Posts Tagged ‘omega’

BaselWorld 2009 Update: Snapshots Omega, Graham, Oris, Hamilton, TAG Heuer, etc

March 31, 2009

It was another amazing day, filled with watches. We visited Halls 1, 3 and 4 today. The day started at Ebel revising the watches dedicated to soccer:


Ebel Limited Edition AFC AJAX (150 pcs)


Ebel Real Madrid Tekton (Bezel is made of sapphire glass, instead or rubber).

Going from soccer into another sport, Graham dedicated its passion for racing:


Graham GMT Flyback Chrono Racing

What do you think of the infamous ChronoFighter models by Graham?


Graham ChronoFighter


Graham ChronoFighter


Graham ChronoFighter

Not only Graham loves racing, the brand that has the most racing DNA of all, is Heuer! I already wrote that I feel it is a year of ‘going back to the basics’. They also went back to their roots and honoured the 40th anniversary of the Heuer Monoca:


A replica of the first Monaco, they kept it as close as possible to the original ‘Heuer Monaco 1969’. What I really liked is that they used the old Heuer logo and not the most recent TAG Heuer logo on the dial, case back and folding clasp.


Back-side of Heuer Monaco 1969 re-edition (original calibre 11).


Modern interpetation of the TAG Heuer Monaco, available from summer 2009!


TAG Heuer Grande Carrera Calibre 36

Yesterday we did not have time to finish our meeting at Hamilton and went back today. This color really cought my eye:


New Hamilton ETO in unique colour: GunGrey!


New Hamilton strap: Leather or rubber? Yes… It is a rubber strap with a alligator print! Cool, no?!


Modern (?!) interpetation of classic Pilots watches…

Talking about re-editions and vintage models, one of the most legendary diving watches in the Omega collection is the Seamaster PloProf:


Omega Ploprof 2009


Sideview of the Omega PloProf


Omega Seamaster PloProf on my wrist (sorry for the blurry image).


With a matching folding clasp!

Going from legendary diving watch, to a very interesting diving watch made by Oris. The talking piece of Oris in 51mm (who says big is over?!):


New Oris Diver Chrono 1000m with VERY special bezel…


Oris Diver 2009: You have to lift the outer bezel vertically and only then can you spin the CERAMIC diving bezel. The chrono is 100 bar waterproof.

Tomorrow is my last day in Basel… Already bugged out that I will not have time to see everything that I planned on seeing… One week of Watch Magic is simply NOT enough :s

Who’s the King?

August 16, 2008

We all love ranks, lists, competition and knowing who is the best. In the watch industry many players crown themselves as the king of the industry. Consumers always want to own the best watch. But who is actually the king?

Is Rolex the king of the watch industry, like many people (want to) believe? Or, did Rolex crown itself as the king of the watch industry, and therefore have a crown as their logo?

Rolex Logo

Rolex Logo

Like many people, I always wondered what watch brand was the absolute number 1. But who and what defines the number one? As a small child, I always believed the one that produced the largest quantity of watches, is the number one. Since I was infected with the Swatch virus, that started in 1983 (I was four and had a Swatch on my wrist – I couldn’t even read time), I believed Swatch was the number one. As I grew older, Swatch grew to be a huge international hype. When I grew even older and started to understand the value of money and recognize the diversity of the many brands, I believed Rolex was the number one. Not only because it seemed everybody who spoke about watches, spoke about Rolex; but also because it seemed the ultimate watch brand for many.

When I started high school and started to work in the family business during holidays, I learned there were so many more brands out there. Many of them weren’t even sold in The Netherlands and I started to fall in love with Jaeger-LeCoultre, Patek Philippe and Audermars Piguet. Now that I am working in this industry for more than 10 years, I have the greatest respect and appreciation for the geniuses that are still alive and create amazing, innovative movements (like: FP Journe, Richard Mille, Grubel & Forsey, Renaud & Papi, etc). But also people, like Kurt Klaus, who work for the major brands (I had the honour to have met him on many different occasions and even drove him from one side of The Netherlands to the other – the poor guy, I drilled him for the complete two hours).

