A ‘Shocked’ and ‘Disappointed’ Tiffany & Co. Ordered to Pay $450 Million to Swatch Group

A long, simmering dispute between two powerhouses in the luxury jewelry and watch world appears to have come to an end when a Dutch arbitration panel ordered Tiffany & Co. to pay 402 million Swiss francs ($450 million) to Swatch Group for breach of contract. In addition, a counter-claim by Tiffany & Co. was dismissed by the panel.

The dispute, which has been ongoing since 2011, was argued before the Netherlands Arbitration Institute, which provides a confidential way of resolving such disagreements. The result of the arbitration in Swatch’s favor was announced in a very brief statement by the watch company Sunday followed by a much longer statement filed with the Securities & Exchange Commission Monday morning by Tiffany. 

Tiffany cut its forecast for the year based on the ruling and it says it will continue to seek legal remedies.

“We were shocked and extremely disappointed with the decision of the majority of the arbitral panel,” said Michael J. Kowalski, Tiffany chairman and CEO, in the SEC statement. “We firmly believe the panel’s ruling is not supported by the facts of this case or the various agreements between the Swatch parties and the Tiffany parties. While we are reviewing our options with our legal counsel, I want to assure you that we do have sufficient financial resources to pay the full amount. We will record a charge for the after-tax impact of the award, which we estimate to be approximately $295 - 305 million, in the fourth quarter.”

In 2007, the two companies announced that they signed an agreement to produce and market watches under the Tiffany & Co. brand name. In September 2011, Swatch Group had terminated the collaboration for what it termed as a breach of contract and pressed claims for damages in December 2011 against Tiffany. In March 2012, Tiffany filed a counterclaim with the court of arbitration in charge.

The original agreement between the two parties was that Swatch Group—which produces, markets and sells watches under approximately 20 brands from the popular low-cost Swatch watch to the prestige and luxury brand, Breguet—was to design and produce watches under the Tiffany brand name. Those watches were to be sold through Tiffany stores around the world. Tiffany apparently didn’t think the watches created by Swatch fit their brand image. Swatch charged that Tiffany did little to market and sell those watches.

Tiffany noted in its statement that one of the three members of the arbitration panel issued a dissenting opinion and that the amount awarded reflects approximately 8.8 percent of the damages claimed by Swatch.

Tiffany, according to its statement, was also ordered to pay two-thirds of the cost of arbitration (approximately $800,000) and two-thirds of the cost of legal fees ($8.8 million).

 “We do not believe that the award will impact our ability to realize our existing business plans in the short or long term, and we are extremely pleased to be moving forward with our plans to design, produce, market and distribute our own Tiffany & Co. brand watches,” Kowalski said.

Kowalski said the payments will be made from cash on hand and funds available under its existing debt facilities. The company said that the charges associated with the award will reduce earnings per diluted share for the fiscal year ended January 31, 2014, to $2.30 - $2.35 from the guidance of $3.65 - $3.75, issued a month earlier.

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Timepiece Tuesday: Christie’s, Patek Philippe, Tag Heuer, Ulysse Nardin, Breitling, Philip Stein and Oprah

Christie’s Sets Record for Watch Sales Led by Patek

With its final auction of the fall season on December 14 in New York, Christie’s International wrapped up a record-breaking year for fine and rare watches that realized $91.2 million in total sales—the highest annual total ever achieved for watches by the global auction house. Every watch sale hosted at Christie’s salerooms in Dubai, Hong Kong, Geneva and New York achieved sell-through rates above 90 percent by value. The top watch of the year was a Patek Philippe Reference 1527 manufactured in 1943 that sold for a record $5.7 million at Christie’s Geneva (pictured). In fact, it was great year for Patek Philippe, as the top seven watches sold in 2010 and the top nine out of ten watches sold for the year by the auction house were from the Swiss luxury watch brand. Christie’s top four Patek watches sold for more than $1 million. “We have welcomed in a wealth of new collectors to this field in the past year, and witnessed an exponential growth in buyer participation from Asian countries, led primarily by mainland China and Hong Kong,” said Aurel Bacs, international head of Watches at Christie's. “At the same time, established collectors from the private, trade and institutional sectors in Europe and the U.S. continue to add great depth and strength to this category.”


TAG Heuer, Parsons, Name Watch Design Winners
TAG Heuer and Parsons The New School for Design today unveiled the winners of the “Art of Watchmaking,” a 10-week competition that charged eight teams of Parsons product design students with reinterpreting TAG Heuer's classic Monaco chronograph. Each member of the three teams will receive a monetary prize and a Tag Heuer timepiece. In addition, TAG Heuer has the potential to produce one of the first-place designs as a limited-edition piece. During the review, each of the student teams showcased three concepts, and discussed their inspiration, target consumer and design philosophy. Ideas ranged from a Monaco with a rotating case to designs inspired by the New York City transportation system. First-place honors went to the team of Yong Yi Lee, Yoav Menachem and Amit Ran, whose designs included numbers to appeal to collectors (top photo); second-place honors went to the team of Enrique Diaz Rato de Zabala, Michelle Organ and You Jin Sung, whose designs included a black ceramic timepiece with neon accents (second photo); and third-place honors went to the team of Yusuke Sekiguchi, Christopher Beatty and Helen Kim, whose designs included a piece with naturally grown crystals in its dial (third photo). Read more about the design competition here and here.

