Horological Meandering

In 2006, I started writing my Basel tasting notes, but did not do so in 2011, and also in 2012, when I was ill and did not attend the Baselworld for the first time since more than ten years. This year, I want to renew this tradition, but for a change, I am posting my tasting notes as a starter, before the various brand reports. I think this helps to understand the attitude of my reports to follow.

 

Without doubt, 2013 will be remembered as a good year for Baselworld. No, it will be remembered as a great year. The time between last year’s fair and the 41^st edition this April was well used for the complete rebuilding and enlargement of the fairground not far from the town’s center. Basel oldtimers are used to the problems having to adapt to the ever-changing face of the city, since the area around the fair center is subject to permanent construction activity, driving not only street navigation systems into madness. But this enlargement of the Baselworld fair ground was more: Instead of filling the increased area with more exhibitors, the management reduced their number and offered larger spaces for the booths to those that were admitted.

 

Of course, this move was accompanied by a drastic increase of the cost per booth for the exhibitors. More than 122,000 visitors came to the fair, more than 3,000 journalists reported and an unknown amount of money was listed in the brands’ order books. We can be assured that the Baselworld again honoured its reputation as the most valuable luxury goods trade fair in the world.

 

“New era - new records”, as the final press release from the Baselworld jubilantly announced, and I congratulate - and would greatly be happy for them, if there wasn’t a tiny detail that I dislike more than a little bit about this year’s fair: the watch prices have been raised - again.

 

If we look at the past decade of the Bordeaux red wines, we see an extremely good period, with not one, but many excellent vintages, at least three of them being even called “century vintages” - within a single decade. The result: the prices of many bottles from most well-known chateaux have become more expensive already in subscription than they used to be for well-aged wines of best consumption age.

 

With the exception of the so-called “crisis” in 2007/08, that was rather a mere economical hiccup than a real crisis, the watch industry has been through a decade of constant growth, that is marked by - who wonders - an equally steep price increase.

 

Of course I am fully aware that a true connoisseur, or a Purist, has a perception of “value” that is independent from an artificially created definition in Mammon’s realm, vulgo price. But it is so much easier to appreciate this “value” when you are not living under a bridge, having sold your house for a luxury watch. I mean, is there any celestial rule dictating that an industrially produced watch, with a movement bare of any hand-applied finish, and a standard complication, like a chronograph or a second timezone, has to cost an average white-collar-worker’s net income of six or seven months? In stainless steel, or course. I think not, and there is absolutely no reasonable explanation for such a price level, other than that the prices demanded are paid. And, I fear having to admit, this is a rather convincing argument.

 

Apparently, the number of “connoisseurs” has globally increased so much that its demand for watches supports the ever-growing production output of the luxury watch industry. And you do not have to read all works by Adam Smith to understand that this demand is driving up the prices.

 

However, there is also no basic law forcing us to buy all those products. A “connoisseur” is somebody “connaissant”, someone who “knows”. Which includes knowing that high value and quality are not necessarily bound to the respectively newest product of a certain manufacturer; or to the products of a certain manufacturer at all. Quality and value can be found in all places, the game is dodging the constraining influences of the masses and finding the not so apparent gems. A true connoisseur will never let a marketing department define his impression of “value” and “quality”.

 

There is a world beyond Chateau Lafitte, beyond those Bordeaux proud of their 1855 classifications. Many, many Crus Bourgeois are absolutely excellent, very near, if not on par with the top wines. And if you want to find a magnificent value at even lower market prices, try the wonderful wines of the Pays d’Oc, or of South Africa, Southern America, Australia, New Zealand ...

 

Fortunately for us, a similar rescue is available in the world of watches: I was deeply impressed by the high level of quality and unique design offered by brands like Certina, Tissot, Rado, Citizen, Seiko, and so on. When you see an automatic steel chronograph in an excellent steel case, with a flawlessly finished, shining brown metal dial, and a reliable, yet mass-produced ETA movement, that is to be released this autumn at a price for about 1,000 Swiss francs, then you will accept the assertions of some “big” brands, that their watches are so expensive because of the high prices demanded by their case/dial/hands/crystal suppliers for this quality, with a huge grain of salt.

 

So what is under the line of my impressions from this year’s Basel fair? We as enthusiasts, connoisseurs or PuristS have to cease being mere puppets of the “big” brands’ marketing departments, trying to explain why their products have to be so expensive. Let’s make our own evaluations of quality and value, and let us draw our own conclusions. Finally, we should not hesitate to turn our backs on products and manufacturers that in our opinion have lost the adequateness of price and “value” out of their eyes. I am convinced, that sooner or later they will crawl back, begging for our attention.

 

Until then, I will enjoy good watches and great wines with less prestigious names printed on them, but with the awareness of having something good.

 

A propos “good”, I found something really good at the fair: the association of Swiss exhibitors at the fair had prepared a “survival kit for Baselworld journalists”, containing everything one needs to get through this madness named “watch and jewellery fair”:

 

* organic cereal bar against the worst hunger

* cough drops against a sore throat from too much talking

* hand disinfect lotion, you have to shake many, many, many hands ...

* watch polishing cloth - never leave home without one ...

