Consultant blames structural causes for Zenith's difficulties, with around 100 jobs at risk in Le Locle
Zenith's difficulties are mainly structural and cannot be explained by the slowdown in Swiss watchmaking alone, Oliver R. Müller, founder of the consultancy LuxeConsult, argued in an interview with the Swiss radio stations RFJ and RTN published on 4 November.
Zenith, part of the LVMH group, opened a staff consultation on 22 October as part of a strategic repositioning project, as the Radar reported on 23 October. Around 100 of the nearly 200 jobs at the Le Locle manufacture are affected, along with around 100 abroad. The brand plans to reduce volumes and focus on very high-end watchmaking.
Müller acknowledges the weight of the strong franc, customs duties and slowing markets, but says these factors do not explain the scale of the problems. "The main reason for Zenith's difficulties today is structural," he said. The consultant points to the five chief executives who have led the brand in the 27 years since LVMH bought it in 1999, with changes of strategy and pricing that, in his view, have blurred the manufacture's identity. By his estimates, Zenith's sales have fallen by about 30% in two years, against about 5% for the Swiss watch market as a whole.
According to Müller, collectors still admire the history of Zenith, founded in Le Locle in 1865, and the El Primero movement, but few have bought a recent model in the past five years. "People fantasise about a brand they no longer buy," he summed up. Even so, the consultant does not consider the brand doomed: its heritage, mechanical movements and watchmaking credibility remain solid foundations.
Find out more on RFJ's website.
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