Editor’s Note
The recent wave of high-profile departures from Baselworld, including major brands like Rolex and Patek Philippe, marks a pivotal moment for the watch and jewelry industry. This article revisits the 2020 announcements and the 2018 exit of the Swatch Group, highlighting the ongoing challenges facing traditional trade shows as brands reassess their strategies in a rapidly evolving market.
On April 14, 2020, the MCH Group, the parent company of the Baselworld organizing committee, received the announcements of withdrawal from Baselworld from Rolex, Patek Philippe, Chanel, Tudor, and Chopard “with great surprise.” A similar event had occurred two years earlier, on July 30, 2018. At that time, then-CEO René Kamm commented on receiving the notice of withdrawal from the Swatch Group, “We cannot hide our surprise, as we were just about to tackle the challenges with a new team and innovative ideas.”
Now, looking back on these developments, we wish to examine the future of watch exhibitions in Switzerland.
Originally published on watchtime.com
Text by Roger Ruegger
On April 14, following the withdrawal announcements from five major watch brands, the MCH Group stated: “We have concluded that the discontinuation of participation by these brands has been under consideration for some time. Financial matters, such as the refund of participation fees due to the cancellation of Baselworld 2020, must be considered.”
The MCH Group’s reaction was noteworthy for two reasons.
• First, in a consensus-based society like Switzerland, the watch manufacturers adopted such a confrontational stance. This rarely happens. Switzerland is a country with a long history of democracy, one that does not favor burning bridges without special justification.
• Second, the MCH Group had not anticipated this development and prepared countermeasures. In this case, the element of “surprise” was treated almost as if it were on par with the Swiss government’s ban on large gatherings to combat the spread of COVID-19 (February 28, 2020), ultimately leading to the unprecedented postponement of the fair in its history dating back to 1917.
Among those announcing their withdrawal, official statements were also issued from watchmakers who had long held a significant presence at Baselworld.
The history of Baselworld began in 1917 as a department of the “Swiss Industries Fair.” (Image provided by MCH Group)
The blow to Baselworld continued on April 17. The LVMH Group, parent company of TAG Heuer, Hublot, Zenith, and Bulgari, also indicated its intention to withdraw. This prompted the MCH Group’s executive board to “make a decision within weeks regarding the continuation of and investment in Baselworld.”
As a result, Basel lost a major fair with a 103-year history and approximately 80,000 visitors. Simultaneously, Rolex, Patek Philippe, Chanel, Tudor, and Chopard moved the location of their watch fair to Geneva, the heart of watchmaking. They planned to collaborate with the Fondation de la Haute Horlogerie (FHH) for “Watches & Wonders Geneva (formerly SIHH)” at Palexpo in Geneva in early April 2021. Palexpo is known as the venue not only for the former SIHH but also for events like EPHJ (the Precision Engineering and Metalworking Trade Fair) and the Geneva Motor Show.
Palexpo in Geneva. A 106,000 square meter venue adjacent to Geneva International Airport and a railway station.
The FHH simultaneously announced a new online platform on April 24, 2020. On the official Watches & Wonders Geneva website (https://www.watchesandwonders.com), 30 brands presented their 2020 novelties. Ironically, the MCH Group had spent over a decade building a similar digital platform and had just decided to allocate a significant budget for its further development at Baselworld 2020.
In short, Baselworld has few options left.
• How to generate profit will be a challenge for the MCH Group. There might be a path forward for a smaller (and less costly) jewelry and luxury-focused fair based in Basel. A digital platform will probably work, but I don’t think it’s a way to present Baselworld as a brand.
• It would be difficult for Baselworld to organize another fair outside Switzerland. Events involving end-users like “WatchTime New York” and regionally focused events like “Dubai Watch Week” have been on the rise in recent years. There are also entities like Watches & Wonders Miami (or Hong Kong).
• Brands like Breitling, which has frequently held its own events, and the six brands of the Swatch Group (Harry Winston, Breguet, Blancpain, Jaquet Droz, Glashütte Original, Omega), which launched “Time to Move” in 2019, have already established their own formats. Given the competitive dynamics between Geneva and other parts of Switzerland, it seems unlikely that the Swatch Group would join the fair at Geneva’s Palexpo (and likewise would not return to Baselworld). However, smaller independent brands will likely attempt to benefit, officially or unofficially, from a global fair in 2021. The biggest question is how open the new fair will be to non-Swiss brands like Seiko, Citizen, and Casio, and how this imbalance will be addressed.
• The four brands of the LVMH Group (TAG Heuer, Hublot, Zenith, Bulgari) are considering holding an “LVMH Watch Week Dubai” or in Geneva in 2021 (for 2020, “Geneva Watch Days” is scheduled from August 26 to 29).
The luxury watch industry needs a powerful global platform to promote watchmaking more than ever. Figures provided by the Federation of the Swiss Watch Industry (FH) tell the story: “Swiss watch exports in March 2020 decreased by 21.9% year-on-year, a drop of approximately CHF 1.4 billion. A further deterioration is expected for April. The decline in volume is even more pronounced than in value. Particularly for stainless steel wristwatches, numbers fell by about half, a decrease of around 700,000 pieces to a monthly total of 900,000.”
The FHH accelerated the digitalization of Watches & Wonders, launching watchesandwonders.com on April 25.
While Baselworld has unfortunately missed its chance to defend its unique position in recent years, more dynamic organizations like the FHH have realized new ideas. It remains to be seen whether this new situation is open enough to unite the diverse players in the watch industry. We hope that more people will visit Geneva, Switzerland’s second most populous city, and that it will open its doors wider than Basel (considering that Geneva’s motor show already attracts around 600,000 visitors, logistical issues seem unlikely).