We remember that, a few years ago, an American essayist, Francis Fukuyama, predicted the ‘end of history’. In his opinion, the fall of the Berlin wall opened the way to a universal consensus about liberal democracy. Since then it is clear that our ‘philosopher’ was wrong. Instead of a consensus, September 11, 2001 happened. And, just ask the people in Iraq what they think about the ‘end of history’ and liberal democracy.
In a lesser and, of course, less dramatic measure, Swiss watchmakers have also maintained an illusion of ‘consensus’. Absolutely certain that the game had been played, they believed that Swiss watchmaking would reign supreme for eternity. But History is constantly being re-written. It is ever changing. It is always full of surprises.
Let’s take, for example, the recent acquisition by the Chinese Swiss Peace Mark Group of the manufacturing pole, STM. It includes, notably, Soprod, which produces about 200,000 haut de gamme mechanical movements per year (most on an ETA compatible base, at least for now) and SFT, the world’s third largest producer of quartz calibres. SFT is also making advances into the technologies of silicon, micro-injection, and in the sector of automatic mechanical movements. In addition, the company is capable of producing its own balance spring, the strategic heart of the watch.
When one realizes, moreover, the manufacturing power of Peace Mark, in China, and its pivotal role in the distribution of luxury Swiss brands in China (we will return to all of these subjects in detail in our next issue), we have to say that History is on the march. No one can predict what will happen over the long term in timekeeping.
The balance of power is continually evolving. In the case of Peace Mark, the entry into the ‘stronghold’ of Swiss watchmaking by a player from China may lead to new synergies. The Chinese are now capable of producing haut de gamme ‘Swiss Made’ and providing it to the Swiss brands that they themselves distribute in China. This can be seen as a form of ‘control’ that they exert at both the beginning and end of the supply chain. In other words, it is a form of ‘verticalization’ that no one had previously thought about.
But changes in the balance of power are also taking place within the ‘stronghold’ itself. The recent acquisition by Richemont of the manufacturing pole of Roger Dubuis (savoir-faire, machines, tools, and personnel) has re-shuffled the cards in the high-end sector. It also foreshadows a rise in strength and autonomy of Cartier, Panerai, and the other brands in the group.
We used to think that the Swiss landscape, having been strongly restructured during the last decade, was more or less fixed (or had reached its ‘maturity’ depending on the point of view) around certain strong and dominant poles.
With a few throws of the dice, however, the game has been transformed. But as the French poet, Mallarmé, said “One toss of the dice will never abolish chance.” History is therefore far from being terminated. It is unceasingly being re-written. And, it is a very clever person who already knows the next chapters.

Photo: The 1010 Limited Edition, pen by Caran d’Ache, “Celebrating the special genius of watchmakers”.


Source: Europa Star October-November 2007 Magazine Issue