February 4, 2025 • 63 mins
Discover the captivating world of Junghans watches with Olivier Zaugg, the president of Junghans USA. Join us as he shares the compelling story of Junghans’ journey from its inception in 1861 to its ambitious expansion into the North American market. Through engaging conversations, Olivier unveils the unique challenges and strategic decisions involved in establishing the brand's own subsidiary, highlighting its commitment to blending heritage with modernity. We promise listeners a deeper understanding of how Junghans stays true to its roots while innovating with timepieces like the cherished Max Bill and limited production models.
Explore the intricate craftsmanship and German engineering that set Junghans watches apart, with a special focus on the brand's efforts to establish its presence in America. Despite facing challenges in brand recognition outside of Germany, Junghans maintains a competitive edge within local German communities. Listen as we delve into consumer trends, including the demand for varied watch sizes and the rise of eco-friendly technologies, such as solar-powered materials. You'll learn how Junghans is adapting its strategies to align with the evolving preferences of the American market, marrying traditional designs with technological advances.
Experience Junghans’ vision for a sustainable future, from the historic Terrassenbau building designed for energy efficiency to innovations in radio-controlled and solar-powered watches. Olivier shares insights into the brand’s latest product developments and its plans for global expansion. We discuss the importance of building strong relationships with retailers and consumers, while highlighting Junghans' efforts to provide education and service that reflect its unique story. Tune in to explore the brand's ongoing journey and the exciting road ahead as it seeks to balance timeless design with modern demands, appealing to watch enthusiasts and collectors alike.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Blake Rea (00:01):
Hello everybody, welcome to another episode of
Lonely Wrist Sitting.
In front of us today is thepresident of Young Hans, usa,
oliver.
Welcome, buddy.
Olivier Zaugg (00:17):
Thank you, rick, and nice to meet you guys.
Blake Rea (00:21):
I actually think I met you already.
You were in San Francisco forwind up, were you not?
Olivier Zaugg (00:29):
Yes, I was in San Francisco for.
So for us, wind up exhibitionsare a key element of our
communication or marketingcampaigns to to really
communicate with the consumers,not with the retailers, but
really with the consumers.
So, yeah, definitely, we do thethree windupsups every year.
Blake Rea (00:45):
Yeah, yeah, because I I remember, um, I was so
excited to see you guys thereand then I was walking around
and then, uh, I think that waswhen I actually met your
daughter for the first time,because she works with you guys
and uh, and she said we, we justtook over uh, like I guess it
was the, the North Americanrights, is that?
(01:06):
Do I understand that correctly?
Olivier Zaugg (01:08):
Yeah.
So what happened exactly isthat on December 31st of last
year so 2023, junghans ownersdecided to stop the distribution
contract with the formerdistributor for the North
American market.
So when we met in San Francisco, we're in the process of
starting a subsidiary forJunghans, so incorporated in the
(01:31):
US and in charge of US, canada,caribbean and Latin America.
So we're really in the middleof setting up everything and we
officially opened a subsidiary1st of June 2024.
So it's only a few months thatwe're in activity as a real
(01:53):
subsidiary, 100% owned byJunghans Germany and, like you
said, I'm the president of thecompany, so I report directly to
the owner in Schramberg,germany report directly to the
owner in Schramberg, germany.
Blake Rea (02:09):
Wow, so it just had to do with the contract.
Is that right, that Junghans?
Olivier Zaugg (02:17):
just decided to change directions in the United
States.
Yeah, it has been discussed fora few months about how to
continue to develop the Junghansbusiness in the America, which
is really a key market, apriority market for Junghans,
and I don't know all the details, but for some reasons the owner
(02:39):
of Junghans and the distributorwere not really able to find a
common ground and they commonlydecided to end the collaboration
.
So it ended in a nice way.
I have to say it's nothing badhappened.
It's just that both sides had adifferent view on how to
(02:59):
continue to develop the businessand bring Junghans to the next
level in the America.
Blake Rea (03:06):
basically, and you came from Maurice Lacroix.
Is that where you were before?
Olivier Zaugg (03:13):
Yes, so actually I was working for the
distributor, so namely DKSH, andDKSH, as you know, distributed
in North America Maurice Lacroixand was distributing Junghans.
So I have been with Junghansand Maurice Lacroix for several
years before switching to my newrole as president of the brand
(03:36):
for the US.
Blake Rea (03:39):
Amazing, that's really cool.
Yeah, I think Junghans is abrand that me and justin hold
really close to heart.
Uh, I'm wearing.
Okay, I can see that I can seethat we, we consciously decided
to get our best buddy watches asyoung hans, young hans watches.
(04:00):
Sorry so, um, and yeah so.
So justin got me into like justthe whole bow house design and
he turned me on to that wholedesign language.
Um, and so happily, an owner ofthe max bill you've got
multiple, though don't you blake.
(04:21):
Yes, I do I have uh, I have themax bill um with the arabics and
the date and then they did likeum an anthracite dial, was it?
anthracite and then, um, it hasthese like uh markers around the
edge that just they glow, theylook like mirrors, um, and for
(04:45):
whatever reason, um, when I,when, I, when, when justin got
his watch, he pointed it out,like this young hans like is
super special and uh, Ioverlooked it because I, I'm,
you know, to meetstereotypically young hans.
You know, you guys have whitedials, you know beautiful white
dials, and uh, and so he wasfascinated with that and so,
(05:07):
after I, I bought a form a, Ireturned it and then I got the
max bill in that anthracite dialand, uh, I've only seen one
person write about it like itwas.
Justin Summers (05:20):
I guess they did it for a really small
production time yeah, it was wasa limited release and they
don't even make them anymore.
Blake Rea (05:26):
And only one news outlet decided to write about it
and I can only find like twopictures on the internet, so
really it feels very special itis a special product.
Olivier Zaugg (05:37):
Yeah, definitely yeah.
Blake Rea (05:40):
So let's start off with the story of Young Hans.
You know, obviously Young Hansgoes back quite a bit, 1861.
You guys are older than Rolex.
Yes, I do too, and you guyshave a unique challenge.
(06:05):
So how would you feel?
Bump Young Han's balance is,you know, honoring the heritage
and staying relevant in today'swatch market.
Olivier Zaugg (06:19):
I think it's nicely illustrated with our
motto, which is yesterday, today, tomorrow.
So, as you say, it's a verylong established company.
So the company was founded in1861 in Schramberg, germany, and
not in Glashutte where you haveall the major German watch
(06:40):
brands, but in a small towncalled Schramberg, really in the
Black Forest, and actually thecompany started by producing
clocks and not watches, soproducing wall clocks, table
clocks, and by 1903, the companywas the biggest clock producer
(07:01):
in the world, producing morethan 3 million clocks a year,
which is like 9,000 a day, whichis completely insane in terms
of production.
So I would say that after beingvery successful with the clocks
, we continue to produce clocks,but it's no longer our main
business.
So quite quickly the companystarted to switch, producing
(07:27):
watches, and actually we didn'tstart with the Maxville or the
Bauhaus design, but we startedwith our historical line called
Meister.
So that's really what startedto push Junghans in the field of
producing watches, to pushJunghans in the field of
producing watches and evenproducing watches for pilots,
(07:47):
like the Meister Pilot line thatwe have now and we have been
producing for decades.
So I would say that Junghansreally started to capitalize on
the know-how and the capacity tolaunch and increase production
to big numbers due to theexperience with the clock
(08:08):
production and quickly turnedinto the watch, let's say
production side of the businessand we never stopped.
So every year we continue toinnovate and of course we have
to take into consideration ourtwo different, let's say,
(08:29):
elements.
You were talking about the formand the max bill.
So we have really watches moreinto the design field, but, like
I said, we have also pilotwatches and some Meister watches
which have a very long eyestory and which are more the
traditional side of thewatchmaking industry.
(08:50):
So we have to balance these twoelements and we try to to
conduct the development and andcontinuing to develop the brands
on both sides and not focusonly on the design side, namely
Max Bill or Bauhaus or the form.
But we continue to expand theMeister line and we also from
(09:12):
time to time bring to the marketreinterpretation of some iconic
watches like the 1972 line orthis kind of products.
Blake Rea (09:31):
Yeah, yeah, 72 line or this kind of of products.
Yeah, yeah, I mean um, you havea really strong portfolio.
Uh, I I feel you guys are kindof checking all the boxes.
Um, predominantly, you guys arejust known for the max bill.
I mean, I think that was yourmaybe your home run for at least
the american market.
I can speak from um, but youknow how, how has bow house
(09:54):
design kind of uh like, how isit central to young hans?
And how, how do you guysinnovate in design while staying
true to this minimalisticapproach?
Olivier Zaugg (10:08):
Yeah, I get you.
So of course, with the MaxBuild design in the Bauhaus, of
course we have to stay withinsome codes, if I can say like
that.
We cannot completely modify thedesign.
You know it's a design from the60s, so it's a timeless design.
You know it's a design from the60s, so it's a timeless design.
So we actually every year makethe line bigger or expand the
(10:32):
product offering by playing notonly with colors but also with
materials, with the sizes, butalso the technology.
So one good example is the MaxBuild line.
We have it as normal automatic,like three-hands date or
without date, as a chronograph.
Now we have the regulator, butwe have also the quartz and we
(11:00):
have also the mega solar, whichis radio controlled.
So that's what mega means andthe solar means, of course, the
solar powered.
So that's what mega means andthe solar means, of course, the
solar powered.
So we, I would say we havedifferent avenues where we can
continue to develop such atimeless design like the Max,
bill or Bauhaus design.
But of course we have to staywithin some codes.
We cannot, let's say, getcompletely crazy and reinvent
(11:28):
completely this design.
Justin Summers (11:29):
So it's a timeless design.
It's.
It's timeless for a reasonbecause it's a breath of fresh
air for a lot of people.
Um, while we're kind of on thatsame subject, uh, how do you
explain the appeal of theBauhaus inspired watches to you
know, people, customers, thatare unfamiliar with design
philosophy in general?
Like, how do you explain theappeal of that?
Olivier Zaugg (11:49):
so I think the first element it's it's watches
that's very easy to read, veryeasy to operate, so it's really
according to the principle whichis form follow function and not
the, and actually it's alsoless is more.
So we really put the minimum,let's say, design aspect on the
(12:13):
watch, or elements on the dialor on the case, to make them
very easy to read, very easy tooperate, timeless of course, and
also being dressy, so you canwear such kind of watches on
every occasion.
It goes very well with a suit,but you can also wear it with
more sporty attire, you can wearthem on the weekend with the
(12:36):
jeans.
It's something that is reallyvery polyvalent, very simple,
very high quality.
It's German-made, so I thinkGerman engineering is highly
recognized in the world.
I can say like that I'm Swiss,so for me that's not a problem
to say that.
But I think people arereassured when they see a
(13:00):
Junghans watch and not only aMax Bill watch, that it's
well-crafted, well-developed,it's something that will last,
it's very good quality and,again, you can really use these
watches on every occasion.
So which, for us it's a keycompetitive advantage because it
(13:22):
opens up different, let's say,customer bases that that would
be more difficult to target witha more traditional watch.
