Audemars Piguet recently launched more than a dozen new models and predictably it was the Royal Oaks that got the most attention. But the most impressive new release was unquestionably the Code 11.59 Universelle. It’s a grand complication that boasts multiple complications most cleverly executed, in a remarkably compact case – the size of the watch is an achievement in itself.

Though the Universelle is positively slender for a grand complication, it’s still a large watch. But criticising the Universelle for its somewhat ungainly looks is to miss the point completely. Just like a mid-engine Ferrari will never be a roomy vehicle capable of conveying four adults in comfort, a grand complication will never be a svelte watch. Even Francois-Paul Journe, a legendary talent who has long specialised in slim complications, needs a lot of volume to contain his most complicated watch, the double-sided Astronomic Souveraine.

Grand complications, or more specifically mega complications, like the Universelle, are never pretty. That’s simply a matter of necessity – the mechanical complexity inevitably results in an enormous case and confusing dial. The F.P. Journe Astronomic, Patek Philippe Grandmaster Chime, and Vacheron Constantin Tour de l’Ile are all equally large and confusing. The Astronomic is the smallest of the lot and it’s still 44 mm by 13.7 mm. And the Grandmaster Chime is a titanic 47.7 mm by 16.07 mm.

I can confirm the Grandmaster Chime is titanic no matter how you measure it. I had the fortune of wearing a one for a while indoors. Poor ergonomics and an intimidatingly complex interface are its defining features, but the watch is monumental, both in terms of size and complications. It feels like the kind of watch for someone who is truly master of his own destiny, the kind of individual who doesn’t have to worry about elections or shareholders.

Watches like the Grandmaster Chime are impressive objects for the wrist, which makes them status symbols. Even at a distance, they are evidently massive, heavy, and intricate. That’s why the Grandmaster Chime is the ultimate watch for a certain class of collector, instead of an ultra-light Richard Mille.

The Patek Philippe Grandmaster Chime ref. 6300G

In contrast, the Universelle is much more wearable. It does not feel like a watch with two dozen complications inside (we’ll get to the complication count later).

In fact, the Universelle is probably too wearable. I feel it is insufficiently over-the-top – not imposing enough, not elaborate enough, and not obvious enough. Relative to the competition, the Universelle is to subtle, which will circumscribe its appeal (admittedly a moot point since only seven will be made this year and only double that next year).

But the Universelle should be maximalist – either classically baroque or hyper technical – enough to be instantly recognisable at a distance. That because grand complications are statement objects, even historically. As a matter of fact, the inspiration for the Universelle was just that – maximalist.

At the centre of the Audemars Piguet Museum sits l’Universelle

The 1899 timepiece known as l’Universelle was shaped like a pocket watch but is gigantic it would never fit into a pocket, making it essentially an immovable timekeeper, the ultimate desk clock.

Interestingly, l’Universelle was originally presented in a yellow gold case, as it is now exhibited in the Audemars Piguet Museum. But its prior owner, London-based watch dealer Marcus Margulies, commissioned a platinum case for the pocket watch, giving it a marginally more restrained aesthetic. But AP has since returned the watch to its turn-of-the-century glory by reinstalling the original yellow gold case.

Ingenious and concise

While its comparatively diminutive case might suggest it’s a lesser grand complication, the Universelle is decidedly not. Instead, the technical merits of the cal. 1000 within are substantial.

It manages to cram everything – almost two dozen complications – into a relatively compact package. The cal. 1000 is under 9 mm, while the case is 15.55 mm. And remember that the case is thicker than a conventional watch because it has a triple-layer back made up of a sapphire window followed by the Supersonnerie double back.

To put those measurements in perspective, the Universelle is a smaller watch than the Lange Triple Split that has a 15.6 mm case and 9.4 mm movement. Even though the Triple Split is likely the most advanced chronograph in modern watchmaking, it is not as complicated as the Universelle.

The cal. 1000 manages to do that with concise engineering that streamlines as much as possible. Some of the smart ideas are borrowed from other AP watches, like the extra-flat perpetual calendar mechanism derived from that in the Royal Oak Perpetual Calendar Ultra Thin. So the 48-tooth month wheel for the calendar, for instance, has a single layer of teeth.

The open-dial version of the Universelle

But with more space available, the cal. 1000 improves on the complications even if original idea was taken from another movement. As a result, the perpetual calendar does one better and operates on a 400-year cycle – meaning it needs adjustment once every four centuries – a substantial advance over the 100-year cycle of a typical perpetual calendar.

But possibly the most notable is the split-seconds mechanism. Historically stacked upwards and positioned under the rotor in automatic chronographs, the split-seconds has always added substantial height to a chronograph.

In the cal. 1000 the split seconds is elegantly positioned: the mechanism is smartly contained within an aperture in the rotor, reducing the movement height by 1.5 mm according to AP technical chief Giulio Papi. While 1.5 mm might seem trivial, it’s 17% of the cal. 1000 thickness of 8.75 mm, equivalent to eliminating one floor from a five-storey building.

The Universelle in profile

And the cal. 1000 is easy to operate. Its complications can be accessed in an intuitive and straightforward manner thanks to a practical interface. Add to that 20 m of water resistance and the Universelle is a surprisingly practical watch.

The cal. 1000 is also constructed to minimise the potential for user error. Essentially every function in the watch can be activated, set, and adjusted without fear of breaking something. This robust approach was historically missing in grand complications and even mere complications, though it is gradually becoming more common.

But as is expected for such a complex movement, the cal. 1000 does contain compromises.

The grande sonnerie, for example, is installed on the base movement. But unlike other add-ons to the cal. 1000 that a recent builds, the grand sonnerie is the same mechanism found in the AP grande sonnerie movement from the mid 1990s. It’s a strong performer, especially when combined with the Supersonnerie double case back, but one can reasonably wish for something new given the cost and positioning of the Universelle.

And then there’s the less-than-stellar view from the back. The full rotor is an accomplishment in a movement as complicated as this, but it obscures most of the rest of the movement – there’s a lot going on inside but little of it can be admired. At the same time, the movement finishing is monochromatic, resulting in a lack of contrast that leaves the details difficult to discern.

The cal. 1000 under the hinged Supersonnerie case back. Image – Audemars Piguet

A suite of movements

From a wider perspective, the cal. 1000 is illustrates AP’s cohesive movement strategy. At its heart the cal. 1000 shares the same architecture as the cal. 4401 chronograph movement but enhanced with add-ons like the grande sonnerie and split-seconds. Being able to develop a base calibre that can accommodate all that is an achievement in itself.

As a result of the shared platform, some of the complications in the cal. 1000 are also found in other movements. The Royal Oak Concept Split-Seconds Chronograph GMT shares the base calibre and also the split-seconds mechanism.

The cal. 4401, a relative of the cal. 1000

Granted, some collectors might frown at a top-of-the-line watch sharing the same underpinnings as the modest Royal Oak Chronograph, but in truth a majority of grand complications are powered by movements derived from other movements or movements that spawn other calibres.

The Patek Philippe ref. 6301P Grande Sonnerie, for example, is equipped with a movement derived from the base of the Grandmaster Chime, while the Vacheron Constantin Tour de l’Ile gave rise to a range of more modest complicated watches, including several one-off double-face watches.

Tallying the complications

According to AP, the complications count in the Universelle is 23 – and it is just that. In my short years observing the watch industry it is inevitable that the complications count of a new grand comp is criticised for being misleading.

