Swiss watchmakers optimistic about future
Although Swiss watch production is widely supported by hi-tech equipment, a small number of watchmakers remain committed to the country's centuries-old tradition as the world's best producer of complicated hand-crafted timepieces. Singapore's Sincere Watch Ltd invited a number of Asian journalists, including The Jakarta Post's Rita A. Widiadana, to visit the headquarters and workshops of Franck Muller and DeLaneau in Switzerland. In the following three articles Rita reports on her visit.
GENEVA, Switzerland (JP): Watchmaking may be regarded as an art, but above all it is a science, says prominent Swiss watchmaker Franck Muller.
"It requires the combination of highly-skilled technology and artistic talent and I am quite lucky to master them both," said Muller, one of a dwindling number of hand-crafted timepiece producers in Switzerland.
During the last few decades, the Swiss watchmaking industry has been transformed, as the numerous manufacturers have had to face the challenges and opportunities posed by the development of quartz technology, in which Japanese competitors got off to a running start.
"There are only a small number of companies, including mine, which are still insisting on preserving the tradition of producing hand-made watches," says Muller.
He conceded that plunging into mass production techniques may be profitable and in line with international market demands for cheaper items.
However, Muller sees the trend to do so is a threat to Switzerland's image as the producer of high-quality timepieces. Today, Muller says, young people like easy jobs. They work in various watch factories producing second-rate lines of timepieces. Only a few youngsters enroll in watchmaking schools to master traditional watchmaking techniques.
"I am very much concerned about this gloomy situation. It will really ruin the highly reputable hand-crafted watch industry," he said.
Born in July l958, Muller showed an interest in mechanical subtleties at a very early age. When he was 15 years old, he began studying micro-mechanics and a year later he entered Geneva Ecole d'Horlorgerie (watchmaking school). After graduating from that prestigious institution with first-class honors, he began working as restorer of antique watches belonging to museums, auction houses and private collections.
Muller later began to design his own watches for several companies and fashion houses and in l991 he established his own company.
Since l992, he has been producing watches in two lines -- the classic model and the cintree curvex model.
Each of his watches is individually crafted in his workshop and he is personally involved in each stage of the creation process. Each aspect of manufacture is strictly controlled: the dials, the watch glass, the movements, the diamonds -- all must pass stringent quality control tests.
"It needs patience and skill to produce a wristwatch," commented Muller, who spent 3,000 hours making one highly- complicated chronograph watch in l992.
He says his obsession is to pass the tradition of making hand- crafted watches to Switzerland's younger generation.
To realize his dream, he has recently set up a new workshop in which he can share and transfer his expertise to talented young watchmakers.
His new workshop, Franck Muller Atelier, is housed in a neo- gothic building, formerly known as Les Amandoliers, in Genthod, outside of Geneva.
He chose to locate the workshop in the heart of the village of Genthod. This delightful hamlet is perched on a vineyard-covered hill facing Lake Geneva and offers spectacular views.
"I am quite satisfied with my current effort and I do not intend to expand my business in the near future. I produce watches that I like to make, not because the market demands it," Muller said at the opening of the atelier last month.
Muller distributes his production worldwide, as far afield as South America, the Middle East, Asia and Australia.
Potential market
"The sales of my products in Asia is very encouraging. I have many Indonesian customers but it is very difficult to set up business there," Muller said.
Francis Habersaat, president of the Federation of Swiss Watch Manufacturers, is not among those who predict trouble ahead, particularly in the luxury segment, which some say is reaching the point of saturation.
"When I see the image of Swiss watches in the world, I am very confident of the future for all, but we must continue to exercise creativity in both products and marketing," he says.
Habersaat foresees only modest increases in the luxury watch market in Europe. The Middle East will be difficult, he says, because of the economic and political situation. He believes there is tremendous potential in Asia, where Hong Kong is currently the biggest market for Swiss watches, recording in 1993 and l994 increases of 14.1 percent and 14.9 percent respectively.
Total sales of luxury watches in l994 were ahead of the previous year by six percent in volume and eight percent in value.
There are more and more watch collectors, and there is a growing number of people who keep a wardrobe of watches for various occasions. "People today think in terms of a sports watch, a classic watch, an evening watch," Habersaat says, adding that the trend is good for business.
DeLaneau
Another Swiss exclusive watchmaking company, DeLaneau, is also optimistic about the future of hand-made watches and also sees Asia as potential niche market.
"I have quite a lot of faithful clienteles from Indonesia including high-ranking government officials, top businessmen and celebrities," said Rolf Tschudin, owner of DeLaneau, but declined to name names. DeLaneu's strongest Asian sales are currently in Singapore, Japan, Hong Kong, Taiwan, Indonesia, Thailand and Malaysia. In Europe, the company is especially strongly represented in London.
DeLaneau is one of Switzerland's exclusive jewelry watch producers run by a husband-and-wife team Rolf and Yolande Tschudin. Yolande designs the watches while Rolf attends to the harsh world of business.
The DeLaneau success story began 27 years ago when Rolf, a descendant of a long-established Swiss watchmaking family, and Yolande, a daughter of famous artists from Florence, Italy, founded a watchmaking company in Bienne. At first, they concentrated on making cheap timepieces. But the competition was very keen and the prospects far from certain. "We risked the jump to the top of the price tree. Yet, we are still making a profit," Rolf said during afternoon tea at the De Bonmont Chateaux outside Geneva.
DeLaneau began producing expensive dress watches, at first under private labels for celebrated jewelry firms like Chaumel in Paris and Kutschinky of London, then later in their own names.
"It was tough at the beginning. Our premiere collection included only seven watches and used up all our financial resources," Rolf said. "The money we earned from it was immediately reinvested in producing more watches. That is how we grew. I have never worked on borrowed capital," Rolf added.
DeLaneau achieved its success in the years when the Swiss watchmaking industry seemed to be dying a slow death. The Tschudins see themselves more as jewelers than watchmakers. For more than two decades they have made consistent profits from producing the most expensive watches.
Their clients include film stars Gina Lollobrigida, Sophia Loren, celebrities Michael Jackson, Tom Jones and Sammy Davis Jnr. They also count the sultans of Brunei and Oman among their customers.
Jewelry design
"I had no idea how much money you can make in this business. I don't like to talk about turnover and profit," says Rolf.
Yolande says it takes more than a diamond setting to make a watch which is a piece of fine jewelry.
"Whether set with precious gemstones or not, a timepiece must be elegant, original and balanced in every detail to be worthy of the designation "jewelry watch," she adds, while displaying her most recent jewelry watch collection.
The initial concept for a jewelry watch must take into account every aspect of its design, from the shape of the case to the style of the bracelet or strap, and all the materials that will be used to fashion it, from noble metal to fine leathers and precious gems, she explained. "I always hold serious discussions with my staff and my partner before producing a watch," she added.
Producing jewelry watches involves difficulties faced in no other sector of the watchmaking industry. A manufacturer must create an array of dials, different colored straps and a wide range of settings with a variety of stones for each model it develops.
Rolf says he has made it his policy to keep the company small. He employs less than a dozen employees, with much of the production farmed out to a number of independent workshops and goldsmiths. Annual production is less than 1,500 watches. Individual models are produced in runs of no more than 20 watches. The prices range from SFr50,000 to more than SFr 1 million.
"We have never wanted to build up a huge organization; we are above empire-building. Our only daughter will probably never join the business. She is trying to establish herself as an art dealer in Boston, U.S.A.," Yolande said.