Zenith

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Challenges the new Zenith CEO needs to face - quickly and sustainably!

With the departure of Aldo Magada and the arrival of (interim) CEO Jean-Claude Biver, I believe it is high time for us to consider the areas needing significant improvement.

Zenith is a brand that almost exclusively relies on one single - albeit significant - asset: its famous El Primero movement. Sure, there are other highlights, such as the Elite movement, the gyroscopic escapement module, and the other watches in the Academy collection. However, I think these are relatively overshadowed by the El Primero and would have little standing on their own.

I fear that many collectors buy a Zenith because they want to own the famous movement, not necessarily a Zenith watch. And this, I presume, is a major impediment for the entire brand.

Zenith for me has always had a notion of technical perfection, performance and sophisticated restraint (a bit similar to the IWC of the past, just in la version française...), attributes that I affectionately love, and that I think bears tremendous potential for the brand to fill a distinct niche in a difficult market environment.

What needs to be done is, to hijack a very timely phase, make Zenith great again! Its a long row to hoe, and there are many irons in the fire::

1.) Present a holistic view on the essence of Zenith
Zenith in view is so much more than just the El Primero and a few pilot’s watches. Zenith, first and foremost, is a chronometric watchmaker, historically putting the timekeeping performance of its pieces at the helm of their efforts. The ample number of more than 2000 chronometric certifications attests to this endeavour.


(Snapshot showing the diversity of current Zenith watches (from top left to bottom right): Academy Christophe Colomb Grand Voyage, El Primero Tourbillon 2016, Heritage Pilot Type 20 GMT, El Primero 1969, Elite 6150, Elite Ladies)

Zenith also is a chronograph specialist. Sure, there is the El Primero as one of the most eminent examples, but it (i) is already almost half a century old and (ii) gives little room to transfer it into a credible upmarket movement.

Zenith also needs to come up with a convincing strategy regarding their tool watches, The current pilots models are all - very apropos - listed in the heritage collection. Which already implies that there is not a contemporary expression of this type of timekeeper.

What also is striking, to me at least, is the eminent gap between the upper mid-range to lower high end offerings of the Heritage, Elite and El Primero collections, and then the Academy haute horlogerie pieces. I believe that this gap is large enough to make the latter look like an afterthought, while offering insufficient goodwill trickled down far enough to the remainder of the watches.

If it were up to me, the ultra-top high end would not need to be continued. Marvellous watches without doubt, but not ‘Zeniths’.

Then, in connection with the range of watches there is the issue of the brand image Zenith wants to convey. Recently, the focus seems to be set on the ‘gentlemanly’ things - and in my view, this seems indeed be promising. Gentlemanliness, this implies adherence to a self-imposed code of conduct resting on highest human and cultural values. The quest for excellence and achievement, old-world curiosity, respect towards your fellow people, respect towards history. But also a sound distance to the latest fashion, the exesses, the vulgar and trendy.

Gentlemanliness is not tied to a market position, it can be found anywhere (I guess Longines’ ‘elegance is an attitude’ refers to the same notion). Gentlemanliness can be interpreted in different ways, nodding to tradition and innovation at the same point, represented in all cultures I could think of.

Gentlemanliness is is self-referring and needs no external validation. If that is what JCB recently alluded to in a very recent Tempus Fugit interview (“Zenith could be the ambassador of Zenith"), then a giant leap towards a coherent and credible Zenith message has been made. Watches speak for themselves!

Thus I personally think this ‘Gentlemanliness’ a very well chosen starting point. Fill it with ‘flesh’!


2.) Reinforce Zenith’s innovation potential
Being a technical brand, one which dedicated its technical capabilities to the advancement of chronometry, Zenith is all legitimation necessary to be at the forefront of new timekeeping technologies, particularly those aimed at rather large scale production.

Jean-Claude Biver has alluded to this in the past, when discussing the brand’s respective position and role in LVMH’s watchmaking portfolio. This needs to be fostered. Putting silicon parts in replacement of conventional parts is certainly not enough, as recent impressive constructions from Greubel Forsey, De Bethune, but also Ulysses Nardin or Girard Perregaux (to name a few examples closer to Zenith’s market range) demonstrate.