Blake Rea (13:30):
Let's say like that yeah, no, definitely, I
completely agree I I've knownyoung hans to be like an
enthusiast brand and uh, and Iwould say here in america, you
know, with the surge of microbrands, young Hans really gets
along really well in thatsandbox.
(13:53):
But what challenges do youthink Young Hans faces here in
America versus other marketslike Germany, europe or other
places where people might bemore familiar with the brand due
to the heritage that kind oflives in those regions?
Olivier Zaugg (14:13):
Yeah, of course, and I think it's a little bit
general to a lot of brands.
But in the America, of course,brand awareness is something
very important and of course,we're a little bit far away from
Germany.
So for us, I would say, thebiggest challenge is to continue
to spread the words aboutJunghans and get more and more
(14:34):
people to know about the historyof Junghans not only the
product but the complete history, everything that happened with
the brands, and where we aregoing, where we are eating with
our new products.
So it's really, I would say,general, it's really on the
brand awareness side.
Now I have to say that inAmerica there are some very
(14:59):
large German communities, andwhen I say German, it's not
purely German people.
It can be people from Austriaor even from the Swiss German
part of Switzerland.
So we really know very wellabout Junghans and we are very
proud to buy a product here inNorth America which reminds them
(15:21):
Europe and especially Germanyand the German engineering.
So on one side, we have ofcourse to, let's say, to
continue to create brandawareness, but we have some key
competitive advantages when itcomes to people already knowing
the brand, even if they arebased in North America.
(15:43):
I very often meet with peopleduring the brand, even if they
are based in North America.
I very often meet with peopledoing the exhibition, trend show
or interviews, and very often Iget the same story People went
on holidays in Europe Germany,switzerland, austria, france or
a lot of American people didtheir military training in
Germany.
So a lot of people know thename already of the brand, but
(16:08):
it does not mean that they arestill up to date about our
product offering and what we aredoing.
So that's why we're reallytrying now to communicate more
and more and target, let's say,american people needs in terms
of brand image, brand story andand really spreading the words.
(16:29):
Like I say, it's, it's reallyour biggest task at the moment.
Justin Summers (16:33):
I kind of like to refer to you guys as like the
best kept secret of the watchindustry.
Like I can go around and I cansee people's personal
collections and as soon as I seea Junghans I'm like okay, like
you know what you're doing, likeyou know good design, you know
philosophy.
Like I just feel like a lot ofcollectors, uh you know, kind of
(16:53):
unanimously celebrate you guys.
Um, are there any specificconsumer trends, uh, in the
america specifically, thatinfluence your strategies for
young huns?
Olivier Zaugg (17:06):
yeah, of course, one one big trend, and again
it's generally it's not only foryoung guns, but it's really
related to the size of thewatches.
So every year we go with thedifferent trends watches.
People want bigger watches andthey want smaller watches, and
for for years our best sellerhas always been the 38
(17:27):
millimeter automatic, which istypically what Blake has on his
wrist.
And so we're getting themessage from North American
customers that they wanted tohave a Maxville automatic, but
in a bigger case so, and theydidn't want it to invest in a
chronograph because thechronograph is bigger.
So we have been discussing foryears about maybe coming to the
(17:51):
market with a like a 40millimeter automatic and if I
see the trends nowadays, peopleare actually asking for smaller
watches now.
So we have really to deal withthis size effect.
But on the other side, itwasn't really a big issue for us
and I think we are right In thetarget at the moment with the
(18:15):
38, with the 34, we justlaunched is 3mm also.
So I think we are good on thatside and we still offer bigger
watches, like the Chrono or theRegulator or, of course, pilot
watches, which are way bigger.
So I think size is one element.
The second element is, I wouldsay I would not say that we are
(18:41):
focusing on being very sociallyand ecologically friendly
company, but we started to useeco-friendly material,
especially on the straps.
That's definitely something thatour customer base has been
asking more and more.
So we are now really presentand trying to meet with one of
(19:05):
these trends.
Now there is a trend which ismore on the technology side,
especially for the solar-poweredwatches, and for us that's
something very nice to see,since now more than one year our
solar-powered watches arehaving a tremendous success, and
(19:28):
not only the Maxbill but alsothe Meister, even the more,
let's say, modern watches likethe Force.
So it has been a big demand, abig, it's a big trend towards
the solar-powered watches and Ihave to say that we're right in
the target with this.
(19:48):
We have some of them which evenincludes radio control
functionality and getsynchronized with an emitter in
Denver, colorado or the Americas.
So we have also sometechnological, let's say,
elements to put on the table,but definitely size and the
(20:10):
solar power on the technologyside has been big for us.
Blake Rea (20:16):
I've also noticed you guys are having a lot of fun
with color.
You know, color is somethingthat generally you're starting
to see kind of, I guess, fosterin the americas or people having
fun with these yellows andpinks and greens and uh, and you
guys are totally, totallyembracing that in the 1972
(20:39):
collection, which I mean is justamazing.
You know, you see, you got youmore traditional European brands
starting to kind of work withus here in terms of color.
You know, yeah.
Olivier Zaugg (20:54):
So far as that, I will not say that's completely
new, but we have been since lastyear pushing more and more with
colors, like you said, the 1972being the best example with the
yellow edition, the pinkedition, and now we are also
doing a lot of things on theform side, on the force, also
(21:19):
doing a lot of things on theform side, on the force.
So definitely colors are playingmore and more an important role
.
At Junghans we are no longerknown as offering super nice
white or silver white dials oreven black dials, but really
colors and something veryimportant.
Important since we use standardsize straps, so and regular,
(21:45):
let's say, spring bars, so it'svery easy to to personalize a
young guns watch.
So we offer also several colorsfor each watch.
So even if the watch comes witha yellow strap, you can
basically have the choice inbetween seven to eight other
colors or even material.
(22:05):
So that's something important.
Yeah, definitely colors plays abig role and you can expect
some very nice product beingannounced in February during
InnoGenta in Munich, productbeing announced in february
during inorganta in munich,which is where we launch 60 to
70 percent of our novelties.
So you can expect some nicecolors, let's say, coming into
(22:31):
into america oh, a teaser.
Blake Rea (22:34):
I like it you hear it here, you heard it here first
guys, uh, no, no, I, in alljokes aside um, I, I love, uh, I
love the collection, I love thebrand, um, and I'm glad to to
see it fall into good hands, uh,with you and and your family.
Uh, I'm curious if maybe youcould kind of share some of the
(22:57):
insights you know into thebrand's approach to, to
innovation, uh, and, and notonly that too, but you guys are
very technical watchmakers umand not a lot of people really.
uh know you guys as a technicalwatchmaker, so if you could kind
of debate that right, letpeople know why you guys are so
(23:22):
talented at what you do.
Olivier Zaugg (23:24):
I think it's on one side.
It's due to the fact thatJunghans is really located in
the Black Forest, in an areawhere there is a lot of
industrial companies Notwatchmaking companies, but
industrial companies sotechnology, industrial
innovations are very big whereJunghans is located.
(23:51):
So it has been seen over theyears, over the history of
Junghans In the 90s we startedwith the mega technology and the
solar power and we're one ofthe first companies to enter
into this field.
So it means that at Junghans wehave a complete team not only of
designers, but really wedeveloped our watches from A to
(24:15):
Z in Schramberg and we are luckyenough to have a very nice
network of companies around inSchramberg, even companies
producing dials.
So it's really a very nice placeto be for watchmaking brands,
(24:36):
especially if you are not inGlashütte, and it means that we
have access to, let's say, verygood people, very experienced
people in the field of design,research and development,
prototyping, but also production, because we produce in between
30,000 to 40,000 watches a yearin Schramberg.
(24:58):
So it's not a giant productionlike the big groups, but it
starts to be quite a big amountof watches to produce, and not
only produce but ensure a veryhigh quality level, which is our
priority number one.
So we don't want to grow andinnovate in every direction,
(25:22):
increase too much the productionand not master our quality.
We want to continue to bereally a very reliable product,
a product that people can buyand be very happy for the years
to come people can buy and bevery happy for the years to come
.
Justin Summers (25:41):
I love that and I'm going to make the perfect
segue here.
So you speaking on to like theproduction.
I know that we had kind ofmentioned this before with the
sustainability of the company,but what role does
sustainability play in YoungHans' production and what are
the future plans for thatsustainability with the company?
Olivier Zaugg (26:00):
So everything starts with a building.
At Junghans, as you know, wehave the so-called Terrassenbau
building, which is an iconicbuilding.
It's a building which isprotected, so we cannot modify
it.
We have to keep it as it is.
And this building was actuallydeveloped with the idea to get
(26:22):
way more natural light cominginto the watchmaking area
compared to a traditional, let'ssay, rectangular or square
building.
So the idea was not only tosave on the energy, was not only
to save on the energy, but tobring very good quality light
and being able to produce morein the same, let's say,
(26:44):
footprint, instead of justgrowing and adding just square
meter or square foot to producemore and more.
So sustainability when it comesto managing the energy we use
to produce our watches is veryimportant, and nowadays you can
still see the Terrassenbaubuilding as it was.
(27:05):
You can visit also theTerrassenbau Museum, which is
located in the same building,where we explain all these
different, let's say, phasesduring the history of Junghans.
And, like I said, we nowconsider more and more to use
eco-friendly material and toreally I would say yeah, we try
(27:32):
really to do everything the bestwe can with impacting as less
as possible our environment,let's say like that, and it's
very german oriented too.
Every time we do something, wewant to try to optimize and do
it better the next time.
You know so kind of elements.
(27:53):
Sometimes it's just being alittle bit stubborn, but uh,
it's.
Uh, it's the way it is.
Justin Summers (27:59):
So really making things the best we can is
really what we are looking atevery day that's a philosophy
that I feel like every everybodyin germany has to follow is
just taking something andperfecting the crap out of it I
think I think even the swiss gotthat, you guys, where they take
this whole concept of theperfect, perfect, perfect,
(28:23):
detail-oriented, heavy inmanufacturing, and I think
that's the German DNA from theSwiss people.
Blake Rea (28:33):
Exactly, yeah, I think that's exactly what it is
and the manufacturer I meanobviously, like I've seen
pictures and it is absolutelystunning the way that it's
layered um, uh and uh, and I'mgonna have to annoy you to get
(28:55):
an actual tour of themanufacturer for our YouTube
channel Anytime anytime.
Olivier Zaugg (29:04):
So we organize and that's something we started
really in 2024.
We started to invite our keyretailers and key customer to
have a private visit of themanufacturer in Schramberg.
Of course, a private visit ofthe museum in Schramberg.
Of course, a private visit ofthe museum, the watch museum,
which is open to the public.
But our VIP customer gets alsoan additional visit to the
(29:30):
internal museum where we keep,or we try to keep, one piece of
every collection produced sincethe start of Junghans.
So it's absolutely amazing.
You can see absolutely everykind of Junghans watches
produced from the very beginning.
(29:50):
So it's really stunning.
And then we of course dosomething very special.
And then we of course dosomething very special.
Junghans' founder actually wereliving in a castle in the city
of Schramberg, and this castleis on the other side of the
valley, you know.
And he was able to look at whatwas happening at the
(30:14):
manufacture from the castle.