Ulysse Nardin Opens First U.S. Boutique, Announce Plans to Build U.S. Headquarters

Ulysse Nardin, opened its flagship boutique in the United States at the Boca Raton Town Center Mall on December 16 with a ribbon-cutting ceremony and celebration attended by more than with 400 people, including famed baseball pitcher Randy Johnson. The luxury watch brand partnered with Bobby Yampolsky of East Coast Jewelry to open its first boutique in the U.S. The nautical-inspired store has more than 80 of the brand’s timepieces, including three models from the limited edition Boutique line. Following the ribbon cutting ceremony, Ulysse Nardin announced plans to open a 7,000 square foot U.S. headquarters in Boca Raton in the spring of 2011. This facility will be the company’s only repair center in the U.S. and will include up to 10 fully Swiss-trained watchmakers. The Swiss company manufacturers 20,000 watches per year, priced from $5,900 to $1 million.

Philip Stein is an Oprah Favorite

The Limited Edition 25th Anniversary Oprah Watch by Philip Stein was featured on the Oprah Winfrey Show's recent episode of “Oprah’s Favorite Things.” It was third time the Miami, Fla.-based watchmaker and retailer was featured on the annual Favorite Things show. However, it is the first time the company designed a watch just for the show. The signature dual dial watch has an applied silver letter “O” celebrating the television star, philanthropist and businesswoman. Philip Stein designers carried the theme further with applied silver numbers “2” and “5” commemorating Oprah’s 25th anniversary. Limited quantities of the 25th Anniversary Oprah Watch, available in a diamond style with a total carat weight of more than one carat, and a non-diamond style, are being offered to the public through select retailers and online. and interchangeable straps. Each watch comes packaged in a custom designed box featuring the Oprah 25th Anniversary logo.

Breitling Opens First U.S. Boutique

Swiss luxury watch brand Breitling opened its first U.S. store in New York on East 57th Street. Breitling watches retail from $1,000 to $300,000, and 90 of the brand’s latest models will be available for purchase at the store.

Big Luxury Watch Brands Attract Big Interest in China

For the second year in a row Omega is the top luxury brand based on Internet searches.

China continues to show strong interest in Swiss luxury watches despite a slowdown in the world’s fastest growing economy, according to a survey of Internet searches released Monday.

The Geneva office of the Digital Luxury Group, a digital consulting and marketing firm for luxury brands, said its analysis of 65 international watch brands shows that every category of luxury watches from “prestige” to “haute horlogerie” has seen an increase in interest the first half of 2012 compared to the same period in 2011, with a near 40 percent increase in aggregate searches.

“This shows that the attention expressed for Swiss watches in China remains strong despite the reported macroeconomic slowdown and the economic uncertainty linked to the political changes,” according to the report released Monday.

“Interest for watches is increasing. This is opposite of what the media is taking about,” added Florent Bondoux, head of Strategy and Intelligence at DLG, in a recent interview prior to the release of the report. He did, however, stress that online interest does not reflect sales.

“We know that this information aggregation in fact does not translate to sell out trends,” he said. “The interest continues to grow, but there are indicators that the purchase cycle (as revealed by the data from the Federation of the Swiss Watch Industry) has slowed.”

In March, DLG, in its WorldWatchReport, revealed that for the first time, China surpassed the U.S. as the country exhibiting the highest demand for luxury watches based on Internet searches. 

The WorldWatchReport measured results in five market segments: “high range,” “prestige,” “couture,” “women’s jewelry,” and “haute horlogerie” The largest growth in Internet search interest is in the “prestige” category, according to the survey. In addition, the best known international brands also received the most interest.

Out of the 65 brands analyzed, the top 10 most-searched luxury watch brands (Omega, Rolex, Longines, Cartier, Rado, Patek Philippe, Vacheron Constantin, IWC, Piaget, Chanel) represent nearly 80 percent of the search market, according to the survey.

The trend toward the big names also includes models. The top models searched this year remained unchanged compared to last year’s survey but now account for more than 50 percent of all online watch searches. They are: Omega “De Ville” (19.6%), Omega “Constellation” (13.30%) Cartier “Ballon Bleu” (6.60%), Chanel “J12” (5.9%), and Longines “Master” (5.10%).

After years of growth in the major coastal cities, such as Shanghai and Beijing, interest has grown in the booming and vast interior of the country. Again, the advantage tends to lean toward the big watch brands as they are the ones who are able to invest locally in these communities, according to the survey.

Style (such as “men’s watch” or “classic style”) followed by price are the most important factors in searching for luxury watches, according to the survey. Bondoux said part of this reason is because the Chinese are becoming more sophisticated in luxury goods. It’s also easier for Chinese consumers to search for style as many of the names for models have no Chinese translation.

“Their overall knowledge is increasing,” he said. “We know that gifting is a very important factor in luxury watches. If you are buying for someone you would not necessarily look for the price but search for generic name.”

The report can be downloaded directly at www.digital-luxury.com/chinawatches.

