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Annual Report

2021

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ISSN 1421-7384
The annual report is also available in French and German in paper or electronic format, upon request.
© Fédération de l’industrie horlogère suisse FH, 2022

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Table of contents
The word of the President

4Highlights of 2021

6

FH Day - Presentation of a study on mechanical watches

8Adverse effects of counterfeiting - Detailed study and mass destruction campaign

13

Precious metals - Four agreements signed

14

Imports of industrial products - Removal of customs duties

16

Chinese standard - Hazardous substances in watch cases

17

Panorama of the 2021 activities

18

Improvement of framework conditions20

Information and public relations23

The fight against counterfeiting

26

Standardisation33
Legal, economic and commercial services

34

Relations with the authorities and economic circles

35

FH centres abroad38

Inside the FH

41

The Swiss watch industry in 2021

42

Watch industry statistics

44

Structure of the FH in 2021

48

The FH in 2021

50

The General Meeting

51

The Board

52

The Bureau and the Commissions

53

The Divisions and the Departments

54

The network of partners

55

The word of

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the President
Ultimately, 2021 did notmark a return to normality
or even a degree of normality. On the contrary:
the end of the year saw aresurgence of health restrictions in Switzerland andaround the world.
Nonetheless, it is clear thatthe pandemic will havelasting or even permanent
effects on our ways ofworking. As far as the FH is concerned, for example, remote
working will continue, albeit within a defined framework, andhybrid meetings will remain the rule in response to requests
from some of our members.
I am aware that the Swiss economy in general, and watchmaking in particular, have shown a remarkable degree of resilience and ability to adapt. Indeed, adaptation has been essential, in order to continue to produce and distribute watches.
2021 ended on a positive note in terms of exports, not only
compared with 2020 (+31.2%) but also with 2019 (+2.7%)
and even with the record year in 2014 (+0.2%). The return topre-crisis figures occurred faster than expected, however, thisis an overall result for the sector, which conceals some sharp
contrasts between different businesses and their positioning.
The decline in volumes (-23.8%) remains a concern, insofar
as volume drives business. I hope to see a welcome return tostability for all price segments.
As part of its determination to create positive framework conditions, the FH has invested particularly heavily in the areaof precious metals. These types of watch represent only 3%
by volume but generate 35% of the sector’s value, whichhighlights their importance for our industry. I am therefore
pleased that the agreement on mutual recognition of official

hallmarks by Switzerland and France now also covers “multi-metal” items. Similarly, watches are exempt from the hallmarking requirement recently introduced in India for all precious
metal items marketed there. Furthermore, Swiss watches will
escape the requirements for physical marking with the new
QR code introduced by the Russian authorities to ensure product traceability.
In Switzerland, I am delighted by the removal of customs duties
on imported industrial products decided by the Swiss parliament. Removing these will simplify import procedures andlower the cost of products in Switzerland.
These are just a few key examples of the work done by the
FH to support the sector, despite a still challenging situation.
At the end of this very strange year, it is more important tome than ever to express my gratitude to FH members and theassociation’s governing bodies for their support and valuableassistance, and to FH staff, who have shown indefatigablecommitment and an outstanding ability to adapt, to enable us
to achieve our objectives.

Jean-Daniel Pasche

Highlights

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of 2021
Although 2021 continued to feel the effects of the pandemic,
it also featured a very special event for the FH and marked
the completion of several important projects. After two
General Meetings held by correspondence, the FH was keen
to bring members back together for a convivial and informativeday. This was an opportunity for it to present several aspectsof its activities, including a study it had conducted on theperception of mechanical watches. On another front, a reportfrom the OECD helped raise public awareness of the adverse
economic effects of counterfeiting in Switzerland. At the sametime, the improvement of framework conditions remained apriority, with four agreements concluded or entering into force
on precious metals, the removal of customs duties on imports
and amendments to a binding draft standard in China.

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FH DayPresentation of a study on mechanical watches

After being forced to cancel its face-to-face General Meetingfor the previous two years, the FH was delighted to bringmembers back together in October for a convivial and informative day. The event proved a great success, with almost 150
people responding to the invitation and attending the day at
Delémont’s Campus Strate J.

More specifically, several of the FH’s presentations highlighted
the changes in the watch market, the improvement of framework conditions at the international level, the fight against
counterfeiting on the internet, protection of the ‘Swiss made’label and the still significant appeal of mechanical watches
worldwide.

The day’s agenda was focused on presenting various aspectsof the FH’s activities, and on the previously unpublishedresults of an international study it had conducted on the perception of mechanical watches. Participants also attended
a presentation by Marco Benz, deputy director of the Swiss
Federal Customs Administration, on the reorganisation of what
will become the Swiss Federal Customs and Border Security
Office in 2022.

The very positive feedback on this new event highlighted theextent and quality of the services that the FH offers its members. It also pointed to the need for members to meet in person, after long periods of partial lockdown, remote working
and videoconferences.

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Perception of mechanical watches
In the spring of 2021, the FH commissioned an extensive
study on the perception of mechanical watches worldwide.
The survey focused on four main areas of interest:••••

Knowledge and use of watches
Purchasing behaviour and motivations
Purchase criteria
Perception of mechanical watches and Swiss watches

Overall, half the people questioned wore a watch daily, 20%
never wore one (even though some owned one) and 30%
were occasional users.
European countries and China are familiar with manual andautomatic mechanical watches, while other countries are more
focused on connected watches. The Swiss and Chinese are
the most knowledgeable in terms of differentiating between
mechanical and quartz watches.

Frequency of watch wearing

Every day4-6 x per week
1-2 x per week
a few times a month
Never (have 1 watch)
No watch
0%

10%

20%

30%

40%

50%

One respondent in two wears a watch every day. No notable difference between age groups
was observed. By comparison, Swiss watches enjoy a strong reputation and are renowned
for their reliability. They are also perceived as having an investment value.

10Knowledge of types of watch
100%

80%

60%

40%

20%

Automatic
Smartwatch

0%
Switzerland

Germany

France

Italy

USA

India

Japan

China

European countries and China are familiar with mechanical and particularly automatic mechanical watches, while othercountries are more focused on connected watches.

In terms of purchasing, China and India, in particular, are very
interested in buying watches in the future. Asked about theirpreferences in terms of provenance, most respondents still
mention Switzerland, as well as their own country.
The most influential purchase criteria, regardless of country, are the relationship between quality and price, a highlevel of quality, and scratch-resistant glass. For the Swiss, the‘Swiss made’ label is also a very important purchase criterion,
while the Chinese place great importance on craftsmanshipand know-how. The east-west divide is particularly marked
in terms of the importance placed on limited editions andcelebrity brand ambassadors. These criteria are more important for people from Asian rather than Western countries.

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Chinese and Indian respondents expressed a high level ofinterest in buying a mechanical watch during the next 24
months, while most Swiss, Japanese, Americans and Germans are not interested in doing so. The main reasons for notpurchasing – regardless of country – are the lack of necessity,
coupled with the high price. Indifference towards mechanicalwatches is a significant reason for not buying in the UnitedStates, in particular.

In all Western countries (Europe and the United States),mechanical watches are mainly associated with tradition,
quality and reliability. Respondents in Asia have a particularly
positive perception of artisanal production, with the results
indicating that mechanical watches come from the magic ofcraftsmanship. In China and India, mechanical watches areperceived as both innovative and traditional. In all other countries, however, they are viewed as more traditional.

Preferred origin for watches

Swiss

Americans?

