Do Watch Fairs Still Matter: A Preview into Watches and Wonders 2022
By:Matthew Lopez | Posted: March 24, 2022For watch collectors, it is their ambition to own that grail Patek Philippe or that most coveted Rolex timepiece. However, for watch journalists, it would be the annual trip halfway around the world to Switzerland to attend the trade fairs of Baselworld held in Basel and its more exclusive counterpart, the Salon International d’ Haute Horlogerie (SIHH) in Geneva. Long-time veteran journalist Jack Forster who presently helms as the editor-in-chief for Hodinkee best describes the trade shows as the “World Economic Forum for watch collectors”. It is where the big leagues of the entire watch industry come together and showcase their latest novelties for the first time to the public, while on the sidelines discussing the market trends that are affecting the market. Until recently, the trade fairs were exclusively among industry insiders that have transformed into a glamorous social event with all its pomp and circumstance. But with the recent economic downturn brought upon by the COVID-19 pandemic and the recent collapse of Baselworld, one might wonder if trade fairs still matter. As we are days away from the kickoff of Watches & Wonders, the largest watchmaking summit in Geneva, let us take a close preview of what to expect from this event and what is the future for the watch trade show moving forward.
The Fall of Baselworld
Since 1917, the Baselworld fair has been the main watchmaking summit for the global watch and jewelry industry. Today, the fair does not exist due to the lack of innovation and the significant departure of the leading brands that started back in 2018 (© Baselworld/MCH Group).
Before previewing the upcoming show, we must give a short background on how the entire watch industry decided to converge in Geneva in the first place. In the past, the trade shows in Switzerland consisted of two main trade shows: Baselworld and the Salon International d’ Haute Horlogerie (SIHH) in Geneva. In 1991, five brands led by Cartier, Baume & Mercier, Piaget, Gérald Genta, and Daniel Roth sought to create a more luxurious and exclusive trade show to be held at the Palexpo, the main convention center near the Geneva Airport. That became the first SIHH show that over time became the main platform for watch brands under the Richemont Group to showcase their novelties in January. Meanwhile, the main bulk of the watch industry showcased at the Baselworld trade fair mainly dominated by the large brands Patek Philippe, Rolex, Chopard, Seiko, brands under the Swatch Group (consisting of the likes of Omega, Blancpain, Longines, and Breguet), and the LVMH Group (that includes TAG Heuer, Bulgari, Hublot, and Zenith) as well as 2,100 other exhibitors of various watch brands at one point in 2007.
This duopoly of the trade shows placed significant financial constraints on their marketing expense accounts among the industry executives and the press covering the twin events. That all changed when on the 29th of July 2018, Nick Hayek, Jr., CEO of the Swatch Group announced through a press release that the group would exit Baselworld. The shock colloquially termed as the “SWexit” proved to be a damaging blow to the organizers of the trade fair namely the MCH Group contributing a hefty US$50 million to exhibit annually prompting the resignation of its CEO René Kamm who has helmed the firm for the past fifteen years. In 2019, the last Baselworld to be held to date had only 500 exhibitors, a sharp fall with brands by the day announcing their eventual departure to the fair from the likes of the Seiko, Casio, and Citizen Groups to other prominent watch brands including Breitling and Raymond Weil. In response, Baselworld announced a partnership agreement with the Fondation de la Haute Horlogerie (FHH), the organizer of the SIHH show that the two fairs will be held simultaneously until 2024, in order for professionals, press, and clients shared by large watchmaking brands would have to travel to Switzerland only once in a space of just a few weeks.
With the onset of the COVID-19 pandemic, national governments including Switzerland imposed a ban of all mass gatherings including the trade shows and heightened border restrictions for business travelers. The remaining watch brands primarily led by Rolex and Patek Philippe petitioned the MCH Group to be given a full refund to their exhibition deposits to salvage the respective watch companies from the expected financial losses brought upon by the health crisis. Hubert de Plessix, the Director of Rolex S.A. penned a poignant letter to the organizers of Baselworld stating: “…[full refunds] would be the best way to encourage exhibitors who can participate in a future edition of Baselworld. Otherwise, we fear that this will be the end, pure and simple, of Baselworld, especially since the dates chosen in January 2021 are not suitable for the jewelry, gemstones, and pearls sector, and that coordination with Watches & Wonders (SIHH) no longer exists…” Without the assurances that the MCH Group provided for the recourse of full refunds, the death knell for Baselworld came on the 14th of April 2020, when five of the world’s leading watch brands Rolex, Patek Philippe, Tudor, Chopard, and Chanel announced their exit. In their joint statement released by Rolex CEO Jean-Frederic Dufour: “a number of unilateral decisions made without consultation by Baselworld management, including the postponement of the watch show until January 2021, as well as its inability to meet the brands’ needs and expectations. We have taken part in Baselworld since 1939. Unfortunately, given the way the event has evolved, and the recent decisions made by MCH Group, and in spite of the great attachment we had to this watch show, we have decided to withdraw…” The dramatic fall of Baselworld has promoted a further consolidation to its chief rival, the Watches and Wonders show that transformed overnight into the main trade show for the entire industry.
Watches and Wonders: The New Incarnation of the SIHH
With the dramatic fall of Baselworld, the Geneva-based Watches and Wonders has become the main watchmaking event of the entire watch industry expanding from a dozen main brands that has been expanded to 38 in just three years (© Watches & Wonders/Fondation de la Haute Horlogerie).
