Kong's interview with Antonio Calce, then CEO of Corum, offers a rare glimpse into the strategic repositioning of a luxury watch brand in 2012. Calce's insights into Corum's history, product strategy, and market challenges provide valuable context for understanding the brand's evolution and its efforts to reclaim its position in high-end watchmaking.
AC :Â Antonio Calce, CEO of Corum
PPro : PuristSPro
PPro : Could you provide a little background about your previous roles in the watch industry before joining CORUM in 2005?
AC : After my studies I immediately joined the watchmaking industry. In 1994, I started at the Richemont Group as Manager of the Technical Department of the Piaget Manufacture and was then given greater responsibilities in the management of methods and logistics. In 1997, I became Director of Product Development for the Piaget and Panerai brands. This new experience enabled me to develop my strategic vision and to complete my technical and product profile. In 2000, I was appointed General Manager of the Panerai Manufacture and called to participate in the construction of the brand. Between 1994 and 2005, the Richemont group knew an important organisational and structural evolution. I benefited greatly from this experience, and from working alongside Mr Cologni, who facilitates and boosts one’s comprehension of the watchmaking profession.
PPro : What were your roles when you joined in 2005 before you are promoted to CEO in 2007?
AC : In 2005, I was invited to join CORUM as Vice President of Operations and took up the challenge of repositioning CORUM in the high-end watchmaking industry, where it was positioned since is creation in 1955, and redefining both its product strategy, the organization and managerial structure.
PPro : Â When you became CEO, what were your observations and thoughts of CORUM in term of the products and market positioning?
AC : In the nineties, Corum was late in adapting its management to modern ways; this is why the brand was so endangered when Severin Wunderman bought it out in 2000. He based the deployment of the
brand on a fashion business model and adapted all competencies profiles of the value chain to this fashion positioning. This strategy saved the brand financially. When I became CEO, the goal was to rebuild Corum’s know-how, by hiring human capital, to redefine the collection offering a watchmaking content based on historical products like Admiral’s Cup and Golden Bridge, and to recover a qualitative and selective distribution network. To regain our image and a positioning among high-end brands, it is a long term effort.
PPro :Â What business objectives and strategies have you set then and the timeline targeted to achieve? Any repositioning of the brand?
AC : The watchmaking industry underwent a radical transformation in the nineties. Corum did not follow this evolution. When I joined Corum, I set the goal to re-establish the brand to its legitimate level in the industry and give the brand the means to build lasting foundations. I have worked on reorganizing the company by investing in a performing industrial tool and investing in a qualitative and selective distribution network.
PPro :Â Please comment if there is any specific strategies for North Asia.
AC : Relying on the strong presence in Hong Kong, Corum focused on its distribution strategy in China by opening one to two POS per city with dedicated shop-in-shops only, and in the right locations to implement specific brand corners in the shops. A strategic plan with Corum Boutique openings and learning centers has been defined to build up our own visibility and brand awareness. Our goal is to open 15 boutiques and 30 POS the next three years.
PPro : Â After four years, could you recap where are you in your plan? Has the brand developed a particular niche and what does it bring to buyers of fine timepieces? What are the progress at various zones?
AC :
1) Niche consumers
Corum is a niche brand and it will always remain like this. Our product designs are truly different from what the market offers. And due to their distinctive design, strongly linked to our history, the consumer immediately chooses Corum watches for their uniqueness.
The Admiral’s Cup collection, strongly linked to the sailing world, appeals to devotees of nautical sports and sport activities in general. Its design remains unique since 1980 with the twelve-sided case and nautical pennants on the flange.
The Corum Bridge collection reflects the signature of the brand with the in-line baguette movement. This collection is unique on the market and speaks to curious clients, looking for something different.
2) Products
In 2011, in terms of product development, Corum has reached a fine stage of maturity. The brand development has been built on two major pillars: Admiral's Cup and Corum Bridges, by completing them year after year. Corum has recovered his watchmaking legitimacy and its high-end positioning, thank to our hard work on a clear, in-depth and consistent message during these last 6 years. Corum is in line with its historical roots and has a complete offer. Covering all customer ranges, with a strong product coherence.
3) Zones
Distribution network
-    has been reorganised by increasing the number of subsidiaries in Europe and in the world. Today we have 7 subsidiaries (USA/Miami, France, Italy, Spain, Germany, UK and Switzerland);
-Â Â Â Â has been reorganised and consolidated with our partners in Latin America (including Brazil), China and India, while still pursuing our relationships with our other partners on already established markets.
Retail – POS
Besides this integration of subsidiaries, Corum reduced its distribution network where it was needed, by closing 600 point-of-sales in five years.
In the contrary, Corum has given the means to grow and progressed in all zones, mainly in Asia with the opening of brand corners which testifies the will to consolidate its presence on the long term. Corum has set up new qualitative and selective retail points in the area since 2009 to reinforce its distribution network.
PPro : Â Why would anyone want to consider Corum when there are other choices?
