1 00:00:02,520 --> 00:00:11,840 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is Masters in 2 00:00:11,920 --> 00:00:15,760 Speaker 1: Business with Barry Ritholts on Bloomberg Radio. 3 00:00:17,280 --> 00:00:21,240 Speaker 2: This week on an extra special live edition of Masters 4 00:00:21,239 --> 00:00:25,840 Speaker 2: in Business. I'm at the Audreine Newport Concourse the Elegance, 5 00:00:26,239 --> 00:00:29,680 Speaker 2: and my conversation is with Wilhelm Schmidt. He is the 6 00:00:29,720 --> 00:00:33,960 Speaker 2: CEO of Alain and Zona, one of the finest watch 7 00:00:34,000 --> 00:00:38,279 Speaker 2: companies in the world. They're located in glass Shoota, Germany. 8 00:00:38,680 --> 00:00:42,800 Speaker 2: Our conversation talked about everything from collectible time pieces to 9 00:00:42,960 --> 00:00:46,239 Speaker 2: collectible cars. I found it fascinating and I think you 10 00:00:46,280 --> 00:00:49,920 Speaker 2: will also, with no further ado, my discussion with a 11 00:00:50,080 --> 00:00:57,360 Speaker 2: Linen Zonners WILLELM. Schmidt. WILLELM. Schmidt, welcome you. Thank you 12 00:00:57,400 --> 00:01:01,160 Speaker 2: so much for this for hosting this event and participating 13 00:01:01,880 --> 00:01:06,560 Speaker 2: in our conversation. I have so many things to talk 14 00:01:06,600 --> 00:01:09,040 Speaker 2: to you about, but I have to start with this 15 00:01:09,240 --> 00:01:13,520 Speaker 2: prestigious concourse, in this spectacular setting, on what could be 16 00:01:13,560 --> 00:01:17,120 Speaker 2: the nicest day of the year. What is the connection 17 00:01:17,280 --> 00:01:21,520 Speaker 2: between classic cars and fine mechanical time Yes. 18 00:01:21,319 --> 00:01:24,479 Speaker 3: Yeah, I mean people say me because I like cars 19 00:01:24,520 --> 00:01:26,880 Speaker 3: and watches and watches and cars, but I think it's 20 00:01:26,920 --> 00:01:31,920 Speaker 3: of course more than that. You know, watchmaking is that's 21 00:01:31,959 --> 00:01:34,880 Speaker 3: what we emphasize on a ninety percent of our energy. 22 00:01:34,920 --> 00:01:38,839 Speaker 4: We'll go into watchmaking. That's that's that's our home turf. 23 00:01:38,920 --> 00:01:42,319 Speaker 3: But I believe as a global brand, you also need 24 00:01:42,360 --> 00:01:46,240 Speaker 3: to find a world that is focused on something else, 25 00:01:46,319 --> 00:01:49,000 Speaker 3: but where you have sort of a common ground that 26 00:01:49,080 --> 00:01:53,360 Speaker 3: you can walk on. And about fourteen years ago, we 27 00:01:53,360 --> 00:01:57,360 Speaker 3: were looking for a platform where we can show the 28 00:01:57,440 --> 00:02:01,720 Speaker 3: brand and we can bring customers to entertain aim. And 29 00:02:02,160 --> 00:02:06,080 Speaker 3: if you look at these cars, let's start with the 30 00:02:06,160 --> 00:02:09,880 Speaker 3: cars and look at the word concourse of elegance. So 31 00:02:09,919 --> 00:02:14,200 Speaker 3: we're not in vintage cars or racing. It's about concourse 32 00:02:14,280 --> 00:02:17,639 Speaker 3: of elegance. You know, It's about beauty, it's about heritage, 33 00:02:17,680 --> 00:02:22,480 Speaker 3: it's about craftsmanship, it's about design. And if you look 34 00:02:22,680 --> 00:02:26,480 Speaker 3: onto the pillars on which our brand rests, it is 35 00:02:26,560 --> 00:02:30,480 Speaker 3: exactly it's it's history, heritage, it's design, and it's of 36 00:02:30,560 --> 00:02:34,600 Speaker 3: course the craftsmanship. And trust me, these cars that you 37 00:02:34,680 --> 00:02:38,120 Speaker 3: see here as they were built, they were built by 38 00:02:38,200 --> 00:02:42,080 Speaker 3: proper craftsmen, and even today, without proper craftsmen, you will 39 00:02:42,120 --> 00:02:43,239 Speaker 3: not keep them on the road. 40 00:02:43,960 --> 00:02:46,880 Speaker 2: And I know that you studied as an engineer and 41 00:02:47,000 --> 00:02:52,959 Speaker 2: mechanic before eventually moving over to watch is obviously the 42 00:02:52,960 --> 00:02:56,200 Speaker 2: design ethos of some of these cars. Yeah, they're just 43 00:02:56,280 --> 00:03:01,639 Speaker 2: so phenomenal and spectacular. What sort of inspiration do you 44 00:03:01,800 --> 00:03:07,080 Speaker 2: running a fine watchmaker take from the designs of these cars? 45 00:03:07,200 --> 00:03:10,480 Speaker 3: I you know, it's it's I don't think you can 46 00:03:10,560 --> 00:03:14,640 Speaker 3: immediately take something from that world into our world. But 47 00:03:14,760 --> 00:03:17,120 Speaker 3: if you look at these cars, well, the first thing 48 00:03:17,160 --> 00:03:19,720 Speaker 3: that comes to mind is some of them are fifty 49 00:03:19,800 --> 00:03:23,880 Speaker 3: sixty eighty, one hundred years old and we look at 50 00:03:23,919 --> 00:03:28,280 Speaker 3: them today and they still fascinate us. So obviously that 51 00:03:28,400 --> 00:03:32,959 Speaker 3: design survived all the different fashion, change of taste, lots 52 00:03:33,000 --> 00:03:36,240 Speaker 3: of time. They are here today and they're as attractit 53 00:03:36,320 --> 00:03:39,640 Speaker 3: as they were probably back then when they were brand new. 54 00:03:41,360 --> 00:03:42,240 Speaker 4: If you look at. 55 00:03:42,520 --> 00:03:46,640 Speaker 3: Specifically the purpose built car, you know, the race cars, 56 00:03:47,600 --> 00:03:50,440 Speaker 3: they were built for only one purpose and that's what 57 00:03:50,480 --> 00:03:53,520 Speaker 3: they were perfect in. And I think in watches you 58 00:03:53,600 --> 00:03:57,040 Speaker 3: also have to identify what is it that you emphasize 59 00:03:57,080 --> 00:04:00,800 Speaker 3: on and then don't compromise too much on it, because 60 00:04:00,800 --> 00:04:04,920 Speaker 3: if you start making big compromises, you end up with 61 00:04:05,440 --> 00:04:08,320 Speaker 3: something which is, you know, a little bit of everything, 62 00:04:08,400 --> 00:04:11,920 Speaker 3: but nothing particularly really good. So I think that's what 63 00:04:11,960 --> 00:04:15,680 Speaker 3: you can take from cars into watches, identify the purpose, 64 00:04:16,520 --> 00:04:20,520 Speaker 3: and then everything should direct to achieve that. If I 65 00:04:20,560 --> 00:04:23,560 Speaker 3: call it the north Star, you know that purpose and 66 00:04:23,600 --> 00:04:25,120 Speaker 3: for watches is exactly the same. 67 00:04:25,279 --> 00:04:28,640 Speaker 2: So there's a lovely white Mercedes going out there, it's 68 00:04:28,640 --> 00:04:32,359 Speaker 2: the red interior. And I once heard someone ask you 69 00:04:32,440 --> 00:04:35,560 Speaker 2: to compare alonga to a car, and you thought about 70 00:04:35,600 --> 00:04:40,080 Speaker 2: it and said the going because the design was purposeful 71 00:04:40,480 --> 00:04:43,160 Speaker 2: from start to finish. Tell us what you mean by 72 00:04:43,240 --> 00:04:45,479 Speaker 2: purposeful in either watch or card design. 