So when we realized too, we andthat's new the Stein family
took back the ownership of theJunghans castle and they turned
it into the place where we hostour guests and where we have
company meetings and such kindof things.
So it's really, let's say, kindof a unique setting.
(30:39):
So environment and everythingis really linked about the eye
story of Junghans.
It's absolutely out of thisworld.
I have seen a lot of watchmuseums.
I'm Swiss, I was born in LaChaux-de-Fonds, so I know a
little bit about watchmaking,but the Junghans part of it is
(31:00):
really, really interesting.
So feel free to come anytime.
We will organize you a verynice tour.
We'll, of course we'll be ourguest.
Amazing.
We do a first tour in Februaryduring InnoGenta, because
InnoGenta in Munich for us isvery important.
We are a German brand,innogenta is the biggest watch
(31:23):
and jewelry fair in Germany andit's very convenient for all our
European distributors to attendmeetings there.
So we organize already a bigtour during the InnoGenta, let's
say, period the year.
But I travel almost everyquarter to Schramberg to
organize visits and of coursepart of the visit is a very nice
(31:45):
discussion with Jungan's owner,the Stein family, namely Hannes
Stein, who is the CEO of thecompany.
So you really get the completepackage when you come to
Schramberg.
Blake Rea (31:59):
We'll be there tomorrow, no problem.
Olivier Zaugg (32:02):
Let me know the time.
Blake Rea (32:06):
Can we expect anything?
I mean, you kind of teased alittle bit already about
February and kind of dangled alittle carrot for us, but can we
expect anything new in terms ofcomplications, product lines or
anything specifically tailoredto us Americans here on our side
(32:29):
of the pond On?
Olivier Zaugg (32:30):
the complications ?
Not really, because we justlaunched a few months ago the
regulator both on the Bauhausline, because we just launched a
few months ago the regulatorboth on the Bauhaus line or on
the traditional Maxbill line.
So for us that was a bigachievement because the
regulator is now available in a40 millimeter case.
(32:51):
In the past we used to have aregulator but in the 38
millimeter case, so for us ithas been, let's say, interesting
to revisit the regulator andoffer it in a bigger case.
So there is something happeningon the technology side,
especially with the radiocontrolled and solar powered
(33:11):
watches, especially on thefourth line, which is watches
she's first made with a ceramiccase, even with a ceramic
bracelet or rubber bracelet, sowhere the technology is being
upgraded to be more and more,let's say, more performant or
(33:32):
more easy to use, but stillbased on this very old
technology of radio control andemitters based in different
places of the world.
So, on the technologies thatwill be on the force now, it
will be really mainly on colors,sizes, and we are coming with
(33:55):
something unique for the USmarket.
So we'll have watches whichunique for the US market, so
we'll have watches which will bea USA limited edition limited
to 50 pieces, only for the USmarket.
Blake Rea (34:07):
Wow, that's awesome.
Justin Summers (34:12):
What trends in the watch industry excite you
the most and how is Junghans'position?
Olivier Zaugg (34:22):
to respond to those trends.
Yeah, to me, obviously, it's aminimalistic design.
I like really clean and neatdesign.
I asked I know I don't likewhat she's having too many
things from the dials where theystart to be difficult or
sometimes even impossible toread easily.
So minimalistic design for meis really the biggest driver.
(34:48):
Of course, the price point.
For us, it's very important tostay in a price point where
people can buy our watches.
We, of course, we have a fewmodels which are with higher
price points.
We even have a unique editionmade completely out of gold
(35:12):
white gold, yellow gold, rosegold or even platinum with a
platinum bracelet, but it'sreally the exception.
So, you know, we have a fewproducts which are very, very
expensive, but we want to stayin these 450 to less than 3,000
price mark and automatics around1,500, which is really a very
(35:33):
good price point, especially forthe quality we offer.
And so for me, the price point,of course, is really something
that I'm very focusing, toreally keep a strong focus and
not try to go too high.
I think it's not worth it totry it.
(35:54):
And of course, there is a trendwith all these revivals, you
know.
So you will see something, butit will be only for Europe.
In the 90s we used to be verypopular with a watch called the
Mega Mill or Mega One and we areworking on something on that
(36:15):
side.
But it's going to be for youbecause the quantities will be
extremely limited and it makesno sense to, let's say, to put
everything in place in terms ofimport and licenses for some
very specific models if it'sreally small quantities.
(36:37):
But you can expect something onthe revival side, but it will
be mostly for Europe.
Blake Rea (36:46):
I'm also curious as to how do you feel YoungHans is
different in a competitivemarket where you're starting to
see brands that are popping uppretty much overnight that are
essentially taking the Bauhausdesign uh and and and shifting
(37:07):
it forward into the marketplace.
You know they're coming in atmore aggressive price points.
Um, they're taking designlanguage that you know you guys
have been doing for 160 years,and so how do you feel Yonghan
stays competitive, you know,despite that, I think we stay
(37:32):
competitive by offering entryprice point products, now with a
very minimalistic design.
Olivier Zaugg (37:40):
So we don't try just to reduce the price of our
watches, but we come with acomplete line of watches with a
minimalistic design which are ina even more affordable, let's
say, price point.
So that's one of our way totackle this.
On the other side, we are inthe market since, like you said,
(38:03):
since 160 years, so since avery long time, and we are
really known for that.
So there is really a lot ofpeople who associate Junghans
with Bauhaus, with Max Bill andespecially people in the field
of the design, like builders,architects, designers.
(38:24):
Of course, for them, theBauhaus is something key.
They have been going, they havebeen studying this during their
, let's say, when they wereattending school or high school
or university.
So for them that's somethingvery important, very unique, and
the name of Junghans is veryclosely associated to that,
(38:47):
which might be a little bit moredifficult for newcomers.
But on the other side, there isalso a trend of a lot of new
watch brands, like you said,popping up almost every day, and
even to me, like I go to windup every time, I find new brands
and they just start and I thinkit's interesting.
(39:12):
It's definitely interesting.
I think it's challenging alsofor a lot of brands to start now
because, yeah, you need tostart now because you need to be
different, you need to beinnovative, you need to find
your customers.
So it's not so easy, but it'sinteresting.
And on the other side, it's achallenge, so it pushes us to
continue to improve and getbetter and better.
(39:33):
So, for me, competition is good.
It's not something that I'mafraid of.
It's something that I actuallyenjoy because it helps us to
improve.
Justin Summers (39:43):
It pushes you to be better in every aspect that
you can.
Healthy competition Nothingwrong with that, yep.
I'm curious, oliver, what drewyou to become a part of Junghans
and how has your leadershipshaped the brand's direction,
(40:03):
especially, you know, within theAmericas?
Olivier Zaugg (40:06):
Yeah.
So I actually joined Junghans Iwould not say by accident, it
was for Maurice Lacroix.
And when I went to theinterview I even didn't know
that they were distributingJunghans, because in my former
(40:26):
career I was always, let's say,in the watch industry, but I was
first with Frédéric ConstantAlpina and then Maurice Lacroix,
so Junghans is not really acompetitor, so I never really
paid too much attention toJungans.
So during the interview thepeople at the distribution
company started to talk to methat I will have to manage two
(40:49):
brands, so Maurice Lacroix,obviously, and Jungans.
So it was a little bit of aneye-opener and I really started
to do my research and reallystart to pay close attention to
the brand.
And actually the brand has beenreally well-received in America
.
So it became to me veryinteresting and very different
(41:09):
than a brand like MauriceLacroix or Félix Constant or
Raymond Bell, which are more,let's say, similar in a way in
terms of design, in terms ofproduct offering.
So to me it became very, veryinteresting.
So another very special placein my, let's say, in my
(41:29):
environment.
And after a few years, whendiscussion started to create a
subsidiary and really have thebrand present in the market and
not through a distributioncompany.
I was like a natural choice.
You know, I was knowingeverybody at Junghans since
years.
I have a very good relationshipwith the owner, so it was quite
(41:52):
natural that we start tocollaborate on that.
So, and again, junghans has avery special place in my, in my
earth.
I really even I'm Swiss.
A lot of my friends are tellingme a Swiss guy is selling and
pushing a German brand and I sayyou know, swiss guys want to do
very nice watches.
(42:13):
So I am.
To me it's, it's veryinteresting and it was like a
natural change and I'm veryhappy with that.
Blake Rea (42:20):
So yeah, I think I have to ask and this is always
the hardest question that I ask,you know, during the whole
podcast.
So feel free to opt out if youdon't feel like you can answer.
But it's like having a favoritechild.
You know what would you say isyour favorite model or
(42:43):
collection from Junghans?
Olivier Zaugg (42:47):
So, actually, when I started to sell Junghans
watches, I had to pick a watchto put on my wrist like a, you
know, a wear watch.
And I love planes, I lovevintage planes.
So I selected the Meister Pilot.
(43:08):
Okay, it's the original one,really, it's the first one we
did.
Okay, and I've been wearingthis watch for four years in a
row.
I was very happy with that, so,and I still wear it.
So the Pilot to me is a specialwatch, but it's also, I would
(43:28):
say, more due to the design, tothe size.
I love big watches, obviously.
I love a chronograph, I lovebig numerals, something very
easy to read and a little bitvintage at the same time.
So I would say the MeisterPilot to me was the natural
(43:49):
choice.
Now, if I have to go more onthe Meister or Max Bill side, to
me it's the Bauhaus regulator.
So I love regulator.
They have a very special, let'ssay, appeal to me in terms of
technology, the way the movementis built, and I love actually
(44:11):
the Bauhaus case back where youcan see the movement is built,
and I love actually the Bauhauscase back where you can see the
movement and the Bauhaus logo,the Bauhaus accent, the red
accent and so on.
The way the case is finishedmatte polished.
This watch to me is really myday to day wear watch.
Justin Summers (44:30):
I love the regulator.
Regulator is sweet to me.
They are special day-to-daywear watch.
I love the regulator regularsuite.
So how do you uh personallydefine success for young hans uh
, specifically in the americas,because we know it's your market
.
But how do you define thatsuccess?
Olivier Zaugg (44:50):
Yeah, it's a good question because for us,
success is, of course, tocontinue to grow, but we want to
grow in a controlled way.
We are not looking to grow atall costs and in a short term
period of time.
We want to be in the market forthe next 100 years.
So everything we do, we try todo it in a logical way and in a
(45:15):
sustainable way, so then we cancontinue to build on that OK.
So, and one key element for meis a customer satisfaction
Because at the end of the day,as brand, ok, we can do nice
advertising marketing, we cantell nice stories.
We can tell nice stories, wecan build nice product.
At the end of the day, thisproduct must be on the wrist of
(45:38):
someone and this person mustenjoy that watch.
And to me, I love to have closerelationship with the watch
collectors.
I do a lot of events with theprivate watch collectors,
presenting the brand, discussingwith them, getting feedbacks
and, of course, with a retailer.
So I travel a lot.
I spend about 75% of my timetraveling in the continent
(46:04):
because I want to meet with aretailer.
I want to have discussions.
I don't want to sell productjust by offering by email and
then getting an order andshipping products.
So building relationship, beingpresent, getting feedback, even
when it's when something waswrong.
It always happened, it's allhumans, but the way to solve the
(46:24):
issue is key for me.
