The Turbine and Double Rotor models count among the bestsellers of this brand. CEO Fausto Salvi explains his current strategy, one that stands on solid ground.
WORLDTEMPUS – 3 July 2011
Interview by Louis Nardin, translation by Elizabeth Doerr
The Veloptuous Times tour might be over, but another element from Biel remains. Anders Modig and I benefited greatly from our visit to Perrelet, a brand based on two popular and strong models: the Double Rotor and the Turbine.
After having seen several CEOs at its helm in just a few years, the brand has now been managed by Fausto Salvi since November 2009. This man, who previously managed the watch department for Hugo Boss, brings a lot of experience from the worlds of finance, marketing and sales. His challenge now lies in leading this brand founded in 1995; it has belonged to the Festina group since 2005, which also owns movement and module maker Soprod and watch brands Leroy, Candino, Festina, Jaguar, Lotus and Calypso. Today, Perrelet manufactures 5,000 watches per year at an average price of 5,000 Swiss francs per watch. The watches range in price from 2,000 Swiss francs to a maximum of 8,000 Swiss francs.
Fausto Salvi: This brand disposed of a wide variety of assets through strong models like the Double Rotor, for example. But its price positioning was weak; certain countries weren't performing and the catalogue was too rich in references with something like 500 models. So I redefined the collections, revised the price structure, optimized distribution and balanced the marketing and communications. Now, we can even boast first points of sale in China dedicated uniquely to Perrelet, which were inaugurated in July and October.
What effects have these measures had?
Today, the catalogue counts 134 references. The number of countries in which the brand was present was reduced by ten in order to stabilize it at 35, but the distribution network remains under construction. We continue to conduct a policy of supporting our retailers and encouraging synergies between them and the brand. Perrelet will henceforth dispose of a solid, coherent base permitting us to work with key protagonists in the sector and sell watches at the same time.
How is your production organized?
We benefit from the synergies of the Festina group as the watches are all assembled and controlled in the Herbestwil workshops, near Soleure. For the moment, the movements come from ETA, but Soprod will be supplying us by the end of the year. All the administrative activities are concentrated in Biel.
What challenges within the Swiss watchmaking world do you face today?
I would say the growth of Swiss watchmaking and its production capacities. The double-digit rate of progression announced by several brands has surprised me, and I ask how this growth can be maintained. Work done by hand should be encouraged in the watch industry. To maintain it, to improve it, the current production volumes should have a quality worthy of Swiss savior faire. More interest in horological crafts needs to be created among the young generations and, perhaps this is even more important, in its industry. Asian suppliers aren't a solid alternative. Salaries are rising, control of work conditions is being accented, and production times remain long and complex given the distance without even mentioning quality problems. For all these reasons and because we should be concerned with the continuity of our own savoir faire, solutions need to be looked for by getting to know these crafts and demonstrating their value.
Interview by Louis Nardin, translation by Elizabeth Doerr
The Veloptuous Times tour might be over, but another element from Biel remains. Anders Modig and I benefited greatly from our visit to Perrelet, a brand based on two popular and strong models: the Double Rotor and the Turbine.
After having seen several CEOs at its helm in just a few years, the brand has now been managed by Fausto Salvi since November 2009. This man, who previously managed the watch department for Hugo Boss, brings a lot of experience from the worlds of finance, marketing and sales. His challenge now lies in leading this brand founded in 1995; it has belonged to the Festina group since 2005, which also owns movement and module maker Soprod and watch brands Leroy, Candino, Festina, Jaguar, Lotus and Calypso. Today, Perrelet manufactures 5,000 watches per year at an average price of 5,000 Swiss francs per watch. The watches range in price from 2,000 Swiss francs to a maximum of 8,000 Swiss francs.
Fausto Salvi, CEO of Perrelet, is in favor of actively promoting the watch world's specific handmade crafts and other know-how in danger of disappearing. © Worldtempus/Louis Nardin
Fausto Salvi: This brand disposed of a wide variety of assets through strong models like the Double Rotor, for example. But its price positioning was weak; certain countries weren't performing and the catalogue was too rich in references with something like 500 models. So I redefined the collections, revised the price structure, optimized distribution and balanced the marketing and communications. Now, we can even boast first points of sale in China dedicated uniquely to Perrelet, which were inaugurated in July and October.
What effects have these measures had?
Today, the catalogue counts 134 references. The number of countries in which the brand was present was reduced by ten in order to stabilize it at 35, but the distribution network remains under construction. We continue to conduct a policy of supporting our retailers and encouraging synergies between them and the brand. Perrelet will henceforth dispose of a solid, coherent base permitting us to work with key protagonists in the sector and sell watches at the same time.
The Double Rotor and Turbine collections have provided Perrelet with the necessary base to develop the brand. © Worldtempus/Louis Nardin
The Turbine and Double Rotor lines form the “face” of the brand. How are they going to evolve?
Effectively, these two lines have a strong identity without equivalent on the market. They became icons of the brand thanks their visibly moving components: the rotors and the “turbines”. Visible on the dial. At the same time, they are elegant and appealing, and perfectly predestined to strongly evolution. We are already preparing a special version for the USA, another dedicated to the world of poker, and another erotic watch. Our ladies models will also be expanded.
How is your production organized?
We benefit from the synergies of the Festina group as the watches are all assembled and controlled in the Herbestwil workshops, near Soleure. For the moment, the movements come from ETA, but Soprod will be supplying us by the end of the year. All the administrative activities are concentrated in Biel.
What challenges within the Swiss watchmaking world do you face today?
I would say the growth of Swiss watchmaking and its production capacities. The double-digit rate of progression announced by several brands has surprised me, and I ask how this growth can be maintained. Work done by hand should be encouraged in the watch industry. To maintain it, to improve it, the current production volumes should have a quality worthy of Swiss savior faire. More interest in horological crafts needs to be created among the young generations and, perhaps this is even more important, in its industry. Asian suppliers aren't a solid alternative. Salaries are rising, control of work conditions is being accented, and production times remain long and complex given the distance without even mentioning quality problems. For all these reasons and because we should be concerned with the continuity of our own savoir faire, solutions need to be looked for by getting to know these crafts and demonstrating their value.
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