The method used by AP to obtain the number breaks down what is typically regarded as a single complication into its constituent parts, like a perpetual calendar being five complications – day, date, month, moon phase, and year – instead of just one. But that’s exactly how it has been done since at least the 1980s.

The Patek Philippe Calibre 89 of 1989 has 33 complications, a number derived with the same methodology. And the same goes for the Vacheron Constantin Tour de l’Ile of 2005 (16) and the more recent F.P. Journe Astronomic (18). And even when “scholars” retroactively dissect the Henry Graves Supercomplication, the 24-compliation tally is arrived at in the same way.

The Calibre 89

A technically-minded collector, however, might rightly dispute one particular mechanism in the Universelle – the tourbillon. As the sharply discerning owner of the Vacheron Constantin Vermeer grande sonnerie told me, his pocket watch boasts the pinnacle of traditional, elegant complications, but “not counting the tourbillon, which to me isn’t a complication”.

Historically, the tourbillon was considered a device to aid timekeeping, much like an overcoil hairspring or bimetallic balance, neither of which are considered complications, even by the most imaginative marketer.

That has changed over time in favour of the tourbillon. While Patek Philippe did not include the tourbillon in the complications count of the Calibre 89 in 1989, Vacheron Constantin and F.P. Journe did for the Tour de l’Ile and Astronomic respectively. In other words, in the context of contemporary watchmaking, the tourbillon is always accepted as a complication so the 23 complications in the Universelle is correct.

Omega just announced a calibre that sets a new standard for chronometry thanks to a proprietary silicon hairspring known as Spirate. With a promised daily rate of 0/+2 seconds, the new movement set a new benchmark thanks to a silicon hairspring that can be precisely adjusted thanks to its patented form.

The shape of the hairspring allows for diabolically fine adjustment – the watchmaker adjusts the attachment point of the hairspring via a micrometric screw on the balance bridge –  making it possible to obtain a rate precision never before achieved for a mass-produced movement.

The Spirate hairspring attached to the Omega adjustable mass balance

The importance of chronometry

In the past, chronometer competitions conducted by observatories in Geneva, Neuchâtel, London, and a handful of other European cities were a platform for watch brands to prove their mastery of time measurement, with the prize winners declaring themselves “master chronometers”.

The observatory contests were ended soon after Seiko starting sweeping the board with its mechanical chronometers. And in any case, the accuracy of a mechanical watch has rarely been of importance since 1969 when Seiko launched the first quartz wristwatch. Quartz standardisation made it possible to surpass the precision of the finest mechanical chronometer movements by a factor of at least 10 – at a far lower cost – eliminating the functionality necessity of a precision mechanical movement.

A Patek Philippe tourbillon pocket watch that was tested by the Geneva observatory in 1931 and claimed first prize

Today, there are only a few brands that have invested enough to stake out a significant position in mechanical chronometers. Many brands claim chronometric excellence, but few prove it with official certification such as that offered by Contrôle Officiel Suisse des Chronomètres (better known as COSC), which certifies only the movement before it is cased. Other institutions arguably offering a more comprehensive certification by testing and certifying complete watches, including the observatories at Geneva and Besançon.

But perhaps the holy grail of chronometric testing is the double certification known as Master Chronometer. First adopted by Omega, Master Chronometer combines COSC testing of an uncased movement followed by testing of the complete watch by a lab overseen by the Swiss Federal Institute of Metrology (METAS), a process that includes testing the magnetism resistance of the watch up to 15,000 Gauss. Almost a decade after the certification was launched, there are only two brands that offer Master Chronometer watches: Omega and Tudor.

The Tudor Black Bay Ceramic, the brand’s only Master Chronometer

The historical chronometric champion

Rolex was a pioneer in adopting chronometric excellence as a key element of its marketing, ever since it began labelling the dials of its COSC-certified watches with the declaration “Superlative Chronometer Officially Certified”. But because COSC tests only the finished movement without case or dial attached, every finished Rolex watch now undergoes an additional chronometry test performed by Rolex itself. The process tests the entire watch to a more stringent level than COSC standards, making it a double certification of sorts akin to Master Chronometer.

Known as Superlative Chronometer, in-house Rolex certification criteria demands a maximum deviation of +2/-2 seconds per day, which translates into a maximum range of four seconds. COSC, on the other hand, requires just +6/-4 seconds a day, equivalent to a range of ten seconds, which is derived from the ISO 3159 standard that defines a “chronometer”.

The only downside is the fact that the testing of the complete watch is done is in-house – Rolex tests its own watches by itself – which means it lacks the stamp of approval of an independent state authority, which Master Chronometer has thanks to METAS oversight.

The battle continues

In a provocative move, Rolex embarked on Master Chronometer certification in May 2021, but only for a single model from its subsidiary brand Tudor. Though trivial on its face, the move was like meant as a message for Omega and its parent Swatch Group.

The debut of the Tudor Master Chronometer implied Rolex did not need an official, external certification to prove its claimed supremacy in chronometric excellence. Moreover, it indicated the Master Chronometer certification was easily within reach of its subsidiary brand specialising in affordable watches.

Two years on, Tudor still has only one watch in its catalogue that is a certified Master Chronometer. One wonders if Tudor’s narrow adoption of the certification was merely to prove that Master Chronometer certification itself was not particularly exceptional.

The Tudor Master Chronometer

Omega, on the other hand, has 95% of its mechanical movements certified as Master Chronometers (almost all of which are equipped with its Co-Axial escapement), which is about 500,000 watches, while the rest of its mechanical watch production is COSC certified. This mass testing and certification is an industrial achievement on a different scale relative to the few thousand Master Chronometer watches certified by Tudor.

With the launch of the Spirate hairspring, Omega has just fired another volley in the chronometric war between Switzerland’s biggest watch brands. It will be interesting to see how Rolex responds.

Having just been published by trade body Federation of the Swiss Watch Industry (FH), Swiss watch exports – a proxy for the global luxury watch industry – once again broke records in 2022 with an annual tally of CHF23.7 billion, a rise of 11.6% over the year prior and an all-time high. Compared to 2019, the year before the pandemic began, the number is even more impressive: a jump of 15.5%, which translates into CHF3.2 billion of additional exports.

At the same time as FH announced the industry’s 2022 performance, Swatch Group published its annual results. Even though the group is an important contributor to the volume of Swiss watch exports – it makes up an estimated 60% of total volume – the brands in its stable, which include Omega, Longines, and Breguet, are not keeping pace with the broader industry’s growth.

Value up, volume down

After a steady decline in export volume over the past 20 years – reaching an all-time low of 13.8 million wristwatches in 2020 – quantities have not recovered. In 2022, the industry exported only 15.8 million watches, an increase of just 0.3%, or only 49,000 units, over 2021 – whereas in 2000 Switzerland exported 30 million watches.

But the numbers are actually worse than they look. Take the MoonSwatch out of the equation – the bestselling Swatch accounted for about 950,000 watches exported and another 50,000 sold within Switzerland – export volume for 2022 is actually about 900,000 lower than that of 2021.

Volume and value – an inverted pyramid

The Swiss watch industry demonstrates the Pareto principle, better known as the 80/20 rule. Only 17% of volume generates 83% of the value. In other words, less than a fifth of watches account for over four-fifths of vale.