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Nine Timely Luxury Watch Gifts for the Holidays

Vacheron Constantin Patrimony Contemporaine Ultra-Thin Caliber 1731 combines the complexity of a striking mechanism with the additional challenge of producing the thinnest minute repeater caliber and the thinnest minute repeater watch on the market—at just 3.90 and 8.09 mm thin respectively. It has a 65-hour power reserve, a silent flying strike governor, which steadies the rate at which the hammers strike the gongs. It is available at Vacheron Constantin boutiques.

Buying a luxury watch as a gift can be a downright terrifying experience. The choices are near endless in this day and age.

Montblanc Nicolas Rieussec Rising Hours Chronograph relies on two discs, one atop the other, to show not only the hours, but to also indicate whether it is day or night. This unusual time display is made possible by Montblanc’s caliber MB R220. The chronograph tallies 60 elapsed seconds and 30 elapsed minutes on rotating discs with motionless hands. It is available at Montblanc boutiques.

Fortunately, I put together a list of nine watches that cover a variety of mechanical variations, designs and lifestyle attributes. There are watches in all shapes, styles and prices. Some of the world’s most prestigious watch brands are represented as well as critically acclaimed independent brands. There are ultra thin watches. There are watches in line with a lifestyle pursuit, such as high-powered automobiles or world travel. Several watches on the list have fanciful complications. Then there are the timepieces that speak to history and heritage. There’s even a watch brand that’s made in America.

Arnold & Son HM Perpetual Moon boasts one of the biggest moonphase apertures on the market along with rich guilloché dials and three-dimensional big moon. The 42mm, 18k red gold case houses the Arnold & Son caliber A&S1512 mechanical hand-wound movement. It has a one day-deviation every 122 years, at which point a single push on the corrector will keep it in sync for another 122 years. It retails for $28,550.

Surely there is something on this short list that could be a perfect gift for that special man in your life.

Nomos Glashütte Zürich Weltzeit 5th Avenue watch was designed in Zurich built in its manufacturing facility in Glashütte, Germany, and dedicated to New York. It’s powered by the Nomos in-house caliber Xi. To view the time in another zone, press the button above the crown at 2 o’clock until the desired location is at 12 o’clock. The “New York” display is at the 3 o’clock marker in red typeface next to a 24-hour disc. It is available at Wempe stores worldwide, limited to 100 pieces. 

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

Jaquet Droz Grande Heure GMT has 24 indexes in Arabic numerals set around a Grand Feu enamel dial make it easy to see all the hours of the day in two cities. The hands are designed in the form of a compass. The red hand indicates local time while the blued steel hand shows the time at the destination. When the two hands come together in the same time zone they merge into a single, bi-colored indication of the exact time. 

For the first time the Piaget Altiplano watch integrates a calendar and holds its place as the thinnest watch in the world in its category. The 40 mm watch has an 18k rose gold case set with 72 brilliant-cut diamonds (approx. 1 ct). The 1205P ultra-thin automatic mechanical movement is the thinnest in the world (3 mm thick), with small seconds and date and a 22k rose-gold oscillating weight.

The Dubey & Schaldenbrand Grand Dome R92 has a stainless steel tonneau-shaped column wheel chronograph combines vintage movements with modern craftsmanship and design. The R92 movement was originally fabricated in the 1950s. It uses a swivel-pinion design to synchronize the chronograph components. The dial is exposed providing full view of the movement. It retails for $16,700.

Graham Silverstone “RennSport” Skeleton reflects the accuracy and efficiency of automobile mechanics, showcases all parts of the caliber G1790 chronograph movement. The 46 mm steel case has polished bevel horns. A lateral porthole on the case at 10 o’clock provides a view of the escapement and balance wheel. Limited to 250 pieces it retails for $14,580. 

Devon Tread 2 Shining is manufactured in Los Angeles. It runs on Devon’s distinctive Time Belt movement and powered by a lithium-polymer rechargeable battery that can power the movement for up to 28 days. It retails for $9,950.

Hublot Ad Spurs Discussion, Controversy

An advertisement using the bruised and beaten face of Formula 1 head Bernie Ecclestone with the statement, “See what people will do for a Hublot,” has created a bit a controversy. Ecclestone was mugged in London and his Hublot watch was one of the items stolen. He sent the picture, taken right after the mugging, with the statement used in the ad to Jean-Claude Biver, CEO of Hublot. The ad was attempt at humor and a way to draw focus to a serious issue, according to Biver, who said he created the ad at the insistence of Ecclestone. It appeared last week in the Financial Times and the International Herald Tribune as a one-off. But there are rumors that it may become a full-blown campaign. A story about the ad appeared in the Jewelry News Network Tuesday.

In the Wednesday edition of the Financial Times in its “Judgment Call” section (subscription required), the U.K.-based newspaper asked an executive, brand specialist and academic about their advice when trying to tackle this type of an issue and using humor to do it. Responses ranged from Barbara Stocking, chief executive of Oxfam, who cautioned about the long-term goal of such ads, to Rita Clifton, chairman of Interbrand London, who said that using topical events “can be a good route. But it depends who is doing it and how.” Meanwhile, Rohit Deshpande, professor of marketing at Harvard Business School, said the ad “is in poor taste, is bad marketing, and creates the wrong kind of long-term consumer impression.” What do you think?

