Speed and Swiss precision are synonymous with extreme sport.
As the lines between sport and luxury continue to blur, luxury goods purveyors are pressured to create exclusive products that marry technical performance with the cache of the extreme sports their male collectors covet as well as play. China is often cited of late as a challenging retail environment, and timepieces and luxury autos alike must find creative ways to stay relevant to an increasingly peripatetic audience.
For instance, Ferrari and Hublot paired to create the MP-05 timepiece quenching one’s need for speed. Crafted along with Ferrari engineers, it is the watch counterpart to its flagship “La Ferrari” supercar. Packing a whopping 637 components, and record-breaking 50-day power reserve, The MP-05 sports 11 barrels, recalling an engine like ‘spinal column’ down the center of the dial.
Blancpain and iconic luxury carmaker Lamborghini’s recent alliance combines tradition and innovation. Blancpain, as main sponsor of the 50th anniversary of Automobili Lamborghini, also boasts its own Swiss race team with its very own CEO Marc Hayek behind the wheel for the Blancpain Endurance Series. The L-Evolution R Chronographe Flyback à Rattrapante Grande Date features a flyback split-seconds chronograph mechanism and combining carbon fiber and cutting-edge technology, reflects Blancpain’s strong commitment in GT racing.
Perhaps the ultimate in speed and extremes belongs to none other than Zenith watches and gives new meaning to the term “catching air.”
On October 14th 2012, strapped with the El Primero Stratos Flyback Striking 10th chronograph, the exclusive timekeeper and sponsor of the Red Bull Stratos mission, Austrian skydiver Felix Baumgartner jumped from a space capsule suspended from a helium-filled balloon. The jump lasted 9 minutes and 18 seconds and set a triple record: the first jump to break the sound barrier in free-fall, the highest manned balloon ascent, and the longest free-fall. He was wearing a Zenith.
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Felix Baumgartner-Red Bull Stratos Mission-Zenith Watches
In the course of his freefall, Felix Baumgartner first experienced 25.2 seconds of complete weightlessness. He then entered a series spin phase that reached a peak of 60 revolutions per minute, sending him into a flat spin that lasted about 13 seconds, before managing to stabilise his trajectory.
“From the initial acceleration through to breaking the sound barrier, it’s as if you are floating in space, before suddenly picking up enormous speed. But you don’t feel the air around you because of its extremely low density. For almost 35 seconds, I truly didn’t feel the air around me because there simply wasn’t any. And then you enter a zone where the air layer is thicker. You have to maintain your body in an absolutely symmetrical position if you want to avoid going into a spin like I did.” Felix Baumgartner
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Felix Baumgartner Catches the ultimate air wearing a Zenith timepiece as he embarks on the RedBull Stratos Mission
I recently caught up with Jean–Frederic Dufour, CEO of Zenith Timepieces, owned by parent company LVMH, to get his take on the luxury consumer, China, and of course, Felix Baumgartner.
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Jean Frederick DuFour
Q-The heritage of Zenith rests in its relationship to the skies/flight.
What kind of impact has the Felix Baumgartner relationship had on the El Primero Striking 10th sales, and on Zeniths’ business in general?
Dufour-Of course Felix had a huge impact on the business. Our relationship with him has created a much greater awareness of our brand. It was the first time Zenith was viewed but such a large audience on a global scale. Our relationship with Felix also connected us with the brand’s roots. From the brand’s inception, we have always been about the “pioneering spirit” and those who were willing to take risk to achieve something extraordinary. Felix is not just a fleeting celebrity that will have short-lived fame. Felix Baumgartner is a modern day hero that will have his legacy, just as Zenith has its own legacy. Our partnership with Felix allowed the world to see Zenith and what we are about.
Q- 4 years into to your tenure with Zenith, you have steered the brand out of crisis into a major recovery. What is your advice for other executives embarking on similar turnarounds?