The most expensive watches illustrate this in the most extreme manner. Watches with a retail price of over CHF100,000 numbered about 25,000 last year, 0.2% of the 15.8 million units in total, but accounted for about CHF3 billion of value, 12.5% of the total export value.

That won’t be news to observers of the industry, since it has long been known that “champion” brands such as Rolex, Audemars Piguet, Patek Philippe, Richard Mille, Tudor, Breitling, Omega, and Cartier that are they key drivers of growth in export value, with the sole anomaly at the low end being the MoonSwatch.

A breakdown of Swiss watch exports by retail price (percentages rounded up to the nearest whole number). Source – LuxeConsult

Swatch Group performance

Swatch Group announced its 2022 revenue grew 4.6% at constant exchange rates, while the value of Swiss watch exports rose 11.6%, indicating that most of the group’s 17 brands are stuck in reverse gear. The disparity in growth is even more obvious if we take into account the group’s biggest brand in terms of revenue, Omega, had a successful year where it likely grew faster than the industry average in its price segment, implying substantially below-average growth at the group’s other marques.

According to Swatch Group, lockdowns in China resulting from the pandemic resulted in a revenue shortfall estimated at CHF700 million. That’s one way of looking at things; another is the fact that Swatch Group overly dependent on China.

Again, the only exception is Omega, which has successfully diversified its sales and, for instance, gained substantial market share in the United States over the course of the pandemic.

Luxury brands’ exposure to China post-Covid with Swatch Group at the top, followed by Richemont’s “Specialist Watchmakers” division. Source – Morgan Stanley (This chart cannot be reproduced without Morgan Stanley’s express authorisation)

It becomes clear that Swatch Group is bucking the industry trend on two levels. First, its MoonSwatch is the only out-performer at the low-end of Swiss watchmaking, managing to rack up stellar sales when everyone else is wilting against smartwatches. Second, the group as a whole is underperforming the broader industry, which has been enjoying rapidly rising values even in the face of diminishing quantities.

A mixed, but cautiously positive, outlook

With the reopening of the Chinese market after a bad 2022 – Swiss watch exports to the country shrank 22.5% last year – the landscape for the luxury goods industry and Swiss watchmaking is promising. Swatch Group is likely to be the main beneficiary of this positive development in Chinaas its two biggest brands in terms of sales, Omega and Longines, are also the the biggest in China by the same metric.

But the environment in other markets, will probably get more difficult. The deterioration in outlook also holds true for the United States, which was the biggest market for Swiss watch exports in 2022, having grown 26% year-on-year. Still, 2023 should once again be a record year for Swiss watch exports, albeit at a more modest pace, with an expected growth of 3-4% in value.

But the performance of individual brands and groups will likely become even more polarised, with the biggest five brands accounting for 50% of sales. There will be exceptions, of course, including a few niche brands in high-end independent watchmaking (that account for less than  1% of export volume) will continue to do well, along with the sole brand performing well at the low-end, high-volume segment, Swatch.

]]> https://watchesbysjx.com/2022/12/year-in-review-best-stories-2022.html Fri, 30 Dec 2022 11:30:29 +0000 https://watchesbysjx.com/?p=146349 As we reflect on the past year, we’re proud of the stories we published and grateful for all of our readers – we appreciate you. Before the year closes, we want to revisit some of your favourite stories from 2022, from in-depth reviews of the most significant watches of the year to our fascinating conversations with […]]]>

As we reflect on the past year, we’re proud of the stories we published and grateful for all of our readers – we appreciate you. Before the year closes, we want to revisit some of your favourite stories from 2022, from in-depth reviews of the most significant watches of the year to our fascinating conversations with thought leaders within the industry.

Technical deep-dives

Understanding of today’s most complex timepieces can be a challenge (even for us sometimes). But with our string of in-depth reviews, we aim to help the reader better appreciate these watches.

Amongst the year’s highlights us two-part, in-depth examination of the Grand Seiko Kodo Constant-Force Tourbillon SLGT003 (you”ll find the second part here) with its highly skeletonised movement featuring a one-second remontoir and tourbillon mounted on the same axis.

Another story with a substantial focus on Japanese watchmaking was an engineer’s perspective on quartz watches: a personal take on the complexities of the technology and why it can stand on par with the mechanical watches. 

Understanding the symmetrical construction of the Kodo Constant-Force Tourbillon

We also covered more conventional high-end watchmaking, but in our unique, detailed manner. We of course looked at the second-generation A. Lange & Söhne Zeitwerk, which received a major upgrade thanks to a revamped movement.

And to help put the new Zeitwerk in context, we published a collector’s guide that compiles all the known variants of the model since its debut in 2009, explaining the short but storied history of the digital watch that began life as a sketch by the late Gunter Blümlein. 

The Zeitwerk’s upgraded cal. L043.6

Another familiar watch we looked at was the Audemars Piguet Royal Oak Extra-Thin ref. 16202. We explained the upgrades of the new “Jumbo” – with an emphasis on the technical improvements – which is almost a one-for-one copy of the 1972 original but sports the brand-new cal. 7121, a necessary upgrade for the iconic sports watch.

We also gave the Patek Philippe Calatrava ref. 5226G the same treatment. Vintage inspired but a new design nonetheless, we show how the ref. 5226 points the way forward for Patek Philippe. Though an entry-level model, the watch has an elaborately executed case with a clous de Paris guilloche band matched with a patterned dial.

Another of our notable stories on Patek Philippe was a deep dive into its service centre in Singapore. We got a rare chance to visit the brand’s regional serviceing hub, where its watchmakers repair, refinish, and restore. In this behind-the-scenes look, we explored the many processes needed to bring a Patek Philippe timepiece back to factory-specified condition.

The Royal Oak ref. 16202 with the new cal. 7121

Fine hobnail guilloche on the case middle of the Calatrava ref. 5226G

Independent thought

Naturally we covered the year’s most notable in independent watchmaking. One of the standouts was up-and-coming watchmaker Sylvain Pinaud. His Origine is impressive – meticulously crafted in construction and finish – while the design is uncluttered, though he has yet to develop a strong aesthetic for his brand.

Also a one-man show, Yosuke Seikiguchi launched his first watch with the Primevère. It is an elegant composition that focuses on recreating the quality and feel of 19th-century pocket watches from the Vallee de Joux. Mr Sekiguchi even makes most of the movement with antiquated techniques, including cutting the silver bridges with a saw and file.

The Sylvain Pinaud Origine

The enamel dial of the Yosuke Seikiguchi Primevère

Another watchmaker that caught our attention was Aaron Becsei. The Hungarian watchmaker collaborated with American knife maker Todd Rexford to create the Bexei Dignitas Pure “Project XX”.

It’s a striking reinterpretation of Bexei’s signature Gothic wristwatch that incorporates”hot-hammered” zirconium. Much of the watch, including the dial and movement bridges, are produced and “hot hammered” by the Mr Rexford, a custom knife maker whose blades sell for five figures. But Mr Bexei then applies his trademark fine finishing to the zirconium parts, which have traditional anglage, while the steel parts sport black polishing. 

The Bexei Dignitas Pure “Project XX”

Perspectives on the industry and its history

A somewhat forgotten military instrument of the Cold War, the Tutima Military Chronograph ref. 798 is perhaps the last great pilot’s chronograph – Brandon Moore explained why.

Mr Moore applied his analysis to an entirely different facet of watchmaking with his compelling examination how many watchmakers it takes to build a watch. Using the metric of “watchmaker-hours per watch”, he charts the labour intensive nature of fine watchmaking – and the less intensive nature of mass production.