Timepiece Tuesday Part 2: Hubot Ad Turns Tragedy into Comedy, Omega Wins Lawsuit, a Clock that Acts Like a Sail

There’s so much going on the world of timepieces that it takes two issues of Timepiece Tuesday to tell it all.

A Black Eye Becomes a Punch Line
Bernie Ecclestone, president and CEO of Formula One, was mugged by four persons and robbed of jewelry worth £200,000 ($315,000) in London, the BBC reports. Among the articles stolen was his Hublot watch. The robbery happened November 25 and on that day he sent his picture of himself taken the day of the assault to Jean-Claude Biver, CEO of Hublot, along with a note: “See what people will do for a Hublot.” Biver told the BBC that Ecclestone wanted to use the picture and statement for an advertisement. Biver agreed and the untouched photo of Ecclestone sporting an enormous black eye and a bruised jaw appeared with an ad for the F1 King Power watch, the official watch of Formula 1 racing. The ad ran as a one-off on December 8 and 9 in the Financial Times and the International Herald Tribune. However, the reality-based ad may actually become a campaign, JustLuxe reports, although the company has yet to make such an announcement.  

Omega vs. Cotsco

 The U.S. Supreme Court has ruled that the Omega brand can effectively control the pricing of its luxury watches in the U.S., which means consumers will pay more, the Daily Finance reports. The decision was 4-4, with Justice Elena Kagan abstaining. Such a split decision upholds the lower court's ruling, which in this case was in favor of the Swatch-owned brand. However, divided 4-4 rulings don't have the same impact as true majority, the publication explains. So the collision of copyright law and "gray market" goods—items originally sold abroad, brought into the U.S. and resold here—is still largely unsettled. Costco was purchasing Omega watches on the gray market from middlemen abroad at prices below U.S. prices. More on the issues For example, Costco was able to sell Omega's Seamaster watch for $1,299, while other U.S. retailers were charging $1,995. Read more.


A Clock that Acts Like a Sail
A wall-mounted clock with a manifold that is connected to the two hands to create a 3D movement. At any given moment the manifold is located in a different position and different parts are seen. As the hour can be understood according to the traditional location of hands, a new reading of time is created. Called the Manifold clock, it was created by Studio Ve, an Israeli design company. A shout out to Fast Company's Co.Design, where I first learned about the product. Video of the clock in action below.


Manifold Clock from Studio Ve on Vimeo.

PPR Shopping for Luxury Jewelry and Watch Brands

François-Henri Pinault. Photo credit: InDigital Media Group

NEW YORK — French holdings company, PPR, is on the lookout for luxury jewelry and watch brands to strengthen its portfolio and meet demands in the booming Asian region.

François-Henri Pinault, chairman and CEO of the company that owns brands in the luxury, sports and lifestyle markets, said PPR identified a weakness in its portfolio in the growing men’s luxury segment. To rectify this it took control of the Sowind Group, which owns the Swiss luxury watch brands, Girard-Perregaux and JeanRichard. Then it acquired the Italian men’s fashion brand, Brioni.

The company already owns the French luxury jewelry brand, Boucheron, which it purchased in 2000. However, Sowind and Boucheron are the only companies it owns in the “hard luxuries” segment of the market. PPR primarily operates internationally in the apparel and accessories sectors in the luxury market and what it identifies as the “Sports & Lifestyle” market. Its luxury brands include Gucci, Bottega Veneta, Alexander McQueen and Balenciaga.

He said PPR will pursue hard luxury brands. “We are looking to any opportunities in jewelry and watches, particularly in Asia,” he said. “It is very important in Asia.”

Pinault made these comments Wednesday following a breakfast presentation at the Consulate General of France. During the event, he gave his views on a range of topics, including the growth of Asian market, the strategy of his diverse holdings company, and e-commerce and digital media.

Pinault said that for 50 years the growth in population and wealth in the world (800 million consumers) was centered in the U.S. and Japan. However, in 2006 the company identified that economic growth has shifted to emerging markets—particularly China, India, Brazil, and more recently, Indonesia—bringing 3 billion consumers to the worldwide market, and that this trend will continue.

“It means that in the next 50 years the growth is amazing,” Pinault said. “We don’t have any idea what it will be. We are always referring to the past but it’s no use. We cannot compare 3 billion people with more and more purchasing power to 800 million in the past… The question is what should we do to take advantage of those opportunities of growth?”

The company already made a decision to enter the luxury market in 1999. However, in 2006, it began to drastically change its portfolio to enter the sports and lifestyle segments. In 2007, it purchased Puma as the centerpiece of this new strategy.

Then, he said, the company needed to identify two areas of growth in this segment that would not compete with the footwear and sportswear company. It chose action sports, which led to the 2011 acquisition in Volcom, and the outdoors market segment.

PPR then took a giant step toward shoring up its e-commerce and digital media strategy by forming a joint-venture with online retail specialist Yoox to administer the e-commerce operations of most of its luxury brands.

Pinault says PPR’s digital media strategy has two parts. First, it needed what acquire the skill set, which resulted in the partnership with Yoox. Now it will try to create an experience that is similar to what customers get from going to one of its branded stores.

