The Oris Aquis Depth Gauge

The second and final installment of watches I missed at Basleworld but were able to see during Las Vegas Jewelry Week, deals with a specialty watch called the Aquis Depth Gauge from Oris. According to the Swiss watch brand, it is the first dive watch that measures depth by allowing water to enter the timepiece.

The company says it has applied "Boyle Mariotte Law" (which describes how the pressure of a gas tends to decrease as the volume of a gas increases) to the patented timepiece. The watch has a gray-colored channel milled into the side that runs counterclockwise around the dial, stopping between one and two o'clock. At 12 o’clock there’s a small opening. On descent, the air inside the channel is compressed by the surrounding water pressure, allowing water to enter through the opening. The edge, in light grey and dark grey, differentiates between water and compressed air on the scale around the outside of the dial, indicating depth while descending or ascending.

Besides being a cool addition to a diver’s watch, Oris says the depth gauge keeps divers safe as the indicator benefits from no inertia, so actual depth readings are seen instantly, which is useful in decompression breaks in lesser depths. It’s water-resistant to 500 meters/50 bar.

Other features of the watch include an automatic movement with a date window at 6 o’clock. The 46mm watch also comes with a waterproof case that contains interchangeable rubber and metal straps and tools.

The cost is approximately $3,200.

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UBM to Launch Jewelry Fair in Germany during Baselworld 2014

Does Baselworld have competition? Hong Kong-based tradeshow and publishing company, UBM Asia, has been coy about this but its new jewelry show in Europe will butt heads with Baselworld in 2014.

This new tradeshow called, “Jewellery & Gem Fair – Europe,” will be held April 1 – 4, 2014, in Freiburg, Germany. The dates and location line up nicely with Baselworld 2014, which will be held March 27 – April 3, 2014. Freiburg is less than an hour away from Basel, Switzerland. In fact, it’s so close that when I attended Baselworld two years ago, I stayed in Freiburg

This announcement of a new tradeshow comes after the world’s largest watch and jewelry tradeshow finished a $454.5-million upgrade to the Messe Basel complex that came with several upset vendors. In fact, the 1,460 companies who exhibited at the recently concluded Baselworld 2013 was 355 fewer than those who exhibited the prior year.

The biggest player to exit Baselworld this year was David Yurman, after what was described as “‘exasperating’ back-and-forth with the powers that be at Baselworld.” People from several companies expressed their dissatisfaction to me with their booth placement, the substantial increase in the cost of participating this year, and the pressure to construct newer, larger and more expensive booths for the show. One company, which was one of the few companies to both remain in the same space and not expand their booth, told me they still had to pay 30 percent more than the prior year.

UBM Asia is refusing to acknowledge that they are creating a competing show, calling this new fair “a comprehensive sourcing fair offering a wide range of jewelry products.” It is being positioned “as a high-efficiency, high-level face-to-face jewelry business platform to create real business value for international suppliers and buyers.”

UBM says that more than 260 exhibitors from 25 countries and regions have reserved exhibition space a year ahead of its launch. “This figure represents more than 50 percent of the expected number of exhibitors and represents 60 percent of the total exhibition space which indicates the market’s enthusiasm for this new fair in Europe,” UBM said.

Exhibitors that have signed up are from Australia, Austria, Belgium, Brazil, China, Colombia, France, Germany, Hong Kong region, India, Israel, Italy, Japan, Korea, Poland, Russia, Spain, Sri Lanka, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Zambia.

The fair is open to the jewelry trade, business professionals and members of the media. Free admission to save €30 will be granted to preregistered visitors and online preregistration opens in June 2013. 

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Baselworld’s ‘Opening Act’

Baselworld representatives at opening day press conference.

BASEL, Switzerland — Baselworld, the premiere event of the Swiss watch industry, on Wednesday unveiled the latest renovation to the multi-building complex that it calls home. The $454.5-million upgrade reflects the spectacular success of an industry that has defied the trials and tribulations of the worldwide economy and a product that has remained popular despite changing fashion and trends. It also is a response to an industry now dominated by a few luxury conglomerates.

