Chinese puzzle
Looking at the mainland market today and trying to figure out where it will go is much like the old story of different views of an elephant giving you different assessments. In this case, however, the elephant would be young, growing quickly, learning more and be different from others around it.
Many watchmakers and brands have responded or tried to respond quickly to what they saw or heard, sometimes anecdotally. Many watches were supposedly produced for the Chinese market, but they all seemed to be done in batches, with specifics and directions that changed as it was realised that perhaps perceptions weren't exactly spot on. The mainland market is huge and growing, but it is also acting in many ways just like the traditional horological market always has, though at a much faster pace. 'China is just opening up, but will see maturity in as little as a few years,' predicts Hublot managing director Ricardo Guadalupe.
Some more outspoken CEOs have been quoted as saying that they will not produce watches for the mainland market, but rather that the market will come to understand their watches. As startling as this may sound, it does point to one very important idea: to do what you do well and to remember that not everyone will get you right away. The present truths are that buyers want classic luxury timepieces; they want a history that speaks of everything from patience to longevity, and that watches need to speak to others of how the wearer wishes to be perceived. None of these are peculiar to the mainland market.
Buyers want luxury watches to show that it is a luxury they can afford, that they have taste and don't need a rugged tool beside them all the time. Watch companies are now somewhat forced to look not at the high-end complications and expensive pieces, but at the clean, classic basics. The fact that more and more three-hand watches are being developed and put on show is a good thing, and they sell at all price points on the mainland.
The fact that these watches are deviating from the trend of hugely oversized watches is also a good thing. Chinese wrists may be smaller, but it is a push in the right direction, according to many insiders.
Anyone who thinks you need the big numbers and wide face of a pilot or sports watch need only look at what many consider the most beautiful and balanced watch face ever produced, the classic Patek Philippe Calatrava, to see that balance and design are far more important than size.
The Geneva company is an example of getting China right, not by doing what everyone else is doing, but by doing what it is extremely good at. 'Today, China definitely holds the most promise for us in Asia,' says Patek Philippe president Thierry Stern, while stressing that the company could not increase production to meet demand because of the levels of quality it demands. 'Our main focus is to produce watches that will last in the long term in terms of aesthetics, quality, reliability and lasting value.'
Like other parts of the world, the mainland's different areas may require different strategies. These differences may well be handled best not by producers, but by those in charge of selling pieces.
The more recent global reality is that new buyers begin with more sporty pieces. Sports watches, pilots' watches, dive watches have acted as a buyer's introduction into a brand, but this has not been the case on the mainland.
Many modern brands have their DNA in being tough tools, even though they may now be luxury and collectable pieces. Brands such as Officine Panerai may be looking at a tough time on the mainland because their products are large, sporty, even military. But they are not moving to make more elegantly styled pieces like their competitors.
Panerai is sticking to its guns. 'The strategy in China follows very much our global strategy to maintain our niche position and establish our own strong style throughout the world by means of consistent positioning of products and the market,' says Jean-Sebastien Gerondeau, managing director of Panerai Asia-Pacific.
Looking at the mainland watch market is like looking at the historical global picture, only at fast forward. There will always be high-profile purchases of high-end pieces, bejewelled watches and the overly gaudy, as there will be anywhere. Brand and brand names will be a key point, but this is also not exclusive to China and, in many ways, just speaks of both the need for status and the need for reliability. A great history sells, as it has and does elsewhere. Right now, classic, simple luxury watches are doing very well across the board, which may be limiting to many. Look at things this way, however. They have nowhere to go but up.