The Tutima Military Chronograph

For industry analysis from an insider, we turned to Oliver R. Müller as usual. Best known as the former chief executive of Laurent Ferrier, he detailed the trends and numbers that defined Swiss watchmaking for the year, working off the annual report he publishes with Morgan Stanley. His conclusion this year: the industry landscape is evolving and consolidating around a few major brands, with Rolex continuing to cement its position as the dominant player.

Mr Müller also examined the evolving preferences of the consumer in China, perhaps the world’s most important market for watches and also luxury goods. Interestingly, he notes that Hermès has climbed the ranks to become one of the top watches brands in the country.

Finally, our best stories of 2022 must include the insightful interviews with the duo who are each guardians of their respective brand’s heritage: Pierre Rainero of Cartier and Christian Selmoni of Vacheron Constantin. The conversations with the two gentlemen revealed their knowledge of watchmaking, design, and history – and how each of these can elevate a brand.

I have always been fascinated by the drama that unfolds at a live watch auction – the excitement, the applause that accompanies a record hammer price, and the occasional silence when there are no bids to be found made. As a collector, the drama that unfolds adds colour to the hobby and adds another dimension to the business. 

I had long tuned in for the livestream of auctions since I purchased my first vintage timepiece almost a decade ago. I followed the blockbuster results in the salerooms of the three leading auction houses, Phillips, Sotheby’s and Christie’s, but I had yet to experience being in the room until my outing to the recent fall sales in Hong Kong. 

Watching the gavel fall on screen

I knew I had to attend a live auction after watching the Sotheby’s Geneva auction that took place in December 2014. On my laptop I saw the sale of the Henry Graves Supercomplication unfold, when the man with the red tie, whom I later discovered to be Aurel Bacs, won the watch for US$24 million. 

A few years later, while commuting to my first job out of college, I caught the exact moment when Paul Newman’s “Paul Newman” Rolex Daytona sold for a record at Phillips’ in New York. More recently, I tuned in for the sale of the F.P. Journe FFC Blue at Only Watch last year. Even though I only watched these sales on a screen, it is clear that watch auctions at the highest level are almost a competitive sport, with bidders from across the world or the aisle locked in a duel until the hammer comes down.

The sale of Paul Newman’s own Rolex Daytona in 2017 at Phillips New York

The saleroom in Hong Kong

When the Hong Kong government announced the lifting of most pandemic restrictions in September 2022, namely the mandatory hotel quarantine, I embarked on my first overseas trip in two years – perfectly timed to coincide with the fall auction season in the city.

As soon as I landed, I dropped by my hotel for a quick change of clothes before heading to the J.W. Marriott where Phillips was staging the two-day Hong Kong Watch Auction: XV. When I entered the Phillips saleroom, I was struck not by the crowds but by the lack of them. With the removal of many pandemic curbs, I had been expecting the crowds to be out. Only a few seats in at the front of the saleroom were occupied and most of the few bidders in the room sat at the round tables at the back, leafing through the auction catalogue while watching the sale.

My vantage point from the front of the room, with head of department Thomas Perazzi at the rostrum

The thin attendance was due in part to the fact that some restrictions on inbound travellers had yet to be lifted; the Hong Kong government only did away with them in December. Instead, most bidders were on the phone or online. The crowd, in fact, was the two dozen or so Phillips staff members manning the telephones. 

Yet the energy in the room was palpable, but in a measured and patient manner – it was clear that all bidders were determined to get the best deal possible. Bids came in from all over the room, and the auctioneer had to work hard to keep up with the pace. While there were a few moments of silence as the sale progressed, the room erupted into a frenzy of activity when it came to popular lots, mostly from the likes of Patek Philippe, Rolex, Audemars Piguet, and even independents like F.P. Journe. The crowd also fluctuated throughout the sale, thinning out with less interesting lots and gaining in number as major lots came up.

A majority of the bidding came through the international phone banks at the J.W. Marriott. Image – Phillips.

While the top lot of the sale both in terms of prestige and value was undoubtedly the yellow gold Patek Philippe ref. 2499 – the room was probably the most full when this was sold – my personal highlight was the Philippe Dufour Simplicity.

While this was not the first time I saw one in person, the Simplicity has always stood out for me as something truly special. As soon as the lot opened at a mere HK$1 million (about US$130,000), two bidders jumped into the ring. One was an Asian gentleman in the room and the other a phone bidder. Even though it was only the two of them bidding, the price rapidly escalated within a matter of minutes.

The jousting over the Simplicity continued until the phone bidder triumphed with HK$5 million (about US$640,000) and the gentleman in the room waved the white flag. The hammer came down to applause in the room. The total bill for the buyer was HK$6.9 million with fees, equivalent to US$886,000.

The Simplicity at Phillips, a 37 mm example in white gold. Image – Phillips

But the fireworks did not end there. About an hour after the Simplicity, it was the turn of a Patek Philippe Calatrava ref. 2508 fitted to a fine, yellow-gold Gay Frères bracelet. It was a simple watch with a modest estimate starting at just HK$95,000 (about US$12,000).

I have to admit I was surprised by the mind-boggling result of HK$756,000 including fees (about US$97,000). By most measures, this was not one of the top lots before the sale and it was barely on my radar.

The ref. 2508 encapsulates auctions perfectly: you can never predict what will happen at a live auction. Watching the bidding war over the ref. 2508 was a real eye-opener. It showed me how passionate and determined collectors can be and illustrates their willingness to pay top, top dollar for something special. And it also reveals that even a seemingly under-the-radar watch will not go unnoticed by keen eyes.

The ref. 2508 and its vintage bracelet

A sense of camaraderie

My first live watch auction was a proper introduction to the world of high-end watch collecting. I got to see some of the world’s best timepieces up close. Even though the turnout was sparse and the atmosphere casual, the buzz in the room was discernible; I could feel the excitement.

But it also showed that the hobby is about people and the scene is a small one. From the handshakes and smiles I could tell that many of the people in the room knew each other. There was a sense of camaraderie among the participants along with a healthy dose of competitive spirit, even between Phillips colleagues bidding against each other on behalf of clients. 

I realised that a major watch auction is not simply a sale of watches; it is a social event where people come to mingle, network, and show off their latest acquisitions. I didn’t raise my paddle and came away empty handed, but I was happy to sit back and watch buyers battle it out for the top lots. Ultimately, I left with a better understanding of watch auctions and a greater appreciation for the beauty of the watches themselves.

We’ve gone through the year’s best watches from independent watchmakers and establishment brands, as well as the most notable complications. Nearly all of the watches on those lists, however, are pricey. So now we round up the best affordable watches of the year, namely those under US$5,000. Put another way, these are the best value proposition of 2022, both in nominal and relative terms.

As has become the norm, Tudor is shoo-in when it comes to value propositions. A streamlined version of its deep-sea dive watch, the Pelagos 39 is compact, lightweight, and minimalist. The case is 39 mm and all titanium, while the dial does away with the date but includes a line of red text in a nod to vintaged dive watches. 

While much about the watch has been simplified, the details of the Pelagos 39 are fancier than usual. Both the dial and bezel insert are radially brushed – a matte metallic finish for the dial and brushed ceramic for the bezel – giving the Pelagos 39 a more reflective finish than its peers.