The eight-day watch and jewelry fair actually opens Thursday. Wednesday was press day, where top officials discussed the tradeshow and the industry in general. The discussion of the new design was described as Baselworld’s “opening act” by Sylvie Ritter, managing director of the tradeshow.

While several buildings underwent dramatic change under the leadership of architects Herzog & de Meuron, most eyes are focused on Hall 1, now rebranded as the “Global Hall.” It is the main area for some of the most world-renowned watch and jewelry brands. This year, the area not only underwent dramatic structural change, but occupants changed as well. Several brands (mostly independent) were moved to other areas of the complex. Now brands represented by global conglomerates Swatch Group and LVMH far outnumber independent brands. These include Hublot, Tag Heuer, Breguet and Bulgari.

Independent brands that remain in Hall 1 include Patek Philippe, Rolex, and Ulysse Nardin.

René Kamm, CEO of MCH Group, which operates the Basel fairgrounds (Messe Basel), explained that the redesigned hall is reserved for “watch and jewelry brands that have a global impact and a worldwide reach.”

Speakers put on a unified front and spent a great of deal of time thanking exhibitors. However, change this dramatic does not come easy and several exhibitors who have lost their space in Hall 1 were not happy (although refusing to voice their displeasure publicly).

All of this change also came at a price. Several brand executives told me (or refused to dispute) that exhibiting in Hall 1—which includes the construction of multi-story, elaborate temporary showrooms that also have been upgraded this year—now costs upwards of $5 million.

Jacques J. Duchêne, president of the Baselworld Exhibitors’ Committee, said it is the domination of luxury conglomerates that has led to the changes at Baselworld.

“In the course of the past 15 years, the watch and jewelry industry has been through a consolidation process on a scale never witnessed before, and this has also had its effects on the challenges faced by production and marketing, which have changed radically,” Duchêne said. “Now it is a good thing to take note of changes and to adjust to them, but it is even better still to anticipate needs and to be in a position to satisfy them without delay when they arise.”

The price hike and the pressure to create more elaborate booths were also felt among exhibitors who don’t have the deep pockets of the brands in Hall 1. A few companies actually pulled out of the show. Perhaps seeing an opportunity, Hong Kong-based tradeshow and publishing company, UBM Asia, will open its first tradeshow in the European market next year in nearby Freiburg, Germany, with dates that overlap Baselworld.

 

The international press at the opening of Baselworld

But even though some are a bit disgruntled, the 1,460 companies from 40 countries exhibiting recognize the importance of being there in terms of sheer numbers, glamour and international attention. Many brands will bring international celebrities along to help present their new products. More than 3,500 journalists from 70 countries will be covering the event and approximately 100,000 people will attend.

The show is also buoyed by the amazing success of the Swiss watch industry. In 2012, the industry has produced another record year with exports totaling 21.4 billion Swiss francs ($22.6 billion), a 10.9 percent increase over 2011.

“Today, it is thanks to this excellent state of health of the industry that we are able to present the show to you in its attractive new look,” Duchêne said. 

 Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Is Hublot’s New Red Gold Watch Actually Red Gold?

Hublot's Big Bang Caviar Red Gold Diamonds ladies watch

For Hublot’s Baselworld preview, the Swiss luxury watch brand released images of its “5N red gold” Big Bang Caviar ladies watch, featuring a bezel set with 36 diamonds. As you can see in the picture it is quite a beauty. However, I have a bit of a dilemma that I will get to the bottom of eventually.

From my understanding of the different colors of gold, 5N refers to rose-colored gold, while 6N refers to red gold. Pink gold is usually 3N and 4N gold. The colors are based on the types of metals that are mixed with pure gold. Usually 18k gold, which I am assuming this watch contains although the materials don’t clearly state this, is mixed with cooper to make it red. Red gold can be made with 75 percent yellow gold and 25 percent cooper. However, I believe this is usually labeled as 5N gold, which refers to rose gold.