“You cannot offer an experience to your customer in the stores that’s completely different from the experience that you’re offering online,” he said. “You go to a Gucci store for the experience rather than mainstream stores. You have to reproduce that online.”

He continued, “The next step is to transform the e-commerce experience, our luxury experience, like it is in the stores. It will show that we can reproduce this conversation online.”

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Hublot Opens Boutiques East and West, Audemars Piguet and Michael Schumacher, and Tourneau Adds Rolex

 
Jet Li, Million Dollar Watch Help Open Hublot China Boutique
Hublot opened its third and largest boutique in China in the Oriental Plaza, one of most prosperous iconic shopping malls in downtown Beijing. At the event, the Swiss luxury watch brand welcomed its newest brand ambassador, actor and martial arts expert, Jet Li. And to make things a little more interesting Hublot revealed the Big Bang One Million $ Lady watch. The 38 mm timepiece features 880 baguette diamonds, adding up to more than 48 carats. Made from white gold by master stone-setters using an “invisible set” technique, which magnifies the brilliance of the diamonds, it was introduced at the BaselWorld tradeshow in April 2010.

Audemars Piguet Welcomes Schumacher
Who’s that looking sharp with his Audemars Piguet watch? Why that’s none other than the greatest racecar driver off all time, Michael Schumacher. Audemars Piguet CEO Philippe Merk officially welcomed the famed German driver into the watch brand’s family during an event in Dusseldorf, Germany. Schumacher’s seven world championship titles, 68 pole positions, 91 victories and 154 podium finishes on all the world’s major tracks make him the greatest racing driver of all time. After his return to competition in 2010, next season, he will be competing in the 18th world championship of his career.



Hublot Unveils ‘Bal Harbour’ Watches and Boutique
Hublot opened its first U.S. boutique in Bal Harbour, Fla. To honor the opening the Swiss luxury watch brand presented two timepieces in limited edition of 25 pieces: The King Power Aero All Black “Bal Harbour” and an Aero Bang “Bal Harbour.” Both models are for sale in Bal Harbour boutique.

Tourneau Store Opens Rolex Boutique
The Tourneau watch store at The Plaza at King of Prussia has opened a specialty Rolex boutique inside the store just in time for the holidays. A grand opening celebration was held Dec. 3-5. The mall and store are located in King of Prussia, Pa.

Andrea Bocelli Foundation to Host Benefit Gala with Girard-Perregaux

Andrea Bocelli 

Classical singing sensation Andrea Bocelli will launch his new foundation with a benefit gala on Friday at the Beverly Hilton Hotel in Los Angeles. Bocelli, David Foster, Heather Headley and Anna Maria Martinez will perform at the event.

The Andrea Bocelli Foundation seeks to raise funds and awareness for its efforts to fight poverty around the world and to help people overcome barriers caused by illness, discomfort or disability. 

“I feel very strongly about helping people make the most of the world that we live in,” Bocelli said. “I was born with poor eyesight and became completely blind at the age of twelve. Overcoming blindness and dealing with its consequences has taught me about the nature of externally imposed limits, and has encouraged me to think about how to help and support others facing barriers in their lives. Every human being has the right to be happy, fulfilled and to live a flourishing and meaningful life. I want to help those who face barriers in achieving their life’s potential.”

Partnering with Bocelli for the event is the Swiss Luxury watch brand Girard-Perregaux.

“We are very proud and excited to join forces with Andrea Bocelli in the launch of his new foundation,” said Michele Sofisti, CEO of Sowind Group, which incorporates the Girard-Perregaux and JeanRichard luxury watch brands. “His accomplishments as an artist and philanthropist are an inspiration to all of us and we are happy to support him in this new pursuit.”

The event is produced by Studiomusica and Jo Champa and presented by the Grammy Museum Foundation. Tickets are available by following this link.

Timepiece Tuesday: Time Machine Wins Award, Bottega Veneta's Luxury Watch, Aggasi and Longines Make Education Pitch

Time Machine Wins Concept and Design Award

The Horological Machine No. 4 Thunderbolt has received the prestigious Grand Prix d’Horlogerie de Geneve award for best Concept and Design Watch. It’s maker, MB&F created the aviation-inspired watch case and engine as a single unit. The Thunderbolt's engine is the result of three years of development. Each of the 300-plus components–including the regulator and even the screws–was developed specifically for this particular watch. Every component and form has a technical purpose, the watchmaker said. 

Bottega Veneta Introduces Luxury Watch

Italian luxury goods house Bottega Veneta has teamed up with Swiss luxury watchmaker Girard-Perregaux for its first ever watch, the Bottega Veneta BVX, a unisex watch that features the fashion house’s signature woven leather pattern on its strap. The dial has a black, brushed titanium cover case while the face is brown. The strap is crocodile leather and is cigar colored. It has an 18k rose gold automatic movement made by Girard Perregaux. The case measures 41 mm across and is made of brushed titanium. Titanium has the highest strength-to-weight ratio of any metal and is also corrosion-resistant and hypoallergenic. The back of the watch is faced with crystal, leaving the workings completely exposed. The case is finished with a PVd coating in Bottega Veneta’s signature brunito color. Read more about at Lorre White, the Guru of Luxury Web site.