When it comes to dress watches, the Longines Master Collection “190th Anniversary” is amongst the best, particularly at its US$2,000-ish price.

It features a dial that appears to be highly elaborate with Breguet hour numerals that appear to be hand engraved. Naturally the dial is made by machine, but it is done convincingly enough that has a strikingly appealing aesthetic. Thanks to the dial, the watch certainly punches above its price segment.

And like many Longines watches, it is equipped with an upgraded ETA movement, here it’s the cal. L888.5 with a power reserve of 72 hours.  

With the time-and-date PRX having been a hit, Tissot unsurprisingly unveiled the PRX Chronograph. Very much catering to the fad for integrated-bracelet sports watches, the PRX Chronograph is stylishly affordable. In absolute terms it remains one of the most accessible automatic chronographs on the market with a price tag of just under US$2,000.

Though substantially pricier than the base-model PRX, the chronograph justifies its price with an upgraded Valjoux cal. A05 H31 movement that has a longer power reserve of 60 hours. And the dial also features details that give it the feel of a more expensive watch, like applied hour markers, recessed sub-dials, and a contrast-finish minute scale on the periphery. 

And now for something at the extreme of affordability when it comes to mechanical watches. The Seiko 5 Sport GMT costs under US$500, but it is an automatic watch with a second time zone and date. 

But its price inevitability comes with compromises, namely the fact that it is not a true GMT watch. That’s because it has a 24-hour hand that is independently adjustable in one-hour steps, rather than the local-time hour hand that’s independent as is the case in a bona fide GMT watch. The consequence of that is a slightly more tedious process of setting the time when crossing time zones.

But the Seiko 5 GMT is easily one of the compelling dual-time watches below US$500, though admittedly it has little competition in its price category, perhaps reflecting the challenge of putting together a dual-time watch for that little money.

Seiko’s most-affordable GMT. Image – Seiko

And the honourable mention goes to one of the year’s most high-profile watches, the Omega x Swatch Bioceramic MoonSwatch. Essentially a plastic version of the Omega Speedmaster Moonwatch, the MoonSwatch is affordable – it costs just US$260 – but it is not exactly a value proposition because it feels very much like a two-hundred dollar watch. 

The Moonwatch (left) and MoonSwatch. Image – Swatch

You get what you pay for, and it is very true with the tangible qualities of the MoonSwatch. But it does possess an iconic design borrowed from Omega as well as appealing candy colours, and a price that puts it within easy reach for almost everyone, including young watch enthusiasts. That explains why the MoonSwatch resulted in long queues outside stores, making it a marketing coup that helped revive an ailing Swatch.

The demand for the MoonSwatch so exceeded supply, at least in the initial stages, that Swatch had trouble keeping up, resulting in big premiums to retail on the secondary market. The frenzy has since cooled down, but in some ways the MoonSwatch captures the zeitgeist of 2022 with the hype surrounding it, as well as the rapid rise and fall in its secondary-market value.

Most brands, especially the establishment names, stuck to the evolutionary rather than revolutionary in 2022, which also held true for the latest complications for the year. Nearly all of the year’s most notable complications were derived from past concepts.

But the result can still be impressive, as demonstrated by the Ulysse Nardin Freak S. The latest version of a watch that was revolutionary when it was introduced in 2001, the Freak S embodies the ideas that made the original Freak a milestone, including the unorthodox movement construction and the liberal use of intricately-shaped silicon components.

But above all it boasts a far more complex regulator that takes the form of twin oscillators connected by a differential. As outlined in our in-depth review, the twin-balance setup was mostly found on classical (and expensive) chronometers from the likes of Greubel Forsey and Philippe Dufour, making the Freak S an outlier with its hyper-modern design. And at US$137,000, it is also more affordable than similar complications from other makers.

Standing in stark contrast to the aggressively contemporary styling of the Freak S is the Cartier Masse Mystérieuse. Typical of Cartier with its Roman numerals and ruby cabochon in the crown, the Masse Mystérieuse is inspired by the mystery clocks made by the jeweller in the first half of the 20th century.

The result of over eight years of research and development, the Masse Mystérieuse was the final complication devised by Carole Forestier-Kasapi, the former movement chief at Cartier who now holds the same job at TAG Heuer. Reflecting Ms Forestier-Kasapi’s imaginative approach to movement construction and oscillators, the Masse Mystérieuse features a skeletonised automatic movement that is itself the winding rotor. In other words, the movement constantly spins around while the watch is on the wrist. 

The genius of the Masse Mystérieuse lies in the differential gearing that allow the movement to freely rotate around the central axis, while the hour and minute hands on the same axis are stationary and tell the time conventionally. Very few movements incorporate such differential gears due to their complexity, and tellingly, one of the other watches with a comparable mechanism is the Cartier Astroregulator that was also invented by Ms Forestier-Kasapi.

The only downside of the Masse Mystérieuse is its size. Like many of Cartier’s past complications, it is massive at 43.5 mm in diameter and almost 13 mm high. 

More conventional in approach but exceptionally complex, the Grand Seiko Kodo Constant-Force Tourbillon takes a traditional, no-expense-spared pursuit of chronometry. Both of its complications are well established concepts in traditional chronometers, but here they have been refined to a remarkably high standard. The movement boasts a tourbillon with a constant-force mechanism, both rotating on the same axis. Add to that a high level of decoration and the Kodo is easily one of the best complicated watches of 2022.

Beyond its mechanics, the Kodo is notable for not looking like a Grand Seiko at all. Given the brand’s conservative house style, the bold skeletonisation and decidedly modern elements set the Kodo apart from everything the brand has done. While the Kodo is the first and only watch of its kind from Grand Seiko, it certainly sets a promising precedent for things to come.

Also unexpected but in a less extreme fashion is the Patek Philippe ref. 5470P 1/10th of a Second Monopusher Chronograph. While Patek Philippe is certainly famous for chronographs, its past models have been eminently traditional. Instead most of the brand’s innovation and even experimental complications have been implemented in its calendar watches and more recently in a minute repeater.

In contrast, the ref. 5470P packs in a substantial amount of tech – at least by the conservative standards of Patek Philippe – while being a traditional, column-wheel chronograph at heart.

Notably a regular production watch, the ref. 5470P. Image – Patek Philippe

The movement of the ref. 5470P features two key additions to the standard manual-wind chronograph movement. One is the silicon balance assembly running at 36,000 beats per hour, or 5 Hz, making this the brand’s first and only serially-produced high frequency movement. The other is the additional gear train that drives the red, “lightning” seconds hand, which makes one revolution around the dial every second.

Granted, “lightning” seconds chronographs are not novel. However, the various innovations and mechanisms found in the ref. 5470P make it an interesting proposition, particularly in how it points the way to where Patek Philippe is going in terms of technology and complications.

The CH 29-535 PS 1/10 of the ref. 5470P. Image – Patek Philippe

And finally come two watches that deserve an honourable mention. The first is the A. Lange & Sohne Richard Lange Minute Repeater, which is neither innovative nor progressive, but instead an old-school striking watch of extremely high quality. In contrast to the brand’s first minute repeater that was a digital Zeitwerk, the Richard Lange Minute Repeater is conservatively styled with its pocket watch-inspired enamel dial.

Although entirely new and developed specifically for this watch, the L.122.1 movement inside is similarly traditional in layout and details. It does, however, incorporate an invisible but audible innovation: the chiming mechanism has a pause-elimination feature that eliminates the silent period between the hour and minute strikes found in conventional repeating movements.

