1 00:00:00,120 --> 00:00:03,480 Speaker 1: My next guest is the highest ranked woman in Swiss watches, 2 00:00:03,520 --> 00:00:06,520 Speaker 1: I would say watches in general. Ilaria Aresta became the 3 00:00:06,559 --> 00:00:10,040 Speaker 1: new chief executive Domas Pig earlier this year, following two 4 00:00:10,119 --> 00:00:13,159 Speaker 1: decades of consumer goods Giant, Procter and Gamble. Now a 5 00:00:13,240 --> 00:00:15,920 Speaker 1: less say. Her mission is to stabilize a brand and 6 00:00:15,960 --> 00:00:19,560 Speaker 1: catalyze on its transformation from a watchmaker to a luxury house. 7 00:00:19,680 --> 00:00:22,919 Speaker 1: I'm delighted that Laria Aresta joins me now, thanks so much. 8 00:00:23,000 --> 00:00:27,040 Speaker 1: Welcome to Bloomberg and welcome to Lounder, London. Ilaria Aresta, 9 00:00:27,040 --> 00:00:29,920 Speaker 1: when you look at some of the challenges ahead, how's 10 00:00:29,960 --> 00:00:31,560 Speaker 1: it going, and you've been in charge for a year, 11 00:00:31,960 --> 00:00:34,040 Speaker 1: there are things that you wanted to do. Are they 12 00:00:34,040 --> 00:00:34,560 Speaker 1: at speed? 13 00:00:35,080 --> 00:00:35,280 Speaker 2: Yes? 14 00:00:35,360 --> 00:00:36,960 Speaker 3: They are at speed of course, as when I say 15 00:00:37,080 --> 00:00:41,600 Speaker 3: joined the market new reality heat which is which is 16 00:00:41,640 --> 00:00:43,599 Speaker 3: in a way of blessing in disguise, because it gave 17 00:00:43,640 --> 00:00:46,720 Speaker 3: me the chance only honestly to focus on the strategies 18 00:00:47,200 --> 00:00:52,000 Speaker 3: and rethink about the growth opportunities moving forward and stabilize 19 00:00:52,400 --> 00:00:54,640 Speaker 3: this business before continuing their growth. 20 00:00:55,080 --> 00:00:57,080 Speaker 1: Laria, when you look at your main markets, I know 21 00:00:57,240 --> 00:00:59,520 Speaker 1: China was a big one with a lot of question marks, 22 00:00:59,520 --> 00:01:03,240 Speaker 1: today we have stimulus the US. The biggest of course 23 00:01:03,280 --> 00:01:05,679 Speaker 1: market for watch is how are those going. 24 00:01:06,160 --> 00:01:09,480 Speaker 3: We are very well balanced in terms of presence by market, 25 00:01:09,600 --> 00:01:13,160 Speaker 3: so we are not affected by the downward trend. In China, 26 00:01:13,720 --> 00:01:17,440 Speaker 3: we're actually very well spread by country, by regions, so 27 00:01:17,600 --> 00:01:20,640 Speaker 3: we continue solid growth. We're very happy about what we 28 00:01:20,720 --> 00:01:23,360 Speaker 3: put in place for the future, so so far we 29 00:01:23,400 --> 00:01:26,520 Speaker 3: are not affected by the macroeconomic instability. 30 00:01:27,120 --> 00:01:30,040 Speaker 1: The waiting list, of course for a watch is huge. 31 00:01:30,160 --> 00:01:32,360 Speaker 1: Does it mean that as a customer now I have 32 00:01:32,400 --> 00:01:34,679 Speaker 1: a shorter list to get to watch I want. 33 00:01:34,959 --> 00:01:39,600 Speaker 3: We continue having a high demand and we continue luckily 34 00:01:39,680 --> 00:01:45,000 Speaker 3: so continue proceeding with our production strategy, which is highly manual, 35 00:01:45,400 --> 00:01:50,559 Speaker 3: highly elevated in terms of orological signature, so we try 36 00:01:50,600 --> 00:01:54,360 Speaker 3: to push more complications because of that. Of course, it's 37 00:01:54,360 --> 00:01:57,680 Speaker 3: a long process of production and it takes months, if 38 00:01:57,760 --> 00:01:59,360 Speaker 3: not years, to develop a new watch. 