More on ft.comSwatch and Visa haveteamed up to create a‘pay-by-the-wrist’ watch’

Family heirloomPaloma Picasso on thependant that celebratesher parents’ love storyPage 7

Watches & JewelleryFT SPECIAL REPORT

www.ft.com/reports | @ftreportsMonday January 18 2016

Inside

Bulgari bites backItalian luxury group willnot compromise oncraftsmanship, despiterise of the smartwatchPage 3

Geneva fair previewInnovative, exquisite andmechanically marvellous

— outstandingwatches on show

at SIHHPage 4

A very British traditionThe remarkable workof Roger Smith, one ofthe world’s greatestwatchmakersPage 6

F or the global watch industry,the latest James Bond filmSpectre has a poignantmoment. At the end of hisusual gadgetry update, Q, the

fictional head of British Secret Serviceresearch, hands the spy a new watch —an Omega product placement. WhenBond asks if it “does anything”, Qreplies, tartly:“It tells thetime.”

The question of what exactly consum-ers expect — or want — from a wristdevice is increasingly concerning theworld’s largest jewellery and timepiecemanufacturers. The sector is being buf-feted by economic trends, especially theslowdown in China, the strong Swissfranc and volatility in the world’s maintradingcurrencies.

At the start of 2016, it is also facingchanging trends in watch fashions.Fashion-oriented wearable technologywas a top theme at this month’s

Consumer Electronics Show in LasVegas, where Fitbit launched a fitness-focusedsmartwatch.

Initially, the Apple Watch and itsvarious imitators were seen as posinglittle threat to the top end of the market.That remains largely the case. Thismonth’s Salon International de la HauteHorlogerieexhibitioninGenevawill cel-ebrate innovation in precision-built,mechanical devices with timeless lux-uryqualities.

But in lower price segments, there areclear signs that long-established watch-makers have been forced to react —including Swatch, the Swiss group thatsells mass-market timepieces as well asowningtheOmegabrand.

And the effects are rippling up theprice scale, with brands such as TAGHeuer, Montblanc and Bulgari launch-ing smartwatch-like functions over thepast year. The range of new productsand applications suggests risingdemand for devices that are about morethanjust tellingthetime.

“The emergence of Apple’s smart-watch and its potential threat to tradi-tional luxury watchmakers is now wellabsorbed by the market,” says ThomasChauvet, analyst at Citigroup. “If Apple,a strong brand with a cult following, is

Growth in wearablessparks ‘battleof the wrists’As Swiss watch exportsdecline, sector triesto second-guesschanging tastes, writesRalph Atkins

Few have heard of the atelier JohnRubel. However, Sophie Mizrahi-Rubel,whose great-uncles founded thejewellery house in the early 20thcentury, has relaunched the brandafter discovering drawings at thefamily’s country home in France. MsMizrahi-Rubel’s collection comprisesoriginal pieces and others inspired by

the Rubel archives. In her Vies deBohème collection, Ms Mizrahi-Rubelhas reinterpreted a theme dear to theRubel brothers — the dancer.

The Bleu Carmen brooch by JohnRubel (above) features six dancersdecorated with rubies or sapphiresand was inspired by Bizet’s opera.Page 8

John Rubel Relaunched brand dancesto a very contemporary tune

telling millennials that a watch is acool accessory, it can only help theentire watch industry.” But Mr Chauvetwarns “If the Apple Watch occupiespeople’s wrists, it probably leaves lessroom to wear a traditional luxurywatch.”

The challenges posed by smart-watches have come at what is anincreasingly difficult time for the luxurysector. Signs of stabilisation in HongKong, the most profitable market formanymanufacturers,are fitfulatbest.

Meanwhile, the Swiss central bank’sdecision a year ago to give up trying tocap the value of the franc against theeurohas increasedthecostsofmanufac-turing in Switzerland. The franc is about10 per cent higher against Europe’s sin-gle currency, although it has given up itsgainsagainst thedollar.

Swiss watch export sales figures tellthe story in numbers. Exports to HongKong in the first 11 months of last yearwere 23.2 per cent lower than in thesame period in 2014, according to FH,the Swiss watch industry federation.That was partly offset by double-digitpercentage increases in sales to coun-tries such as France and the UK. Overallexportsweredown3.3percent.

Continuedonpage2

2 ★ FINANCIAL TIMES Monday 18 January 2016

Watches & Jewellery

Deconstructed: The Harry Winston Opus 14

Powerreserve

FT graphic. Photo: Harry Winston Timepieces

‘Date’ correctorbutton

‘GMT’ correctorbutton

Home time disk

Store

Jukebox creditpower reserve

Retrograde minutes

Pusher

Winding crowntime setting

Function display zone

Disk selector

If you thought watchmaking was notreally rock’n’roll, you probably have notseen the latest from Harry Winston —a mechanical marvel inspired by theworkings of a 1950s American jukebox.

Called the Opus 14, it is the latest ina line of radical concept pieces bornfrom the Opus project. This waslaunched in 2001 by Max Busser —then chief executive of Harry Winston’swatchmaking arm but now the founderof MB&F, a brand renowned for theavant-garde timepieces it refers to as“horological machines”.

The idea behind Opus was to bringtogether innovative designers andengineers from the watch industry tocreate a series of masterpiecesfeaturing new and imaginative ways oftelling the time. As a result, the backcatalogue of Opus contributors readslike aWho’s Who of great independentwatchmakers, such as François-PaulJourne — who created the Opus One— Antoine Preziuso, Christophe Claretand Vianney Halter. Only a few of eachmodel are made and price tags arehigh, making each version attractive tocollectors.

Indeed, the annual launch of anOpus became a highly anticipatedevent at the Baselworld watch show inMarch, but the project temporarilystalled following the 2013 takeover ofHarry Winston by the Swatch Group.

The 14, therefore, became the firstOpus in three years when it wasunveiled in Baden-Baden, Germany, inOctober.

Designed by Franck Orny andJohnny Girardin, the watch featuresfour disks, which are housed in a store,with each disk showing a differentdisplay — local time, GMT, date andthe brand’s star symbol.

Pressing a push piece at the fouro’clock position activates the jukebox-style pick-up arm that selects a diskand places it on the platform to the topright of the dial. Pushing it againreturns the disk to the store, while thedate and GMT displays are set usingtwo pushers located at 12 o’clock.

Housed in a 54.7mm case made fromwhite gold, the Opus 14 comprises1,066 components. The movement has124 jewels and two spring barrels. Oneof these drives the timekeepingdisplay for up to 68 hours; the otherprovides enough power to carry outfive disk-changing movements.

But while the lyrics of “I LoveRock’n’roll” by Joan Jett and theBlackhearts called for another dime tobe put in the jukebox (“baby”), moresubstantial funds will be required foranyone hoping to get into the groovewith an Opus 14. Just 50 are beingmade and they cost £283,000 apiece.Simon de Burton

Harry Winston turns to rock’n’roll

This year might bring some cheer.The US Federal Reserve’s decision toraise interest rates in December was asign of a strengthening US economy,which could lift local luxury goods sales.But in 2015, watch and jewellery pur-chases were strongly related to tourismflows — Americans’ spending on trips toEurope, where the euro was weakagainst the dollar, left them less inclinedtospendbackathome.

Against that economic backdrop,watchmakers are positioning them-selves in the “battle of the wrists”. Whenthe Apple Watch first appeared, therewas uncertainty about its impact. Onthe one hand, Apple shapes consumertrends; buying one of its products is apersonal statement — just as with a lux-ury watch. However, an Apple Watch isdifferent from a mechanical timepiececrafted finely out of precious metals andstones. Moreover, it was unclearwhether consumers would want multi-function wrist devices. Or if they did,they might switch to more traditionaltimepieces as they grew older — boost-ingoveralldemand.

Some of the implications have sincebecome clearer. Although Apple hasreleased few sales numbers, nobodydisputes the Apple Watch has created amarket.

“We have heard that US retailers havebeen anxious about stocking up withother watches — they want to see theApple impact. It is probably going to getmore traction, in terms of the watchindustry,” says Julie Saussier, consumerindustriesanalystatCreditSuisse.

A report by MyPrivateBanking, aSwiss-based finance technologyresearch group, noted the rapid growthin apps for Apple watches — further evi-dence of their popularity. It criticisedthe quality of banking applications butargued they could be improved, andthatwristdeviceswouldbe important inbanks’ future interaction with their cus-tomers.

Swiss watchmakers might seem tohave particular advantages in capturingsuch opportunities. Switzerland has astrongreputationasa financial centreaswell as for watchmaking. But so far thathas not been the case. In November,Swatch announced that it had teamedup with Visa to provide paymentfunctions on a new generation of

Continued frompage1

“pay-by-the wrist” watches, brandedSwatch Bellamy, which will use “nearfield communications” technology toallow payments around the world byVisa cardholders in the US, Switzerlandand Brazil. Similar watches havealreadybeenlaunchedinChina.

Other luxury goods manufacturersaresimilarly lookingto leverage interestin smart technology. Last year, Mont-blanc, part of the Richemont group,unveiled its “e-straps”, which offersmartwatch functions but with a tradi-tional fine watch. Also in 2015, TAGHeuer, owned by LVMH, unveiled its“Connected” series of smartwatches.But TAG Heuer hedged its bets. It isoffering to replace Connected watcheswith a three-handed mechanical time-piece for an additional $1,500 once thetwo-year guarantee expires. In this wayTAG Heuer hopes to solve the eventualproblem of its smartwatch becomingobsolete.

Meanwhile, Bulgari, which is alsopart of LVMH, is launching chip-enabled mechanical watches that act askeys to digital vaults, storing importantinformation such as passwords andbank details. Nevertheless, Bulgari isnot expecting chip-enabled watches tobecome the most important part of itsbusiness — it is not even consideringaddingfitness functionstothem.

The European watch sector is relyingon the long-lasting design and manufac-turing appeal of its high-quality prod-ucts to address the challenges posed byApple.Thatmakessense.

“If you’re buying a luxury watch, thepoint is that you can pass it on to futuregenerations, so you don’t want it [tobecome] obsolete after three years,”saysMsSaussieratCreditSuisse.

Swiss and other European watch-makers do not have much choice.“There are opportunities to leveragetraditional Swiss strengths in terms ofprecision, design and use of materialssuch as gold,” says Steffen Binder, headofresearchatMyPrivateBanking.

“But I doubt whether the Swiss watchindustry will be able to compete withthe 500lb gorillas in the electronicsindustry.”

‘Battle of thewrists’ followsgrowth inwearables

ContributorsRalph AtkinsSwitzerland and Austria correspondent

Simon de BurtonContributing editor, How to Spend It

Nicholas FoulkesContributing editor, How to Spend It

Camilla ApcarResearcher, How to Spend It

Graham ParrishGraphic artist

Melanie Abrams, Claire Adler, RachelGarrahan, Nazanin Lankarani, Ming Liu,Sarah Murray, Robin Swithinbank,Syl Tang, Kate YoudeFreelance journalists

Linda AndersonCommissioning editor

Steven BirdDesigner

Emily LewisPicture editor

For advertising details, contact:Charlotte Williamson, +44 (0) 20 78734038, charlotte.williamson@ft.com, oryour usual FT representative.

All FT Reports are at ft.com/reports

All editorial content in this report isproduced by the FT. Our advertisers haveno influence over or prior sight of thearticles.

Linked in: the TAG Heuer Connected

Monday 18 January 2016 ★ FINANCIAL TIMES 3

Watches & Jewellery

J ean-ChristopheBabindoesnotwearhiswatchprimarilysothathecantell thetime.Hehasacollectionofsmartphonesandtabletdevices for that.“It’s

just toenjoythisgoodfeelingofhavinganiceobjectonmywrist.”

It isastrikingcommentbythechiefexecutiveofBulgari, theItalian luxurygoodscompanythat ispartofLVMH.Ithighlightshowtheworld ischangingforluxurywatchmanufacturers—eveniftheirproductsarenot.Managingtheupheaval isarguablythebiggestchallengefacingmulti-productbrandssuchasBulgari.Weakwatchsales,resulting inparticular fromaslowdowninChina,contrastwithamoreresilientglobal jewellerybusinesses.

