Masters of Timelessness: Innovation, Artisanship and Legacy in the Luxury Watch Industry.

2024 - the luxury watch industry embodies a fascinating amalgamation of tradition and innovation, where each tick and tock is a reminder of the relentless pursuit of precision, artistry and technological advancement. In the latest edition of The Future Of Luxury by Summit Communication Group , we explore the narratives of industry mavericks and legendary houses, revealing how they balance historical craftsmanship with futuristic innovations to create timepieces that are not merely instruments of time but works of art that echo the richness of history and the excitement of the future.

Piaget Strives for Elegance in Ultra-Thin Design

Piaget , the esteemed Swiss watchmaker stakes its claim on the world record for the thinnest tourbillon wristwatch ever created. The Altiplano Ultimate Concept Tourbillon, measuring a mere 2mm—comparable to the thickness of two credit cards—aims to surpass the record previously held by Bvlgari 's 3.95mm Octo Finissimo Tourbillon Automatic since 2018.

Despite achieving this feat, Benjamin Comar, Piaget’s Chief Executive, emphasizes that setting records was never the primary goal. "I'm not really into world records," he asserts. "I’m interested in craftsmanship and creating a very wearable, elegant watch."

"I’m not really into world records." Benjamin Comar, Chief Executive Officer, Piaget

The Altiplano Ultimate Concept Tourbillon retains all the functionalities expected of a high-quality timepiece. It features hour and minute hands, hour markers, and a manual wound movement with a 40-hour power reserve. The watch is also equipped with a crown discreetly located on the right side of the case for time setting and winding.

Constructed from a blue PVD-treated cobalt alloy, known as M64BC, commonly used in medical implants for its ability to be machined into thin slices without compromising structural integrity, Comar is proud of the watch's robustness. "It’s a real watch," he comments, acknowledging, however, the allure of world records for enhancing brand competitiveness. "I understand that, for the brand to be competitive, you want the best movements," he notes, estimating that only about five units will be produced annually, each priced around $650,000.

This watch continues the legacy of the Altiplano Ultimate Concept first introduced in 2018, which set a record for the thinnest mechanical wristwatch at the time. The addition of a tourbillon—an advanced complication that counters the effects of gravity on the watch's mechanics—is a significant technical achievement.

Frank Geelen, founder of the online watch magazine Monochrome, remarks on the technical prowess of Piaget, "The Piaget Altiplano Ultimate Concept Tourbillon is quite surreal, and its extreme thinness is spectacular. Piaget’s ultra-thin calibres laid the foundation for other ultra-thin watches that we see today."

Comar reflects on the significance of the 2mm measurement, a "golden number" for Piaget that echoes back to the 1957 introduction of the 2mm thick 9P calibre, a revolutionary development at its time. He highlights the advanced precision involved in manufacturing the new watch, with some parts produced to tolerances as fine as four thousandths of a millimetre.

This innovation comes at a time when the luxury watch market sees a rekindled interest in ultra-thinness, spurred by recent advancements from other brands. "Thinness hasn’t been a trend for a while but, thanks to the records from other brands and this, it’s coming back," Comar explains.

However, Comar has no aspirations to outdo Bvlgari ’s latest record with the Octo Finissimo Ultra COSC, which now stands as the thinnest mechanical watch. "Breaking records is not a crusade," he states. "This notion of 2mm is our baseline and, as long as we can do an elegant, wearable watch, that’s the most important thing."

The Altiplano Ultimate Concept Tourbillon is a highlight of Piaget's 150th-anniversary celebrations, demonstrating the brand's commitment to innovation while honoring its storied past. This commitment is further underscored by the success of their Polo 79, a luxury watch that sold out upon release, and a significant uptick in brand interest globally.

In a challenging economic climate marked by a downturn in Swiss watch exports, Piaget's new releases not only bolster its reputation for exceptional craftsmanship but also aim to secure a stronger market presence.

"The date of the 150th anniversary can’t be changed, but it’s a good time to be visible," Comar concludes, optimistic about the future market share.

Yvan Arpa and ArtyA: Redefining Boundaries

Yvan Arpa’s ArtyA resonates through the watchmaking world with its audacious and innovative designs. Known for integrating real bullets and his own blood into watch dials, Arpa’s work challenges the boundaries of traditional watch aesthetics. His presence at Watches and Wonders, amidst revered brands like Rolex and Cartier, highlights a journey from outrageous creativity towards a refined innovation with his Purity collection, featuring high-end NanoSaphir cases and intricate movements. Arpa’s evolution from the radical to the sophisticated mirrors a sector-wide trend where risk-taking matures into refined innovation, expanding the horological landscape.

