High Tea with the CEO: Karl-Friedrich Scheufele of CHOPARD

Sep 01, 2014,06:47 AM
 

THE WATCH magazine – September 2014


Interview with Mr Karl-Friedrich Scheufele, Co-President of Chopard

"High Tea with CEO"





TWM: The Watch magazine CEO; Alfred Lung
KFS:  Karl-Friedrich Scheufele

The Watch magazine is published in Hong Kong bi-monthly, with additional special brand editions issued throughout the year.

In each issue, a regular feature is the "High Tea with CEO" of conversations with industry leaders.



TWM: My readers and I have many questions and appreciate your time to answer them. Let’s start with the L.U.C collection.
Are most L.U.C watches certified by COSC and also the Geneva Seal?

KFS: Not most; all of them. Every L.U.C watch or movement – except the one you are wearing – are certified. It’s not an omission by us but because of COSC regulations; test watches must have a seconds hand and there is none on the XP.  So, I’m sorry…..
[Editor’s Note: Alfred was wearing L.U.C. XP extra flat watch with no seconds hand]



TWM: I was wondering why the COSC is missing from my watch. Thanks for the explanation.
Would that be the signature of L.U.C watches and will it continue like this?

KFS: A principle of L.U.C. is that every movement with a seconds hand has to be COSC certified. This was from Day One. Then, everything else has to be made to the highest standards. Depending on the model, additional Poinçon de Genève (Geneva Seal) or Qualité Fleurier standards may apply. Even then, what you may call our ‘standard finish’ is still of the highest quality.



TWM: I want to talk about some special models, especially the L.U.C. Lunar One, which is my favourite perpetual calendar watch. Part of the reason is that it is ‘childproof’ and cannot be ‘jammed’. You may just close your eyes and just keep pressing the pushers whenever you like.  Also, it’s an instant-jump calendar.
Can you share some of your philosophy behind the development of this model?

KFS: There was no in-house perpetual calendar from Chopard Manufacture. I went through all the designs of perpetual calendars on the market. When we set out on the Lunar One project, I stipulated that it has to be childproof. That was the essence of the briefing.  Unfortunately, many users (including myself) usually try the pushers first and read the instruction book later. So, the instruction book only comes out when something doesn’t work. It’s too late by then! We had to make something that could not be messed up, whatever pusher was activated.

I stipulated that we should have a moon phase display different from all those in the market…. which it is. Next, we should have a big date as some of us may need reading glasses, otherwise.

Finally, the brief called for all the information on the dial to be placed in a symmetrical layout as I think a symmetrical presentation is the best. Basically, that was the initial briefing, as much as I can remember now.


L.U.C. Lunar One Mk.1


TWM: How long did it take to realise this project?

KFS: I think it was three years from the start to the delivery of the first pieces.

TWM: I’m very glad to tell you that it’s one of the favourite perpetual calendars with collector friends. They really appreciate the craftsmanship and more so the ‘childproof’ feature. Like you said, they rarely read the instructions and sometimes other watches get jammed. Unfortunately, they have to be returned the manufacturer for many months. That, is actually the frustrating part because perpetual calendars are expensive items and to surrender your watch to the factory for such a long time is quite an issue.

KFS: Indeed – I have an analogy. I was driving and wondered what was wrong with the suspension; it felt very hard. I know it is suppose to be a sports car but did it have to be so hard? I have had the car for 3 years. Then, I pulled out the instruction book and found out that you can actually switch through 3 different suspension settings! I was running on ‘sports’ setting – very stiff. That’s what I mean; people read instructions only when they think they need to.

[Editor’s Note: PuristSPro presented the first PuristS Purity Prize in 2009 to Karl-Friedrich Scheufele for “the pursuit of perfection in an imperfect world”, in recognition for the five proprietary movements developed by Chopard Manufacture within 10 years, and above all for the “technical and aesthetic excellence” of the L.U.C Lunar One, a perpetual calendar with complete moon-phase display.]



PuristS Purity Prize from PuristSPro





TWM: Let’s talk about tonneau shaped movements, which are not usual, in a way. I would say tonneau shaped watches are uncommon in the market. It may seem like a simple watch at the collectors’ level but I think many collectors appreciate it.
Do you have any plans to expand the tonneau collection with other complications?

KFS: Well, first of all, I don't quite agree when you say that the watch is simple, and the movement is simple. It is really already a bit of a complication, because we have the twin barrels and micro rotor, which are the features you don't normally find in basic automatic movements. Having said that, our team discussed recently about our plans for the tonneau watches. I think we need to look at a complication. Yes – something is in the pipeline…...