Theriseof thesmartwatchis forcingBulgariandothers tomaketheargumentmoreexplicitly thatawrist-worndevicecanmeanmanydifferentexperiences.Forsome, thatmeansprovidingadditional functions intraditional timepieces.Bulgarihasgonepartlydownthatroute, launchingarangeofmen’swatcheswithelectronicchips thatcanunlockinformationstoredindigital“vaults”.

But italsomeansemphasisingthatluxurySwiss-madewatchesare,

essentially, jewelleryfor thearms.“Ithink, firstandforemost,peopleshouldbuytheirwatches for thetimelessnessof thedesign,of thematerials,andnotfunctionality,becausefunctionality tomeisalwayssecondary,”saysMrBabininaninterviewinNeuchâtel,Switzerland, fromwhereBulgari runsitswatchesbusiness.

Thearrivalofsmartwatchesdoesnotnecessarilyspellbadnewsfortraditionalwatches, themanufactureofwhichhasevolvedovercenturies.“It’sattractingtothewatchmarketmorepeopleearlier intheprocess,andeducatingpeopleatayoungeragetoputsomethingaroundtheirwrists,whichIthinkisverypositive for thewatchindustry,”arguesMrBabin,whojoinedBulgari fromTAGHeuer in2013.

But theBulgaribosscannotescapethefact that thesearetoughtimesforSwisswatchmakers.WithApplewatchesstillanovelty, thebiggernegativeeffectoverthepastyearhasbeenthe impactofacrackdownoncorruptionandtaxevasioninChina, saysMrBabin.“Wehavenotyetseenthe impactof thesmartwatch.”

Suchwoescontrastwithbrightertimes inglobal jewellery,whichaccounts formorethanhalfofBulgari’s

estimatedSFr2bn($2bn) inannualsales.Bulgariwasoriginally foundedbyaGreekfamilywhohadsettled inItaly,anditsdesignscontinuetohaveadistinctRomaninfluence.

Thegroupsees itselfas“primarilyajeweller”, saysMrBabin.“Wewanttobethemostdesirable jeweller intheworld,whichonedaymightmeanaswell thelargestone.”

DespiteamoresluggishoutlookforChina’seconomy,MrBabinremainsbullishaboutthecountry’s long-termgrowthprospects.“Wecantalkabout

slowergrowth, forsure,but I still thinkthatChinese luxury jewellery is thestrongestdrivingforceof the luxurymarket.”

Agoodpartof theresilience isexplainedbyjewellery’sassociationwith importantstages inpeople’s lives.“TheChinesegetengagedandmarriedasmuchasAmericans,EuropeansorAfricans . . . Whatevertheregionof theworld,peopleanywherebetween25and35willget intothatprocessandwillbequite likelytobuyanengagementring,thenaweddingband,andprobably

thatwillget theminto jewellery.”InEurope, jewellerysaleshavebeen

knockedrecentlybyterrorismfearsfollowingNovember’sParisattacks.ButinDecember,Bulgariannouncedplansto increase jewellerymanufacturingcapacity inValenza, in Italy’sPiedmontregion,whichwilladdabout300staff.The investmentdecision,MrBabinsays,isavoteofconfidence inItaly—andespecially the jewellerymanufacturingexpertise tobefoundinPiedmont.

MrBabin’soptimismabouttheoutlookfor jewelleryhasclearlyinfluencedhisstrategyforcounteringthechallenges facingBulgari’swatchbusiness.Overthepast twoyears, forinstance,considerableemphasishasbeenputondevelopingrangesofwomen’swatches,whichcouldoffersimilarsalesresilience.“Theladies’[watch]segment iscloser to jewellery intermsofdynamics. It ismoreanornament. It isoftenmade, likejewellery,ofpreciousmaterials . . . Themorefeminineyougo, thecloseryouareto jewellery.”

Nevertheless,Bulgari is seekingtoridethesmartwatchtrendwitharangeofchip-enabledmechanicalwatcheslaunchedlastyear. Ithas teamedupwithWISeKey, theSwisscybersecuritycompany, toturnwatches intokeysthatprovideaccess toencryptedinformationsuchaspasswordsorbankaccountdetails.

MrBabinseesasymmetrywiththejewellerybusiness.“Jewellery isalwaysassociatedwithasafe . . . in jewelleryyoualwaysthinkaboutsafety.”

Bulgariwillnotcompromisebyincludingbatteries inmen’smechanicalwatches,however. Itschip-enabledwatcheswilluse“near fieldcommunication”technology,allowingthemtodrawonenergysourcesof thenearbydeviceswithwhichtheycommunicate.“It’samechanicalwatchcontainingamicrochip. It’snotadigitalwatchwithdigitalcapabilities.”

NordoesMrBabinbelievehiswatchesneedsomeof theadditionalfunctionsprovidedbyothers—suchasmeasuringthepulsesof fitness fanatics.“Especially inmyprofessional life,mypulse isnotmykeypriority,andif Ididwishtotakemypulse, Iwoulduseaseriousmedical instrument,”hesays.

MostApplewatches,hesays,perhapsposeathreat forSwisselectronicwatchesselling forbetweenSFr100andSFr1,000.“IfyoutalkaboutabrandlikeBulgari,whichonaveragesellsbeyondSFr8,000, I’mnotsurewe’recompetingagainst themdirectly.”

‘I do not weara watchbecause I wantto tell the time’

InterviewBulgari’s Jean-Christophe Babin seeswatches as jewellery for the arms, saysRalph Atkins

‘Inmy professional life, mypulse is notmy key priority,and if I did wish to takemypulse, I would use a seriousmedical instrument’

4 ★ FINANCIAL TIMES Monday 18 January 2016

Watches & Jewellery

T hisyear’s 26theditionoftheSalonInternationaldelaHauteHorlogerieseesanewformat for theGeneva-basedshowfollowingthe

organisingcommittee’sdecisiontoinviteanadditionaleight independentbrands. DespiteRalphLauren’sdecisionnot toattendanylonger, thereisan increase inthenumberofexhibitors fromlastyear’s16to23.

Theirarrival is set to impartamoreavant-gardeflavourtotheshow,sinceseveral—notablyMB&F,UrwerkandDeBethune—areknownfortheirunconventionaldesigns.Equally, theproductsof fellownewcomersH.Moser&CieandLaurentFerriermaintainthemoretraditional tonesetby long-establishedexhibitorssuchasVacheronConstantin,A.Lange&SöhneandJaeger-LeCoultre.

Here isasampleofwhateachbrandwillunveil.

A. Lange & SöhneSaxoniaMoonphaseHigh-endGermanwatchhouseA.Lange&Söhneannouncesanunderstatedcreationfor2016 intheformof itsSaxoniaMoonphase.Theminiaturemoonissaidtoreplicate themovementof thereal thingtoanaccuracyof99.98percentand(assumingthewatchiskeptrunning)willneedtobecorrectedbyadayevery122.6years.

Audemars PiguetTheRoyalOakTheRoyalOakhasbeenAudemarsPiguet’s signaturewatchfordecades,duringwhichithasbeenproducedinmyriadvariants.The latest for2016is theDoubleBalanceWheelOpenworked(right),whichfeaturesahighlyskeletoniseddialandmovementdesignedtoshowcasethebrand’spatenteddual-balancedesign,whichenhancesaccuracy.Thewatchisavailable insteelorpinkgold.

Baume & MercierCliftonchronographThetrendformoreaffordablewatchesfeaturingsmallcomplications isreflected inthisnewversionofBaume&Mercier’sCliftonchronograph, incorporatingacompletecalendarshowingtheday,month,dateandphasesof themoon.Thewatchalsooffersadayandnight indicatorandauxiliarycounters forhoursandminutes.

CartierRotondedeCartierAstromystereuxCartier furtherdemonstrates its in-househorologicalprowess thisyearwiththe introductionofanall-newwatchcalledtheRotondedeCartier

Astromystereux, inwhichtherotatingtourbillonmovement indicates thehourwhileappearingto float freelywithinthecase—atrickachievedbythejudicioususeofanarrangementoftransparentdiscs.

Christophe ClaretMargueriteThewatchmakerhascreatedamechanicalmarvel forwomenintheMargueritemodel,whichfeaturesadialintheformofadaisy,perchedontopofwhicharetwobutterflies—oneindicatingthehour, theothertheminutes.Pressingapushpiece,meanwhile,causes thenumbersaroundthedial tobereplacedbythephrase“Ilm’aimepassionnément”.

De BethuneDB25WorldTravellerWatchesbyDeBethuneareknownfortheirsuperbfinish—andtheDB25WorldTraveller (right) isnoexception.Themechanical,hand-woundmovementdisplaysthecorrecttimeintwoof15locationssimultaneouslywhilea flawless,half-bluedballof rosegoldcombineswiththesecondtimezoneindicator toshowwhether itisnightordayathome.

Greubel ForseySignature 1GreubelForsey isknownforspecialisingintourbillonwatches—but itbreaksthemould in2016byintroducingthemanuallywound, three-handSignature1,whichheraldsanewcollectionofpiecesbyindividualmakers.CreatedbymasterwatchmakerDidierCretin, itwillbeavailable inthreeeditionsof11—respectivelymadefromwhite

gold, redgoldandplatinum—andasaneditionof33 insteel.

HautlenceVortexPrimary

Actorandformerfootball starEricCantonadesigned this

decidedlydifferentwatchfromHautlence.TheVortexPrimary

featuresaPVD-coatedtitaniumcasefittedwith19colouredglasspanels

thatreveal thehigh-end, in-housemovement.Thetimeisdisplayedusing

acombinationofretrogrademinutesandarevolvingchain,whichcarries thehours.

H. Moser & CieSwissAlpLow-volume,high-endSwissmakerH.Moseraimstocapitaliseonthesmartwatchrevolutionnotbymakingoneof itsown,butbymakingatraditional,mechanicalwatchthat(loosely)resemblesahigh-techwearable.WhileMoser’snewSwissAlp (right)

might lookabit likeanAppleWatch, itcontainsabeautifullyengineered,hand-woundmovement.

HYTH2TraditionYoungbrandHYT wasestablishedonly in2012buthasalreadymadeanamefor itselfwith itsunusualhydromechanicalwatches,which indicate thehourbypumpingcolouredfluidaroundaglass tubeencirclingthedial.TheH2Tradition(right)combinesthetechnologywithclassicalwatchmakingcodes, suchasguillochefinishingandbluesteelhands. Just50willbemade.

IWCBigPilot’sHeritageWatch

IWCpulls thewrapsoff itsBigPilot’sHeritageWatch,which

replicates thevast,55mmdiameterof itsoriginalObserver’swatch,

introducedin1940tosupplytheGermanLuftwaffe. Just100

exampleswillbereleased,plus1,00048mmversions featuring

thesamevintage look.Botharemadefromtitaniumandfeature

hand-woundmovements.

Jaeger-LeCoultreTributeCalendar

The85thanniversaryof theReversowillbethefocusof Jaeger-LeCoultre’s2016models.Tobeoffered inthreecollections—calledClassic,TributeandOne—theyincludethesophisticatedTributeCalendar.This featuresacompletecalendarandmoon-phasedisplayononeside,while turningthecaserevealsa furthermoonphaseandseconddialonthereverse.

Laurent FerrierGaletTravellerGlobeGoldandchamplevéenamelhavebeencombinedinthenewGaletTravellerGlobetoproduceawatchdialdepictinganimpressive interpretationofabird’s-eyeviewof theEarthbynight.The288-part, self-windingmovementprovidesasecondtimezone(indicatedthroughawindowonthe leftof thedial)andadatedisplay.

MB&FLegacyMachineUnlike itsmoretypical, futuristiccreations,MB&F’sLegacyMachinesarebrandfounderMaxBusser’sinterpretationofhowhiswatcheswouldhave lookedhadhebeenoperatingduringthe19thcentury.SIHH2016willseetheunveilingofaplatinum-cased

versionof theLM101,awatchthatcontainsMB&F’s firstentirely

in-housemovement.

MontblancTwincounterDateMontblancchiefexecutiveJeromeLambert’sdynamicapproachtoestablishingthebrandasaserioushorologicalplayercontinueswithtwoadditionstothe

HeritageChronometriecollection launchedlastyear.

Especiallynotable is thenewTwincounterDate,whichfeatures

anin-housemovement,acrispdialdesign—andapricetagof just£2,155.