39 00:02:00,120 --> 00:02:02,320 Speaker 1: You almost came as an outsider to the watch industry. 40 00:02:02,360 --> 00:02:04,040 Speaker 1: What have you learned over the last twelve months. 41 00:02:04,160 --> 00:02:05,480 Speaker 2: Well, definitely an outsider. 42 00:02:05,520 --> 00:02:07,920 Speaker 3: I've never worked in this industry and it has been 43 00:02:08,200 --> 00:02:12,280 Speaker 3: a wonderful discovery. Definitely is a different dynamic from the 44 00:02:12,360 --> 00:02:15,200 Speaker 3: FMCG world, where I come from from a public literary 45 00:02:15,240 --> 00:02:17,799 Speaker 3: a company and now work in a family company with 46 00:02:18,320 --> 00:02:19,360 Speaker 3: a different governance. 47 00:02:19,760 --> 00:02:22,240 Speaker 2: But definitely the common points are the. 48 00:02:22,240 --> 00:02:25,360 Speaker 3: Leadership needs, the value creation. 49 00:02:25,760 --> 00:02:26,919 Speaker 2: Work that I have to do. 50 00:02:27,440 --> 00:02:31,720 Speaker 3: Of course, it's a completely different time horizon producing a watch. 51 00:02:31,840 --> 00:02:35,440 Speaker 3: It's a very very long investment in time. Sometimes it 52 00:02:35,480 --> 00:02:38,160 Speaker 3: takes even ten years to develop a watch. Quite the 53 00:02:38,160 --> 00:02:40,279 Speaker 3: opposite of FMACG dynamics. 54 00:02:40,560 --> 00:02:42,919 Speaker 1: How many watches you make? Around fifty fifty one. 55 00:02:42,919 --> 00:02:45,480 Speaker 2: That's pretty much where we are, well pretty. 56 00:02:45,240 --> 00:02:48,520 Speaker 1: Much, I mean, are you trying to increase that or actually, 57 00:02:48,720 --> 00:02:51,680 Speaker 1: is demand so important or is the scarcity of it 58 00:02:51,760 --> 00:02:53,919 Speaker 1: so important that you'll stay around these figures. 59 00:02:53,960 --> 00:02:55,200 Speaker 2: It's not about the scarcity. 60 00:02:55,200 --> 00:02:58,760 Speaker 3: It's about our strategy of production and manufacturing, which is 61 00:02:58,840 --> 00:03:03,760 Speaker 3: a focused on on elevating the complications and the innovation 62 00:03:03,919 --> 00:03:07,000 Speaker 3: and watchmaking. That's why we focus much more on research, 63 00:03:07,360 --> 00:03:11,560 Speaker 3: and these activities require time. We want to continue doing 64 00:03:11,600 --> 00:03:13,360 Speaker 3: what we used to do in the past one hundred 65 00:03:13,400 --> 00:03:17,000 Speaker 3: and fifty years ago, which is developing and advancing roological 66 00:03:17,040 --> 00:03:21,680 Speaker 3: invention and high end The high complications are important in 67 00:03:21,720 --> 00:03:25,480 Speaker 3: the mix of products, so we are complicating more our portfolio. 68 00:03:25,520 --> 00:03:27,760 Speaker 1: And so what's the magic in that once you have 69 00:03:27,800 --> 00:03:30,880 Speaker 1: the product, is it how you sounds influencers? Is it 70 00:03:30,960 --> 00:03:34,200 Speaker 1: you know you have? The brand is very well known 71 00:03:34,320 --> 00:03:38,120 Speaker 1: also inside rap music, which has given it an extra 72 00:03:38,360 --> 00:03:39,400 Speaker 1: appards when. 73 00:03:39,280 --> 00:03:40,600 Speaker 2: It starts from the watchmaker. 