Guido Terreni, Chief Executive Officer of Parmigiani Fleurier, regarding the Star Piece: Tonda PF.

Guido Terreni, CEO of Parmigiani Fleurier, articulates his perspectives on collection design and elaborates on several concepts that render the Tonda PF a pivotal moment for the brand.

Image: Parmigiani Fleurier

I understand if you find it hard to believe that I have never conducted an interview with a CEO at their office. This extends beyond the realm of watchmaking as well. During the pandemic lockdowns, interviews were conducted online while the CEOs worked remotely from home. What is the rationale for this? Most executives of watch brands engage with the press during watch fairs, market visits, or promotional trips. This indicates that you are more likely to interview a watch brand representative in a hotel, in a concealed antechamber adjacent to a lively party, or on a yacht in the South Pacific than at the manufacturing facility.

The CEO's office is a private domain, inaccessible to outsiders and anybody without business with the executive leadership. Journalists are unequivocally not intended to be present, even watch connoisseurs for whom figures like Parmigiani Fleurier CEO Guido Terreni are esteemed. This interview marks a debut for this journalist, conducted at Terreni's headquarters within the manufacturing facility in Fleurier.

Our prior conversation with Terreni, which was also our inaugural meeting, occurred last year upon his ascension to the role of CEO. Although alterations in models and collections are typical under such circumstances, Terreni swiftly introduced the Tonda PF, a collection that has elicited more excitement for the brand than any other I can remember. Numerous specialist publications have indicated that the brand's order books are filled until at least next year, and potentially longer for certain models.

Considering the watch market is presently undergoing unprecedented expansion, despite inflationary constraints and constrained Chinese demand, the remarkable demand for Parmigiani Fleurier watches may appear somewhat unremarkable. Conversely, this brand, which Terreni describes as possessing a subdued essence, fails to attract much attention. Many of you may have been astonished to discover that King Charles III has preferred a Parmigiani Fleurier since his tenure as Prince of Wales. Undoubtedly, His Majesty is not an Instagram luminary and cannot be anticipated to generate interest in a timepiece as social media influencers can.

While this may align with Parmigiani Fleurier's preferences, the Tonda PF has demonstrated such popularity that its allure is naturally enhancing the brand's stature. Terreni partially attributes this to the vast reservoir of goodwill that collectors and the industry hold for Parmigiani Fleurier. He remembers that his previous colleagues at Bulgari, where he led the watchmaking division for ten years, not only extended their best wishes upon his leaving but also for the brand itself. “I am uncertain whether it is due to Michel Parmigiani's humility and kindness, or perhaps because we do not exhibit arrogance in promoting the product and its distribution.” Parmigiani Fleurier is a refined brand.

Parmigiani Fleurier is a subtly refined brand, and its exhibition at Watches and Wonders Geneva exemplified this quality. Terreni is appalled by the extravagances exhibited during the event, featuring "palaces" designed to make a spectacle, despite several firms being unable to accept orders due to their inability to satisfy demand. I believe it is unwise to invest significantly on the stand at Watches and Wonders; I would rather allocate those funds towards the watches themselves. Consequently, the Tonda PF collection is currently witnessing a significant increase in demand, placing the company in a challenging position, which serves as the foundation for our discussion.

The Tonda PF is performing exceptionally well, and we understand that you are sold out of all items presented last year. What is the current situation?

Image: Parmigiani Fleurier

The delivery timeline varies according on the reference; certain new orders for 2023 can be fulfilled by November, while others will be delivered by January of the following year. Regarding the 2022 watches, we anticipate delivering approximately fifty percent of all received orders this year; although we aspire to fulfill a greater quantity, the demand is excessive, and we are unable to meet it. Prior to Watches and Wonders, we secured substantial orders for the Tonda PF from the previous year, which remains in the collection and continues to attract orders, resulting in remarkable growth. However, it does not constitute a planned approach to intentionally create scarcity. This does not represent our identity. We desire that all individuals interested in acquiring a Tonda PF have the opportunity to do so, as we are eager to see an increased presence of our watches on the wrists of our audience.

The substantial demand is advantageous as it enables greater precision in our distribution. It enables us to enhance our capabilities and provide timepieces to individuals and partners that are developing the brand. We will be lowering distribution, but not in Singapore, as we have recently resumed operations with Cortina and Sincere. I had a productive conversation with Jeremy Lim, CEO of Cortina Watch, who expressed considerable satisfaction with the cooperation. The discussion was exceptionally promising, and we anticipate engaging in business collaboratively and effectively. I was delighted to have encountered him with an offer he could comprehend. In the future, [Parmigiani Fleurier] will exhibit coherence and simplicity, avoiding excessive embellishment in both design and substance of the watches. Consequently, a limited number of references will maintain the timepieces' value at a significantly elevated level.