PaneraiRadiomir 1940TheRadiomir1940isconsideredbymanyaficionadostobethequintessentialPanerai since itmostcloselyresembles thegroup’soriginalmilitarywatch.Thisversion,(right) thefirst tobefittedwithawhitedial, carriesthebrand’s in-houseP.4000automaticmovement ina42mmsteelcase fittedwithanuntreated leatherstrap.

ParmigianiSuperSportSapphireParmigianiFleurierunveiled itsfirstType370in2004tocomplementthethen-newBugattiVeyronsupercar.Recognisablebyitslateralmovement, thewatchhassincebeenmadeinseveralguises—this latestbeingtheSuperSportSapphire,withaskeletonisedcasemadefromredgoldandsapphirecrystal.Themovementincludes19goldparts.

PiagetEmperadorCoussinXL700PQuartzmechanismsareset forarevivalin finewatchmakingasmore luxurybrandsarestartingtousethemagaintomaketheirentry-levelproductsmore

Avant-garde brands join traditional line-upSIHH previewArrivalsbreathe new life intoGeneva show, writesSimon de Burton

Face time: VanCleef & ArpelsLady ArpelsRonde desPapillons (right)

affordable.Piaget leadsthewaywith itsEmperadorCoussinXL700P,whichusesanultra-thin,Swiss-madeelectronicgenerator toregulateaself-windingmechanicalmovement.Thelaunchof thewatchcoincideswiththe40thanniversaryofPiaget’s firstquartzmovement.

Richard MilleRM67-01Thehigh-techmakernotedfor itsuseofspace-agematerialshascreated itsmostsveltewatchyet intheformoftheRM67-01automatic,whichcontainsa3.6mm-highmovement ina7.75mm-

thickcase.Metalnumeralsmountedontitaniumrailshelptomaintain

theskeletonised lookcharacteristicofRichardMilledesigns.

Roger DubuisVelvetSecretHeartTheGenevabrandknownforthehighqualityof itsmechanisms

isout totargetwomenbuyers in2016,andsetsabout

drawingtheminwithfivegem-setmodels in itsVelvetrange.

Perhapsthemost impressivepiece is thetonneau-shapedVelvet

SecretHeart, featuringthemaker’snewRD821Bmovementwithdouble

retrogradedatedisplay.

UrwerkUR-105T-RexNichebrandUrwerkcombinesinnovative,high-endwatchmakingwithasenseofplayfulness—asdemonstrated in itsSIHHlaunchof theUR-105T-Rex(above).Housedinapebble-shapedcasewithaprotectivecovermadefromtexturedbronze, thewatchindicates timebywayofasinglehourpointer thatsweeps, likethesun,fromeast towest.

Vacheron ConstantinOverseasVacheronConstantinhasgivenitspopularOverseas familyamakeoverwiththe introductionof fivepieces thatwillbeavailable in12variations.Theline-upcomprisesachronograph, largeandsmall timeanddatewatches,anultra-thinperpetualcalendarmodelandanultra-thindresswatch.AllfeatureVacheron’squick-changestrapsystem.

Van Cleef & ArpelsLadyArpelsRondedesPapillonsThemakerof“jewels that tell thetime”addsto itsPoeticComplicationsrangewiththemother-of-pearldialLadyArpelsRondedesPapillonswatch,featuringminutes indicatedbycirclingbutterfliesandhoursbyaswallow’swingtip.Additionally, thebutterfliescanbesentona13-secondflightaroundthedialat thepushofabutton.

The Grand Prix d’Horlogerie de Genèvehas been called the Oscars of the watchworld, and last October’s ceremony sawone acceptance speech that is sure torival any at the Academy Awards. Itcame courtesy of the husband-and-wifeteam behind watchmaker Habring2,whose speech was topped off with anon-stagekiss.

The award was certainly an occasionto mark. Habring2, derived from Rich-ard and Maria Habring’s surname, is atiny manufacturer based in Carinthia,Austria — known for its mountains andlakes — and where five employees pro-duceabout150watchesperyear.

The Petite Aiguille prize, which recog-nises a superior watch priced under

SFr8,000 ($8,000), was also the thirdtimethe independentmakerhadpickedup a GPHG award since setting up shopin 2004. Last year’s honour went to itsFelix watch, whose components areentirely constructed in-house, andwhicheclipsed17otherdesigns fromthelikesofZenith,TudorandMontblanc.

“It was a symbolic win for us,” saysRichard Habring. “Not only because theFelix marked our 10th anniversary, butalso because we really must be thesmallest watch manufacturer in theworld—andthe juryrecognisedthat.”

The GPHG said its jury was “seduced”bytheFelix’s“neatappearanceandverypure yet classical style”. It has a diame-ter of 38.5mm and a case height of 7mm.Powering that design is a manual-winding mechanical watch with 99individual parts, 84 of which are differ-ent components. Workings include themovement’s custom-made sub-assemblies, manually adjusted anchorsand hand-curved balance springs. TheHabrings committed to creating 50pieces, priced at €4,450 ($4,700), in

2015 — a departure from their usual pol-icyof12piecesperyear foreachmodel.

This limited production dates back tothe company’s origins, when theHabrings first dreamt up a pared-backwatch brand focused on technicalexpertise and customer service — a sim-ple mix that reflected their own back-grounds. Mr Habring trained under theindustryveteranGünterBlümlein inthe1990sandworkedforadecadewithIWCand later LMH (the holding companyfor IWC, A Lange & Söhne and Jaeger-LeCoultre; later sold to Richemont forSFr3bn). Meanwhile Mrs Habringworked in German tourism, specialisingincustomerservice.

The couple met on a train to Dresdenairport. “When people ask how to findone’s life partner, we tell them to ridemoretrains,” laughsMrHabring.

Their debut watch was the TimeOnly

‘We are idealistic.Our aim is to makepeople happy’Brands

For the husband-and-wifeowners of Habring2watchmaking is a labour oflove, writes Ming Liu

Precision art:Richard andMaria Habringwon the PetiteAiguille prize fortheir Felix watch

— a pioneering, modular design thenpriced at €1,500 and limited to 12pieces. The purist design can have func-tionality added — moon phase, powerreserve, minute tourbillon among them—yearsafterproduction.

Asked about the decision to launchwith a modular system — an idea thatwas “in my drawer from my LMH days”— Mr Habring recalls: “We needed firstand foremost to be on the market. Oncegoing, we could then technicallyimprovewithcustomerfeedback.”

That thinking influenced a key fea-ture of Habring2 today: that all watchesare made to order. “Hardcore collectorscame to us with their own ideas, askingfor changes,” remembers Mr Habring.“We discovered in the very first yearthat it made sense to wait for them toapproach us and customise the watch. Itwasabettersystem.”

Using TimeOnly as a base, the com-pany developed its savoir-faire and by2007 had created its own deadbeat sec-ond complication (a mechanism thatslows the rate of the second hand) — afeat that would be further refined andeventually win a GPHG award in 2013.Like the Felix, the Jumping Second Pilotwas recognised for its quality and acces-sible price — from €5,250 for the hand-wound version. Today, with six basemodels and the Felix in its repertoire,the company has grown around 20 percent annually and counts Japan, Aus-tralia, the US and Europe as its mainmarkets.

TheHabring2buyer is typicallysome-one “who has done their research”, saysRobert Stewart, a self-proclaimed“watch nerd” and owner of Stewart’sWatches in Leicester, UK. Habring2 hasa watchmaking pedigree, he says, whichhebelieves“interestspeople”.

A desire to know the origin of one’swatchpartsandthepeoplebehindthemis an industry-wide trend that MrHabring is also seeing. For a small man-ufacturer, that is easier to deliver, headmits. Habring2 aims to source asmany parts from Austria as possible,before turning elsewhere for parts itcannot find.

But it is in pushing innovation whereHabring2 seems to have found its niche.The company does not advertise andhas a marketing budget of €30,000 peryear. Productionwillalwaysbe limited.

“We’ll never be a mass product as allwatches go through our hands,” saysMrsHabring.

“We are idealist and our motivation istomakepeoplehappy.”

Workingsinclude themovement’shand-curvedbalancesprings

Monday 18 January 2016 ★ FINANCIAL TIMES 5

Watches & Jewellery

T he last two months of 2015proved to be a busy periodin the world of watch auc-tions during which the lead-ing players — Antiquorum,

Bonhams, Christie’s, Phillips andSotheby’s — offered more than 3,250vintage and modern pieces at more thana dozen events in London, New York,HongKongandGeneva.

Between them, the sales grossedaround $394m. A further $11m wasraised by Only Watch, a biennial charityauction which has made morethan $25m for research into Duchennemusculardystrophysincethe firsteventin 2003. Comprising 44 unique watchesespecially made and donated by leadingbrands, the sale — conducted byPhillips in association with watchconsultancy Bacs and Russo — resultedin a record for any wrist watch when aPatek Philippe Reference 5016 minute

repeating, perpetual calendar tourbil-lon inauniquesteelcasereached$7.3m.

Typically, Patek Philippe dominatedat theregularauctions, too,withPhillipsselling four examples at its Geneva salefor in excess of $1m, one of which made$3.3m. Another, sold for $1.55m at itsHong Kong auction, became the mostexpensive watch ever to cross the blockin Asia, while Phillips Geneva also sold a1953 Rolex triple calendar piece for dou-ble its estimatedpriceof $1.2m.

While the longstandingdominationofthe top tier of the vintage market byPatek Philippe and (at a relatively dis-tant second) Rolex looks set to con-tinue, therearesigns that2016couldseesignificantshifts inotherareas.

Some modern Patek watches, forexample, are attracting less attention inthe salerooms, while enthusiasm forbuying many other makes of pre-owned, contemporary watches at auc-tion also seems to be waning. Someattribute this to the growing number ofalternative sources of such watches,which allow buyers to negotiate prices,acceptpartexchangesanddonotchargethe buyer’s premiums demanded by theauctioneers.

The sudden downturn in new watchsales which has occurred in some

regions - Russia, Hong Kongand China - means deals canmore readily be done withretailers for first-hand pieces.Additionally, the traditionallyhigh demand for modernwatches among Asian collectorsis giving way to a greater interestin vintage models as knowledge ofthesubjectgrows.

There are indications that theseven-figure and high six-figuresums now commanded by thebest Patek Philippe and Rolexpieces are stimulating interestin vintage models by makesthat have so far failed to real-ise similar prices in the sale-rooms. At Christie’s NewYork on December 16, a1957 Audemars Piguet per-petualcalendarwristwatchwith a low presale estimateof $150,000 sold for$545,000, while a 1937chronograph by the same maker real-ised $341,000 — five times what wasexpected.

With the most collectable, steel-casedRolex sports models continuing to com-mand prices in the mid-to-high tens ofthousands (and sometimes beyond),

“tool” [professional watchenthusiasts are increasinglyturning to more affordablepieces from alternative dialnames. A 50-lot Christie’s NewYork auction dedicated to theOmega Speedmaster, for exam-ple, achieved a 100-per-cent salerateandgrossed$1.3m.

Vintage watches by makes suchas Universal, Tudor, Longines,IWC, Jaeger-LeCoultre and Vach-eron Constantin are also attractinghigherprices.

John Reardon, internationalhead of Christie’s watch depart-ment, says 2016 is set to be aninteresting year.

“There has been a serious dropin saleroom prices for some mod-ern brands, much of which canbe attributed to the situation inChina, currency fluctuationsand international pricing struc-tures. Alongside this, there is

clearly a growing interest in qual-ity, vintage timepieces for which pricesaregettingstrongerall thetime.

“Themostcommoncallswereceiveatthe moment are from collectors whowant to sell their modern watches andreallocate the funds to vintage pieces. It

is all about scholarship, originality andprovenance.

“Our policy is to bring in vintagewatches that are fresh to the market andwith long ownership history. I think thedays of 500-lot mega-sales packed withevery modern offering imaginablereallyareof thepast.”

Adrian Hailwood, who heads thewatch department of the family-ownedFellows auction house, based in Bir-

mingham,alsobelieves themarket is setforpolarisation.