74 00:03:40,640 --> 00:03:42,520 Speaker 3: When you go to the bench of a watchmaker, you 75 00:03:42,600 --> 00:03:46,880 Speaker 3: feel the passion and the emotion of the watchmaker passing 76 00:03:46,920 --> 00:03:50,120 Speaker 3: this passion and emotion in an object, in a time piece, 77 00:03:50,400 --> 00:03:53,280 Speaker 3: and it's incredible how these emotions can travel all the 78 00:03:53,280 --> 00:03:56,480 Speaker 3: way to the final client. And that's why we're very 79 00:03:56,480 --> 00:03:59,360 Speaker 3: happy to have a diary distribution, because this allows us 80 00:03:59,440 --> 00:04:02,680 Speaker 3: really to tell stories and to explain what it takes 81 00:04:02,840 --> 00:04:04,440 Speaker 3: for that specific watch. 82 00:04:04,240 --> 00:04:06,280 Speaker 2: To end on the risk of our client. 83 00:04:06,440 --> 00:04:08,800 Speaker 1: How much do you want to diversify I know, for example, 84 00:04:09,080 --> 00:04:10,880 Speaker 1: you know there are still plans to do sales of 85 00:04:10,960 --> 00:04:13,160 Speaker 1: the Code eleven fifty nine, but you have the Royal 86 00:04:13,200 --> 00:04:15,360 Speaker 1: equally dominating the sales. 87 00:04:15,760 --> 00:04:17,919 Speaker 3: We want to diversify firs of all from a client's 88 00:04:17,920 --> 00:04:22,560 Speaker 3: stand point. We are underdeveloped in among women, which is 89 00:04:22,600 --> 00:04:26,520 Speaker 3: an industry phenomenon, and now we see women actually being 90 00:04:26,520 --> 00:04:29,679 Speaker 3: more and more interested in mechanical watchmaking and high hand 91 00:04:29,960 --> 00:04:34,760 Speaker 3: mechanical watchmaking. We are breaking the bias that women are 92 00:04:34,839 --> 00:04:35,880 Speaker 3: much more interested in. 93 00:04:36,640 --> 00:04:39,039 Speaker 2: Jewelry watches or quarts watches. 94 00:04:39,080 --> 00:04:42,880 Speaker 3: In reality, they are extremely interested in mechanical watches. They 95 00:04:42,880 --> 00:04:47,040 Speaker 3: are becoming collectors and by twenty thirty we estimate forty 96 00:04:47,040 --> 00:04:50,479 Speaker 3: five percent of buyers will be women and they will 97 00:04:50,520 --> 00:04:54,040 Speaker 3: buy themselves and build themselves their collection. So no longer 98 00:04:54,080 --> 00:04:57,440 Speaker 3: the stereotype of the men buying watches for women. So 99 00:04:57,480 --> 00:05:00,120 Speaker 3: we are trying to cater to women, cater to new 100 00:05:00,200 --> 00:05:04,400 Speaker 3: generations of clients, and hence our portfolio will be adjusted 101 00:05:04,440 --> 00:05:05,680 Speaker 3: to these these clients. 102 00:05:06,400 --> 00:05:09,600 Speaker 1: It does a female buyer shop differently, for example in 103 00:05:09,600 --> 00:05:12,159 Speaker 1: Switzerland or France compared to the US for China. 