How An Ex-Apple Executive Spearheaded The First MBO Of Switzerland’s High-End Watchmaking World

In a historic, first-of-its-kind administration buyout for horologery, Kering – the French multi-national group with 15 manufacturers underneath its wing – offered its two Swiss watch manufacturers in January this yr: Ulysse Nardin and Girard-Perregaux. In an unique interview, CEO of the duo and chief overseer of the transfer, Patrick Pruniaux, reveals the pondering and the imaginative and prescient behind the transfer, in an unique interview for Forbes readers held at Watches & Wonders Geneva this previous week.

What was the rationale behind this headline-grabbing MBO?

Kering had expressed a want to concentrate mostly on fashion brands to make it potential to succeed in a essential measurement on the size of a gaggle that achieves gross sales of greater than 17 billion euros. Kering additionally has a historical past of administration buy-outs – typically profitable ones. When the group knowledgeable me of its want to promote, I mentioned I hoped to be in place to make a buy-out proposition. Why? As a result of I’ve immense religion in the way forward for these manufacturers.

I’ve loved, and actually appreciated, Kering’s confidence and help in putting me on the helm of those two excellent manufacturers. However on a private stage, it’s additionally proving to be an distinctive undertaking in that it has allowed me the liberty to make use of my expertise and comply with my instincts in unprecedented methods. I’ve been overwhelmed by the goodwill and the thrill of all gamers concerned in bringing these two manufacturers to the forefront of high-end watchmaking. What we achieve is independence, and that’s a really thrilling factor to have the ability to look ahead to in at the moment’s world of worldwide conglomerates.

The perfect leaders are inclined to have nice groups round them: are you able to inform us a bit about yours?

Internal agility is important for a inventive local weather. At Ulysse Nardin and Girard Perregaux, we consider in “design pondering’ that’s, encouraging our groups and fostering a tradition of innovation. Everybody’s opinion is necessary, and each concept is price contemplating. We select our crew members with nice care and every member has their say, it doesn’t matter what their place is within the firm.

The COVID disaster has pressured us to assume otherwise, to adapt and to be dynamic. Within the luxurious sector generally, and within the watch enterprise particularly, you possibly can not take something as a right. Additionally, you have to have the capability to investigate each scenario objectively to enhance the longer term. And that entails pondering in a collective mode to go quicker. These gymnastics, fostered within the two entities of Girard-Perregaux and Ulysse Nardin, are sometimes perceived from the skin to be the emanation of a “start-up” spirit. However it’s simply Darwinism at play within the watch trade! It boils all the way down to having good widespread sense and willpower, that are each expertise that require coaching, and qualities that my groups deliver to the desk.

Have you ever at all times been an entrepreneur?

Having been educated each in France and Stanford College, I’ve discovered a world strategy to creativity all in all. Then, I used to be lucky sufficient to be concerned within the constructive evolution of a number of manufacturers [including Apple], each in Europe and in the USA, and I firmly consider {that a} tradition of innovation and curiosity are essentially the most valuable commodities for rising a profitable firm.

Sure, I’ve an entrepreneurial spirit, which has led me to the place I’m at the moment. That mentioned, I consider that for achievement to happen, good management is crucial ingredient, however the enthusiastic participation of the crew is the actual set off.

Ulysse Nardin and Girard Perregaux are two manufacturers with distinct histories. However how culturally totally different are they?

Each Ulysse Nardin and Girard-Perregaux have their share of custom: the Macaluso household on the one aspect, Rolf W. Schnyder on the opposite. Rolf – the person behind the revival of Ulysse Nardin in 1983 – had a mantra: It’s important to encourage creativity and develop agility in an ultra-competitive atmosphere. He was clearly proper, and it requires being delicate and responsive on the identical time. To make sure success, freedom of motion is a decisive key issue. In reality, Ulysse Nardin calls itself “the producer of freedom.”

These two manufacturers are very totally different, however they’ve extra in widespread than one would think about. Each are primarily based within the small industrial cities of Le Locle and La Chaux-de-Fonds within the Swiss canton of Neuchâtel, and each are devoted to their manufacturers; jobs throughout the corporations are handed on from technology to technology. In fact, they’ve totally different histories and tales however by way of the supreme high quality of watchmaking, they’re very a lot alike.

Relating to their markets, the USA is a really promising one. In China, there may be quite a lot of curiosity within the Seventies-designed Laureato (Girard-Perregaux) and the FREAK (Ulysse Nardin), for instance. Chinese language patrons search historical past, and they’re delighted with the distinctiveness and authenticity of our manufacturers. Our manufacturers’ fashions are hardly ever their house owners’ first watches. To put on a FREAK is to make an announcement.

Since 2017, you’ve got woken up these two manufacturers. What have been the teachings learnt?

I consider in the way forward for precision watchmaking. Having labored for bigger manufacturers – which have been extra taken with “superior expertise”- I believe the way forward for the watch trade lies in handcrafted, rigorously made and unique timepieces. I’ve discovered quite a bit from my very own private progress and am concentrating on what I’m positive is a really totally different future. Upcycling and innovation are the path by which we’re heading for a sustainable, profitable future. In a nutshell, it’s about long-lasting relevance, which is – on the finish of the day – the very ethos of luxurious.

How do you outline your management model?

All-inclusive. I’m at all times very current however empowering as properly.

Think about your self in 20 years’ time, trying again: what do you think about to be your proudest legacy?

Most likely bringing again the ideas of heritage, custom and innovation through an all-in-one imaginative and prescient of a future by which objects are valuable and never merely disposable. I’m additionally happy with the sustainability we now have dropped at our manufacturers – discarded fishing nets turning into watch straps and instances through recycling, shark conservation and plenty of different of our endeavors. The long run will likely be about cherishing traditions, eschewing disposable objects and giving better worth to hand-crafted treasures.

What’s your imaginative and prescient for the manufacturers?

Extra of the identical. Our watches are distinctive items of artwork. It’s straightforward to obtain different watches from bigger producers however ours are produced in very restricted editions, and particularly so. That is to ensure that every watch to really feel like a treasure – an heirloom – and in order that our watchmakers can concentrate on creating the most effective, not essentially the most.

Wanting again, 2001 noticed the launch of the very first FREAK watch, which was one of the crucial modern fashions of its time and a milestone for the model. This revolutionary timepiece broke free from all of the conventions of watchmaking historical past: no arms, no dial and no crown. It was, indubitably, a groundbreaking innovation. This yr, we’re broaching the market with a brand new iteration of the FREAK: the FREAK S, which is a pure technological bomb resembling an area vessel with twin reactors!

Within the subsequent couple of years, we’ll witness the rise of each manufacturers. And they’ll grow to be an intensified model of what they already are: inclusive, and but a best-kept secret on the identical time.