Fleurier Consider After-market Valuations in This Context?

(Terreni accesses a well-known after-market dealer’s website to illustrate the current status of the Tonda PF, while reinforcing his argument regarding the necessity of diminishing specific distributions!) It is evident that the pricing is 50-100 percent above retail, which is a novel situation for us. Parmigiani Fleurier has consistently struggled to maintain its worth over time, likely due to the brand's lack of clarity over its vision in the past decade and the absence of a compelling value proposition. My initial position focused on placing the brand's principles at the core of its identity, specifically in watchmaking. The emphasis lies on watchmaking proficiency, cultural nuance, and understanding, attributed to the restoration expertise of Michel Parmigiani himself. This indicates significant understatement, since Michel is quite humble, unassuming, and not ostentatious. Thus, these two attributes, knowledge and competence, have been construed to align with the preferences of a contemporary gentleman's attire.

Is this where the look of sports watches is relevant?

Image: Parmigiani Fleurier

Certainly, we are progressing towards a more casual style of attire. The manner in which we dress and conduct ourselves in social settings reflects a decline in etiquette compared to the past, indicating that a sporting watch has emerged as the most sought-after accessory due to its suitability for impeccable informality. I believe that the evolution of preferences in timepieces over the next decade will go towards more polished watches. I believe that oversized timepieces lack a promising future; therefore, brands that prioritize this as a fundamental value proposition should be concerned. Achieving a sophisticated informality that is exquisite yet understated, while embodying substantial horological value, is challenging as it transcends mere excess. Your ideas and execution must be understated and concise, akin to our GMT Rattrapante. Its purity and simplicity prompt the question: why has it not been accomplished previously? This aligns with nuance and sophistication. It is subtle, present yet elusive, akin to the Grain d’orge utilized for the most subdued finishing detail with guilloche in the Tonda PF. These are the values now behind the brand. In response to your inquiry regarding value, this culminates in an experience that maintains the worth of the timepieces. The outcome relies on the extent of our efforts and the strategy employed to introduce the watches to the market.

Regarding subtlety, how can you achieve that in a piece such as the Tonda PF Skeleton?

Skeleton watches available in the market are not invariably constructed as complete timepieces. Numerous watch designers perceive the timepiece in a disjointed manner, rather than as a whole entity. Frequently, individuals tasked with developing the movement focus exclusively on that aspect. Contrasts are being established in the movement; for instance, the barrel may be crafted from gold while the bridges are treated with nacre. Subsequently, the addition of the hands renders the time unreadable—unless there is a greater contrast. Our objective was to achieve a highly uniform background to enhance legibility of the time, as the elegance of the mechanics is present, however it should not solely bear the responsibility for the watch's aesthetic appeal. We have chosen an entirely black design; even the rubies are black to avoid any red distraction while reading the time. In an instant. Our objective is to ensure that the customer's experience in reading the time is seamless and comfortable. In any complication or skeleton, it is imperative to prioritize the prominence of your two hands above any other information.

Is telling time still significant at this level?

Image: Parmigiani Fleurier

If you do not consult the time on your watch, what is the purpose of wearing it on your wrist? It is not the sole cause. One does not purchase a Ferrari merely for transportation from point A to point B. Indeed, it can accomplish that, albeit in a distinct manner—something opulent and sophisticated. To possess a watch as a companion, one must derive enjoyment from reading the time.

Ultimately, what is your viewpoint on design? Are watchmakers not the most proficient designers of timepieces?

Authentic symbols in horological design are seldom produced by individuals entirely external to the field of watchmaking. I believe it is impossible to separate design from the technical aspect, as one must comprehend the potential of any certain watchmaking process. It is essential to integrate aesthetics and technical aspects, ensuring that both elements comprehend one another. While they must challenge one another, it is imperative that they also comprehend each other. Communication between them is essential. The technological aspect should not impose limitations; they must adhere to the constraints established by the designer. If a designer had an intuition, and the technical aspect indicates it is unfeasible, I do not acquiesce to this conclusion. The designer must simultaneously comprehend the limitations and capabilities of the technological aspects. Both parties must manage challenges and identify solutions to creative impediments. One may concede occasionally, although without compromising the essence of the designer's sense.