* tissues, and - last but not least:

* sticking-plaster for blisters on the feet.

 

Dear Swiss exhibitors: thank you for caring!

 

. . . Bravo.

... smelling salts, to revive the visitor who has fainted from seeing one too many magnificent watches in a day

And this is something I learned and I try to preserve these last years: I have to step away from all the "price issue" as it has become insane concerning many brands.

I can think of one prominent Geneva brand in particular that has become expert at reducing the level of handwork in its watches while simultaneously putting prices through the roof....

More power to them if their customers will swallow it; I'll pass.

I look forward to your reflections in due course Marcus, allways a pleasure to see you in Basel, albeit briefly this year.

Cheers,
Tim

.. I cannot help making bigger my expectation for your upcoming reports....

Ken

and we could be sure to expect prices to continue to head North despite precious metal prices heading South. Yet, let's face it, we are all suckers. I wish there was some way for the watch buying public to knock prices back down to justifiable prices. Could easily be done if we all decided to not buy any watches in June and July.  Sorry, I know we are not susposed to talk about this stuff on this forum, but we are all so passionate about watches. But watches, IMO, are a Giffen good (going back to my high school economics). As price rises, demand rises. Ofcourse we all appreciate the artisanship, ingenuity, detailing, finish, and how many man hours etc, but don't take us for a ride. 

No message body

... (assuming your reply was to Marcus' parent thread post), anyone can discuss anything as long as it is with respect and courtesy to other members and industry in general.  Nothing wrong with writing or expressing negative things about the industry, if you observe the rule here:
home.watchprosite.com

So, please rather be encouraged to write anything you like, under those rules.

Thanks for your post!

Ken

Quote:

"Quality and value can be found in all places, the game is dodging the constraining influences of the masses and finding the not so apparent gems. A true connoisseur will never let a marketing department define his impression of “value” and “quality”.

We as enthusiasts, connoisseurs or PuristS have to cease being mere puppets of the “big” brands’ marketing departments, trying to explain why their products have to be so expensive. Let’s make our own evaluations of quality and value, and let us draw our own conclusions."

 

On the flip side: what is the poor CEO of a watch brand going to do in such a competitive environment, when shareholders are more concerned with the bottom line than providing absolute 'value' to clients? He/she wants to prove his worth by increasing market share, profit margins, ramp up production in order to sell more watches etc.

The quick and easy way to do this is to lower production costs - reduce man hours/watch in the manufacturing process, sell more watches at higher margins by promoting them as LEs, special anniversary, cross branding and jewelled pieces etc. Target the 'new money' areas with blatant marketing and brand ambassadors, tied in with high profile events. All of this does absolutely nothing to improve the overall workmanship and quality of the watches themselves.

If you take into account the often outrageous and exorbitant rents boutiques and retailer have to fork out in places like HK, New York and Tokyo for example, it's no wonder people are paying more for less as demand grows and resources such as experienced watchmakers are becoming scarce.

Well, this is the world we live in and it's up to each one of us to decide how best to extract the most from our resources and that which gives us the most pleasure. At least for those of us that visit this fine forum, we are fortunate to benefit from wise words and valued opinions from people like yourself.

 

Best

Fernando

No message body

Marcus,

 

Since you started this mini-liturgy, I am moved to adhere to the Form of Service at Alcoholics Anonymous:  "My name is MTF, and I am an addict..."

I used to be rich and famous but now "live under a bridge", as you so aptly described, while the top brands' MRSP proceed into the distance beyond my wallet.

My last three watches (2 gifts and 1 purchased by me) have been Rado, Oris and Rado again.

I think this trend will continue in my personal life and also on PuristSPro.......

 

Regards,

MTF

how not to echo your feelings on the matter...even though we much rather concentrate on the "pure"aspect of  it,we are forced behind closed door to deal anyway with the harsh reality of prices.

nt

That is completely right. There is a lot of quality in mass production ETA movements and non- manufacture pieces. If you check by the seconds that a mechanism may gain ir loose, Also there is no concensus because any mass production ebauche well sinchronized may keep CSOC standards.

Marcus raises an excellent point. Over the last seven years or so, my watch collecting activities have slowly shifted away from "higher-end" marques to the high-value marques given the steep price increases noted in Marcus' post.  While this is somewhat disappointing from a historical perspective, these price increases have had the positive effect of creating opportunities for those brands willing to take a higher value approach.

Best,
Mitch

Very well said, as a part of the industry, I could not agree more with you.

 

Talking about Basel with my co-workers, friends and customers, those were some of my thoughts, I've seen many many nice watches from not BIG brands, that look great and are not prohibitively expensive. Well, I also think that even the non expensive watches are now VERY expensive. I guess, as you have said, because of the demand, but that's just, IMHO, a stupid excuse/reason. While people still buying them, nothing is going to change.

Reading my words could look like I want it to change, and that's not exactly like that, but as a WIS, as a watch lover, as a watch afficionado, from my passion for watches, and been following the evolution of the watch industry, what's happening still amazes me. Time will tell.

 

Very funny survival kit, love it.

 

 

Thanks for sharing.

 

 

Vte