A SPECIAL
TRIBUTE TO GÜNTER BLÜMLEIN
Foreword
By Jack Freedman – October 2001
As
one who has been associated closely with the IWC Watch Company for the past
twenty years, it has been my distinct privilege and joy to have personally met
Mr. Gunter Blumlein many times during my periodic visits to the IWC company in
Schaffhausen.
Besides
his love and passion for watches, and particularly the three brands under his
supervision, IWC, JLC, and LANGE, Mr. Blumlein was very much a travelling
salesman, chief excecutive, and statesman all wrapped together. But his
achievements on a personal and business level far surpass the ordinary and
common type of individuals normally found running large companies. His genius
lie not merely in his foresight and sound grasp of juggling multi
responsibilities at the three sister companies mentioned but that of injecting a
personal interest on the human level into every phase of their operations.
Mr.
Blumlein very well understood the total sum of the components within and outside
of the corporation. He knew exactly what makes each individual in and out of the
organization tick. It is, therefore, no wonder to me that each time I had the
pleasure of being in his company that I felt that individual attention bestowed
on me during and after our meeting.
On
one of my visits in Schaffhausen, Mr. Blumlein had just returned moments before
from an overseas trip needless to say jet lagged and not quite in formal
business attire. Nevertheless, he graciously invited me into his office and
discussed many serious subjects ending our conversation with light chit-chat.
I
will sorely miss him as a special individual for his compassion, wisdom, and
counsel as I’m sure so many others who knew him will.
To
pay special tribute to this wonderful gentleman, I have taken the time to
compile my own words among the many condolences and expressions of sympathy
posted by many others on different forums in order to have as much as possible
preserved as a lasting memorial. I have also included interviews made well
before Mr. Blumlein’s untimely death.
I
sincerely hope that this article will serve us as a reminder of the great
industry veteran leader we had one time and who, unfortunately, is no more with
us.
And,
now, my best wishes to Richemont and their LMH division in finding a worthy
successor to the late Gunter Blumlein.
Sincerely,
Jack
Freedman
__________________________________________________________________________________
Interview
with Guenter Blumlein, head of LMH (IWC, JLC; Lange)
Base:
TimeZone Forum - Date: Wed, 17 Sep
1997 23:02:10 GMT
From:
Hans Zbinden <hans.zbinden@siemens.ch>
Hello
Forumners After last month’s interview with Michael Sarp, the new head of IWC,
a talk with Guenther Bluemlein, the man who used to hold that same job and is
now boss of LMH, the parent company of IWC, Jaeger LeCoultre and Lange. This
article is from the Austrian magazine Uhren 2/97. As quite a few of you wrote me
that they enjoyed the translation of the last interview, I’ll be including
another, very special one done with Nicolas Hayek of SMH recently on my next
News & Gossip page which should be updated in the coming weeks. For now, all
I can say is that it will be very different ...
Regards
Hans
Interview:
Guenther
Bluemlein (54) is the German head of LMH (Les Manufactures Horlogeres). He’s
an engineer by profession specializing in fine mechanics and started his career
in the watch-business as chief of quality control at Junghans.
In
1981, he was employed as a consultant by IWC, who at that time were in the pits,
to say the least. The rest is modern watch-industry history ...
Some
introducing information: LMH is held by VDO who again are hold by the giant
multinational company Mannesmann. VDO are specialized in manufacturing
instruments like speedometers and other measuring devices, especially for the
automobile industry.
Uhren:
Mr. Bluemlein, for a short time you’ve been residing in what’s probably the
nicest and biggest office IWC have to offer. You have a great view over
Schaffhausen but at the same time hardly have anything more to do with the
brand.
Guenther
Bluemlein:
I wouldn’t formulate it that way. But you’re right. The operative business
of IWC is now in the hands of others.
Uhren:
Does that mean that the brand isn’t steered by remote-control by the prolific
president Guenther Bluemlein ?
GB:
No, not at all. I admit, that I’ll stay involved in product-design and
-innovation and that I have a lot to say in regard to marketing and that
I overview the complementary (meaning, all 3 brands make products that
complement but don’t stand in competition with each other) direction of the
houses. But basically, all three brands are run as individual profitcenters. By
Swiss law, the board of each company is responsible for the results. But for the
time being, I’ll be the third man in management at Lange and will be
responsible for marketing. All in all, all three brands stand in complementary
competition with each other.
GB:
To understand the advantages and needs, you have to look back in history a bit.
The “chronometric” activities of VDO, our direct mother firm, reach back far
further than is generally known. 1978 was a crisis year for the automobile
industry and VDO, who are an important furnisher for that industry, had the idea
to use their know-how in the quartz-watch sector for the consumer market. A
European watch-alliance was to be formed to be in a better position against the
Japanese competition. That way, companies from Germany, France and Switzerland,
amongst others, the badly hurting IWC and in form of a stock-majority, also
Jaeger LeCoultre, landed under the roof of VDO. In 1980, I was appointed to
coordinate this engagement.
