2025-04-01 07:00:00 by WWD

Billboard Women in Music 2025 PARIS — By horological standards, Chanel‘s 38-year-old watchmaking division is still a bright young thing. “Our existence is very short because it indeed began in 1987 with the Première watch,” said Frédéric Grangié, president of Chanel watches and fine jewelry. “It’s not long by watchmaking standards, but a great many things have been accomplished in that period.” Among them is the J12, the ceramic-based sports watch design by Jacques Helleu that was launched in 2000, which is turning 25 this year. At its launch, the black ceramic watch was met with success, due to female consumers who liked the gender-neutral style. The white version was released three years later, and the response was just as enthusiastic, turning the watch into a phenomenon. The latest J12 Bleu designs featuring a matte blue highly resistant ceramic and black-coated steel case have been imagined by Arnaud Chastaingt, director of the Chanel watchmaking creation studio. Aesthetically, they are a nod to Gabrielle Chanel’s couture daring and her pairing of dark blue with black that went against the codes of her time. But most importantly, it is a reflection of the French brand’s intention from the start to catch up in the watchmaking race. “The easy way would have been to say in 1987 [that] we’re a fashion brand, let’s do fashion watches, sign a license and develop plenty of things,” Grangié said. “But the choice from the start was to place ourselves on a path of verticalization, to be a pure player.” That approach — although onerous and time-consuming — has served the French fashion house well over the decades, and in all fields. Chanel does not break out figures for its divisions. However, Morgan Stanley and LuxeConsult estimated that watch turnover was 130 million Swiss francs in 2017, growing to 380 million Swiss francs in 2024. Last year Chanel broke into the top 20 by sales for the first time, placing in the 18th position. Grangié said growth has come from refusing to compromise on the quality and integrity of the product. The company invests in its watchmaking ecosystem and suppliers but also in outstanding high-end indie signatures including Romain Gauthier, François-Paul Journe and, most recently, MB&F. Ahead of Watches and Wonders, the Chanel watch and jewelry executive revealed the path that led to the new blue style, why there is no magic bullet for luxury, and why the Chanel J12 Boat Race is not about the money. WWD: What investment does the J12 Bleu family represent? Frédéric Grangié: What you have to bear in mind is that from the start in 2000, there was an intent of integrating this know-how that we didn’t have [in-house]. Underscoring that was the idea that we would become a pure player and in that notion is the mastery of the chain to produce ceramic. We have gone very far down that route as we passed the final step a few years ago with the purchase of Germany-based company Inmatech [Technologies GmbH] that produces the feedstock used to make ceramic. So we went as far as we could. To my knowledge, there are today only three brands or groups in Switzerland that have this level of verticalization, and we are one of them. This blue also required a major investment because it’s five years of research and development that mobilized numerous teams, a large number of tests — 150 tests plus 24 blues. From an economic standpoint, it cost a fortune but we absolutely wanted the blue that [director of the Chanel watchmaking creation studio] Arnaud Chastaingt imagined. Then there is another aspect of the J12 — our manufacture watch by excellence — and that’s the movement. It’s a Kenissi one and that also participates to the pure-player characteristics of this watch. What we are presenting at Watches and Wonders is four models in core business and four high watchmaking that illustrate this know-how that stems from 25 years of the J12 through this new permanent color. It allows us to have a watch that embarks this splendid Kenissi movement, this case and bracelet that are 100 percent ours, this patented buckle is made 100 percent in-house. And you can find ceramic, buckle and movement in competitors’ [watches] because in our mastery of these know-hows, there’s also the fact of being supplier for other brands and that’s absolutely essential to our activity. WWD: Why is contributing to the ecosystem more valuable to you than locking down a supply chain for exclusive use? F.G.: It’s really part of the DNA of the brand because it’s been this way since the beginning. It happened with perfume, beauty, fashion — look at the métiers d’art specialty crafts at Le 19M — so it’s part of the life of the Chanel brand. There was no reason for it to be any different in watchmaking. Staying humble in the face of other brands that have a century or two of existence and have done and continue to do extraordinary things, we wanted to catch up from the start. So it’s a very short existence, since the 40th anniversary will be in 2027, with a fast-paced clip to become a pure player as quickly as possible. To do that, there can be no compromise on the quality and integrity of the product.  That’s why we are part of Kenissi, why we integrated ceramic know-how, developed these metallic parts that are extraordinary — because our ambition was to be a pure player, but the Chanel way. WWD: How does that translate across the business?  