"Looking back, I think I did too much crazy stuff." Yvan Arpa, Founder, ArtyA

Revival of Artisanal Mastery: Chopard and Cartier

At a time when digital technology dominates, luxury watch brands like Chopard and 卡地亚 are investing in the revival of nearly lost artisanal techniques, emphasizing the intrinsic value of manual craftsmanship. Chopard’s dedication to the ancient art of fleurisanne engraving and 卡地亚 ’s revival of granulation and enameling are testaments to the industry’s commitment to preserving rare crafts. These efforts not only cater to collectors who value unique, handcrafted pieces but also serve to educate a new generation about the depth of craftsmanship involved in watchmaking. The strategic investments in these ancient techniques are crucial for keeping the rich heritage alive, ensuring that traditional skills are not lost but instead are celebrated and evolved.

"I wanted to incorporate [fleurisanne engraving] in Chopard watches." Karl-Friedrich Scheufele, Co-President, Chopard

Unveiling the Tag Heuer Monaco Split-Seconds Chronograph

In 1969, Tag Heuer launched the Monaco, the world's first waterproof, square-cased chronograph. This pioneering timepiece was not merely intended for motorsport enthusiasts, despite its roots in the glamour and thrill of the Monaco race circuit. Jack Heuer, the company's visionary leader, aimed to captivate a sophisticated audience of high achievers and creative professionals like architects and designers with its bold, contemporary design.

However, the initial strategy did not resonate as expected, and the Monaco was phased out of the Heuer catalog after just six years. Ironically, its limited success during this period led to an abundance of stock, which found its way onto the wrist of Steve McQueen in the 1971 film Le Mans. This association with the "King of Cool" did not immediately revive the Monaco’s fortunes, but it set the stage for its triumphant return in the late 1990s. Reintroduced and heavily marketed with its cinematic legacy, the Monaco quickly cultivated a cult status, leading to thousands of sales and various reinterpretations, including special editions and anniversary models.

Among the most iconic iterations were those adorned with the Gulf Oil livery from McQueen's Le Mans Porsche, and collaborative pieces with Mercedes-Benz. One particularly bold version was the V4 of 2004, which featured a movement based on an engine block design and operated using miniature rubber belts.

At Watches and Wonders, Tag Heuer unveils what may be the most advanced and exquisite Monaco yet, marking 55 years since its debut. Priced at SFr135,000 ($150,000), with custom options pushing it to SFr165,000, this new Monaco Split-Seconds Chronograph is the most expensive in the series.

This edition is distinguished by its titanium movement, consisting of 360 components and weighing just 30 grams. This marks the first time Tag Heuer has incorporated a "split seconds" chronograph function, capable of measuring two elapsed times simultaneously. The movement, designed in collaboration with Vaucher Fleurier and Tag Heuer’s Carole Forestier-Kasapi, includes customized parts such as unique dial-side bridges and a bespoke automatic winding rotor.

Visible through a curved sapphire crystal case back, the TH81-00 calibre showcases a meticulously hand-decorated main plate with a chequered gratté pattern. This intricate engraving plays with light, creating a dynamic visual effect reminiscent of a fluttering flag.

The watch case, redeveloped from a 1969 model and refined for a more elegant and streamlined aesthetic, still nods to its heritage—especially with the placement of the split-seconds push button at the nine o'clock position, mirroring the original's left-hand winding crown.

Available with blue or red dial details and paired with a matching calfskin strap embossed with a fabric pattern, the Monaco Split-Seconds Chronograph is a full production model, not a limited edition. However, the complexity of its construction means that no more than 50 units will be produced annually, ensuring exclusivity for this groundbreaking timepiece.

Timekeeping and Fashion: From Tiffany & Co. to Cartier

Luxury watches are increasingly donned not just for their functional value but as sophisticated fashion statements, exemplified by Tiffany & Co. 's HardWear collection and 卡地亚 's innovative designs. These pieces blend the precision of timekeeping with the allure of fine jewellery, influenced heavily by high-profile celebrities and the evolving fashion landscape. This trend reflects a shift towards more personalized and versatile luxury accessories, where the functionality of a watch is seamlessly integrated with the aesthetic appeal of jewellery, broadening its appeal and usage across different contexts and settings.

"We believe in the power of storytelling and craftsmanship." Nicolas Bos, President and CEO, Van Cleef & Arpels

Olfactory Horology: Cartier's Scent-Infused Innovations

In an intriguing fusion of olfactory and horological artistry, 卡地亚 introduces a new dimension to watchmaking by integrating fragrance into its timepieces. This innovative approach not only enhances the sensory experience of the wearer but also elevates the watch to a piece of perfumed jewellery, offering a continuous interaction with the essence of luxury.