AC : 1) for its watch-making content
Corum is always focusing to achieve a perfect match between design, technology, watchmaking content and collection identity, offering solely mechanical movements and adding high end complications. When buying a timepiece, the consumer will pay attention to the intrinsic value of the watch, and find in Corum’s watches what he looks for.
2) for its uniqueness
Corum’s watches are different! You recognize them at one sight as they all feature a unique design. The signature design features of the Admiral's Cup collection have been forging a legend for over 50 years with its twelve-sided bezel and its nautical pennants. The Corum Bridges collection is also unique on the market with the in-line baguette movement.
3) for its rarity
All models are produced in limited quantities. Our consumers are de facto people looking for rarity, and for something different than a mass market model.
PPro : Â The tagline "Unlock and Conquer" is quite sticky, any reason it is not used now?
AC : The slogan is actually quite difficult to understand when not associated with the key logo. Therefore we have decided not to use it anymore.
PPro : From the latest press kit, it mentioned the brand's 2 pillars are Admiral's Cup and CORUM Bridges. What is the plan for Romvlvs?
AC : In our product development we will focus on two pillars: Corum Bridges and Admiral’s Cup. However we will not leave besides the creativity and history of Corum and created a satellite pillar including the Romvlvs line, the Artisans and the Vintage timepieces.
PPro :Â Could you elaborate about the strategy for the Admiral's Cup Collection and also the Bridges?
AC : Corum has worked hard on its collections, forging consistency. The collections have been developed in- depth and by function, enriching our main collections every year with new complications. We do not only propose new designs, but true functions.
In 2011, we have structured the Admiral's Cup pillar around three separate worlds to cover 3 totally different customer segments, while remaining true to the signature design features of the collection: Legend with classic and elegant styling, Challenger with a more sporting chic dimension, and Seafender with watches built for extreme conditions.
Golden Bridge Automatic
In the same way, the Bridges collection continues to explore new horizons, particularly with the introduction of the first self-winding Golden Bridge movement with a linear oscillating weight or, in a more contemporary vein, with the addition of a three-day power-reserve indication on the powerful Titanium Bridge model.
Titanium Bridge Power-Reserve
In the Corum Bridges collection is organised around two lines; Golden Bridge and Ti-Bridge.
The Golden Bridge counts three movements (mechanical, tourbillon and automatic) and three cases, all have the same identity. The Ti-Bridge counts two movements and one case. We develop the collections with sense and logic, always keeping in mind the core DNA and the watchmaking content.
I can already reveal that the 2012 novelties in the Admiral’s Cup collection will be focused on the Legend line with no less than 3 new functions for men and one for women.
PPro :Â How would you describe this year (2011) collection?
AC : The Admiral’s Cup collection is very well structured and covers all customer ranges, meaning all ages and all types of customers, from the more classical to the sportiest. We have also lowered our entry price with the introductions of the Admiral’s Cup Legend 42 and 38.
With the Corum Bridges collection we appeal to another type of customer, one looking for high-end horology and an atypical movement, something unique on the market, something different to wear.
PPro :Â What is most important to you in a mechanical watch, the engineering or the aesthetics?
AC : When developing a new product, I am always focusing to achieve a perfect match between identifiable and unique design, high end technical know-how and collection identity with historical legitimacy.
We give importance to the coherence between both the intrinsic value and the design of the watch.
PPro : Were you involved in the Golden Bridge Automatic from the beginning? Also please highlight the challenges encountered over the four years of development, testing to production.
AC : I am a product-oriented person and it is natural that I am managing directly the design and development teams.
The Golden Bridge line already included the hand-wound movement cased in the classical version with or without dial. It was natural to develop an automatic version of the movement.
Linear Winding System
Three main challenges can be evoked:
1. The winding capacity: a watch is considered as automatic when its winding capacity ratio is equal or above 2. In other terms, wearing the watch for one hour should wind it enough to function for 2 more hours. With a limited distance (due to its linear move) for the oscillating weight to wind the barrel spring, it is more difficult to reach such a yield. 1000 hours of tests were performed in a watch-making laboratory in order to reach an average winding capacity that is considered as automatic.
3. To have the best yield possible, the carriage bearing the oscillating weight had to “float” along its parallel axes with the minimum of friction and resistance. 10 different combinations of materials between the carriage and the axes were tried before finding the right one. The latter is Cupro-Beryllium for the carriage and steel with a Ni-PTFE (Nickel-PolyTetraFluoroEthylene) coating, comparable to Teflon.
PPro :Â Have you got any more to reveal to our readers on PuristS' forums?
AC : I would like to thank you for your great interest in Corum. I will always promise you a real coherence between aesthetic and watchmaking content while respecting the Haute Horlogerie codes.
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Several pictures of the 2011 Admiral's Cup Collection
This message has been edited by Kong on 2012-03-02 12:32:50 This message has been edited by Kong on 2012-03-02 12:35:00 This message has been edited by AnthonyTsai on 2012-03-02 13:59:11 This message has been edited by MTF on 2012-03-08 05:31:49
