As the Watches and Wonders fair opened in Geneva on Monday, Richemont’s top management talked about the collapse of Switzerland’s second largest bank, China’s reopening and what’s driving Gen Z.
The collapse of Crédit Suisse, Switzerland’s second largest bank, which was rescued and forced to merge with UBS earlier in March, didn’t spoil the party at Watches and Wonders in Geneva. Asked about its exposure to the bank, CFO of Swiss luxury conglomerate Richemont Burkhart Grund said at a press briefing on the opening day of the fair: “Zero exposure, zero impact on the way we operate,” adding: “Obviously, it’s a loss for Switzerland [where Richemont employs 11,000 people].”
The watch industry's largest fair (formerly known as Salon International de la Haute Horlogerie or SIHH) opened on Monday and runs until 2 April, expecting 48,000 visitors — more than doubling last year’s attendance. It marks the first edition since Cartier owner Richemont joined forces with Patek Philippe and Rolex in establishing the Watches and Wonders Geneva Foundation, whose mission is to promote watchmaking excellence through exhibitions in the Swiss city and elsewhere. In terms of scope, Richemont group CEO Jérôme Lambert said the only limitation was hotel capacity in Geneva.
Eyes are on the watch industry. Swiss watch exports were up 12.2 per cent in February 2023 to 2.2 billion Swiss francs (€2.2 billion), according to the Federation of the Swiss Watch Industry. (LVMH-owned Tiffany & Co. is expected to come back to watches soon, having poached Chanel’s global head of horology Nicolas Beau in 2021.) Among topics discussed at the fair are how AI is changing the market, the tension between supply and demand resulting in record prices at auctions, uncertainties in the US and how the reopening of China will play out. Overall, there are “good prospects” in the hard luxury market, said Cartier president and CEO Cyrille Vigneron, with a “premium on the most established brands and models”. The company didn’t comment on figures: Richemont will publish its Q4 earnings on 12 May.
At the fair, Cartier showcased a number of new versions of the icons, including the small Baignoire, Tank Louis Cartier, Santos-Dumont and a Ballon Bleu encrusted in diamonds. Among the products in high demand is the solar powered Tank Must, launched in 2021. “We just couldn’t supply enough,” Vigneron noted. The re-edition of the Pebble watch last year sold out before it hit the market, and there is a three-year waiting list for the Crash, the executive noted.
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