Indians

Germans
Japanese

FrenchItalians

ChineseWhen asked about
their preferencein terms of provenance for watches in general, most respondents still mention Switzerland,
Perception
de la montre mécanique
www.fhs.swiss
28.10.2021
in addition to theirown country. However, the proportions vary widely, with national preference significantly higher in somecases. The size of the flags is proportionate to the number of responses.

12Distinction between mechanical and quartz

18-29
years old

Mechanical/quartz
60-79
years old

Manual/automatic
Automatic
Manual
0%

20%

40%

60%

80%

100%

In terms of age groups, mechanical watches are more familiar to older people, while the younger
generations know more about connected watches.

By comparison, Swiss watches enjoy a strong reputation andare renowned for their reliability. They are also perceived ashaving an investment value.
It appears that younger people (generations Y and Z) in Western countries find mechanical watches less attractive thanolder target groups do. They are also less able to afford one forthemselves. In Asian countries, however, mechanical watches
are highly prized by young people. In brief, we can conclude
that although mechanical watches are more popular among theolder generations, they are by no means obsolete. For younger
people, however, price plays a decisive role.

Study characteristics
Target group: people aged 18 to 79 years(+ top-up for generations Y and Z)
Survey countries: Switzerland, Germany,
France, Italy, United States, India, China
and Japan
Sample sizes: 9,600 people, or 1,200(1,000 + 200 for the top-up) per country
Survey period: April 2021

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Adverse effects of counterfeiting
Detailed study and mass destruction campaign
One of the highlights of 2021 in relation to fighting counterfeiting was the publication of a report by the Organisation
for Economic Co-operation and Development (OECD) on theadverse economic effects of counterfeiting in Switzerland.
Produced by a renowned international organisation and basedon scientific criteria, the report clearly calculates, for the firsttime, the economic harm caused to Switzerland, and particularly the watchmaking industry, by counterfeiting. Launchedjointly by the FH and the Swiss Federal Institute of Intellectual
Property in 2017, this large-scale project is the fruit of four
years of work. Initially a bilateral initiative, it gradually grew inscale and several private-sector partners (Scienceindustries,
Swissmem, Promarca and Stop Piracy) decided to get involved.
This widespread support from both the public and private
sectors was important to ensure the study’s national impact.
The results published in March 2021 speak for themselves
and illustrate in detail the extent of the damage caused bycounterfeiting. The total value of fake Swiss watches marketedworldwide in the reference year (2018) was 3.35 billion Swiss
francs. This equates to lost sales for Swiss watchmaking businesses of 1.98 billion francs, out of a total of 4.5 billion for
Swiss industry overall. Watches are by far the most common
items among Swiss counterfeit products. Another interesting fact is that 54% of counterfeit goods that infringe Swiss
intellectual property rights were sold to consumers who knewthat they were buying a fake and that the share of buyers who
knowingly ask for fake Swiss products has increased. In termsof employment, the trade in counterfeit goods has contributed
to the loss of over 10,000 jobs in Switzerland, 3,700 of them in
the watchmaking industry. It is also important to note that theprivate sector is not the only one to suffer from counterfeiting.
According to the OECD study, the harm to local authorities
and the state totals 160 million francs a year, particularly interms of tax revenues.
The publication of the report has helped to raise public awareness of the damaging effects of counterfeiting. Its findings
were covered extensively in the media, including several television and radio stations, as well as the press, in all Switzerland’s language regions. Their reports and articles reached an
audience of several hundred thousand people in Switzerland,
whose attention was drawn to the fact that counterfeiting
affects each and every one of us, and can cause significant
harm at all levels. The report’s publication coincided with acampaign to destroy counterfeit watches and fake medicines,
led by Stop Piracy, to maximise the impact of the message,and involved a steamroller crushing 15,000 watches seizedby the Swiss customs authorities.

Information aimed at the general public is essential, but thereport also needs to have a long-term impact, especially at
the political level, so that measures are taken to provide better
protection for the intellectual property of Swiss businesses.
It is useful to recall one very practical example. In 2017, theConfederation introducing cost-cutting measures that caused
a massive drop in seizures of counterfeit items at the border. The FH opposed this decision and several steps weretaken, including a meeting with Federal Councillor Ueli Maurer.
Shortly afterwards, a motion – entitled “International online
trade. Effectiveness of control procedures by the Federal
Customs Administration” – was brought to parliament by theformer National Councillor, Manfred Bühler. Aimed at ensuring better control of goods imported through Swiss customs,
the motion was adopted in 2021 by the Federal Council, theNational Council and finally, the Council of States. The FH
supported this long parliamentary process and cited figuresfrom the OECD report on several occasions. Following the
adoption of the motion, the Federal Administration must now
implement the plan.
The OECD report was also used in relation to another motion
by the Foreign Affairs Committee of the Council of States on
intellectual property (“Protection of indications of Swiss origin.
Stopping Chinese counterfeits”). Thanks to broad support
from the FH and economiesuisse, the motion was not only
adopted by the National Council, but also by the Council ofStates, in late 2021. A good sign for effective protection of theintellectual property rights of Swiss businesses.

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Precious metals
Four agreements signed
The improvement of framework conditions, which is one of
the FH’s main objectives, was reflected in practical terms by
the conclusion or entry into force of several agreements on
precious metals in 2021.

FranceThe new bilateral agreement with France on the mutual recognition of official hallmarks on items made from precious metals,
signed in June 2018, came into force on 1 September 2021.
One important new feature of the agreement, which replaces
the 1987 version, is that it includes items made from several
metals alongside gold, silver and platinum. In practice, the importance of these items has grown steadily in recent years in thecontext of cross-border trade with France. The new agreement
thus provides legal certainty for simpler processing, which – inpractice – already existed.

The commercial transactions involved will therefore continue tobenefit from simpler procedures, which are synonymous withsaving time and reducing costs. The products concerned willremain authorised for import without checks or additional hallmarking, provided they have been verified by the relevant authority in the country of manufacture and bear its official hallmark.
The FH supported the revision process from the outset, contributing in both Switzerland and France, in close cooperation with
its counterparts and partners.

RussiaOn 19 November, during the 21st Swiss-Russian joint bilateralommission meeting, Federal Councillor Ueli Maurer, head of
the Federal Department of Finance, and Russian Finance
Minister, Anton Silouanov, signed a protocol in Bern supplementing the 2011 bilateral agreement on mutual recognitionof hallmarks in the watchmaking industry.

Anton Silouanov, the Russian Finance Minister, and Ueli Maurer, head of the Federal Department of Finance.

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Kazakhstan
The meeting at the end of November between the Presidentof the Confederation, Guy Parmelin, and the President of
Kazakhstan, Kassym-Jomart Tokaïev, in Geneva, resulted in thesignature of two agreements aimed at promoting trade between
the two countries.
They were signed by Minister Marie-Gabrielle Ineichen-Fleisch,director of the State Secretariat for Economic Affairs, and the
Kazakh Minister for Trade and Integration, Bakhyt Sultanov. They
are first, a protocol on domestic regulations relating to the trade
in services and secondly, an agreement on mutual recognitionof official hallmarks placed on items made from precious metals.
The agreement provides easier access to the Kazakh market foritems made from precious metals in the Swiss watchmaking andjewellery industry. Both states have undertaken to authorise theimport of items that have been verified by the relevant authority
in the country of manufacture and which bear its official hallmark
without checks or further hallmarking.