Uhren:
The rest of IWC’s success story is well known, but what happened at Jaeger
LeCoultre at that time, they weren’t to that well either
GB:
The grand old brand from the Vallee de Joux was for years operating on
the virge of death. What I found in Le Sentier was a mixture of all possible
things imaginable. They were making luxury products like pens and
lighters for Christian Dior, they were making board- and measuring instruments,
medical machinery, movements and traditionally of course, finished watches. The
problem was, not a single department was profitable. So, first we had to get rid
of the useless diversification products. Back to the roots of their original
business was ordered. In1986, Monsieur Belmont came aboard as a technical
director. In the same year, it became apparent that 12 million francs (then
around 6 million US-$) were needed to survive. With that, the minority
share-holders, a bank with 20 % and the family Ketterer of Vacheron-Constantin
(25 %) couldn’t go along. In light of the difficult situation, VDO were happy
to sell Audemars-Piguet a 40 % share in JLC. I reckon that was the best thing AP
could do at that time. Just think of the enormous rise in value up until today.
GB:
In 1984, I took over the strategic and in 1986 the operative leadership of the
manufacture. The incredible success of the Reverso and other models
assured JLC one of the front-row seats in the small orchestra of top
brands. The general manager, Mister Belmont, with whom I’ve been working
together well in the last 10 years will lead the brand in to the next century.
And there’s no doubt, that he can count on promising line of watches.
Certainly, the new Reverso jewelry range will bring another boost. And, sportier
lines will be introduced but I’d prefer not to discuss that at the moment.
Uhren:
So, third in the round is probably your favorite pet, sitting in Glashutte. How
did that happen ?
GB:
This connection reaches back much further than to the German reunion. Walter and
Ferdinand Lange were already looking for a possibility in the West to start a
revival during the 60’s. They dreamed of manufacturing pocket-watches in the
usual Lange style. They even had a Lange pocket-watch with a decorated and
signed IWC calibre. But the dream didn’t last, there wasn’t a market for the
watches they were imagining. But still, the idea was kept alive in their heads
and after the fall of the wall it reawakened. Albert Keck, a manager at VDO and
watchmaker was interested in the idea. So, in 1989, first contacts were made
which were continued in Spring 1990. There were excellently trained people in
Glasshutte and we could really use this potential when starting up production of
our “Made in Germany” watches.
GB:
Yes, of course. We first had thought about a joint-venture, we were having
intensive talks. But within the old structures, things didn’t go forward. And
then the reunion on October 3, 1990 came to help. Suddenly, we didn’t need the
Treuhand (sort of Chamber of Commerce in the GDR) anymore, Lange & Sohne
could do it alone. At that time, I reckoned with a financial involvement of
around 500’000 DM (300’000 US-$), we were baking small cakes back then.
Uhren:
Quite a misinterpretation of the situation ...
GB:
I admit ! But at that time, we were lacking the knowledge, how Lange & Sohne
would make an impact in the lonely heights of the top segment of watch-making.
When we were in, we quickly realized that we wouldn’t get around manufacturing
our own calibres and the enormous development costs they require. When “Lange
2”, the new plant starts production next year, we’ll have invested about 30
million DM (18 million US-$) in Glasshutte - an amount that is well worth it for
us and for the whole region. Our new catalog shows 10 different Lange watches
including the new, revolutionary automatic with double-date, the rectangular
Cabaret and the understated 1815 with power-reserve. That little indication at 8
o’clock needs around 100 additional parts and doesn’t make the 1815 calibre
a millimeter thicker !
GB:
At the moment, there’s absolutely no need to even lose a word about it. But
who knows what kind of changes will confront the very lively watch-business
Uhren:
Let’s talk about the market and the markets. How do you see the future of
watchmaking ?
GB:
In my view, it’s now the turn of the honest concepts with long-term planning.
Honesty and believability are important prerequisites for a positive business,
even in difficult times. The people who can afford expensive watches and want to
will always have money. But the customers are getting more critical with time,
and they’re also becoming more enlightened (thanks to Timezone). That’s why
they’re looking for a healthy and somehow understandable price/performance
ratio. The rip-off mentality you often find in newcomers is being seen-through
more and more. A standard Lemania chonograph calibre in a 18 K gold case is fine
with me. But when the whole thing costs 40’000 DM I have to ask myself ...
Booming business in Asia shouldn’t close ones eyes for the European market.
Short-term success in a strong-phase of the economy revenges itself as soon as
the customers realize, that they somehow were pulled over the table (German
expression for getting ripped off). Of course, every buyer of a watch is at the
same time paying for taxes, margins and profits. But at the end of the day, you
still have to have the positive feeling of haven gotten something of realistic
and keeping value. (I have no doubt in my mind that above refers to Frank
Muller)
GB:
It’s no secret that the market for great complications is in a phase of
saturation, useful innovations will be ahead in the future. But, a luxury watch
can still be a useable watch. The big, easily readable wrist-watch will be
successful on the market as will be the watch with a sporty touch. A masculine
look is in demand but without being macho. And, the fine “banker’s watch”
with small second-hand has a future. Apart from that, not in our group though,
the overdone styling will still be around, many people need that. I can tell
you, in my view they’re isn’t another field which produces so many hideous
products as watch-making. Long live the small difference !