So if, at the end of the year,my retailers are happy and the
feedback I get from the endconsumers is very positive, to
me it means that the year wassuccessful.
And, of course, if we continueto grow and if we continue to be
able to develop new productsand bring new technology to the
(46:45):
market, that's fine, but that'snot the biggest element for me.
So customer satisfaction andhaving very good relationship
with both with a professionaland the customers.
Blake Rea (46:58):
Yeah, I've noticed, at least in my market.
You know we don't have a youngHans dealer.
We did, and I think they havefailed you miserably because, uh
(47:18):
, they didn't have their product, your product, even on their
website like I I could.
I didn't even know that youwere being retailed there and
they do a terrible job at atadvertising and showcasing your
product, um, and I'm surethere's other dealers out there
that that are doing the same.
(47:39):
You know, your brand is aunique brand.
It has a unique story, it has aunique identity and uh, and I I
definitely see you know nowthat you guys have some more
closer roots to America.
You know, you're here, youunderstand the market.
(48:01):
I think that's not only afailure from the retailers.
But you know, education is whatsells products People being
proud to sell young Hans, peoplehaving a respect for your brand
.
And you know, in my, in my case, when I went to my, my retailer
(48:22):
and they didn't even reallyknow that they sold young Hans,
but they had him, you know, likethey had them in a small little
showcase there in the cornerand I was so frustrated.
I was like, why do you onlyhave these in this corner here?
Like, these are amazing watches.
What are you doing?
Olivier Zaugg (48:39):
That's the biggest challenge in America.
It's, first of all, to workwith the right retailer at the
right location, so then theyhave the right, I would say,
customer base or prospect base.
And second thing, it'seducation, and this is one of
the elements why Junghans wantedto have a subsidiary.
(49:02):
Now it's to show to the marketthat we invest in America by
being present physically andinvesting a lot of money.
So one element that wasdifficult in the past was to
have stock, and, as you know, inAmerica, when a customer goes
to a store or when you call orsend an email, normally people
(49:26):
are not really patient and arenot really willing to wait six,
eight weeks to get the watchthey want it now.
So one of the key elements inthe strategy I implemented this
year was to make sure that wehave everything stocked in the
US so then we can make sure thatwe can provide the goods to the
(49:47):
retailer very quick.
And also we implemented a newwebsite, because the distributor
had a website but obviously,when the distribution contract
stopped, we're not, let's say,able or willing to continue with
this.
So we recreated a completeJunghans website for North
(50:08):
America.
So for a few months people wereobliged to use the German
website, which is not veryconvenient.
It was in English buteverything was in Euro and with
a lot of information aboutEurope.
So here people want to hearabout the US and North America.
So we did build a new website.
(50:28):
We launched it two months ago.
And last thing, I was sayingthat I travel a lot.
Every retailer who is notreally willing to invest and
stock at least the best sellerand advertise properly, update
their webshop, make sure thatthe links are correct, that
everything is okay, the picturesare the original ones, the
(50:51):
prices are correct.
I'm very strict with that.
So there are a few retailerswho I had to decide that they
are not the right choice, so Idecided to close them.
On the other side, we opened alot of new retailers also.
We start fresh.
So I call this like cleaningthe market.
That's a little bit what it is,but it's necessary to continue
(51:14):
to grow.
So in your area I have aproblem.
I know, I definitely know andI'm on it.
I might be able to give you agood news quite soon, but it's
not signed yet.
Blake Rea (51:29):
I cannot discuss.
Well, if there's anything thatI can do from a local
perspective to help bring youknow more awareness to your
amazing brand, I think Justinand I can can speak to this.
I don't even know if I would bea watch collector without a
(51:51):
brand like young Hans um becausethere's something about it, you
know.
It's minimalist, it'sunderstated, it's fun, it's
playful, it can be anything youwant it to be.
And there's.
There's not a lot of watchesout there that exist that have
that type of uh open open sourceis not the right word for it
(52:14):
but it's.
It's universally uh, stylish.
It'll never age, it'll alwayslook good another 160 years down
the road.
Hopefully one of my kids willbe wearing this watch.
Um, and then you know also whatI love about it is it's
serviceable.
You know, you see a lot ofbrands that are pushing for
(52:34):
these in-house calibers becausethey want to own the customer.
They want to own the customerand have a longer customer
acquisition period, which, in myopinion, is not necessarily the
best interest of all of us, as,as collectors, I want to know I
can take my watch to awatchmaker down the street, have
it serviced, have it back on mywrist and not have to worry
(52:57):
about sending it to New York orMiami or Texas for six, seven
months.
It just I don't think that thistrend is a consumer forward
trend.
Yeah, no.
Olivier Zaugg (53:11):
I think service is a key element and actually we
opened a second service center.
We are the only one in Miami.
We opened a second one inLincoln, nebraska, and every
authorized retailer has accessto spare parts and has access to
our, let's say, database.
So every authorized retailercan repair Junghans watches.
(53:34):
And we just started in Canadalast year, so we already opened
a service center also in Canada.
So service is key and we don'thave a lot of movements that
cannot be repaired by, I wouldsay, a watchmaker.
We use ETA movements, elitamovement, some complications
(53:55):
like the body module, so we havea few manufacturer movements.
But that's not where we focus.
That's really having, I wouldsay, a product very well built,
easy to maintain, easy to enjoyand continue to expand the
(54:19):
network.
So if something bad happens, itcan always happen.
It's a watch you never know,especially on the mechanical
watch.
But service must be done veryquick and with a fair price,
also because it's importantwe've got a.
Justin Summers (54:35):
Um, I was gonna say I've got kind of a funny
story in terms of, like, myownership of a young hans.
Uh, my wife went to school forinterior design uh, and so she
of course, had studied Bauhausdesign and a lot of her
teachings.
I come from a photography, youknow videography background and
(54:57):
Bauhaus design has always beenlike very deeply rooted into you
know my surroundings, my designwithin my home.
He's my dog.
Blake Rea (55:09):
Your dog agrees with what you're saying.
That's right.
Justin Summers (55:12):
That's right.
But no, I mean just, you know,kind of going back to it, like
you know blake was reallytalking to like how important
young huns is to us, uh, and youknow, we wouldn't be watch
collectors if it wasn't for thebrand, uh, just because it is so
important to me.
Um, and I love telling peoplethe story.
You know, specifically, I own aMax Bill.
(55:33):
It's a no date and I lovetelling people the story of, you
know, max Bill.
You know, back in the 50s, youknow, used to make the wall
clocks and then turn it into awristwatch, and it's just so
refreshing because there's not alot of brands out there that
have that design philosophyheritage that you guys have, uh,
and it's just really uniqueyeah, yeah, definitely, yeah,
(55:58):
yeah.
Olivier Zaugg (55:58):
And that's what attracted me with young guns
besides, I would say also theway of doing business at young
guns it's it's a family ownedbusiness, as your nerves are
very independent, they want tostay independent and they
operate really like afamily-owned business.
So everybody knows each other,there's a lot of respect within
(56:20):
the organization and everybodyjust protects the business as if
it was his own business.
So it's really interesting.
Decisions are very easy to take, very quick, quickly made, and
it's a very, let's say, niceenvironment that goes very well
(56:42):
with a nice type of design thatwe use on our watches.
So it's a perfect combination.
Justin Summers (56:48):
I agree.
Blake Rea (56:50):
I've got the hardest question for you of the entire
podcast and then we will let yougo because I'm sure you're
super busy and thank you forspending, you know, almost an
hour with us.
Um, but what is the next decadefor young hans look like in
terms of milestones?
(57:10):
What do you hope to accomplishas a leader for the brand?
And the reason why we're askingthat is because we're going to
check back with you and makesure that you're hitting all
those milestones.
Olivier Zaugg (57:23):
Okay, no, but the first element is to continue to
expand.
I mean, in terms ofgeographical locations, we still
have a lot of work in somestates where we have no
retailers at all, so thesestates are a key priority.
(57:44):
So I want at least one retailerin every state.
In some states, of course, wehave several, but that's really
something important.
Like I mentioned, we started inCanada not a long time ago, so
Canada.
Now we are really wellpresented in Vancouver area, so
we want now to develop inToronto and Quebec.
(58:05):
So then we cover the three mainregions in Canada, both with
sales and service.
I have to relaunch the businessin Mexico.
So Mexico used to be quite anice business for Junghans and
then as a distributor, I don'tknow what happened exactly.
I really do now to start totravel and see in the market,
(58:28):
but that's something I have to,let's say, to take over and
reboost completely.
And actually we also started todevelop in the Caribbean.
So again, geographicallocations, expansion, continuing
to improve the quality of ourretailers, education, making
(58:49):
sure that they know how to sellyoung dance product, what makes
young dance unique and different.
For me, that's really the keypriority, and by doing this
properly, the business will justcontinue to grow because it's
we are not since decades in inamerica, so we are still new in
the market in, in a sense, uh,but there is a huge potential
(59:14):
that we haven't been able tocommunicate with so far.
So to me there is a bigpotential, a big opportunity.
So the business will continueto grow, but again, we want to
grow in a very controlled way,step by steps.
Justin Summers (59:29):
I think that'll be good for you guys as well,
because you've been makingwatches for so long.
Up to this point, you alreadyhave these business practices
that you've implemented and kindof perfected over the years.
So now that you're kind ofgetting a fresh start into the
American market that you knowthe past 10, 15, 20 years has
(59:50):
really started to bubble intobloom um, I think it's a good
time to kind of ride that waveand to you know, to show people,
hey, you know exactly who youare as a brand, your philosophy,
uh.
So I think it'll be kind of ayou know a good timed little
thing.
Blake Rea (01:00:07):
Yeah, also every, every ceo needs a map on their
wall, so you can know exactlywhere to target.
Okay.
Olivier Zaugg (01:00:17):
You know, I have, I have the maps, I have the
nice max bill World clock in myoffice.
Blake Rea (01:00:23):
So I want to.
I want to thank you for comingon.
It's been a pleasure to sitdown and have this discussion
with you.
I think you obviously know thatwe're a fan of Young Hans, the
brand.
It means so much to us.
(01:00:44):
I don't even think I'm speakingfor myself anymore, but I'm
thinking the entire micro-brandreally appreciates what you guys
are doing.
Um, I can't wait to see youknow what happens, you know, in
the next couple of years, um,with you guys, I will certainly
(01:01:05):
be, uh, you know, keeping aclose eye on, on things that are
moving and progressing.
And uh, um, and I will be assupportive as I can as a
journalist, a blogger, influence, whatever you want to call me
or watch nerd.
Uh, I think me and Justin can,can certainly say that we, we
(01:01:25):
will be at your disposal in anytype of way.
Olivier Zaugg (01:01:28):
So thank you very guys.
That's really highlyappreciated.
So I'm sure we'll stay in touchand communicate a lot in the
future and, like I said, you areinvited to Schramberg anytime,
so just let me know when it willbe convenient for you and you
will discover Junghans from theinside and really have access to
(01:01:52):
a lot of amazing informationand products.
Blake Rea (01:01:58):
I will work on it, probably maybe this summer.
I definitely need to escape thedesert every once in a while.