Foreground: Bakhyt Sultanov and Marie-Gabrielle
Ineichen-Fleisch. Background: Kassym-Jomart Tokaïev,President of Kazakhstan, and Guy Parmelin, President of
the Swiss Confederation.

The two agreements will enter into force once the formalities
required by both parties’ legislation have been completed.

India
The change allows Swiss watches made from precious metals
to be formally exempt from the additional marking (QR code)provided for in Russian legislation on product identificationand traceability.
This legislation will enter into force in various stages, on theunderstanding that the product registration process has alreadybegun. According to the planned schedule, items made fromprecious metals distributed on the Russian market from 1
March 2022 onwards must have a unique identification number, a digital photograph and a label attached to each product,
bearing the QR code assigned to it. Swiss watches made fromprecious metals must also satisfy these requirements.
From 1 March 2023, items made from precious metals,
except for Swiss watches, must be physically marked with
the QR code assigned to them. The FH worked closely with
the State Secretariat for Economic Affairs on adapting thebilateral agreement with Russia, which will thus continue tofulfil its initial objectives.

The new Indian legislation aimed at hallmarking all items madefrom 14, 18, 20, 22 and 24 carat gold, which was deferred
twice, entered into force on 16 June 2021. The initial implementation will be partial, given the health situation and theinfrastructure required.
The FH, in conjunction particularly with the State Secretariat for
Economic Affairs, the Precious Metals Control Office and the
Swiss Embassy in New Delhi, lobbied the Indian government on
numerous occasions to secure a full exemption for watches. The
response from the ministry responsible was finally received the
day before the new law was due to enter into force, confirmingthat watches were outside its scope.
The FH clearly welcomed the decision, which not only avoids
an additional invasive procedure, but also longer customs clearance and delivery time frames, not to mention the associatedadditional costs. Moreover, official Swiss hallmarks satisfy theobjectives of the Indian law with regard to verifying authenticity
and provenance. That said, the idea of entering into a bilateralagreement with India concerning the mutual recognition ofhallmarks remains on the table.

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Imports of industrial products
Removal of customs duties
The removal of customs duties on imported industrial products was finally approved by the Swiss parliament in October,
after four years of discussion and support from various economic stakeholders, including the FH. This should enter into
force during 2022. There were several arguments in favour ofremoval, including:
•
•
•

•

reducing financial and administrative costs for Swissbusinesses,
supporting businesses’ competitiveness, particularly inlight of the ongoing strength of the franc,
removing an unsatisfactory system, combining high customs clearance costs for businesses and limited tax revenues for the customs authorities,
broad offsetting of the Confederation’s opportunity
cost, thanks to an overall improvement in economic
performance.

All customs duties on imported industrial products in chapters 25 to 97 of the Harmonised System will be set to zero.
According to modelling by the Ecoplan Institute, the removalof customs duties will generate savings of 490 million francs,
as well as lightening the administrative burden on the economy
by 100 million francs, or around 20% of businesses’ administrative costs in relation to customs clearance. The positive
consequences on the Swiss economy include other indirect
effects, such as productivity gains, which are estimated at 270

million francs. In total, the expected positive effects on theeconomy amount to 860 million, while the savings for Swissconsumers are estimated at 350 million.
The opportunity cost for the Confederation, estimated at 310
million francs, will be largely offset by the improvement in overall
economic performance. Moreover, the removal of customs duties
on imported industrial products does not weaken Switzerland’s
position in negotiating free-trade agreements, given that aroundthree quarters of customs duties on these products have, in principle, already been removed under such agreements.
In terms of customs formalities, the obligation to complete a
customs declaration on import, including declaring the customs tariff numbers for the goods being imported, remains inplace. However, the removal of customs duties on industrial
products where it is certain, at the point of import, that they
will remain in Switzerland, be consumed there or be sufficiently processed, removes the necessity of providing proofof origin, which is currently required when using free-trade
agreements (FTAs) and in relation to the Generalized System of Preferences (GSP) in favour of developing countries.
Finally, businesses that re-export products in their existingstate (transit trade) or that wish to take advantage of cumulation of origin in relation to FTAs or the GSP must continue
to require proof of origin from their suppliers, in spite of the
exemption from customs duties.

Estimate of the effects on the economy of removing industrial customs duties, inmillions of francs (Ecoplan modelling 2017)

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Chinese standard
Hazardous substances in watch cases
On 23 September 2020, China submitted a notification to theWorld Trade Organization (WTO) announcing the introductionof a new standard, entitled “Specification to restrict harmful
substances in watch cases in direct contact with skin”.
The standard replicates certain Chinese national requirements:for example, metal parts in contact with skin must be subject to a nickel release test, similar to the requirement in theEuropean REACH regulation. In addition, there are restrictions
on formaldehyde, pentachlorophenol and certain aromatic
amines in leather bracelets.
The draft also indicates migration values for certain substances, such as lead, cadmium and mercury, derived fromthe standards applicable to toys. The method involves placing
the watch in contact with a gastric juice equivalent, simulating
what could happen if a child swallowed a small part from a toy.
This type of measurement does not align with the risk involvedin skin contact for an adult wearing a watch.
Apart from the additional toy test, which is both expensive andproduces uncertain results, the FH identified two other risks
in the draft standard. First, a distortion of competition, insofar as it applies to mechanical and quartz but not connected
watches, and secondly, the requirement to submit systematic
analysis reports to the authorities.
The FH drafted an objection notification in conjunction with
the State Secretariat for Economic Affairs (SECO), which was
submitted to the WTO on 20 November 2020. The text wasalso sent to its Japanese and European partners, who used
it as the basis for similar notifications in their own names.
The FH received a response from the Chinese authorities
in early 2021, stating that “the draft contained numerous
problematic aspects and that it would be referred back to thedrafting committee for scrutiny and revision”. This resulted ina conversation between the FH and the Chinese representatives responsible for the development of the standard, ina videoconference on 21 January 2021. During the discussion, the Chinese stated that there would be no distortion ofcompetition and that tests would be carried out on the basisof sampling. Nonetheless, they maintained their desire to
impose regulatory requirements designed for toys on watches
for adults.

A series of contacts with the Chinese representatives followed,
both in the area of standardisation and at the political level, toobject to these requirements. A common front between theFH, some of its members and the SECO finally helped bringabout a positive conclusion.
Initially, the Chinese representatives responsible for the draft
standard announced that they had taken the FH’s comments
into consideration. Heavy metals will therefore be analysedon the basis of total concentration, as with REACH. The only
exception is the migration of antimony in products made from
artificial leather, which does not fall within their remit and isalready restricted under a national standard. Later, and inlight of the significant concessions granted, the Chinese representatives announced that they had started work on a newdraft standard, which requires fresh approval at the national
level before it can be published.

Panorama of the192021 activities
As the leading organisation for Switzerland’s third-largest exportindustry, the FH has many objectives: improving the underlying
conditions in the sector in Switzerland and the rest of the world,
dealing with the challenge of counterfeiting and, for example,
supporting its members and keeping them – as well as themedia and consumers – fully informed. The following pages
present a selection of actions carried out by the Federationin 2021.

