Launched in 1737, Favre Leuba, the world’s second oldest watch brand (Blancpain founded in 1735 is the oldest) has had a chequered history. It fell victim to the 1970s quartz crisis but was relaunched in 2011 after it was bought by Titan. However, in 2020 Titan pulled the plug on further funding as it was unable to make a success of the brand.
The brand languished until last year when it was once again given a fresh lease of life when Silvercity Brands bought it and put industry veteran Patrik Hoffman at the helm. Hoffman with over three decades of experience in the Swiss watch industry relaunched the brand yet again at the Geneva Watch Days in August.
In a freewheeling conversation with Business Today, Hoffman who is the chairman and CEO of Favre Leuba speaks about the relaunch, challenges, importance of India as a market and the Swiss watch industry, among others. Edited excerpts:
What is your strategy to revive the brand and what kind of challenges do you foresee?
The idea is to relaunch the brand. Of course, we are aware that in the past 30 years there have been quite a few relaunches, but they have all failed. But I believe now we are at the right time with the right product. I’m the kind of person who starts bottom up, which means I start with the product. The product is the key in our development, in our planning, and it is also the hero. We realise we have to build the brand over the next 10-12 years. In our planning we call it revival. Today the watch market is very much into vintage models, so we have taken some of our vintage collections and we have made it contemporary. So that was the first part. The second part is to be true to the DNA, to the heritage of the company, because the company has such a deep-rooted heritage. We have kept that alive in the design codes, and also, in terms of pricing or positioning in the market. So that was key.
We showcased our first time pieces at the Geneva Watch Days in August at a global launch and the feedback shows that we are on the right track.
How important is India as a market for you?
It is the right time to relaunch the brand particularly here in India as India is flourishing right now and Favre Leuba has such a deep history in India. We are looking at India as our main market right now and for the foreseeable future. Almost half of our current production of 4,000 watches is for the Indian market. We are looking at 30 points of sale in India. We have an exclusive partnership with Ethos. We hope to open our first boutique in India in 2026.
Did you face any challenges with the relaunch?
When you launch a mechanical product, you need the expertise. You need people who are going to help you produce the timepieces. This would have been a challenge, but our timing was right. The downturn in the Swiss watch industry helped us because many doors opened up for us. Two years earlier they would have said they did not have the capacity.
From the planning stage to when we launched our 22 models in Geneva, it was only 10 months. We have worked at breakneck speed. We started delivery within 14 months.
What kind of production capacity do you have right now? What are you looking at?
At the moment, we have 4,000 watches in production. And then we are going to increase the capacity to 8,000 pieces annually next year. And in 10 to 12 years, we want to be at around 100,000 timepieces a year.
Which are the markets that you are targeting besides India?
Central Europe with countries like Austria and Switzerland. Then we have eastern Europe countries like Poland and Czechoslovakia as the brand is well known there. Then we have Japan, which has a history with the brand, followed by the Middle East and later this year the United States.
Who is your target audience for the revamped watch?
Favre Leuba has a big fan following. They are collectors. Of course, once we move to 100,000 pieces, we become more mainstream. Our end consumer is mostly male who is looking for great value for the buck. We are priced between 2,200 Swiss francs and 4,400 Swiss francs.
You said it’s male based, but are you looking at a female collection?
Absolutely. We are in product planning. We hope to launch a ladies’ line by end of the year or definitely in 2026. Ladies’ watches are part of our DNA. We have old catalogues which show fantastic lady timepieces.
Do you see the digital watch as a threat to the industry?
No. Are there certain brands which are hurt because of it? Sure, there’s no doubt about it. But not the industry as such. I think it’s complimentary as it encourages young people to wear something on their wrist. At some point they decide to move to a more statement piece. And don’t forget, the Swiss watch industry is not such a big industry. So, we have to be on top not only in terms of product, but also in terms of communication.
What are your thoughts on the current state of the Swiss watch industry?
Well, right now we are in a downturn. But it always comes back. So, for me, the question is not is it coming back? The question is, is it coming back in 2025 still or in 2026? Okay, that’s my answer. The industry will bounce back within the next 18 months.