So yeah, I think Germany is agood place to do that.
Olivier Zaugg (01:02:13):
Yeah, exactly yeah.
The best period of the year isautumn.
Blake Rea (01:02:18):
Yeah, Thank you so much again.
We are going to link the newYoung Hans website in the
description of this podcast andif you don't have a Young hans
near you, maybe I can say thisplease go to your dealer and beg
(01:02:38):
them to carry the brand, ormaybe oliver will be kind enough
to already be working on thatfor you.
Um, definitely pay attention towhat's going on in 2025 and
beyond and stay up to date anddefinitely check out their
website below and and buy one oftheir watches.
Olivier Zaugg (01:03:00):
Perfect.
Thank you very much.
Thank you.
Justin Summers (01:03:03):
Thank you, oliver, thanks everybody.
Hello everybody, welcome to another episode of
Lonely Wrist Sitting.
In front of us today is thepresident of Young Hans, usa,
oliver.
Welcome, buddy.
Olivier Zaugg (00:17):
Thank you, rick, and nice to meet you guys.
Blake Rea (00:21):
I actually think I met you already.
You were in San Francisco forwind up, were you not?
Olivier Zaugg (00:29):
Yes, I was in San Francisco for.
So for us, wind up exhibitionsare a key element of our
communication or marketingcampaigns to to really
communicate with the consumers,not with the retailers, but
really with the consumers.
So, yeah, definitely, we do thethree windupsups every year.
Blake Rea (00:45):
Yeah, yeah, because I I remember, um, I was so
excited to see you guys thereand then I was walking around
and then, uh, I think that waswhen I actually met your
daughter for the first time,because she works with you guys
and uh, and she said we, we justtook over uh, like I guess it
was the, the North Americanrights, is that?
(01:06):
Do I understand that correctly?
Olivier Zaugg (01:08):
Yeah.
So what happened exactly isthat on December 31st of last
year so 2023, junghans ownersdecided to stop the distribution
contract with the formerdistributor for the North
American market.
So when we met in San Francisco, we're in the process of
starting a subsidiary forJunghans, so incorporated in the
(01:31):
US and in charge of US, canada,caribbean and Latin America.
So we're really in the middleof setting up everything and we
officially opened a subsidiary1st of June 2024.
So it's only a few months thatwe're in activity as a real
(01:53):
subsidiary, 100% owned byJunghans Germany and, like you
said, I'm the president of thecompany, so I report directly to
the owner in Schramberg,germany report directly to the
owner in Schramberg, germany.
Blake Rea (02:09):
Wow, so it just had to do with the contract.
Is that right, that Junghans?
Olivier Zaugg (02:17):
just decided to change directions in the United
States.
Yeah, it has been discussed fora few months about how to
continue to develop the Junghansbusiness in the America, which
is really a key market, apriority market for Junghans,
and I don't know all the details, but for some reasons the owner
(02:39):
of Junghans and the distributorwere not really able to find a
common ground and they commonlydecided to end the collaboration
.
So it ended in a nice way.
I have to say it's nothing badhappened.
It's just that both sides had adifferent view on how to
(02:59):
continue to develop the businessand bring Junghans to the next
level in the America.
Blake Rea (03:06):
basically, and you came from Maurice Lacroix.
Is that where you were before?
Olivier Zaugg (03:13):
Yes, so actually I was working for the
distributor, so namely DKSH, andDKSH, as you know, distributed
in North America Maurice Lacroixand was distributing Junghans.
So I have been with Junghansand Maurice Lacroix for several
years before switching to my newrole as president of the brand
(03:36):
for the US.
Blake Rea (03:39):
Amazing, that's really cool.
Yeah, I think Junghans is abrand that me and justin hold
really close to heart.
Uh, I'm wearing.
Okay, I can see that I can seethat we, we consciously decided
to get our best buddy watches asyoung hans, young hans watches.
(04:00):
Sorry so, um, and yeah so.
So justin got me into like justthe whole bow house design and
he turned me on to that wholedesign language.
Um, and so happily, an owner ofthe max bill you've got
multiple, though don't you blake.
(04:21):
Yes, I do I have uh, I have themax bill um with the arabics and
the date and then they did likeum an anthracite dial, was it?
anthracite and then, um, it hasthese like uh markers around the
edge that just they glow, theylook like mirrors, um, and for
(04:45):
whatever reason, um, when I,when, I, when, when justin got
his watch, he pointed it out,like this young hans like is
super special and uh, Ioverlooked it because I, I'm,
you know, to meetstereotypically young hans.
You know, you guys have whitedials, you know beautiful white
dials, and uh, and so he wasfascinated with that and so,
(05:07):
after I, I bought a form a, Ireturned it and then I got the
max bill in that anthracite dialand, uh, I've only seen one
person write about it like itwas.
Justin Summers (05:20):
I guess they did it for a really small
production time yeah, it was wasa limited release and they
don't even make them anymore.
Blake Rea (05:26):
And only one news outlet decided to write about it
and I can only find like twopictures on the internet, so
really it feels very special itis a special product.
Olivier Zaugg (05:37):
Yeah, definitely yeah.
Blake Rea (05:40):
So let's start off with the story of Young Hans.
You know, obviously Young Hansgoes back quite a bit, 1861.
You guys are older than Rolex.
Yes, I do too, and you guyshave a unique challenge.
(06:05):
So how would you feel?
Bump Young Han's balance is,you know, honoring the heritage
and staying relevant in today'swatch market.
Olivier Zaugg (06:19):
I think it's nicely illustrated with our
motto, which is yesterday, today, tomorrow.
So, as you say, it's a verylong established company.
So the company was founded in1861 in Schramberg, germany, and
not in Glashutte where you haveall the major German watch
(06:40):
brands, but in a small towncalled Schramberg, really in the
Black Forest, and actually thecompany started by producing
clocks and not watches, soproducing wall clocks, table
clocks, and by 1903, the companywas the biggest clock producer
(07:01):
in the world, producing morethan 3 million clocks a year,
which is like 9,000 a day, whichis completely insane in terms
of production.
So I would say that after beingvery successful with the clocks
, we continue to produce clocks,but it's no longer our main
business.
So quite quickly the companystarted to switch, producing
(07:27):
watches, and actually we didn'tstart with the Maxville or the
Bauhaus design, but we startedwith our historical line called
Meister.
So that's really what startedto push Junghans in the field of
producing watches, to pushJunghans in the field of
producing watches and evenproducing watches for pilots,
(07:47):
like the Meister Pilot line thatwe have now and we have been
producing for decades.
So I would say that Junghansreally started to capitalize on
the know-how and the capacity tolaunch and increase production
to big numbers due to theexperience with the clock
(08:08):
production and quickly turnedinto the watch, let's say
production side of the businessand we never stopped.
So every year we continue toinnovate and of course we have
to take into consideration ourtwo different, let's say,
(08:29):
elements.
You were talking about the formand the max bill.
So we have really watches moreinto the design field, but, like
I said, we have also pilotwatches and some Meister watches
which have a very long eyestory and which are more the
traditional side of thewatchmaking industry.
(08:50):
So we have to balance these twoelements and we try to to
conduct the development and andcontinuing to develop the brands
on both sides and not focusonly on the design side, namely
Max Bill or Bauhaus or the form.
But we continue to expand theMeister line and we also from
(09:12):
time to time bring to the marketreinterpretation of some iconic
watches like the 1972 line orthis kind of products.
Blake Rea (09:31):
Yeah, yeah, 72 line or this kind of of products.
Yeah, yeah, I mean um, you havea really strong portfolio.
Uh, I I feel you guys are kindof checking all the boxes.
Um, predominantly, you guys arejust known for the max bill.
I mean, I think that was yourmaybe your home run for at least
the american market.
I can speak from um, but youknow how, how has bow house
(09:54):
design kind of uh like, how isit central to young hans?
And how, how do you guysinnovate in design while staying
true to this minimalisticapproach?
Olivier Zaugg (10:08):
Yeah, I get you.
So of course, with the MaxBuild design in the Bauhaus, of
course we have to stay withinsome codes, if I can say like
that.
We cannot completely modify thedesign.
You know it's a design from the60s, so it's a timeless design.
You know it's a design from the60s, so it's a timeless design.
So we actually every year makethe line bigger or expand the
(10:32):
product offering by playing notonly with colors but also with
materials, with the sizes, butalso the technology.
So one good example is the MaxBuild line.
We have it as normal automatic,like three-hands date or
without date, as a chronograph.
Now we have the regulator, butwe have also the quartz and we
(11:00):
have also the mega solar, whichis radio controlled.
So that's what mega means andthe solar means, of course, the
solar powered.
So that's what mega means andthe solar means, of course, the
solar powered.
So we, I would say we havedifferent avenues where we can
continue to develop such atimeless design like the Max,
bill or Bauhaus design.
But of course we have to staywithin some codes.
We cannot, let's say, getcompletely crazy and reinvent
(11:28):
completely this design.
Justin Summers (11:29):
So it's a timeless design.
It's.
It's timeless for a reasonbecause it's a breath of fresh
air for a lot of people.
Um, while we're kind of on thatsame subject, uh, how do you
explain the appeal of theBauhaus inspired watches to you
know, people, customers, thatare unfamiliar with design
philosophy in general?
Like, how do you explain theappeal of that?
Olivier Zaugg (11:49):
so I think the first element it's it's watches
that's very easy to read, veryeasy to operate, so it's really
according to the principle whichis form follow function and not
the, and actually it's alsoless is more.
So we really put the minimum,let's say, design aspect on the
(12:13):
watch, or elements on the dialor on the case, to make them
very easy to read, very easy tooperate, timeless of course, and
also being dressy, so you canwear such kind of watches on
every occasion.
It goes very well with a suit,but you can also wear it with
more sporty attire, you can wearthem on the weekend with the
(12:36):
jeans.
It's something that is reallyvery polyvalent, very simple,
very high quality.
It's German-made, so I thinkGerman engineering is highly
recognized in the world.
I can say like that I'm Swiss,so for me that's not a problem
to say that.
But I think people arereassured when they see a
(13:00):
Junghans watch and not only aMax Bill watch, that it's
well-crafted, well-developed,it's something that will last,
it's very good quality and,again, you can really use these
watches on every occasion.
So which, for us it's a keycompetitive advantage because it
(13:22):
opens up different, let's say,customer bases that that would
be more difficult to target witha more traditional watch.
Blake Rea (13:30):
Let's say like that yeah, no, definitely, I
completely agree I I've knownyoung hans to be like an
enthusiast brand and uh, and Iwould say here in america, you
know, with the surge of microbrands, young Hans really gets
along really well in thatsandbox.
(13:53):
But what challenges do youthink Young Hans faces here in
America versus other marketslike Germany, europe or other
places where people might bemore familiar with the brand due
to the heritage that kind oflives in those regions?
Olivier Zaugg (14:13):
Yeah, of course, and I think it's a little bit
general to a lot of brands.
But in the America, of course,brand awareness is something
very important and of course,we're a little bit far away from
Germany.
So for us, I would say, thebiggest challenge is to continue
to spread the words aboutJunghans and get more and more
(14:34):
people to know about the historyof Junghans not only the
product but the complete history, everything that happened with
the brands, and where we aregoing, where we are eating with
our new products.