“It’s clear that collectors’ knowledgeis growing rapidly, and that is resultingin a realisation that the best vintagewatches to buy are the really excellent,original ones with boxes and paperwork— I believe that anything which is not100 per cent correct, or has been badlyrestored or is somehow not original, willsoonbecomevirtuallyunsellable.”

Knowledgeable buyers turn to vintage piecesAuctionsDecline in newsales prompts collectorsto negotiate dealswith retailers, writesSimon de Burton

Watching brief: a ‘Missions’ set of23 Omega Speedmaster watches soldlast month by Christie’s in New Yorkfor $66,250 — Christie’s Images

‘The days of 500-lot salespackedwith everymodernoffering imaginable reallyare of the past’

-The British are not known for spendinglarge sums of money on luxury wrist-watches. The “man in the street”appears content to wear a timepiececosting tens of pounds rather than thou-sands, as long as it does the job. Thosewho are more extravagant have usuallyseen an expensive watch as a one-offbuyto lasta lifetime.

Yet the most recent statistics pub-lished by the Federation of the SwissWatch Industry tell a different story.Released in late December, the Novem-ber numbers show that the UK soared tofourth spot in terms of the month’sworld distribution of Swiss watchexports — from eighth in October —behind Italy in third place, the US in sec-ondandHongKonginfirst.

The figures for the first 11 months of2015 further show the UK to havebecome the eighth-largest marketworldwide, after an increase of morethan 18 per cent over the previousyear. Since 2010, the value of Swisswatch exports sent to the UK hasalmost doubled, from SFr596m toSFr1.06bn ($1.06bn), sending the coun-try ahead of previously stronger regionssuch as Singapore, Russia and the Mid-dleEast.

The growth in UK watch sales seemsall the more impressive when comparedwith the dramatic downturn that hastaken place in some of the world’s lead-ing markets. Exports to Hong Kongdropped almost 28 per cent in Novem-ber compared with November 2014,although it still took in watches worth atotal of SFr248.8m, twice the value ofthosesent toBritain.

While foreign visitors still account fora large proportion of luxury watch salesmade in London, in cities such as Bir-mingham and Manchester and at air-ports, Brian Duffy, chief executive ofAurum Holdings, which owns the UK-based retailers Watches of Switzerland,Mappin & Webb and Goldsmiths, saysthe relatively sudden increase in thestanding of the UK in the global watchmarket can be attributed to a range offactors.

“During the past year alone, therehas been a great deal of veryspecific activity in the UKthat has led to anincrease in both aware-ness and sales,” says MrDuffy, whose 150 storesoffer watches ranging inprice from£100to£1m.

“From Aurum’s pointof view, our flagshipWatches of Switzerlandstore on London’s RegentStreethasnowbeenopenfor a full year and is prov-ing extremely successful,and we’ve opened

another huge store on Oxford Street.Therehavealsobeenanumberof signif-icant mono-brand store openings bymakers such as Patek Philippe, Jaeger-LeCoultre and IWC — and the PatekPhilippe exhibition held at the SaatchiGallery during the summer brought in agreat deal of business, thanks to thelarge number of visitors coming fromboththiscountryandabroad.”

The major watch brands have beeninvesting heavily in marketing, he adds.“There have been events such as therelease of the latest James Bond movie,Spectre. Omega is the officialsupplier of Bond watches and buyers inthe UK respond especially well to thatassociation.”

In the year to April 2015, AurumGroup turned over £410m; according tomarket researcher GfK, that gives it a31.2 per cent share of the market. Theaverage price of men’s watches sold bythe group has remained flat at £4,750,but the average expenditure onwomen’s pieces — £3,836 — representsan 8 per cent increase over the past year,attributed to a rise in demand for moreexpensivemechanicalmodels.

Mr Duffy believes UK residents arebecoming increasingly comfortablewith the idea of investing in luxurywatches in an act of what he terms“rational indulgence”.

“British people realise that they don’tneed an expensive watch to be able totell the time,” notes Mr Duffy. “But theyare becoming more and more apprecia-tive of the fact that a watch can be a veryresilient investment and a family heir-loom.”

It is a sentiment with which MarkHearn, managing director of PatekPhilippe in the UK, agrees. “UK resi-dents are more knowledgeable aboutquality watches and therefore are pre-pared to spend money to acquire them,”hesays.

Patek Philippe has seen very strong,double-digit growth in the UK andincreased demand throughout therange, from entry level to the high-value, grand complication models thathave been steadily attracting more UKbuyersoverthepast fouryears.

James Bond is notthe only Britonwith a Swiss watchSales trends

As stores open and budgetsincrease, UK interest inluxury pieces has risensignificantly, writesSimon de Burton

Brian Duffy — Beth Walsh

6 ★ FINANCIAL TIMES Monday 18 January 2016

Watches & Jewellery Watchmaking

M uch has been made latelyof the revival of Britishhorology.Morethanafewyoung, UK-based watchbrands are enjoying

international success by dint of thegravitas many overseas buyers attach tothe words Made in Britain. But howmany truly British watches are madetoday? Watches in which virtually everycomponent is conceived, designed,formed and assembled into a finishedtimepiece within the confines of theBritishIsles?

The answer? Well, a precious few —probably fewer than 10 a year — doemerge from a workshop in that Britishdependency (not technically part of theUK) in the Irish Sea where cats have notails and motorcycles race on publicroadsatspeedsapproaching200mph.

The Isle of Man might seem anunlikely place for watchmaking but it iswhere, from 1982, the late horologistGeorge Daniels — regarded by many asthe greatest watchmaker since Abra-ham-Louis Breguet — chose to settle forits favourable tax regime. It is where hetutored, mentored and encouraged theonly apprentice he ever took on in acareer spanning more than half acentury.

At a time when the mechanical time-piece was in danger of disappearing(and most British makers had alreadysunk without trace), Daniels embarkedon a solo crusade to show the worldthere was still a market for superbquality watches with components made

entirely by hand and finished in the tra-ditional British way. Characteristic fea-tures include frosted movement plates,silver,engine-turneddialsandjewelssetin gold chatons rather than directly intothemovementbaseplate.

His apprentice, Roger Smith, born inBoltonin1970,adoptedthesamephilos-ophy and carried on what Daniels hadstarted by founding his own dial nameon the island and perpetuating what heterms“theDanielsMethod”.

That was in 2001 when the mechani-cal watch industry was in the relativelyearly stages of its revival and far fromholding the position in retail luxury thatit commands today. In pure businessterms, therefore, the chances of MrSmith’s fledgling business surviving, letaloneprogressing, seemedslim.

However, this year marks the 15thanniversary of RW Smith watches — theW is for William. Its founder nowemploys eight people (with anotherjoining shortly), and is preparing tomove to larger premises and make a£500,000investment inmachinery.

Along the way, he has been chosen bythe UK Cabinet Office to produce a one-offwatchthat is touringtheworldontheUK government’s “Great” campaign toshowcaseBritishskills.

He has featured on the BBC Radio 4programme InBusiness,beenthesubjectof the 2015 documentary film TheWatchmaker’s Apprentice and last yearpicked up a Walpole award for the out-standing example of British luxurycraftsmanship.

Mr Smith, a considered and mild-mannered individual, courted contro-versy at the end of 2014 by writing anopen letter to watchmakers and collec-tors. In it,heexpressedhisdismayat thegrowing number of brands capitalisingon the concept of British watchmakingwhen, in fact, they had merely revived along-forgotten name, or added someappropriate British touches to a piececomprised largely (or entirely) offoreign-madecomponents.

Although his outspokenness caused aminor storm, he has no regrets aboutvoicing his opinions on a subject whichis close to his heart and to which he hasdevoted almost 30 years. Since heunveiled his £250,000 “Series 4” watchtwo months ago — featuring an escape-ment that he spent years designing —sufficient orders have come in to ensurethe workshop is kept running to capac-ityuntilwell into2019.

For a leading Swiss player that wouldmean producing thousands of pieces.For Mr Smith it means low, double fig-ures—whichishowhelikes it.

“People have often asked me why wedon’t try to make more watches, and theanswer is that I simply don’t want to,” hesays. His products have an entry-levelprice of about £100,000 and take up tothreeyears todeliver.

“Our clients come to us because theywant a watch which is genuinely Englishand completely handmade and handfinished. Often, they have workedtheirwayupthroughother independentbrands and that has given them an

interest in exclusivity, rarity andextreme quality which they perhapsdon’t find with the better-known, high-endnames.”

Mr Smith says more than 90 per centof the brand’s components are made in-house. The only parts that are bought inare straps, sapphire crystals, balanceand main springs, screws and jewels, allofwhicharemadeintheUK.

Each watch takes about 11 months ofcontinuous work to make. “It just isn’tsomething that you can do quickly,especiallysinceweusethisveryparticu-lar style of finishing. If you place one ofour watches beside a 200-year-old Eng-lish pocket watch, you can immediatelysee the continuation, both in the archi-tecture of the movement and the overallappearance. The style of the frosting,the purple-blue of the screws. It is alldone inthetraditionalEnglishway.”

Unlike the globe-trotting bosses ofmany large watch firms, Mr Smith iscontent to stay put on the Isle of Man. “Iam happy to say that I spend at least 85per cent of my time at the workbenchand probably take one internationalflight every year or two. Clients oftencome to us when they have decided tobuy a watch but often the whole processisconductedviaemail.”

When he started the business, herecalls, he was apprehensive and did notknow what to expect. But the brand hasgrownandhebelieves is takenseriously.“My ambition remains to spend everywaking hour working towards makingtheperfectwatch,”hesays.

Making timepieces the British wayHorology In his workshop on the Isle ofMan, Roger Smith is in pursuit of perfection, says Simon de Burton

The global market for wearable medicaldevices is growing rapidly. Armed withsensors, devices that capture and trans-mit physiological data can be embeddedin anything from clothing to skinpatches. But a more traditional weara-ble could also play a prominent role inthis expanding section of the healthcaremarket—thewristwatch.

When it comes to athletics and fitnesstraining, the sports watch market is wellestablished, with brands such asGarmin, TomTom, Polar and Suuntooffering products to help individualsmonitor theirperformance.

However, there is also an appetite forwristbands that monitor daily fitness bytrackingphysicalactivity,caloriesburntand sleep patterns, helping to motivatepeople to lose weight and improve theirhealth.

Seeing the potential, companies arestarting to develop timepieces withcapabilities similar to those on fitnesswristbands. Many entrants to this mar-ket are technology companies, ratherthanwatchmakers.

The Apple Watch, for example, canmonitor activity throughout the day,whether the wearer is in the gym or sim-ply walking upstairs. And, looking morelike a traditional digital watch, the Sam-sung Gear 2 uses an optical heart ratesensor to track the wearer’s physicalactivity.

Luxury watchmakers are eyeing theopportunities. However, many are test-ing the waters rather than rushing inwithfully featuredproducts.

Simon Hall at PA Consulting Groupcites the TAG Heuer Connected, whichis equipped with fitness apps such asRaceChrono Pro and Google Fit. “It’s avery light product and it’s handsome inthat it looks more like a traditionalwatch,”hesays.

“But it doesn’t do that much. Func-tionality-wise there’s a big step changebetween TAG’s Connected and AppleWatch.”

Some luxury watchmakers are

combining conservatism with innova-tion by leaving the watch alone andequipping the strap with fitness track-ingandothercapabilities.

“They’re obviously not going to wantto build obsolescence into their beauti-ful handcrafted watches,” says BenWood, head of research at analysts CCSInsight.“Soyou’regoingtoseetheriseofthesmartstrap.”

One example is from Montblanc,known for its handcrafted fountainpens, watches and other luxury goods.Its e-Strap is an interchangeable watchstrap that can connect to some smart-phones and whose features include aphysicalactivity tracker.

This approach means watchmakerscan offer traditional consumers thesame products while accommodatingthose looking for digital capabilities –and hedging their bets against a fall indemandfor fitness trackers.

While the focus on personal fitness isdriving change in the watch industry,these devices could play another role —in helping to manage illness. Theincrease in conditions such as diabetesandcongestiveheartdisease—aswellasevidence that remote monitoring can

help manage these illnesses — is creat-ing a market for wearable monitoringdevices.

Much of the innovation is comingfrom companies that are not in the busi-ness of making timepieces. For exam-ple, Philips, the lighting, consumer life-style and healthcare company, is devel-oping the Philips Health Watch, whichmeasures health biometrics such asheart rate, physical activity and sleeppatterns. It says the watch is designed asa medical device to help prevent or con-trol lifestylediseases.

