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PuristSPro interview: Patrik Hoffmann, Ulysse Nardin U.S.A.

By: Marcus Hanke (registered) Sunday, December 23rd, 2007

 

PuristSPro Interviews Patrik Hoffmann


by Dr. Marcus Hanke & Anthony Tsai  


© December 2007


Patrik was born and raised in Basel, Switzerland and has been working in the watch business all his life - for about 25 years now. Having a degree in controlling from Switzerland, he worked for Oris as an accountant before he took a sabbatical and studied marketing and management in Michigan USA.  He then worked again for Oris for a couple of years before moving to Malaysia working for a watch distribution company and traveling/working all over South East Asia, Hong Kong, Japan, China, and Australia.

While living in Kuala Lumpur, Malaysia Patrik met Rolf Schnyder, which was the start of a relationship and his joining Ulysse Nardin.  And after living in Malaysia for about four years, Patrik, his wife, and three kids packed their bags again and moved to Florida to build up Ulysse Nardin USA, a wholly owned subsidiary of Ulysse Nardin Switzerland.

This interview was conducted during PuristSPro's Ulysse Nardin Event in Beverly Hills on December 7, 2007.  For full coverage of the event, including pictures and videos, please CLICK HERE .

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PPro:  UN has become well known as an “ambassador of innovation”, presenting substantial innovations nearly every year.  Most recently, however, there seems to be a concentration on mostly new materials such as etched silicium, LIGA-produced nickel-phosphor, diamond, DiamonSil, layered silicium, and so on.  Yet barely one of these materials is employed in the regular series productions, and spectators could conclude that UN is lacking a clear material strategy and just experimenting.  When will the “non-limited edition customers” be able to profit from the new materials?

PH:  I think they already profit today because we started to use new technologies and material.  For example like the Freak, it forced us in new technologies from the mechanics, so I think the consumer is already benefiting from it.

The first step in becoming less limited was when we took the decision to use silicium wheels in the 160th Anniversary movement, which is what I refer to as the so-called “basic” movement.  And when I say a basic movement, you can expect that we are going to use this movement, so I think there is already a benefit there and soon you will see silicium and these kinds of technologies in more regular models.


Silicium escapement wheels


PPro:  Did the “Freak I issue” prove a too strong dependence on new materials and technologies, with traditional watchmaking left aside, and unable to repair and to solve a problem by conventional means?

PH:  I don’t think so at all.  Again, innovation means you try something, and sometimes you have to try certain risks so you run in a certain direction and then you have to make some corrections on the way.  I think the fact that today you have main brands, competitors, and … I don’t have to mention the brands … some really established brands that also have been using and experimenting with silicium proves us right.  I think that is the best proof that we have.


PPro:  Will UN start a large-scale series production of the cal. 160?  If yes, will it be combined with complications typical for UN (2nd time zone, perpetual calendar)?

PH:  Yes.  It’s almost a given that we will do that, and when we produced and developed the 160th Anniversary movement, we always said that it was developed in a way that it was easy … well nothing is easy … but almost easy to add complications.  And if you look at a complication such as the Dual-Time with the 2 pushers, which is a given from Ulysse Nardin, you can probably expect something in that direction.  I couldn’t give you a timeframe but you can expect something.


PPro:  Did the Asian and Russian markets influence the design of recent UN releases?

PH:  I don’t think so.  I think it’s always a world-wide influence, and then that world-wide influence forces us to make decisions, of course it’s always the big markets - Asia is a big market, Russia is a big market, and the US is a big market.  Those 3 really make up the design.


Ulysse Nardin Blue Phantom Freak w/ silicium escapement wheel


PPro:  Was the U.S. market somehow compromised by UN’s success on these markets, in terms of delivery delays and watches available?

PH:  No absolutely not because again, it’s almost like competition – competition is healthy.  And if I look at the market in the US, we benefit tremendously from the Russian influence, and the Russian consumer here in the US is very important for our brand.


PPro:  Swatch Group’s decision not to sell any movement kits is becoming “hot” very soon.  Until now, all of UN’s “bread-and-butter” models are based on these movements.  Will there be an “ETA inside” sticker on UN Marine series watches in the future?  Or will UN wait for Sellita and other movement manufacturers to deliver kits?

PH:  I think we are now exploring every possibility but most importantly, I wouldn’t look at this as a problem but more rather of a challenge.  And I think we took this challenge that we can produce so much ourselves now.  And I believe we took the challenge seriously a couple years back when we said now we will invest in the 160th Anniversary movement, which is a basic movement.  So for the movements, everything is open but I think we are in the right direction.


PPro:  Was the 160th Anniversary movement planned to be the basic movement?

PH:  I don’t know if it’s going to be the 160th exactly the way it is now, but certainly a basic movement, which is based on the 160th movement and its technology.


Ulysse Nardin cal. 160 with the Dual Ulysse escapement


PPro:  Has the shopping behavior of American UN customers changed during the last years? (regarding asking for discounts, choice of models, design...)

