Parmigiani’s road map

As always, Parmigiani came to the 2013 Salon International de la Haute Horlogerie with watches that go out of their way to be different. “We’ve taken a more artistic approach this year and have worked with craftsmen from various horizons to propose an original interpretation of Fine Watchmaking. Our marquetry dials are a fine example.” As Chief Executive Jean-Marc Jacot explains, this is consistent with the “road map” Parmigiani has been following since 2000 and which focuses equally on industrial excellence and horological craftsmanship. The subsequent collections are well segmented and convey a clear message both to retailers and customers.

With a little help from Nicolas Hayek

“It’s been a slow process,” continues Jean-Marc Jacot. “In 2000, we were clear that it would take some fifteen years to get there. So we still have three years to go, with some ups and downs along the way. The “turbulence” of 2008 weighed as a negative factor whereas Swatch Group’s decision to phase out deliveries to third parties has clearly proved positive for our industrial structure, which includes Vaucher Manufacture Fleurier for movements, and Atokalpa for escapement parts, which supplies Zenith and TAG Heuer, for example.”

“The late Nicolas Hayek came under heavy criticism, but there’s no denying he did a lot for Swiss watchmaking by providing quality movements and parts at unbeatable prices. Now that these supplies are coming an end, it’s time for pseudo Manufactures to reconsider what they really do and finally admit that they are in fact assemblers. There’s nothing disparaging about that, on the contrary. However, that reality should catch up with them is only to be expected. Let’s put an end to the lie and the conspiracy of silence that goes with it.”

Natural growth of 10% to 12%

What is true for the group’s industrial base – the order books are full until 2014 – also applies to distribution. “The important retailers are looking for alternatives to the big watch groups, something we’ve seen at the SIHH,” says Jean-Marc Jacot. “This opens up opportunities for the brand to grow more quickly. When it’s harder going in the markets, the heavyweights put pressure on their distribution networks, which then turn to independent names such as Parmigiani to maintain their margins, a potential we’ve been able to observe already this year.” Parmigiani can also count on a solid structure across all five continents. Last year it set up no fewer than nine subsidiaries, including in Asia, Russia, Brazil and the United States. It still has the Middle East and Japan to “crack”.

“This implies heavy investment but it’s what we must do to develop in terms of quality. The backing of the Sandoz Family Foundation is particularly significant in this respect. It invested in watchmaking out of passion and to keep these skills alive in Switzerland. This means we aren’t under pressure from the financial markets or pushed into taking a short-term view. On the contrary. We have spent a decade bringing together the industrial expertise that has made us a fully-integrated Manufacture. Our objective now is to maintain this balance between our industrial resources and the brand with a view to financial equilibrium, which we’re close to achieving. Such a development would never have been possible without a patient shareholder. We ended 2012 with sales up 16%. That’s a good result, slightly above Parmigiani’s natural growth rate of 10% to 12%.” To quote the Sandoz Family Foundation, “Beyond an identity that is deeply rooted in Swiss Fine Watchmaking, Parmigiani Fleurier is an important economic and industrial force within the Val-de-Travers region.”