And the movement was also engineered to be idiot-proof so the crown cannot be pulled out to set the time while the chiming is ongoing, preventing the damage to the movement that occurs when the hands are moved while the repeater is striking. 

Given the brand’s numerous in-house movements with inventive complications, the classical approach taken by the Richard Lange Minute Repeater makes it seem like an oddity to some degree. Having said this, it does hark back to the first decade after the brand was founded, when Lange movements were largely inspired by 19th century German pocket watches. At the same time, the fact that the Richard Lange Minute Repeater manages to improve on the practicality of the minute repeater is an achievement in itself.

And the second honourable mention goes to the Richard Mille RM UP-01 Ferrari, the thinnest mechanical watch ever. At just 1.75 mm tall in its entirety, the RM UP-01 bests the previous record holder by 0.05 mm, a massive distance by the standards of very-thin watches.

It doesn’t get any flatter than this. Image – Richard Mille

To get there, however, the RM UP-01 relies on many of the methods found in its ultra-thin rivals used, but Richard Mille takes it to a more extreme level. To quote from our original story on the watch, the RM UP-01 is “an incremental improvement – or more accurately, an incremental reduction – in thinness thanks to clever engineering that builds on past ideas.”

Like many of its peers, the thinness of the RM UP-01 dictates a variety of compromises, some of which reduce its practicality. Amongst them is the deconstructed winding and setting mechanisms, both of which require a key to engage. Another is the odd oblong case shape that departs from the trademark Richard Mille tonneau form. The CHF1.7 million price tag, however, is very much typical of the brand.

Having covered the year’s best from independent watchmaking, we now turn to the big names (but leaving out the value buys below US$5,000 that we cover in a subsequent story). The notable launches from establishment marques were predominantly evolutionary, either new-and-improved versions of existing models or vintage remakes. Nothing was a landmark achievement – except for the monumental Rolex Deepsea Challenge that is less of a watch than a statement of technical prowess.

While not strikingly novel, many of the year’s best watches are executed very, very well. One of the best is the Audemars Piguet Royal Oak Extra-Thin ref. 16202. Practically unchanged from the 1972 original in terms of design, it doesn’t do anything new in terms of design. The the new “Jumbo” nonetheless is a superior watch, mainly thanks to a brand-new movement as well as subtle improvements to the case. As we detailed in our in-depth review, the “Jumbo” retains the look of the original, right down to the colour of the dial, which is reproduced with PVD treatment.

But it is the new cal. 7121 that’s the star. Amongst the things, it boasts an efficient, bi-directional winding system, as well as a higher beat rate for the balance wheel, resulting in more stable timekeeping. But perhaps most important is the addition of a quick-set date. While getting this watch at the retail price is a Sisyphean task, it is one of the year’s top watches simply because it makes a classic much better.

Unchanged since 1972

The cal. 7121 with its distinctive gold-plated bridges for the balance and barrel

Like the Royal Oak “Jumbo”, the second-generation Lange Zeitwerk is an upgraded iteration of a familiar model. Given the intrinsic complexity of the Zeitwerk, the upgrades are substantial, but the watch remains essentially the same.

Looking much the same on the front, the new Zeitwerk gains conveniences like a power reserve that’s twice as long, a quickset corrector for the hours, and a thinner movement that gives it a slightly thinner profile overall.

The second-generation Zeitwerk in pink gold

While Patek Philippe’s debuts this year included watches that were more “hype”, like the Nautilus ref. 5811/1G, and more “bling”, like the jewelled ref. 5271, the Calatrava ref. 5226G-001 stands out for illustrating how the brand is improving its entry-level watches (in Patek Philippe terms that still means a hefty price of US$39,030).

Though a simple watch, the ref. 5226G has a peculiar yet elegant aesthetic that is slightly vintage and vaguely military. But its most notable features are the case and dial, not in terms of design but execution. Both are decorated elaborately despite this being one of the most affordable watches in the brand’s line-up.

The dial is has a stamped grained surface with a gradient finish and applied white-gold numerals. And the case has an unusual construction that allows the case band to be seamlessly decorated with clous de Paris guilloche.

The ref. 5226G with its finely decorated case band

One of the year’s most elegant and unique designs, Pebble reproduces one of Cartier London’s quirky creations of the 1970s, a period when that branch of the jeweller excelled in quirky creations. Though simple in style, it is instantly recognisable as a Cartier, which explains the six-figure values achieved by vintage examples of the Pebble at auction.

But while vintage Pebbles are expensive because they are valuable and rare – only six are known – the modern-day remake is expensive mainly because Cartier has pricing power, for now. It costs about US$44,000, which is a lot for a time-only watch with a simple case containing the Piaget-derived cal. 430 MC.

The Pebble

Like the Pebble, the Vacheron Constantin 222 is a good looking watch with lots of intrinsic appeal, but it is a vintage remake so it offers nothing genuinely novel. Relaunched as part of the Historiques collection of vintage remakes, the 222 retains the original size of 37 mm, but is available only in yellow gold for now.

As a remake of Jörg Hysek’s classic from 1977 (unlike its peers of the era that were designed by Gerald Genta), the 222 preserves the design of its integrated bracelet, but refines the bracelet construction for better ergonomics. And inside is the cal. 2455/2, an automatic movement that is robust than the storied but finicky cal. 1120 found in the original.

The 222 returns

In a surprise announcement late in the year, Rolex released the production version of its experimental dive watch. The Deepsea Challenge is the brand’s first-ever titanium watch.

Patterned after the concept watch that accompanied filmmaker James Cameron to the deepest point of the Marianas Trench in 2012, the Deepsea Challenge has a record-setting water resistance of 11,000 m, albeit in a barely-wearable case of 50 mm by 20 mm that is nevertheless a manageable weight as the case and bracelet are in RLX Titanium.

While this is the priciest non-precious metal watch in the Rolex catalogue, it is arguably worth every penny given the inventive construction and monumental water resistance. And it is perhaps an important statement too – the watch is Rolex announcing that it is, well, Rolex, despite the best attempts by its occasional rival. 

A monster of the deep. Image – Rolex

And the honourable mention goes to a surprising brand, Baume & Mercier (B&M). Granted B&M isn’t exactly an establishment brand, but it is owned by Swiss luxury conglomerate Richemont, which makes it a mainstream name.

Probably the only interesting watch B&M has debuted in a long time, the Hampton Hommage à Pierre Soulages pays tribute to the late French abstract painter.

Soulages in miniature. Image – Baume & Mercier

The dial replicates relicating the distinctive, monochromatic impasto of Soulages’ brushstrokes on a minute scale but rich in detail. B&M achieved that with 3D printing – adding tiny amounts of material to build up multiple layers – and finishing it off with semi-matte black lacquer. At just under US$6,000, this is pricey for a B&M (and probably too much given the lack of brand equity), but it is a compelling watch.

Twenty twenty-two will undoubtedly be the best year on record for the luxury-watch industry. Swiss watch exports recorded their highest ever monthly value in November 2022 and the total for the year will top CHF24 billion, another all-time record.

Despite the stellar year – or perhaps because of it – the “novelties” for 2022 are fairly muted. Lots of nice watches made their debut during the year, but the truly outstanding and significant launches were sparse. That could be for a few reasons, including supply chain disruptions due to the pandemic or that brands simply didn’t need to try too hard since sales were easy. During Watches & Wonders, a chief executive of a high-end independent brand conceded that it was better to conserve ammunition for the inevitable slowdown.