“It’saboutmakingremotemonitoringeasy,” says Unity Stoakes, presidentand co-founder of Startup Health,an accelerator and venture capital fundwith a global portfolio of early-stagedigitalhealthandwellbeingcompanies.

Watches that can track and transmithealth indicators could also becomepowerful tools for running large-scaleclinical trials and generating the dataneeded for policymakers to be able tomake informed decisions on publichealthstrategies.

However, in contrast to companiessuch as Philips, which has a largehealthcare division, watchmakers

have little experience of working in thehighly regulated health sector. This willmake developing medical-grade devicesto be used in clinical trials more diffi-cult.

Currently few watchmakers areentering this segment of the health mar-ket. However, Mr Hall predicts that reg-ulators may allow some consumerdevices to be validated, despite the factthat theyarenotmedicalgrade.

“But instead of trying to validate thewhole device, a set of components[related to health] could be validated,”hesays.

If more non-traditional companiescan participate in healthcare markets,watchmakers could start to carve out abigger share of the market for personalfitness and medical devices — sincewatches may be more acceptable to con-sumers.

“People don’t want to wear a medicaldevice,” says Mr Stoakes. “It’s aboutdoing something that devices haven’tdone in the past – focusing on beautifuldesignandtheconsumerexperience.”

“You’re not always a patient,” says MrWood. “You’re first and foremost a per-son—andlifestylematters.”

It’s 9am, your heart rate is 65 bpm and blood pressure 120/80Smartwatches

Technology companies areproducing wearables to helpprevent or control lifestylediseases, says Sarah Murray

Small world:Roger Smith inhis workshop

‘Peoplehave oftenaskedmewhywedon’tmakemorewatches.The answeris that Isimply don’twant to’

Louis Vuitton has come along way in the six yearssince Hamdi Chatti tookover the luggage brand’swatch and jewellerydivision. Just how far wasmade clear in Genevarecently as Louis Vuittonflew in some top clients toinspect its new Seal ofGeneva watch.

The Seal of Geneva is arigorous set of quality andaesthetic standards thatdates from 1886, whenGeneva’s reputation as awatchmaking centre wasunder threat from fakers.The canton of Geneva setup a system of optionalinspection for watchesmade within its bordersand, if standards were met,they would be engravedwith the arms of the city ofGeneva. Over the years theSeal of Geneva criteriahave been updated, mostrecently in 2012.

The company previouslyonly assembled and carriedout quality control on itswatches in a facility in LaChaux-de- Fonds inSwitzerland. Two years agoit built a factory on theoutskirts of Geneva,making Louis Vuittongeographically eligible forthe Seal of Geneva. Thebrand also acquired aspecialist movementdesign and manufacturingbusiness — La Fabrique duTemps — allowing it tomake watches of a suitablequality and ingenuity.

At this factory LouisVuitton has assembled theknow-how to master allaspects of watchmaking. Itstill uses components fromSwiss sub-suppliers forsome of its watches, but forthe high watchmakingpieces, such as thetourbillon, all the design,the components forprototypes and the firstseries are made in house.“If we need a bridge we canmake it in a couple of days,if we need a dial we canmake it in a week ratherthan waiting two monthsfor it from an externalsupplier,” says Mr Chatti

A watch bearing the Sealof Geneva, is proof of thisin-house craftsmanship. “Itmakes tangible somethingthat we have done over thelast 24 months duringwhich we’ve centralised allthe various trades that wehave mastered over thelast 12 years, from dialmaking to case making...to movementmanufacture,” saysMichael Burke,president and chiefexecutive of LouisVuitton.

“If you are in Genevayou see it when you visitour site, but it needs to berendered tangible

worldwide through aproduct. At the end of theday that’s what it’s about.”

The result is a watchthat looks like nothingLouis Vuitton has donebefore, “We decided on thisvery light, transparentdesign, with a new caseand new movement. Thewatch is fully transparent.It’s a see-through watch,”says Mr Chatti.

The brand’s two masterwatchmakers, EnricoBarbazini and MichelNavas, have been crucial.“Together they havesomething like 70 years ofexperience, many spentpreparing movements forthe seal. Until you go intoit, it is impossible tounderstand the detail, eventhe smallest screws have tobe finished and polished ina particular way.

“It is a bit disruptive,” headds. “Nobody expectsthat kind of thing fromVuitton.”

This policy of disruptionis continuing in LouisVuitton’s decision to pullout of the Baselworld fairin March.

As a brand with nowholesale business sellingonly through its stores “It’salways been a little bit of astretch,” says Mr Burke.When it comes topresenting new productsMr Burke believes theremay be other avenuesbetter suited to the brand’sbusiness model which alsocorrespond more closely tothe products’ availability.

“It’s a problem that allmarketplaces have todaybecause the digital worldhas shrunk the notion oftime,” he says.

In fashion weekcollections are shown sixmonths in advance, headds, but consumers canimmediately view the newcollection digitally. “Youthen tell your client, ‘Butyou have to wait sixmonths’. That’s OK whenyou’re placing somethingbespoke. But when you’reselling ready-to-wear,there’s nothing readyabout it.”

Mr Burke hopes that inhorlogerie the brand canbe innovative, and “thefirst to do somethingslightly different”.Nicholas Foulkes

Louis Vuitton Dispensing withtradition as modern timepiecequalifies for the Seal of Geneva

FlyingTourbillonGeneva SealLouis Vuitton

Well connected: the Philips HealthWatch is Bluetooth connected andautomatically measures a wide rangeof health biometrics

Monday 18 January 2016 ★ FINANCIAL TIMES 7

P aloma Picasso avoided beingartistic as a teenager. Sheeven stopped doodling on herschoolbooks — because shefelt the weight of expectation

thatshewouldbecomeapainter likeherparents, Pablo Picasso and FrançoiseGilot.

However, an “odd job” assisting thestage director at the Théâtre de la Ren-aissance in Paris, which gave her theopportunity to design jewellery for aplay, “broke the spell”. The experienceinspired her to go to jewellery schooland paved the way towards her entirecareer.

Now 66, she has since designed forYves Saint Laurent and the Greek jewel-lery company Zolotas. She continues towork with Tiffany & Co, for which shedesignedher first collection in1980,anddivides her time between homes inLausanneSwitzerlandandMarrakesh.

“What I like about jewellery,” shesays,“is that it’smuchmoreeternal, let’ssay, than fashion. Fashion is themoment; jewellery is more than themoment.

“I love the fact that it’s alwaysrelated to particular memoriesorpeople thataredear toyouorwere dear to you.It could bethat it comes from a familyheirloom, passed down fromgeneration to generation. Ialso love the fact of becomingpartofsomebody’s life.

“There’s something reallynice about knowing thatsomebody will wear what youdesign, and cherish it for years.

Often it’s a message of love when some-body buys a piece of jewellery for some-bodyelse.

“One [favourite] piece was made bymy father for my mother. It’s a sun. It’sa big, round plate of gold, rather thin,that was hand-hammered by himwith a very little face in the centre.It’s a portrait of my mother that hegave my mother, and my mothergave it tome. I thinkthis is theresultof the love I come from. It’s also likethe cosmos — where we come from,the light, the sun — and so it’s veryimportant tome.

“He also did some [pieces] in wax. Hediscovered that dentists use wax [tomodel] the inlays in your mouth, so heasked the dentist, ‘Would you lend mesome wax and if I made something inwax would you get it cut in gold or silverfor me?’ My father made some jewellerypieces like that. Very few people havethemorknow[of] them.

“The first time I designed for men waswhen I got married [in 1999] toEric [Thévenet]. He told mehe would not wear a wed-dingbandbecausehedidnotlike rings and they did notsuit him. I said, ‘I will designone that you will want towear.’AndIdid.

“It’s quite a heavy ringand it’s got eight big dentsin it. The eight stands foreternity: you twist theeight in the other direc-tion, that’s the eternitysign.

“Another thing I discoveredonce I’d made the ring was that if youput it on a table on its side, it stands up,so I thought that the ring was built for alongstanding relationship. It’s made outof20-caratgold.

“So many people asked about our[matching] rings that some years ago,we decided to make them for Tiffany.They were quite successful and nowwe’vedecidedtorelaunchthem.

“My husband and I spend all our timetogether. One of our passions is classiccars. In 2014 a friend had organised tohave somebody drive his car in Italy’sMille Miglia [classic and vintage carrally].

“At the last minute that person

couldn’tdo it, sotheylentustheirLan-cia Aurelia. I was a co-pilot, Eric

was a pilot and we did this rally,which isabsolutely incredible.

“Chopard is one of the spon-sors of the Mille Miglia andeach year they make a specialwatch and give it to the pilot.Eric saw that I really liked it,so he gave it to me. It bearsthenumberof thecar.“When Eric first met me he

said it was difficult to give mejewellery presents because I am

a jewellery designer and alreadyhave what I want. But still he

knows I have a passion for Line Vau-trin.

“My astrological sign is Aries — theram — so he found this really beautifulnecklace where the links are made byher and in the middle hangs a ram. HalftheAries isgoldandtheotherhalf silver,and half the chain is in silver on one sideand gold on the other. It’s really wonder-ful, poetic, beautiful and I do wear it,which is rare, because most of the time Iwearmyownjewellery.

Another piece I wear is onefrom my latest line, which iscalled Olive Leaf. It is a bigcuff.

“Early on, I thought, every-body’s expecting me to be

connected to my parentsstyle-wisesoobviously if Ieverdo something that reminds meof my father or my mother Ishould throw it away and dosomething else. That was how I

wasbuildingmyownstyle—try-ing to separate myself out of

respect forwhat they’vedone.“I’d always been told as a child to take

responsibility for my own design, then,when I started to draw a little better — Ithink I was maybe nine or 10 years old —I started copying things in the house. Icopied a painting by my father, a paint-ing by [Henri] Matisse and a Tom andJerrycartoon.

“Once I’d done those three I asked myfather for his opinion. He told me: ‘Youcan’t expect me to be the judge. Youhave to be your own judge’. Which is avery grown-up answer and a very goodonetoo.Fromthenon, IknewIhadtobeonmyownformycreativedecisions.”

‘Made bymy father for mymother and given tome’My favourite piecesPaloma Picasso tellsKate Youdewhy shecherishes her goldsun pendant

‘Jewelleryis eternal.Fashionis themoment,but jewelleryismore thanthemoment’

The architect Christophe Carpente hascarved out a career working for luxurybrands including De Beers, Cartier, Bul-gari, Boucheron, Swarovski, Vertu, Pan-dora and the Chow Tai Fook-ownedHeartsOnFire.

Of late, he has noticed a sea change inthe way retailers are planning theirstore interiors. Luxury jewellers aremoving away from corporate retailcathedrals, Mr Carpente believes.Instead they are opting for more inti-mate selling environments, inspired bya domestic feel that allows for productstobegroupedtogether.

Mr Carpente’s firm CAPS has eitherdesigned or built more than 500 luxuryretail stores worldwide — 30 per cent ofthese selling watches and jewellery,including 40 De Beers stores. His workencompassesgraphics,packaging, light-ing, visual merchandising, offices andshowrooms and ranges from entirebuildings toa1cmringholder.

Opening a megastore may have stra-tegic and symbolic impact for a brand,says Mr Carpente, but it remains justone store. Changing a visual merchan-dising system by introducing a 50cmpresentation tray might seem a smalldevelopment in comparison, but for a brand with 500 points of sale “the visualimpact on the entire network is mas-sive”, he adds. Pandora, Swarovksi andVertu have implemented his storedesignsworldwide.

Mr Carpente’s childhood preparedhimwell fora life in luxuryarchitecture.Growing up in an 18th century Frenchchâteau, he spent summer holidayswithhis familysailingacross theEnglish

Channel totheIslesofScillyonthesouthcoastofEngland.

“As a boy, I daydreamed in largespaces among amazing landscapes andexperiencednatureasanadventure,”hesays. “While sailing, I discovered themeaning of a small space and all theintriguing details that make[a boat] asmart place for travelling and living. Ialways took photos, but ultimately Iwanted to reach out beyond the cameralens and create what was in front of thecamera, rather than contemplating itandframing it forashot.”

