On the necessary industrialisation of Haute Horlogerie

Haute Horlogerie comes to us as prestigious timepieces that require leading-edge industrial expertise.

Since the quartz crisis of the late 1970s, Haute Horlogerie companies are fully aware of the economic implications at the high end of the market, which inevitably means mastering production resources.

Christophe Roulet


Who imagines Haute Horlogerie watches?

Haute Horlogerie refers essentially to self-winding or hand-wound mechanical watches, as conceptualising this type of watch requires a consummate level of expertise in micro-mechanics. To imagine a watch and bring it to life using mechanical parts is infinitely more complex than with the electronics of quartz movements. Hardly surprising then that Haute Horlogerie should be so closely associated with superb mechanics (with a passing nod to the world of automobiles) whose inherent technicity is in itself an element of beauty in the eye of many beholders.

Naturally, this aspect of the question seriously limits the number of companies with the potential to create Haute Horlogerie pieces. Given that it takes between three and five years to develop a mechanical watch, from the first mouse-click on CAD software to the final inspection after assembly, this "unknown quantity" requires planning, financial backing and, above all, the talent and experience needed to run an R&D division worthy of the name. In other words, many watch companies remain on the threshold, never taking the step and creating, for part of their range at least, the mechanical movements that will open the door to Haute Horlogerie. Instead, they generally content themselves with developing basic complications, such as date, chronograph, or retrograde hours and seconds, on blanks purchased from industrial suppliers such as ETA (Swatch Group) or Indtech, which they then assemble.

Where does this leave independent watchmakers?

And so Haute Horlogerie is in the hands of just a few dozen Houses, some of which can look back on a hundred years or more of existence while others entered the fold far more recently. Indeed, the Haute Horlogerie perimeter wouldn’t be complete without mentioning the independent master watchmakers, many of whom have passed through the famous Académie des horlogers créateurs independents. They have accomplished the exploit of imposing their name on a market already firmly occupied by established brands. Through the creation of exceptional pieces of irreproachable technicity, with many world-firsts along the way, these newcomers have achieved critical acclaim that has quickly grown into commercial success in, one must admit, a propitious market. Indeed, waiting lists are not uncommon in this very specific segment, given the time it takes to create these often ultra-complicated pieces.

Nor is it rare for independent creators to lend their talent to leading Houses, more often than not in total anonymity as certain companies are loath to reveal the origin of their movements… especially for the more astounding creations that come out of these independent workshops. For the rest, some independents have been incorporated into larger groups in search of industrial integration and highly specialised expertise.

Who makes Haute Horlogerie watches?

Underlying the question of production are the manufactures. Once again, specialists are at odds as to the exact meaning of the term. The Federation of the Swiss Watch Industry defines the manufacture as "a factory (fabrique) in which watches are manufactured almost completely as distinct from a finishing shop (atelier de terminage) which is concerned only with assembling, timing, fitting the hands and casing." It would also appear that an unwritten rule in watchmaking circles equates manufacture with companies that have the industrial capacity to produce at least one of their watch lines in its entirety (give or take a few parts). In this light, one can quickly conclude that relatively few companies meet these criteria, compared with dozens just a few decades ago.

Of the 593 watch companies (at end 2005) employing 43,000 people, versus 2,300 in the 1950s employing more than twice as many staff, a handful of manufactures remain that can boast an uninterrupted tradition of industrial activity. This is a sector to which very few professionals in the branch can aspire. The prestige segment is being carried along by an unprecedented surge in demand for high-end mechanical watches. Anyone wishing to position themselves in this segment must be able to count on proven expertise, and have the industrial resources with which to manufacture all a movement’s parts. It comes as little surprise that the name manufacture has been bandied about these past few years. Nor has the rise and rise of traditional watches happened by chance, as they convey the values and prestige of Haute Horlogerie.

Are manufactures an endangered species?

For a long time, it seemed the quartz crisis had struck a fatal blow to the manufacture, with only a handful surviving to tell the tale. This was to write off rather too quickly a sector which, over the past few years, has demonstrated its remarkable energy, in particular in the flourishing high-end segment. Once seen as a financial burden, a well-mastered production tool, particularly for manufacturing movements, has become a significant asset as a guarantee of authenticity along the road to watchmaking prestige. Increasingly, younger companies are taking example from their elders who led the way. Symptomatic of this are greater concentration of the sector, and a sweeping move into the Haute Horlogerie segment.

This profusion of fresh ideas and new creations using an increasingly integrated industrial tool (something more and more companies have adopted) shows how the profession has turned back the tide. When Nicolas Hayek created SMH (now Swatch Group) from the merger of Société suisse pour l’industrie horlogère (SSIH) and Société générale horlogère suisse (ASUAG), he saved the branch from going under and set the stage for industrial renewal, without which the brands had no viable future. During his recent run-in with the Swiss Competition Commission about deliveries of movement blanks to third-party companies, which will end in 2010, the Swatch Group CEO again made his position clear: without industrial resources tailored to manufacture movements, Swiss watchmaking will lose all legitimacy. That mechanical watchmaking is now following his example, or diktat depending on where one stands, is proof indeed that Swiss watchmakers have the resources to confirm their unique position in this particular branch of luxury. A position that has the support of a dense and almost exclusively dedicated network of suppliers. ■

See also:
Focus 1: Craftsmanship and Haute Horlogerie
Focus 2: Retail and Haute Horlogerie

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