73 00:04:45,520 --> 00:04:47,760 Speaker 3: Well, you know, if you if you go back and 74 00:04:48,440 --> 00:04:53,320 Speaker 3: think about the mid fifties in Germany. I mean I 75 00:04:53,400 --> 00:04:56,520 Speaker 3: wasn't born there, I'm not that old, but you know 76 00:04:56,680 --> 00:04:59,600 Speaker 3: I can I see, I saw pictures, I saw pictures 77 00:04:59,600 --> 00:05:01,599 Speaker 3: of the other to bar, and I saw the cars 78 00:05:02,120 --> 00:05:05,080 Speaker 3: on the road back then. And then think about very 79 00:05:05,120 --> 00:05:10,920 Speaker 3: suddenly something like the gold wing appears. I mean, an 80 00:05:11,000 --> 00:05:14,560 Speaker 3: alien could have landed and caused the same result. 81 00:05:15,720 --> 00:05:19,479 Speaker 4: Tubular frame, horse. 82 00:05:19,200 --> 00:05:22,480 Speaker 3: Powers, you know, two hundred and thirty five kilometers an 83 00:05:22,480 --> 00:05:23,560 Speaker 3: hour high speed. 84 00:05:25,120 --> 00:05:26,720 Speaker 4: You know what they did the doors. 85 00:05:27,000 --> 00:05:30,120 Speaker 2: Because you couldn't have a door over that frame. 86 00:05:30,720 --> 00:05:33,680 Speaker 3: Which to the seals were too wide, so they just 87 00:05:33,720 --> 00:05:36,160 Speaker 3: came up with the doors and you know what they 88 00:05:36,160 --> 00:05:38,800 Speaker 3: did at lemore, they wanted to permit that because in 89 00:05:38,839 --> 00:05:43,160 Speaker 3: the book it didn't say explicitly it's not allowed, but 90 00:05:43,400 --> 00:05:47,680 Speaker 3: you know, leave and they. 91 00:05:45,240 --> 00:05:48,480 Speaker 4: Did absolutely absolutely. 92 00:05:49,120 --> 00:05:51,719 Speaker 3: But I think the car was made for one purpose, 93 00:05:53,640 --> 00:05:57,760 Speaker 3: and I was winning races in the first place, and 94 00:05:57,760 --> 00:06:01,600 Speaker 3: and and paving the way for I see this internationally 95 00:06:01,800 --> 00:06:04,480 Speaker 3: to be back where they want it to be, and 96 00:06:04,480 --> 00:06:06,719 Speaker 3: that is very high up. Don't forget the price of 97 00:06:06,760 --> 00:06:11,080 Speaker 3: these cars. I mean you could probably bought streets for 98 00:06:11,160 --> 00:06:15,120 Speaker 3: the same price, not houses. Streets in the mid. 99 00:06:15,080 --> 00:06:21,320 Speaker 2: Fifties, arguably the first supercar ever made. So your accountoisseur 100 00:06:21,400 --> 00:06:24,320 Speaker 2: of vintage cars, I know you have a couple of Porsches. 101 00:06:24,680 --> 00:06:28,000 Speaker 2: Tell us what else you like in classic automobiles. 102 00:06:28,279 --> 00:06:31,240 Speaker 3: I do like the what I call the odd bolts. 103 00:06:32,000 --> 00:06:34,600 Speaker 3: The porch that I have are actually the exceptions. Because 104 00:06:34,640 --> 00:06:37,279 Speaker 3: everybody knows what the nine to eleven is and probably 105 00:06:37,279 --> 00:06:39,040 Speaker 3: many people know what a three to five six is, 106 00:06:40,040 --> 00:06:40,800 Speaker 3: So that's. 107 00:06:43,680 --> 00:06:46,120 Speaker 4: I don't say utility, but these cars are. 108 00:06:46,200 --> 00:06:49,240 Speaker 3: You know, the three five six is my Swiss pocket knife, 109 00:06:49,440 --> 00:06:51,360 Speaker 3: right because you know it could go on a tour 110 00:06:51,400 --> 00:06:53,480 Speaker 3: with it, which I take that car a lot. And 111 00:06:53,520 --> 00:06:55,599 Speaker 3: if the weather is nice, you just open the roof 112 00:06:55,640 --> 00:06:58,080 Speaker 3: and it takes you thirty seconds, and if the rain comes, 113 00:06:58,640 --> 00:07:01,040 Speaker 3: it takes you thirty seconds to bring the roof back on. 114 00:07:01,520 --> 00:07:04,200 Speaker 3: It is not as water tight as you think it is. 115 00:07:04,200 --> 00:07:05,840 Speaker 3: I have to say. There's still a lot of water 116 00:07:05,920 --> 00:07:09,840 Speaker 3: coming through, but at least you're roughly protected against the environment. 117 00:07:09,920 --> 00:07:11,960 Speaker 3: And the nine to eleven is the car that I 118 00:07:12,000 --> 00:07:14,880 Speaker 3: never wanted and I will never sell. It's just a 119 00:07:14,920 --> 00:07:18,680 Speaker 3: fantastic driving car. But you know, the other cars that 120 00:07:18,720 --> 00:07:21,120 Speaker 3: are have are more for people. 121 00:07:21,480 --> 00:07:23,200 Speaker 4: That really know about cars. 122 00:07:24,760 --> 00:07:27,280 Speaker 3: You know, if I share somebody, I have a Phraser Nash, 123 00:07:27,320 --> 00:07:30,320 Speaker 3: most people wouldn't even know what that is. And that's 124 00:07:30,320 --> 00:07:33,160 Speaker 3: not a surprise because I think they built about six 125 00:07:33,280 --> 00:07:37,120 Speaker 3: hundred cars pre war and then about eighty three post war. 126 00:07:37,680 --> 00:07:39,680 Speaker 3: So the likelihood that you know it if you're not 127 00:07:39,840 --> 00:07:41,720 Speaker 3: into the hobby is very high. 128 00:07:42,320 --> 00:07:46,120 Speaker 2: So I keep meeting people here channing about cars, channing 129 00:07:46,120 --> 00:07:50,240 Speaker 2: about watches. When I was doing a little research on you, 130 00:07:50,800 --> 00:07:54,760 Speaker 2: it turns out that you really know the firm's clients, 131 00:07:55,320 --> 00:07:59,560 Speaker 2: both customers and collectors. What do you do in an 132 00:07:59,560 --> 00:08:01,600 Speaker 2: event like this? How much time do you spend with 133 00:08:01,760 --> 00:08:05,280 Speaker 2: some of the longer collectors and people who are so 134 00:08:05,400 --> 00:08:06,880 Speaker 2: enthusiastic about the brand. 135 00:08:07,000 --> 00:08:08,160 Speaker 4: I would say ninety percent. 