Ulysse Nardin

My Basel '07 tasting notes, Pt. 2: The nice side of consolidation

Some fans of Ulysse Nardin might have expected more when they were shown this year’s novelties at the Basel fair. Even slight disappointment was stated from various sides. But was this justified?

It is correct that the number of new watches presented by UN at Baselworld 2007 might have been smaller than in the last years. However, we should ask ourselves if the fireworks of novelties of the last three years should be taken as reference. I don’t think so.

Ulysse Nardin was - and still is - an absolute stronghold of innovation within the Swiss watch industry. No other brand has more patents registered. However, it is also one of the dwindling number of independent manufacturers, that have not been bought out by one of the big luxury groups. For companies like these, being innovative is a very risky and expensive issue, so it is clear that not every year a dramatic presentation of a novelty can take place.

Finding the old rhythm

Traditionally, Ulysse Nardin issued a major novelty every two or three years, which already is a breathtaking pace, given the fact that the development and prototype phase of a innovative novelty can last six years or more. The following chonology clearly shows these intervals:

1985: Astrolabium
1988: Planetarium
1992: Tellurium
1994: GMT +-
1996: Perpetual calendar “Ludwig”
1999: Perpetual GMT +-
2001: Freak (I)
2003: Sonata

If there were noteworthy novelties presented in the years between, these have been mostly watches developed with significant contribution from out-of-company specialists, so they were not completely designed by UN:

1989: Minute repeater and Split Second chronograph “Berlin”
1993: Hourstriker
1998: Monopusher chronograph
2002: Genghis Khan
2004: Minute Repeater “Circus”

But in 2005, the traditional scheme became distorted, with the presentation of two novelties: the Freak 28,800 “Diamond Heart” and the “Royal Blue” tourbillon. Instead of pausing in 2006, the 150 years anniversary put a pressure on the company to release yet another milestone novelty: the Anniversary 160 with the new Dual Ulysse escapement, and also the “Macho” with one of the market’s first massive palladium cases demonstrated UN’s strength in innovation.

However, active years following the Freak (I) in 2001, and especially the massive novelty-salvos in 2005 and 2006, somewhat spoilt the audience, raising the level of expectance for 2007. What we see this year, is a necessary phase of consolidation, after an overly increased activity in the past few years.

Getting the train on track again

There is an additional reason for the relatively low-visibility presence of UN in 2007: It is an open secret that there were some serious problems with the first, pioneer version of the “Freak”. Those watches that were defective showed several problems at once, and none of them was similar to any typical watch-related problems known before; they were the result of the radically new movement design, as well as the innovative escapement with its silicium wheels. In spite of the fact that the contractual warranty period was long over in many cases, UN invested its whole energy into the solution of the problem. All the master watchmakers at UN worked almost exclusively on the Freaks, and each of these watches had to be practically rebuilt from scratch, then tested for several months, and in some cases rebuilt again. This is the curse of being on the forefront of innovation: Pioneers have to deal with - and iron out - the problems, their successors then can profit from their experience.

Eventually, the “Freak-affair” could be successfully resolved, the trust in the brand Ulysse Nardin was restored; but a high price had to be paid for it: Throughout the watch manufacturing business, there is a massive shortage of talented and able watchmakers. So the companies cannot hire as many watchmakers as they would like, and in case of an unexpected problem, these might be spending all their time solving the problem, and not developing or assembling new watches.

For UN, the Freak affair meant that those watchmakers able to deal with the Freak, were also the only ones able to assemble the other top complications or specially innovative mechanisms. As a result, workforce had to be withdrawn from the production of other watches, as long as the Freak did not work as it should. The production of the Freak 28,800 even had to be temporarily stopped altogether, and it was an enormous challenge to meet the timeplan for the new Anniversary 160, which HAD to start delivery in the year of UN’s 150th anniversary.

The new "Freak DiamonSil"

I think it is clear for us, as watch enthusiasts, and fans of Ulysse Nardin, that the company needs this year to catch breath. Therefore, it is far from problematic if the number of new watches presented this year is not as large as some might have hoped. Other companies, much larger ones than UN, also did not show more than one really new watch, and to start with, the new Freak DiamonSil is a highly fascinating timepiece! Read more about it in the article specifically dedicated to the new watches!

Regards,
Marcus

This message has been edited by Marcus Hanke on 2007-04-30 07:00:57

My Basel '07 tasting notes, Pt. 2: The nice side of consolidation

My Basel '07 tasting notes, Pt. 2: The nice side of consolidation

Watch brands have the same tendancies as stocks

Fully agree. The problem is that some - CEOs and shareholders alike ...

Phew! Time to draw breath

Thanks for pointing out this important factor! ...

Excellent explanations and very plausible. I am confident that we shall hear more from UN>

You are so right, dear Lord Arran! Thank you very much ...