Anyone who has an answer is welcome to respond. I will ask Hublot when I get the chance. I’m sure there’s a simple explanation.

Now for the rest of story behind this watch. It’s based on the design of Hublot’s famous One Million $ Black Caviar, and directly inspired by the black ceramic Big Bang Black Caviar, which has been one of the brand's bestsellers since 2011. The 41mm watch has a sleek, graphic look with sharp angles and reliefs designed, cut, beveled and polished to look like the black baguette diamonds on the Caviar watch.

It's fitted with the HUB1112 self-winding mechanical movement. The 5N gold dial has a date window at 3 o'clock. It has a power reserve of 42 hours. The strap is made of either shiny silver or 5N gold colored calfskin sewn onto black rubber.

The timepiece also is available in a steel version, with 36 diamonds on the bezel and the same size, movement, look and workmanship as the “red” model. 

 Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Will New Jewelry Show Compete With Baselworld?

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Wolfram Diener (center) reading a prepared statement during a press conference at the September Hong Kong Jewellery & Gem Fair. Photo credit: Anthony DeMarco

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HONG KONG — The competition among the numerous jewelry tradeshows around the world is fierce. So when a new show appears on the international calendar, one can’t hope but notice which show will it be competing against.

UBM Asia has announced that it is entering the European market with Jewellery & Gem Fair – JGF Europe 2014, to be held in April 1 - 4, 2014 at the Messe Freiburg Exhibition and Convention Centre in Freiburg, Germany.

Wolfram Diener, senior VP, UBM Asia, Ltd., who made the announcement Thursday during a press conference at the September Hong KongJewellery & Gem Fair, made it a point to note its convenience to major jewelry trading hubs, such as Antwerp, Paris and Vicenza. What it’s really close to in both timing and distance is Baselworld, the world’s largest and most important watch and jewelry fair held in Basel, Switzerland. The two cities are so close that I stayed in Freiburg two years ago while attending Baselworld.

Diener downplayed that the new tradeshow will compete with Baselworld for exhibitors and buyers.

“It wouldn’t be our notion to rely on any other exhibitions for our success and lack of success and we expect that we can draw exhibitors or buyers from another show,” he said. “I think we have to build our own success. As for the timing of the event, it’s really difficult with a full calendar of jewelry tradeshows to not clash or be close to any other shows.”

However, a UBM official told me afterward that JGF Europe is most likely positioned to indeed compete with Baselworld. If this is true, then it will be the battle of titans. The September Hong Kong Jewellery & Gem Fair, which UBM owns, is the largest fine jewelry tradeshow in the world. However, as already noted, Baselworld is the largest watch and jewelry show in the world. It is also the world’s most prestigious tradeshow and it is where trends are set in the watch and jewelry world each year.

One thing that the new show will not be involved with, at least at this time, is watches, which is the lifeblood of Baselworld.

There are plenty of jewelry trade fairs in Europe but Diener says that the continent lacks “a real and comprehensive sourcing fair.” This new show is an attempt to fill this void.

“JGF Europe is positioned as high efficiency, high level, face-to-face jewelry business platform that will create real business value for the international suppliers and buyers,” he said. “It’s going to be a comprehensive jewelry show with jewelry, raw material and packaging and equipment”, he said. “It’s going to be a good balance of European and non-European exhibitors. That will be refreshingly different from other shows in Europe.”

Please join me on the Jewelry News Network Facebook Page and on Twitter  @JewelryNewsNet.

Baselworld 2012 Closes with Strong Results, Upbeat and Confident

Business was brisk at Baselworld 2012 and the attitude of both exhibitors and buyers was upbeat and confident.

A fractured arm kept me from attending Baselworld this year Fortunately, veteran watch journalist, William George Shuster, kindly agreed to take time from his busy schedule to write a few stories from the tradeshow. Below is his fourth and final report.

By William George Shuster
Special Correspondent

BASEL, Switzerland — The just-ended Baselworld 2012, the world’s most important and largest watch and jewelry tradeshow, was one of the most successful in its history.