104 00:05:12,320 --> 00:05:15,720 Speaker 3: That's what we're indeed analyzing and studying. There is a 105 00:05:15,760 --> 00:05:20,120 Speaker 3: different retail environment and ceremony that women are looking for. 106 00:05:20,400 --> 00:05:22,279 Speaker 2: They love actually education, so. 107 00:05:22,160 --> 00:05:25,120 Speaker 3: That's why we're organizing master class for women to go 108 00:05:25,240 --> 00:05:29,200 Speaker 3: behind the scene of the developing a watch. We put 109 00:05:29,279 --> 00:05:33,279 Speaker 3: actually watches in their hands, we dismantle with them just 110 00:05:33,320 --> 00:05:36,280 Speaker 3: to show what the mechanical movement is and it's incredible 111 00:05:36,400 --> 00:05:42,280 Speaker 3: much they are very interested into the mechanical elements of watchmaking. 112 00:05:42,400 --> 00:05:46,239 Speaker 3: So we're moving much more into storytelling than selling real 113 00:05:46,320 --> 00:05:50,920 Speaker 3: workshop hands on activities with women, but also with new generations. 114 00:05:51,560 --> 00:05:53,520 Speaker 1: Laria, I mean, there was this report from de Lloyde 115 00:05:53,520 --> 00:05:55,760 Speaker 1: showing actually the watch industry was failing to make and 116 00:05:55,839 --> 00:05:59,520 Speaker 1: market watches that women wanted to buy. Do you have 117 00:05:59,600 --> 00:06:02,920 Speaker 1: a procestage of sales target that you have towards women? 118 00:06:02,920 --> 00:06:04,240 Speaker 1: How much do you sell to women now and how 119 00:06:04,320 --> 00:06:05,640 Speaker 1: much you want to sell in five years? 120 00:06:05,720 --> 00:06:08,120 Speaker 3: We are in the range of twenty percent, pretty much 121 00:06:08,240 --> 00:06:11,240 Speaker 3: like the market. We aim at a mirror in the 122 00:06:11,279 --> 00:06:14,840 Speaker 3: market reality. We don't want to be behind the market. 123 00:06:14,920 --> 00:06:19,520 Speaker 3: We want to offer women the watches they want. The 124 00:06:19,560 --> 00:06:22,599 Speaker 3: certain point has been not listening to women from the 125 00:06:22,760 --> 00:06:25,320 Speaker 3: entire industry. I think there were so many stereotypes that 126 00:06:25,360 --> 00:06:27,880 Speaker 3: we are trying to break. And also it's important that 127 00:06:27,920 --> 00:06:33,280 Speaker 3: we stop separating the market between women watches and men watches, 128 00:06:33,320 --> 00:06:36,000 Speaker 3: because this is not the way women think about the 129 00:06:36,040 --> 00:06:36,960 Speaker 3: category nor men. 130 00:06:37,040 --> 00:06:40,520 Speaker 1: By the way, Rolex and as making begin roads certified 131 00:06:40,640 --> 00:06:43,280 Speaker 1: pre owned programs will all the mars go the same way. 132 00:06:43,600 --> 00:06:47,719 Speaker 3: We are working on it as a service for clients. 133 00:06:48,200 --> 00:06:50,359 Speaker 3: It's been a while we've been working now on this 134 00:06:50,480 --> 00:06:53,159 Speaker 3: program and now we will be ready in twenty twenty five. 135 00:06:53,360 --> 00:06:55,520 Speaker 1: I mean there's also a lot of you know, speculation 136 00:06:55,640 --> 00:06:58,000 Speaker 1: at least talk about volsh of our movement and the 137 00:06:58,000 --> 00:07:00,159 Speaker 1: fact that there could be a consortium. These are this 138 00:07:00,240 --> 00:07:02,480 Speaker 1: is a Swiss company that makes some of your movement parts. 139 00:07:03,000 --> 00:07:05,080 Speaker 1: Would you like to be involved that they make more 140 00:07:05,120 --> 00:07:08,560 Speaker 1: sense for you know, watchmaker to have in charge of 141 00:07:08,560 --> 00:07:09,440 Speaker 1: all the supply chain. 