136 00:08:08,240 --> 00:08:11,120 Speaker 3: You know, we have not in interviews with you that 137 00:08:11,480 --> 00:08:15,240 Speaker 3: I'm out there and talking to our customers. You know, 138 00:08:15,320 --> 00:08:17,920 Speaker 3: that's the most important for us because at the end, 139 00:08:18,440 --> 00:08:20,760 Speaker 3: we mustn't forget all that is not paid by Lango 140 00:08:20,840 --> 00:08:22,840 Speaker 3: and Zoo. This is fai by our customers. 141 00:08:23,680 --> 00:08:26,520 Speaker 2: So there's a quote of yours I really enjoyed. We 142 00:08:26,560 --> 00:08:31,240 Speaker 2: want to surprise, inspire and enchant our clients with an 143 00:08:31,440 --> 00:08:36,760 Speaker 2: unprecedented imagination and ingenuity. How do you go from those 144 00:08:37,080 --> 00:08:40,880 Speaker 2: lofty goals to turning it into a mechanical time piece. 145 00:08:42,080 --> 00:08:46,760 Speaker 3: Yeah, well, first of all, it takes strict discipline. The 146 00:08:46,840 --> 00:08:50,000 Speaker 3: moment you do things that are not in line with 147 00:08:50,080 --> 00:08:54,600 Speaker 3: who you are, you may surprise people, but probably not 148 00:08:55,120 --> 00:09:00,720 Speaker 3: positively and for sure eventually will dilute your brand equity. 149 00:09:01,080 --> 00:09:03,920 Speaker 3: So the third thing is you have to apply dicipline. 150 00:09:03,960 --> 00:09:07,800 Speaker 3: That's why we have six different watch families, and we 151 00:09:07,880 --> 00:09:10,439 Speaker 3: have sort of arison of seven years, and we want 152 00:09:10,440 --> 00:09:14,200 Speaker 3: to play each Watch family at these ones, let's say 153 00:09:14,240 --> 00:09:18,560 Speaker 3: within twenty four months rolling. So that's you know, sort 154 00:09:18,600 --> 00:09:24,280 Speaker 3: of the engineering structure all attempts. That doesn't answer your question, 155 00:09:24,400 --> 00:09:30,240 Speaker 3: I know, staying traditional but thinking out of the box, 156 00:09:30,800 --> 00:09:34,960 Speaker 3: because our value set is very traditional, but our thinking 157 00:09:35,080 --> 00:09:37,080 Speaker 3: is often very much out of the box. I give 158 00:09:37,080 --> 00:09:39,559 Speaker 3: you a good example that tobion has been invented by 159 00:09:39,559 --> 00:09:42,400 Speaker 3: Brighee I think about two hundred and eighty years back 160 00:09:42,520 --> 00:09:43,559 Speaker 3: or so something like this. 161 00:09:44,559 --> 00:09:46,720 Speaker 4: It was there to enhance. 162 00:09:46,360 --> 00:09:50,640 Speaker 3: The accuracy of a watch by you know, eliminating the 163 00:09:50,679 --> 00:09:52,600 Speaker 3: mistake that happened through gravity. 164 00:09:52,720 --> 00:09:56,079 Speaker 2: Basically mostly pocket watches which we're alwaysacing down. 165 00:09:56,600 --> 00:09:59,920 Speaker 3: And of course it's a very delicate mechanism. It does 166 00:10:00,040 --> 00:10:02,680 Speaker 3: do the job because think about you put your watch 167 00:10:02,720 --> 00:10:05,160 Speaker 3: on the desk next to your bed, so at least 168 00:10:05,160 --> 00:10:09,760 Speaker 3: for ten hours it is exposed to gravity without moving. Anyhow, 169 00:10:10,080 --> 00:10:12,559 Speaker 3: I want to argue the necessity of a tour beyond. 170 00:10:13,440 --> 00:10:16,720 Speaker 3: What we found very interesting is that it was there 171 00:10:16,800 --> 00:10:20,400 Speaker 3: to enhance the accuracy, but it was impossible to set 172 00:10:20,679 --> 00:10:23,800 Speaker 3: time correctly because if you do that with a running second, 173 00:10:24,520 --> 00:10:27,319 Speaker 3: it is pure luck that you hit exactly the point. 174 00:10:27,920 --> 00:10:30,319 Speaker 3: So we were the first in two thousand and nine 175 00:10:30,559 --> 00:10:33,679 Speaker 3: to come up with a mechanism that makes the tour 176 00:10:33,760 --> 00:10:36,880 Speaker 3: beyond stop. So the second hand comes to a stop 177 00:10:36,920 --> 00:10:40,000 Speaker 3: and you can adjust the time properly. We then went 178 00:10:40,120 --> 00:10:43,600 Speaker 3: one step further with the eighteen fifteen tor Beyond, where 179 00:10:43,640 --> 00:10:45,920 Speaker 3: you not only stopped the moment you pull the crown, 180 00:10:47,080 --> 00:10:49,480 Speaker 3: that second then goes to zero, which is the best 181 00:10:49,480 --> 00:10:51,080 Speaker 3: way to adjust. 182 00:10:50,679 --> 00:10:51,920 Speaker 4: Your watch properly. 183 00:10:52,679 --> 00:10:57,160 Speaker 3: Now that sounds easy, but if you take into consideration 184 00:10:57,280 --> 00:11:00,400 Speaker 3: that that tor Beyond has about eighty five little parts, 185 00:11:01,120 --> 00:11:04,480 Speaker 3: the total weight is about zero point seventy five grum wow. 186 00:11:04,960 --> 00:11:08,720 Speaker 3: You know, any impact and the mechanism will be destroyed, 187 00:11:08,720 --> 00:11:10,600 Speaker 3: so you have to be very careful in what you do. 188 00:11:11,240 --> 00:11:13,680 Speaker 3: That is just one example where we think out of 189 00:11:13,679 --> 00:11:17,880 Speaker 3: the box. A chronograph with sort of a running minute, 190 00:11:17,920 --> 00:11:20,720 Speaker 3: which most of them do. You know, the second hand 191 00:11:20,800 --> 00:11:24,640 Speaker 3: goes and it's catching the minute counter. And then as 192 00:11:25,080 --> 00:11:28,600 Speaker 3: the second hand goes on, the minute counter slowly moves, 193 00:11:29,040 --> 00:11:31,760 Speaker 3: which makes it quite difficult. Is in now two minutes 194 00:11:31,880 --> 00:11:35,120 Speaker 3: or three minutes or four minutes, so hours in most 195 00:11:35,120 --> 00:11:39,199 Speaker 3: cases have to jumping. So it's the second nd crosses 196 00:11:39,240 --> 00:11:42,000 Speaker 3: the twelve, it jumps by one minute, so you're absolutely 197 00:11:42,040 --> 00:11:44,360 Speaker 3: clear it's one minute, two minutes, three minutes or formluta, 198 00:11:44,360 --> 00:11:46,160 Speaker 3: and not is it two and a half or the 199 00:11:46,280 --> 00:11:50,200 Speaker 3: three just little things that don't mean a lot for 200 00:11:50,320 --> 00:11:53,480 Speaker 3: people that are not into fine watches, but they mean 201 00:11:53,520 --> 00:11:54,880 Speaker 3: the world for our customers. 