Guido Terreni, CEO of Parmigiani Fleurier, Steers the Future of Luxury Horology

Guido Terreni, CEO of Parmigiani Fleurier, discusses the significance of watch fairs, the multi-brand retail experience, and the sensation of donning a superior timepiece.

Parmigiani Fleurier CEO Guido Terreni

Parmigiani Fleurier presents an improbable success narrative; akin to numerous others, it seemingly materialized overnight, yet it was the result of decades of effort. It is evident that this pertains to the Tonda PF collection, as this series of timepieces altered the brand's direction in 2021. It is evident that the individual accountable for this situation is CEO Guido Terreni. The man is not readily inclined to accept this part in the narrative thus far, although he undoubtedly concurs that Parmigiani Fleurier is progressing towards a more promising future. We believe he merits recognition not only as the navigator but also as the architect of the tale.

According to the latest Morgan-Stanley assessment on the Swiss watch market, Parmigiani Fleurier has entered the top 50 brands for the first time, ranking at number 46. This research, along with similar ones, serves as an indication rather than a conclusion, however it underscores the significant progress the brand has achieved in a brief period. In 2020, as lockdowns were relaxed, we advised collectors and the community to make an effort to reengage with Parmigiani Fleurier. The manufacturer confirmed our interest with the launch of the Tonda GT Sport, the most aesthetically pleasing and economically viable collection to use the Parmigiani Fleurier emblem.

Terreni, who assumed leadership at Parmigiani Fleurier in early 2021, expressed that he believed the cornerstone of an exceptional watch collection commenced with the Tonda GT Sport. Simultaneously, he aspired to advance the brand, perceiving Parmigiani Fleurier as possessing “a gentle and understated soul.” The Tonda GT Sports, however, risked adopting a confrontational demeanor, particularly given its inherent motorsports association. Instead, Terreni wagered on the subtle attributes of Parmigiani Fleurier, which critics had consistently said were impeding the brand's progress. Terreni's response was to remain silent and revolutionize the brand by doing the unprecedented act in horology of omitting the brand name from the dial.

The Tonda PF features merely a cartouche displaying the brand emblem on the dial, a logo that has not been utilized in this manner on the dial previously. By the conclusion of that year, the new Tonda PF was generating significant attention, and we successfully featured it on our cover for that issue (#63). Three years later, the merits of the Tonda PF line are widely recognized, and the transition to employing a badge in lieu of the brand name is observable in other instances as well, including the distinctive L’Armoriale pocket watch (see to Highlights in this issue). Utilizing a logo in lieu of a whole brand name, especially with the founder's continued presence, is quite unconventional. In horology, given the diminutive size of the product, one could underestimate its significance, but such an assumption would be erroneous. Swiss watchmaking is inherently conservative, as evidenced by the frequency with which Terreni is questioned on this topic in several interviews. We requested him to do so in our previous two conversations.

In our latest encounter with Terreni, we bypassed inquiries regarding brand names and pursued far more unconventional topics.

We did not have the opportunity to discuss your insights on Watches and Wonders Geneva during our meeting, so let us begin with that topic.

I have a strong affinity for international watch fairs, such as Watches and Wonders Geneva, particularly those of high quality. We scheduled our second appointment with the industry, clients, and the press, continuing our efforts from the previous year when we reestablished Parmigiani Fleurier's presence in the watchmaking sector at a physical fair.

This expo, in my opinion, ought to be the definitive event of the industry. I desire for every business to exhibit at Watches and Wonders Geneva, as it is a week when the public focuses on watches; timepieces are not a frequent purchase for the general populace. Not everyone consistently monitors brand activities, and if one purchases a watch every five to ten years, they do not engage with the business as those who are professionally involved do. Having an appointment where all participants are aware of subsequent actions and trackable occurrences is, in my opinion, really beneficial.

Tonda PF with micro-rotor

Are you certain about the public days, then?

I was accustomed to this at the now-defunct BaselWorld, which was accessible to the public and required tickets. The public, trade, and press were not segregated; they were all present together, however appointments were required to access the private areas within brand booths.

At Watches and Wonders Geneva, the organizers opt for separation due to the limited area, necessitating this arrangement for logistical purposes (the PalExpo venue for Watches and Wonders Geneva is likely smaller than Hall 1 at BaselWorld, for perspective). This year, three days will be allocated for the public, and I believe all brands will be better prepared than they were last year. The public astonished us in 2023. Over two days, there were in excess of 10,000 visitors, with an average age of 35 years. It was mostly individuals who were pioneers in comprehending the essence of timepieces and the pursuit of watch collecting. It is essential to spend in enhancing the audience's knowledge, regardless of whether they make an immediate purchase. At a minimum, students cultivate their curiosity and have the opportunity to physically interact with the products; the fair serves as their introduction to the brands.

”You have to invest in (improving and raising the) knowledge of the audience, and it doesn’t matter if they will not buy immediately”

This pertains to a prior discussion regarding the influx of individuals attracted to watchmaking. In what manner does Parmigiani Fleurier engage with this demographic while accommodating the requirements of seasoned collectors?