142 00:07:09,840 --> 00:07:12,400 Speaker 3: What matters to us is that to ensure that the 143 00:07:12,440 --> 00:07:15,600 Speaker 3: industry is well served by our suppliers and we create 144 00:07:15,640 --> 00:07:19,520 Speaker 3: an ecosystem where we can be codependent. We have always 145 00:07:19,600 --> 00:07:21,760 Speaker 3: worked in Switzerland with this system. 146 00:07:21,400 --> 00:07:23,800 Speaker 2: Of a tabli sage. That's how we or the Martigue 147 00:07:24,000 --> 00:07:24,360 Speaker 2: was born. 148 00:07:24,640 --> 00:07:28,240 Speaker 3: We were at the center as a project manager of 149 00:07:28,320 --> 00:07:34,000 Speaker 3: watches and working with different companies, families sometimes expert in 150 00:07:34,120 --> 00:07:37,320 Speaker 3: specific movements. We want to continue to have a healthy 151 00:07:37,440 --> 00:07:40,440 Speaker 3: balance of partnership with external at the same time we 152 00:07:40,480 --> 00:07:45,440 Speaker 3: need to start the owning and mastering. Also the production 153 00:07:45,560 --> 00:07:49,320 Speaker 3: of some elements like ceramics, for example, is an important 154 00:07:49,320 --> 00:07:52,400 Speaker 3: material for us that we start producing ourselves. But we 155 00:07:52,480 --> 00:07:55,360 Speaker 3: believe in the balance of external internal capabilities. 156 00:07:55,600 --> 00:07:56,960 Speaker 1: Like when you look at I mean every day we 157 00:07:57,000 --> 00:08:00,760 Speaker 1: talk about geopolitics and you know, the Trump teriffs impacts 158 00:08:00,800 --> 00:08:02,200 Speaker 1: a company like odo Mars. 159 00:08:02,480 --> 00:08:05,720 Speaker 3: We don't see this impact after the direction in the US. 160 00:08:06,160 --> 00:08:10,240 Speaker 3: At this stage, US continues being the biggest market and 161 00:08:10,280 --> 00:08:12,560 Speaker 3: the one actually that even in twenty twenty three is 162 00:08:12,680 --> 00:08:17,000 Speaker 3: posted the strongest strongest growth. We have high demand. Also 163 00:08:17,040 --> 00:08:20,120 Speaker 3: given our relatives most sizes, we are not so affected 164 00:08:20,160 --> 00:08:22,440 Speaker 3: by geopolitic fluctuate fluctuations. 165 00:08:22,560 --> 00:08:25,160 Speaker 1: So what's your biggest problem solving? I mean over the 166 00:08:25,200 --> 00:08:28,160 Speaker 1: next twelve months, if you'll get your three priorities. 167 00:08:28,320 --> 00:08:31,440 Speaker 3: My priority is first of one, ensuring that we set 168 00:08:31,440 --> 00:08:31,920 Speaker 3: the foundation. 169 00:08:32,000 --> 00:08:33,000 Speaker 2: I set the foundation for. 170 00:08:33,000 --> 00:08:35,920 Speaker 3: This company to thrive and live for the next one 171 00:08:36,000 --> 00:08:38,920 Speaker 3: hundred and fifty years as an independent company. Because we 172 00:08:39,040 --> 00:08:43,280 Speaker 3: want to remain independent and to do so, innovation and 173 00:08:43,320 --> 00:08:45,800 Speaker 3: research is critical. We need to continue being ahead of 174 00:08:45,800 --> 00:08:48,640 Speaker 3: the game. There is another pillar of the strategy which 175 00:08:48,679 --> 00:08:49,880 Speaker 3: is clients centricity. 176 00:08:50,200 --> 00:08:52,720 Speaker 2: You have seen it women on one side, the new generations. 