At the end of this post I will share my opinion of whom I believe is the king, but first let’s define some means to measure the greatness of a brand. First and foremost, people will always define quantity. But this is tricky, since some Japanese or Chinese manufacturers most probably produce more pieces annually than the complete Swiss watch industry. So, we need to narrow this down. The second definition that pops into my mind is exclusiveness and that is immediately linked to luxury. And, to measure exclusivity one can use recommended retail prices and therefore crown the most profitable watch brand as the king of the watch industry?! But, what about values at auctions? Let’s propose historic and/or market prices as a third definition.
As a fourth definition we could consider is independence as a parameter… We all know “money makes money” and with enough marketing budgets, one can ‘buy’ exclusiveness, market shares, brand awareness and raise auction priceses (Antiquorum Scandal and remember the Omegamania auction?!). So, independent brands should be considered more successful, if they excel in a market that is dominated by huge globalized public listed companies (Swatch Group, Richemont, LVMH and others). And, last but certainly not least, perception is a parameter I want to consider. For my bachelor thesis I did research about brand identity versus brand image of watch brands. This is a very interesting and timeless subject: The self-perception of almost anyone (persons and companies) is different if compared to how we are perceived (but then again, the truth is in the eye of the beholder 😉 ).

If we look at these five parameter to define who is the king of the watch industry, we have to analyze each paramter:

1. Quantity
As discussed already, some single Asian brands produce annually more watches than the complete Swiss industry, so we need to narrow it down. In the trade we generalize and split the market in to three segments: Low-end (up to EUR 1.000), mid-range (between EUR 1.000 and EUR 3.000 – some say EUR 5.000) and high-end (a.k.a. Haute Horlogerie – from EUR 3.000 or EUR 5.000) and up. And in the high-end there are many sub-segmentations possible, but we will neglect those for now. In the low-end, Seiko is the king of quantities. In the mid-range, I find it very difficult to quantify, but I personally believe it is Tissot (please share if you have any statistics – I couldn’t find any now). And, in the high end it is indisputably Rolex! Although Rolex does not publicize any figures, there are rough estimates that Rolex manufactures about 1 million watches a year. We can conclude this by the figures the COSC publicizes.

COSC Certificate

COSC Certificate

2. Exclusivity/Profitability
Many watch brand nowadays compete for the title to have created the most exclusive watches. Some say the most expensive watch is the most exclusive (I believe that today this is still the Patek Philippe Sky Moon Tourbillon). Others say that this is not only one of the most expensive watches, but also a watch that has been produced in a limited series… Of course, a piece unique should win this title… lately people say it is the replica of the Breguet Marie-Antoinette. But let’s not forget the IWC Grand Complication Il destriero scafusia, Vacheron Constantin Tour de I’lle and Blancpain Le Brassus 1735 Grande Complication. Of course there are a few more that belong in this list. But measured overall, Patek Philippe is the brand that creates and manufactures the most exclusive watches in the market (you’ll rarely find discounts on these watches – many models will be sold with a premium). Their aim was from the start to create the best watches in the market and even today they live by this promise. Linked to this, I dare to say it is the most profitable company, if measured by market price divided by quantity sold annually (no numbers know, so this is pure my personal hunch).

Breguet Marie-Antoinette

Breguet Marie-Antoinette

3. Timelessness/Market Values
Although recommended retail prices could indicate how exclusive a timepiece is, but wouldn’t market prices be an even more important tool to classify the exclusiveness of watches? As discussed in the previous paragraph, there are only a few watches that actually sell above the asking price. The first watch that comes to mind is the Rolex Daytona in stainless steel for a watch that is still in production and on auctions almost all vintage Patek Philippe watches break records (In the top 10 of The Most Important Vintage Wristwatches (made before 1990), all 10 watches are by Patek Philippe!). Therefore I believe Patek Philippe is the undisputed king of timelessness and holding its value. Or even more important, proving to be a good investment: It will only go up in price. On top of that, nowadays, almost every new launched Patek Philippe watch sells for a higher price than the recommended list price! But ofcourse the also produces models that make many of us wonder what the designers where thinking while creating these pieces.

