It should be recalled that Baselworld already suffered in this year’s Edition the greater cut in its history. Of the usual 1,300 exhibitors grew down to about 650 and 8-day shortened to six by the demands of customers, the exorbitant prices that reached accommodation in Basel during the days of fair, and the slowdown in the global market of high jewelry and watchmaking. It is also directly related to the disproportionate costs of participation, which is not profitable. Reasons why management company has decided to cease René Kamm, at the head of the event in the last 20 years.
The low of the Swatch Group assumes that its 18 brands will be present at the fair but also creates a serious precedent for the development of this fair, since no one can calculate the ‘call effect’ that will result in the absence of which is probably the firm more icon ICA of Swiss watchmaking. The reasons are the lack of innovations and the low return on investment, according to the group.
Group also calls into question the very concept of the fair event: today everything has become more dynamic and instantaneous and, in this context, an annual fair as we know it today is meaningless, they say from Swatch.
Another reason is undoubtedly the economic. Group understands that being present at a fair of this kind assumed a costly investment very difficult to retrieve. According to several international media published that enormous deployment of resources and people during the six days of the event involves an investment around $ 50 million.
The company adds does not rule out returning to the event in future editions, but at the moment it will remain on the lookout. The fair will not disappear but should reinvent itself and adapt to an environment more dynamic and creative, according to their opinion.
René Kamm has been dismissed as Chief Executive of the Organization of the fair. In a note issued by the group, they argue that the cease-fire has occurred by mutual agreement and after coming to the conclusion that the time has come for change, they explain.
Kamm became President of Baselworld in 1999 and was main task to convert a national event, in a global fair that everyone who had a name in the industry should go, explained some analysts of international media. Since it is true that the Basel fair became the world leader in fine jewellery and watch-making, and might even overcome successfully the great global crisis of 2008 onwards.
At the same time, the CEO of Raymond Weil, Elie Bernheim, has confirmed a Swiss daily low for 2019. After fire in a few months to its principal fair and the President himself, and beyond the million dollars of investment that Raymond Weil disburses in Basel every Edition, is nothing compared with the crisis that is suffering the prestige of MHC, the organizing company of l to fair. The departure of Raymond Weil responds to reasons very similar to the arguments of Swatch: the evolution of the market and the behavior of consumers indicate that fairs such as Baselworld are not in line with the needs of brands.
That is the idea that is catching on in the market and also relies on the strategic changes of the major brands, beginning to bet on boost shops monobrand and direct reach to the end customer.
The reason for this abandonment have already heard it in the past: firms want to devote their efforts to the final customer and focus their strategies on shops monobrand (own and franchises), so his participation in events that go mainly distributors professional multi-brand would now not make sense.