Agassi, Longines, and Fink’s Jewelry Host Education Event

Swiss luxury watch company, Longines hosted “A Day With A Legend Event” at Fink’s Jewelers on November 16 at its Tysons Corner location. Longines brand ambassador and tennis legend Andre Agassi spoke to children from the USTA Mid/Atlantic and fans about his views on education in America, the Longines Elegance Scholarship Fund, his school, The Andre Agassi College Preparatory Academy, and the work of his foundation, the Andre Agassi Foundation for Education. The foundation has raised $150 million for education initiatives since it’s founding in 1994. Agassi was accompanied by a graduating senior, Micah Jones, from his Nevada-based preparatory academy. Longines set up a smash court in-store where the tennis legend hit a few balls with the children from the USTA Mid/Atlantic. For a $5 donation to Agassi’s foundation, attendees at were able to test the speed of their serve. The fastest men’s and women’s serve received a Longines timepiece. Fink’s Jewelers said it would donate 10 percent of the sales of Longines timepieces for the month of November and December to Agassi’s Foundation. Later that evening, Longines hosted a dinner at Fink’s Jewelers where education was the topic of discussion.

Timepiece Tuesday: Antiques, Girl’s Luxury Watch, Special Editions, An Awards Preview and a Social Media Contest

Chinese Watch Collectors Have Appetite for Vintage Pieces

Is there anything regarding luxury that the Chinese don’t want? Each season, Christie’s presents a range of 19th-century timepieces made especially for the Chinese market. This year, at the auction house’s Dec. 2 auction of watches, five 19th-century timepieces made especially for the Chinese market are coming up for sale. One, a circa-1877 gold-and-enamel pocket watch depicting three angels, is estimated to sell for between HK$320,000 and HK$480,000 (pictured). In addition, in 2005, Asia overtook the U.S. as the biggest market for Patek Philippe. Collectors are buying both new and vintage models, but there is an increasing focus on older pieces, according to the Wall Street Journal blog, Scene Asia.

Antique Clock Auction

Clocks will be a major focus in the Skinner, Inc. annual auction of Science, Technology & Clocks on November 20 in its Marlborough, Mass., gallery. Among the timepieces on the block, is a very important regulator by the Bond Shop (pictured). The Regulator No. 396 is was one of three made; No. 394 was developed for the Harvard Observatory, No. 395 for an observatory in Liverpool, England, and No. 396 for the personal use of Bond in his chronometer shop. As the director of the Harvard Observatory, Bond was one of the first to work towards establishing standard time. It is estimated at $300,000 to $500,000. Other clock highlights include a Newport tall clock, c. 1725 by William Claggett of Newport, R.I., which is the earliest American clock being offered in the sale. The piece is estimated at $60,000 to $80,000. The sale also includes a number of Willard clocks.

Frederique Constant to Introduce Luxury Girl’s Watch

The U.K. trade publication, Professional Jeweller, has learned that Frederique Constant will introduce a girl’s luxury watch at BaselWorld. “The company’s global sales director, Ralph Simons, confirmed it with a nod of his head during an interview this week,” the publication wrote. Stay tuned.

Marvin Unveils Sébastien Loeb Collection

Swiss luxury watch brand Marvin has created a new limited edition line in partnership with its ambassador, World Rally champion Sébastien Loeb. Two exclusive chronographs have been developed with Loeb and they both carry his signature. Their design is the work of two creative watchmakers: Jean-François Ruchonnet, best known for the TAG Heuer Monaco V4 and the Cabestan, and Sébastien Perret, the Neuchâtel designer who has been associated with all recent Marvin collections. The new Loeb Special Edition has a 44 mm diameter steel case flexible red horns mounted on spring suspensions, buttons coated in black PVD that resemble gear change paddles, and counters designed like dashboard instruments. The collection is limited to 777 pieces, representing Loeb’s seven world championship titles.

Grand Prix d'Horlogerie Preview

The 2010 edition of the Grand Prix d'Horlogerie de Genève will be November 18 at the Geneva Grand Théâtre. Ten timepieces have been shortlisted for each of the competition’s seven categories, including best ladies, men’s, design, jewelry, complicated, sports and the Petite Aiguille watch prize (the best timepiece under SFr5,000). There will also be four special awards, including the public prize, voted for by 5,000 participants. Brands shortlisted include Bulgari, Van Cleef & Arpels, Ralph Lauren, Audemars Piguet, Piaget, Chopard, Chaumet, Graff, Harry Winston and Chanel. The Financial Times has written a preview of the prestigious event that can be viewed here (subscription required).

Baume & Mercier In Search of ‘Very Special Reporter’

Baume & Mercier has launched a contest appealing to its social media fans. The Swiss luxury watch brand has invited its 75,000 Facebook fans to upload videos explaining their love of the brand and why they would make ideal "Very Special Reporters" at the upcoming Salon International de la Haute Horlogerie in Geneva, Jan. 17–21, the trade show for high-end watch manufacturers and buyers.

Harry Winston CEO Explains the Luxury Rush to China

A voracious appetite for consumer goods, youthful exuberance and sheer numbers are the main reasons why luxury companies are flocking to China, Frederic de Narp told a group of luxury marketers in New York.