So it's really, I would say,general, it's really on the
brand awareness side.
Now I have to say that inAmerica there are some very
(14:59):
large German communities, andwhen I say German, it's not
purely German people.
It can be people from Austriaor even from the Swiss German
part of Switzerland.
So we really know very wellabout Junghans and we are very
proud to buy a product here inNorth America which reminds them
(15:21):
Europe and especially Germanyand the German engineering.
So on one side, we have ofcourse to, let's say, to
continue to create brandawareness, but we have some key
competitive advantages when itcomes to people already knowing
the brand, even if they arebased in North America.
(15:43):
I very often meet with peopleduring the brand, even if they
are based in North America.
I very often meet with peopledoing the exhibition, trend show
or interviews, and very often Iget the same story People went
on holidays in Europe Germany,switzerland, austria, france or
a lot of American people didtheir military training in
Germany.
So a lot of people know thename already of the brand, but
(16:08):
it does not mean that they arestill up to date about our
product offering and what we aredoing.
So that's why we're reallytrying now to communicate more
and more and target, let's say,american people needs in terms
of brand image, brand story andand really spreading the words.
(16:29):
Like I say, it's, it's reallyour biggest task at the moment.
Justin Summers (16:33):
I kind of like to refer to you guys as like the
best kept secret of the watchindustry.
Like I can go around and I cansee people's personal
collections and as soon as I seea Junghans I'm like okay, like
you know what you're doing, likeyou know good design, you know
philosophy.
Like I just feel like a lot ofcollectors, uh you know, kind of
(16:53):
unanimously celebrate you guys.
Um, are there any specificconsumer trends, uh, in the
america specifically, thatinfluence your strategies for
young huns?
Olivier Zaugg (17:06):
yeah, of course, one one big trend, and again
it's generally it's not only foryoung guns, but it's really
related to the size of thewatches.
So every year we go with thedifferent trends watches.
People want bigger watches andthey want smaller watches, and
for for years our best sellerhas always been the 38
(17:27):
millimeter automatic, which istypically what Blake has on his
wrist.
And so we're getting themessage from North American
customers that they wanted tohave a Maxville automatic, but
in a bigger case so, and theydidn't want it to invest in a
chronograph because thechronograph is bigger.
So we have been discussing foryears about maybe coming to the
(17:51):
market with a like a 40millimeter automatic and if I
see the trends nowadays, peopleare actually asking for smaller
watches now.
So we have really to deal withthis size effect.
But on the other side, itwasn't really a big issue for us
and I think we are right In thetarget at the moment with the
(18:15):
38, with the 34, we justlaunched is 3mm also.
So I think we are good on thatside and we still offer bigger
watches, like the Chrono or theRegulator or, of course, pilot
watches, which are way bigger.
So I think size is one element.
The second element is, I wouldsay I would not say that we are
(18:41):
focusing on being very sociallyand ecologically friendly
company, but we started to useeco-friendly material,
especially on the straps.
That's definitely something thatour customer base has been
asking more and more.
So we are now really presentand trying to meet with one of
(19:05):
these trends.
Now there is a trend which ismore on the technology side,
especially for the solar-poweredwatches, and for us that's
something very nice to see,since now more than one year our
solar-powered watches arehaving a tremendous success, and
(19:28):
not only the Maxbill but alsothe Meister, even the more,
let's say, modern watches likethe Force.
So it has been a big demand, abig, it's a big trend towards
the solar-powered watches and Ihave to say that we're right in
the target with this.
(19:48):
We have some of them which evenincludes radio control
functionality and getsynchronized with an emitter in
Denver, colorado or the Americas.
So we have also sometechnological, let's say,
elements to put on the table,but definitely size and the
(20:10):
solar power on the technologyside has been big for us.
Blake Rea (20:16):
I've also noticed you guys are having a lot of fun
with color.
You know, color is somethingthat generally you're starting
to see kind of, I guess, fosterin the americas or people having
fun with these yellows andpinks and greens and uh, and you
guys are totally, totallyembracing that in the 1972
(20:39):
collection, which I mean is justamazing.
You know, you see, you got youmore traditional European brands
starting to kind of work withus here in terms of color.
You know, yeah.
Olivier Zaugg (20:54):
So far as that, I will not say that's completely
new, but we have been since lastyear pushing more and more with
colors, like you said, the 1972being the best example with the
yellow edition, the pinkedition, and now we are also
doing a lot of things on theform side, on the force, also
(21:19):
doing a lot of things on theform side, on the force.
So definitely colors are playingmore and more an important role
.
At Junghans we are no longerknown as offering super nice
white or silver white dials oreven black dials, but really
colors and something veryimportant.
Important since we use standardsize straps, so and regular,
(21:45):
let's say, spring bars, so it'svery easy to to personalize a
young guns watch.
So we offer also several colorsfor each watch.
So even if the watch comes witha yellow strap, you can
basically have the choice inbetween seven to eight other
colors or even material.
(22:05):
So that's something important.
Yeah, definitely colors plays abig role and you can expect
some very nice product beingannounced in February during
InnoGenta in Munich, productbeing announced in february
during inorganta in munich,which is where we launch 60 to
70 percent of our novelties.
So you can expect some nicecolors, let's say, coming into
(22:31):
into america oh, a teaser.
Blake Rea (22:34):
I like it you hear it here, you heard it here first
guys, uh, no, no, I, in alljokes aside um, I, I love, uh, I
love the collection, I love thebrand, um, and I'm glad to to
see it fall into good hands, uh,with you and and your family.
Uh, I'm curious if maybe youcould kind of share some of the
(22:57):
insights you know into thebrand's approach to, to
innovation, uh, and, and notonly that too, but you guys are
very technical watchmakers umand not a lot of people really.
uh know you guys as a technicalwatchmaker, so if you could kind
of debate that right, letpeople know why you guys are so
(23:22):
talented at what you do.
Olivier Zaugg (23:24):
I think it's on one side.
It's due to the fact thatJunghans is really located in
the Black Forest, in an areawhere there is a lot of
industrial companies Notwatchmaking companies, but
industrial companies sotechnology, industrial
innovations are very big whereJunghans is located.
(23:51):
So it has been seen over theyears, over the history of
Junghans In the 90s we startedwith the mega technology and the
solar power and we're one ofthe first companies to enter
into this field.
So it means that at Junghans wehave a complete team not only of
designers, but really wedeveloped our watches from A to
(24:15):
Z in Schramberg and we are luckyenough to have a very nice
network of companies around inSchramberg, even companies
producing dials.
So it's really a very nice placeto be for watchmaking brands,
(24:36):
especially if you are not inGlashütte, and it means that we
have access to, let's say, verygood people, very experienced
people in the field of design,research and development,
prototyping, but also production, because we produce in between
30,000 to 40,000 watches a yearin Schramberg.
(24:58):
So it's not a giant productionlike the big groups, but it
starts to be quite a big amountof watches to produce, and not
only produce but ensure a veryhigh quality level, which is our
priority number one.
So we don't want to grow andinnovate in every direction,
(25:22):
increase too much the productionand not master our quality.
We want to continue to bereally a very reliable product,
a product that people can buyand be very happy for the years
to come people can buy and bevery happy for the years to come
.
Justin Summers (25:41):
I love that and I'm going to make the perfect
segue here.
So you speaking on to like theproduction.
I know that we had kind ofmentioned this before with the
sustainability of the company,but what role does
sustainability play in YoungHans' production and what are
the future plans for thatsustainability with the company?
Olivier Zaugg (26:00):
So everything starts with a building.
At Junghans, as you know, wehave the so-called Terrassenbau
building, which is an iconicbuilding.
It's a building which isprotected, so we cannot modify
it.
We have to keep it as it is.
And this building was actuallydeveloped with the idea to get
(26:22):
way more natural light cominginto the watchmaking area
compared to a traditional, let'ssay, rectangular or square
building.
So the idea was not only tosave on the energy, was not only
to save on the energy, but tobring very good quality light
and being able to produce morein the same, let's say,
(26:44):
footprint, instead of justgrowing and adding just square
meter or square foot to producemore and more.
So sustainability when it comesto managing the energy we use
to produce our watches is veryimportant, and nowadays you can
still see the Terrassenbaubuilding as it was.
(27:05):
You can visit also theTerrassenbau Museum, which is
located in the same building,where we explain all these
different, let's say, phasesduring the history of Junghans.
And, like I said, we nowconsider more and more to use
eco-friendly material and toreally I would say yeah, we try
(27:32):
really to do everything the bestwe can with impacting as less
as possible our environment,let's say like that, and it's
very german oriented too.
Every time we do something, wewant to try to optimize and do
it better the next time.
You know so kind of elements.
(27:53):
Sometimes it's just being alittle bit stubborn, but uh,
it's.
Uh, it's the way it is.
Justin Summers (27:59):
So really making things the best we can is
really what we are looking atevery day that's a philosophy
that I feel like every everybodyin germany has to follow is
just taking something andperfecting the crap out of it I
think I think even the swiss gotthat, you guys, where they take
this whole concept of theperfect, perfect, perfect,
(28:23):
detail-oriented, heavy inmanufacturing, and I think
that's the German DNA from theSwiss people.
Blake Rea (28:33):
Exactly, yeah, I think that's exactly what it is
and the manufacturer I meanobviously, like I've seen
pictures and it is absolutelystunning the way that it's
layered um, uh and uh, and I'mgonna have to annoy you to get
(28:55):
an actual tour of themanufacturer for our YouTube
channel Anytime anytime.
Olivier Zaugg (29:04):
So we organize and that's something we started
really in 2024.
We started to invite our keyretailers and key customer to
have a private visit of themanufacturer in Schramberg.
Of course, a private visit ofthe museum in Schramberg.
Of course, a private visit ofthe museum, the watch museum,
which is open to the public.
But our VIP customer gets alsoan additional visit to the
(29:30):
internal museum where we keep,or we try to keep, one piece of
every collection produced sincethe start of Junghans.
So it's absolutely amazing.
You can see absolutely everykind of Junghans watches
produced from the very beginning.
(29:50):
So it's really stunning.
And then we of course dosomething very special.
And then we of course dosomething very special.
Junghans' founder actually wereliving in a castle in the city
of Schramberg, and this castleis on the other side of the
valley, you know.
And he was able to look at whatwas happening at the
(30:14):
manufacture from the castle.
So when we realized too, we andthat's new the Stein family
took back the ownership of theJunghans castle and they turned
it into the place where we hostour guests and where we have
company meetings and such kindof things.
So it's really, let's say, kindof a unique setting.
(30:39):
So environment and everythingis really linked about the eye
story of Junghans.
It's absolutely out of thisworld.
I have seen a lot of watchmuseums.
I'm Swiss, I was born in LaChaux-de-Fonds, so I know a
little bit about watchmaking,but the Junghans part of it is
(31:00):
really, really interesting.
So feel free to come anytime.
We will organize you a verynice tour.
We'll, of course we'll be ourguest.
Amazing.
We do a first tour in Februaryduring InnoGenta, because
InnoGenta in Munich for us isvery important.