202 00:11:55,240 --> 00:11:57,400 Speaker 2: I want to talk about the Odysseus and a little 203 00:11:57,400 --> 00:12:01,400 Speaker 2: bit and that particular chronograph which is early unique, but 204 00:12:01,679 --> 00:12:03,640 Speaker 2: we're not quite there yet. I want to stay with 205 00:12:03,760 --> 00:12:08,520 Speaker 2: the fact that Langa is famously a German watchmaker. What 206 00:12:08,679 --> 00:12:13,199 Speaker 2: advantages are there or disadvantages being a German maker in 207 00:12:13,240 --> 00:12:16,000 Speaker 2: an industry dominated by giant Swiss brands. 208 00:12:16,080 --> 00:12:19,920 Speaker 3: Look, I think it's more an advantage than it is advantage. 209 00:12:20,760 --> 00:12:23,520 Speaker 3: First of all, I always say there is no Swiss 210 00:12:23,520 --> 00:12:27,680 Speaker 3: watchmaking and there's no German watchmaking, because think about it. 211 00:12:27,720 --> 00:12:29,800 Speaker 3: I mean, you can find Swiss made watches for one 212 00:12:29,880 --> 00:12:32,280 Speaker 3: hundred euro and then you find the same for a 213 00:12:32,280 --> 00:12:35,800 Speaker 3: few million. How how can how can be there any 214 00:12:35,800 --> 00:12:39,920 Speaker 3: common denominator that covers the Swiss made from there to there? 215 00:12:40,200 --> 00:12:42,520 Speaker 3: So same for Germany. You know, we have watches that 216 00:12:42,520 --> 00:12:46,199 Speaker 3: are very inexpensive, and then you have us with sometimes 217 00:12:46,240 --> 00:12:49,800 Speaker 3: watches up to two million. Obviously at the at the 218 00:12:49,840 --> 00:12:53,080 Speaker 3: top end, it's like a package. It's like a box 219 00:12:53,120 --> 00:12:57,360 Speaker 3: of chocolate, you know, And our chocolate is craftsmanship, history 220 00:12:57,400 --> 00:12:59,720 Speaker 3: and design and we stay very strict to it. 221 00:13:00,960 --> 00:13:04,960 Speaker 2: So some of the bigger brands put out watches in 222 00:13:05,000 --> 00:13:09,920 Speaker 2: the millions of units. Rollox famously two to three million. 223 00:13:10,559 --> 00:13:14,120 Speaker 2: Protec is known to do about seventy five thousand watches, 224 00:13:14,720 --> 00:13:18,600 Speaker 2: Longer does a small fraction. Every piece is made by 225 00:13:18,679 --> 00:13:23,880 Speaker 2: hand assembled twice. 226 00:13:22,920 --> 00:13:25,240 Speaker 3: And not because we can't get it right first time, 227 00:13:25,360 --> 00:13:25,920 Speaker 3: just to make that. 228 00:13:26,280 --> 00:13:29,760 Speaker 2: Reassembled first, and then the pieces are taking apart in 229 00:13:29,920 --> 00:13:32,200 Speaker 2: hand engraved and decorated ways. 230 00:13:32,280 --> 00:13:36,440 Speaker 3: It's, you know, because we use the original sources. We 231 00:13:36,559 --> 00:13:41,400 Speaker 3: believe that anything, that nothing, is much better than than 232 00:13:41,440 --> 00:13:44,559 Speaker 3: German silver. You know, that's the perfect material. It's been 233 00:13:44,920 --> 00:13:47,040 Speaker 3: It's been good for the last one hundred and fifty years. 234 00:13:47,440 --> 00:13:49,600 Speaker 3: So we believe in this and we don't want to 235 00:13:49,760 --> 00:13:53,559 Speaker 3: coat it, which means over time it will develop a 236 00:13:53,679 --> 00:13:54,600 Speaker 3: very nice petina. 237 00:13:54,640 --> 00:13:54,840 Speaker 2: You know. 238 00:13:54,880 --> 00:13:57,400 Speaker 4: The silver will get that little gold and glue, which 239 00:13:57,440 --> 00:13:58,200 Speaker 4: is beautiful. 240 00:13:58,400 --> 00:14:02,400 Speaker 3: The problem is you breathe on it, or you touch it, 241 00:14:02,400 --> 00:14:04,920 Speaker 3: it will look very ugly very soon and you cannot 242 00:14:04,960 --> 00:14:05,679 Speaker 3: even clean it. 243 00:14:05,679 --> 00:14:06,680 Speaker 4: You have to machine it. 244 00:14:07,240 --> 00:14:13,800 Speaker 3: So that means to maintain a statical and technical perfection, 245 00:14:14,760 --> 00:14:18,800 Speaker 3: you first have to make sure your movement is absolutely 246 00:14:18,920 --> 00:14:22,840 Speaker 3: up to scratch. All tolerances are there, everything is adjusted, 247 00:14:23,080 --> 00:14:26,400 Speaker 3: everything works. You go through the test, and if you 248 00:14:26,480 --> 00:14:30,320 Speaker 3: have assurance, you know that movement is like it has 249 00:14:30,360 --> 00:14:33,640 Speaker 3: to be. It goes back to the watchmaker. He or 250 00:14:33,760 --> 00:14:37,320 Speaker 3: she will disassemble it, clean it, put in the final 251 00:14:37,360 --> 00:14:39,640 Speaker 3: decoration because you know, you know, you don't have to 252 00:14:39,680 --> 00:14:43,480 Speaker 3: adjust anymore because that's done. You clean it, you oil it, 253 00:14:44,000 --> 00:14:46,360 Speaker 3: you put the final decoration, and in case that it 254 00:14:46,400 --> 00:14:49,720 Speaker 3: goes again through the test and only then it ends 255 00:14:49,800 --> 00:14:51,320 Speaker 3: up a happy wrist. 256 00:14:51,480 --> 00:14:54,840 Speaker 2: So inherently, the way you build watches, you're going to 257 00:14:54,880 --> 00:14:59,560 Speaker 2: be somewhat limited in production. How does that affect the 258 00:14:59,600 --> 00:15:03,560 Speaker 2: decision making process of what sort of watches you make? 259 00:15:03,640 --> 00:15:06,800 Speaker 2: And I know there are a number of longer watches 260 00:15:06,840 --> 00:15:09,960 Speaker 2: that are limited editions of one hundred or fifty or 261 00:15:09,960 --> 00:15:12,920 Speaker 2: even twenty five. What's the thinking behind that? 262 00:15:13,080 --> 00:15:15,200 Speaker 4: Very easy? You know. 263 00:15:16,080 --> 00:15:20,240 Speaker 3: Sometimes let's take the Mint Repeter perpetual calendar that we 264 00:15:20,360 --> 00:15:22,560 Speaker 3: launched this year in April. We know it's going to 265 00:15:22,600 --> 00:15:26,320 Speaker 3: take us three to four years to build the fifty watches. 266 00:15:27,360 --> 00:15:30,880 Speaker 2: Meaning from start to finish, you'll do a couple of 267 00:15:30,920 --> 00:15:32,560 Speaker 2: watches every year. 268 00:15:33,120 --> 00:15:34,120 Speaker 4: Wow, you know so? 269 00:15:34,240 --> 00:15:37,200 Speaker 3: And we know that so in today's world. To come 270 00:15:37,320 --> 00:15:40,240 Speaker 3: up now with this sort of capacity and say we 271 00:15:40,320 --> 00:15:42,520 Speaker 3: produce one hundred means the last one we'll get to 272 00:15:42,560 --> 00:15:43,640 Speaker 3: watch in eight years. 