Patek Ref. 1415 HU - Most expensive wrist watch (USD 4 million)

Patek Ref. 1415 HU - Most expensive wrist watch (USD 4 million)

4. Market size: Independents vs. Groups
After the quartz-crisis in the 1970s, not many watch companies survived and most of them that survived joint forces. Nowadays, we can conclude that the luxury goods sector is dominated by corporations. And this also counts for the watch industry. Many international watch brands (mostly haute horlogerie brands) are now part of a large consolidated corporation selling watches, jewelry, leather goods, hunting weapons and writing instruments. Although Swatch Group is the only luxury corporation that focuses on the watch industry, it is by far not the largest group, measured in turn over. The top 10 of luxury good companies that manufacture watches is (in 2006 in billion USD):

1. LVMH (Zenith, TAG Heuer, Hublot, Dior, etc.) = 20,2
2. Richemont (Cartier, Mont Blanc, IWC, Panerai, etc.) = 6,3
3. PPR (Gucci, Bedat, Sowind, etc.) = 4,7
4. Chanel = 4,6
5. Swatch Group (Omega, Breguet, Blancpain, Longines, etc.) = 4,2
6. Valentino (Valentino, Hugo Boss, etc.) = 2,6
7. Hermes = 2
8. Giorgo Armani = 2
9. Dolce & Gabbana = 1,4
10. Bulgari = 1,3

Unfortunately all these groups do not publicize the individual figures of the subsidiaries and therefore we can’t analyze and compare individual watch brands. On top of that the individual watch brands also do not publicize their turnovers and profit margins, so therefore we have no clue who is the ‘largest’ watch company by turnover. But if we have to guess what group is the largest, based on their turnover generated by pure watch sales, Richemont is definitely the largest! Although LVMH is more than three times larger, their watch sales most probably do not surpass those of Richemont! We have no clue how profitable Patek Philippe and Audermars Piguet exactly are, but everybody in the watch industry indisputably assumes that Rolex is the largest and most profitable individual watch brand/company. There is no manufacture that produces around 1 million quality watches annually with an average price of approx. USD 8.000! And then we do not even take Tudor in to account, but that is probably pocket change for Rolex S.A.?!

5. Perception
This is a difficult one! As written before, I have written my bachelor dissertation about Brand Identity versus Brand Image. They only way to quantify this is to do a large-scale poll. In this poll one should assess the identity of a brand and compare it with the perception of its consumers. So litteraly compare the image of the consumers with the identity a brand. Again I emphasize that this post is my personal opinion and I am heavily generalizing here. My purpose is to provoke responses, so please do share your opinion. If I have to guess, I believe that Rolex believes they are the king of the watch industry (therefore have a crown in their logo). On the other hand if you ask the majority of the population and ask them what the best watch brand is, probably 80% will say Rolex! Rolex ranks number 72 of the Top 100 Best Global Brands (Newsweek), so that is not very strange. The funny things is two years ago the Swatch Group publicly attacked Rolex (the subject of my next post), by claiming that in three years time Omega will be bigger than Rolex, measured in turn over. So, in 2006 Nick Hayek Jr. claimed that by 2009-2010 Omega will be bigger than Rolex (therefore admitting Rolex is the king) and aiming to be the king of the watch industry.

What about the 20% that doesn’t believe that Rolex is the king… Many people who have decided to by a good watch, go out there without analyzing the large selection of watches available and buy a Rolex. They buy a Rolex, because they believe they bought ‘THE’ best watch out there. But, often they are disgusted by the fact that ‘everyone’ has a Rolex (or Lolex – or any other look-a-like). If their passion for mechanical movements grow, they are obliged to look into other brands. If you want a chronograph (and have a Daytona or can’t get one) you are obliged to look at other brands. If you want a watch that is even more complicated, you definitely have to look elsewhere. So, for lovers of mechanical movements and complications, I believe Patek Philippe is the undisputed king, and I simply base this notion on the fact of the auction results! But even the true WatchFreaks often love Rolex watches too! Rolex has made and still makes iconic/minimalistic/qualitative movements and watches! Personally I have loved Rolex, then the love passed, it come back again and now turned into a love-hate relationship…. Yes, I know: Love is complicated 😉 Maybe a nice topic for another post! 

Personally I believe that the King of the watch industry is a watch brand that finds a balance between heritage, innovation, quality and timelessness (read: is of will be a legend). Personally, I believe Patek Philippe is the king of the industry, because:

– Like many other watch brands, has an amazing heritage. It is still a family company (but not the Patek or Philippe family – but still independent).