TWM: Good, you just shed some light on something we will expect later. Next, I would like to talk about the L.U.C. Strike One – the hour striker or chiming watch. The usual chiming watches are minute repeaters.
Will we see a minute repeater watch in the L.U.C collection?

KFS: Well, 2016 will be the 20th anniversary of the new L.U.C. Manufacturer. So I think it will be the right time to celebrate.



TWM: How would you describe your ideal repeater sound?

KFS: I think it should be crisp and it should be long. It should have an ‘echo’ or resonance. It’s a bit of both worlds in a way; using “crisp” as a precise feature but at the same time describing a bit of “after echo”.



TWM: Our watch collector friends say that some of their repeater watches chime too quickly; finishing the sequence in a bit of rush: "bing-bing dang-dang"… trying to rush to finish, which I find is a bit of shame because you should try to enjoy the chiming moments.

KFS: It doesn’t have to be too fast. If you already take the time to listen, should the interval be too short, there is the problem of keeping count at the end. For example at 11:59, which is the worst case of most number of strikes that you can get.



TWM: I think the debatable point for a repeater watch is whether the mechanical sound is a little bit too obvious. Sometimes you don’t hear the mechanical beat; you just hear a chime, which the majority prefers. Some friends and readers tell me that they like the mechanical side of it, because it “feels mechanical”. The choice is very personal.

KFS: I think it’s terribly personal. We also work with acoustic departments of universities to determine something special regarding which material will work best. That is as much as I can tell you. We are not content with just “doing” another minute repeater in a very traditional sense of the word. We are looking to go the extra mile to provide some added value.



TWM: I won’t push anymore. We are all looking forward to this anniversary, and I’m sure that many of us will be looking out for that special moment. I want to talk about the annual calendar. This is a very popular complication but it is not a complication in the current L.U.C. collection.  Are there any plans to go in this direction?

KFS: I’m very aware of this because the question came up a few times. We are looking into developing a more affordable version of perpetual calendar. I said we should go a step further to provide the function of the perpetual calendar, but maybe in a more affordable version; that was the brief.



TWM: As one of the founding members of the Qualité Fleurier, please share your insight.  I found that very few watches are QF certified.
Are there only 1200 pieces certified with Qualité Fleurier, to date?

KFS: Chopard has certification for about 1200 watches and the other founding members, as far as I know, have certified not quite as many – very few, in fact …..



TWM: We saw a Qualité Fleurier certified L.U.C. Tourbillon watch; I appreciate the hard work in achieving the certification.
Will we see more complications from L.U.C. successfully Qualité Fleurier certified?

KFS: We use QF even before the certificate. We use it as we build movements; it is a testing ground. We would love to introduce another complication with QF certification.

The main obstacle is not the number of Qualité Fleurier test equipment that you have seen. It is the proofing tests, which are more difficult to pass with a complicated watch. There’s a bit of controversy about the severity of the tests or the logic. It is not logical if you say, “I’m trying my sports car for an off-road drive”, because a sports car is not built for off-road work. Then, there is the required Shock Test. You should see the video even before you visit the QF Laboratory. We made a video, which is available to any collector; it’s a resume of QF certification showing some of the tests. One test involves repeated impacts against the watch case. Obviously you can imagine that the perpetual calendar, with 354 moving parts, is more vulnerable than a normal automatic moment. We are still working to overcome such things. When we certified the tourbillon, I was already, extremely thrilled because that was really a great achievement.



TWM: Will we see a chronograph movement with QF certification?

KFS: We’re working on this.



TWM: I can see many new technologies used in L.U.C, such as the silicium escapement, also the high-frequency escapement out at 8Hz.
Will we see more new technology applied to the L.U.C watches?

KFS: The 8Hz is definitely a road we want to take in a bigger way. It's only a matter of time before introduction in mainstream watches and particularly, in sports watches. I think it’s the perfect added feature to our sports watches because it is less vulnerable to shocks and the timing beat is rapidly picked up afterwards.



TWM: There has always been argument about new materials being used in watches. Some introduced ceramics or silicium. Talking with some R&D directors, some have told me that this is not the direction they would like to go because they want their watches to be restorable in future and they don’t want to work with glue.

KFS: I perfectly respect that point of view but I am convinced that it is the right way go. There are some clients who appreciate the latest technologies. They like the 8Hz as new technology but it’s still traditional watch-making.
Silicium used in a wise way, I believe, opens new avenues. So, why should you refuse to travel down a new road?  I still believe that a traditional finish is always nicer than we can achieve with new material. If you just use a new material for the sake of using it, or for the sake of saying, “I am making my new caliber with Material X”, it doesn't add any value or it doesn't run better. It just looks better. This is not what we want. This is what I call a gimmick. If we can enhance performance, quality, position or all of the above by using a new material, then I’ll do it.