273 00:15:43,760 --> 00:15:44,760 Speaker 2: Right, that's a long time. 274 00:15:44,840 --> 00:15:46,040 Speaker 4: That doesn't make any sense. 275 00:15:46,120 --> 00:15:50,040 Speaker 3: So what that's, you know, capacity balanced by what we 276 00:15:50,120 --> 00:15:54,800 Speaker 3: think we can expect from a customer to wait that 277 00:15:55,040 --> 00:15:56,000 Speaker 3: usually gives them a year. 278 00:15:56,040 --> 00:15:59,720 Speaker 2: About the limitation, I was looking at the longer perpetual 279 00:16:00,160 --> 00:16:03,440 Speaker 2: in black and I stopped by the boutique and they said, 280 00:16:03,440 --> 00:16:07,320 Speaker 2: figure somewhere between twelve and fifteen months before yours is ready. 281 00:16:07,600 --> 00:16:11,440 Speaker 2: So when someone orders a watch that goes into the 282 00:16:11,480 --> 00:16:15,160 Speaker 2: system and my watch is moving like it's literally that 283 00:16:15,680 --> 00:16:19,720 Speaker 2: specific coming up. We continue our conversation with A Langan's 284 00:16:19,720 --> 00:16:24,480 Speaker 2: own as CEO, Wilhelm Schmidt. I'm Barry Ridults. You're listening 285 00:16:24,520 --> 00:16:51,720 Speaker 2: to Masters in Business on Bloomberg Radio. I'm Bury Redults. 286 00:16:51,760 --> 00:16:55,320 Speaker 2: You're listening to Masters in Business on Bloomberg Radio. Let's 287 00:16:55,360 --> 00:17:01,200 Speaker 2: continue our conversation with Wilhelm Schmidt, CEO of watchmaker A 288 00:17:01,360 --> 00:17:05,960 Speaker 2: Langon Zonar. So the Odysseus came out, very unique looking 289 00:17:06,040 --> 00:17:09,840 Speaker 2: sports watch. Then a lightweight titanium version. 290 00:17:09,560 --> 00:17:12,159 Speaker 3: No first of white gold, white gold, so it was 291 00:17:12,280 --> 00:17:19,200 Speaker 3: twenty fourth of October nineteen stainless steel. In April twenty twenty, 292 00:17:19,320 --> 00:17:23,760 Speaker 3: white gold, then titanium, then the honey gold, then the 293 00:17:23,800 --> 00:17:27,159 Speaker 3: honey gold. No, then the odysseous chronograph, the chronograph, and 294 00:17:27,200 --> 00:17:28,000 Speaker 3: then the honey gold. 295 00:17:28,119 --> 00:17:32,360 Speaker 2: So let's talk about the chronograph. Most people are familiar 296 00:17:32,440 --> 00:17:36,800 Speaker 2: with chronos because they typically have two or three subdcs, 297 00:17:37,480 --> 00:17:38,879 Speaker 2: not with the Odysseus. 298 00:17:38,920 --> 00:17:41,240 Speaker 4: Now, that wouldn't work because of the design of the dial. 299 00:17:41,320 --> 00:17:43,920 Speaker 2: You know, if this is a big day and date, if. 300 00:17:43,760 --> 00:17:46,800 Speaker 3: You take the dial off and you look at the 301 00:17:46,840 --> 00:17:49,520 Speaker 3: movement on the upside of the movement, you will see 302 00:17:49,560 --> 00:17:52,080 Speaker 3: it's almost all blocked, so there is no way that 303 00:17:52,200 --> 00:17:55,240 Speaker 3: you come through. And of course we also didn't want 304 00:17:55,359 --> 00:17:57,800 Speaker 3: to increase the size by much. You know, we want 305 00:17:57,800 --> 00:18:00,520 Speaker 3: to have a wearable watch. So the only was to 306 00:18:00,600 --> 00:18:04,160 Speaker 3: utilize the center even more than we usually do. And 307 00:18:04,400 --> 00:18:08,520 Speaker 3: that's why the chronograph, the second and the minute hand 308 00:18:08,600 --> 00:18:11,159 Speaker 3: comes out of the center. 309 00:18:10,480 --> 00:18:14,240 Speaker 2: And when you reset the chronograph, it does a little 310 00:18:14,280 --> 00:18:18,200 Speaker 2: bit of a dance. Yeah, that's kind of unusual. I've 311 00:18:18,240 --> 00:18:21,440 Speaker 2: spoken to a lot of people about this. Nobody has 312 00:18:21,480 --> 00:18:24,560 Speaker 2: been able to explain that to me. You're my last. 313 00:18:24,640 --> 00:18:29,719 Speaker 4: Hope. It's very easy because they are yet together. So 314 00:18:29,800 --> 00:18:32,840 Speaker 4: if you reset it, the. 315 00:18:35,000 --> 00:18:37,680 Speaker 3: Minute hand will do as many turns as the second 316 00:18:37,680 --> 00:18:40,719 Speaker 3: because it's linked right, and it is so quick that 317 00:18:40,800 --> 00:18:43,600 Speaker 3: you can't see it. I probably would take a good 318 00:18:43,600 --> 00:18:45,800 Speaker 3: camera and then you slow it down to see it. 319 00:18:45,840 --> 00:18:49,520 Speaker 3: But basically, if you have stopped seventeen minutes and let's 320 00:18:49,560 --> 00:18:55,480 Speaker 3: say thirty seconds, what works like this is factually seven 321 00:18:55,560 --> 00:19:00,800 Speaker 3: times going around to come to zero. Why does it 322 00:19:00,840 --> 00:19:04,200 Speaker 3: do that because it's get together. It's you know, because 323 00:19:04,200 --> 00:19:06,199 Speaker 3: it comes out of directly. 324 00:19:05,560 --> 00:19:07,359 Speaker 2: Because of it's a censor hand. 325 00:19:07,480 --> 00:19:08,520 Speaker 4: That's exactly the point. 326 00:19:08,600 --> 00:19:12,399 Speaker 2: Huh, that's really that's really fascinating. So a watch like 327 00:19:12,440 --> 00:19:15,400 Speaker 2: the zeat Work or the Odysseus, how long is that 328 00:19:15,480 --> 00:19:20,120 Speaker 2: process when someone first conceives of this take us through? 329 00:19:20,160 --> 00:19:23,879 Speaker 2: How long it is from idea to the finished product 330 00:19:23,880 --> 00:19:24,440 Speaker 2: in the boutique? 331 00:19:24,600 --> 00:19:27,600 Speaker 3: Very different, you know. Odysseus, as I said, took us 332 00:19:27,600 --> 00:19:31,879 Speaker 3: twenty five years. Basically, I think that the real process 333 00:19:31,920 --> 00:19:36,680 Speaker 3: where we identify that's the face you know that looks 334 00:19:36,720 --> 00:19:40,959 Speaker 3: different to anything else in the market, that will not 335 00:19:41,160 --> 00:19:48,320 Speaker 3: cannibalize anything within our own range to launch to watch 336 00:19:48,320 --> 00:19:51,640 Speaker 3: it the twenty fourth of October in twenty nineteen. 337 00:19:51,920 --> 00:19:52,359 Speaker 4: Always good. 338 00:19:52,440 --> 00:19:55,920 Speaker 2: Seven years, seven years from start to finish, that's that's amazing. 339 00:19:56,480 --> 00:20:01,480 Speaker 2: So yesterday at the event to new Longest dropped the 340 00:20:01,600 --> 00:20:06,159 Speaker 2: Saxonia Thin Yes in black, Onyx and platinum Yes right. 341 00:20:06,040 --> 00:20:08,960 Speaker 3: True, honeyguld and platinum. 