Girard-Perregaux: Quartz Crisis Impact on Swiss Watchmaking

Marc_I_Do_Not_Use_this_Account_Anymore · 2024-05-14T08:27:27Z

Explore why the Swiss watch industry, including Girard Perregaux, faces an 'innovation crisis' beyond the Quartz Crisis. Insights from collectors on market dynamics.

Marc_I_Do_Not_Use_this_Account_Anymore

WPS member · Girard Perregaux forum

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Marc_I_Do_Not_Use_this_Account_Anymore's thought-provoking post challenges the conventional narrative surrounding the Swiss watch industry's struggles, questioning whether the 'Quartz Crisis' was merely a symptom of a deeper 'dinosaur crisis'—a reluctance to innovate. His critique of recent Girard Perregaux releases, which he views as lacking true innovation, serves as a springboard for a broader discussion on the industry's historical resistance to change. This article explores the community's insights into the systemic issues that have historically hindered the Swiss watch industry's evolution.

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Link at the end of my post.

You may remember that I was quite upset with GP management for releasing what I consider to be yet another dial change reference last week. Solid gold ... so what. Same case, movement etc etc. Green sage. Lazy. And treating collectors as though they are not able to understand what is really being done. Using terms like "glorious" etc. Nothing wrong with the watch's look per se, it is just lazy and boring and one of many such releases this year.

The swiss watch industry has been known to be dinosaurs when it comes to change.

GP however was known for innovation. It was never in the DNA of the brand to be lazy.

In this article, it talks about the "Quartz Crisis" and how it was really a crisis caused by poor manufacturing integration. How it was caused by reluctance to change. How it was caused by extremely high costs and a extremely high swiss franc. It was caused by not being able to execute.

Sound familiar?

The "Quartz crisis" .. that term was only used in 1993. It blamed quartz and also laughed at it being something that had no real importance with collectors.

The reality is that it was more of a dinosaur crisis.

And I say again, the Swiss watch industry must be careful because another crisis is on the way for them if they do not wake up.

One word: China. If China were to stop making stuff for the swiss watch industry, you can say goodbye to it.

Already we know 80 % of what goes into a swiss watch is made outside of switzerland.

The biggest thing the Swiss watch industry has going for it is Heritage. Brand name. History.

And this is the very area that GP has sucked at.

GP better wake up and start getting some real experts in to document and present their heritage properly. They also better start to protect their brand image.

Without both heritage and brand image, they are just another swiss watch brand making gold watches and sitting on the achievements of those that came before them.

PS And this is why I say to look at the Neo Vintage period seriously. the 1990's was when the Macaluso family took over at GP and these were the glory years for GP. Their watches today go for a fraction of what they sold at during that period because many are not aware of their originality, fine workmanship and rarity.

It is a unique opportunity to get watches as rare as some of the ones I talk about at a fraction of the prices of the current production watches.

The current production watches MSRPs are plucked from the sky and it is not GP is doing anything to protect the secondary market prices. They are simply flooding the market with more and more supply with little thought towards control of distribution or true innovation. Simply raising the MSRPs with no correlation to design or technical improvements is a sure direction toward disaster for any luxury brand. Again, nothing wrong with the watches. They are just dated and do not warrant the current prices. GP's lack of control of costs does not mean they can simply take more money out of my wallet for what is essentially the exact same watch from 2016.

You decide.

www.europastar.com

Key Points from the Discussion

Industry leaders often prioritize the high margins of existing 'cash cow' products, diverting investment and attention away from nascent innovations, even those developed internally. This dynamic is not unique to horology but is a recurring theme across various industries, including high tech.
The challenge of embracing change is deeply rooted in established manufacturing and editorial processes. Once a successful product and its production methods are refined, disrupting them for innovation can lead to significant economic and labor upheaval, making companies resistant to necessary shifts.
The period of the 1990s and early 2000s saw a 'bloom' of horological innovation, with watch lovers at the helm of brands like Daniel Roth (producing Breguets) and Blancpain (under Jean-Claude Biver), and George Daniels perfecting his co-axial escapement. This suggests a potential correlation between industry stress and subsequent periods of creative resurgence.
A significant concern among collectors is the shift in industry leadership from watch enthusiasts to individuals with backgrounds primarily in marketing or finance. While these leaders excel in their fields, they may inadvertently overlook genuine horological innovation and accessibility, leading to a decline in compelling contemporary watches.
The most ironic and detrimental outcome of this resistance to change is when in-house innovations are stifled, only to break out with a competitor or startup, ultimately leading to the demise of the very company that originated the idea.
Understanding the past is crucial for accurately interpreting the present and forecasting the future of the watch industry, as perceptions often diverge from reality.

The Discussion

xto

May 14, 2024

Daniel Roth was producing beautiful Breguets Jean-Claude Biver was directing the same at Blancpain ….and George Daniels was perfecting his co-axial escapement and working hard to get Omega to take it Probably more Does it suggest that a period of bloom followed a period of stress? Or just that those were the boom years before the tech bubble burst?

xto

May 14, 2024

It makes a great case -backed by data - for the argument that industry leaders are slow to adopt innovations even when they arise from within. Short form: the margins from cash cows get all the attention and investment to the detriment of the next gen It’s an oft-repeated story in high tech That said, I personally have great affection for the intimacy of small volume makers. It might not drive an economy, but the craftsmanship is lovely to behold!

cazalea

May 14, 2024

I worked 40 years in publishing, creating various forms of technical books, and we had the same issues as the watch companies (just as the car manufacturers have). Once you have a great product, and you refine the manufacturing or editorial process, it's very hard to embrace changes that upset that. For many reasons. You can't do it without economic and labor upheaval. I help initiate and for a decade presided over the switch in our industry from print to CD. Another generation managed to endure

iceheller 1945 ✌️

May 14, 2024

But Thanks for the link. I have not read Europa star for many many years.

xto

May 14, 2024

Clay showed the effect in all sorts of industries, not just tech And yes, the innovation has no innate right to come into full bloom. The ironic part is when the innovation starts in-house, gets stymied and breaks out somewhere else (startup or competitor) and proceeds to kill the company that fostered the innovation in the first place

Derreck

May 14, 2024

It was a very interesting article, I learned a lot while reading it, it changed my perspective of Swiss watch industry and I also had great time while reading it.

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Girard-Perregaux: Quartz Crisis Impact on Swiss Watchmaking

Link at the end of my post.

And this is the very area that GP has sucked at.

Key Points from the Discussion

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