– It is one of the most innovative watch manufacturers out there. I believe Patek was the first one to create silicium spare parts in their movement. But to be honest, Audemars Piguet and Ulysee Nardin are as innovative. But it underlines again that the independents invest more in the long term, versus the short term profit strategy of many groups.

– I believe innovation and quality go hand in hand, but when Patek Philippe was founded their aim was to produce the best movements and watches out there. This is proven by the results on auctions. Today they also produce one of the best watch movements and watches, this is underlined by the huge waiting lists for models and the premiums people are willing to pay for the new watches!

– In the battle of who produces the largest watches, Patek still sticks to the ‘old-fashioned’ small and thin movements. I believe that is very daring, but then again, that shows vision and faith in their own identity and strategy!

– Last, but not least: Exclusivity/Distribution. Even though Rolex doesn’t really have many retailers compared to other brands, Patek is truly exclusive. It only has a handful retailers and they only work with the best retailers in every city/country! No concessions to quality and service! 

The funny thing is, I believe that Patek is the King of the watch industry, I still do not have the urge to run out and get one particular Patek at this very moment. I do love the 5960p, but still I love my Portuguese Chrono more (sorry!). And I always loved the Nautilus (am a huge fan of Gerald Genta – AP Royal Oak is my favourite), but even though the new 5711/1 grew to a good size of a 43mm, I find the watch thin (case and bracelet)! But what an amazing movement and what a finish on every single detail! 

Yes, when I am a bit older and have a lot more grey hair, I definitely want a Perpetual Calendar in white gold (5140G). But still, 37mm is very small. My wrist is not to big and therefore I don’t wear watches over 44mm, where 42mm is ideal for me. 39mm is really the minimum for me, but just for the love for the brand and this model it is a dream to wear the 5140! But first I want the IWC Portuguese Perpetual Calendar (IW502218).

I am very curious who you believe is the king of the watch industry!

A mechanical greeting,

Alon

P.S. Rolex was founded in 1905 and the Crown-logo was registered in 1925.

Omega X-33: Repairing in Zero Gravity

July 26, 2008

Danish watch website TimeGeeks (“because stamps are for nerds”) came up with this YouTube movie of an Omega Speedmaster X-33 that is being repaired in zero gravity. To be honest, the Speedmaster X-33 might be a good investment, since they are not being sold anymore. It was introduced in 1998 and only upgraded once (Omega got rid of the shiny bezel and other shiny parts to replace it by brushed ones). Omega discontinued the X-33 in 2006. Ryan Rooney dedicated a web site on the Speedmaster X-33, which is really worth visiting. Anyway, Kristiaan Hagen of TimeGeeks reported this great movie about repairing one in space. NASA astronaut Don Pettit made and published this movie.

p.s. Thanks to Bernard for letting me know about this movie 🙂

Free tickets to “Juwelen in het Amstel” for this weekend

June 16, 2008

Juwelen in het Amstel – Exclusive Event in Amstel Hotel Amsterdam

Invitation Juwelen in het Amstel by Ace Jewelers

This is the third time Ace Jewelers Group will be presenting the following watch brands: IWC, Omega, Breitling and Baume & Mercier, exclusively during the elegant event: ”Juwelen in het Amstel” in the luxurious Amstel Hotel in Amsterdam. During the weekend of Friday 20th of June until Sunday 22th of June, 2008, Ace Jewelers will also exclusively present the jewelry of the international brands: Noor Diamonds, Jean-Marc Garel, Marco Bicego, MeeVIDA, Baskania, Stockert Diamonds en Royal Asscher Diamonds.

As CEO of Ace Jewelers I am honoured to offer the WatchFreaks on this blog, ten entrance cards free of charge, valid for 2 persons. Please send an e-mail before Thursday June 19th, 2008 to: amstel@acejewelers.com and the first ten senders, will receive the entrance cards by mail.

Name of Event: “Juwelen in het Amstel” – Amstel Hotel Amsterdam
Entry Fee: EUR 45,– per person
Date and Time: Fri 20/Sat 21/Sun 22 June – whole day
Address Details: InterContinental Amstel Amsterdam, Prof. Tulpplein 1, 1018 GX Amsterdam, The Netherlands

Additional info: http://www.interevent.org/ja

Hope to see you there. If you have any questions, feel free to contact us.