The eight-day show closed March 15 with a 1 percent rise in attendance (to 104,300, its second-highest attendance ever); a 9 percent gain (3,320) in the international press corps at the show; and almost universal satisfaction among vendors—especially those in the luxury sector—with the business, orders and contacts they had; and widespread confidence among retail buyers.

"It was a fascinating week, and truly a good year for us exhibitors. We are highly satisfied,” said Jacques J. Duchêne, long-time chairman of the show’s Exhibitors' Committee. Francois Thiébaud, president of the Swiss Exhibitors Committee, agreed, calling the show a "complete success."

Positive comments. Indeed, this year’s edition of the annual watch and jewelry trade fair on the Rhine in Basel, Switzerland, evoked positive comments from most vendors, both large and small.

Swiss luxury sport brand TAG Heuer, for example, welcomed 30 percent more retailers than last year. It also introduced movie star Cameron Diaz as its new brand ambassador. Luxury watch Hublot—which unveiled its one-of-a-kind $5 million diamond-encrusted timepiece--took “considerably more orders than in [2011],” said CEO Ricardo Guadalupe. At Swiss watchmaker Ellicott, “Response to our new watches—especially the world’s thinnest minute repeater with perpetual calendar (hand-wound)—was very good,” said CEO Pierre-Andre Finazzi to the show’s newspaper, “and price points and units per order are more than last year.”

Despite economic problems in Europe, the U.S. and many other regions of the world, an upbeat business attitude pervaded the fair’s buying and selling. Luxury watch brand Patek Phillippe, for example, noted “an exceedingly positive mood amongst our customers throughout the entire show,” said Jasmine Steel, international communications director, while at the Bulova Corp. stand, “People are excited about our groundbreaking products and technologies,” said Harvey Kaplan, regional vice president. “Business is hot,” declared Jacques-Philippe Auriol, CEO of TechnoMarine watches, to the show’s daily newspaper. “The booth is packed and clients are smiling.”

At Seiko, “sales are much better than expected, and there’s great interest in our new Astron GPS watch,” said Karou Matsumoto, public relations general manager. “Customers are cautiously optimistic, and we share their optimism.”

‘Gratifying’ business. In the Hong Kong delegation of vendors, the show’s second largest, “Purchasing behavior was gratifying and the potential in the boom markets, including Russia and Latin America, highly promising,” said Ralph Chow, director of product promotion for the Hong Kong Trade Development Council.

Gem dealers and vendors of technology and equipment, too, were generally upbeat about business result, as were jewelry firms. The German precious gem house of Groh + Ripp, for example, surpassed 2011’s good results by 25 percent. “The quality of the visitors was exceedingly good,” added Managing Director Bernd Willy Ripp. At Spanish jewelry firm Carrera y Carrera, “For the first time in three years, we don’t hear about the [financial] crisis,” CEO Nathalie Guedj told the BaselWolrd Daily News. “That reflects the very good business the jewelry industry did in 2011. People are confident about the future.”

The Swiss watch delegation was especially pleased. Following a record-breaking year in exports in 2011 (29.8 million watches, valued at 19.3 billion Swiss francs, or about $21 billion), its strong results for Baselworld 2012—driven in lager part by ongoing, growing demand for luxury products, especially in Asia, and China particularly, and “certain emerging markets”—promise another good year for Swiss watchmakers. “While it is always difficult to anticipate results,” said the Swiss Exhibitors Committee’s closing report. “This 40th edition [of Baselworld] augurs well for positive progress in 2012. The 20 billion franc export threshold should be easily crossed and thereby represent the third consecutive growth year [in 2012].”

The enhanced interest by the global media in the show’s news and trends and the sizeable increase in journalists covering the show was especially important to both vendors and show officials. It indicates the importance the show has gained with the global press, and “For exhibitors, the worldwide reports in the specialist, daily, business and lifestyle media, as well as in the online media, TV and radio, are of major importance,” noted Baselworld’s closing report. Luxury watchmaker Patek Philippe, for example, received over 800 journalists at it stand, “a considerable increase over previous years,” noted spokesperson Jasmina Steele.