GB:
Basically, I’m against reissues. First of all, they turn against the owners of
the originals and somehow diminish their treasures, additionaly, they put a
break on innovation. But I admit, it’s very difficult to come up with new
things all the time in our field. Everything has been around at one time before.
For some time now, retro models have been gaining in popularity. If they please,
they’re bought. For that reason, we have to differentiate between authentic
models that have a place in a brands history or if they’re from a newcomer who
looked in old catalogs of traditional brands and copied them without shame.
GB:
No. For example, I estimate the top-level, to which Lange belongs, manufactures
60’000-70’000 watches per year worth about 1.8 billion DM (1 billion US-$)
at retail. The potential customers are there, so is money. And, the people are
prepared to spend their money if they, as I’ve already said, get something of
realistic value for it. That’s also a reason that it’s very important to me
that all our products, regardless if from IWC, Jaeger or Lange, have the highest
possible technical or design individuality. That’s what makes them desirable.
“Me too” products can be manufactured by others. Something else the industry
should take to heart: the word here is “self-control”. If the market is, for
example, flooded with tourbillons and brands that never before produced
complicated watches suddenly offer such models, that lessens their value,
lessens their desirability. Suddenly, the merchandise remains heavy as lead in
the shop-windows. Rarity and reduced availability increase the desire and
stabilize the prices. There are enough examples.
Raving
comments about Mr. Blumlein from chairman Rupert of Richemont
Watches and Jewellery /
Financial Times (London) ; March 24, 2001 - http://surveys.ft.com/wcj2001/
(a section of a lengthy and full report on Basel Fair 2001)
Last
year’s big deal was the SFr3.08bn paid by the Richemont Group for three
companies owned by Mannesmann - Jaeger-LeCoultre, International Watch Co, and 90
per cent of A. Lange & Sohne (of which Walter Lange, great-grandson of its
founder, retains 10 per cent). Mannesmann was, of course, acquired by Vodafone.
Richemont
is controlled by the family interests of South African Johann Rupert, and led by
Alain-Dominique Perrin, executive director of Les Manufactures Horloge‘res.
Meanwhile, Gucci and LVMH have also been adding to their stables of watch
dial names, implementing cross-branding exercises, and taking fresh looks at
distribution arrangements. The
latter reflect perceptions that ownership of exclusive outlets is the coming
trend, and that other retail points must be ever more carefully selected.
Mixing mechanics and marketing
When
the history of the recent luxury watch boom comes to be written, Richemont’s
SFrs3.2bn purchase last July of the three luxury watch companies in Les
Manufactures Horologe‘res (LMH), will deserve a special mention.
Not
only was the absolute sum paid a world record, but so was the valuation put on a
group which manufactures fewer than 100,000 watches a year.
Richemont,
controlled by South Africa’s wealthy Rupert family, made its money in the
tobacco industry and has deeper pockets than most. Nevertheless, its willingness
to pay around eight times estimated 2000 sales and 34 times estimated earnings -
before interest, tax, depreciation and amortisation - for LMH underlines the
scale of the competition for the dwindling band of independent luxury watch
brands.
The
biggest name in the LMH stable is the 167-year-old Jaeger-LeCoultre. Its 900
craftsmen produced 48,000 watches and 3,300 table clocks in 1999. The second
biggest is the International Watch Company, founded by Florentino Ariosto Jones,
an American, more than a century ago. It sells 39,000 watches a year and its
best known timepiece is the Da Vinci.
The
smallest and most recent addition to the LMH collection is A Lange & Sohne.
It can trace its roots back to 1845 when it was founded in Glashuttein Germany,
and differs in that its watches are Made in Saxony, not Made in Switzerland. Its
180 staff produce just 22 watches per head a year.
Richemont,
the world’s number two luxury goods company after France’s LVMH, already had
its own collection of luxury watch brands led by Cartier.
“One
of the main reasons for the fierce competition for LMH was the quality of its
management,” says Richemont chief executive Johann Rupert.
Not
many senior executives in the watch industry can match German-born Gunter
Blumlein, 57, who has been running the Schaffhausen-based IWC for more than 20
years.
Philippe
Stern of Patek Philippe and Cartier’s Franco Collogni have longer luxury watch
industry pedigrees. But Mr Blumlein has been in the business longer than the
likes of Swatch’s publicity conscious Nicolas Hayek, who the Swiss media call
the Uhren-Konig.
Mr
Blumlein started more than 30 years ago with Germany’s Junghans, which at the
time was the world’s biggest producer of clocks and watches. But like many
Swiss watchmakers, Junghans was badly hit by competition from Japanese
mass-produced quartz watches.
