All eyes on Basel

The 36th Baselworld International Watch and Jewellery Show throws open its doors for a packed week of discoveries. Opening the event, the organisers took pleasure in emphasising the importance of a show where 2,087 exhibitors from 45 countries are geared up to welcome an estimated 100,000 visitors including 2,500 journalists from around the world, with 30,000 people staffing stands spread over 160,000 square metres, and a further 30,000 people assembling and disassembling this impressive infrastructure. It’s a simple fact: the Basel-based econometrics institute BAK has calculated that, directly or indirectly, Baselworld single-handedly generates business worth CHF 1.2 billion for Switzerland alone (excluding bordering regions). The 2008 Show promises to be as extravagant as ever, with the accent this year being placed on the jewellery sector.

The "2012 Exhibition Center" moves ahead

“The most noteworthy development is in the Jewellery sector, where several new brands have emerged,” noted Baselworld Director Sylvie Ritter at the inaugural press conference. “Proof indeed, Hall 2 can no longer provide enough square metres to accommodate the said brands, which require more extensive, more prestigious space in which to present their products. This is why we have fully remodelled this sector, including numerous extensions.”

Still, while the 2008 Show is about being bigger and better than before, it’s once again the Basel 2012 Exhibition Center in the limelight. This monumental project, led by the highly reputed architectural practice Herzog & de Meuron, should “densify” the site thanks to a new building that will literally sit on top of the existing halls. The final decisive stage in the project before the diggers move in will be the public vote next June 1st.

In the subprime shadow

At the risk of repeating ourselves, Baselworld embarks on its week-long marathon after an exceptional 2007. “The year sales went through the roof,” recalls Jacques Duchêne, President of the Exhibitor Committee. “Our exports shot up to 16 billion, a leap of 16% for growth in excess of 50% in four years. Swiss watchmaking hasn’t performed this well in eighteen years.” Despite such a positive outlook, Jacques Duchêne confesses to certain reservations, beginning with the US subprime crisis.

“Lucidity and pragmatism are the order of the day. Our industry and our economy could be shaken at any moment as no one is completely safe from this kind of event which could affect our development plans. The question we could now be asking is, recession or no recession? Clearly we mustn’t go around scaremongering, given that Swiss exports grew 20.2% for January and February. However, recent events have shown us the need to stay alert and think ahead. They mean companies must be looking at how they will approach the future and their development.”

At the forefront of innovation

The situation is indeed somewhat contradictory. On the one hand, business has significantly expanded, requiring increased investment while turnaround times grow longer and labour is scarce. But flip over the coin and we find economic slowdown and financial markets hit full-on by the subprime crisis, which could put the squeeze on the real economy too. In other words, the Swiss watch industry is finding it hard to control its growth just when investments could backfire. “Fortunately, this isn’t the case,” continues Jacques Duchêne. “One thing I’m sure of is that, unlike growth, watch and jewellery companies have innovation well in hand. These are such forward-looking sectors that, no matter what the future holds, they will always be at the forefront of progress and therefore development. Next instalment on Thursday!”

No doubt watchmakers are hoping 2008 will be played out on this optimistic note. “Baselworld 2008 will be about excellence and technical innovation,” promised Swiss exhibitors, old and new. The answer, as always, will depend on the customer.