A new era. For the 104,300 visits from 100-plus nations and the 1,851 vendors from 41 countries, this was the last time they would work in the current exhibition stands or rush hurriedly through its halls. But many said they were already looking forward to what show officials call show’s “new era” starting in 2013.

The show’s owner, MCH Group, is revamping the current Exhibition Square and its surrounding buildings, with an immense makeover valued at just under half-a-billion dollars. The expensive and extensive transformation—including two new three-story building, a two-building above the formerly outside Exhibition Square, a new events hall, and the tearing down of some of the show’s older buildings—transformation is being handled by Basel-based architects Herzog & de Meuron, who also designed the famous Bird’s Nest national stadium in Beijing. The new complex will have 141,000 m2.

Show Director Sylvia Ritter admitted to “a certain amount of nostalgia” for the current buildings sand fair grounds, which will be gone in weeks. “At the same time, I am looking forward impatiently and with great expectations to the new era that will be dawning for this world show,” she said.

The new complex, opening in April 2013, will also involve the relocation of many watch exhibitors in the current Hall 1 and the spending of millions of dollars by exhibitors on new exhibition booths and presentations. “Nearly all the brands will now be investing in their new stands for Baselworld 2013,” said Duchene. “This highlights the fact that we have a great deal of confidence in this [trade show] event, because [it] will be giving us exhibitors even more opportunities to experience positive developments in future."

The next show, Baselworld 2013, will be held April 25 – May 2, 2013.

William George Shuster is a multi-award winning writer—including three Jesse H. Neal Award, business journalism's highest honor. He has 40 years experience as a journalist, author and editor. He is considered one of the world’s top watch industry journalists, covering the world of timepieces for the past 30 years.

Baselworld 2012: End of an Era; Baselworld 2013: A new era begins

Inside Hall 1, the Hall of Dreams, where all the major watch brands at Baselworld 2012 are located. There will be changes among the exhibitors.

A fractured arm kept me from attending Baselworld this year. Fortunately, I know some of the best writers and experts in the jewelry and watch industry. One of those folks is William George Shuster who has kindly agreed to take time from his busy schedule to write a few stories from the tradeshow. Below is his third report.

By William George Shuster
Special Correspondent

Baselworld 2012, the 40th annual edition of the world’s largest and most important watch and jewelry show, may be its most successful yet.

But it also marks the end of an era for the trade fair. Indeed, there was a sense of finality about Baselworld 2012 that had nothing to do with business.

The reason: An enormous and costly restructuring of trade fair buildings and a redesign and revamping of Exhibition Square, the outdoor center of the fair, so total that international visitors and exhibitors from next year onward will not recognize the long-time fair site.

Indeed, Sylvie Ritter, the show director, called Baselworld 2012, a “milestone in the history of our trade show” and “a decisive turning point” before the “start of a new era” in 2013.

This newest modernization in a long history of renovations and expansions of the Basel fairgrounds is scheduled to finished and ready for the 41st edition of Baselworld in April 2013.

Trade show facilities that have housed the annual Baselworld and earlier Swiss watch and jewelry fair for much of the 20th and early 21st centuries are being torn down and replaced with massive new, three-story structures, costing millions of dollars. Show officials promise this enormous undertaking, the most extensive modernization and expansion of the show facilities in its history, will benefit both visitors and exhibitors immensely.

“With investments of around 430 million Swiss francs ($460 million), we will be able to provide our exhibitors, our trade visitors and our journalists with a fantastic trade show infrastructure,” said René Kamm, CEO MCH Group.

The 95-year-old Hall 1, site of  major watch brand exhibitors and the fair ground’s oldest building, will be rebuilt, with its front dismantled, and extended into the exhibition square by a three strew building. Hall 3, across the street (site for gemstone and equipment exhibitors) is being torn down and replaced also with a new three story complex, with a multifunctional event hall (capable of holding up to 2,500 people) on the ground floor. Linking these two buildings will be linked by a two-story complex (starting the second floor level of Hall One, roofing over exhibition square. The exhibition square (pictured left) itself will become a large atrium, open to the public and the trams which will continue to regularly ride through it.