342 00:20:09,000 --> 00:20:14,399 Speaker 2: Really striking dress watches. The Saxonia are sort of I 343 00:20:14,440 --> 00:20:17,280 Speaker 2: don't want to call it entry level, but they're less 344 00:20:17,440 --> 00:20:19,399 Speaker 2: pricey than some of the other watches. 345 00:20:19,320 --> 00:20:22,959 Speaker 3: Are more simple's shock, you know, for us, it's all 346 00:20:23,000 --> 00:20:26,200 Speaker 3: about the amount of parts, the years it take to develop, 347 00:20:27,240 --> 00:20:31,320 Speaker 3: the hours it takes to assemble that at the end 348 00:20:31,400 --> 00:20:35,120 Speaker 3: will define whether it's a complicated watch or I would 349 00:20:35,200 --> 00:20:38,080 Speaker 3: say more simple watch and two hands. I think we 350 00:20:38,160 --> 00:20:39,840 Speaker 3: don't go more simple than two hands. 351 00:20:40,280 --> 00:20:44,919 Speaker 2: And my first nice dress watch was a rose gold 352 00:20:45,320 --> 00:20:49,440 Speaker 2: Saxonia Mood Phase see over black Yes. And one of 353 00:20:49,480 --> 00:20:54,000 Speaker 2: the things that people are genuinely surprised is the same 354 00:20:54,119 --> 00:20:58,200 Speaker 2: level of detail and finishing what you describe as simple 355 00:20:58,680 --> 00:21:01,200 Speaker 2: A lot of people think of in terms of price point. 356 00:21:01,480 --> 00:21:03,240 Speaker 2: There seems to be no different. 357 00:21:02,960 --> 00:21:04,880 Speaker 3: No, no, no, it's you know, if you look at our 358 00:21:06,040 --> 00:21:09,919 Speaker 3: process in the manufactory, we can you know, the people 359 00:21:09,920 --> 00:21:13,760 Speaker 3: that work on finish. They sometimes have no idea where 360 00:21:13,800 --> 00:21:16,800 Speaker 3: that part will end up, so they will not say, oh, 361 00:21:16,840 --> 00:21:19,560 Speaker 3: that goes into grand complication. We do it a little better, 362 00:21:19,720 --> 00:21:21,879 Speaker 3: or that goes into thin how we do it a 363 00:21:21,880 --> 00:21:23,040 Speaker 3: little That's. 364 00:21:22,760 --> 00:21:25,760 Speaker 2: The same thing, regardless of a million dollars or entry life. 365 00:21:26,000 --> 00:21:29,600 Speaker 3: We do not distinguish in quality at all. It's all 366 00:21:29,680 --> 00:21:35,119 Speaker 3: the same. Emphasize on love to detail, craftsmanship, hand polishing, decoration, 367 00:21:35,640 --> 00:21:41,080 Speaker 3: hand engraving. There is no difference double assembly. It's one process. 368 00:21:41,280 --> 00:21:44,920 Speaker 3: It doesn't matter whether the watch will cost twenty five 369 00:21:45,000 --> 00:21:46,840 Speaker 3: thousand euro or two million. 370 00:21:47,119 --> 00:21:49,320 Speaker 2: And when people say to me, I'm looking for an 371 00:21:49,359 --> 00:21:54,760 Speaker 2: elegant dress watch, but something that's not too pricey, my 372 00:21:55,000 --> 00:21:58,760 Speaker 2: answers alt is to Saxonia. It's just timeless and so 373 00:21:58,920 --> 00:22:02,840 Speaker 2: elegant and continues to just Yes, the design gets better 374 00:22:02,880 --> 00:22:03,720 Speaker 2: over time. 375 00:22:03,760 --> 00:22:06,840 Speaker 3: And and it's it's it's a you know, people, you 376 00:22:06,880 --> 00:22:08,480 Speaker 3: look at it and you see it's an Alango on 377 00:22:08,560 --> 00:22:12,600 Speaker 3: zurna watch. If you have something complicated like this, you 378 00:22:12,600 --> 00:22:14,359 Speaker 3: have a lot of hands to work with. You have 379 00:22:14,400 --> 00:22:16,439 Speaker 3: the sub dials. You know you have to push, but 380 00:22:16,840 --> 00:22:19,359 Speaker 3: you can do a lot. But I think one of 381 00:22:19,359 --> 00:22:22,200 Speaker 3: the biggest challenge for designers is you have two hands 382 00:22:22,240 --> 00:22:24,560 Speaker 3: to work with and not a lot on the on 383 00:22:24,600 --> 00:22:27,679 Speaker 3: the dial. Make it an alanngo on zna. 384 00:22:28,320 --> 00:22:31,280 Speaker 2: So the data graph has been called one of the 385 00:22:31,320 --> 00:22:36,520 Speaker 2: best pronographs ever designed. What's the core of that, watches 386 00:22:36,920 --> 00:22:38,560 Speaker 2: up Peel, What makes that so special? 387 00:22:39,160 --> 00:22:41,400 Speaker 4: I think it's. 388 00:22:42,359 --> 00:22:45,200 Speaker 3: It's it's it's more than just a watch. 389 00:22:47,000 --> 00:22:47,199 Speaker 4: You know. 390 00:22:47,240 --> 00:22:50,960 Speaker 3: I'm a watch collector for a long long time. I 391 00:22:51,000 --> 00:22:56,560 Speaker 3: can remember when I opened the newspaper in twenty in 392 00:22:58,080 --> 00:23:00,480 Speaker 3: ninety four and I saw the act with the four 393 00:23:00,560 --> 00:23:08,680 Speaker 3: Langa watches ninety nine, where most companies around the world 394 00:23:08,800 --> 00:23:14,679 Speaker 3: we're still using somebody else's movement and often the same supplier. 395 00:23:17,280 --> 00:23:20,560 Speaker 3: Here comes a chronograph, which is one of the crown 396 00:23:20,680 --> 00:23:26,200 Speaker 3: things in watchmaking from Germany, in a very unique design 397 00:23:26,400 --> 00:23:29,800 Speaker 3: with an outsized date. I think it was a wake 398 00:23:29,920 --> 00:23:35,760 Speaker 3: up call and we must not underestimate what that watch 399 00:23:35,800 --> 00:23:40,720 Speaker 3: started in the watch industry because before that chronograph didn't 400 00:23:40,760 --> 00:23:43,000 Speaker 3: play a role there to supplier and that was it 401 00:23:43,040 --> 00:23:48,080 Speaker 3: basically after that, and if you then go and analyze 402 00:23:48,119 --> 00:23:52,040 Speaker 3: what happened from then to the following five six, seven years, 403 00:23:52,280 --> 00:23:56,400 Speaker 3: a lot of chronograph movements came out. So that's why 404 00:23:56,440 --> 00:24:01,040 Speaker 3: this watch is so important for us. That was the 405 00:24:01,119 --> 00:24:06,040 Speaker 3: first real complication other than the torbyond polymerit that we 406 00:24:06,119 --> 00:24:10,159 Speaker 3: worked on, and I think that was a wake up 407 00:24:10,240 --> 00:24:14,680 Speaker 3: call and it just gave us a reputation as a 408 00:24:14,720 --> 00:24:20,840 Speaker 3: solid watchmaker that it's the next level. 