In his 20s, Mr Carpente worked inBrazil, where he visited the architectsLúcio Costa, Oscar Niemeyer and Rob-ertoBurleMarx. In1994,havingworkedwith two other influential architects,Jean Nouvel in Paris and Antonio Citte-rio in Milan, he was appointed head ofinternational architecture at the foot-wear and accessories retailer Bally,where he translated brand strategy intostoredesign.

CAPS projects can last from threemonths to three years. They begin witha site visit, an analysis of the brief, meet-ing the people involved, understandingtheir goals and brainstorming. The next

step, says Mr Carpente, is forgettingabout the project until “it comes backnaturally like a tidal wave, allowing thedesigndirectiontotakeshape.”

His award-winning design for theChristian Lacroix flagship store inTokyo, created in 2003, featured move-able glass wall partitions in 19 differentcolours,engineeredtocopewithTokyo’sregular earthquakes. However, he says,that for him, the project’s greatestreward arose largely from the working

relationshiphebuiltwithhisclient.Mr Carpente considers three things to

be crucial to success in the luxury busi-ness: paying full and personal attentionto every detail, listening more thanspeaking and adopting a softly-softlyapproach. He has no shortage of experi-ence when it comes to working underpressure. When he built his first fourstores for Cartier, they were all due toopenonthesamedayinNewJersey,Ari-zona, Kuala Lumpur and Singapore.The project demanded four round-the-world trips in six weeks. “All four storesopened on time but it took me a monthtorecover,”hesays.

On another occasion, he found him-self having to negotiate language barri-ers while co-ordinating Chinese work-ers constructing cabinets for a jewellerystore in Azerbaijan. “I lurched into sur-vival mode, sketching instructions onwalls and kneeling down on the floormyself tomarkupthe installation.”

Last year Mr Carpente moved theheadquarters of CAPS from Zurich toNotting Hill in London, which he says ismore convenient for his family — his cli-ents are spread across the world. CAPSprojects for the coming year include aDe Beers store in Kuwait, a jewelleryroom in the UK outlet shopping centreBicester Village, a Hearts On Fire storein Taipei and a London residence for aSwisswatchcollector.

The demand for bespoke luxuryprojects around the world is growing, hesays,and“it’sgreat tobeapartof it”.

The details make thedifference in a worldfull of luxury outletsArchitecture

Award-winning architectChristophe Carpente seesthe megastore going out offashion, writes Claire Adler

Tracey Emin’s love ring

Fashion and art have long shared a richsymbiosis, with fashion designers andartists collaborating on one-of-a-kindcollections fromapparel toaccessories.

Now jewellers are getting in on theart-world action. The London-basedjeweller Stephen Webster and Britishartist Tracey Emin are presenting a Val-entine’s Day collection, and just beforethe Baselworld trade fair in March, Dan-ish marque Georg Jensen and the archi-tect Dame Zaha Hadid will unveil theirowncollaboration.

Such alliances underline the growingpresence of brands in the jewelleryindustry. According to consultancyMcKinsey, brands comprise only 20 percent of the jewellery market — however,this figure is “shifting rapidly”, saysMcKinsey’s Nathalie Remy. The consul-tancy estimates that the share couldreach 40 per cent by 2020. “Morebrands are acting in the jewellery space,and as these names become bigger, theissue of branding becomes more preva-lent,”saysMsRemy.

Mr Webster and Ms Emin’s collabora-tion — I Promise to Love You — is a 50-strong collection of rings, pen-dants, bracelets and cuffs, dropearrings and ear cuffs, cufflinksand a tie pin. Appearing on theluxury online retailer Net-A-Por-ter on January 20, the collectionwill then move to StephenWebster stores and Harrodsfrom February 10. It is thefirst collaboration of its kindfor both Mr Webster and MsEmin. The two have beenfriends for 40 years, and col-lecteachother’swork.

“Thecollectionreallyrepre-sents both our worlds,” says MrWebster. Set in 18-carat gold and in

Mr Webster’s signature rock’n’roll,rebellious style, the pieces pay homageto Ms Emin’s best-known creations,suchastheneonslogans.

“There is something in Tracey’s workthat is so fundamental to jewellery,” hesays. “So much of it is about commit-ment, marking occasion and emotions.That has always been the basis of jewel-lery,andTracey’sworkisallabout that.”

Also unmistakably Emin are the figu-rative woodland animals, including ahare, owl, toad, badger and bird, whichmake their way into Mr Webster’s yel-low gold necklaces, pendants and acharmbracelet.

Ms Emin, who chose all the creatures,explains: “I wanted English animals. My

ancestors were forest gypsies and Iwantedtoworkwiththis idea.”

Getting the creatures to “look and feelright” took some time, adds Mr Web-ster. “I had to take something in pen andink and — using all my 40 years of jewel-leryexperience—makeit ingold.”

The two years it took to complete thecollection were not without anxiety.“When I showed Tracey the first pieces Iwas as nervous as if she were a big-shot

client,” says Mr Webster. “I’ve basi-cally got someone else’s work, andyouwant to feelyou’veexecuted it inawaythat theoriginalcreatorwould.”

Ms Emin adds that the collaboration“makes perfect sense as Stephen and I

are such good friends. The whole proc-esshasbeenapleasure.”

The gems are priced from £400, nota-bly lower than Mr Webster’s best-sellingcollections — among them Lady Star-dust, Magnipheasant and Fly By Night— which range from £1,750 to £175,000.But I Promise to Love You is meant to beaccessible to Mr Webster’s clients and toMs Emin’s “fans”, namely youngerwomen. While more substantial, dia-mond pavé pieces will appeal to MrWebster’s existing customers (and alsothose who can afford Ms Emin’s art), anewclientele isexpectedto jointhem.

Also teaming up with an art-worlddarling is Georg Jensen, which willlaunch a collaboration with Dame Zahaat Basel. This follows similar collabora-tions by the Danish marque, in particu-lar a butterfly-themed collection withjeweller Jordan Askill last October and asilver tea set with the Apple designerMarcNewsoninNovember.

Ms Remy at McKinsey says that oftensuch collaborations are intended to“inject a bit of different artistic content”into brands, to be perceived as “eithermore modern or creative”. The 110-year-old Georg Jensen, which wasboughtbyInvestcorp in2012for$150m,says it wishes to attract a “younger,cooleraudience”.

Alliances with famous names seem tobe a move in that direction. Such part-nerships must also be a win-win, addsMs Remy. “Especially when it’s with adesigner who is putting his or her ownname on the market. The benefit isincreased visibility, attractiveness andmomentum.”

Dame Zaha, who recently became thefirst woman to receive a Royal Institute

of British Architects gold medal,will raise her profile. And,

as past jewellery col-laborations haveshown, Dame Zaha is a

fan of the art. There havebeen two stints with

Swarovski: the first in 2008 forthe blackened silver and precious stoneCeleste necklace and cuff, followed bythe Glace collection inspired bySwarovski’sprecious-cutcrystals.

Artist and architect add sellingsparkle to two top jewellersCollaborations

Tracey Emin and ZahaHadid join Stephen Websterand Georg Jensen in win-winalliances, reports Ming Liu

Luxury jewellers are optingformore intimate sellingenvironments that areinspired by a domestic feel

FT SPECIAL REPORT

Jewellery

Making plans: architect ChristopheCarpente works on luxury projects

Paloma Picasso wearing the pendantmade by her father (right). Clockwisefrom top left: Line Vautrin gold andsilver chain and ram; wedding ringwith eight dents and Olive Leaf cuff(both designed by Paloma); Chopard‘Mille Miglia’ watch — Keystone/Anthony Annex

‘My ancestors were forestgypsies and I wanted toworkwith this idea’Tracey Emin

8 ★ FINANCIAL TIMES Monday 18 January 2016

Watches & Jewellery Brands

F ounded in 1613, Mellerio ditsMeller is among the oldest ofall jewellery companies. Rarein a world where many promi-nent brands are owned by

international luxury conglomerates, itcontinuestobefamilyowned.

Laurent Mellerio, its chief executiveand a 14th generation member of thebusiness, says that until recently Melle-rio was a “sleeping beauty”. It lacked theglobal recognition it deserved, despitehaving been a technical innovator andthe court jeweller to Marie AntoinetteandmanyotherEuropeanroyals.

In the past few years, Mr Mellerio hastried to change this. “With one foot inthe past and one foot in the future,” hesays that the company has focused ongrowing its internationalprofileanddis-tribution.

Its extensive archives have served formarketing efforts that include a bookand museum exhibitions, and also asinspiration for contemporary creationssuch as its capsule collection designedbythecouturierAlexandreVauthier.

The storytelling capabilities of a lux-ury heritage brand are valuable inreaching consumers, says Luca Solca,managing director and sector head ofglobal luxury goods at Exane BNP Pari-bas. “I think heritage is incrediblyimportant in luxury goods and is at theroot of ‘the reason why’ for luxurybrands,”heexplains.

In the US, a number of people havespotted an opportunity to acquireundervalued or neglected brands, such

asDavidWebb,MarinaBandBelperron,to capitalise on their heritage and givethemanewleaseof life.

In 1998, the former Sotheby’s expertWard Landrigan acquired the designarchives of Suzanne Belperron(1900-83), one of the 20th century’smost influential jewellers. In October,his son Nico opened a Fifth Avenuesalon showcasing antique pieces andmodern interpretations, a strategyWard Landrigan first adopted withFulco di Verdura (1898-1978), when heacquiredhisarchives in1984.

The private salon-style showrooms ofBelperron and Verdura offer an alluringsense of exclusivity and tradition thatappeal to the luxury consumer, saysRobert Burke, a New York-based retailconsultant. “The customer wants theultimate luxury experience, somethingwithareal senseofhistory,”hesays.

Mr Burke adds that heritage brandsappeal during a period of economic vol-atility, when people are drawn to hardassets suchas jewelleryaswellasbrandsoffering a safe, long-term bet. “The con-sumer wants timeless pieces that arealso investment pieces,” he says. “Herit-agebrandshaveenormousarchives thathavewithstoodthetestof time.”

Mr Mellerio says that his company’sheritage has been valuable in reachingnewmarkets.Formerlyavailable topur-chase only at its store off the PlaceVendôme in Paris, Mellerio jewels arenowatMitsukoshi inJapan,AlFardaninQatar and Lane Crawford in Hong Kong.The Alexandre Vauthier collection is

available at Just One Eye in Los AngelesandOxygene inMiami.

Mr Mellerio says these retail partnershave been selected to reach customerswho appreciate that the “spirit of thehouse will always remain about smallproductionbyasmallParisianatelier”.

For Mark Emanuel, remaining true toa brand’s spirit while looking to itsfuture is key to giving it new life. Withpartners Sima Ghadamian and RobertSadian, he bought David Webb out ofbankruptcy in 2010 for $11m (Ms Ghad-amian is no longer an owner). The firstpriority, he says, was to study the com-pany’s archives to understand its“design language”.

“We bought the company when it wason its knees. We first learned how tocrawl, then to walk,” says Mr Emanuel,who declines to share sales figures butsays growth has been steady, withouttheneedforanyoutsidecapital.

As well as flexing its heritage muscleswith a book and exhibitions, DavidWebb has attracted younger customerswith lower entry price points, improvedstore locations and high-fashion adver-tising and social media campaigns. ItsWoodworks collection is a moderninterpretation of classic David Webbdesignsusingmoreaccessiblematerials.

The company is also looking abroadto expand. In February it will be at theDoha Jewellery and Watch Exhibition inQatar for thethirdconsecutiveyear,andfurthershowsareplannedelsewhere.

Marina Bulgari, who founded MarinaB in 1978, retired in the late 90s after

relinquishing her company to a Saudisheikh. The company was subsequentlyacquired by the New York investor PaulLubetsky in 2012. However, the 2014appointment of Ms Bulgari’s nephew,Giorgio Bulgari, as creative directorextendsthebrand’sheritage.

Triangoli, Mr Bulgari’s first Marina Bcollection, is inspired by an early chokerdesign of his aunt’s in triangle diamondsand was created to appeal to a younger,fashion-conscious customer who wantsjewellery that can be worn every day. Italso succeeds in hitting the lower end ofprices ranging from $1,500 to $42,000.The average Marina B offering, exclud-inghigh jewellery, is$15,000to$20,000.