Dufour-I think in order to achieve any sort of greatness, you must take risk. You also need to a strong background and a lot of experience in your field. From that experience, you can build on it that will give you the confidence to make those tough decisions. You need to be not only just a good manager but also a true leader. I believe in the 4P recipe:
Product (that is where it all begins and where you gain your strength. It is based on your inherent knowledge of your product)
People (Having a strong team is extremely important. You need to have the right people working with you so you can build together)
Publicity (you need to have a clear message and strategically develop a plan how to communicate your product)
Passion (Passion is critical. If you don’t have an emotional connection, you will never accomplish your goals. You must strongly believe in what you are doing in order to achieve any kind of valuable performance. )
You mix the 4Ps with a lot of hard work and this is the perfect recipe for success.
Q- Much has been said in the U.S. about the possible downturn in luxury goods demand in China. Yet, at Basel it seems it was hardly a concern with most vendors. Your thoughts?
Dufour-China is different than many other economies. In China everything is directly connected with politics, economy, and consumer demand. While there may be a change in local consumption of goods, there is still a very strong consumption of Chinese “travel/tourist consumption.”
Q- Innovation is in your brand DNA. How does Zenith maintain that authenticity?
Dufour-Developing products that are not currently existing in the market is essential. Zenith has always been about creating a new feature or product that never existed before. Our constant drive to be innovative is what connects us to our past. For instance, we have over 300 patents since the company started. We are continuously pushing ourselves to create a new extraordinary timepiece for the market.
Q- Luxury Timepieces and “Pop-up” retail aren’t exactly synonymous. How was your experience with your pop-up endeavor?
Dufour-The “Pop-up” experience we created has worked very well depending on the market. You are able to catch traffic in an area where you may not be able to be on a permanent basis. If you create a luxury experience, you will attract your consumer.
Q-How has Zenith weathered the storm vis a vis volatility in gold prices?
Dufour-Gold is only one part of our timepieces. The heart of the watch is its movement. Gold prices will always go up and down but a watch is not just about the metal, it is also about its craftsmanship. Of course when we develop new products, we price accordingly. However, when you buy a gold watch, it doesn’t matter because gold will always hold its value during the lifetime of the timepiece.
Q-Do you believe the luxury consumer has changed? Is luxury evolving?
Dufour-I do believe that luxury consumers are always looking for value. The term “luxury” has become very generic at this point and also becomes overused. You need to communicate your message clearly to the consumer so they understand the definition of luxury. Thanks to the digital age, there are so many creative ways we can demonstrate how Zenith is a true luxury brand.
Q–What is the biggest challenge for luxury in the future?
Dufour-We need to keep the level of offered goods lower than the level of demand. We need to avoid an oversaturation of goods in the market. Zenith’s goal will continue as we always have done, work on our craftsmanship, innovation and always introduce unique pieces.
Q-Zenith has conquered the skies-what’s next for the brand?
Dufour-In 2015, Zenith will achieve an extraordinary milestone – our 150th year anniversary. Our values are as strong as they were in 1865 when Georges Favre-Jacot created the manufacture. In the future, we will no longer be the best-kept secret in watchmaking.
Via WWD:
* MAY 28th Swiss watch exports rose 5.7 percent in April, the Federation of the Swiss Watch Industry reported on Tuesday.
Foreign sales of Swiss timepieces reached 1.8 billion Swiss francs, or $1.9 billion, in the month, according to the federation. This followed a 0.6 percent increase in March and a 2.5 percent dip in February.
*Swiss watch exports for the first four months of the year totaled 6.5 billion Swiss francs, or $7 billion, a 3.3 percent advance compared with the same period last year.
*In Europe, Germany was up 19.8 percent and Italy reported a 16.2 percent advance, while France tumbled 15.2 percent. Sales held up in Japan, the United Kingdom, the Middle East and Spain.
* The volume decline mainly affected watches costing less than 200 Swiss francs, or $213, which were down 11 percent on the month. By contrast, timepieces in the range of 200 to 500 Swiss francs, or $213 to $533, posted a 19.4 percent jump in the number of pieces sold abroad.