"We’re on a real mission to rejuvenate the target market, which is buyers between the ages of 25 and 45." Davide Cerrato, Chief Executive Officer, Bremont

This pioneering development is indicative of the industry’s move towards creating more immersive and personalized user experiences, leveraging the power of scent to evoke memories and emotions, thereby deepening the personal connection with the timepiece.

Swiss Watch Industry's 2024 Decline

The downturn within the Swiss watch sector seems more acute than the general luxury market slump, yet experts and analysts call for a broader perspective. A recent report from the Federation of the Swiss Watch Industry highlighted a 16.1 percent drop in Swiss watch exports for March year-over-year, a downturn accentuated just after the Watches and Wonders event. This marked a significant decline of 380 million Swiss francs, culminating in a 6.3 percent dip for the quarter.

Particularly, exports to China and Hong Kong plummeted, decreasing by 41.5 percent and 44.2 percent respectively. Conversely, the United States, the sector's primary market, experienced a more modest decrease of 6.5 percent.

The decline in Swiss watch exports starkly contrasts with the minor slowdown observed in the broader luxury sector. For instance, 酩悦·轩尼诗-路易·威登集团 reported a 3 percent increase in sales for the first quarter, totaling €20.7 billion. 历峰集团 , another luxury titan, is expected to release its annual figures on May 17. However, Luca Solca of Bernstein, a leading analyst, emphasizes understanding the downturn within a wider context of post-pandemic moderation in luxury demand, particularly noting the wholesale channel's shift to destocking in response to softer demand.

Despite last year's record-high Swiss watch exports of 26.7 billion Swiss francs, experts like Rob Cordero from WatchPro caution against inflated expectations, suggesting that even a return to the high demand levels of 2019 (22 million Swiss francs) would be optimistic.

The Prognosis for Recovery

The industry is facing a geographically widespread decline across various price segments. RBC Capital Markets predicts a contraction of 7 percent for 2024, describing this as a normalization phase post-pandemic. The high-end segment, previously driving growth with a 9.4 percent increase in 2023, is expected to shrink by 10 percent this year.

Yves Bugmann, president of the FH, attributes much of the export falloff to economic uncertainties in China, affecting consumer confidence significantly. Nevertheless, markets like the US, Japan, and the UAE have shown modest growth in the first quarter. However, reversing the current downward trajectory heavily relies on the Chinese market.

Industry reactions to the downturn could intensify problems, especially if it fuels a discounting culture or strengthens the grey market presence, where cash-strapped retailers offload new watches at reduced prices. This scenario was evident in 2018 when brands like Richemont had to buy back unsold stock to mitigate the impact of discounted new watches flooding the grey market.

Future Outlook and Strategic Moves

Forecasting the industry's recovery remains challenging. Analysts expect the moderation to continue well into the first half of 2024, with geopolitical tensions and economic instability playing crucial roles. Despite these challenges, some brands maintain their robustness, leveraging their pricing power to drive growth.

Moreover, India presents a promising market, buoyed by a recent free-trade agreement expected to decrease import duties on Swiss watches over the coming years. Bugmann remains optimistic about the industry's resilience, underpinned by its centuries-old legacy and adeptness in navigating economic shifts.

The Swiss watch industry thus appears poised to weather this storm, backed by strategic insights and a deep understanding of market dynamics.

The Future of Luxury Watchmaking

The luxury watch industry can thrive again on a delicate balance between preserving its rich, centuries-old heritage and embracing the possibilities brought forth by modern technology and innovative materials. Figures like Yvan Arpa and traditional houses such as Chopard and 卡地亚 illustrate this dynamic interplay, where the past and future coalesce to create timeless pieces that are more than just keepers of time—they are custodians of culture, innovation, and art. As the industry moves forward, it remains anchored by its history but driven by an unyielding spirit of innovation, ensuring that the world of luxury watches remains as vibrant and enduring as the masterpieces it creates.

Written by Gregory Gray , CEO & Founder of Summit Communication Group

#luxurywatches #watchmaking #horology #timepieces #craftsmanship #innovation #watchindustry #watchesandwonders #artisans #luxurybrands #artya #chopard #piaget #audemarspiguet #jaegerlecoultre #hermèshorloger #vacheronconstantin #bremont #vancleefarpels #zenithwatches #watchcollector #watchenthusiast #watchdesign #swisswatches #highendwatches #mechanicalwatches #luxurylifestyle #timelessdesign #heritage #watchtrends #watchmakers #watchcommunity #horological #watchnews #watchtech #limitededition #hautehorlogerie #independentwatchmakers #watchconnoisseur #luxurywatchbrand #investmentwatches #watchesofinstagram #artisanalcrafts #fleurisanneengraving #nanosaphir #watchinnovation #elegance #precision #watchpassion