The new complex will have a total of 141,000 square meters and will “ensure a greater level of convenience for our visitors,” says a show report. The final outcome is going to do justice to the expectations of our exhibitors,” says Jacquares Diichene, trade show chairman.

Also changing will be the locations of many exhibitors, especially those watch vendors on the first floor in Hall 1. And members of the Hong Kong exhibitors pavilion, the show’s second largest, will be moving from Hall 6 to Hall 4.

William George Shuster is a multi-award winning writer—including three Jesse H. Neal Award, business journalism's highest honor. He has 40 years experience as a journalist, author and editor. He is considered one of the world’s top watch industry journalists, covering the world of timepieces for the past 30 years.

Baselworld 2012 is a Smorgasbord of Horological Delights

Seiko’s Astron GPS Solar watch

A fractured arm kept me from attending Baselworld this year. Fortunately, I know some of the best writers and experts in the jewelry and watch industry. One of those folks is William George Shuster who has kindly agreed to take time from his busy schedule to write a few stories from the tradeshow. Below is his second report.

By William George Shuster
Special Correspondent

BASEL, Switzerland — Baselworld, the world’s largest watch and jewelry trade fair is like an annual smorgasbord for watch enthusiasts, offering up everything from popularly-priced mass market watches to exquisite haute horlogerie timepieces and the 40th annual edition of this ever-expanding trade event (which runs until March 15), is no exception.

Travelers’ tool. A number of new models cater impressively to world and business travelers.

One standout is Seiko’s new Astron GPS Solar watch (top picture), presented with great flourish at the fair by Japan-based Seiko Watch Co., one of the world’s largest watchmakers. The impressive timepiece, powered by solar cells in the dial eliminating the need for batteries, can adjust itself to the time and location of the world’s 39 time zones at the gentle push of a button, thanks to signals from at least four GPS satellites, which the watch is always in contact. It is the first timepiece able to adapt immediately to all of the world’s time zones, wherever the wearer travels. That’s why Seiko calls it “the first global watch.”

Another notable timepiece in this category is Rolex’s new Oyster Perpetual Sky Dweller chronometer. The timepiece has a dual-time zone and an off-center innovative 24-hour display operated and adjusted by the watch’s bezel. It also has an annual calendar (the first Rolex watch to have one), uses a new movement and is the start of a new Rolex family.

Exquisite masterpiece. Meanwhile, German luxury watchmaker Glashütte Original, known for mechanical masterpieces, unveiled an exquisite masterpiece. Its limited edition Grande Cosmopolite Tourbillon is a world-first for world travelers, claims the company, and the “most unusual and sophisticated masterpiece in [our] history.” The complicated marvel lets a global traveler track the time of day or night simultaneously at home and while on the road in any two of the 37 world time zones. It accounts correctly for Daylight Saving Time or Standard Time, and can travel forward ‘time wise’ (Eastward) or backward (Westward). All time and date changes made by the wearer are displayed by a perpetual calendar geared to do so.

Completing this unique combination of horological complications—a world-first for mechanical watches, says the company—is a flying minute tourbillion (developed in 1920 in Glashütte). One interesting side effect: Its dial design looks like a “winking” happy face due to the placement of its day, month and day/night sundials.

If you want it, however, act quickly: The 43mm platinum timepiece is limited to 25 pieces worldwide and costs 325,000 Euros ($426,500).

Hublot $5 million watch

Of course, that’s chicken feed compared to the world’s most-expensive watch unveiled at Basel: The “Hublot $5 Million,” created by the innovative Swiss luxury watch brand. Also a world first, the 44mm mechanical timepiece is covered with 1,282 diamonds, weighing more than 100 carats, including six square stones, each more than three carats. It took one year to select the stones, and another 14 months to create the watch. Why did Hublot make it? Because it can.

