Ex-Vacheron Constantin International Sales Director Julien Tornare has taken over the challenging role as CEO of Zenith as of yesterday, May 1, reporting directly to Jean-Claude Biver, president of the Watches Division at LMVH.
Tornare has worked for Vacheron Constantin for the past 17 years, most recently heading up the all-important Asia Pacific region. But he has also conducted business for Vacheron in Switzerland and North America.
Biver, who took over Zenith as interim CEO at the start of the year, replacing Aldo Magada, states the new CEO’s priorities will be to focus on the “renewal” of the brand, including developing its market presence and driving new marketing initiatives. In other words, giving the brand the ‘luster it deserves’ which is what Biver has promised for Zenith.
“Julien’s strong international and commercial experience in watches will be crucial to the development of Zenith, which is enjoying renewed success since Baselworld and the launch of Defy El Primero 21.” Jean-Claude Biver
The overall vision is to create greater synergies with key LMVH brands, including Hublot, TAG Heuer and Zenith. In February, during an interview with Rüdiger Bucher, Editorial Director of Chronos and Watchtime.net, a concerned Jean-Claude Biver commented on Zenith’s two years of loss making:
“There is not one reason, but an abundance of minor causes. Is it the product? Are there too many employees? Should the marketing be better? None of these factors is solely responsible. There are minor weaknesses here and there that add up. Bottom line, the whole company showed me too little dynamism. It was not fast enough. And I could not muster more patience. That is why I took the lead myself.”
Immediate action was needed as sales fell below the level where a full-blown manufacturer like Zenith could make a profit.
“Being a manufacture is a strength but also a weakness because you have to produce a minimum number of pieces to be profitable. For a manufacturer with more than 200 employees, the profitability threshold is around 25,000 to 30,000 watches per year. If you do not reach these numbers, you will inevitably lose money.”
Asked how he would like Zenith to be positioned within the LVMH stable, he said:
“Zenith stands for traditional watchmaking at affordable prices; achievable luxury, but with a more classic approach than TAG Heuer and with a price level between Hublot and TAG Heuer.”
Jean-Claude Biver’s overseeing of TAG Heuer has resulted in price revisions offering greater value in each watch than a customer would expect for the money. Similarly, even at the higher price points he hopes Zenith will adopt a similar tactic.
“This depends on the product. If I offer an ultra-flat watch with a manufactory for 4,000 euros, this is affordable. Because it is expected that such a watch costs around 9,000 euros. If it is a minute repetition, which would cost 200,000 euros, and I bring them in for 60,000 euros, then also 60,000 euros is affordable.” Jean-Claude Biver
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