Unlike
Mr Hayek, who countered the Japanese invasion by launching the low-cost stylish
Swatch, Mr Blumlein’s survival strategy was to concentrate on the renaissance
of mechanical and technically sophisticated watches.
“To
be a success in our industry you have to be able to handle the design and the
engineering of movements,” says Mr Blumlein. “But you also have to be able
to create emotion and get close to the end consumer. The ability to build a
bridge between the two different skills is the great strength of Switzerland’s
watch manufacturers.”
One
of Mr Blumlein’s first ideas was to join forces in 1978 with Ferdinand
Alexander Porsche, an Austrian member of the car making dynasty. His
anti-magnetic watch design was the first of several new ideas for IWC.
Co-operation flourished for over two decades until Mr Porsche bought his own
watchmaker - Eterna.
Mr
Blumlein also insisted IWC did not bow to the accountants and outsource its
manufacturing. “It is important to have the ability to manufacture custom-made
movements. If you pay a lot of money for a watch, you want the product to be
different. Watch connoisseurs can tell.”
Nevertheless,
Mr Blumlein’s engineering background has not suppressed his marketing skills.
“This used to be an industry which concentrated on delivering top quality time
pieces. Now it has become much more than that. It is also an industry of
dreams.”
Mr
Blumlein’s success in satisfying the dreams of the luxury watch buying public
is reflected in LMH’s 19 per cent a year sales growth in recent years.
While
an admirer of the marketing success of such giant watch brands as Rolex, he also
sees a role for much smaller and exclusive brands. He does not subscribe to the
idea that there are huge economies at the top end of the luxury watch market.
“A
customer at the top end of the market does not want to buy a ‘group’ watch.
He is interested in a Breguet, a Cartier, or a Jaeger LeCoultre. You are buying
an idea, an emotion, a tradition.”
Mr
Blumlein has equally forthright views on the scale of the threat from electronic
commerce. “In our world of watches selling over the internet is excluded. We
have a strong partnership with the best retailers in the world. They are our
ambassadors. They show off our products.
“You
cannot compete against your own customers by selling directly over the internet.
It will not work. People want to see and touch our watches.”
_________________________________________________________________________________
Another very interesting interview with Mr. Gunter Blumlein appears on Peter Chong’s website.
Interview
with Gunter Blumlein
__________________________________________________________________________________
Posted
By: MF <mfriedberg@timezone.com>
(proxy1-external.wkgn1.il.home.com) Date: 10/1/01 07:13
I
am very sorry to report here that Günter Blumlein has passed away this weekend.
Mr.
Blümlein had been one of the most influential persons in the Swiss watch
industry. Originally the head of IWC, he became the head of LMH, the Mannesman
holding company that owned IWC, Lange and part of Jaeger Le Coultre. When LMH
was sold to Richemont, he was responsbile for those companies and others within
the Richemont Group.
IWC
has stated:
It
is with deep sorrow that we must bid farewell to GÜNTER BLÜMLEIN
Chairman
of the Board of Directors of IWC Co. Ltd., Schaffhausen.
He
died of a serious illness, borne with great dignity and fortitude, in his 58th
year.
Günter
Blümlein was a true leader in every sense of the word and set the standards for
a managerial style that mixed entrepreneurial values with a strong sense of
humanity. We at IWC are strongly committed to maintaining his example of
economic success based on the highest ethical principles.
One
of the watchmaking industry’s most outstanding personalities is no more. We
are deeply grieved and pledge to do our utmost to continue his life’s work as
he would have wished.
With
sadness,
Michael
Friedberg
My deepest sympathy to his
family ...
Posted
By: Jack Freedman <jfsuperior@aol.com>
(acadfb98.ipt.aol.com) Date: 10/1/01 07:30 In Response To: Terrible News: Günter
Blümlein Died (MF)
...
and all employees at IWC, JLC, and LANGE.
I
always found Mr. Blumlein a well informed and understanding person who cared
about individuals. It was indeed a privilege to be in his company and whenever
so I felt he sincerely listened carefully to the concerns of his visitor.
I
know I will miss him much.
With
sorrow,
Jack
Freedman
A very sad loss and an
enormous legacy
Posted
By: Hans Zbinden <hans@chronometrie.com>
(fw3ext.siemens-sbs.ch) Date: 10/1/01 08:57 In Response To: Terrible News: Günter
Blümlein Died (MF)
Hello
Forumners
Gunther
Blumlein was one of the most important personalities involved in the
resurruction of the Swiss watch industry. The way the then floored IWC and JLC
were brought back to life under his leadership and of course, his vision to
bring back the craft to Eastern Germany, are all most important milestones of
current watchmaking history.
