Who could have even imagined that a virus could stop time? In Switzerland, the watch sector is now at a standstill. The biggest names in Swiss Made have decided to close the doors of their workshops and factories. The production sites are closed, in order to respect the removal measures decreed by the Federal Council and the Swiss Cantons.
Rolex and Patek Philippe closed
Rolex, Patek Philippe and Hublot were among the first to make this decision. Rolex has announced that its Geneva, Bienne and Crissier sites are closed until March 27. A date which can be postponed depending on the evolution of the epidemic and the recommendations of the authorities. The same is true for Patek Philippe. As for the brands of the LVMH group, Hublot has decided to close the production site of its Nyon factory until further notice. Tag Heuer just did the same on March 18. The Vallée de Joux, the historic heart of watchmaking, is on the front line, with houses like Audemars Piguet, closed at least until March 31: “in this period of uncertainty, the fact that people are safe is at the heart of our priorities. This is why we decided to close our production sites in Switzerland, as well as some of our offices and some of our shops, "explained the brand on Twitter. Chanel also announced that it had stopped production and gradually closed its sites in France, Italy and Switzerland for two weeks. Finally, on March 19, Bucherer decided to close its points of sale, as well as the Tourneau stores in the USA and around the world.
The Swatch Group in restricted activity
For its part, the Swatch Group, owner of Omega, Tissot, Breguet, Blancpain, Jaquez Droz or Harry Winston, has confirmed reductions in working hours ranging from 50 to 95% depending on the sites. In a somewhat special videoconference format, in front of an audience made up of 99 teddy bears linked to a charity work, Nick Hayek, president of the group, drew up an inventory this week: "It is a temporary situation, that our colleagues and customers in China got to know first, then things get back to normal. It forces us to change our habits, and that's a good thing. Slowing down allows us to think a bit before we do something, even if we have to react quickly. ”
"We remain focused on our long-term strategy, even responding to the crisis," said Peter Steiger, chief control officer, at his side at the conference. We review the situation every day, we adapt. Stores and offices are open in Asia. In Europe, most stores have had to close, and our teams are operating on a reduced basis. In the USA, it's almost like in Europe. For the production sites, not for lack of components, but because the teams, coming from Italy or France cannot come, the concrete situation is that 42% of our production teams are in reduced activity. By the end of the week, 60 to 70% of the production sites will be in reduced activity. ” Has production been suspended? "Yes, for a few days, it changes every day," confirmed Nick Hayek. But we do not have factories closed, only certain parts, so that the employees are safe. Of course, sales are strongly affected by this pandemic, for all products. In February and March, sales were strongly affected, after good sales in January. Let us not forget that a year has 12 months and that we are talking about two truly exceptional months. I am also a client, not motivated, preoccupied with something else, with other priorities at the moment. And these priorities will change once the crisis is over. We have seen this so many times. How quickly, or not, will the rebound come? We don't know, but it will happen, that's for sure. ”
As a result, almost the entire watchmaking sector is currently at a standstill due to the epidemic, not only in Switzerland but also around the world. Upstream, the many small subcontractors also had to cease their activity when, downstream, the shops and points of sale closed their doors, between increasing confinement and absence of customers, especially Chinese. This unprecedented cessation of watchmaking activity will clearly have repercussions in the weeks and months to come, particularly for temporary workers and cross-border workers.
Already in the early days of the coronavirus epidemic that had first affected China and Asia, the Swatch Group had canceled its Time To Move presentations in Zurich, for the press and its resellers. Then, at the end of February, the Baselworld trade fair in Basel was canceled, and will now be held in January 2021, as well as the Watches & Wonders trade fair (formerly the Salon International de la Haute Horlogerie), which was to be held from April 25 to 29 in Geneva. And if several brands (Breitling, Girard-Perregaux, MB&F, Ulysse Nardin, De Bethune, Urwerk…) had, under the aegis of Jean-Christophe Babin (Bulgari), announced the Geneva Watch Days for the end of April, the idea has finally abandoned or, at least, postponed until next September. Similarly, across the Atlantic, the JCK Watch and Jewelry Show in Las Vegas, scheduled for June 2-5, are also postponed indefinitely.