That’s also why we have both Classic and Tech models within our Collection. Half of the L.U.C, collection is really traditional, where I very much doubt that we want to introduce silicium and things like that. We have a technology-oriented collection like the L.U.C. Engine One and the 8Hz family, of modern design and with a different look. We have these two parallel lines; to tell you the truth, I cherish both.



TWM: An affordable watch is the trend right now in Hong Kong and China. Those people are looking into their first watch they want or as a gift. That’s why I’m putting out a magazine called Mainstream : focused on mid-range watches. Most L.U.C watches are encased in precious metal.
Do you have plans to introduce more steel versions for L.U.C.?

KFS: We had steel versions in the collection but discontinued them because we didn't have the capacity to produce enough movements. I will say that you are speaking my mind. (Pointing at Alfred’s L.U.C. XP) This is a steel version; I really like it and have the same watch.


[Editor’s Note: Chopard will produce a limited series of the LUC1963 Chrono PuristS Edition in stainless steel case, in parallel with their 50th Anniversary celebratory edition in rose gold. This is the first time that L.U.C. has launched a new movement in a steel case.]









TWM: There was a L.U.C. Chrono One in steel. It’s a really good chronograph and I told my friend to buy; he is very happy about it.


Fleurier Ebauches produce very good quality, affordable movements.

When did you have the vision of having this ebauches factory?


KFS: The idea came about because we wanted to equip more Chopard watches outside the L.U.C range with our movements. Whatever we produce has to be competitive in terms of quality and price, in order to offer watches like the Mille Miglia range with our own movements. Next year, we will equip some Mille Miglia with Fleurier Ebauches movements for the first time. We decided to physically separate the two companies because the approach is quite different. On one hand, you have a lot of handwork, one-by-one, assembly and very craftsmanship approach. On the other hand, you have a really industrial approach. I'm very glad that we did this in separate buildings, with separate vision and philosophy. We will be able to produce between 8,000 to 15,000 movements annually.



TWM: What is the capacity right now for the Fleurier Ebauches?

KFS: This year, we’re running at 8,000 movements – that’s a lot and quite a capacity – and we can double it. It always depends on the number of different movements you are looking at. Currently, we produce three types of movements in two different executions. We try to keep it simple and straightforward. Anything that is more individualised, or personalised, or in small quantities; that is for L.U.C. to make and that is really the way forward. The finishing is done by machine but still a beautiful finish. That’s Fleurier Ebauches.



TWM: It was Mr. Hayek himself who announced that SWATCH Group would cut the supply of movements to other brands.
Did he have any influence on your determination to create the Chopard Manufacture?

KFS: When we launched L.U.C. Manufacture, the SWATCH Group situation was not a factor. After 10 years down the road, it became a factor. When we launched Fleurier Ebauches, it was clearly to develop more independence and I still believe that there will be alternative sources for movements built by other competitors. We have a pretty good relationship with the Hayek family and SWATCH Group. I think that they even appreciate our integrated industrial approach.

[Editor’s Note: L.U.C. Manufacture was started in a building rented from SWATCH Group]



TWM: Well, that is one of the things you can talk about; If you want to create your own brand, you should have your own Manufacture.

KFS: I think that did a lot of good to the world of watch making because everybody became concerned enough to do something. There were those who did more and those who did less; those who started late, and those who started early. I think, altogether, it was a good impulse for the watch industry towards new developments. So, I am even grateful to SWATCH Group for putting on some pressure right now.



TWM: Would your vision for Fleurier Ebauches be applied to all the Chopard and L.U.C. watches?

KFS: Fleurier Ebauches will increase capacity but I don't think that we will end up making every single type of movement that we need for our Collection. One very important movement that we are working on is the lady’s automatic. It will definitely help us achieve even more independence and even more credibility. That is one thing in the pipeline. I will definitely not rule out being a client for outsourced movements, from any supplier including ETA. We prefer ETA because the quality is great; no doubt about that.



TWM: We always describe ETA movement like a Toyota car because it runs, whatever the circumstances. It’s a great reliable engine. It’s not the best engine but it always runs.
Would you consider producing quartz movements in Fleurier Ebauches?