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Improvement of framework
conditions
In addition to the commitment already described in the “Highlights” section, the FH continued to pursue its objective ofdefending the interests of the sector internationally. It was
active in numerous markets, for example in relation to negotiations on entering into new free-trade agreements or revising existing agreements, attending official meetings (such as
various joint bilateral commission meetings) or in responseto requests from members.
It took action in around 10 markets, including China, India,
Brazil, the Philippines and the Gulf Cooperation Council.
Market access conditions, technical or administrative regulations, technical barriers to trade, the organisation of distribution,
the protection of intellectual property rights and even temporary
imports were among the main areas of intervention.
Several bilateral meetings were postponed because of the pandemic, while others were able to take place by video conference. Whenever necessary, the FH submitted its requests tothe ministries concerned as memoranda.

Indonesia
Adopted by Parliament in December 2019 and accepted by
the Swiss people on 7 March 2021, the free-trade agreement
between the European Free Trade Association (EFTA) and Indonesia came into effect on 1 November 2021.
The FH was delighted to see this significant step towards thedevelopment of a trading relationship with the Indonesianmarket and its 260 million inhabitants. Under the agreement,Indonesian customs duty on watchmaking products (10% on
watches) will be gradually reduced and finally phased out overa maximum of nine and five years respectively, depending
on pricing. In particular, duty on quartz watches with hands(9102.1100) was removed as the agreement came into effect.

Mercosur and Brazil
Following the conclusion of negotiations on its substance, thefree-trade agreement between EFTA and Mercosur (Argentina,
Brazil, Paraguay and Uruguay) remained at the stage of legal

Video footage presents the Greenhills shopping centre as the largest marketplace for fake goods in Manilla, in the Philippines

21

scrutiny by the parties concerned. The FH evidently seized
the opportunity of the joint bilateral commission meeting with
Brazil, which took place in April, to reiterate the Swiss watchmaking industry’s support for the agreement and to hope itwould come into effect as soon as possible. Among the othersubjects covered, the FH observed that because of the pandemic, it had unfortunately not been possible to count on theusual commitment by the local police and judicial authorities tocombating counterfeiting during the year under review.

Colombia
The fight against counterfeiting was also on the agenda of thefirst joint commission meeting between Switzerland and Colombia, which took place in November. Given the proliferation of
platforms selling fake Swiss watches and using a .co extension,
the FH regularly participates in seizure proceedings involving
the domain names in question. However, the success of suchproceedings remains hampered by the many refusals by the
Colombian register responsible for these extensions to comply
with court decisions.

Philippines
The problem in the Philippines is the existence of entire shopping centres devoted to fake goods, such as the San Juan
Greenhills Shopping Complex in Manila. Large quantities ofcounterfeit Swiss watches are available for sale there, withalmost complete impunity. The FH used the opportunity of
the fourth joint bilateral commission meeting to share its grave
concerns with the Philippine delegation, not only given thescale of the problem and the lax approach by the owners of
the premises concerned, but above all in light of the threat ofviolent reprisals made against authorised investigators. Tensions
are running at such a level that the police have suspended any
interventions. The FH has therefore officially sought the supportof the government authorities, to remedy an unlawful and now
highly dangerous situation.

United Kingdom
The post-Brexit trade agreement between Switzerland and theUnited Kingdom formally came into effect on 1 January 2021.
The new agreement replicates the vast majority of trade-related rights and obligations provided for in the bilateral agreements between Switzerland and the United Kingdom, with not

Ranil Jayawardena, British Minister for International Trade
only a free-trade agreement but also agreements on public
procurement, combating fraud, mutual recognition in termsof evaluating compliance, an agricultural agreement and an
agreement on customs facilitation and security. This has now
been supplemented by agreements on areas such as air travel,road transport, insurance and citizens’ rights.
In the spring, the FH had the opportunity to discuss certain
points relating to the implementation of the bilateral agreement with the British Minister for International Trade, Ranil
Jayawardena. The discussions included the requirement for
UKCA (UK Conformity Assessed) compliance marking, which
formally came into effect on 1 January 2021, but which inpractice has been deferred until 1 January 2023. As things
currently stand, CE marking can therefore be used in the United
Kingdom until that date.
With regard to rules of origin – and although the topic has very
little impact on the watchmaking industry – the revised rulesin the Pan-European Convention were incorporated into thetrade agreement starting on 1 September 2021, subject to thecompletion of ratification processes. As well as modernising theapplicable rules, this incorporation means, first and foremost,that it is still possible to use intermediate materials from theEuropean Union to determine preferential origin in the context
of the bilateral trade agreement between Switzerland and theUnited Kingdom.

22

China

Middle East

The FH used the 26th joint bilateral commission meeting with
China to highlight an issue that directly affects several Swiss
watch brands on the Chinese market, namely the creation andexpansion of unauthorised, web-based, after-sales service networks that have been set up to redirect customer searches
and requests fraudulently. These networks have no hesitationin copying and using all the brands’ official references, including photos not only of original products but also workshops or
window displays, logos, website content, etc. The number of
redirected phone numbers and URLs runs into the hundreds.
Not only is such deceit a flagrant breach of intellectual property rights; it is also very harmful for consumers, particularly
given that the prices charged are entirely disproportionate to
the alleged services provided.

The implementation of the free-trade agreement between
EFTA and the Gulf Cooperation Council (Saudi Arabia, Bahrain,
United Arab Emirates, Kuwait, Oman and Qatar) remained on
the agenda. Certain administrative procedures that contradict
the provisions of the agreement continue to be demanded by
the customs authorities in some CCG member states, and the
pandemic has unfortunately prevented customs experts fromdebating the issue to identify the necessary solutions. Nonetheless, the FH seized the opportunity of the joint commission with
Saudi Arabia to again seek the support of the local authorities
and request action on this matter.

This issue will again be dissected point by point by the bilateralworking group on the protection of intellectual property, as well
as by the quadrilateral watchmaking group set up as part of thefree-trade agreement, of which the FH forms part.

Among the other interventions or positions taken by the FH, weshould mention briefly the establishment of a list of watchmaking products for which price concessions will be demandedfrom Uzbekistan as part of its procedure to join the World Trade
Organization. As in the majority of cases, this examination, led
by the State Secretariat for Economic Affairs, again fell to Switzerland, given its status as the leading watchmaking supplieron the Uzbek market.

It should also be noted that a number of administrative simplifications have been made to the free-trade agreement. In
particular, the limit on the number of products that can be
declared on the movement of goods certificate EUR.1 has been
increased from 20 to 50.

Uzbekistan

Covid-19 pandemic
The ongoing crisis caused by the pandemic continued tomobilise the FH during the year under review. As in 2020, it
was a matter of remaining in permanent contact with the federal authorities and with economiesuisse, to coordinate theassessment of the situation and define economic expectations.
Regular updates on the situation and its impact on the sector
were provided regularly and the FH was also able to share its
analysis during the round-table discussions organised by theFederal Council. It also offered its view each time the Council
launched a consultation procedure, generally in support ofthe positions and proposals put forward by economiesuisse.
The overriding concern on each occasion was to achieve thebest possible balance between the burden on hospitals andmaintaining economic activity.

Example of official content copied word-for-word on an
unauthorised site

23

Information and public relations
Media relations
Contact with the media was frequent during the past year.
Changes in the Swiss watch industry in the context of thepandemic and the return to growth prompted a large numberof interviews and a multitude of articles. Numerous Swiss
media outlets (national or local television channels and radio
stations, and press publications), as well as several foreign
media, such as the New York Times, paid close attention tochanges in the sector. Another highlight was the article published in the magazine “Vie économique”, which is producedby the State Secretariat for Economic Affairs.
The watchmaking year concluded with the usual interview withthe agency ATS/AWP, in which the president of the FH looks
back over the year and outlines the prospects for the sector.
A degree of relaxation on the pandemic front allowed conferences to return. As a result, Jean-Daniel Pasche was able toaccept invitations from the Rotary Club in La Chaux-de-Fonds,
the Société suisse de chronométrie for its study day, and theFrench school in Bienne.

