Our interview with George Kern, president of IWC Schaffhausen, a renowned Swiss watchmaker, took place at Dubai's One & Only Royal Mirage. True, it began not with my questions, but with George’s rather lengthy speech about the global financial crisis, that there are no "unsinkable" markets, and that the concept of luxury in Russia will undergo significant changes in the near future. Then we gradually turned to the topic of watch production and the enterprise managed by a young Kern.
George, IWC has been over a hundred and forty years old. Your watch is known around the world, as well as your many initiatives related to the release of limited editions for sale at charity auctions. What does the IWC offer consumers in today's market?
Quality Swiss watches. We entered the market more than a century ago in order to present unique products to it. The name of our company stands for International Watch Company, which, in fact, it was, is and will be. Today we produce watches, in order, first of all, to sell them to consumers. Charity is a separate topic for discussion. After all, we are manufacturers, not a charitable organization. And we make watches to be bought. In fact, the IWC accidentally started working with the Antoine de Saint Exupery Foundation, or, as it is now with the Galapogos Islands, but this also fully meets our dream - to help those who need it most, if possible. I believe that if, in addition to our own work, we can somehow help people, then why not do it. When I talk about our marketing policy in modern conditions, we, first of all, try to make sense of what we are doing and to be reasonable in our cash expenses. You will never see our logo on the helmets of the racers of "Formula 1", it seems to me ridiculous. True values and your dreams can be realized in a completely different way.
Which, for example?
We need to create a story, maybe even precedents for disputes. After all, a person has for this the right and left hemispheres of the brain. To explain what constitutes a manufactured product, you need to come up with emotion. I believe that all our stories are good, they are believable, they are connected with old traditions, they are endowed with meaning. But, designing new watches, every time we are ready to offer a new story for our consumers. In the end, it’s not PR that matters, the product itself is important.
You already said that each of the IWC watch models has its own legend. But, are complete and genuine stories so important to today's customers, who today believe in them and who are regular fans of your brand?
I think telling a story is very important. Even more important is the story as truthful as possible, or at least believable. You do not need to spend 20 thousand dollars for hours that simply show time. This is ridiculous. When you sell watches, first of all, I think you are selling a brand. Then you sell a design that you like or not. And third, you sell technology or a confirmation of a story related to the contents of the watch. If you are selling a brand, you must tell the story of it. Where does it start from? You must demonstrate the value of what you offer. As a consumer, some brands simply will not be worn because you do not like something about them. For example, you are unlikely to buy a car from which you do not like the brand image or design.
We at IWC are constantly working on improvements, both in branding and in other areas. We are very lucky in this case, since the IWC has an amazing history of its development, and each of our models has incredible historical roots. I think, largely due to this, our watches are so popular and famous.
As for our customers, these are, of course, those people who like the technological "filling" of watches, and those who appreciate their high quality. We do not produce exhibition copies, all of our models are designed for life. This is important for us, because we produce watches for real men.
You do not mind that many women today choose male models for themselves.
Yes, they choose, and do it with great pleasure. I like it. Many women prefer men's models, because, in my opinion, there are not so many really beautiful women's watches on the market. And it's cool to wear a men's watch.
George, why did you come to the watch industry? What moved you?
This is destiny. I come from a family where my father is a very famous and successful jeweler. He always insisted that I, my brother and my sisters get a good education. But ultimately, it is the finger of fate. Before IWC, I worked in the fast-selling consumer goods industry. And quite by chance I ran into the clock sphere. A person usually cannot plan this. I could not tell myself that I wanted to become the president of IWC. But, as you see, I became one. Of course, my upbringing in the family of jewelers helped me. I clearly understand how the whole creative process happens. But they say that “nature rests” on the children of talented parents, so I hardly inherited even a piece of my father’s talent, but my son, who is 11 years old, is a very gifted boy, especially in design. But, having no talent for creating watches, I feel the market well, and in our business a correct assessment is necessary - this product will be successful, whether its concept is true. This is what I try to do well.
It turns out that success in brand promotion is largely your intuition?
Of course. You cannot test a new product in a physical way for “like - not like”. It is only your feelings, or, if you want, psychology. Buyers are also driven by emotions. And you perfectly understand that luxury is not a thing of first necessity in life. First of all, a person needs food, clothes, a roof over his head. Hence the conclusion - buyers of luxury goods are special and very emotional buyers, and we, as manufacturers, must predict what they will like this time. Our concepts should inspire people to seek excellence in their presentation. This is the appeal of the watch industry, the pleasure of working in it. The watch industry today is perhaps one of the most competitive ...
I would say that the watch industry is one of the most segmented. Of course, there are an incredible number of watch brands on the market, but all of them are designed for certain groups of consumers. But, when you work with such a unique brand as IWC, which has more than 140 years of history, everything is different. We still produce two lines of classic watches - Pilot and Portuguese, which appeared at the beginning and middle of the twentieth century. This is truly a classic of the genre, and we are happy that a part of the heritage of those masters who once took the first steps in creating world masterpieces was preserved in our portfolio.
What can you say about the Da Vinci lineup models?
Watches Da Vinci - this is one of the most famous models of IWC today. When they were first released in 1987, they became a new concept, primarily due to the perpetual calendar created by IWC engineering genius Kurt Klaus back in 1985. This calendar needs to be summed up once every hundred years, and at the beginning of 2009 we will introduce the world's first digital perpetual calendar, the traditions of which also go back to our first pocket watch. In 2007, Da Vinci watches "moved" into an unusual form for the IWC in the form of a "barrel". Moreover, a prototype of a similar shape we found in the archives of the IWC of the 1960s, despite the fact that the IWC watchmakers have always been considered classics, the creators of exemplary round watches. So, to reproach me, as many tried to do this, in violation of the Schaffhausen traditions, is very difficult. And again, Da Vinci is a very special lineup, both aesthetically and technically.
Today, in an age of rapid technological development, it is very difficult to create something new in technical terms. How do IWC watchmakers manage this?
As I said, when buying a watch, you do not look only at the technical component. It is all together - the concept, history, design and technical content. All together creates an integral image. And I think that in the field of watchmaking there is always room for invention, improvement, innovation. But I would not overestimate this aspect. Of course, innovation is needed, but among true watch connoisseurs addictions extend far beyond just the technical component. Our technical development and research department constantly confirms this. Therefore, when creating a new unique mechanism, we try to enclose it in the correct form. Then, the unmistakably recognizable watches from IWC Schaffhausen are born.
And yet, what do you think is the most powerful moment in an IWC watch?
First of all, this is the brand image. We do not bluff and do not offer customers something unrealistic. We are Swiss, and the manufacture of precision watch movements is our profession. We are not from Paris, and not from Milan, and we do not specialize in fashion watches with diamonds, in which there is more from jewelry than from watches. I like all our watches, because each model is like its own child, which needs to be brought up and raised. I like our design. If you look at the IWC collections, you are unlikely to say that you did not like anything, it is simply impossible. It’s like with a beloved woman. When you get married, you do not love her because she is beautiful, or smart, or something else. You love the whole "kit" as a whole. And this should be the set that suits you, otherwise it is not your woman. So with the clock. IWC is my watch, my kit.
Thank you George, looking forward to the new achievements and discoveries of IWC Schaffhausen.
