Why Swiss watches made by Richard Mille, Patek Philippe are so expensive | 60 Minutes

Summary

This video explores the enduring tradition of Swiss watchmaking, highlighting the artistry and precision that defines the industry. From the origins of watchmaking in Watch Valley to renowned artisans like Philippe Dufour and modern brands like MBNF, the craft combines meticulous engineering with artistic expression. Despite the rise of digital alternatives and the challenges posed by global tariffs, Swiss watches remain a symbol of luxury and fine craftsmanship. The video delves into the intricate details of mechanical watches, the cultural significance of the craft, and the rarefied world of high-end watchmaking, where every timepiece is a work of art.

Takeaways

• 😀 Swiss watches are crafted with mechanical ingenuity, relying on gears and springs rather than batteries, offering a timeless form of timekeeping.
• 😀 The history of Swiss watchmaking dates back to the 17th century in Watch Valley, where local farmers turned to watchmaking during harsh winters.
• 😀 Philippe Dufour, a legendary Swiss watchmaker, takes up to 2,000 hours to create a single timepiece, using old techniques and a magnifying loop for precision.
• 😀 The value of Swiss watches is not just in their functionality but also in their craftsmanship, with some fetching millions at auctions due to their rarity and artistry.
• 😀 Jja Lutra, known for its Reverso model, continues the tradition of Swiss watchmaking, incorporating complicated mechanisms like the minute repeater and perpetual calendar.
• 😀 The quartz crisis in the 1970s and 80s threatened Swiss watchmaking, but the industry responded by creating both affordable quartz-powered Swatch watches and maintaining the luxury mechanical models.
• 😀 Swiss watches are viewed not just as timekeepers but as status symbols, with high-end models often requiring long waiting lists and costing hundreds of thousands of dollars.
• 😀 The precision of Swiss watches is a point of pride, with some models boasting accuracy of less than 0.01% deviation per day.
• 😀 The art of watchmaking is highly regarded in Switzerland, with even modern watchmakers like Max Buser of MBNF seeing their work as a form of emotional investment, not just a product.
• 😀 The legacy of Swiss watchmaking is passed down through generations, with artisans like Dufour sharing their craft with younger family members, ensuring the tradition continues.

Q & A

What historical context is provided regarding the origin of Swiss watchmaking?

Swiss watchmaking has been a global manufacturing hub since the 17th century when local farmers, during harsh winters, began tinkering with watch mechanisms as a side hustle. Over time, Swiss craftsmen refined the craft and created some of the most intricate and expensive timepieces in the world.

How does Philippe Dufour approach the process of creating watches?

Philippe Dufour meticulously crafts his watches by hand, starting from scratch. He is known for his signature finishing techniques, such as broad stripes, and prices his watches in the hundreds of thousands of dollars. It takes him about 2,000 hours (a year) to complete a single watch.

Why is the Swiss mechanical watch considered a piece of fine art?

Swiss mechanical watches are often seen as fine art because they are intricately crafted, using high-quality materials and techniques that result in unique, appreciating assets. The craftsmanship and attention to detail make these timepieces much more than just functional objects.

What is the significance of the minute repeater in Swiss watchmaking?

The minute repeater is one of the 'complications' in Swiss watchmaking, which are additional mechanical features beyond telling time. It allows the watch to chime the time aloud when activated, demonstrating the precision and complexity of Swiss watch mechanisms.

What was the impact of the quartz crisis on Swiss watchmaking?

The quartz crisis, which occurred in the 1970s and 1980s, severely affected Swiss watchmaking as cheaper, more accurate quartz watches from Japan began to dominate the market. The Swiss response included the creation of the Swatch watch and a greater emphasis on high-end mechanical watches, which now dominate the luxury watch market.

What makes watches like Philippe Dufour's so exclusive and valuable?

Watches like Philippe Dufour's are exclusive and valuable because they are meticulously handcrafted with extraordinary attention to detail. The high price reflects the rarity and the complexity of the craftsmanship involved. Dufour's watches are considered one-of-a-kind pieces that appreciate in value over time.

How does the market for Swiss watches operate, and what factors influence their demand?

The Swiss watch market operates with a high degree of exclusivity, with some brands maintaining long waiting lists and high prices. Demand is often driven by the rarity, craftsmanship, and prestige of owning a Swiss timepiece. Additionally, limited supply and high prices are used as business strategies to drive desirability.

How did the tariff changes by President Trump impact Swiss watchmakers?

The tariffs imposed by President Trump in 2020 had a significant impact on Swiss watchmakers, as the U.S. tariff rate on Swiss exports was initially set at 39%, pushing prices higher. After negotiations, the rate was reduced to 15%, though the initial increase still created challenges for Swiss watch sales.

Why do some Swiss watchmakers view the investment aspect of watches negatively?

Some Swiss watchmakers, like Max Buser of MBNF, believe that watches should be valued as pieces of art rather than as investments. While they understand that the value of their watches may increase over time, they argue that the primary purpose of these timepieces should be emotional connection and appreciation for craftsmanship, not financial gain.

What does the 'complication' of a perpetual calendar do in a Swiss watch?

A perpetual calendar is a complication in Swiss watches that keeps track of the day, date, and month, automatically adjusting for leap years. It is designed to function precisely until the year 2100, and requires no manual adjustments aside from winding.