Revue FH
True to its aims, the Revue FH continued to inform both members of the Federation and subscribers via either its paper
or digital versions, with the latter proving significantly more
popular since the start of the pandemic. Swiss and international watchmaking, FH activities, export statistics, news fromwatchmakers and subcontractors, new products and extracts
from the trade register all featured in the magazine’s 18 issues.
The publication remains highly popular with both readers andadvertisers, who find it an excellent way of promoting their
new products or services.

WebsiteRegarded as a reference for matters relating to the watch
industry, the FH website attracted large numbers of visits in
2021, with millions of pages viewed. It is also an important
information source, reporting on the latest developments at
the FH, watch companies and new product launches. The
website also provides export statistics, updates on the Swiss
made label and information on counterfeiting problems,
among other things.

Jean-Daniel Pasche appeared on video at the study day
organised by the Swiss Society of Chronometry

watch.swiss
How can we promote the watchmaking sector to consumers
all over the world? The FH has responded with watch.swiss, animmersion into the fascinating world of the Swiss watch, comprising both a travelling exhibition and a digital platform. As acomprehensive experience, watch.swiss educates consumers
and raises awareness through physical, fun, interactive activities. It also responds to those who want to hone their knowledge
through the dedicated website, www.watch.swiss, and is wellestablished on social media, with regular posts on Facebook
and Instagram.
In 2021, we were finally able to unpack the exhibition after
a year’s absence, to embark on a two-stage tour of the Middle East, starting in Dubai and moving on to Abu Dhabi inearly 2022. As a result, watch.swiss was able to take part in24

watch.swiss took part in the #NoFilterDXB event in Dubai, in November 2021
#NoFilterDXB, which took place in Dubai in November. This
event is the result of merging the Motor Show and the Boat
Show, and revolves around a new concept celebrating the artof living. A large number of visitors attended the event, which
was held alongside the World Expo.
At the same time, the FH uses the handle watch.swiss.official
to communicate with followers on Facebook and Instagram.
The purpose of our presence on digital media is to produce
original, high-quality content celebrating the richness anddiversity of Swiss watchmaking. From Geneva to Bienne, andLe Locle to Val-de-Travers, the FH travelled throughout Switzerland, in particular in the ‘Arc jurassien’, meeting professionals in their working environment. The latter thus had theopportunity to talk about their experiences and highlight the
local know-how and diverse range of occupations associatedwith watchmaking, whether production is on an artisanal orindustrial scale. Regardless of the setting, their activities arealways underpinned by the watch product itself.
Over the year, 26 videos and almost 1,000 photos were produced Eight brands, all members of the FH (Andersen Geneva,
Century, Czapek Geneva, Delance, Frédérique Constant,Greubel Forsey, UCS and Voutilainen) and five watchmaking
regions were showcased.

watch.swiss.official brings together people, products, occupations and places with the consistent visual identity and aesthetic required on social media, and presents original content
to a targeted audience. These communications channels allow
the FH to reach as many people as possible and convey thesector’s common values: modernity, authenticity, know-how,an eye for detail, beauty and product quality. And all from asingle geographical area.

Watch industry statistics and market trends
An analysis of the watch market and its prospects relies on
multiple sources of information, of which export statistics are
one of the most important. These are produced by the Swiss
Federal customs authorities and are an essential official sourceof figures. They also provide a valuable basis for comparison forthe brands. Each month, results from the sector are detailed bymarket, materials or price segment. Modelling past trends canbe used to produce medium-term forecasts.
Among other factors determining the progress of the watchmaking market, trends in the luxury goods sector, the values of different generations of consumers, digitalisation and corporate social
responsibility play a particularly important role, not to mention
the consequences of the Covid-19 pandemic.

25

Permanent monitoring of these factors is sent to all interested
FH members every week in the Tendances newsletter, whichdraws on multiple sources to summarise the latest updates ina dozen areas connected to the watch market.
All this information is incorporated into a more detailed analysis,
which is distributed quarterly through the business magazine,
Tendances. The key trend in the watch market in 2021 was
the recovery, which followed the historic falls of the previous
years. The upsurge in online sales and the second-hand market were also characteristic of the general trend. At the sametime, the situation of the main actors and markets continued
to polarise significantly.
A widely distributed half-yearly press release supplements theinformation that the FH communicates on watch industry statistics and market trends.

Berner Dictionary
The FH completed a new stage in its work on updating theIllustrated Professional Dictionary of Horology, widely referred
to as the “Berner Dictionary”, namely its translation into English
and German. The FH was able to embark on the final work at
the end of the year.

General Meeting
Given the circumstances and the impossibility of meeting inlarge numbers during the first half, the FH’s 2021 General
Meeting took place in written form, overseen by a notary, as
it had in 2020. All the points on the agenda were approvedby a large margin.

Filming day with an FH member for watch.swiss.official
on social media, highlighting professionals in theirworking environment

26

The fight against counterfeiting
Scope of activities
In 2021, the FH pursued many activities to prevent counterfeiting on behalf of members of the Anti-Counterfeiting Group (GA)and the Internet Unit. We are reporting only the most salient
points here, since a separate report is available to interested
readers on request.

Seizure operations on the markets
Saudi Arabia
A programme of action targeting markets within Saudi Arabia
was set up in response to the significant increase in seizures offake Swiss watches on the country’s borders, with over 30,000
counterfeits infringing the rights of members of the GA during
the first eight months of the year.
Five raids were carried out in Riyadh and Jeddah, in conjunction
with officials from the Anti-Fraud Department of the Ministryof Trade. These resulted in the seizure of over 32,600 fake
Swiss watches.

Motivated by these results, FH representatives cooperated withthe authorities to exploit the information provided by investigators in the United Arab Emirates. This information prompted
action by government officials when a target under surveillance
was seen receiving containers of suspect goods. A sixth raid
resulted in one of the largest seizures ever made in the region,
with over 120,000 counterfeit Swiss watches and huge quantities of other branded watches confiscated. It took several days
for the teams in the field to record all the items seized.

Egypt
Six police raids were organised by the FH’s representatives
in Cairo and the surrounding area in 2021, resulting in the
seizure of over 27,000 fake Swiss watches. A workshop used
to assemble counterfeits was also discovered in an industrial
area on the outskirts of the city, where more than 500,000
components – dials, crowns, plates, bracelets, presentation
cases, etc. – were confiscated. According to the documents
found on site, all these products came from China. Informationon the entities involved was sent to the FH teams in Asia forinvestigation.
In addition, over 143,000 counterfeit Swiss watches and38,000 components were discovered in April 2021, following
the inspection of a cargo ship by the Egyptian customs authorities. In spite of the importer’s attempts to have the goods
released, the court ordered the confiscation and destructionof the products seized.

Training for the authorities
Although health restrictions again affected travel in 2021,
the FH continued to provide training at a steady pace byvideo conference.
Training sessions involving the FH helped raise awarenessamong over 1,000 customs officers, police officers andother officials worldwide, including in Turkey, Egypt, theUnited States, Poland, Bulgaria, the United Arab Emirates,
Croatia, Lithuania, the Czech Republic, Great Britain, Spain,
Panama, the Balkans and Africa. All participants were given
the key information needed to distinguish a genuine watch froma counterfeit.

