It is no secret that today s prestige watchmaking business is a far cry from the charming cottage industry of yesteryear. After a decade of multimillion-dollar acquisitions and consolidation, luxury conglomerates now control an estimated 80 percent of the Swiss watch industry, including many of its oldest, most venerated brands. With the exception of purists and fanatics, most people are neither aware nor concerned that corporate entities such as Richemont and Swatch Group actually are behind many of the familiar brands identified on the dials. Still, the mergers and acquisitions of the past decade have sparked a renaissance among independent companies and artisans, who are defying the odds not only to survive but thrive.
Certainly Patek Philippe, Girard-Perregaux, Audemars Piguet, Chopard, and industry giant Rolex have only enhanced their prestige by remaining stalwartly independent. In recent years, several have rebuffed enticements to cash in and huddle under the security of corporate umbrellas. "It s a personal attitude I am mentally independent," says Dr. Luigi (Gino) Macaluso, president and CEO of Sowind Groupe S.A., whoalso serves as president and CEO of Sowind s JeanRichard and Girard-Perregaux brands and Sowind Manufacture, which supplies movements to other companies. Macaluso, who declined what he calls an "astonishing offer" in 2000, says he could not abide with being folded into a huge corporation and relinquishing his control to a board of directors. "This is a family business," he says. "We want to control everything. We re concentrated on long-term goals. Management decisions are not based on monthly performance reports."
Despite their prominent status, even the most successful independents now must concentrate equally on protecting their resources and making long-term capital investments to preserve their leadership positions in a marketplace dominated by behemoths. For smaller independents and individual artisans, however, the struggle takes on a David-versus-Goliath proportion. To carve out their niches in the market, these little guys must be highly resourceful in developing partnerships and strategies that allow them to continue to produce inspired timepieces incorporating the intangible element of soul.
Today, the conglomerates richemont and Swatch Group dominate luxury watchmaking, with Richemont owning Cartier, Vacheron Constantin, Jaeger-LeCoultre, and many others, and Swatch Group s holdings including Blancpain, Breguet, and Glash tte Original. Swatch also owns the industry s most important movement suppliers. A number of other smaller groups own a handful of brands each. In a capital-intensive industry, these groups hold advantages over smaller, independent companies because of their ability to invest in high-tech industrial facilities, human resources, and worldwide marketing and distribution.
Corporate ownership does not necessarily impugn the quality of replica chanel watches a watch. In fact, many brands are experiencing unprecedented prosperity, now that they have access to the resources of a major holding corporation. Thanks to Richemont s deep pockets, Piaget and Vacheron Constantin have created impressive new manufacturing facilities, while others such as Breguet, Jaeger-LeCoultre, and IWC are releasing some of their most innovative and well-conceived watches in years. But despite the advantages of economies of scale, some collectors are becoming disenchanted with the increasing industrialization of a craft they hold dear.