As part of a wider campaign to raiseawareness, the company invited fashionbloggers to the collection launch at itsmidtown Manhattan store. With guestsable to try on and take photos of the jew-ellery, the event reflected how the lux-ury market has changed. “An event likethat would have been unthinkable fouryears ago,” says Mr Bulgari. “There is agreater overlap between fashion andjewellerythaneverbefore.”

While the bold pieces and equallybold retail prices of niche heritagebrands such as Marina B, David Webband Belperron contrast with the deli-cate, layered jewellery that has domi-nated fashion for the past 10 years, MrEmanuel believes there is space for eve-rybody. “The key is to honour a brand’sspirit,” he says. “The one true standardis to make something beautiful. If youdothat,peoplewillwant it.”

Heritagebrandsstand thetest of time

RetailDiscerning owners have given a new lease oflife to neglected companies, saysRachel Garrahan

Few in the world of fine jewellery haveheard of John Rubel. When the occa-sional vintage piece comes up for auc-tion, only enlightened collectors andjewellery historians recognise the signa-ture of the Parisian workshop turnedprivate label, which rose to fame brieflyinthemid-1940s.

However, three years ago, SophieMizrahi-Rubel, whose great-unclesfounded the jewellery house,relaunched the brand after discoveringa trunkful of forgotten drawings, photo-graphs and newspaper clippings at herfamily’scountryhomeinFrance.

John Rubel’s story began in 1915 whenJean and Robert Rubel, eastern Euro-pean immigrants fleeing the war in theAustro-Hungarian empire, set up shopintheOpéradistrictofParis.

“My family migrated from Hungary,where they were established in the jew-ellerytrade,”saysMsMizrahi-Rubel.

Operating an atelier under the nameof Rubel Frères, the brothers beganworking for prestigious jewelleryhouses on or near the Place Vendôme,manyofwhichboastedanillustriouscli-entele and fancy storefronts but out-sourcedtheirproduction.

“Rubel Frères was anatelier fabricant,”says Marguerite de Cerval, a jewelleryhistorian. “They worked as craftsmenforsomeof thebestParisian joailliersatatime when most had a boutique but noworkshop.

“Rubel Frères’ principal client wasVan Cleef & Arpels, thanks to whomthey became known,” adds Ms de Cer-val. “Sometimes, they were allowed toput their name on pieces they made forVanCleefasagaugeofquality.”

In 1939, with war looming in France,Van Cleef settled in New York, shuttingits operations in Paris. The Rubel broth-ers followed. IntheUStheycontinuedtowork for Van Cleef, producing memora-ble pieces such as the ballerina broochthat went on to become an icon at thejewellery house. But in 1943, a disputeover the design of the twirling dancerbrought therelationshiptoanend.

Determined to stay in business, thebrothers opened a shop on Fifth Avenue

in New York and changed the name ofthe business to John Rubel. For a fewyears, the company catered to the NewYork and Palm Beach set, finding inspi-ration in the Art Deco style and explor-ing the repertoire of dancers in itsdesigns.

“John Rubel became known for itsbright colour combinations, its use ofturquoise and rubies together, itsdancerbroochesanditspronouncedArtDecostyle,”saysMsMizrahi-Rubel.

In the early 1950s the brothers, thenin their 60s and unable to run the busi-ness by themselves, returned to France.By then, their nephew, Marcel, hadclosed the family’s Parisian workshopandturnedtodealingdiamonds.

Thus, John Rubel remained dormantuntil last September when Ms Mizrahi-Rubel, who grew up in a family of stonedealers and worked for 25 years in crea-tive and management positions atCartier,Mauboussin,FredandVanCleef& Arpels, introduced a collection of 18pieces she had commissioned fromworkshopsaroundEurope.

“The collection has some completelyoriginal pieces and a few inspired by theRubel archives but always with a touchofmodernity,”MsMizrahi-Rubelsays.

In the Vies de Bohème collection, Ms

Mizrahi-Rubel has reinterpreted thedancer theme. The blue Carmen ring,set with a 12.74-carat Ceylon sapphire,was inspired by Bizet’s opera. It comeswith matching earrings and recalls thetwirlingskirtsof theballerinathatmadeJohnRubel’sworkfamous.

Whether the revived label will piquethe interest of today’s fine jewellerybuyersremainstobeseen.

“Collectors seek vintage Rubel piecesbecause of the established reputation oftheoriginalatelier,”saysMsdeCerval.

Vintage Rubel pieces usually surpassestimates at auction. Last month Chris-tie’s auctioned a ballerina brooch manu-factured by Rubel Frères for Van Cleeffor$149,000(est.$60,000-$80,000).

“The old John Rubel was a confiden-tial label,” adds Ms de Cerval. “The newJohn Rubel will have to appeal to a clien-tele who will likely know nothing aboutitsheritage.”

Long-forgotten dancersmove to amodern tuneBrand revival

The 1940s Parisian atelierhas been relaunched forcontemporary collectors,writes Nazanin Lankarani

On display: Giorgio Bulgari with a Marina B collection — Marina B

‘JohnRubel became knownfor its bright colourcombinations and itspronouncedArt Deco style’

The glamorous link between the starsand jewellery is a long-established andflourishing one. But while it is often thered carpet where celebrities shinebrightest, advertising campaigns arebeginningtosharethespotlight.

For the first time Cartier, Buccellatiand Dior are using famous faces. Pomel-lato now has Salma Hayek, whose hus-band, François-Henri Pinault, and hisluxury group Kering own the brand.TAG Heuer is using the Australian-bornHollywood actor Chris Hemsworth forits latest ads. “He appeals to the younger20- to 25-year-olds, as well as the Aus-tralian market, which is our third-biggest market after the US and Japan,”says Jean-ClaudeBiver,chiefexecutive.

As Gen Kobayashi, UK head of plan-ning at advertising agency Ogilvy &Mather, says: “In today’s fame-obsessedworld, using celebrities in an ad is ashortcut to getting people talking aboutthebrand.”

Stephen Webster agrees. The jewelleris still reaping benefits from his 2008-11advertising campaign starring ChristinaAguilera, especially in markets such asSouth Korea where the brand is lessknown.

Competition is driving the trend asthe jewellery market expands and thewatch market contracts. McKinsey, theconsultancy, predicts annual global jew-ellery sales to grow at 5 or 6 per centevery year by 2020. Swiss watch marketexports have dropped 3.3 per cent yearonyearbetweenJanuaryandNovember2015, in the wake of the slowdown inHong Kong, China and Russia, accord-ing to the Federation of the Swiss WatchIndustry.

Relationships are also forming inmore sophisticated ways. Chopardrarely uses personalities in its adverts,

says Raffaella Rossiello, internationalcommunications director. However, theChinese actress Fan Bingbing, bestknown in the west for her role inX-Men:Days of Future Past, has been the face ofthebrandinChinasince lastyear.

“In such a vast country, we needed tocommunicate quickly that we are hereand that we are an important brand,”says Ms Rossiello. “So we used a power-ful person like Fan Bingbing, who is atrendsetter in Asia and appreciated inother markets like the US, where theChinesealsobuy.”Gameof Thrones’ Emilia Clarke was an

unexpected choice to promote Dior’sRose des Vents jewellery collection, buthas helped to make it distinctive, as jew-ellery brands play safer than most, saysMarcel Knobil, brand consultant andfounder of the luxury products andexperiences website VeryFirstTo.com.“Their reputations are huge — any bliphas anegativeeffectonsales,”headds.

For Andrea Buccellati, president ofBuccellati, changes in consumerhabits prompted the choice ofthe model and actress ElisaSednaoui to show how thehouse’s ornate jewels could beworn every day. “Women arenow buying jewellery for them-selves to wear even for shoppingat thesupermarket,”hesays.

Omega’s president StephenUrquhart explains that advertising has beencrucial to the suc-cess of its JamesBond partner-ship since the1995 f i lmGoldenEye.“There’s nop o i n tputt ing awatch in a filmwithout talkingabout it, as no onewould notice,” hesays. “If I look at a sales

graph of the Bond-related watches overthe eight films in 20 years, it’s like look-ing at the stock price of a fantastic stockwithoutanydip.”

Mr Biver believes five years should bethe minimum length for any partner-ship, and ideally 20 years, to allow theassociation with a celebrity to developcredibility and to make the financialinvestmentmorecost-effective.

Relationships extend beyondadvertising. TAG Heuer has created alimited-edition watch with the foot-baller Cristiano Ronaldo, using his per-sonal CR7 logo, the first time the comp-nay has branded a watch after a celeb-rity. The model Miranda Kerr hasdesigned a 29-piece collection withSwarovski.

Celebrities’ millions of social mediafollowers instantly widen a brand’saudience base. Ronaldo has more than100m fans on Facebook. However,CharlesGeorges-Picot,co-presidentandchief executive of Publicis 133 — the

agency behind advertisements forCartier diamonds starring the

model and singer-songwriterKaren Elson — cautions thatsocial media have limits for lux-urybrands,whichmaynotwishtobecometoomainstream.While the Oscars awards cere-

mony remains the sought-after redcarpet event for celebrity

endorsement, thereare other opportu-nities. VincenzoCastaldo, Pomel-lato’s creativedirector, cites theVenice film festi-val, held in Sep-tember, as a hid-den gem: “Thisis when thepeak season in

terms of salesbegins.”

Chopard tips theToronto film festival,with its increasinglyinternational pro-gramme and audi-ence.

Stars from Salma to Ronaldoshine in promotional campaignsAdvertising

As jewellery sales expandglobally, increasing numbersof brands are hiring famousfaces, says Melanie Abrams

Star power: Miranda Kerrhas designed a collectionwith Swarovski

A house builton 400 rupeesBrand development

Amrapali’s chief tellsCamilla Apcar about thejourney from the workshopsof Jaipur to global brand

Tarang Arora has not been sleepingwell,yet thecauseofhisrestlessnights isnot the stress from his job as chief exec-utive and creative director of the Jaipur-based fine jeweller Amrapali. On thecontrary, it is the rather welcome one ofthebirthofhis firstchild,aboy.

For a family-owned jeweller — Amra-pali was founded in 1978 by Mr Arora’sfather, Rajiv, and his friend, RajeshAjmera — this is significant news. WillMr Arora’s son eventually take overfrom his father? “I hope so — let’s seewhat he would like to do,” says MrArora.

Mr Arora’s father and Mr Ajmerabegan the company with 400 rupees intheir pockets — in today’s values about£4. Fascinated by antiques and history,the pair bought a second-hand car andtravelled India’s states, from Rajhastanto Gujurat, buying jewellery from smallvillage pawn shops and discovering thetraditions and craftsmanship of differ-ent local styles.

Theyamassedmorethan2,500piecesof antique jewellery, particularly silvertraditional designs. Mr Arora says thatinhis father’shands,onenecklacemightthen be transformed into a dozen ear-rings. “It was entrepreneurship at a veryinitial stage,” he says. Today that proc-ess has been reversed — every day thebrand is offered jewels and antiquesfromallover India.

“This is a recycling system,” says MrArora. “India has this strong belief ofjewellery not as fashion or luxury, but asinvestment. Jewellery always rotates:someone buys it, keeps it and if there’s awedding in the family and they needcash, theywouldgoandsell it.”

He adds that it is rarer these days tofind antiques of the same quality.

Whereas Mr Arora’s father would basedesignsaroundanantique, todayAmra-pali’s glittering, one-of-a-kind creationsare more likely to be an original centraldesign embellished with trinkets. Thebrand — now globally renowned — hasevolved too and creates many more newpieces than the enterprise did 30 yearsago.

Amrapali has about 1,500 people onitspayroll, including thecraftsmenat itsthree Jaipur workshops. In addition itemploys artisans from Indian villages tocreate pieces. These are often familieswho have worked with the company fordecades, receiving designs by post andtravelling to Jaipur weeks later to showtheir designs. “Indirectly we are sup-porting 5,000 or 6,000 lives — we are responsible for theirdaily foodandshel-ter,”saysMrArora.

Amrapali is best known for its pre-cious emerald creations, but it is slowlyentering the coloured diamond marketbecause of increasing demand from cus-tomers. Several gemstone workshopswork exclusively for Amrapali and thejeweller also works with Gemfields, themining company specialising in ethi-callysourcedcolouredgemstones.