We are a German brand,innogenta is the biggest watch
(31:23):
and jewelry fair in Germany andit's very convenient for all our
European distributors to attendmeetings there.
So we organize already a bigtour during the InnoGenta, let's
say, period the year.
But I travel almost everyquarter to Schramberg to
organize visits and of coursepart of the visit is a very nice
(31:45):
discussion with Jungan's owner,the Stein family, namely Hannes
Stein, who is the CEO of thecompany.
So you really get the completepackage when you come to
Schramberg.
Blake Rea (31:59):
We'll be there tomorrow, no problem.
Olivier Zaugg (32:02):
Let me know the time.
Blake Rea (32:06):
Can we expect anything?
I mean, you kind of teased alittle bit already about
February and kind of dangled alittle carrot for us, but can we
expect anything new in terms ofcomplications, product lines or
anything specifically tailoredto us Americans here on our side
(32:29):
of the pond On?
Olivier Zaugg (32:30):
the complications ?
Not really, because we justlaunched a few months ago the
regulator both on the Bauhausline, because we just launched a
few months ago the regulatorboth on the Bauhaus line or on
the traditional Maxbill line.
So for us that was a bigachievement because the
regulator is now available in a40 millimeter case.
(32:51):
In the past we used to have aregulator but in the 38
millimeter case, so for us ithas been, let's say, interesting
to revisit the regulator andoffer it in a bigger case.
So there is something happeningon the technology side,
especially with the radiocontrolled and solar powered
(33:11):
watches, especially on thefourth line, which is watches
she's first made with a ceramiccase, even with a ceramic
bracelet or rubber bracelet, sowhere the technology is being
upgraded to be more and more,let's say, more performant or
(33:32):
more easy to use, but stillbased on this very old
technology of radio control andemitters based in different
places of the world.
So, on the technologies thatwill be on the force now, it
will be really mainly on colors,sizes, and we are coming with
(33:55):
something unique for the USmarket.
So we'll have watches whichunique for the US market, so
we'll have watches which will bea USA limited edition limited
to 50 pieces, only for the USmarket.
Blake Rea (34:07):
Wow, that's awesome.
Justin Summers (34:12):
What trends in the watch industry excite you
the most and how is Junghans'position?
Olivier Zaugg (34:22):
to respond to those trends.
Yeah, to me, obviously, it's aminimalistic design.
I like really clean and neatdesign.
I asked I know I don't likewhat she's having too many
things from the dials where theystart to be difficult or
sometimes even impossible toread easily.
So minimalistic design for meis really the biggest driver.
(34:48):
Of course, the price point.
For us, it's very important tostay in a price point where
people can buy our watches.
We, of course, we have a fewmodels which are with higher
price points.
We even have a unique editionmade completely out of gold
(35:12):
white gold, yellow gold, rosegold or even platinum with a
platinum bracelet, but it'sreally the exception.
So, you know, we have a fewproducts which are very, very
expensive, but we want to stayin these 450 to less than 3,000
price mark and automatics around1,500, which is really a very
(35:33):
good price point, especially forthe quality we offer.
And so for me, the price point,of course, is really something
that I'm very focusing, toreally keep a strong focus and
not try to go too high.
I think it's not worth it totry it.
(35:54):
And of course, there is a trendwith all these revivals, you
know.
So you will see something, butit will be only for Europe.
In the 90s we used to be verypopular with a watch called the
Mega Mill or Mega One and we areworking on something on that
(36:15):
side.
But it's going to be for youbecause the quantities will be
extremely limited and it makesno sense to, let's say, to put
everything in place in terms ofimport and licenses for some
very specific models if it'sreally small quantities.
(36:37):
But you can expect something onthe revival side, but it will
be mostly for Europe.
Blake Rea (36:46):
I'm also curious as to how do you feel YoungHans is
different in a competitivemarket where you're starting to
see brands that are popping uppretty much overnight that are
essentially taking the Bauhausdesign uh and and and shifting
(37:07):
it forward into the marketplace.
You know they're coming in atmore aggressive price points.
Um, they're taking designlanguage that you know you guys
have been doing for 160 years,and so how do you feel Yonghan
stays competitive, you know,despite that, I think we stay
(37:32):
competitive by offering entryprice point products, now with a
very minimalistic design.
Olivier Zaugg (37:40):
So we don't try just to reduce the price of our
watches, but we come with acomplete line of watches with a
minimalistic design which are ina even more affordable, let's
say, price point.
So that's one of our way totackle this.
On the other side, we are inthe market since, like you said,
(38:03):
since 160 years, so since avery long time, and we are
really known for that.
So there is really a lot ofpeople who associate Junghans
with Bauhaus, with Max Bill andespecially people in the field
of the design, like builders,architects, designers.
(38:24):
Of course, for them, theBauhaus is something key.
They have been going, they havebeen studying this during their
, let's say, when they wereattending school or high school
or university.
So for them that's somethingvery important, very unique, and
the name of Junghans is veryclosely associated to that,
(38:47):
which might be a little bit moredifficult for newcomers.
But on the other side, there isalso a trend of a lot of new
watch brands, like you said,popping up almost every day, and
even to me, like I go to windup every time, I find new brands
and they just start and I thinkit's interesting.
(39:12):
It's definitely interesting.
I think it's challenging alsofor a lot of brands to start now
because, yeah, you need tostart now because you need to be
different, you need to beinnovative, you need to find
your customers.
So it's not so easy, but it'sinteresting.
And on the other side, it's achallenge, so it pushes us to
continue to improve and getbetter and better.
(39:33):
So, for me, competition is good.
It's not something that I'mafraid of.
It's something that I actuallyenjoy because it helps us to
improve.
Justin Summers (39:43):
It pushes you to be better in every aspect that
you can.
Healthy competition Nothingwrong with that, yep.
I'm curious, oliver, what drewyou to become a part of Junghans
and how has your leadershipshaped the brand's direction,
(40:03):
especially, you know, within theAmericas?
Olivier Zaugg (40:06):
Yeah.
So I actually joined Junghans Iwould not say by accident, it
was for Maurice Lacroix.
And when I went to theinterview I even didn't know
that they were distributingJunghans, because in my former
(40:26):
career I was always, let's say,in the watch industry, but I was
first with Frédéric ConstantAlpina and then Maurice Lacroix,
so Junghans is not really acompetitor, so I never really
paid too much attention toJungans.
So during the interview thepeople at the distribution
company started to talk to methat I will have to manage two
(40:49):
brands, so Maurice Lacroix,obviously, and Jungans.
So it was a little bit of aneye-opener and I really started
to do my research and reallystart to pay close attention to
the brand.
And actually the brand has beenreally well-received in America
.
So it became to me veryinteresting and very different
(41:09):
than a brand like MauriceLacroix or Félix Constant or
Raymond Bell, which are more,let's say, similar in a way in
terms of design, in terms ofproduct offering.
So to me it became very, veryinteresting.
So another very special placein my, let's say, in my
(41:29):
environment.
And after a few years, whendiscussion started to create a
subsidiary and really have thebrand present in the market and
not through a distributioncompany.
I was like a natural choice.
You know, I was knowingeverybody at Junghans since
years.
I have a very good relationshipwith the owner, so it was quite
(41:52):
natural that we start tocollaborate on that.
So, and again, junghans has avery special place in my, in my
earth.
I really even I'm Swiss.
A lot of my friends are tellingme a Swiss guy is selling and
pushing a German brand and I sayyou know, swiss guys want to do
very nice watches.
(42:13):
So I am.
To me it's, it's veryinteresting and it was like a
natural change and I'm veryhappy with that.
Blake Rea (42:20):
So yeah, I think I have to ask and this is always
the hardest question that I ask,you know, during the whole
podcast.
So feel free to opt out if youdon't feel like you can answer.
But it's like having a favoritechild.
You know what would you say isyour favorite model or
(42:43):
collection from Junghans?
Olivier Zaugg (42:47):
So, actually, when I started to sell Junghans
watches, I had to pick a watchto put on my wrist like a, you
know, a wear watch.
And I love planes, I lovevintage planes.
So I selected the Meister Pilot.
(43:08):
Okay, it's the original one,really, it's the first one we
did.
Okay, and I've been wearingthis watch for four years in a
row.
I was very happy with that, so,and I still wear it.
So the Pilot to me is a specialwatch, but it's also, I would
(43:28):
say, more due to the design, tothe size.
I love big watches, obviously.
I love a chronograph, I lovebig numerals, something very
easy to read and a little bitvintage at the same time.
So I would say the MeisterPilot to me was the natural
(43:49):
choice.
Now, if I have to go more onthe Meister or Max Bill side, to
me it's the Bauhaus regulator.
So I love regulator.
They have a very special, let'ssay, appeal to me in terms of
technology, the way the movementis built, and I love actually
(44:11):
the Bauhaus case back where youcan see the movement is built,
and I love actually the Bauhauscase back where you can see the
movement and the Bauhaus logo,the Bauhaus accent, the red
accent and so on.
The way the case is finishedmatte polished.
This watch to me is really myday to day wear watch.
Justin Summers (44:30):
I love the regulator.
Regulator is sweet to me.
They are special day-to-daywear watch.
I love the regulator regularsuite.
So how do you uh personallydefine success for young hans uh
, specifically in the americas,because we know it's your market
.
But how do you define thatsuccess?
Olivier Zaugg (44:50):
Yeah, it's a good question because for us,
success is, of course, tocontinue to grow, but we want to
grow in a controlled way.
We are not looking to grow atall costs and in a short term
period of time.
We want to be in the market forthe next 100 years.
So everything we do, we try todo it in a logical way and in a
(45:15):
sustainable way, so then we cancontinue to build on that OK.
So, and one key element for meis a customer satisfaction
Because at the end of the day,as brand, ok, we can do nice
advertising marketing, we cantell nice stories.
We can tell nice stories, wecan build nice product.
At the end of the day, thisproduct must be on the wrist of
(45:38):
someone and this person mustenjoy that watch.
And to me, I love to have closerelationship with the watch
collectors.
I do a lot of events with theprivate watch collectors,
presenting the brand, discussingwith them, getting feedbacks
and, of course, with a retailer.
So I travel a lot.
I spend about 75% of my timetraveling in the continent
(46:04):
because I want to meet with aretailer.
I want to have discussions.
I don't want to sell productjust by offering by email and
then getting an order andshipping products.
So building relationship, beingpresent, getting feedback, even
when it's when something waswrong.
It always happened, it's allhumans, but the way to solve the
(46:24):
issue is key for me.
So if, at the end of the year,my retailers are happy and the
feedback I get from the endconsumers is very positive, to
me it means that the year wassuccessful.
And, of course, if we continueto grow and if we continue to be
able to develop new productsand bring new technology to the
(46:45):
market, that's fine, but that'snot the biggest element for me.
So customer satisfaction andhaving very good relationship
with both with a professionaland the customers.
Blake Rea (46:58):
Yeah, I've noticed, at least in my market.
You know we don't have a youngHans dealer.
We did, and I think they havefailed you miserably because, uh
(47:18):
, they didn't have their product, your product, even on their
website like I I could.
I didn't even know that youwere being retailed there and
they do a terrible job at atadvertising and showcasing your
product, um, and I'm surethere's other dealers out there
that that are doing the same.
