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Bulgari Group To Lay-Off 50 Employees From Gerald Genta And Daniel Roth Watch Makers

The last few months have seen a series of bad-news stories regarding Bulgari and its attempts to survive and adapt to the change in economic times. When things were good, Bulgari started to snatch up other watch makers such as Daniel Roth and Gerald Genta. As I feel the need to be clear, the men themselves Daniel Roth and Gerald Genta are not in some state of bondage, but rather that Bulgari owns the rights to the brands (the trademarks). I've mentioned this before, but I still find it odd that the namesakes of these brands no longer have a place at the brands - and perhaps only a small stake in the success thereof. Nevertheless, if the brand releases a bad product, it will still effect the men negatively from a PR standpoint.

Well, the brands have fine products, but are about to lose 50 employees between them. Some one out there is bound to get pissed at Gerald and Daniel even though they have no part in this. We go back to Bulgari who is attempting to stay afloat by terminating the employment of 50 out of just 130 employees. Over 40 percent of the work force. There will likely be a consolidation of efforts and less redundancy of roles between Bulgari, Gerald Genta, and Daniel Roth. As the demand for luxury watches is currently low, this makes sense. Even though this is bad news for fans of the brands as well as the employees of the companies (especially those losing their jobs), Bulgari isn't in a significantly worse position than other luxury brands these days.

Via World Tempus (in French).

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

Tags: bulgari, bvlgari, daniel roth, DanielRoth, firings, gerald genta, GeraldGenta, group, lay-offs, watch

Cartier To Halve Production Workforce

by Ariel Adams (RSS feed) —

Filed under: Jewelry, Timepieces / Watches

By the sound of it you'd think that Cartier was next to being bankrupt, though that isn't the case. More like the optimistic balloon of sales growth is deflating (one of the reasons I used the "Ballon Bleu" watch for the image - and added the sad face). During the last few years of rapid growth and increased demand for Swiss watches and luxury goods, production increased and luxury firms like Cartier staffed themselves accordingly for what looking like prefect blue skies ahead. Now, about 5 years after that all started, the bubble has burst, and Cartier is being forced to let go of many of those people it hired at its production facility in La Chaux-de-Fonds to help supply the perceived demand for luxury watches. Note that this is one of three Cartier production sites.

While Cartier's market success is not exactly a bellwether of the luxury industry, it is a pretty good indicator of current trends. Lots of companies are reducing their work forces, but the reality is that they are just getting closer to the way things where before the economy inflated itself so much. Now in survival or recession mode, luxury brands such as Cartier need to save cash while planning on better times ahead - instead of focusing on making lots of watches right now. Recall again that this cut at Cartier of about 400-500 people (or roughly 50%-60% of their work force) is in the production area, not necessarily at other areas of the Richemont Group owned company including administration, marketing, and sales. Many retained employees will received roughly 94% of their pay until things get better. Then then Ballon Bleu watch above can turn that frown... upside down!

Via WorldTempus here & here (in French).

Ariel Adams publishes the popular watch review site aBlogtoRead.com.

Tags: cartier, company, cuts, employees, group, jobs, layoffs, luxury, richemont, watch

Swatch Group Posts 2008 Profits: Little In The US

by Ariel Adams (RSS feed) —

Filed under: Timepieces / Watches

Despite the state of the world economy, watch and jewelry sales were up 6.6% in 2008 for the Swatch Group. This statement is not indicative of all watch and jewelry brands as many companies have seen decreased sales in 2008. A press release from the Swatch Group helps to shed light on the their performance in the watch market. The Swatch Group is involved in more than just watches, with arms in the automotive, electronic, optics, and other markets with group growth of 4.3% last year. Regardless, the core business of the Swiss watch conglomerate are still watch sales. The purpose of the press release seems to be a note to the public that despite everything, you don't need to worry about the Swatch Group's future.

The press release admits that hurting currency exchanges and a drop in demand are the immediate causes of the watch industry sales and profit slowdown. Nevertheless, growth in certain markets has been strong enough to compensate for poor performance in other markets. As such, the Swatch Group states, "the slowdown was more acute in the USA in the last few months of 2008, which was offset to a certain degree in other growth markets." Markets that did display impressive growth are the Middle East and certain Asian countries most notably China. This does not necessarily mean that traditionally well performing markets such as Europe are doing poorly, but rather that growth is slow or nonexistent.

Key areas of growth involve a high demand for watch movements as well as an increase in retail watch distribution in many markets. I guarantee that news of impressive growth in China and the Middle East will garner attention by a number of industries including other watch companies. My hope is that such attention will not flood these markets and result in over saturation. Outlooks for 2009 are unclear, but I am glad the Swatch Group isn't speculating much. We shall wait and see.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Tags: earnings, group, industry, swatch

Banyan Tree Planning New Resort in Vietnam

by Nicole Weston (RSS feed) —

Filed under: Luxury Travel & Hotels

The Banyan Tree group has just pledged about $200 million dollars to a new luxury resort project in Vietnam. Located in Thua Thien-Hue province, the complex will cover 500 acres, will feature 6 separate resort-hotels and offer more than 2,400 rooms. The area of the country that the complex will be in has some of the country's most beautiful beaches and a high-capacity seaport that can accommodate large ships, potentially attracting cruises to the area, as well.

Source

Tags: Banyan Tree, BanyanTree, group, resort, travel, Vietnam