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SJX
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An interview with Matthias Schuler, CEO of Manufacture Roger Dubuis

Matthias Schuler took over as CEO of Manufacture Roger Dubuis two years ago, after Richemont acquired the brand from founder Carlos Dias. He was joined by several other Richemont colleagues, like Claude Vuillemez, now COO of MRD and formerly head of manufacture at Cartier, who occupy most of the senior management positions at MRD today. 

Matthias Schuler 

Formerly the COO of IWC, Schuler is a serious, methodical manager, appointed to bring about order to what used to be an unruly brand. In the two years since, Schuler and his team of five managers from other Richemont brands, have turned around Roger Dubuis. Products and quality control are now up to par. The next task is ensuring the future growth and direction of Roger Dubuis. In this interview Matthias Schuler talks about that, as well as the future of the Geneva Seal and the direction of the Chinese watch market, amongst other topics.

Addendum: As of 7 October 2010, Matthias Schuler was appointed head of the European subsidiaries of Richemont and taking his place will be Georges Kern, also CEO of IWC. I was under the impression this would occur later this year but it happened sooner than expected. And as I understand it Mr Kern will be interim rather than permanent CEO of MRD, and that someone else close to MRD could later be appointed CEO. 

Su Jia Xian (SJX): Tell me about your background. I understand you were from IWC?

Matthias Schuler (MS): I was working for IWC for about six years as the Chief Operating Officer, with the responsibility of overseeing the whole site at Schaffhausen, the global supply chain and customer service organisation.

SJX: And you are Swiss-German?

MS: I’m German actually. I’ve been living in Switzerland for 10 years now.

SJX: And you came to Roger Dubuis in?

MS: Richemont acquired the brand in August 2008, and that’s when I took over [as CEO] at Roger Dubuis. So it’s almost two years.

SJX: What do you think is your main achievement in the two years since?

MS: I think we managed to put the brand back on an international level. We have a global distribution, we are recognised by the global media, and people have started to talk again about Roger Dubuis. Obviously there is more to do, but we are back on track now.

We manage our global distribution, which I think is important. We have our own people in Asia, in Singapore, Hong Kong, Tokyo. So globally we have our own people dealing with the end consumer via the boutique or the retailer via our sales force.

SJX: What is the challenge remaining then?

MS: We want to establish Roger Dubuis as a global luxury brand. We are just at the starting point. We need to work on our collections. You have seen the 2010 collection – it is a big improvement in terms of the offerings and focus. But if you look at our product assortment we still are missing certain items, for instance we do not have a proper ladies’ line. I think we are missing some heritage pieces, Sympathie, Homage for example.

On the marketing side, we need to work on a better and more attractive brand universe. We are preparing that for the next two years.

So it is an external focus on the product collection and a stronger brand universe.

SJX: One of the issues facing your brand is the poor quality control, prior to Richemont’s acquisition. What are your plans to deal with the legacy of what came before?

MS: I should have mentioned this also, this is an achievement in terms of what we have done. We have been focusing on 12 to 15 calibres in our collection, and of these 12 to 15 calibres we have analysed and upgraded all of them.

For some calibres we have done major upgrades. For example, our Double Tourbillon which you have seen at SIHH 2010 [where] we changed more than 30 parts. The movement has been tested and has [undergone] the complete Richemont quality control process. So it is a new movement actually. You don’t see it but it is a new movement.

Excalibur Double Tourbillon skeleton  

We have also upgraded all the calibres we offer consumers. So there has been a major upgrading process in terms of our existing products. And in parallel we have started to use the COSC certification for our calibres to prove that we are able to get the best certification on the market for chronometry.

SJX: The early Roger Dubuis pieces were observatory certified. Did you consider going back to that?

MS: Besançon observatory?

SJX: Yes, the Besançon certificate.

MS: We consider the Poinçon de Genève and COSC a very relevant combination. The Poinçon de Genève gives you a guarantee on the conceptual, aesthetic and quality of the movement, while the COSC provides all the tests you need for chronometry.

And the third pillar of quality is an external laboratory we work with which does functional tests on all our watches. We test water-tightness, shock resistance.

SJX: Is it a Richemont laboratory?

MS: Yes, it is a Richemont laboratory. These three pillars are the best controls you can put in place.