F.G.: It’s a multifaceted strategy [where] investment is a given. In terms of the manufacture, to reach these levels of quality and excellence. In terms of distribution, [where] boutiques we are currently opening or future ones will be ones in which the complete offer [of jewelry and watchmaking] can be presented, which also entails training for the Chanel teams who will handle these very specific categories that are inscribed in the long-term [scale]. There is novelty of course but the creations are meant to stay. And in communication, there are two aspects. The first is to get closer to the product, in terms of creation and know-how, so from that point of view, the place of ambassadors will be strongly reduced [as] we will really get close to the product. And then there is a dimension around atypical projects, connected to encounters rather than a business plan. Take the first edition of the Chanel J12 Boat Race, taking place on April 13. It will be the first time in our history we are expressing ourselves as name sponsor and timekeeper. It will allow us to build year after year on a partnership that is angled on very clear values and the chronometric component of timekeeping, which is the least we could do for a watch like the J12, which was born on the water and embarks a COSC-certified Kenissi movement that deserves to be highlighted. In two years, we will celebrate the 100th anniversary of the first female competition — and that speaks to us very much as we mark the 100th anniversary of Chanel in the U.K. this year. [In 2029], it will celebrate its bicentenary as one of the oldest competitions in the world. Arnaud Chastaingt will create the trophy, which we will make, for these two outstanding, exceptional [editions]. WWD: Many luxury houses have forged links with sports, particularly with the 2024 Paris Games and Formula 1. How do you ensure it’s seen as genuine by those who may only know Chanel through a fashion lens? F.G.: Because our first priority will be to respect the heritage of a race that’s almost two centuries old, a competition that brings together amateurs in the noblest sense — students of Oxford and Cambridge — and a level of professionalism and excellence that is worthy of the Olympic Games. As a matter of fact, many are Olympians. In terms of values, performance, excellence, self-sacrifice, being a student at Oxford or Cambridge, two of the most famous institutions for education in the world, each with five centuries of history, I find that it’s a magnificent story to tell. My wish is that, with Chanel, we can amplify this story further and around the world. What I hope is that in 20 or 30 years, people note that this period started in 2025 but most of all, speak of the race being 230 years old. Therefore in this race and the rituals associated to sponsoring and racing, there won’t be what you see in all other sports because it’s not about the money. WWD: Chanel has a strong affinity with female consumers and that created an opportunity with an underserved demographic in watchmaking. Is that still one of its main strengths today? F.G.: Options exist but the specificity of Chanel is linked to its first creation, the Première, a watch created for women that only exists in so-called feminine sizes and that have very specific attributes that reprise the codes of the house — the shape of Place Vendôme, the stopper of the No.5 perfume. With this origin, we are always going to be more feminine than masculine. The J12 is rather specific because it’s a unisex watch created by a man for himself that immediately found traction with Chanel’s clientele, particularly in white. Therefore it became essentially feminine in terms of client numbers. That said, in Japan for example, a third of J12 purchases are done by male clients. It’s really in our DNA to focus on creations made for a female clientele in general, except for the more unisex J12. But we increasingly see these creations becoming themselves unisex and worn increasingly by male consumers. That’s a natural movement of the market that fades these boundaries. The blue we are introducing will appeal equally to men and women and our difference is also connected to this, making us one of the rare pure players to really be [focused] on the female market. In watchmaking, for decades the practice — and it’s been a successful one — has been to make a smaller-diameter version of masculine watches. Our approach is the opposite and from that point of view, it’s a strong differentiating factor. WWD: Is it the magic bullet to see through the current backdrop of lackluster luxury sales and global social, political and economic uncertainties? F.G.: I’m not certain it’s a troubled period [in luxury]. I think it’s a readjustment, returning to an even keel going forward and in reality, it’s always the same topic. Objectively, no one needs one more watch, so it’s really a question of desire. From my point of view, it’s created by the combination of two factors: a unique creation that appeals and an absolute integrity of the product. That’s what triggers the desire to buy a new watch in a client. It would be illusory to believe there are still large pockets of the market globally where people don’t have watches. That’s been over for a long time. [The key to success is] creation and integrity of the product, and that creation must be a differentiating factor. It’s about saying that you may or may not like what you see at Chanel, but if you do, you’ll only find it at Chanel. WWD: In the current luxury context, what are the opportunities then? F.G.: I believe a distinction must be made between luxury and the business of luxury. There’s no doubt in my mind that luxury has always existed, exists now and will always exist for centuries to come. It’s rather a good thing that many markets have been developed and are mature, because it brings back to the essential, which is this combination of creation, absolute excellence and integrity — that’s a luxury product. But it also means that there has to be a more realistic view on growth and development, and perhaps favor the long-term. But that’s something we’re already very comfortable with at Chanel.