I
am lucky to have met Mr. Blumlein at dinner Lange & Sohne hosted at the
Basel Fair 2000. After our meal, he sat down at our table and insisted we all
join him for cigars and a brandy. He was wearing a Datograph and although I was
slightly intimidated by his overwhelming presence, I brought up the courage to
ask him to see it. From WIS to WIS, such a request is not unusual and he
unstrapped and passed over the watch without hesitating and let us play with it
for the rest of the evening. I’m glad to have such a nice memory of the man.
Regards
Hans
My deepest condolescences!
This is an incredible lost (more)
Posted
By: Magnus Bosse <magnusbosse@freesurf.ch>
(130.60.14.232) Date: 10/1/1 - 08:45:13 In Response To: Terrible news: Günter
Blümlein has died (MF)
for
the wachmaking/-admiring world! Mr. Blümlein was one of the today’s most
important and pacemaking personalities and has done much efforts for the
resurrection of the mechanical watch.
I
believe that the high price Richemont paid for the former LVMH group was to a
large extend a tribute to Mr. Blümlein’s outstanding work.
It
is time to say ‘thank you’ that we had such a person in the horological
industry.
My
deepest condolescenes to his family, his friends and co-workers at IWC. Lest
keep his remembrance!
Magnus
Bosse
Memorial Service in
Schaffhausen on Friday...
Posted
By: Peter Chong (sbproxy3.mystarhub.com.sg) Date: 10/1/01 10:25 In Response To:
Terrible News: Günter Blümlein Died (MF)
I
was saddened when Dr. Frank Muller and the local Lange Authorized Dealer called
me earlier today to inform me of the news.
Mr
Blümlein is an icon in the modern watchmaking industry. This loss is not only a
great loss for Lange Uhren, LMH and Richemont, but for the entire watchmaking
industry and the wold at large.
My
prayers are with him and his family.
I
will be attending the memorial service in Schaffhausen this Friday as a
representative of collectors worldwide. If there is anything you would like for
me to do/say on your behalf, please let me know.
Great Loss
IWC
Forum / Switzerland
Posted
by Ralph Ehrismann on 01.10.01 at 17:48:06
A
tragedy for his family, IWC and everyone who wears an IWC or an other watch if
the Richmond Group.
We
all can only thank for all he has done for us!
He
had a spirit and a vision what time is and how to represent it with a watch.
He
stronlgy influenced the development of some watch companys make for us pieces of
time.
We
will keep him in mind all the time which is given to us.
Ralph
A few words in memoriam
IWC
Forum / Switzerland
Posted
by MF on 01.10.01 at 16:31:56
Dear
Franco and all,
Normally
this Forum reports on good news, but this time I have sad news to report. I had
waited to see if a word would be posted directly by Schaffhausen.
Over
the weekend, Günter Blumlein has passed away. Mr. Blümlein had been one of the
most influential persons in the Swiss watch industry. Originally the head of IWC,
he became the head of LMH, the Mannesman holding company that owned IWC, Lange
and part of Jaeger Le Coultre. When LMH was sold to Richemont, he was
responsbile for those companies and others within the Richemont Group.
This
is a tragedy for everyone involved. His loss will be felt by his family—not
only his personal family and his IWC family, but the world.
IWC
has stated:
It
is with deep sorrow that we must bid farewell to GÜNTER BLÜMLEIN
Chairman
of the Board of Directors of IWC Co. Ltd., Schaffhausen.
He
died of a serious illness, borne with great dignity and fortitude, in his 58th
year.
Günter
Blümlein was a true leader in every sense of the word and set the standards for
a managerial style that mixed entrepreneurial values with a strong sense of
humanity. We at IWC are strongly committed to maintaining his example of
economic success based on the highest ethical principles.
One
of the watchmaking industry’s most outstanding personalities is no more. We
are deeply grieved and pledge to do our utmost to continue his life’s work as
he would have wished.
On
a person note, I was fortunate to have met Mr. Blümlein several times. I once
asked him about his feelings about bringing back to life the great German
watchmaking tradition with his leadership at Lange. He said, with the modesty
only afforded a successful man, that he viewed his role as a “scratching on
the wall of history”.
The
last time I saw him was at this years’ Basel fair and I told him about this
Forum. A few weeks later I learned of his illness.
My
extreme sympathy to Mr. Blümlein ‘s family.
Regards,
Michael
(Michael
Friedberg)
My sincerest condolences to
his family, friends and ...
TimeZone
/ IWC Forum
Posted
By: Eugenio Demmenie aka Amadeus Gould (1cust91.tnt35.rtm1.nl.uu.net) Date:
10/1/1 - 14:01:14 In Response To: Terrible news: Günter Blümlein has died (MF)
colleagues
at IWC, Jaeger-leCoultre, Lange and Richemont group.
I
am saddened by the passing of Mr. Blumlein.
I
met Mr. Blumlein personally during a Lange group dinner for which I was invited.
Mr. Blumlein had a great passion for watches which he combined with great
leadership and a great sense for creating/launching watches that make an impact,
weither it was a new IWC, Jaeger or Lange. But more importantly, he was a very
nice person, very open, friendly. He will be sadly missed.
