How is Hublot doing?
We passed through the crisis quite well because we were still growing while the industry as a whole was shrinking. We had yet another record year in 2017 with growth of 12 per cent in sales but there are also some explanations for this. For example, China is by no means our biggest market, as it is for many other brands. We have been building the brand in China for over 10 years now and it is now starting to take off with the new generation of Chinese millennials. So growth came last year from Greater China (China, Hong Kong and Macau) where we grew 30 per cent, but from a much lower base of course, since Greater China only accounts for 9 per cent of our total sales. Our objective is 30 per cent, so there is still plenty of potential. The Chinese customer seems to be looking for something different and I think with the strong identity of our products and our art of fusion we are well placed to serve them.
How do you target the millennial customer, whether in China or elsewhere?
I think our concept resonates with millennials because our watches connect them with the future rather than with the past. This is not specific to China but to the consumer in general. If people are engaged with what we are doing in the worlds of football, music or art then it attracts them to the brand because they perceive it as a cool brand.
Do you think Hublot can connect more easily with this type of customer than a brand with a century or more of history?
Of course, being a young brand we don’t have 200 years of history, which is why we have developed our own particular concept with the art of fusion. I think brands repeating the past and re-issuing models from 50 years ago is an issue. We need some evolution in the industry, so why not use ceramic and sapphire to make watch cases? This is technology that we have today but which didn’t exist 50 years ago. For us it was evident to use this, but for brands with over a century of history maybe it’s not as obvious.
It’s an important year for Hublot with the World Cup. What do you have planned and what impact are you expecting for the brand?
When we started looking at marketing with Mr. Biver back in 2004 we asked ourselves which platform we could use where we would be the only watch brand present. Golf was already being used, as was tennis, but we thought football could be an interesting platform for a watch brand. Experience has shown that we were probably right! Every four years we have a huge visibility for the brand. At the last World Cup in Brazil we had 21 minutes of visibility on the fourth official’s board over one month, reaching a cumulated audience of billions. If people recognise Hublot as a watch brand, even if they cannot afford to buy our watches, then that is already a great achievement.
Activation of our football sponsorships also allows us to offer an excellent experience for customers. We will be inviting around one thousand people to the World Cup in Russia and we will have a kick-off event at Baselworld with a “Match of Friendship”. It will also be the first World Cup where the digital and online audience will be even bigger than television. There will also be twelve national team coaches wearing Hublot watches on the sidelines, which offers yet more great visibility for the brand.
Can we expect any new watches linked to the World Cup?
The referees will wear a Hublot watch but it will be electronic, a special smart watch developed specifically for the World Cup. We will reveal this FIFA edition at Baselworld and produce just 2018 watches along with a specific application dedicated to the World Cup.
What are your thoughts about Baselworld this year?
Since they split the dates and Baselworld and SIHH have been held at different times of the year it has always been difficult. It would be great if they could find a way to get back to doing both shows on the same dates. That would be the most practical solution for our retailers. There will be no major impact for us at Baselworld this year. It’s good that they have shortened the show by two days and I can see increasing competition between the two shows, but the Swatch Group, Rolex and Patek Philippe are still supporting Baselworld. Whether things will still be the same in ten years is a different matter, however.
There seems to be a trend to more conservative designs, smaller case sizes and accessible prices this year, does the same apply to Hublot?
Not really. We need more sport-chic models because people don’t necessarily want a Big Bang Unico as their first Hublot. People think that the Chinese customer is looking for classic designs, but this is not true for the younger customer, who is looking for something a bit crazy and with a strong identity.
E-commerce is growing within the watch industry and there seems to be a demand for it. What is your view on e-commerce for Hublot?
I think when people are looking to buy a watch online they are looking for a discount. Chrono24 is a good example of this. You may see discounts of 10-20 per cent and in some cases even more. I don’t think simply saying that you are launching an e-commerce site is enough. It has to be part of a specialist solution with experienced retailers that is implemented in a professional way. If I just put a watch on sale on a site I don’t think people would buy it.
What is your outlook for the brand?
Hublot is about celebrating the art of fusion and we are geared towards the future. We are working a lot on research and development into movements and materials. So there is a genuine watchmaking substance at the brand, despite our young age. We have also worked hard on vertical integration and are continuing to do so. We make around 15,000 Unico movements per year and would like to reach 30,000 one day but you cannot do that from one day to the next. We inaugurated our second building on the site in Nyon in 2015 and we have plans for a third one in the near future. This is not necessarily to produce more movements but to have a greater level of vertical integration, both for movements and for case manufacturing. For instance, all our ceramic and sapphire cases, as well all models linked to particular partnerships, are made in-house.
As part of your job you could be at a football match one day and at a Grand Prix with Ferrari the next, or at any of a number of other events where Hublot is a partner. At the same time you have to run a major watch brand. Do you get much free time?
My private life and professional life are more interconnected than ever. Even on my holidays, for example, I will be invited to cocktail receptions by retailers. The only time I really get to enjoy my private life is when I’m not travelling and I can stay at home in Lausanne. I enjoy cooking so I will invite just a few friends around. Those are my 100% private moments.