Zenith needs to assume the position as the audacious technology lab within LVMH. Under guidance of Thierry Nataf, it was the Defy collection which served that goal…




(The Zenith Defy Xtreme Zero G embodies both Zenith's technical prowess as well as its cutting edge aesthetic language the preveiled under the guidance of Thierry Nataf)


3.) Revive Zenith’s reputation of timekeeping excellence
I alluded already to the chronometric track record of the brand, which is probably without peer: a stunning number of 2333 chronometry awards were won by Zenith in its entire history, some of them still hold today, for example the 5 consecutive Neuchâtel Observatory chronometry prizes from 1950 to 1954.


(At the Zenith Basel booth, the brands displays its chronometer certificates on metals plates, just like a shield or armoured protection)

Some extremely desirable (and unique!) movements resulted from this, such as the marvellous Cal. 135, the Cal. 5011, but also the Cal. 707, the ‘potato’. The list comprises of an extremely elaborate and beautiful wristwatch movement, a superbly performing pocketwatch movement, and an unusual, quirky looking but entirely made-for-purpose extreme timekeeping engine.


(Zenith's chronometer legends: Cal. 135, Cal. 5011, Cal. 707; from left to right)

That list already attests to the diversity inherent to the term ‘chronometry’, an aspect of potential importance for marketing uses. Particularly the latter specimen, representative for a group of purpose-built machines, eliciting the fascination for technology, being apt toys-for-the-(grown-up)-boys.

The fascination of uncompromised excellence has already found its entry into Zenith - just consider the partnership with the Lancia Stratos team, celebrating the ultimate rally automobile, a car which does not impress by its beauty, but simply by being a machine created without compromise for only a single purpose (only): winning at car rallies!


4.) Developing a modern vision for the El Primero
This last point here is probably as obvious as it is challenging. In a way, the El Primero merely happened to Zenith; they did not plan it! I mean, of course the brand set out to be first to create an integrated automatic chronograph movement. But what they did not plan, and could not plan, was that this movement lasted until today. Events like the quartz crisis, and all that what followed from there, could not be influenced. They happened, and with its the long-term relevance of the El Primero movement.


(A classic - by chance: the famous El Primero movement)

But my believe is that its days are slowly coming to an end. Those of us who desire this movement mostly will own ‘their’ version of it, and the potential to induce new customers are limited. Its also rather small by todays standards, as the centred subdials on watches with a larger diameter reveal.

So here is the task which I have to admit I would not like to be confronted with: developing a worthy successor. A new movement carrying over most of the defining characteristics of the original El Primero (but how to define them? Being the first one obviously cannot cut it anymore, except (!) Zenith manages to create an entirely new, harmonious, at the same time ultra-futuristic as well as classically beautiful chronograph concept) while setting new standards for automatic chronographs.

Like I said above, just adding silicon parts is not sufficient, also simple developing a version with a horizontal clutch would not suffice. Honestly, I would also advise against - all recent new movements of this type features such clutches, so there is little differentiating left. Plus, one of the assets of the El Primero is the can-of-worms-like dense arrangement of gears and levers, all of which usually gets covered by plates and bridges with horizontal clutch miovements.

So, to come up with a trend setting new iteration of the landmark El Primero is a herculean task - but I think the technical team, receiving guidance and encouragement from JCB, might be up to it.


Concluding remarks:
Zenith needs a thorough makeover, but no shakeup. Its core values, technological inventiveness, excellent performance while still having both feet firmly set on ground.  They need reinforcement and embedding into a coherent strategy.

One should recognise the entire in heritage of the brand, and this includes the era of Thierry Nataf, who was largely responsible for an internal wakeup call, but most importantly for instigating a notion of technical development to the Le Locle based brand.

Finally, a fitting marketing strategy needs to be developed which is well-aligned with the new brand direction. Exposing and stressing the inherent values, reflecting on real-life connection points of a gentlemanly lifestyle.

Oh, yes, one final wish if I may - complement this with effective media relations… Thank you!

What are your thoughts?

Cheers,
Magnus

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