409 00:24:20,600 --> 00:24:23,919 Speaker 2: Up for sure, Absolutely the next level up. So you 410 00:24:24,000 --> 00:24:26,919 Speaker 2: get to spend a lot of time with clients, with 411 00:24:27,000 --> 00:24:33,040 Speaker 2: customers still lectors. How are you seeing their expectations and 412 00:24:33,119 --> 00:24:37,320 Speaker 2: desires changing? What does the client base look for from 413 00:24:37,400 --> 00:24:38,680 Speaker 2: Langa over the next. 414 00:24:38,600 --> 00:24:41,520 Speaker 4: I think it does it never changed, never changed. 415 00:24:41,640 --> 00:24:41,720 Speaker 2: No. 416 00:24:43,560 --> 00:24:47,399 Speaker 3: First of all, do you have any idea what you 417 00:24:47,480 --> 00:24:51,360 Speaker 3: were like in three years from no one who does exactly. 418 00:24:51,440 --> 00:24:53,760 Speaker 3: So when people say, oh, you come with a small 419 00:24:53,800 --> 00:24:56,840 Speaker 3: watch because you follow trend, I say, look, I mean 420 00:24:56,880 --> 00:24:59,040 Speaker 3: I wish we had known seven years ago when we 421 00:24:59,080 --> 00:25:00,760 Speaker 3: started develop the movement. 422 00:25:01,760 --> 00:25:02,800 Speaker 4: We're not in the. 423 00:25:02,800 --> 00:25:06,840 Speaker 3: Fashion industry business. You know, our processes and the time 424 00:25:06,880 --> 00:25:10,400 Speaker 3: it takes to come to market is so long that 425 00:25:10,480 --> 00:25:14,640 Speaker 3: you maybe can anticipate, but maybe you have to stay 426 00:25:14,760 --> 00:25:15,640 Speaker 3: true to yourself. 427 00:25:15,640 --> 00:25:16,960 Speaker 4: And I think the one thing. 428 00:25:16,800 --> 00:25:21,840 Speaker 3: Which our customers expect from us is authenticity. It has 429 00:25:21,920 --> 00:25:24,800 Speaker 3: to be in our Langa on Zouna and if you 430 00:25:25,359 --> 00:25:30,280 Speaker 3: had followed the discussion after we launched the Odysseus, because 431 00:25:30,320 --> 00:25:32,280 Speaker 3: you know, we always said we only precious metal, and 432 00:25:32,320 --> 00:25:35,960 Speaker 3: here can we steal, and later on with titanium. So 433 00:25:36,280 --> 00:25:39,160 Speaker 3: of course there was a heated debate. Of course there was, 434 00:25:39,240 --> 00:25:41,679 Speaker 3: and we were aware of it because that is a 435 00:25:41,800 --> 00:25:47,920 Speaker 3: tension that on purpose, we wanted. There were a lot 436 00:25:47,920 --> 00:25:50,159 Speaker 3: of people that said it's. 437 00:25:50,080 --> 00:25:50,560 Speaker 4: Not for me. 438 00:25:50,880 --> 00:25:56,040 Speaker 3: I see lang as dress watch only there were luckily 439 00:25:56,119 --> 00:26:00,000 Speaker 3: a lot more people that say, I want that watch desperately. 440 00:26:00,320 --> 00:26:07,639 Speaker 3: We can produce fine. However, it just opened up a 441 00:26:07,760 --> 00:26:12,720 Speaker 3: new chapter in our design language because now we have 442 00:26:12,800 --> 00:26:17,600 Speaker 3: a playground to try out things that you would never 443 00:26:17,720 --> 00:26:20,280 Speaker 3: do with our classical watch families. 444 00:26:20,000 --> 00:26:23,600 Speaker 2: And every car enthusiast knows. When the Porsche nine to 445 00:26:23,600 --> 00:26:27,479 Speaker 2: eleven came out, the three point fifty six purists were upset, 446 00:26:27,600 --> 00:26:30,400 Speaker 2: what are you giving us such a big car? Who 447 00:26:30,440 --> 00:26:31,560 Speaker 2: needs six cylinders? 448 00:26:31,880 --> 00:26:35,439 Speaker 3: Absolutely, that's why they built in nine twelve. Put the 449 00:26:35,440 --> 00:26:38,760 Speaker 3: four cylinder in, you know, That's exactly what they did. 450 00:26:39,800 --> 00:26:40,919 Speaker 4: Yeah, that's finny. 451 00:26:40,960 --> 00:26:44,240 Speaker 2: Sometimes I love this quote of yours, and I'm wondering 452 00:26:44,280 --> 00:26:48,080 Speaker 2: if it still applies. You said, part of longest success 453 00:26:48,400 --> 00:26:51,760 Speaker 2: is that we're a secret. So question number one is 454 00:26:51,880 --> 00:26:55,040 Speaker 2: what makes that an asset? And question number two is, 455 00:26:55,840 --> 00:26:58,480 Speaker 2: look at this event. How much longer is this a secret? 456 00:26:58,720 --> 00:27:00,800 Speaker 4: Oh? It is? It is. It is in the white world. 457 00:27:00,840 --> 00:27:03,520 Speaker 3: We are still absolutely unknown, and I think that's a 458 00:27:03,520 --> 00:27:04,359 Speaker 3: good place to be. 459 00:27:07,440 --> 00:27:07,719 Speaker 4: There are. 460 00:27:07,760 --> 00:27:12,400 Speaker 3: There are three reasons to it. The one is what 461 00:27:12,520 --> 00:27:19,359 Speaker 3: we do is very difficult to understand, specifically at the 462 00:27:19,400 --> 00:27:23,240 Speaker 3: price point that we request for people that are not 463 00:27:23,359 --> 00:27:27,240 Speaker 3: into fine watchmaking. Why would you spend so much money 464 00:27:27,320 --> 00:27:29,560 Speaker 3: on a watch when your iPhone gives you the time 465 00:27:29,600 --> 00:27:33,119 Speaker 3: more precisely? You know that the general thinking for sure. 466 00:27:33,600 --> 00:27:37,359 Speaker 3: The second is in today's world, you don't want to 467 00:27:37,480 --> 00:27:39,399 Speaker 3: show off too much. 468 00:27:40,240 --> 00:27:43,119 Speaker 2: These are very much under the radar, and I am 469 00:27:43,160 --> 00:27:46,679 Speaker 2: always shocked at people who haven't the slightest idea when 470 00:27:46,720 --> 00:27:50,560 Speaker 2: I'm wearing this as opposed to the better it's nice. 471 00:27:50,680 --> 00:27:54,240 Speaker 3: I mean that gives you a certain confidence and a site, 472 00:27:54,320 --> 00:27:56,920 Speaker 3: and it's it's you know, you don't need to shout. 473 00:27:57,440 --> 00:28:00,480 Speaker 3: And on the other hand, and I'm sure you can 474 00:28:00,640 --> 00:28:03,160 Speaker 3: if you see somebody that is also having a langer 475 00:28:03,240 --> 00:28:08,040 Speaker 3: on Zouna. It's not difficult to get the communications started, 476 00:28:08,080 --> 00:28:08,800 Speaker 3: isn't it? 477 00:28:09,000 --> 00:28:09,480 Speaker 4: Immediately? 478 00:28:10,240 --> 00:28:11,000 Speaker 2: Something to chat. 479 00:28:11,160 --> 00:28:14,080 Speaker 3: But if you know, you know, you know, and that's 480 00:28:14,119 --> 00:28:17,960 Speaker 3: why I believe it is so important to remain a secret. 