Watches & Wonders 2022, where sales were easy to come by. Image – Watches & Wonders

Even if the genuinely notable were few, the volume of new releases was consistently high throughout the year. And it wasn’t just new models from existing brands, but also new faces, especially in the independent watchmaking space. There was plenty to keep watch aficionados occupied throughout the year. 

Still, the year’s top watches are pretty obvious. The very best will be remembered a decade from now as a significant or important watch. Other picks simply have soul and authenticity.

With that in mind, our team compiled the year’s best in each of the major categories, ranging from establishment favourites (like the new Royal Oak “Jumbo”) to the independents (which includes a made-in-Cambodia tourbillon). We begin here with the independents.

Naturally we have to lead with the UR-100V ‘Time and Culture’, which was designed by our founder in collaboration with Urwerk. Inspired by Aztec motifs, the Time and Culture has a micro engraving on the front plate that sits just under the crystal. It is easily one of the most striking Urwerk watches, bar none.

UR-100V ‘Time and Culture’

The engraving was done with a drill bit of just 0.05 mm in diameter

Rexhep Rexhepi needs no introduction. The founder of Akrivia is in his early thirties but unquestionably one of the leading independent watchmakers of the modern era. This year Akrivia released the Chronomètre Contemporain II, following the unique piece created for Only Watch last year. 

While designed in the same mould as its predecessor, the Chronomètre Contemporain II (RRCCII) is an entirely new timepiece with movement developed from the ground up. Inside is the RRCC02 with a deadbeat seconds incorporating hacking and zero-hacking. Its biggest flaw is availability: the RRCCII is a limited edition of only 50 pieces and we understand the waitlist is in the thousands.

The RRCCII in rose gold. Image – Akrivia

Mr Rexhepi spent some of his formative years at F.P. Journe, indicating the stature of the latter brand. This year saw F.P. Journe bring back one of its quirky classics, the Vagabondage I.

One of the most unusual watches ever made by the brand, the original Vagabondage was a limited edition of just 69 in platinum made in 2004. The subsequent second and third iterations of the Vagabondage were available in both platinum and red gold, explaining the return of the first model. 

Scaled up but visually similar, the new Vagabondage I retains the wandering jumping hour display with an exposed balance wheel in the centre of the dial. And the case is substantially larger at 42 mm and naturally the case is rose gold.

The Vagabondage I

While F.P. Journe is an establishment marque amongst the independents now, two newcomers stood out not only for their quality but the authenticity of concept and execution. One is the Sylvain Pinaud Origine. Although in his forties, Mr Pinaud only started his own brand recently but has made a name for himself with his high-quality execution. 

Conceived to express simplicity in design and elaborate finishing, the Origine is uncluttered on the front but features subtle details evident only up close. Likewise on the back, the manual-wind movement, which was entirely developed and mostly made in-house, is finished perfectly. While Mr Pinaud has yet to develop a distinctive house style, he is clearly a independent watchmaker on the rise. 

Reflecting a comparable level of quality but an entirely different design philosophy is the Yosuke Sekiguchi Primevère. A Japanese transplant to Switzerland who spent two decades working for movement makers, Mr Sekiguchi modelled his inaugural creation on 19th century pocket watches.

He faithfully recreates the feel of a vintage pocket watch and even relies on antiquated manual methods for some components, like cutting the German silver bridges with a saw and file. But Mr Sekiguchi takes the movement decoration to another level, applying an artisanal finish to all components. He also adds a few decorative flourishes of his own, including the black-polished winding click spring shaped like the Greek letter “Ω”.

Sylvain Pinaud’s Origine

The movement of the Yosuke Sekiguchi Primevere

A world away from Switzerland, a tourbillon emerged from a newly-established watchmaking school. The ASEAN Lotus Tourbillon was created by Prince Horology, a horological academy located in the Cambodian capital.

Conceived by the team leading the school and produced with some help from its students, the Lotus Tourbillon is powered by a proprietary movement with a one-minute tourbillon. Although it is muted design-wise, the movement decoration is surprising, with some components verging on the exceptional. Besides the black-polished steel bridge and cage for the tourbillon, even the teeth of the barrel ratchet are individually polished.

Though the initial run of watches were gifts for world leaders who attended the ASEAN Summit in Phnom Penh, the school has indicated a variant of the watch will subsequently be sold to raise funds for the institution.

A closeup of the tourbillon. Image – Prince Horology

Also a tourbillon but one on another level altogether is the Greubel Forsey Tourbillon 24 Secondes Architecture. The Architecture embodies the brand’s evolved house style that is largely centred on streamlined sports watches and features a streamlined, water-resistant case.

Mechanically, it is fundamentally another version of the brand’s longstanding inclined tourbillon movement. But it reimagines the aesthetics of the calibre by rearranging the layout and further open-working the movement. Most importantly, the redesigned movement incorporates arched bridges in polished titanium.

For sheer visual impact, the Nocturne has to be mentioned. It is quintessential Sarpaneva in both style and complication. With a Gothic motif done by a Finnish artist, the Nocturne incorporates Sarpaneva’s signature moon phase display with an oversized face that looms over the dial.

Like its earlier Moomin editions, the Nocturne makes liberal use of Super-Luminova – all applied by hand – to create a striking glow-in-the-dark landscape. At €19,000 it is amongst the priciest of Sarpaneva’s offerings, but the dial is decorated and finished by hand while the elaborately formed case is made in-house, rationalising much of the price.

The Nocturne. Image – Sarpaneva

The first chronograph from MB&F, the Legacy Machine Sequential EVO continues the brand’s partnership with Belfast-based watchmaker Stephen McDonnell. As with their previous collaborations, the Sequential EVO is centred on Mr McDonnell’s creative approach to movement construction and retains the trademark feature of an oversized balance wheel on the open-worked dial. 

Appearing to be extraordinarily complex thanks to the dense mass of chronograph levers and wheels on the dial, the Sequential EVO is an innovation approach to the chronograph but conceptually straightforward: it incorporates twin chronograph mechanisms linked by an inverter mechanism allowing the wearer to operate each chronograph independently as well as switch instantaneously between the two. And it is priced at US$180,000, making it pricier than the A. Lange & Söhne Triple Split, which is less imaginative in concept but arguably more complex mechanically. 

Visible on the dial of the Sequential EVO, the twin chronograph mechanisms mirror each other

Perhaps more impressive than any of the wristwatches here is the desk clock from Russian watchmaker Konstantin Chaykin. Resembling a fancy cake, the Lucomorye Clock is actually a grand complication made of silver, aluminium, jade, opals, and lots of enamel.

Inspired by an Alexander Pushkin poem, the Lucomorye is powered by a movement comprising 1,119 parts, entirely invented by Mr Chaykin. The fairytale exterior, on the other hand, is the work of a noted Russian jeweller.

Most ingenious is the patented hour display that relies on a tiny chain that wraps around a drum to form a Roman numeral. This requires each hour to have its own set of cams, which in turn control the motion of the carriage that moves the chain into the right position.

The Lucomorye Clock. Image – Konstantin Chaykin

And now for some honourable mentions. A unique collaboration between two British brands, the Fears Garrick combines the retro, minimalist aesthetic of Fears with the mechanics of Garrick (which are in turn supplied by Swiss independent watchmaker Andreas Strehler). While not revolutionary in design, the Fears Garrick has an appealing styling that is simple yet distinctive.