Officials from the Saudi Ministry of Trade conducting araid in Jeddah27

Actions on the internet

Destruction of over 143,000 fake Swiss watches by the
Egyptian customs authorities

Stop Piracy awareness campaign
The Swiss anti-counterfeiting and anti-piracy campaign, Stop
Piracy, of which the FH is a founder member, launched a
new website – www.onlyoriginal.ch – in 2021. Its educational
content was developed specifically for teaching in schools
and to raise awareness among young people. It can also, forexample, be used in workshops on intellectual property andcounterfeiting. The site currently exists in German and French:a translation into English is also in the pipeline.

Financial year 2021 ended with no fewer than 940,000
announcements of counterfeit watches withdrawn fromonline marketplaces and social media. While the figure isslightly below the Internet Unit’s statistics for previous years,
it nonetheless paints a grim picture of what is happening
on the ground, namely that the counterfeiters are unquestionably becoming past masters at getting around the rules.
Effectively, they are managing to sell counterfeits that breachalmost no established law, largely thanks to the use of fakebrands. It seems the online marketplaces are not to be outdone, requiring more and more formal evidence of wrongdoing
and refusing to deal with complaints if any piece of evidenceis missing or incomplete, even where the product in questionis self-evidently a counterfeit and the rights holder or theirrepresentative are clearly acting in good faith.
As a result, the work is becoming more complex and above all,more time-consuming. A few years ago, most online marketplaces simply required a notification by email, listing the URLs
of the counterfeit items (all brands combined), and would swiftly
remove them. Today, it is common practice to require a separate notification – often consisting of a long online form – foreach brand, including, for example, a list of items (formatted

www.onlyoriginal.ch – the new Stop Piracy site aimed at raising awarenessamong young people

28

according to the platform’s requirements), an updated powerof attorney and a valid brand certificate for the country concerned. Moreover, in many cases, the author of the notification
also has to copy the brand number and country of validity into
the fields on the form.
This demonstrates the extent to which the burden of proof now
lies with the rights holders, while there are almost no obstacles
to the counterfeiters publishing an offer of fake goods.
Since 2020, the FH’s new tool for monitoring online marketplaces, AdIntelligence (2020), has fortunately helped to automate a sizeable proportion of the notification work, thanks to
dedicated scripts for each platform and centralising members’
brand certificates in its database.
From a legal perspective, several pieces of legislation on the
responsibilities of intermediaries and digital trade evolved during the year under review. European Union legislation on digital services, the Shop Safe Act in the United States and the
e-commerce law in China are particularly important and will
form a basis for the fight against counterfeiting in the future.
At the same time, there have been certain positive developments with a small number of marketplaces, which are investingin improving their anti-counterfeiting measures.
In terms of procedures, the Internet Unit launched its fifthround of asset seizures, including blocking over USD 1 million
from the accounts of sellers of counterfeit goods. An amountof this kind is a first in the history of the FH.
In terms of sites dedicated to counterfeit watches, the WebIntelligence system has continued to provide effective surveillance.
Hosts that do not cooperate with the standard formal notice toremedy process have been identified and investigated.
Out in the field, several large-scale raids were carried out in
China in April 2021, directly targeting 13 of the factories associated with the NOOB label. More than 100,000 components andseveral thousand fake watches were seized. Major repercussions on the sale of counterfeit watches online were observed
shortly after these interventions, with numerous specialist sites
and blogs announcing a freeze on orders for over a month.

Technical analyses
The technical investigations carried out by FH watchmakers
got back on track in 2021, following a year best consigned to
oblivion in 2020. The 230 samples examined (271 in 2019
– 105 in 2020) covered 26 brands (22 in 2019 – 15 in 2020)and came from 24 countries (22 in 2019 – 20 in 2020).
Most of these counterfeits were seized at the Swiss border. A
number of test purchases were also carried out, to document
certain ongoing procedures. The striking fact that emerged
from these analyses can be summarised in simple terms as
an expansion of the offer. The issue here is not an increase in
the production of fake watches, but rather a segmentation of
the product ranges available on the market, which translates
into a broader price range. This expansion of the offer goes
hand-in-hand with an increase in the quality differential, which
is itself segmented into a multitude of labels, without which
the diversity of quality levels would be incomprehensible formarket actors. In addition, it can be seen in a contraction of
the array of models being copied, which is only paradoxicalon the surface, and has the corollary effect of exacerbatingcompetition between distributors.
In brief, fewer models are being copied, but there is much
more choice in terms of price and quality levels. FH statistics
show that counterfeiters rarely concentrate on more than one
or two models per brand. Moreover, in terms of the quality ofcounterfeits offered on the market in 2021, the FH’s evaluation scale can be used as a tool to quantify the expansion of
the offer, and now runs from a score of 5 for very low-quality
products to 33 for the highest quality. The year under review
was marked by a significant increase in this differential.

Counterfeit goods declarations
Alongside its “clinical analysis” activities, the FH’s Anti-Counterfeiting Department issued 2,341 counterfeit goods declarations in 2021, 248 fewer than the year before (-10%). Demandremained high during the year under review and continued
to be driven by an increase in requests for intervention from
customs authorities in Switzerland and worldwide. It is usefulto remember that behind each of these declarations lies theseizure of one or more fake Swiss watches. Although it is still
difficult to get information on the conditions of each of theseseizures, FH specialists nonetheless try to make the best possible use of the data available. The information can be broken
down in all kinds of ways, for example by brand and model,

29

but plenty more besides. Among other things, it is possible
to summarise countries of origin or destination, transporters and the number of items per shipment. This information
can be used to detect swiftly what criminologists call “repeat
offences”. All these data are made available to members insummary reports, individualised by brand.

Joint intervention request
The number of seizures carried out under a joint intervention
request sent to the Federal Customs Administration fell sharply(-19% to 716 units). It is important to remember, however, thatany comparison with 2020 is somewhat biased by the highly
exceptional circumstances. Leaving 2020 aside, the overall
trend in customs seizures figures is positive. Ultimately, 2021
will remain a good if not record year in terms of seizures at

the Swiss border. The number of brands under surveillance
is now 44. Most of the 792 items seized (in 716 shipments)from China or Hong Kong, transited through the Netherlands
or Singapore. Both these regions are now clearly becoming“high-risk zones” for the traffic in fake Swiss watches.

Detecting repeat offences
Data-mining techniques applied to customs notifications help
to detect problematic repetitions, revealing certain troubling
behaviours that merit further consideration and in some cases,a response. The most common case is, of course, that of repeat
offenders. The data summary, however, goes a great deal further, offering the possibility of highlighting the degree of involvement of all the actors concerned. The Dutch postal operator
PostNL is a case in point.

Geographical distribution of recipients of counterfeits by postal area (number of observations: 792)

30

Effectively, by examining information gathered from the shipping
notes on packages, it is obvious, strangely, that the Netherlands
is clearly at the top of the countries of origin declared, whilemost of the shipments concerned actually come from China. If
we look explicitly at the operator – the one whose trademark orcompany name is mentioned on the package – PostNL once
more comes out top.
All the data gathered in respect of the joint intervention request
show PostNL’s degree of involvement in shipping fake watchesfrom China to their final recipients in Switzerland. The Swissdata are corroborated by EU market figures in respect of intervention requests in European Union countries.
In other words, the available data clearly show that the Netherlands is the main gateway to Western European markets forcounterfeit products transported from China by post, and that
PostNL is a key operator in this traffic.