(47:39):
You know, your brand is aunique brand.
It has a unique story, it has aunique identity and uh, and I I
definitely see you know nowthat you guys have some more
closer roots to America.
You know, you're here, youunderstand the market.
(48:01):
I think that's not only afailure from the retailers.
But you know, education is whatsells products People being
proud to sell young Hans, peoplehaving a respect for your brand
.
And you know, in my, in my case, when I went to my, my retailer
(48:22):
and they didn't even reallyknow that they sold young Hans,
but they had him, you know, likethey had them in a small little
showcase there in the cornerand I was so frustrated.
I was like, why do you onlyhave these in this corner here?
Like, these are amazing watches.
What are you doing?
Olivier Zaugg (48:39):
That's the biggest challenge in America.
It's, first of all, to workwith the right retailer at the
right location, so then theyhave the right, I would say,
customer base or prospect base.
And second thing, it'seducation, and this is one of
the elements why Junghans wantedto have a subsidiary.
(49:02):
Now it's to show to the marketthat we invest in America by
being present physically andinvesting a lot of money.
So one element that wasdifficult in the past was to
have stock, and, as you know, inAmerica, when a customer goes
to a store or when you call orsend an email, normally people
(49:26):
are not really patient and arenot really willing to wait six,
eight weeks to get the watchthey want it now.
So one of the key elements inthe strategy I implemented this
year was to make sure that wehave everything stocked in the
US so then we can make sure thatwe can provide the goods to the
(49:47):
retailer very quick.
And also we implemented a newwebsite, because the distributor
had a website but obviously,when the distribution contract
stopped, we're not, let's say,able or willing to continue with
this.
So we recreated a completeJunghans website for North
(50:08):
America.
So for a few months people wereobliged to use the German
website, which is not veryconvenient.
It was in English buteverything was in Euro and with
a lot of information aboutEurope.
So here people want to hearabout the US and North America.
So we did build a new website.
(50:28):
We launched it two months ago.
And last thing, I was sayingthat I travel a lot.
Every retailer who is notreally willing to invest and
stock at least the best sellerand advertise properly, update
their webshop, make sure thatthe links are correct, that
everything is okay, the picturesare the original ones, the
(50:51):
prices are correct.
I'm very strict with that.
So there are a few retailerswho I had to decide that they
are not the right choice, so Idecided to close them.
On the other side, we opened alot of new retailers also.
We start fresh.
So I call this like cleaningthe market.
That's a little bit what it is,but it's necessary to continue
(51:14):
to grow.
So in your area I have aproblem.
I know, I definitely know andI'm on it.
I might be able to give you agood news quite soon, but it's
not signed yet.
Blake Rea (51:29):
I cannot discuss.
Well, if there's anything thatI can do from a local
perspective to help bring youknow more awareness to your
amazing brand, I think Justinand I can can speak to this.
I don't even know if I would bea watch collector without a
(51:51):
brand like young Hans um becausethere's something about it, you
know.
It's minimalist, it'sunderstated, it's fun, it's
playful, it can be anything youwant it to be.
And there's.
There's not a lot of watchesout there that exist that have
that type of uh open open sourceis not the right word for it
(52:14):
but it's.
It's universally uh, stylish.
It'll never age, it'll alwayslook good another 160 years down
the road.
Hopefully one of my kids willbe wearing this watch.
Um, and then you know also whatI love about it is it's
serviceable.
You know, you see a lot ofbrands that are pushing for
(52:34):
these in-house calibers becausethey want to own the customer.
They want to own the customerand have a longer customer
acquisition period, which, in myopinion, is not necessarily the
best interest of all of us, as,as collectors, I want to know I
can take my watch to awatchmaker down the street, have
it serviced, have it back on mywrist and not have to worry
(52:57):
about sending it to New York orMiami or Texas for six, seven
months.
It just I don't think that thistrend is a consumer forward
trend.
Yeah, no.
Olivier Zaugg (53:11):
I think service is a key element and actually we
opened a second service center.
We are the only one in Miami.
We opened a second one inLincoln, nebraska, and every
authorized retailer has accessto spare parts and has access to
our, let's say, database.
So every authorized retailercan repair Junghans watches.
(53:34):
And we just started in Canadalast year, so we already opened
a service center also in Canada.
So service is key and we don'thave a lot of movements that
cannot be repaired by, I wouldsay, a watchmaker.
We use ETA movements, elitamovement, some complications
(53:55):
like the body module, so we havea few manufacturer movements.
But that's not where we focus.
That's really having, I wouldsay, a product very well built,
easy to maintain, easy to enjoyand continue to expand the
(54:19):
network.
So if something bad happens, itcan always happen.
It's a watch you never know,especially on the mechanical
watch.
But service must be done veryquick and with a fair price,
also because it's importantwe've got a.
Justin Summers (54:35):
Um, I was gonna say I've got kind of a funny
story in terms of, like, myownership of a young hans.
Uh, my wife went to school forinterior design uh, and so she
of course, had studied Bauhausdesign and a lot of her
teachings.
I come from a photography, youknow videography background and
(54:57):
Bauhaus design has always beenlike very deeply rooted into you
know my surroundings, my designwithin my home.
He's my dog.
Blake Rea (55:09):
Your dog agrees with what you're saying.
That's right.
Justin Summers (55:12):
That's right.
But no, I mean just, you know,kind of going back to it, like
you know blake was reallytalking to like how important
young huns is to us, uh, and youknow, we wouldn't be watch
collectors if it wasn't for thebrand, uh, just because it is so
important to me.
Um, and I love telling peoplethe story.
You know, specifically, I own aMax Bill.
(55:33):
It's a no date and I lovetelling people the story of, you
know, max Bill.
You know, back in the 50s, youknow, used to make the wall
clocks and then turn it into awristwatch, and it's just so
refreshing because there's not alot of brands out there that
have that design philosophyheritage that you guys have, uh,
and it's just really uniqueyeah, yeah, definitely, yeah,
(55:58):
yeah.
Olivier Zaugg (55:58):
And that's what attracted me with young guns
besides, I would say also theway of doing business at young
guns it's it's a family ownedbusiness, as your nerves are
very independent, they want tostay independent and they
operate really like afamily-owned business.
So everybody knows each other,there's a lot of respect within
(56:20):
the organization and everybodyjust protects the business as if
it was his own business.
So it's really interesting.
Decisions are very easy to take, very quick, quickly made, and
it's a very, let's say, niceenvironment that goes very well
(56:42):
with a nice type of design thatwe use on our watches.
So it's a perfect combination.
Justin Summers (56:48):
I agree.
Blake Rea (56:50):
I've got the hardest question for you of the entire
podcast and then we will let yougo because I'm sure you're
super busy and thank you forspending, you know, almost an
hour with us.
Um, but what is the next decadefor young hans look like in
terms of milestones?
(57:10):
What do you hope to accomplishas a leader for the brand?
And the reason why we're askingthat is because we're going to
check back with you and makesure that you're hitting all
those milestones.
Olivier Zaugg (57:23):
Okay, no, but the first element is to continue to
expand.
I mean, in terms ofgeographical locations, we still
have a lot of work in somestates where we have no
retailers at all, so thesestates are a key priority.
(57:44):
So I want at least one retailerin every state.
In some states, of course, wehave several, but that's really
something important.
Like I mentioned, we started inCanada not a long time ago, so
Canada.
Now we are really wellpresented in Vancouver area, so
we want now to develop inToronto and Quebec.
(58:05):
So then we cover the three mainregions in Canada, both with
sales and service.
I have to relaunch the businessin Mexico.
So Mexico used to be quite anice business for Junghans and
then as a distributor, I don'tknow what happened exactly.
I really do now to start totravel and see in the market,
(58:28):
but that's something I have to,let's say, to take over and
reboost completely.
And actually we also started todevelop in the Caribbean.
So again, geographicallocations, expansion, continuing
to improve the quality of ourretailers, education, making
(58:49):
sure that they know how to sellyoung dance product, what makes
young dance unique and different.
For me, that's really the keypriority, and by doing this
properly, the business will justcontinue to grow because it's
we are not since decades in inamerica, so we are still new in
the market in, in a sense, uh,but there is a huge potential
(59:14):
that we haven't been able tocommunicate with so far.
So to me there is a bigpotential, a big opportunity.
So the business will continueto grow, but again, we want to
grow in a very controlled way,step by steps.
Justin Summers (59:29):
I think that'll be good for you guys as well,
because you've been makingwatches for so long.
Up to this point, you alreadyhave these business practices
that you've implemented and kindof perfected over the years.
So now that you're kind ofgetting a fresh start into the
American market that you knowthe past 10, 15, 20 years has
(59:50):
really started to bubble intobloom um, I think it's a good
time to kind of ride that waveand to you know, to show people,
hey, you know exactly who youare as a brand, your philosophy,
uh.
So I think it'll be kind of ayou know a good timed little
thing.
Blake Rea (01:00:07):
Yeah, also every, every ceo needs a map on their
wall, so you can know exactlywhere to target.
Okay.
Olivier Zaugg (01:00:17):
You know, I have, I have the maps, I have the
nice max bill World clock in myoffice.
Blake Rea (01:00:23):
So I want to.
I want to thank you for comingon.
It's been a pleasure to sitdown and have this discussion
with you.
I think you obviously know thatwe're a fan of Young Hans, the
brand.
It means so much to us.
(01:00:44):
I don't even think I'm speakingfor myself anymore, but I'm
thinking the entire micro-brandreally appreciates what you guys
are doing.
Um, I can't wait to see youknow what happens, you know, in
the next couple of years, um,with you guys, I will certainly
(01:01:05):
be, uh, you know, keeping aclose eye on, on things that are
moving and progressing.
And uh, um, and I will be assupportive as I can as a
journalist, a blogger, influence, whatever you want to call me
or watch nerd.
Uh, I think me and Justin can,can certainly say that we, we
(01:01:25):
will be at your disposal in anytype of way.
Olivier Zaugg (01:01:28):
So thank you very guys.
That's really highlyappreciated.
So I'm sure we'll stay in touchand communicate a lot in the
future and, like I said, you areinvited to Schramberg anytime,
so just let me know when it willbe convenient for you and you
will discover Junghans from theinside and really have access to
(01:01:52):
a lot of amazing informationand products.
Blake Rea (01:01:58):
I will work on it, probably maybe this summer.
I definitely need to escape thedesert every once in a while.
So yeah, I think Germany is agood place to do that.
Olivier Zaugg (01:02:13):
Yeah, exactly yeah.
The best period of the year isautumn.
Blake Rea (01:02:18):
Yeah, Thank you so much again.
We are going to link the newYoung Hans website in the
description of this podcast andif you don't have a Young hans
near you, maybe I can say thisplease go to your dealer and beg
(01:02:38):
them to carry the brand, ormaybe oliver will be kind enough
to already be working on thatfor you.
Um, definitely pay attention towhat's going on in 2025 and
beyond and stay up to date anddefinitely check out their
website below and and buy one oftheir watches.
Olivier Zaugg (01:03:00):
Perfect.
Thank you very much.
Thank you.
Justin Summers (01:03:03):
Thank you, oliver, thanks everybody.
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