My
thoughts are with his family and friends.
Eugenio
Demmenie
Mr Blunlein will long be
remembered for his.....
Posted
By: Marvin Arnold <sugar42@pacbell.net>
(adsl-63-196-117-220.dsl.frsn01.pacbell.net) Date: 10/1/1 - 16:46:15 In Response
To: Terrible news: Günter Blümlein has died (MF)
great
achievements for the watch industry. His career was one of fine accomplishments
with dignity, always.
Marvin
Arnold
Given Mr. Blümlein’s tragic
death, what will happen to the LMH co’s.?
TimeZone
/ Insights
Posted
By: Stieglitz (proxy2-external.wkgn1.il.home.com) Date: 10/6/1 - 18:21:36
I
hesitate to raise this question, especially now, but I think it raises issues
that have to be considered.
Richemont’s
acquisition of the LMH companies –Lange, IWC and JLC— raised a number of
issues in 2000. In some ways, these companies were and are very different than
the Richemont stable, lead by Cartier, with Panerai as a rising star and
Vacheron added. There were differences in product, distribution and philosophy.
There even were differences in management, both in quantity and style.
In
some ways, the differences were complimentary: LMH’s strengths filled needed
gaps within Richemont and Richemont offered strengths to LMH. Yet there were
also concerns in some quarters that Richemont would change the essential
qualities that made LMH and its products special.
However,
there were rumors that one person –a legend in the watch industry— Günter
Blümlein would prevent that. He reportedly was able to tell Johann Rupert of
Richemont “let me run my companies”. I don’t know if that is true, but
given his track record it is plausible.
Nevertheless,
there reportedly was a great deal of political jockeying after the acquisition.
It was rumored that Blümlein may have “won” –at least he would head up
the major “horological” companies in the Richemont Group, including not only
JLC, IWC and Lange, but now also Vacheron and Panerai. There were reports about
“politics” and executive suite deals. What follows are excerpts from
Richemont’s March 2001 Press Release:
Johann
Rupert, currently Chairman and Chief Executive of Richemont SA, will remain as
Executive Chairman of the Management Board, while continuing as Chief Executive
at the holding company level. Alain Dominique Perrin becomes Chief Executive of
Richemont SA. Jan du Plessis, Finance Director, will continue to report directly
to Mr Rupert.
Richard
Lepeu, currently Chief Executive of Cartier, becomes Chief Operating Officer of
Richemont. ..Guy Leymarie, currently Chief Executive of Alfred Dunhill, succeeds
Mr Lepeu to become Chief Executive of Cartier.
Günter
Blümlein, previously Chief Executive of LMH, becomes Chief Executive of
Richemont’s new specialist Watch Division with responsibility for Jaeger-LeCoultre,
Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne and
Officine Panerai.
Recognising
the need to coordinate the strategic development of these respective brands,
Franco Cologni becomes Executive Chairman of both Cartier and the newly formed
Watch Division.
My
question then is simple: given Mr. Blümlein’s tragic death a week ago, what
will happen to “his” former companies, Lange, IWC and Jaeger LeCoultre?
A very appropriate question
Posted
By: Hans Zbinden <hans@timezone.com>
(pop-be-5-2-dialup-195.freesurf.ch) Date: 10/7/1 - 03:36:36 In Response To:
Given Mr. Blümlein’s tragic death, what will happen to the LMH co’s.? (Stieglitz)
Hi,
I’ve
been wondering the same thing and didn’t come up with an answer yet, I believe
the coming year will show the direction the companies will take. All three of
them have been very successful in recent years, have grown steadily and
basically sold everything they produced. So it would only seem logical that
nothing is changed. Gunther Blumlein was unique because he wasn’t only a very
capable manager but also loved the products he was creating, he’ll be very
hard to replace.
On
the other hand, Richemont paid an incredible amount of money for LMH. The worst
thing that could happen is that they would try to force the increase of profits
by comprising quality or introducing new lines that have nothing to do with the
companies original product (like Must de Cartier). I really don’t foresee this
though but under the circumstances of the current world affairs, it’s
impossible to predict what strategies luxury goods manufacturers will chose.
Regards
Hans
Perhaps...
Posted
By: Watchbore <downing@iprolink.ch>
(ip124.zurich117.pub-ip.ch.psi.net) Date: 10/7/1 - 10:29:03 In Response To: A
very appropriate question (Hans Zbinden)
that
nice Mr Henry-John Belmont of JLC will assume the mantle?
Watchbore
Good call
Posted
By: Kevin in London <nodnolninivek@yahoo.co.uk>
(host217-35-213-201.webport-cl5-hg1.sheffield.mdip.bt.net) Date: 10/7/1 -
12:46:38 In Response To: Perhaps... (Watchbore)
H-J
Belmont has done an excellent job at Jaeger-LeCoultre. I can remember when
Jaeger was a non-descript company, producing everything from pens to lighters
(and not very good ones at that). Mr Belmont has done tremendously well to make
Jaeger what it is today - he does have the right stuff for the top job. If he
does get it, I’m sure he’ll continue down the path that Mr Blumlein started.