PH:  I really don’t think so.  Maybe what’s changing at the moment now is the average price which means … I don’t think this is a Ulysse Nardin situation … the wealthy are getting more wealthy and the middle class have maybe a little bit more struggle that they used to have.  With that being said, Ulysse Nardin is in a good position because we cover a wide price range, but I wouldn’t say it really has changed over the past year.


PPro:  Will UN continue to develop its strength in the segment of complicated watches, and is there a clue on which complication is coming next?

PH:  I couldn’t give you a clue (laughing) but yes – you can be sure that we’re working on many things.  But as I said, our focus for the last 2 or 3 years has really been on the 160th Anniversary, our more basic movement, because of the situation with ETA.  But the drawer is full of ideas!  It’s not the question of ideas; it’s the question of even having the engineers behind the computers.  That’s already the challenge; not even talking now about producing the tools and the components and all that.  The focus for the last 2 - 3 years was more on the basic 160th Anniversary.


PPro:  Will UN continue increasing production figures, or will the company concentrate on a product niche with small numbers?

PH: It’s a combination of both.  At the moment we are still increasing our production, and I’m sure next year we will try to do the same.  At the movement the increase we have, or trying to have, is more to build up a leverage or buffer stock for movements we were never able to do.  So yes, production will go up but it’s going to be limited because we don’t have the means in terms of watchmakers and engineers.


Polycrystalline diamond escapement wheels in the Diamond Heart 28,000 V/h Freak


PPro:  And how many watches did Ulysse Nardin produce last year?

PH:  2007, the figure is going to be around 23,000.


PPro:  And in 2006 and 2005?

PH:  In 2006, it was just below 20,000 despite the big increase.  And in 2005, the increase was probably around 10 - 15 percent.


PPro:  Is there a set target for maximum production?

PH:  I don’t know if we can say that for the years to come.  But if we could reach 25,000 for next year or in two years, that would be great.  But the focus has to be quality and niche.  Ulysse Nardin will always remain a niche brand.


PPro:  Any plans about the future use of palladium?  Maybe replacing platinum?

PH:  Well we started.We have one model, which is called the Macho series, and we released the Macho Palladium 2 years ago when not many used palladium.  And for us there’s no objection.  We would like to use palladium because it is as resistant and hard and has the same density as platinum; but I think when it comes to the material to use for the cases, we have to listen to the market.  When we develop something and if you want to be trendsetters, it’s more when it comes from the movements - the inside - that’s where our strength is.  The outside we have to probably listen more to the market and to the consumer.


Ulysse Nardin Royal Blue Tourbillon

PPro:  Has the UN service department in America expanded to keep up with the higher production figures?

PH:  Absolutely.  We started 8 years ago when we took over our distribution ourselves in year 1 with 1 watchmaker.  We have at the present 5 watchmakers; and from the 1st of January, we’ll have 6 watchmakers - 3 Americans and 3 from Switzerland.  That’s absolutely my focus.  Service will increase, and the number of repairs has increased tremendously.  We now get a lot of vintage watches today which we never got in the past because the brand has revived, and now you have old watches coming in for repair which have been sitting in drawers for 20 - 25 years.


PPro:  And what is the average turnover time for a watch sent in for service?

PH:  Between 4 and 6 weeks.  We service everything up to perpetuals and Sonatas in Florida.  There the turn around time is 4 - 6 weeks.  When it comes to vintage watches, it can be longer of course because they go to Switzerland since we don’t have the parts.  But I’m actually very proud actually with our turnaround time that we have.  And Dr. Thomas Mao visited us a couple days ago, and I think he was quite impressed!


PPro:  Last year, was the turnaround time always 4 - 6 weeks?

PH:  Yes and we were able to maintain that turnaround time.  We had a time, about a year and a half ago, where we had a little clinch and it meant up to 6 - 8 weeks, but over those years it was always my goal to have 4 - 6 weeks.  With that being said, 4 weeks probably for warranty repairs and 6 weeks for service.


Hand-engraved skeleton movement of the Ulysse Nardin Maxi Skeleton


PPro:  Do you think marketing is killing horology?

PH:  Wow … I’ve never been asked this question! (laughing)  This question comes at a surprise!  I don’t think so.  No.  I think marketing always existed.  The question probably would have to be the kind of marketing.  But nope, clean marketing helps - I don’t think it will kill horology.


PPro:  If you had to switch jobs and stop doing what you do now, what would you like to do, and what could you do?

PH:  Wow (laughing) … I could do anything dealing with people and with a product that I could identify with myself so I couldn’t work for a bank or an insurance company.  I could work where I have a product that I could understand, feel, and touch.


PPro:  With the craziness of the watch world, how do you keep yourself relaxed?  Any other passions or hobbies besides watches?

PH:  I don’t have a lot of hobbies, and I would say that my family, with 3 boys, keeps me busy with my free time.  So at the moment, my focus is on my 3 kids.


PPro:  PuristSPro would like to thank you very much for your time!

PH:  Thank you and it was my pleasure!

 

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Copyright December 2007 - Dr. Marcus Hanke, Anthony Tsai, and PuristSPro.com   - all rights reserved

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