The Fears Garrick. Image – Garrick

The movement of the Habring2 Doppel 38. Image – Habring2

And for sheer value, the Habring² Doppel 38 is a winner. It’s essentially a smaller version of the brand’s split-seconds chronograph so it offers nothing substantially new, but it is certainly one of the best value propositions in the realm of affordable chronographs. The 38 mm case means it is more wearable and definitely more elegant, while retaining the same proprietary A11 hand-wind movement developed by Habring².

Having just announced the Rolex Certified Pre-Owned programme, the Geneva watchmaking giant has in the headlines everywhere. The programme is certainly a significant development, though it will probably play out in a more nuanced manner than predicted in most media.

To recap, Rolex Certified Pre-Owned is open to all and any of the brand’s retailers on a voluntary basis. It allows a retailer to sell pre-owned Rolex watches – that have to be at least three years old – but only after they have gone through an official Rolex service centre. Importantly, retailers will have to source their own pre-owned inventory, pay Rolex for servicing, and are free to set prices on their pre-owned offerings.

Such certified pre-owned (CPO) watches will be accompanied by a two-year guarantee as well as a Rolex Certified Pre-Owned guarantee card (in addition to the original guarantee card and accessories if available). The first to embark on the CPO programme is the biggest Rolex retailer in Europe, Bucherer, which already has CPO watches on sale. Other retailers will be able to do the same from spring 2023 should they choose to do so.

Crucially, Rolex CPO has nothing to do with the grey market, which is the market for brand-new watches sold via non-authorised channels. It is where brand-new Rolex watches sold at a premium to retail are transacted.

On the other hand, Rolex CPO all about pre-owned watches that are at least three years old. And Rolex knows exactly when a watch is three years old because of its point-of-sales systems. This means that brand-new Rolex can, and probably will, still be sold on the secondary market at premiums over the official retail price – but not by official CPO retailers.

At the same time, Rolex doesn’t mention vintage watches (typically those over 30 years old) in the announcement of the programme, but it is logical that vintage watches will be part of the CPO programme but on a negligible scale since the vast majority of pre-owned Rolex sales are for modern watches.

Long in the works

In typical Rolex fashion, the programme has been in the works for a long, long time, despite being announced just recently. Rolex had been gently encouraging retailers, especially its biggest partners, to start selling CPO watches for two years or more. And starting last year, retailers were given notice that the CPO programme would become official soon, and so it has.

In fact, a hint of the company’s approach to the secondary market was already evident with Tudor. For several years now, Tudor has made it clear, in both print and public statements by its spokespeople, that its watches are accompanied by a “five-year transferable guarantee with no registration… required”. The implication of that is clear: the buyer of a pre-owned Tudor enjoys the same guarantee benefits as someone who buys it new, an unambiguous acknowledgement of the importance of the client who buys a pre-owned watch.

Why?

It is tempting to imagine that a luxury-watch brand gets involved in the secondary market simply as a matter of dollars and cents. However, given the scale of Rolex’s business, both in terms of sales and profitability, it seems unlikely that a CPO programme will move the needle very much. Remember that the only revenue Rolex earns from the CPO programme is the cost of servicing CPO watches.

Given the particular mindset of the powers that be at Rolex, its CPO programme is more likely an issue of control, data, and customer satisfaction.

Despite selling all of its watches via third-party authorised retailers – Rolex itself only owns one store that is located in Geneva – the brand has already asserted maximum control over the process of selling its watches. With magnetic-strip warranty cards swiped on proprietary readers each time a brand-new Rolex is sold at an authorised retailer, the brand knows exactly when that happens and where it happens. With the CPO programme, it can extend the same control to pre-owned Rolex watches.

With that, Rolex will gain an insight into customer behaviour over time as the CPO programme gains scale and reach. For instance, it will realise if customers are selling a specific model more quickly or more often than average, which might imply the ownership experience is not as satisfactory as it can be.

Crucially, the CPO programme is about ensuring the Rolex reputation extends to every corner of the market and globe. This stems from the fact that Rolex is extremely protective of its image, to a degree beyond that of the typical luxury-watch brand. From that perspective, it is perfectly logical that Rolex wants all of its clients – whether they buy a new or used watch – to enjoy a certain level of service and product quality.

Another business altogether

Even though the CPO programme won’t likely do much for Rolex’s financials, it may represent an opportunity for its retailers because of the scale, but pulling it off will be a challenge for any retailers.

The pre-owned business is a sizeable one, despite being extremely fragmented. Pre-owned giant Watchbox recently announced its 2022 revenue will cross the US$400-million threshold, while watch blog-turned-retailer Hodinkee has over US$100 million in annual sales, most of it from subsidiary Crown & Caliber, a pre-owned merchant comparable to Watchbox.

But getting to such a scale will be difficult for even the biggest Rolex retailers. For one, the economics of the pre-owned business are vastly different from that of brand-new watches at retail. The operating margin for the most recent financial year at two of the world’s biggest retailers is instructive: 20.6% at The Hour Glass and 11.5% at Watches of Switzerland.

In contrast, the operating margin for pre-owned dealer is typically in the mid-single digits because the business is primarily high volume and low margin, somewhat similar to a commodity trading business. As a result, even if authorised retailers grow their top line significantly with a sizeable CPO business, it will probably be accompanied by declining margins.

The Rolex boutique in Dubai operated by Ahmed Seddiqi & Sons

Beyond the financials, it is also a matter of personnel and processes. The physical businesses of selling new and pre-owned watches differ vastly. Selling a new watch is, well, selling a new watch – perhaps not easy but certainly straightforward since the product is delivered by Rolex in a perfect state, while prices and margins that are fixed.

In contrast, selling a pre-owned watch requires sourcing, assessment, servicing, and then selling. Every pre-owned watch is different in terms of cosmetic and maybe technical condition, even if it is the same model. As a result, the skillsets required to operate the business is different, which means retraining existing staff or hiring a new team.

So retailers will have to build an entirely new operation to do the CPO business at scale, which requires a significant investment financially and a major commitment from management. But regardless of its scale, the CPO business will not offer the same margins selling new watches, which may be a deterrent for some retailers.

More competition?

The specifics of Rolex CPO means that it will have a modest impact on the broader pre-owned Rolex market, at least in the short to medium term, simply as a matter of costs and pricing.

Official retailers will inevitably operate on a higher cost base than unofficial secondary market dealers, making their offerings more expensive. The nature of official Rolex retailers means their operating costs are already higher to start with since their stores are located in swankier locations and outfitted more expensively. And of course, Rolex CPO watches have to be serviced by Rolex, a cost that will ultimately make it into the price paid by the consumer. But even so, the price premium for Rolex CPO is likely to be modest.

Ironically, it is the quality of modern Rolex watches diminishes the premium that the CPO seal might bring. Current Rolex watches are exceptional products that are the result of tremendous engineering and top-class production. Consequently, a pre-owned Rolex will likely be just as good from a functional standpoint regardless of whether it emerges from the brand’s own CPO programme or a reputable independent dealer.

If one day you found yourself in Geneva in need of a gold bar, does it matter if the ingot comes from Credit Suisse or UBS? The same can arguably be said of modern Rolex watches: since a Rolex is so good, how much is the Rolex CPO seal of approval worth?