I
hope you’re right on this one Watchbore.
Regards
Kevin
Wish I could I agree
Posted
By: Anon. (web25.iuinc.com) Date: 10/7/1 - 13:46:50 In Response To: Good call
(Kevin in London)
First
off, Cologni will have him for breakfast.
Second,
I respectfully suggest that you might personally be confusing your admiration of
the product with a lack of knowledge of the business results. Rumours have it
that Jaeger LeCoultre is doing just okay. Its Master Control models are
reportedly not selling well and the company’s profitability allegedly is
marginal. Although this might not be a reflection upon Mr. Belmont, its sales in
several markets are reportedly declining and over the past few years it has been
outperformed in terms of growth and profitablity by the other two LMH companies.
Don’t
misunderstand me: I like Jaeger Le Coultre products, but I suspect your
conclusion reflects a lack of knowledge of who Cologni is and the internal
business numbers. I also hear Mr. Belmont is a nice guy.
I
apologise for the need for anonymity on this post, but consider the possibility
that the substance may be correct.
Re: Wish I could I agree
Posted
By: Kevin in London <nodnolninivek@yahoo.co.uk>
(host217-35-232-120.webport-cl5-hg5.sheffield.mdip.bt.net) Date: 10/7/1 -
15:38:01 In Response To: Wish I could I agree (Anon.)
You
could be right; I don’t know how JLC has performed. But are the rumours you
mentioned reliable?
Don’t
get me wrong - I’m not arguing, and what you say could well be true. I had
however, heard that JLC was cutting back on the supply of its ebauches to other
brands (even IWC, its sister company) because internal demand had grown
considerably. If this is true, then presumably the increased internal demand is
due to an increased demand for its watches (specifically, the Master series)?
Anyway,
thanks for your thoughts. Incidentally, I met Mr Belmont very briefly at Basel
and he does indeed come across as a nice guy. Perhaps too nice? Who knows?
Regards
Kevin
Power struggle
Posted
By: Watchbore <downing@iprolink.ch>
(ip38.zurich117.pub-ip.ch.psi.net) Date: 10/8/1 - 08:14:36 In Response To: Re:
Wish I could I agree (Kevin in London)
Cologni
is from a different brand culture: control of communications, contempt for
consumers. It might work for Panerai and Cartier, but the JLC, IWC, Lange
customer is perhaps a little more sophisticated.But Johann Rupert who ultimately
calls the shots, prefers to be surrounded by older advisors.
Watchbore
Frank Muller the Managing
Director of Lange would be a (more)
Posted
By: alex (194.98.240.56) Date: 10/8/1 - 11:46:31 In Response To: Given Mr. Blümlein’s
tragic death, what will happen to the LMH co’s.? (Stieglitz)
great
choice.
IWC
and JLC being the top of the medium range brands already have high amounts of
production and sale. They also have “reasonably” priced watches that remain
accessible, their marketing is working and their brand image is set.
However
Lange is another story and the slightest managerial decision that can bring the
customers or potential customers to think that Lange is no longer the “creme
de la creme” would be a terrible blow to Lange.
IWC,
JLC and even more Lange should not only be run by business men but by
aficionados who love the product that’s why a person comming directly from one
of these 3 brands and not from Vendome would seem the best choice IMHO.
Tribute and memorial to
Blumlein
TimeZone
/ Lange Forum
Posted
By: Bernard <dermawan@magix.com.sg>
(165.21.83.212) Date: 10/1/1 - 19:47:47
I
hope those who have met Mr Blumlein would take some time to share on this forum
a tribute and some memories for this good man.
I
wish to start first by saying that although I have but met him on several
occasions and I do not know him well, he made an impression on me. He was a
humble person, and did not let color or money or class affect his dealings with
others. These were my impressions, and I am a chinese doctor in singapore....a
general practioner who works in the poorer parts....I see a great landscape of
human emotions and feelings each day in my job, I meet and talk to over 100
patients each day,5 days a week.I don’t look rich or influential.
I
first met Mr Blumlein in 1997 at a society event in his honour, and I remember
he was wearing these absolutely tired looking brown loafers with an immaculate
grey suit.He had as usual, impeccable hair, neat to the last follicle, but the
shoes....ah. He asked me if I was Peter Chong....no I was not, he had not met
you yet Peter. He said to me that if I were to meet Peter, tell him that he was
very happy about the response on the internet to Lange.
Several
years later, I met him again in Dresden...and after having dinner with him which
he paid for...he actually walked us back to our hotel...more than 3 km away thru
some back alleys and all. Hey, I am not some rich guy...I am just a fellow that
likes watches..my mother is a nurse and my dad is a school teacher. Well it
could have been some rich guys among our group...but no...I think Mr Blumlein
was a good man...he was just naturally hospitable.