It is entirely natural; one must adjust and tailor one's talking points. If an individual is already familiar with the brand narrative, you may bypass this and proceed to a more particular and in-depth topic. The outcome is contingent upon the individual present. Typically, individuals visit physical stores to gain knowledge, having been introduced to the watch or brand through observation on a friend's wrist or through written material. Customers regularly engage in research, particularly when considering higher-priced watches, which typically involves a more in-depth exploration of horology. Certainly, not everyone is an aficionado of timepieces. Many individuals purchase the watch primarily for its buzz or aesthetic appeal. The motivations of individuals are personal; therefore, the brand must connect with the audience on an individual level.

Tonda PF 36mm

Thus, we comprehend how a brand would operate in its particular context. Parmigiani Fleurier collaborates with numerous partners and is predominantly prominent in a multi-brand context. What is your methodology in this context?

Parmigiani Fleurier evidently appeals to individuals well-versed in horology who typically choose multi-brand retail settings. A collector or watch enthusiast enjoys browsing and comparing; he appreciates guidance from someone more knowledgeable than himself.

In a mono-brand store, the workers has extensive knowledge of their brand, yet they become oblivious to external developments. You own a singular experience with the brand, however you are unable to make comparisons. I acquired this knowledge from my experience at my former company, Bulgari, where Terreni oversaw watchmaking. The advisor at a professional multi-brand retailer functions as an impartial counselor, fostering a relationship with a collector and providing guidance on effective options for him.

Tonda PF MInute Rattrapante

Allow me to provide an illustration: I dined in Hamburg, Germany, with two enthusiastic and affluent young collectors. One of them resided in Berlin, and I was scheduled to travel there the following day. I inquired why he traveled three hours to dine with me rather than meeting the following day. He informed me that he was pursuing his advisor, who had relocated from Berlin to Hamburg following a promotion. This collector continues to be advised by the same consultant due to established trust, indicating a significant rapport, which is characteristic of premier multi-brand shops.

I am eager to observe the progress of the innovative concept Sincere in Kuala Lumpur. The SHH facility functions more as a lounge than a retail establishment, providing an environment to leisurely engage in hobbies and exchange passions with professionals. Consequently, you perceive not only commercial entities.

What is your perspective on the multi-brand retail experience in comparison to the approach certain watch brands are adopting by establishing their own mono-brand stores?

The multi-brand retail adviser functions as a consultant, advocating for the interests of the watch enthusiast and the store, thereby establishing a relationship founded on trust. Each year presents numerous innovations, making navigation challenging amidst professional and familial obligations. Not everyone possesses the time and interest to examine the industry. Each year, you (the collector) inquire with your advisor about the latest developments and intriguing offerings. What do you believe would be appropriate for me? Your performance in a mono-brand or multi-brand setting is likely to be suboptimal due to your concentration on regular commercial collections. This is precisely why the SHH captivates my curiosity. This is the appropriate course of action for the multi-brand shop seeking to endure this conflict, since there exists an underlying competition between brands consolidating their distribution and multi-brand retailers that are forfeiting some appealing brands as a result. To endure, they must provide a service that transcends their own affiliations with specific businesses.

As a multi-brand dealer, I would refrain from hosting an event featuring only one brand. I would organize an event focused on micro-rotor watches, chronographs, calendars, or the various styles inherent in a multi-brand setting. I am not a multi-brand shop; therefore, they operate independently. However, if I were in their position, this is the course of action I would pursue!

Parmigiani Fleurier CEO Guido Terreni

Acknowledged, and it will be disseminated! Regarding micro-rotors and the shopping experience, I have one final inquiry about the Tonda PF. This watch must be examined closely and experienced tactilely, particularly due to its knurled bezel and distinctive band. At first glance, it resembles the Tonda GT Sport; nonetheless, it is fundamentally distinct. Is the retail experience of utmost importance here? How does the brand ensure optimal fit and comfort?

Your inquiry is astute, as it is challenging to communicate the comfort of a watch alone through an image; it is more effectively demonstrated in a film. You do not comprehend the reality until it is affixed to your wrist.

Designing a comfortable watch is an art form. The difficulty is significantly influenced by the weight of the watch head and the materials employed, as well as the manner in which the watch rests on the wrist. The bracelet's flexibility is a significant factor. All these components must converge to provide a comfortable experience, and I believe the Tonda PF with micro-rotor exemplifies this most significantly; this timepiece initiated everything and constitutes the foundation of our endeavors. Regarding the bracelet we created for the Tonda PF… In designing a semi-rigid bracelet, the designer must select an arc. This arc represents a statistical distribution of the entire population. It is neither your wrist nor mine. My 17.5 cm wrist measurement differs from yours due to variations in bone structure and other factors.

The watch must conform to the curvature of the design, rather than the wrist adapting to it. The bracelet's flexibility is of paramount importance to me.

Additionally, market preferences vary, with some individuals accepting the watch positioned nearer the wrist's end, while others insist it must fit tightly before the wrist bone protrusions.