KFS: I think that will probably be the last project we want to look at. Quartz movement making involves other capacities that we don't have at this point. If you want to make a meaningful development in electronics, you need to have a big scale operation. So it's really not the most important thing to do. Although everybody asked me today: “What do you think about the new Apple watch that will hit the market?”



TWM: It should be a bit different. Samsung launched one recently and I think it’s not going to have the same impact as the quartz crisis did for mechanical watches. It’s just a different thing altogether when there is a need for a piece of art on your wrist; you have to go for mechanical watches. When you need a watch to serve as a Bluetooth receiver while you are driving or to measure your pulse instantly while you are running, then you need a smart-watch.

I believe there were small quantities of L.U.C movements sold to other brands before.
Do you have any plans to sell Chopard movements to someone else?

KFS: At one time, we did because of a personal friendship with my sister; we helped someone start-up by selling a few movements. Other than that, our capacities are just not big enough to think about supplying to third parties. Frankly, I don't think there is any plan or need to do so.



TWM: I want to talk a little bit more informally now. Chopard runs a family business. I run a family business on a much smaller scale. I work with my Dad and my wife. Friends say that it’s a miracle and ask how can anyone work with their Dad and wife at the same time? There will be arguments. Operating a family business on your massive scale, how do you run it differently, compared to a public business?

KFS: In a way, it's not different by definition and obligation. We have a lot of capable management in the company, and people run different parts of the company, whether it is the subsidiary in Hong Kong or elsewhere. We have a group of very loyal and capable managers for distribution in the company. The only difference from a Group business, I would say that as a family company maybe we have more human approach. We care about people in particular, and there’s a personal presence here, there, and everywhere. People know the industry has new CEOs coming through every now and then to completely change everything.  There are changes because, by definition, a new CEO needs to make new changes. As a family firm, we have this continuity for long-term investment. We don't have to report our quarterly figures to some shareholders in the New York Stock Exchange.  We are not vulnerable to clandestine corporate take-overs. I would say these are the advantages. About the disadvantages, which we fortunately don't have is if the family don’t get along.  Luckily, our family gets along and miraculously works well.



TWM: When you took over as the Co-President of Chopard, did your father have any influence on you about tackling the business and passing on to the next generation?

KFS: There was no direct pressure applied. There was a lot of wishful thinking. As it happened, we were both interested in business. [Editor’s Note: Siblings Karl-Friedrich and Caroline]  

I think it was a good mix of wishful thinking and making us generally interested. There was also a natural evolution; I'm trying to do the same thing with my kids.



TWM: I understand that you are very interested in automobiles. You like vintage car racing; how many antique cars have you collected?

KFS: Well, this is the question that I never answer.  I don’t want to get in trouble with my wife. She doesn't know exactly and I never told her exactly. I would say there are more than I can drive in any given week. You know that is a bit of a drawback when collecting cars; it is always a bit frustrating when you need the space and you need the time for them.

[Editor's Note: It's probably more cars than he can drive for each day of the month!]



TWM: I understand you travel around the world because of market visits.
Can you tell me your favourite place as a tourist and not for business purpose?

KFS: There's no one single favourite place. Within Europe, I would love to go to London because I find so many things that is interesting for a man. There are good shirt makers, art galleries, and museums. I like the atmosphere; it is easy-going and more relaxed than other cities in Europe. It has a style. In the West, it has to be London.  In the East, it has to be Hong Kong. I really love Hong Kong. I like the dynamic way, the fast pace, the food; it’s fabulous. I like the resilience capacity of people; if there is a set-back, they would start afresh and pick it up again.



TWM: This is the mentality that we have. We suffered from SARS and the financial crisis in 1997. We tried to pick it up as quickly as we can. I live in Hong Kong; I find the pace of life is very dynamic. I like it in a way, because basically I can get what I want very quickly. At the same time, there are times when I want to slow down a little bit.

When I visit Europe, it is sometimes frustrating. For instance, if you order at McDonald's in Hong Kong, there’s a queue for ordering and a collection point. In European McDonald's, the whole process is one long waiting time.  I studied in the UK about 15 years ago and at that time I really wanted to return to Hong Kong. Sundays were miserable as towns were closed and you had to search for shops that opened.

KFS: On the contrary, I like places that are extremely quiet. For example, we bought a chateau and winery in France where it’s so quiet that night wanders around you if you are still enough. You don't hear a sound; the only things you hear are nocturnal animals. The night is pitch-black unless there is moon out and there is no light pollution. I really like that countryside where I just can switch off and think of the next L.U.C. watch I want to make.



TWM: What types of cuisine do you like; as an ideal meal where you can take your time?