I
remember being absolutely blown by the fact that he knew where every tool,
screwdriver and loupe was kept in the Lange factory. I watched the man deftly
open a drawer and remove a tool to pick up a bridge. I remember the way he
operated those laser measuring machines, the assured way he swithced on the
spark cutting machine. Great scott....this was the CEO of the company! This was
hands on! He was bringing us on a walk thru Lange in July 1999. He was like a
nurse in a trauma clinic, he knew every inch, every tool and every body that
worked there. He even told me that the girl who normally does the engraving for
the cock was pregnant, and they have let her bring the metal pieces home to
work. I mean how many CEOs know their factories and staff that well?
I
also remember the time he asked my wife to remove a stainless steel Franck
Muller chronograph from her wrist and let him have a look at it....at a dinner
table, so now I know this can be done in good taste, and he looked at it
intently for a long time....and he said that he liked it, in a believable way
and then explained why he admired it for certain traits. I wondered why he did
not ask me then about the arkade....but the next day he spoke much about the
arkade. I bought an arkade for my wife a year later.
I
remember giving him a dreadful oil painting of a saxonia and said it was a piece
of chinese Bauhaus, he laughed for some time and actually posed for some photos
with it, it was embarrassing.
I
salute you Mr Blumlein and bid you farewell. As a person, I have learned from
you...in such brief meetings, it is a measure of your stature and character.
Farewell.
Very, very touching, and
wholly consistent
Posted
By: ThomasM <tm@ThePurist178.com>
(ac9406a8.ipt.aol.com) Date: 10/1/1 - 21:05:08 In Response To: Tribute and
memorial to Blumlein (Bernard)
with
my own experiences.
It
is rare for a man with as much recent success as he to have managed to keep both
feet firmly planted on the earth.
That
he was gracious and cordial, even knowing that he was gravely ill at the time,
is the ultimate testimony to his character and style.
Under
his leadership, I was comfortable that VC and Lange could co-exist, one
regaining its rightful place in the watch firmament, the other ascending to that
same throne.
May
the foundation you so ably laid continue to grow and prosper, to do justice to
your memory.
My
deepest respects to you, Herr Blumlein, and may you rest in peace.
Thomas
Mao
He was responsible for the
existence and appearance of the Lange 1
Posted
By: dermawan <nh280@magix.com.sg>
(165.21.83.211) Date: 10/1/1 - 21:32:36 In Response To: Tribute and memorial to
Blumlein (Bernard)
Blumlein
was the decisive factor in the appearance of the face and dial of the Lange 1.As
well as the ressurection of the company.
His
passing will be like a landmark for Lange owners in this timeline.
Eloquent homage...
Posted
By: Peter Chong (57.250.224.246) Date: 10/1/1 - 21:35:49 In Response To: Tribute
and memorial to Blumlein (Bernard)
I
am lost to add any, except Amen, and to add my condolences.
As
mentioned in the post below, I will be in Schaffhausen this Friday to attend the
memorial service. Please send me an email if you wish me to deliver a message to
the family and/or the company.
Peter..we must petition....
Posted
By: dermawan <nh280@magix.com.sg>
(165.21.83.211) Date: 10/1/1 - 21:56:17 In Response To: Tribute and memorial to
Blumlein (Bernard)
The
Lange company to include a chapter on the actual process of building up Post War
Lange in 1990 and the figures behind it...Blumlein, Reinhard Meis and Walther
Lange.
Ut
should explain how the initial Lange watches were made...Lange 1, saxonia and
arkade...and how Blumlein et al resuurected the company.
This
chapter should be in the Lange catalogue, or the newer Lange enthusiasts will
forget the contributions of Blumlein....this thought is actually quite
upsetting.
Yes.
Posted
By: Richie <Lparc@earthlink.net>
(63.210.223.65) Date: 10/5/1 - 22:07:54 In Response To: Peter..we must
petition.... (dermawan)
Greetings:
Deep
condolences to the family and friends of Mr. Blumlien. I have known that he was
ill, yet am still shocked by this news.
I
have never met him, yet have followed his career peripherally. Yet, per this
post, I would be most interested if the details of the Lange re-birth, along
with roles of the people who made it happen, could be documented.
Kind
regards,
Richie
Thank you, Bernard. As one who
Posted
By: SteveG <steve@ninanet.net>
(dhcp065-024-252-021.insight.rr.com) Date: 10/2/1 - 05:06:35 In Response To:
Tribute and memorial to Blumlein (Bernard)
who
could not have known him, I appreciate your taking the time to provide some
personal reflections of this evidently accomplished and compassionate gentleman.
Over
the past year or so I have bought several Frey-era Minervas, largely because the
people behind the watches were so interesting, dedicated and personable; it is
gratifying to now consider that my 2 Langes were also crafted by a company whose
management has great substance beyond the concern for turning a profit.
Thank
you for your eloquent testimonial.
Regards,
Steve Gurevitz