481 00:28:18,359 --> 00:28:22,160 Speaker 3: I also admit the real challenges to secret, to share 482 00:28:22,200 --> 00:28:26,120 Speaker 3: the secret with the right crowd of people, because at 483 00:28:26,160 --> 00:28:29,840 Speaker 3: the end, you know, I mean, I'm fine. But whenever 484 00:28:29,920 --> 00:28:34,760 Speaker 3: we take the new apprenticeship trainees in in August, I 485 00:28:34,760 --> 00:28:38,080 Speaker 3: feel the duty on my shoulders because now they start 486 00:28:38,440 --> 00:28:40,800 Speaker 3: a career as watchmaker and they're in for the next 487 00:28:40,880 --> 00:28:43,360 Speaker 3: forty years. So we need to make sure that the 488 00:28:43,440 --> 00:28:46,240 Speaker 3: next generation knows what we do and we stay relevant 489 00:28:46,240 --> 00:28:46,560 Speaker 3: for this. 490 00:28:47,040 --> 00:28:49,120 Speaker 2: So I only have you for a few more minutes. 491 00:28:49,160 --> 00:28:51,600 Speaker 2: I want to get to my last couple of questions. 492 00:28:52,200 --> 00:28:56,400 Speaker 2: Speaking of the next generation, Yeah, how do you appeal 493 00:28:56,520 --> 00:29:01,680 Speaker 2: to younger buyers and what sort of approach do you 494 00:29:01,760 --> 00:29:05,760 Speaker 2: have as all these tastes seem to shift amongst the 495 00:29:05,840 --> 00:29:07,320 Speaker 2: twenty and thirty something crowd. 496 00:29:07,520 --> 00:29:10,920 Speaker 3: YEA, gladly, we don't have a real issue here. We 497 00:29:11,000 --> 00:29:17,120 Speaker 3: have a surprisingly young customer base. I always say that, 498 00:29:17,560 --> 00:29:19,840 Speaker 3: and I never understood it. I mean, if you're young 499 00:29:20,560 --> 00:29:25,440 Speaker 3: and you're interested with what speaks against quality, longevity, classless 500 00:29:25,440 --> 00:29:31,920 Speaker 3: and timeless design, robustness, value creation, I mean It doesn't 501 00:29:31,960 --> 00:29:34,000 Speaker 3: matter whether you are one hundred years old or ten. 502 00:29:35,080 --> 00:29:38,760 Speaker 3: If you're into that, you're gonna like it. The way 503 00:29:38,800 --> 00:29:42,680 Speaker 3: we connect with these people it's different to the way, 504 00:29:43,600 --> 00:29:46,320 Speaker 3: let's say I was connected to the watch industry because 505 00:29:46,720 --> 00:29:48,760 Speaker 3: as I grew up, it was very difficult to find 506 00:29:48,800 --> 00:29:54,360 Speaker 3: even specialized magazines for watchers. Today you have everything you 507 00:29:54,440 --> 00:29:58,560 Speaker 3: can think of. I believe we live in absolute parodized 508 00:29:58,640 --> 00:30:03,840 Speaker 3: times for for watching enthusius because never ever in history 509 00:30:03,880 --> 00:30:09,680 Speaker 3: have there been more watch friends, higher information, more information, 510 00:30:10,680 --> 00:30:14,680 Speaker 3: and easy accessible information. You know, you can do your 511 00:30:14,760 --> 00:30:18,960 Speaker 3: research without leaving your room. That was impossible in times. 512 00:30:19,320 --> 00:30:21,000 Speaker 3: You know where I started to get into the. 513 00:30:21,000 --> 00:30:25,000 Speaker 2: Hobbity, although I would tell people go see the watch, 514 00:30:25,080 --> 00:30:25,760 Speaker 2: go try it on. 515 00:30:25,920 --> 00:30:27,400 Speaker 4: Make sure the only thing that met us. 516 00:30:27,440 --> 00:30:29,680 Speaker 3: That's right, it's the only I just say, the natural 517 00:30:29,720 --> 00:30:33,600 Speaker 3: habitat of a risk watch is the risk. So to 518 00:30:33,640 --> 00:30:36,440 Speaker 3: forget about looking at them sing and I like it. 519 00:30:36,680 --> 00:30:40,160 Speaker 3: That's a good start. But the moment of truth is 520 00:30:40,320 --> 00:30:44,280 Speaker 3: you grab that watch, you put it around your wrist, 521 00:30:44,440 --> 00:30:46,280 Speaker 3: You look at yourself and see is it me or 522 00:30:46,320 --> 00:30:46,640 Speaker 3: is it not? 523 00:30:47,000 --> 00:30:50,040 Speaker 2: So how do you have access to every longer watch 524 00:30:50,080 --> 00:30:52,440 Speaker 2: there is? How do you decide what you're going to 525 00:30:52,520 --> 00:30:53,880 Speaker 2: grab that data where. 526 00:30:55,200 --> 00:30:58,600 Speaker 3: You know this one because of you know chronograph, we're 527 00:30:58,600 --> 00:31:01,480 Speaker 3: in our world. It's the eighteen fifteen, so that's the 528 00:31:01,520 --> 00:31:05,600 Speaker 3: more classical line. I'm a huge fan of chronographs and 529 00:31:05,640 --> 00:31:09,120 Speaker 3: it doesn't get any better than A so you know that. 530 00:31:09,840 --> 00:31:15,400 Speaker 3: And I admit I think it looked very nice with 531 00:31:15,440 --> 00:31:16,760 Speaker 3: my ten color right now. 532 00:31:17,800 --> 00:31:21,480 Speaker 2: So our last question tell us what's next for Longer 533 00:31:21,840 --> 00:31:25,120 Speaker 2: and Sona. What surprises are coming up down the road. 534 00:31:25,160 --> 00:31:26,600 Speaker 2: What should we be looking for. 535 00:31:27,000 --> 00:31:28,760 Speaker 4: I think it's always good to look for. 536 00:31:30,120 --> 00:31:33,200 Speaker 3: But if I now share secrets, there's no surprise, and 537 00:31:33,240 --> 00:31:38,200 Speaker 3: that's the one thing. People love surprises. But I can 538 00:31:38,240 --> 00:31:42,520 Speaker 3: share with you as much as is this is not 539 00:31:42,680 --> 00:31:44,280 Speaker 3: the last surprise for this year. 540 00:31:44,800 --> 00:31:49,080 Speaker 2: Oh really, So the Saxonia things not the last surprise 541 00:31:49,120 --> 00:31:49,960 Speaker 2: of twenty twenty five. 542 00:31:50,000 --> 00:31:50,680 Speaker 4: It's what I shaid. 543 00:31:50,920 --> 00:31:58,560 Speaker 2: Fantastic. That was my conversation with Wilhelm Schmidt, CEO of 544 00:31:58,640 --> 00:32:03,840 Speaker 2: Alang and Zona. The Newport Ordering concourse to elegance extra 545 00:32:03,880 --> 00:32:07,080 Speaker 2: special thanks to the team that came up to Newport 546 00:32:07,440 --> 00:32:12,080 Speaker 2: to help film this. Alexis Noriega is my video producer. 547 00:32:12,640 --> 00:32:17,560 Speaker 2: Sebastian Escobar is my videographer Anna Luke is my producer. 548 00:32:17,720 --> 00:32:21,440 Speaker 2: Sage Bauman is the head of Podcasts at Bloomberg. I'm 549 00:32:21,480 --> 00:32:25,280 Speaker 2: Barry Ridholts. You've been listening to Masters in Business on 550 00:32:25,400 --> 00:32:26,400 Speaker 2: Bloomberg Radio.