KFS: If I have to choose only one type of cuisine, it is Italian.



TWM: Which type of Italian food do you like?

KFS: I like everything about Italian food, which is a cuisine that I can eat every day. I like all the pasta or ‘paste’ in Italian but also the simplicity of their meat dishes and the way they cook fish. My wife and I went to Capri for our 20th wedding anniversary. It was just out-of-this -world. My 2nd choice would be Chinese cuisine. It’s very close.



TWM: So if you have time, it will be my pleasure to invite you to the best Italian restaurant in Hong Kong the next time that you visit. Thank you very much for your time and hospitality.


This Interview is posted on PuristSPro with permission from THE WATCH magazine that holds the copyright; 2014.




This message has been edited by MTF on 2014-09-01 17:33:21


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Comments: view entire thread

 

My favorite question/answer:

 
 By: CaliforniaJed : September 1st, 2014-14:43
TWM: Will we see a minute repeater watch in the L.U.C collection? KFS: Well, 2016 will be the 20th anniversary of the new L.U.C. Manufacturer. So I think it will be the right time to celebrate. 2016 could be an exciting year!!!! Best, CaliforniaJed

Interesting watches from Chopard in future

 
 By: MTF : September 2nd, 2014-05:24
Jed, The conversation with the CEO included topics from the whole range of potential products from Chopard: Chronograph movement with QF certification Sports watches with 8Hz technoology Affordable Perpetual Calendar Lady's LUC Automatic Tonneau Complicat...  

I noticed that you also loved the same quote, MTF...

 
 By: Echi : September 5th, 2014-02:00
Fantastic quote. Thank you for sharing this article!

We both love same things: This watch is a must for you

 
 By: MTF : September 5th, 2014-02:19
Echi You like chronographs. You like Chopard L.U.C. You are a legacy PuristS member. Need I say more? Place your credit card here.......... ;) ...  

And then silence...

 
 By: Echi : September 5th, 2014-02:34
Hahaha! Man, I wish! ;-)

Price of rutabagas has gone up

 
 By: MTF : September 5th, 2014-02:38
Or are you a berries and row crops kinda guy? :-) MTF

I had to google what rutabagas is...

 
 By: Echi : September 5th, 2014-03:12
... so the cultural reference is totally lost on me. Try Blomman as it's supposed to be a "Swedish" turnip ;-) Best, Echi

Wow! What an interview...

 
 By: Echi : September 5th, 2014-01:58
A gentleman's gentleman! I like how the family is really involved. " I really like that countryside where I just can switch off and think of the next L.U.C. watch I want to make. " I enjoyed that reply on many levels! I'll be rereading this interview. Tha... 

That's a great interview because

 
 By: cazalea : September 6th, 2014-10:30
The questions and answers seem real and not scripted by the PR department. I guess I really do need to get myself a Chopard. I also like KFS\' answer about the cars because it deflects incredulity from the friends as well as criticism from the wife. I onc... 

Great interview!

 
 By: masterspiece : September 8th, 2014-11:02
Very straight forward, very real. I've yet to acquire an LUC but perhaps it should be next. Thank you again, for the great interview Aloha, Bob

Chopard: Real Passion and Real Products for Real People

 
 By: MTF : September 8th, 2014-16:03
At Chopard, "the buck really stops here" with the family. Of course, every brand has a PR department but we find (the current Mrs MTF and me) that Chopard and Scheufele family always stand by their products. I've seen family members taking notes from clie... 

Hey! You're a PuristS

 
 By: MTF : September 8th, 2014-16:08
Make your first LUC watch the LUC 1963 Chrono PuristS Edition It's in steel, which is a PuristS and affordable material for chronographs . The movement is unique to PuristS..... Regards, MTF

Ha, ha, yes, perhaps I will.

 
 By: masterspiece : September 9th, 2014-12:14
When I first joined this forum, I remember Kong suggesting to me that if I buy a Chopard, make it an LUC. Aloha, Bob

Here comes the party political broadcast

 
 By: MTF : September 9th, 2014-15:35
Officially, I have to say that all Chopard watches are the best they can make for the market positioning. That's not just the political broadcast but we (the current Mrs MTF and me) believe it. She has two rules for collecting watches and broke both of th... 

Those two rules are basically in my book as well.

 
 By: masterspiece : September 9th, 2014-16:09
My wife, on the other hand ~ diamonds are good if tastefully done, much like the Happy Diamonds. She doesn't like it encrusted. Quartz or mechanical, she has no preference as long as it looks good and matches her jewelry collection. :-) The LUC PuristS ed...