But this is Zenith. I guess I can be a romantic when it comes...

Jun 13, 2014,09:19 AM
 


to these things. Also the reason why I don't make a ton of money. 

But then again, I never really needed to wink

Thanks for sharing this article. 

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Controversy on outsourced movements: Zenith explains its move in a Financial Times article

 
By: Ornatus-Mundi : June 11th, 2014-10:45
Dear All: thanks to my fellow moderator Andrew Daley I can now provide you with an article recently published in the renowned UK newspaper Financial Times . Therein Zenith's global marketing director Juliette North very openly explains the reasoning behin...  

The last sentence is very telling...

 
By: brandon1 : June 11th, 2014-11:43
Very interesting read; thank you for sharing! I think the last line is particularly interesting; the suggestion that we may begin to see more brands stepping 'down' to sourced movements, in order to evolve to face the new economic realities of the industr... 

The 'in-house' trend really is late 20s/early 21st century marketing...

 
By: Ornatus-Mundi : June 12th, 2014-12:31
and like you I can understand why brands like to use it to sell their watches and distinguish themselves - its so easy to 'understand'... However, a watch is much more than a movement, and the other qualities (and those of the brand) are much more difficu... 

This is very sad...

 
By: DonCorson : June 11th, 2014-13:48
As I see it, there are at present only two high end industrial watch companies (Swatch Group and Rolex). The rest are more or less boutique marketing houses, especially LMVH. Why Zenith can't sell more than 30'000 watches a year is a mystery. Do they get ... 

Don, I understand where you are coming from but...

 
By: Ornatus-Mundi : June 12th, 2014-12:34
I think you put a but much emphasis on the movement (as I said fully understandable as an accomplished watchmaker ,-)). Just because Zenith resorts to outsourced movements does not meant that the watches are on the same level as a Tissot (which besides do... 

I understand, but I don't understand...

 
By: aaronm : June 11th, 2014-13:57
I entirely understand why, if they want to expand the brand, they need to have a lower entry-price and to achieve that, they must forgo the in-house movements. What I am less clear on is the need to expand the brand. They're not a small company, or even p... 

Where else are RD movements used?

 
By: Ornatus-Mundi : June 12th, 2014-12:54
I would risk the statement that RD is not exactly a success story either. So, if according to Ms North 'purists' (read: collectors) are not the main target audience I guess it would be difficult to market the advantages of a Zenith movement in a Dior, TAG... 

Cartier

 
By: aaronm : June 12th, 2014-16:32
I don't remember if any particular RD movements are used completely unchanged, but they are the basis for several of the recent complications, i.e. the Ballon Bleu Flying Tourbillon A

The Circle of Time

 
By: MTF : June 11th, 2014-18:35
Dear forumners, What's the problem? This is the natural cycle of time in the watch industry. By the fact that some people are complaining shows how "young" today's consumer or collector of mechanical watches are. Even our more senior members remember buyi...  

very well put!

 
By: Asad A Awan : June 12th, 2014-02:59
Sir, your response reflects a very deep understanding of human psychology and the retail market..I am a Pakistani and have lived in six different countries and currently living in South Korea. your point about new lifestyles and artificial gods' creation ... 

The watch industry and its customers - what came first, and what follows?

 
By: Ornatus-Mundi : June 12th, 2014-13:13
Dear Melvyn thanks for your very refreshing perspective. Yes, I agree with you on the cycles. Demand comes and goes, tastes and preferences change, and the industry has to cope with it. I see an industry confronted with immensely expensive overheads due t... 

Sad indeed

 
By: Spellbound : June 11th, 2014-18:41
Zenith has decided to turn its back on it's loyalists. It would be fine if these moves would be accompanied by moves to make the best possible watch and to innovate. I have no issue with outsourcing so long as this is reflected in the price and they do no... 

But I read the statement such that they indeed want to focus on innovating...

 
By: Ornatus-Mundi : June 12th, 2014-13:02
at the level of the El Primero (with all its iterations and derivatives, from Minute Repeater to a basic three-handed watch) and forego the level of Elite at an in-house status. While the Elite is an outstanding movement, its not exactly a star in the app... 

Shaky start

 
By: f_klo : June 11th, 2014-20:46
I can't say that Zenith's decision to start using outsourced movements is the wrong direction for the brand as it is still too early to tell. But I must say that the "Pilot Type 20 Extra Special" a bad start. Here's a few classic examples why. 1. Customer... 