As the drama affecting Baselworld was gaining significant momentum, the Geneva-based Salon International d’ Haute Horlogerie (SIHH) now renamed Watches and Wonders has begun a quiet revamp of its trade show concept in the background. Held annually at the Palexpo since 1991, it is considered as the most exclusive event limited to only industry professionals, the international press, and guests of the respective brands. Brands that wish to participate in the said event are vetted by the FHH, a not-for-profit foundation founded by Audemars Piguet, Girard-Perregaux and the Richemont Group since 2005. Though the show remains as the center stage for the Richemont brands, since 2017 it has provided an avenue for the independents to showcase their novelties through its special exhibition hall called the Carré des Horlogers that hosted the likes of MB&F, Laurent Ferrier, H. Moser & Cie, Ressence and others. Taking close note of the situation its much larger counterpart, the FHH not only renamed the trade show event began to democratize the event by consolidating the remaining larger brands into its fold and inviting a much younger audience to participate at the event.
As with other key industries, Watches and Wonders adapted to the digital space as a venue for the press, retailers, and invited participants to access the show albeit virtually given the present situation of the ongoing health crisis starting in 2020. What was quite notable is that in the previous edition of the show, several CEOs of the respective brands namely Christoph Grainger-Herr, the CEO of IWC, and Edouard Meylan, the CEO of H. Moser & Cie. held their respective town hall sessions on social media app Clubhouse to gauge the honest opinions of watch enthusiasts and the press of their releases, something that was unheard of as the event remains closed to outsiders. As the pandemic is slowly gearing towards a more endemic stage, this will be the first major in-person trade fair to be organized in a single place.
For the 2022 edition, the trade show shall comprise 38 different watch brands, a remarkable feat given that not more than a dozen was exhibiting in the past. This year, Grand Seiko, the luxury watch brand under the Seiko Group will make its debut at the show, a first for the Japanese watchmaker. Similarly, jeweler and watchmaker Van Cleef and Arpels will return to the show after a three-year-long absence. Given that a certain number of the international press will still be unable to physically cover the event, this edition will adopt a hybrid concept with a new press program that will include three new formats that are available on-demand including keynote addresses by the respective brands and digital product presentations that are tailor-fitted to their specific requirements. In addition, the event will include “Touch & Feel” sessions of around ten people to replace the large groups of people to give ample time to do all the necessary photography on the various products on offer and conduct interviews in a more intimate format. But despite all these “democratic” innovations, people have commented: do the watch fairs still matter?
Do the Watch Fairs Still Matter?
With the uncertainties with the ongoing COVID-19 pandemic crisis and the innovation with digital marketing, some are still questioning if the trade shows like Watches & Wonders remain relevant in 2022. (© Tatler Asia).
Given the present uncertainties caused by the ongoing COVID-19 crisis and the dramatic fall of Baselworld, some have questioned if the trade shows remain relevant given the advancements made in digital marketing. Zach Blass, the Deputy Editor for international publication Time+Tide Watches commented on the importance of trade fairs in 2022 in a special preview show on The Collector: “When you talk about these events [Basel & Watches and Wonders], these were fairs that were borne out before we had that digital relationship we have with watches today, catering to a different era as a B2B aspect before. Now, we have fairs like Watches & Wonders revolutionizing how we are [engaging] that are now angled towards the consumers, because there are far too many people on their computer or their smartphones around the world looking to see what’s new…” Blass continues stating that given the sudden consolidation of the brands presenting at the trade shows that occurred over the past few years, it would be quite difficult for writing the numerous releases that are set to drop on a single day given that there will be 38 different brands dropping throughout the week. That is countered that with this consolidation, it is very much easier for the consumer to be updated on the latest novelties in a single place.
Brendan Cunningham, an economics professor at Eastern Connecticut State University best known for its honest opinions on the watch industry through his watch blog Horolonomics sees this event and others as to create much-needed buzz towards the entire watch industry: “The bigger the trade fair is, the more attention it’s gonna draw. The brass ring [for this event], is to get as much attention to the industry as possible including being [spotted] on mass media…this holds to the exclusivity of the event, the luxury watch industry [for them] the feature of exclusivity is extremely important…at a certain level is preserved and that has an upside to the industry…” Cunningham sees this event in the era of a post-pandemic set up as a test case on what the real future will hold for the trade fairs. Adding to the discussion, Clara Kessi, the Client Relations Manager at the auction house Phillips (in Association with Bacs & Russo) who recently took the gavel as one of the auctioneers for the record-breaking sale of US$74.5 million held in Geneva last year remarked that given the adoption of a hybrid concept is a step in the right direction for the trade shows: “This is the first Watches & Wonders in-person, the first one [in 2020] was all digital. To me, I do not think about exclusivity. Because [at the event] all the novelties, all the watches will be released online as well and we have keynote presentations hosted by brands every day and special shows at the fair…” Giving her take on the upcoming festivities, Kessi remarks that pertinent information that enthusiasts want to access will be readily available.
Is this the New Normal for the Watch Industry?
With all the pomp and circumstance that people will see at the event in Geneva, many would remark that this is the return of the old trade fairs as we are accustomed to. Rather, the upcoming event is marking a new chapter for the watch industry on two important points: first, Watches and Wonders will be the main crowd drawer to the attention of the world with people across the globe congregating in the city of Geneva for a whole week instead of the previous transit between the two shows in both Geneva and Basel. And more importantly, people will be kept up to date on all the watch releases that previously were only restricted to the industry insiders. That is the new normal reality that the trade show will be, and it is set to stay for years to come.
Watches and Wonders will be on 30 March-5 April 2022 held in Geneva at the Palexpo. The physical event is limited is by invitation-only. We will have continuing coverage of the upcoming releases at the event on our website with several featured articles during the week of the event.
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