Innovation & fun. The focus isn’t all on travelers watches, quartz-based technology or example of craftsmen’s art. Many of the watch business’s technological innovations in recent years have involved watches with mechanical movements (both hand-wound and self-winding). One notable at BaselWorld is Swiss watchmaker Ellicott’s tribute to John Ellicott, a 17th century English watchmaker. The watch is the world’s thinnest minute repeater with perpetual calendar, with a hand-wind mechanical movement measuring in at just a wispy 5.1mm.

Ritmo Mundo’s Reflex

And watches can be just plain fun, too. Ritmo Mundo’s Reflex ($150) is inspired by the “slap bracelet” from childhood. Gently tap the futuristic tongue-shaped timepiece against a wrist and the snap curl design, in brightly-colored smooth silicone immediately wraps around it, whatever the size. Its parallel-line LED digital linear display shows time and date, with numbered dots that immediately light up.

Star gazing. If BaselWorld is like a horological smorgasbord, it is also—pardon the abrupt shift in metaphor—a stage for many of the world’s celebrities,

BaselWorld isn’t only the center of the globe’s watch and jewelry business for a week. It is also a magnetic for celebrities. Among those seen during the show’s first days were international movie star, former U.S. governor and avid watch collector Arnold Schwarzenegger (stopping by to say hello to his friend Ali Soltani, owner of Ritmo Mundo watches); tennis champion Roger Federer (a Basel native) for luxury watch brand Rolex; and movie actress Cameron Diaz, brand ambassador for TAG Heuer Swiss luxury sport watches.

Also smiling prettily for their fans were Melinda Bam, Miss South Africa (brand ambassador for Jet Set watches); Alina Buchschacher Miss Switzerland (brand ambassador for Balman watches); and Justine De Jonckheere, Miss Belgium 2011, visited the show’s gemstone halls.

William George Shuster is a multi-award winning writer—including three Jesse H. Neal Award, business journalism's highest honor. He has 40 years experience as a journalist, author and editor. He is considered one of the world’s top watch industry journalists, covering the world of timepieces for the past 30 years.

An Up Close View of Hublot's $5 Million Watch

Swiss luxury watch brand Hublot unveiled a diamond-covered $5 million timepiece Wednesday at Baselworld—the world’s largest and most important watch and jewelry fair, in Basel, Switzerland. The company released professionally photographed images of the timepiece Friday.

The watch is covered with 1,282 diamonds, including six square stones that weigh more than three carats each, according to media reports. Jean-Claude Biver, Hublot president, said it will be difficult to make a more expensive timepiece because of the size limitations on the surface of a watch.

The company said in a statement that “a completely different approach was used for its creation.” Normally, the design and technical characteristics of a haute joaillerie piece are created to match the gemstones that were selected. For the making of this timepiece, the diamond cutters started with a design and then found the diamonds that best matched the construction of the case, dial and bracelet.

“Cutters and setters then employed all of their expertise to resize them to ensure a perfect fit,” Hublot said.

Cautious Optimism Fills Baselworld Buoyed by Asian Demand for Luxury

A fractured arm kept me from attending Baselworld this year. Fortunately, I know some of the best writers and experts in the jewelry and watch industry. One of those folks is William George Shuster who has kindly agreed to take time from his busy schedule to write a few stories from the tradeshow. Below is his first report from the event.

By William George Shuster
Special Correspondent

BASEL, Switzerland – Baselworld, the world’s largest and most important watch and jewelry trade show, opened March 8 amid optimistic expectations by many for good business in 2012—but not too optimistic.

“We’re confident about 2012” because of strong business results in 2011, especially in luxury due to China’s appetite for it,” said Francois Thiebaud, chairman of the show’s Swiss exhibitors and president of upscale watch brand Tissot, echoing many vendors, “but we’re not overconfident. The Eurozone crisis and debt problems elsewhere could still have effects [on business].”