177 00:08:52,760 --> 00:08:55,920 Speaker 3: They all come with a completely different approach to retail, 178 00:08:56,080 --> 00:08:59,840 Speaker 3: to purchasing, but also to type of watch they want. 179 00:09:00,080 --> 00:09:03,800 Speaker 3: I mentioned complications, so we need to be listening. And 180 00:09:03,840 --> 00:09:07,400 Speaker 3: then sustainability is becoming more and more a topic also 181 00:09:07,400 --> 00:09:09,160 Speaker 3: in watchmaking, and we need to be ahead there. 182 00:09:09,440 --> 00:09:11,200 Speaker 1: When you look at the independence of the brand. Again, 183 00:09:11,360 --> 00:09:13,920 Speaker 1: the rumors about all your major other big companies taking 184 00:09:14,000 --> 00:09:16,320 Speaker 1: interest in other march you think the family would ever sell. 185 00:09:16,640 --> 00:09:20,480 Speaker 3: No, we are really committed to remain an independent company. 186 00:09:20,520 --> 00:09:22,679 Speaker 2: As part of the DNA of the company. 187 00:09:22,640 --> 00:09:25,000 Speaker 3: Is thanks to these independence that we are able to 188 00:09:25,960 --> 00:09:28,520 Speaker 3: do the wonderful time pieces we do and being a 189 00:09:28,559 --> 00:09:33,800 Speaker 3: focus in Leval deju which is our cradle where we started. 190 00:09:34,080 --> 00:09:36,800 Speaker 3: We want to guarantee also a certain continuity or way 191 00:09:36,800 --> 00:09:38,760 Speaker 3: of doing business and time pieces. 192 00:09:38,800 --> 00:09:39,920 Speaker 2: So we're committed to that. 193 00:09:40,320 --> 00:09:42,200 Speaker 1: You've been in charge for a years and that means, 194 00:09:42,200 --> 00:09:44,800 Speaker 1: of course changes as you brought in new people. Are 195 00:09:44,800 --> 00:09:48,040 Speaker 1: you halfway there? In ninety percent there? Of the team 196 00:09:48,080 --> 00:09:49,040 Speaker 1: that you want to have. 197 00:09:49,000 --> 00:09:52,839 Speaker 3: Built, ninety percent there? The team is almost complete and 198 00:09:53,200 --> 00:09:56,439 Speaker 3: ready to start. But I'm also very very glad to 199 00:09:56,520 --> 00:10:01,320 Speaker 3: have and a wonderful a chip of watchmakers in manufacturers 200 00:10:01,080 --> 00:10:03,120 Speaker 3: and in other departments that are very solid. 201 00:10:03,120 --> 00:10:05,440 Speaker 2: They have and a wonderful team that supports me. 202 00:10:05,640 --> 00:10:07,280 Speaker 1: Do you have a favorite watch? I don't feel like 203 00:10:07,280 --> 00:10:09,040 Speaker 1: I don't know if it's like asking if you have 204 00:10:09,080 --> 00:10:09,760 Speaker 1: a favorite child. 205 00:10:10,000 --> 00:10:12,440 Speaker 4: I have a favorite and you shouldn't ask this true, 206 00:10:12,440 --> 00:10:16,480 Speaker 4: It's like it's like children. Today, I'm wearing a code 207 00:10:16,520 --> 00:10:18,800 Speaker 4: which is actually I watch that a model that I 208 00:10:18,880 --> 00:10:21,719 Speaker 4: really really love. But my favorite complication by far is 209 00:10:21,760 --> 00:10:22,840 Speaker 4: the perpetual calendar. 210 00:10:23,000 --> 00:10:25,679 Speaker 1: Okay, perfect, thank you so much for doing Ushilarry arresta. 211 00:10:25,720 --> 00:10:28,240 Speaker 1: There are, with all the incredible movements that Odmars Pigue 212 00:10:28,760 --> 00:10:31,800 Speaker 1: has to do to make some of these watches achieve executives. 213 00:10:31,800 --> 00:10:32,920 Speaker 1: There of ap watches