Involvement of PostNL in the traffic in fake watches

Based on this observation, the FH drafted a rationale for taking legal action against PostNL. It appointed its long-standing
partner REACT, which is based in Amsterdam, to examine theappropriateness, possible terms and chances of success ofsuch an action. For both the FH and REACT, this is a textbook
case, the outcome of which will undoubtedly determine thefuture strategy of the GA in respect of other postal operators,
forwarding agents or transporters.

Labelled counterfeits
Over the last few years, attentive observers have noticed theemergence of a multitude of diverse labels associated withcounterfeit brands and models. While they were originally
distributed confidentially and reserved for insiders, they have
gradually increased to such an extent that trying to list them all
is now quite a challenge. This move towards differentiation was

31

1'000
1'000
1'000
1'000
900
1'000
900
900
900900800
800
800
800800700
700
700
700700600
600
600
600600500
500
500500500400
400
400
400400300
300
300
300300200
200
200
200200100
100
100
100100
0
0
0
0 0

332
332
332
332332120
120
120120120
97
97
62
97
97 62
97
22
62
62 22
62
22
2018
22 22
2018
2018
2018
2018

167
167
167
167167
159
159
159
159159143
143
143
143143169
169
169
169169
2019
2019
2019
2019
2019

258
258
258
258258161
161
161161161135135
135135135
2020
2020
2020
2020
2020

128
128
128
128128176
176
176176176164164164164164248
248
248
248248
2021
2021
2021
2021
2021

4e trim4th quarter4ee trim
4
trim
e
trim
3e trim
4e trim4
3rd quarter3ee trim
trim
3ee trim
2
3e trim
3e trim
2 e trim
2nd quarter
2eer trim
trim
12e trim
trim
2
trim
1er
1er trimst
1er trim
1er 1
trim
quarter

Change in the number of seizures under the Swiss joint intervention request

instigated by a few self-proclaimed experts who have made abusiness out of comparing counterfeits on the internet, particularly on specialist forums. Chinese distributors looking fora way of distinguishing themselves from their competitors anddistributing their products for less have been quick to grasp
the benefits of categorising products in this way. Ultimately,a label is simply a means of persuasion. In the world of fakes,
the key is not telling the truth but making people believe.
The label is therefore used by Chinese wholesalers to distinguish different product ranges and price segments in
response to requests from their sales networks. A label gives
the product a veneer of exclusivity that artificially enhances
its appeal. This allows the distributor to drive demand while
keeping supply under control, which increases the price ofthe product. As a perfect application of the principles of amarket economy, there is a certain irony in this little lessonin capitalism delivered by the heirs to Mao Zedong. One thingis for sure: in terms of damage to their image for the brands
concerned, labelled products of this kind offer much morepotential for harm than current products, even though they
currently represent only a tiny portion of the global market.

How can we define a labelled counterfeit and what does it
have that others lack? A counterfeit watch is a complex assembly of diverse elements. For the counterfeiters, the issue issqueezing every last penny of profit out of the process, without
any unnecessary effort. Quality criteria are therefore appliedin a highly differentiated manner. Within this process, thelabel becomes in some sense a “specification”, telling the
producer which component or part of a component shouldbe the focus of particular attention.
Around 30 labelled samples were examined in detail by FH
watchmakers in 2021, and offered some interesting lessons:a fake watch with a label stands out from other counterfeits
mainly as a result of the materials chosen, along with a significantly improved level of finishing and quality of assembly
on both the movement and the external parts.
In general terms, the technical investigations carried out onlabelled fake watches show that the wholesalers are relying on
their usual, well-established networks of manufacturers, which
ultimately obeys a certain industrial logic. However, these same
wholesalers demand particular attention to the quality, finishing32

Manufacturer
network

Chinesewholesaler

Reseller
network
Labelled counterfeits: an ingenious coding systemcreated by Chinese wholesalers

and assembly of the components, in a clearly defined order, in
return for payment for the optional service that will ultimately
earn them a label. Chinese distributors have taken on board thefact that labelled products sell for between two and four times
the price of their non-labelled counterfeits, thus offering muchhigher margins. To take matters to their logical conclusion, a
few large distributors have had no hesitation in negotiatingexclusive deals with their suppliers on certain components orchanges to movements, which gives their label an undeniable
competitive advantage.
NF (Noob Factory) was the first unofficial label to appear. Since
then, the word “factory” – or simply the letter “F” – have thrived
and been associated in turn with all the letters of the alphabet,or a number. Each new development, whether technical or
aesthetic, now prompts the creation of another label, which
explains, to some extent, why they have multiplied. The ironyof the story: some labels are now themselves counterfeits.

33Standardisation
With the help of its Standardisation Committee (SC), the FH
coordinated and contributed to the progress of several national(NIHS), European (CEN) and international (ISO) projects.
Because of the health situation, numerous working meetings
were held either solely by videoconference or in hybrid mode,with some of the participants attending in person.
The main projects in relation to national standards were thefinalisation of a series of four standards on miniature threading, along with the publication of standards on the impacts
that watches withstand during wear. It was also decided torework the standard on the chemical and climatic resistanceof the external parts of watches, to incorporate tests using
chlorinated agents, cosmetics and ozone.
The FH was asked by the Swiss Association for Standardisation (SNV) to provide the secretariat for the interdisciplinarycommittee INB/NK 164 - Jewellery and Precious Metals, aninstitution that mirrors the four corresponding committees at
European and international level. Working in cooperation withthe appointed experts, the secretariat is therefore responsible
for acting on the votes initiated by these committees and thenforwarding a representative position statement for the wholeof the Swiss industry to the SNV. Over the past year, around
15 votes were coordinated and two plenary meetings held,in February and September. These covered the follow-up to
draft standards, in particular those affecting the watchmaking industry more directly. Updating the action plan will also
ensure better follow-up of tasks and activities handled by the
INB/NK 164 committee.
In terms of international standardisation, 2021 stood out primarily for the ISO/TC 114 conference which, for the first timein its history, was unable to be held in person and therefore
took place by videoconference, from 17 to 21 May. Several
topics were discussed with the delegations from Germany,
China, France, Hong Kong, Japan, the United Kingdom, Russia and, of course, Switzerland. The Swiss delegation, thetranslator, and the ISO presidency and secretariat were able to
make use of the FH’s premises and infrastructure to meet andwork locally in excellent conditions. The revision of standard
IEC 60086-3 - Watch batteries resulted in the publication ofa new version in April 2021. The changes mainly concerned
tolerances in dimensions, which were tightened. Althoughstandard ISO 22810 - Water-resistant watches is not officiallybeing revised, trials of water-resistance tests have continued
and several delegations were able to present their research inthis area, highlighting the influence of various parameters on
the test results. The sub-committee on luminescence contin-

ued its work on revising standard ISO 17514 - Time-measuring
instruments - Photoluminescent deposits - Test methods andrequirements. With regard to watch glasses, the Swiss delegation proposed launching a consultation on the potential addition of a number of definitions and four tests to standard ISO
14368-4 on anti-reflective treatments, to check for resistanceto scratching, wear, ultrasound and cosmetic products. During the last systematic examination of standard ISO 6426-2 Horological vocabulary - Part 2: Technico-commercial
definitions, the French and Japanese delegations requested arevision for the purpose of amending certain definitions to alignthem with other standards and add new ones, for example,“connected watch”, “radio-synchronised timepiece”, “manufacture”, “watch assembly” and “movement assembly”. Given
the multiplicity of national laws and the difficulties encounteredwith countries that do not have clear guidelines, the Swissdelegation proposed a potential new standard on good commercial practices. This would not be a binding document but
would only contain recommendations based on the content
of a self-declaration. The proposal was accepted just before
the end of the year, so work on the topic can now officiallybegin. The conference ended with each delegation offering
its thanks to president Silvano Freti, who completed his termof office at the end of 2021 and was succeeded on 1 January2022 by Raphaël Schwarz, who specialises in regulatory affairs
at the FH.