This 40th annual BaselWorld fair, in Basel, Switzerland, Mar. 8 – 15, has 1,815 exhibitors (608 in watches, 689 in jewelry and 518 in related products and services) from 41 countries. More than 100,000 buyers and visitors from 100 countries are coming, and all is being reported on by more than 3,000 print, TV, radio and Internet journalists from around the globe.

The reason for their interest is obvious: Because Baselworld is, in the words of Show Director Sylvie Ritter, “a microcosm, where the players from the world’s watch and jewelry industry gather for a week.” It is an important bellwether of products, innovations and trends affecting the industry, consumers, and the retail business worldwide for year ahead.

Bullish. The cautiously bullish mood among exhibitors and analysts at the show is based on strong—even record-breaking—results for watch and jewelry exports and sales in 2011, especially in the luxury sector. That’s due largely to sharply rising consumer demand in Asia, especially China, say industry analysts in Basel. These strong business statistics for 2011 came despite many economic problems affecting sales and profits worldwide, they say, including the dramatic debt crisis in many Eurozone countries, the uncertain U.S. economy and the strong Swiss franc (which weaken Swiss watchmakers’ profits). Still, “[even] in this far-from-encouraging environment,” said Jacques J. Duchêne, long-time President of the Show Exhibitors’ Committee and former Rolex SA executive, at the annual pre-show press conference, “one industry has been able to stand up well and even break numerous records—the watch and jewelry industry.”

Indeed, it has. The year 2011 was “historic,” as Duchene put it, for the Swiss watch industry. Their exports totaled 19.3 billion Swiss francs (about $21 billion), an increase of 19.2 percent, making it the best year ever in the industry’s history—rebounding from its worst in 2009. Actual pieces exported were just under 30 million.

Unquenchable. Much of that was led by the seemingly unquenchable demand in Asia for fine watches: Over half (55 percent) of the Swiss exports went to Asia, primarily China, up 48.7 percent. (North America got 14 percent while Europe got 29 percent).

Duchene was quick to point out, however, that the Swiss success is not only due to the Far East. “It’s true demand was very buoyant in Asia,” he said, “but the watch industry has built up a good reputation in all emerging countries and succeeded in creating demand, especially in the luxury-products segment.”

So, “even in the face of a rather unfavourable economic environment, we envisage export growth in 2012,” Duchene said.

The Swiss aren’t the only ones feeling bullish about 2012. Spokesmen for the German, French, Italian, Israeli and Hong Kong delegations (the latter, being the show’s second-largest) also report good sales and export results in both watches and jewelry in 2012, despite the economic challenges, again especially in the luxury sector (and again, buoyed by record Chinese consumer consumption of revelry and watches). They too were upbeat about business results for the industry in 2012. As Gaetano Calvalieri, president of The World Jewellery Confederation (CIBJO) and spokesman for the Italian delegation, noted, “consumers in Asia, especially China, will carry Italian jewelry industry to new heights.”

Even if Chinese consumption slows slightly in 2012, as some reports suggest, “Even a one digit increase in demand this year is more than last year,” said Thiebaud.

"Excellent.” Those in the gem and diamond business also expressed upbeat predictions for 2012.

Eli Avidar, Managing Director of the Israel Diamond Institute Group of Companies, told its annual Baselworld luncheon that 2011 was “an excellent year” for the Israeli diamond industry, which exported $7.2 billion of polished diamond, and has “emerged from the crisis [of the 2008/2009 recession] stronger.” Again, some of this is due to Asia. “There is a steady rise in demand for large diamonds in China and we believe it will go much further,” especially is the international industry invests significantly in promoting diamonds and diamond jewelry in China. He also noted that there are “signs of recovery in the U.S. economy”—unlike Europe, where was no visible increase in diamond demand in 2001 or 2012—and we expect significant rise in demand in diamond jewelry in the U.S. this year.”

William George Shuster is a multi-award winning writer—including three Jesse H. Neal Award, business journalism's highest honor. He has 40 years experience as a journalist, author and editor. He is considered one of the world’s top watch industry journalists, covering the world of timepieces for the past 30 years.