“Everybody talks about China, China, why China?” Harry Winston’s president and CEO said to members of the Luxury Marketing Council Wednesday night. “They spend more than anybody else and they are younger than everybody else.”

When de Narp mentions affluent consumers, he is talking about what he defines as the “uber-wealthy,” those with about $30 million in liquid assets that Harry Winston targets. He says those with the greatest wealth in China are 15 years younger than their counterparts in the U.S. About 80 percent of the truly wealthy in China are under 45 years old while 70 percent of their counterparts in the U.S. are over 45 years of age.

DeNarp discusses the luxury market

In addition, the number of uber-high-net wealth people is expected to increase dramatically, far more than anywhere else in the world. In ten years, he said China is forecasted to be the number one luxury market in the world. The country is already the top export market for Bordeaux wines in value (according to the Conseil Interprofessionnel du Vin de Bordeaux) and the biggest destination for luxury watches.

“In ten years we expect the uber-high-net wealth population, the people with $24,000 in disposable income, to be multiplied by 12 in ten years—from one to 12 million. That is why everybody’s going to China,” he said.

De Narp was one of three speakers who discussed “Canadian Luxury” at the Conde Nast Building on Times Square. The Toronto-based company is both a diamond miner and luxury retailer. He limited his talk to the worldwide luxury market and the company’s brand and retail strategies.

While the Chinese luxury market is the fastest growing in the world, De Narp said that the luxury market for the uber-high-net wealth population is doing well everywhere.

“It’s booming,” he said. “The brand (Harry Winston) is on fire but luxury is booming around the world.”

In the most recent assessment, the worldwide luxury market is project to grow 9 to 10 percent in 2010.

“I’m talking about true luxury brands,” he said. “There’s a world of confusion among luxury brands and true luxury brands. A luxury brand, to me, represents timeliness and it is a truly a different business model. True luxury brand are doing extremely well—hard luxury, watches and jewelry.”

Among countries, China’s growth for the years is projected to be 10 percent, the rest of Asia 4 percent, North America 12 percent and Europe 6 percent. The Japanese market is projected to fall 1 percent. All of the numbers are far better than what was predicted in the beginning of the year, he said.

While the world’s Gross Domestic Product decreased by 2 percent, the uber-high-net wealth population of approximately 98,000 people with more than $30 million in liquid assets grew by 19.4 percent.

“So there is enormous wealth created around the world and of course Harry Winston being the most exclusive watch maker in the world, gets positioned with the best.”

Among countries with the most billionaires, last year china had 24. This year it has 64 billionaires. “I’m sure there are more than 100 billionaires. This is the power of China,” he said. “But still, America is still the strongest market by far.”

New York has 60 billionaires and there are 27 billionaires in Los Angeles. Among other cities around the world, there are 32 billionaires in London, 15 in Moscow and 28 in Istanbul. “Who would have guessed that,” he said.

Consumer trends differ around the world. In the developed world, people want more simplicity. Young people are looking for products and services that are environmentally and socially responsible.

Three major western trends in Europe and American are exclusivity, durability and heritage. “In Europe I don’t think this is new for anybody,” he said. “Engagement and experience at the point of access is extremely important.”

In china they want visible logos, western brands and the look for novelties.

“Today, nothing is too beautiful for China,” he said. “It’s a matter of only wanting the best. They believe in the value of investing in precious stones.”

Japan, is “losing their passion” for luxury, he said. However, they want niche brands that are not readily available to the general public.

“An exclusive brand with only five salons, not in the malls, not in the department stores,” he said. “We are extremely well-positioned in Japan.”

World Records Set for Eric Clapton’s Patek Philippe Watch and Patek Chronometer

Eric Clapton's watch with moon phases sold for $3.6 million. CHRISTIE'S IMAGES LTD. 2012

A Patek Philippe platinum perpetual calendar chronograph wristwatch with moon phases owned by famed guitarist Eric Clapton sold for $3.6 million at Christie’s Geneva Important Watch auction held Monday.

Described by the auction house as a reference 2499/100, movement number 869'308, and case number 2'817'876, it was manufactured in 1987. The Calibre 13''' mechanical movement was stamped twice with the Geneva seal. The watch from the famed rock and blues musician and songwriter (nicknamed “slowhand”) has 23 jewels, silvered matte dial, applied gold baton and square numerals, gold dauphine hands, outer Arabic five minute divisions, windows for day and month, three subsidiary dials for constant seconds, 30 minutes register and moon phases with date, circular case, stepped downturned lugs, snap on back. Finally it has a platinum Patek Philippe buckle, case, and a signed 37.5 mm. diameter dial and movement.

Patek Philippe unique platinum chronometer wristwatch sold for $4 million. CHRISTIE'S IMAGES LTD. 2012

While Clapton’s watch may have been the piece the received the most press, it didn’t receive the highest bid at the auction. That honor went to “J.B. Champion Platinum Observatory Chronometer.” a Patek Philippe unique platinum chronometer wristwatch with Guillaume balance, Bulletin d’Observatoire, additional diamond-set dial and platinum bracelet that sold for just under $4 million, a world auction record for a watch without complications.