SJX: Might the tests be done at the Cartier laboratory? (Cartier runs a large and well equipped testing laboratory near La Chaux-de-Fonds that serves other unknown Richemont brands.)

MS: (laughs) That is for sure one option.

In parallel we are working with the Poinçon de Genève authority to further upgrade the Geneva Seal. We are planning for the end of 2011, when the Poinçon de Genève has its 125^th anniversary, to have an upgrade of the Poinçon de Genève. So there are going to be very interesting things to come on the Geneva Seal. They will have a new structure above the Geneva Seal, called Timelab, which will focus much more on the technical values of the movement.

(Timelab, housing both COSC and the Hallmark of Geneva, was announced in June 2010. A foundation endorsed by the Canton of Geneva, Timelab also includes an R&D arm as well as a sports-timekeeping division. Amongst other things it aims to offer watch brands a number of services related to certifying watch movements. For more information visit Timelab’s official website: www.timelab.ch .)

SJX: We talked about the issues Roger Dubuis faced in the past. How are you going to change the perception of customers, or past clients, of the brand?

MS: Well you basically have to convince each client individually. Our boutiques call the clients in our database and we invite them to look at the new collections. Everybody who comes is enthusiastic and positive about the new collections. We explain to them what we have done in bringing our watches to the best level possible in terms of quality, and we offer them help for the watches they have.

We have a rich history, especially in Asia, Singapore, Hong Kong, of Roger Dubuis lovers. Some may have been disappointed in the past. You have to fight for each client, while working on new clients. Both are important.

SJX: Now that the brand is back on track in terms of quality control, what is your goal for the brand in terms of identity and design? The brand has gone through several phases, from Sympathie, Homage to Too Much, More More, then Easy Diver, K12. Where is it going next?

MS: Today Roger Dubuis has three identity codes – exclusivity, unique design and strong technical qualities in terms of movements. We will not change these three pillars of the brand. This is a unique combination you don’t find elsewhere in the market.

Now in terms of unique design, you can argue what a unique design is. Does it have to be yellow and red? Or brown and gold? I think we will always remain an extravagant brand, because that is what made Roger Dubuis successful. But we have to offer products in our future that are in line with our heritage. So we are thinking about the relaunch of the Sympathie line which will be very well suited for lovers of old Roger Dubuis watches. But it will still be a statement, it is not a classical watch, it will maintain the Roger Dubuis character. We will not become Patek Philippe and Vacheron Constantin.

We will remain at the high-end, with a focus on design, a bit more contemporary. We want to maintain that spirit, but contemporary also evolves over time. It has changed from classical to more lifestyle. So we have to evolve also, we want to be the leader in terms of design.

If you look at the products we have launched at SIHH, the Excalibur for example, is sharper, more masculine.

Comparison of pre- and post-Richemont Roger Dubuis: Richemont redesign on left, Carlos Dias original on right  

SJX: I wrote [in my SIHH 2010 report] the new designs are clearly Roger Dubuis, maintaining the brand’s look, but they are a bit neater and don’t go overboard.

MS: Exactly. The Excalibur is a masculine watch and it is the biggest success in the last two years. The Double Tourbillon skeleton for example, we produce them and they are immediately sold; there are clients waiting for these watches. That confirms the strengths of these watches.

SJX: So I assume your bestselling complication is the tourbillon, and of the tourbillon the skeleton versions are the most popular?

MS: Exactly, yes. We have been one of the first to bring [skeleton tourbillons] to the market. When you are the leader and it fits the market, you are successful.

Freshly assembled tourbillon watches at MRD 

SJX: You mentioned earlier the relaunch of the Sympathie, will that happen next year?

MS: We have various designs for next year but there are still certain technical things we need to solve.

SJX: Well if you decide to relaunch the Sympathie I hope you do it with the first generation shaped crystal and not the round one.

MS: (laughs) We have carefully analysed the historical design. We took the key elements and modernised them; the objective is not to make the same watch. So we’ll see for next year if we proceed.

SJX: On another topic, when I went on the tour of the manufacture, I noticed the finishing for all movements is done in the same place, in the same style. Do you have plans for a higher standard of finishing for the high complications? Patek for example finishes the minute repeater differently from the Calatrava.

