgrade reflects the spectacular success of an industry that has defied the trials and tribulations of the worldwide economy and a product that has remained popular despite changing fashion and trends. It also is a response to an industry now dominated by a few luxury conglomerates.

The eight-day watch and jewelry fair actually opens Thursday. Wednesday was press day, where top officials discussed the tradeshow and the industry in general. The discussion of the new design was described as Baselworld’s “opening act” by Sylvie Ritter, managing director of the tradeshow.

While several buildings underwent dramatic change under the leadership of architects Herzog & de Meuron, most eyes are focused on Hall 1, now rebranded as the “Global Hall.” It is the main area for some of the most world-renowned watch and jewelry brands. This year, the area not only underwent dramatic structural change, but occupants changed as well. Several brands (mostly independent) were moved to other areas of the complex. Now brands represented by global conglomerates Swatch Group and LVMH far outnumber independent brands. These include Hublot, Tag Heuer, Breguet and Bulgari.

Independent brands that remain in Hall 1 include Patek Philippe, Rolex, and Ulysse Nardin.

René Kamm, CEO of MCH Group, which operates the Basel fairgrounds (Messe Basel), explained that the redesigned hall is reserved for “watch and jewelry brands that have a global impact and a worldwide reach.”

Speakers put on a unified front and spent a great of deal of time thanking exhibitors. However, change this dramatic does not come easy and several exhibitors who have lost their space in Hall 1 were not happy (although refusing to voice their displeasure publicly).

All of this change also came at a price. Several brand executives told me (or refused to dispute) that exhibiting in Hall 1—which includes the construction of multi-story, elaborate temporary showrooms that also have been upgraded this year—now costs upwards of $5 million.

Jacques J. Duchêne, president of the Baselworld Exhibitors’ Committee, said it is the domination of luxury conglomerates that has led to the changes at Baselworld.

“In the course of the past 15 years, the watch and jewelry industry has been through a consolidation process on a scale never witnessed before, and this has also had its effects on the challenges faced by production and marketing, which have changed radically,” Duchêne said. “Now it is a good thing to take note of changes and to adjust to them, but it is even better still to anticipate needs and to be in a position to satisfy them without delay when they arise.”

The price hike and the pressure to create more elaborate booths were also felt among exhibitors who don’t have the deep pockets of the brands in Hall 1. A few companies actually pulled out of the show. Perhaps seeing an opportunity, Hong Kong-based tradeshow and publishing company, UBM Asia, will open its first tradeshow in the European market next year in nearby Freiburg, Germany, with dates that overlap Baselworld.

 

The international press at the opening of Baselworld

But even though some are a bit disgruntled, the 1,460 companies from 40 countries exhibiting recognize the importance of being there in terms of sheer numbers, glamour and international attention. Many brands will bring international celebrities along to help present their new products. More than 3,500 journalists from 70 countries will be covering the event and approximately 100,000 people will attend.

The show is also buoyed by the amazing success of the Swiss watch industry. In 2012, the industry has produced another record year with exports totaling 21.4 billion Swiss francs ($22.6 billion), a 10.9 percent increase over 2011.

“Today, it is thanks to this excellent state of health of the industry that we are able to present the show to you in its attractive new look,” Duchêne said. 

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Kering Acquires Pomellato

Tilda Swinton, brand ambassador for Pomellato.

The rumors have been swirling for some time but now they are verified.  PPR, which will soon officially change its name to Kering, has acquired Pomellato, the Italianjewelry company that has both broad and growing appeal.

Kering will hold a majority stake in the Pomellato group and its CEO, Andrea Morante, will remain in this position with the company.

Pomellato, whose 2012 revenues reached €146 million ($190 million), is one of Europe’s major jewelry groups, with a strong international position. The company’s success is based on the personality and style of its creations with a blend of colors, stones and shapes as well as their fine Italian craftsmanship. The Pomellato group is a profitable and growing Italian business with two brands, Pomellato and Dodo. The first positioned within the fine jewelry segment and the latter within the accessiblejewelry segment. Its distribution network includes 86 mono-brand stores (45 Pomellato, 41 Dodo) as well as approximately 600 independent points of sale around the world. There is plenty of room for growth for this company and Kering said its expertise and resources in real estate, distribution, media and brand management will help in that area.

With this acquisition, Kering is extending and reinforcing its portfolio of luxury brands in the high growth jewelry market.

“Synonymous with Italian style, Pomellato and Dodo rank among the most beautiful and innovative jewelry brands in the world,” said François-Henri Pinault, chairman and CEO of Kering . “We have great ambitions for the Pomellato group, which, with access to our expertise and know-how, will be able to step up the pace of its growth and expand its geographic footprint while preserving the values that underpin its Italian identity.”

Andrea Morante, CEO of Pomellato, added: “Becoming global brands is no longer an option for Pomellato and Dodo; it is a necessity. With this consideration in mind, we have undertaken a lengthy review of our best strategic alternatives and reached the conclusion that joining Kering was far and away the most favorable course of action. First, we will instantly join one of the most prestigious groups in the world; second, we will have a unique opportunity to preserve and enhance the Pomellato and Dodo success stories on a global scale.”

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