Manufactured in 1952, the historically significant 13''' caliber, 13 Lépine, mechanical movement is numbered twice and stamped twice with the Geneva seal, three-quarter plate, 20 jewels, blued steel Breguet balance spring, Guillaume balance, micrometer regulator, silvered matte dial, applied baton numerals, outer beady minute divisions, gold feuille hands, subsidiary seconds, circular heavy case, snap on back, platinum Patek Philippe buckle, case, dial and movement signed 36 mm. diameter.

It great day for Patek Philippe as the top 10 lots was manufactured by the renown Swiss watch brand. This includes three other Pateks that sold for more than $1 million:

* An extremely rare, platinum chronograph wristwatch that sold for $1.6 million. One of three platinum examples ever made of this reference; it’s signed Patek Philippe & Co., Genève, ref. 1579, movement no. 867'005, case no. 645'566. Manufactured in 1946, the Calibre 13''' mechanical movement has 23 jewels, micrometer regulator, silvered matte dial, black enameled baton and applied gold Arabic numerals, Arabic five minute divisions, outer tachymetre scale, two subsidiary dials for constant seconds and 30 minutes register, large circular case, downturned angular or "spider" lugs, snap on back, and 18K white gold Patek Philippe buckle.

* An 18K gold World Time wristwatch with cloisonnè enamel dial depicting the Eastern hemisphere sold for more than $1.04 million. Signed Patek Philippe, Genève, ref. 1415 HU, movement no. 964'802, case no. 669'492. Manufactured in 1949, the calibre 12'''120 HU mechanical movement has 18 jewels, bimetallic compensation balance, micrometer regulator, polychrome cloisonné enamel dial depicting the map of Europe, Asia, Africa and Australia, applied gold baton and Roman numerals, gold hands, outer revolving ring depicting the diurnal and nocturnal hours on silvered and black background, circular case with revolving bezel engraved with the names of 41 cities in the world, teardrop lugs, and snap on back.

* An 18K pink gold chronograph wristwatch with two-tone silvered dial also sold for more than $1.04 million. Signed Patek Philippe, Genève, retailed by Gobbi, Milano, ref. 530, movement no. 868'800, case no. 514'608, it was manufactured in 1955. The Cal. 13''' mechanical movement stamped with the Geneva Seal, 23 jewels, two-tone silvered dial, applied pink gold baton and Arabic numerals, gold hands, outer railway five minute divisions and tachymetre scale, two subsidiary dials for constant seconds and 30 minutes register, large circular case, downturned lugs, snap on back, two rectangular chronograph buttons in the band, 18K pink gold buckle, case and movement signed by the maker, dial signed by the maker and the retailer.

Possibly the world's first chronograph. CHRISTIE'S IMAGES LTD. 2012

A timepiece of historical significance that was part of the auction was what may have been the first chronograph. It sold for $245,274. The “probably unique” and historically important inking chronograph with cylinder escapement, housed in mahogany box is signed Rieussec Horologer du Roi, Chronographe, Brevet d'Invention, circa 1821/22.

Nicolas Mathieu Rieussec is credited with inventing the chronograph on September 1, 1821.

The timepiece has a mechanical cylinder movement, plain three-arm balance, two revolving silvered dials on the front plate—the upper one for minutes, the lower one for seconds—both with fixed blued steel inking hand, brass button on the left side of the fausse-plaque activates the inking hand, brass button on the right starts and stops the movement, front plate signed. It measures 143 mm. long & 114 mm. wide not including the box.

This lot includes a note from Christie’s, which reads as follows:

It is very interesting to note that this historically important inking chronograph by Rieussec is not numbered, but instead inscribed "Chronographe, Brevet d'Invention". One may speculate for the reasons why Rieussec didn't number this superb piece, but one very logical explanation may be that this example here is the very one he used to obtain his patent.

Vaucher Fleurier 18K gold and enamel identical numbered, mirror-image pair of duplex watches. CHRISTIE'S IMAGES LTD. 2012

Another interesting item that received a great deal of interest was a set of two Vaucher, Fleurier 18K gold and enamel identical numbered, mirror-image pair of openface center seconds duplex watches with matching gold and enamel keys and fitted box, made for the Chinese market. It fetched $385,432, nearly triple its high estimate. Signed Vaucher, Fleurier, No. 160 & 160., circa 1830, it features mirror-polished and blued steel keywound duplex movements, bimetallic compensation balances with blued steel wedge-shaped weights, hinged gold cuvettes, white enamel dials, Roman numerals, gold spade hands, centre seconds, large circular cases, pink, light blue and translucent scarlet champlevé enamel floral decorated bezels, rims, pendants and bows, the backs decorated with finely painted, mirror-image polychrome enamel bouquet of flowers on mauve background.

All totaled, the auction held at the Four Seasons Hotel des Bergues, Geneva achieved more than $28.5 million in sales with 96 percent sold by lot and 97 percent sold by value. All prices realized for individual items and auction house totals include commissions.

“Today’s seven-hour marathon auction welcomed some 500 registrants from five continents, generating stellar sell-through rates as well as breaking numerous records,” said Aurel Bacs, International Head of Christie's Watch Department. “Collectors, public and private museums, the trade and also an investment watch fund, battled out the bidding for the best watches seen at auction this season, reconfirming.”

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