MS: Well there are certain rules with the Geneva Seal, and we have to follow these rules. We already have the highest finish and we apply the same finish to the highest complications and to the entry complications.

SJX: There are certain things, minor things, that can be done. Like bevelled inward sharp corners. These will make the finishing…

MS: Even more competitive? Sure, I understand. We have seen what Patek does and we admired Patek for its technical competencies but we so far we have chosen to go that route. That might be an option in the future.

We have focused on improving the technical quality and reliability of the calibres; that has been the priority. In the next phase we may look at different treatments. But I think your input is valuable for future development.

Hand-finishing at MRD

SJX: Is there anything else you’d like to talk about?

MS: Well, despite being a young brand, I think the brand has been well established in Asia. We think Asia, which is Singapore, Hong Kong and in time to come, China, will be the key growth market for Roger Dubuis and we will focus the majority of our energy and investments into these markets.

SJX: If you want to succeed in China, you might need smaller watches.

MS: Yes, if you look at the Sympathie, historically it was a smaller design. It was not 45 mm, it was 40, 42, 44 mm. So for sure we will be looking into that.

SJX: Or even the Homage, the classical round watches. What about your other existing models?

MS: But nevertheless Excalibur is an iconic piece for us, so we will not adjust the size for certain markets. We already have a 42 mm watch for Excalibur, so we might make it slimmer. We are looking into these options.

But there is a new generation of Chinese watch buyer coming. The standard Chinese client buys Omega Constellation; I think that’s a good, reliable watch but it’s obviously not high watchmaking. The new chaps are younger, they are successful, they have made money fast, and they want something else. Do they only want classical watch? I’m not sure.

We’ve started our business in China only a year ago, so we’re nowhere basically. But the way we sell our watches in China, as in other markets, is we organise dedicated events with the retailers who invite their top clients. And at these events we sell the high-end pieces. The people there understand the pieces, they understand the brand, and they are happy to do in this direction.

So I think there is a new generation who are more interested in design, different interpretations, than the older generation. They like different cars, they don’t like the Audi A4, they might buy a Porsche, a Maserati, and they might buy different watches. You see Richard Mille is very successful in China. Every day I am sure there are new millionaires in China. These are the people we want to propose our product too.

SJX: So you will tweak your watches for new markets?

MS: Yes, the right tweak, not too much but not too classical; to be different enough. And I think Franck Muller also was very successful in the past. So I think we have room to grow there.

SJX: Well looking at the manufacture I can see you have unused capacity. I was speaking with Claude [Vuillumez, the COO of Roger Dubuis] just now and I said this manufacture can do 10,000, maybe 15,000 watches; he replied 10,000 maximum.

MS: Depends on the movement mix but yes.

SJX: So I assume you are some way from your maximum capacity. So what is your planned growth?

MS: Well we have seen very good growth last year, even in the face of the recession. We have also seen very good growth in the first two months of the fiscal year. But we will not push the growth, it will come with a more attractive product line, by winning new clients and winning old customers back. And it will come via international distribution; we have just established ourselves in many markets, in China we only have three points of sales. And also from the new marketing.

So I think the brand will grow very nicely over the next few years. We will be a niche brand, but I see 6000 to 9000 pieces within the next three to five years – still an exclusive brand.

Manufacture Roger Dubuis  

SJX: So my last question for you, which is your favourite watch from the range?

MS: My favourite is the Excalibur chronograph in pink gold.

SJX: The cal. 79?

MS: The cal. 78. The 79 is the rattrapante; I like that as well but the chronograph is pure. The movement is one of the best and most elaborate on the market. But I am not wearing it now, this is the Excalibur Triple Time Zone prototype.

SJX: You launched this at SIHH in January?

MS: Yes, and as you see with this we provide smart technical solutions with [pushers for the adjustment of the triple zones that can be activated by] credit cards. It’s tweak. It’s handy, practical; you always have credit cards. We also try to maximum consumer comfort.

SJX: This office was designed by Carlos Dias?

MS: Yes, I’ve left it untouched.

SJX: I like the Eames lounge chair, it’s a classic. But you’re missing the foot stool.

MS: We don’t have too much time to put our feet up. (laughs) I think the building fits the brand, it’s modern, with a lot of glass.

SJX: Indeed the manufacture has a lot of potential. Thank you very much for your time.

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