Swatch Group Reports Record Sales

Swatch Times Square store.

Swatch Group saw its 2011 gross sales increase 21.7 percent, year-over-year, to 7.14 billion Swiss francs ($7.5 billion) with December 2011 posting the strongest month in sales in company history.

The world’s largest watchmaker shrugged off the impact of the strong Swiss franc, which negatively affected sales by 10.8 percent. “Despite this extremely negative currency effect, sales in CHF increased by an impressive 10.9 percent over the previous record year 2010,” the company said.

The company also noted that “despite enormous pressure on margins due to the catastrophic currency situation,” it expects 2012 to be another good year for operating profit and net income.

Swatch’s Watches & Jewelry segment recorded an increase in sales of 26.1 percent at constant rates to 6.312 billion Swiss francs ($6.65 billion). Greater China was a very strong market bu the company said it “experienced significant growth” in all regions and price segments. “Investment in retail activities as well as numerous marketing offensives throughout the world contributed to these gratifying sales figures,” the company said.

The brand’s Production segment, where it provides watch components to other watch companies, reported a 32.6 percent increase in sales to 2.015 billion Swiss francs ($2.12 billion) due to “an enormous increase in demand for all types of components. Despite an expansion of production capacity, there were and still are major production bottlenecks,” the company reported.

The Electronics Systems segment mainly felt the effects of the overvalued Swiss franc against the US Dollar and the downtrend in certain key markets. Gross sales fell 16.3 percent to 336 million Swiss francs ($354.1 million).

“Despite the strongly negative currency impact during the course of the year and our traditionally defensive policy concerning price increases, Group Management expects good results for operating profit and net income,” the company said in its report. “The Swatch Group is confident of again generating qualitative growth in 2012, despite the ever more challenging comparison basis.”

Fabergé's Eggcelent Easter Hunt

Tom Parker Bowles stands among the fiberglass eggs that will be painted and hidden throughout London.

Fabergé is taking over London, turning the center of the city into a hiding place for 200 massive, elaborately decorated Easter eggs. The eggs will be strategically placed throughout the capital and entrants will have the 40 days and nights of Lent—starting on Shrove Tuesday, February 12, 2012—to hunt down as many eggs as possible.

The promotion is naturally called “The Fabergé Big Egg Hunt.” The luxury brand is using the event to raise up to £2 million ($3.1 million) for Action for Children, a leading children’s charity, and Elephant Family, the UK’s biggest funder for the endangered Asian elephant (£1 million for each charity).

The two-and-a-half foot fiberglass eggs will be exclusively adorned and decorated by some of the world’s leading artists, architects, jewelers and designers including the Chapman Brothers, Vivienne Westwood, Giles Deacon, Zandra Rhodes,Diane Von Furstenberg, Sophie Dahl, Rob Ryan, William Curley, Bompas and Parr and Polly Morgan. The eggs, which are destined to become highly collectible works of art, will be available to buy once the hunt is over at three specially arranged auctions, with proceeds from the sales going to Action for Children and Elephant Family. The jewel in the crown of this auction will be an exclusively designed jeweled egg pendant by Fabergé, in collaboration with Nicky Haslam. All proceeds from the sales will go toward the two charities.

In addition, the event is an attempt to set the Guinness World Record for the biggest Easter egg hunt. It also serves as a promotion for the newly opened Fabergé boutique, the first time in a nearly a century that the brand had a store in London.

The event was launched in November at The Goring luxury hotel dining room, with a culinary creation commissioned by Fabergé, billed as the world’s most “eggsclusive” breakfast— smoked salmon, scrambled Burford Brown eggs, quail’s egg, lobster, and caviar. The dish will be added to the menu at The Goring Hotel throughout the duration of The Fabergé Big Egg Hunt. Below is a video of event, hosted by British food writer and broadcaster, Tom Parker Bowles, and with commentary from charity representatives, participating artists and Fabergé officials.

Jean Claude Biver Resigns as Hublot CEO

Jean Claude Biver and Ricardo Guadalupe

Jean Claude Biver, one of the most influential persons in the Swiss watch industry, is stepping down as CEO of Hublot. 