I fully agree with you, and the only explanation I have...

 
By: Ornatus-Mundi : June 12th, 2014-13:04
is that the Sellita-thingy is an afterthought where they had to use the just revived Pilot collection exactly because this one is actually attracting new (and younger) customers. Best, Magnus

At the end of the day, it is about running a business

 
By: rnaden : June 11th, 2014-22:20
While I'm not thrilled about the news, I don't really have an issue with this. IMO, they're taking the same path many other watch manufacturers/companies are on in broadening the appeal to the market, from the purists to the man on the street who's lookin... 

Right on !

 
By: DonCorson : June 11th, 2014-23:38
+1 "What I will have an issue with is not so much the movements, but the marketing that goes about endorsing just about every private club and sports star out there and passing those costs down to the consumer, which will then negate any potential price e... 

Thanks for your opinion, indeed, it could be beneficial even for us purists...

 
By: Ornatus-Mundi : June 12th, 2014-13:06
if - and this is a big IF - they play it well. I am inclined to give the incoming CEO a carte blanche on this. Magnus

Zenith has done it, others have/will do it, and its a reasonable decision!

 
By: Ornatus-Mundi : June 12th, 2014-13:48
Dear all: I took the liberty of taking a few days to ponder about this decision. Initially, I was taken aback by it, but the more I think about it and the more I read the contributions here (THANKS SO MUCH!) the more I am confident that (partially) resort... 

Extremely well put

 
By: Spellbound : June 12th, 2014-17:14
Very well said Magnus. Like I mentioned, I have no issue with the move to partially outsource. I was not impressed with the way they quietly introduced it in a watch labelled Extra Special. And I have yet to see how the movement is finished. I am also a l... 

But this is Zenith. I guess I can be a romantic when it comes...

 
By: Echi : June 13th, 2014-09:19
to these things. Also the reason why I don't make a ton of money. But then again, I never really needed to ;) Thanks for sharing this article.

I'm Not Convinced

 
By: Tim_M : June 20th, 2014-09:45
All this proves is that LVMH doesn't understand the brand. This move will alienate the current clientele without drawing a new set of loyalists. Already, it's difficult to see how a high-volume Zenith is anything but duplicative of TAG Heuer, a brand that... 

You bring up a very valid point comparing to the other watch conglomerates...

 
By: Ornatus-Mundi : June 25th, 2014-05:20
Swatch certainly did a wise thing in that the split their customers into various levels served by different brands , not trying a one-brand-fits-it-all approach. I am not saying that Zenith is trying to do that, its to early and in addition - next week we... 

Obviously

 
By: Ares501 - Mr Green : July 2nd, 2014-14:30
they read PPro's Zenith forum :) I think that apart from the fact that all manufacturers use different online resources to feel the pulse of customers our CEO MTF already said it in this thread "Zenith did NOT announce they were abandoning in-house moveme... 

a 'but' that causes a second 'but'...

 
By: Ornatus-Mundi : July 3rd, 2014-00:22
'but 1': In the FT article it was stated that previous CEO Mr Dufour announced the demise of the Elite movement. Which immediately raises... 'but 2': the announcement of the new ladies' timepieces with the Elite movement came on 2 July - the 2nd day in o... 

Without any false pretention

 
By: Ares501 - Mr Green : July 3rd, 2014-02:11
that I'm God given or knowledgeable or of any merit but I feel and see that life is full of ifs and buts (pun not intended) so world of horology is not exception Life is one big compromise ...some learn it sooner some later some too late...some hard way o... 

Outsourced movements

 
By: riverside / Henry : July 3rd, 2014-18:43
If Rolex could use El Primero movements, and Patek Philippe could use Lemania movements, it is understandable that Zenith uses Sellita movements.

My 2 cents

 
By: dreamwalker168 : September 12th, 2014-16:46
The reality is that Zenith is only known to the cognoscenti. Ask your non WIS friends, family, and colleagues to name an example of a "good" watch and inevitably Rolex will be mentioned. If you had a couple of grand to blow on your first good watch the ch... 

But have you read...

 
By: Ornatus-Mundi : September 13th, 2014-06:17
that the Sellita movement are - rumor has it - already history? More here: Cheers, Magnus