Mr Arora says over the past decadetanzanite has emerged as an alternativeto blue sapphire in India, where there isa superstition about the precious stone.“You can’t wear a blue sapphire unlesstold by a priest and there’s a process ofwearing it — you put the blue sapphireunderyourpillowandsleepwith it therefor a week,” says Mr Arora. If the indi-vidual has good dreams, the sapphire isthen worn for another week wrapped ina cloth around the arm. If all goes well,the stone can then be mounted as jewel-lery. Tanzanite offers a simpler, lessexpensiveoption,hesays.

Mr Arora, who graduated as a gemol-ogist from the Gemological Institute ofAmerica, spends his time designing finejewelleryattheJaipurworkshops,meet-ing clients, buying stones and travellingtoshowsandAmrapali’s retailoutlets. “Iprettymuchmakewhat Iwant,”saysMrArora, who joined the company in 2004andtookthereins in2012.

Although growth has slowed fromrates of about 25 per cent year-on-yearin 2007, to approximately 12-15 per centtoday, Amrapali’s pre-tax revenue forretail in India in 2014 was about £20m.Sale volumes are highest in silver jewel-lery — the privately owned companydoes not reveal sales figures — but overthe past two decades the brand hasbegun creating more in gold and finejewellery with higher price tags. MrArora hopes that international sales willin time reach similar heights. The brandhas boutiques in London and New York,stockists from China to Pakistan andwill soon open in Chennai, the capital ofTamilNadu.

Onlineretailhasbecomeimportant inIndia, adds Mr Arora and tapping intothis market in part accounts for a focuson the online-only sub-brand, Tribe byAmrapali. Mr Arora’s wife, Akanksha, isdesigner and chief executive of Tribewhich she launched in 2013, because ofa growing demand for more accessiblypriced jewellery. Tribe offers more“every day” jewellery, largely in silver,from about $3 to more than $1,000, andhas become an unexpectedly importantcontributor to revenue, Mr Arora com-ments.

He believes that having productsranging from entry level to fine jewel-lery puts the company “in the best posi-tion possible” and able to adjust accord-ingtotheneedsof themarket.

Meanwhile, offers from externalinvestors to buy Amrapali have beenturned down. “We don’t want to let go ofwhatwe’vecreated,”hesays.

Tarang Arora of Amrapali

Monday 18 January 2016 ★ FINANCIAL TIMES 9

Last April a framework agreement wassigned in Beijing between the Chinesegovernment and watchmaker andjeweller Cartier — establishing apartnership that will be closely scruti-nised by China-watchers and the artworld.

Under theagreement,ArtExhibitionsChina, an organisation controlled by theState Administration of Cultural Herit-age, will co-operate with FondationCartier pour l’Art Contemporain, themaison’s non-profit contemporary artsinstitution, on various arts and culturalexchange programmes. Directivesinclude exhibition promotion, person-nel training and art industry develop-ment.Twoeventsheld lastyear—one inChina, another in Europe — have set thewheels inmotion.

The partnership is in many waystimely and prescient. China is on amuseum building spree, opening newinstitutions both public and private.More than 10 private museums haveopened in Shanghai in the past fewyears. Insiders say the government willconstruct an additional 400 public and1,200 private ones countrywide in thecoming five years. Of the latter, 600 areexpected to be contemporary art anddesign institutions.

“China is living through the museumera,” says Philip Dodd, former directorof the ICA in London and founder of theGlobal Private Museum Summit and theUK-based creative agency Made inChina.

But while China may be adept inbuilding infrastructure, it lacks what MrDodd calls “software”: curatorial expe-rience, educational expertise, market-ing, branding and the like — the verycompetencies that a house such asCartier can provide. Its foundation,established in 1984 and today based in aJean Nouvel-designed museum inParis’s 14th arrondissement, has hostedmore than 100 exhibitions and commis-sioned more than 1,000 contemporaryworks.

There is also the globetrotting CartierCollection of 1,500 heritage pieces thatCartier invites museums around theworldtoshowcase.

Links with China have alreadybeen forged: Cai Guo-Qiang, HuangYong Ping and Yue Minjun are amongChinese artists that Fondation Cartierhas promoted, while five Chinese muse-ums have hosted Cartier Collectionshows.

The maison is among China’s mostrecognised foreign watch and jewellerybrands. It first entered the country in1992, planting its flag in Shanghai, andtoday has more than 35 boutiques.Cartier’s commercial success is alsoparticularly significant for Art Exhibi-tions China. Commerce and culture arevery much bedfellows in China — muse-ums in shopping malls, for example, arecommonplace.

Cartier “is at the cusp between luxuryand culture”, says Mr Dodd. “It’s a verysmart vehicle [to partner with] becausethe government too understands thecomplex relationship between com-merceandculture.”

Co-operation between AECand Cartier dates from June 2014and, according to AEC, the maisonis the only luxury brand with which

it has signed such an agreement.Established in 1971 as a platform for

Chinese and foreign cultural exchange,AEC is a 40-employee organisationthat has organised 200 exhibitionsand exchange programmes at homeand abroad. Among them was a showin 2014-15 in Paris at the Musée Guimetfor Asian art, which brought together27 Chinese museums to exhibit a collec-tion of Han cultural relics. Marking 50years of Sino-French ties, it had 83,500visitors and featured lectures, work-shopsandfilmscreenings.

With Cartier acting as “cultural medi-ator”, says Pierre Rainero, Cartier’simage, style and heritage director, theframework agreement will cement themaison’s foothold in the country, whilealso reflecting its “pioneering commit-ment to open up contemporary art, ren-dering it more accessible with the Fon-dationCartier”.

Education is key. Hervé Chandès, theFondation’s director, adds that youngprofessionals trained in different coun-tries will “become the curators oftomorrow”.

Two inaugural programmes havegiven a taste of things to come. Atan exhibition in Chengdu last summer,300 Cartier Collection pieces weredisplayed alongside 87 works fromSichuan Museum. The show attractednearly 1m visitors, 700,000 of them dig-ital.

The Chengdu event was followedwith a four-week tour around Franceand Switzerland. Three curators fromBeijing’s Palace Museum, ShanghaiMuseum and AEC visited nearly20 museums and foundations andmet leading personnel. Exhibitionswere used as case studies, with fourmain areas covered: contemporaryart (Fondation Cartier, Paris’s Salle duJeu de Paume and the Louvre wereamong those institutions visited); sce-nography (the Arab World Institute,Paris, and the Fondation Pierre Bergé-Yves Saint Laurent); new museums andcultural policies (Centre Pompidou-Metz, Geneva’s Ethnography Museumand Lausanne’s Olympic Museum,among others); and heritage and collec-tion management (Musée Cernuschiand the Baur Foundation, where aCartier Collection show is currentlybeingstaged).

Future initiatives, such as exhibitionexchanges, are in their infancy but pro-gramme planning is very much a jointeffort.

Cartier adds the finishing touchto China’s fledglingmuseumsPartnership

The brand’s Frenchfoundation can offerexpertise in a countrywhere culture andcommerce are interlinked,writes Ming Liu

Watches & Jewellery

T wo floors above Aspreyon Bond Street, througha labyrinth of narrow,well-trodden corridorsand a multitude of offices

and workshops, master silversmithBilly Boreman is sitting by his work-bench in Asprey’s silver workshop. Heis surrounded by hammering and firingtools, a forge for heating metals anda bath, called a pickle tank, usedfor cleaning metals before solderingthem.

To step into this industrial setting is toenter a world far away from the royalpalaces, luxury residences and swishheadquarters of international football,rugby and equestrian clubs, where theresults of Mr Boreman’s highly skilledsilver handiwork — imaginative decant-ers, tableware, trophies and bespokecommissions — are to be found, andwhere they are likely to be treasured forgenerations. The workshop is also instark contrast to the plush Sir NormanFoster-designed Bond Street storedownstairs.

Mr Boreman joined Asprey in 1977,aged 16, as a silversmith apprenticeafter completing a one-year pre-ap-prenticeship course at the Sir John CassCollege in Clerkenwell, London wherehe studied silversmithing, engraving,designandmetalwork.

Today, he is Asprey’s longest servingsilversmith, responsible for handcraft-ing precious silver items including theDerby and Barclays Premiership tro-phies.

“There is a certain music to the dailysounds of the workshop, the hammer-ing, the welding, the polishing, the ban-ter, thecamaraderie,” saysMrBoreman.“I do sometimes go down into the store,which is beautiful and modern. Onlyvery rarely, I’ve met clients. But I feel

much more comfortable up here doingmy work in the workshop and being amoreprivateperson.”

Mr Boreman is currently workingon trophies for, among others, PremierLeague Football, Aviva Rugby and theRace to Dubai golf competition. He hascreated more than 150 trophies duringalmost four decades at Asprey, some ofthemuptoametre inheight.

The workshop repairs and polishestrophies which can become damagedwhile being lifted and passed around bythe excited winners. In many tourna-ments, winners hand their trophy on

the following year, so some sports clubsor sportspeople commission replica tro-phies to keep in their showcases for pos-terity.

Mr Boreman, who works from 8amtill 5pm each day to exploit maximumdaylight, says the course he took at SirJohn Cass College both inspired him andprovided him with the foundation foreverything he still does in his work tothisday.

“I was quite restless at school andalways enjoyed working with myhands,”herecalls.

“There were five other students on

the course and we constantly gave eachother feedback, which was a powerful way to learn and helped me realise sil-versmithing would be the career forme.”

Mr Boreman typically starts each daywith a brief from Asprey’s designers.Discussions begin with a paper printoutimage of a design and a sheet of silvermetal. There are no computers in theworkshop and Mr Boreman is not a fanofemail.

He says 99 per cent of his job ishammering, or fashioning the silverinto the desired form, while ensuring

the proportions of any object are perfectfor thedesign.

“A silversmith needs an artistic sensi-tivity.Sometimes Imakeadjustments tothe original design to bring the piece tolife in the best way, perhaps wideningthe stem of a trophy, or increasing thethickness of the metal,” says Mr Bore-man. “I also work out the best way toassemble different materials together,for example, silver with lapis — should itbescrewedorweldedtogether?”

The main change Mr Boreman hasnoted over the decades is that the con-temporary items he crafts generallyhaveacleaneraestheticandtheirdesignis less intricate. Popular items at Aspreynow include aeroplane, lighthouse androcketcocktail shakersandanimalheaddecanters.

“Fashions change, but the principlesand methods of hand craftsmanshipnever do. Simpler designs are more pop-ular now, but today private commis-sions involve the most elaborate, opu-lentstyles.”

Extravagant silver commissions forroyalty are ingrained in Asprey’s his-tory. One of Mr Boreman’s most memo-rable commissions was a silver tableplated in gold which he crafted for aMiddle Eastern king to celebrate hislong reign, incorporating a built-in dockfor the king’s iPod, preset with hisfavouritemusic.

Asprey has held royal warrants as sil-versmiths awarded by Prince Edward in1920, King George VI in 1940, QueenElizabeth II from 1955 to 2007, QueenElizabeth the Queen Mother from 1961to 2007 and Prince Charles from 1982till thepresent.

In the 1920s, India’s maharaja ofPatiala ordered wooden travellingtrunks for his five wives from Asprey.Each was fitted with solid silver bathingutensils, silver soap dishes and silverbottles forpouringhotwater.

Mr Boreman is looking forward tosharing his finely honed skills with twoteenage students, who he will choosefrom the Goldsmiths Centre to join theAsprey silver workshop as apprenticesinthecomingmonths.

“The new apprentices need to have anartistic eye and lots of patience. Theyounger they are, the better they arelikelyto learn,”hesays.

Trophies, decanters and the occasional silver tableAspreyThe store’smaster silversmithBilly Boreman noteshow the principles ofhand craftsmanshipnever change, saysClaire Adler

Fine art:Billy Boremanin the AspreyworkshopCharlie Bibby ‘There is a

music to theworkshop’ssounds, thehammering,thewelding,the banter’

Turtle-Chimera Clock, Cartier 1943

China is engaged on abuilding spree of public andprivatemuseums

10 ★ FINANCIAL TIMES Monday 18 January 2016