He is being replaced as CEO by Ricardo Guadalupe, former Hublot managing director and personal friend of Biver with whom he has been working with for nearly 20 years. The change became effective January 1.

The company in a statement said the move was planned “a long time ago in consideration of Mr. Guadalupe’s significant and instrumental achievements together with Mr. Jean Claude Biver since joining Hublot in 2005.”

Biver, who is credited with turning Hublot into one of the world’s most successful Swiss luxury watch brands will continue to serve as Hublot’s board chairman, and will continue to provide input into the company’s business strategy and product development. As the official spokesperson of Hublot, Biver will also coordinate communications activities.

In a brief statement, Biver said: “There is a time for learning, a time for doing, a time for handing over, and a time for moving on. I’ve happily made it safe and sound to the hand-over stage. With the gratification of being able to hand over to a friend and colleague of more than twenty years. And happiness at the prospect of remaining part of the team on matters relating to strategy, products and corporate relations.”

Biver along with the late Nicolas Hayek, co-founder, CEO and board chairman of Swatch, are credited with saving the Swiss watch industry from the quartz movement. Biver joined Hublot as CEO and board member in 2004.  Following a fivefold increase in sales from 2004 to 2007, the brand was purchased by LMVH in 2008 . Even in the late-2000s recession, Hublot was considered to be successful, with sales down 15 percent up to November 2009 compared with 30 percent for the entire Swiss luxury watch business. Biver on Friday told Reuters that sales at Hublot  grew around 30 percent in 2011--above the industry average--with Swiss watch exports up around 22-24 percent, but the year ahead will be more challenging.

Biver retained the brand's exclusivity through methods such as restricting supply in the face of large demand, citing that "people want exclusivity, so you must always keep the customer hungry and frustrated," he said in a 2009 interview with the Economist.

Prior to Hublot, Biver had very successful stints leading watch brands Blancpain and Omega.

Bédos to Lead Birks & Mayors

Jean-Christophe Bédos

Jean-Christophe Bédos, the former head of the international jewelry house, Boucheron, has been named Birks & Mayors president & CEO. He will replace Thomas A. Andruskevich who announced in September 2011 that he would be leaving the company in the spring.

Bédos, who is already on the job, will spend his first three months with the company as its chief operating officer, reporting jointly to Andruskevich and Lorenzo Rossi di Montelera, chairman of the Board, to allow for a smooth transition. Bédos will assume the role of the company’s president and CEO on April 1. Birks & Mayors is a luxury jewelry retailer with 61 stores in Canada and the United States. Its headquarters is in Montreal.

“His experience as president of one of the world’s most prestigious luxury brands and his extensive knowledge of the luxury jewelry and timepiece industry will be key assets for Birks & Mayors as it continues the development of the Birks product brand and pursues international expansion,” Montelera, said.

Bédos was president and CEO of the Parisian luxury jewelry house, Boucheron Intl., from May 2004 till June 2011. In addition, to maintaining and enhancing the strong presence of the brand, he was an early adapter to marketing the brand and selling its well-crafted luxury products online, as he explained in 2010 during a panel discussion during the FT Business of Luxury Summit.

Previously, he was the managing director of Cartier France from 2002 to 2004, and international executive manager alongside the president of Richemont Intl. from 2000 to 2002. Bédos started his career in the jewelry industry at Cartier in 1988. He holds a Master of Science in Management from the London Business School, a LLB in International Law from Université Paris I Sorbonne, a BA (Honors) in European Business from Trent University, Nottingham and a Bachelor of Arts, European Business, from Toulouse Business School. Bédos will be based at the company’s head office in Montreal, Canada.

GIA Offers iPad Apps for Consumers and Jewelers

It’s a new year and the Gemological Institute of America—the education, laboratory and research organization that invented the 4Cs—has iPad apps that are designed to enhance the jewelry and gemstone buying and selling experience for consumers and retailers.

GIA’s newest app is just for retailers and designed to use at the point-of-sale (top image). It provides interactive 4Cs education that retailers can show consumers, guidance on using GIA grading scales, information on diamond treatments and access to GIA grading reports. Follow this link to learn how to download the app.

An iPad app for consumers was introduced in November and provides in depth 4Cs education, how to read a diamond grading report and information on various diamond treatments.