34

Legal and economic services
Several services are available on the FH extranet site. These
are reserved for members, giving them access to privileged
information and useful working tools. Topical news items linked
to FH activities or matters of direct concern to members are
updated regularly.

Legal services
The world is constantly changing, with new technologies emerging that require an appropriate legal framework. In 2021, theFH was confronted for the first time with the issue of NFTs
(non-fungible tokens) in the watchmaking industry. NFTs area recent phenomenon in the sector. They are linked to blockchain technology, and are digital files to which a certificate ofauthenticity has been attached. Already well known in the art
world, NFTs are gaining traction across the board, includingin the watchmaking sector. Enticed by the idea of making a
profit, those who instigate sales of NFTs tend to forget that theprotection of intellectual property rights does not stop at theborders of the real world, but also applies in the digital arena.
It is therefore perfectly possible to object to the sale of an NFT
involving a trademark, design or even an image protected bya watch brand’s copyright. Accordingly, the FH has supported
and advised several of its members in their actions against
sellers of NFTs that used protected trademarks and designs
without the consent of the rights holder.
As usual, the legal department intervened on several occasions
in connection with various consultation procedures related toactivities in the Swiss watchmaking industry. One example was
the revision of the regulation on category-specific exemptions
applicable to vertical agreements and the relevant EU guidelines. European case law has established a clear frameworkfor selective distribution networks, which are very important
for the sale of premium products. Along with other umbrellaorganisations and individual businesses in the luxury sector,
the FH defended these benefits and made its position clear tothe legislature. In Switzerland, the FH also contributed to theconsultation on the revision of customs legislation, to emphasise the major role played by the customs authorities in seizing
products that infringe intellectual property rights.
Corporate due diligence is becoming an increasingly important topic in Switzerland and internationally. Accordingly, theFH has paid particular attention to the new ordinance on due
diligence and transparency in the areas of minerals and metals sourced from conflict zones, and child labour. While theresponsible approach to these issues by Swiss businesses is

not in doubt and they are happy to set a positive example, it isimportant to avoid unrealistic demands. These developments
are systematically analysed by the FH and discussed by the
Legal Affairs Commission.
The regulatory affairs arena continues to expand and requires
particular attention. The FH successfully objected to newhallmarking obligations on gold watches in India, as well as
requesting the revision of a new Chinese standard with negative consequences for watchmaking, and contributing tonumerous other consultation procedures at the national andinternational level. It also intervened on several occasions to
object to a disadvantageous imports regime in Turkey, as partof an economic mission led by the State Secretariat for Economic Affairs. Several guides have been produced to support
FH members in implementing these increasingly complex
regulations and requirements.

Economic services
FH members have access to extensive statistical and economic information, particularly through the extranet site. This
provides access to the complete database of watch export
statistics, quarterly analyses of trends in the market in themagazine Tendances and information on exports from othermajor global players. Members can also sign up to receive theweekly Tendances newsletter, which focuses specifically on
the watch market.

35

Relations with the authorities andeconomic circles
Watchmaking associations
The year’s usual meeting of watchmaking associations at theHong Kong Watch & Clock Fair was cancelled and replaced
by a video conference, with the FH represented by the headof its Hong Kong office, Thierry Dubois. Among other things,
the participants discussed trends in the sector in their country or region.

Swiss authorities
The FH intensified its contacts with the Swiss authorities toprovide detailed, regular updates on the sector in light of themeasures taken by the Confederation and the cantons aspart of their efforts to combat the consequences of the pandemic. Accordingly, the president of the FH took part in all theround tables organised by the president of the Confederation,
Guy Parmelin.

economiesuisse
As an active member of economiesuisse, the FH is represented
on the following bodies: General Meeting (Jean-Daniel Pasche,FH), Committee (Thierry Kenel, Swatch Group, Me Theda
Koenig Horowicz, Rolex, and Cédric Bossert, Richemont),
Executive Committee (Thierry Kenel, Swatch Group), Board
of Association Managers (Jean-Daniel Pasche, FH), Legal
Commission, WTO Working Group, Working Group on questions of origin and customs issues, Expert Group on intellectual property, Working Group on short-term economic
issues, Expert Group on relations with the European Union,
Competition Commission.
It was heavily involved in discussions within economiesuisse toensure that the efforts of the watchmaking sector were taken
into account in the messages sent out by the umbrella association for the Swiss economy, particularly those aimed at the federal authorities. Most meetings were held by video conference.

Thierry Dubois (centre) and moderators at the meeting held
during the Hong Kong Watch & Clock Fair

Standing Committee of the European Watch
Industry (CPHE)The Standing Committee of the European Watch Industry(CPHE) held a meeting in Furtwangen in the Black Foreston 15 October 2021, chaired by Jean-Daniel Pasche andwith delegates from Germany, France, Italy and Switzerland
in attendance.
The analysis of the economic situation obviously highlighted
the severe downturn in activity in 2020, but also the fasterthan expected recovery since the start of the year underreview. In general terms, the pandemic also accelerated anumber of underlying trends, while shifting the balance insome areas, resulting in a polarisation of markets and products, an increase in online sales and the second-hand market,
and changes in consumer behaviours and values.
An update on a number of regulatory affairs was provided. With
regard to the European Union, the CPHE confirmed its positionon two occasions, explicitly requesting the cancellation of theban on non-rechargeable primary batteries envisaged in thereview of Directive 2006/66/EC on batteries and accumulators.
The interim report from the Öko-Institut, published in June 2021,
includes a range of options and suggests, to the FH’s satisfaction, that the aforementioned ban should not be implemented.

36

Maurice Altermatt, Guido Grohmann, Mario Peserico, Jean-Daniel Pasche, Claude Vuillemez, Agnès Besnard, Pierre Burgun,
Patrice Besnard (from left to right)

The plan to restrict the use of undecafluorohexanoic acid, which
is currently being examined under the REACH regulation, ispotentially very problematic for the sector, insofar as it aims
to limit the production, use and marketing of the substance.
This has a direct impact on epilams – solutions that prevent
lubricants from spreading – which are essential for the proper
functioning of mechanical and quartz movements. An exemption for watchmaking is therefore needed.
A lot of attention is also being focused on the review of the
REACH regulation, which aims to provide better protection
for consumers and the environment. Its objectives are ambitious and include an acceleration of authorisation procedures
and a review of registration obligations (with the possibility ofrequests for new information) as well the establishment of theconcept of “essential use” and the treatment of substances in
product families.

In France, the future impact of laws to combat waste and support a circular economy affects the watchmaking sector inseveral ways, including the provision of spare parts, time scales
for repairs, a repairability index and the publication of environmental information.
In late 2021, the CPHE was in contact with the World Trade
Organization with regard to the draft Chinese standard on hazardous substances for watches (see Highlights section, page 17).
In terms of geographical indications, the trademark “Madein Glashütte” is likely to be granted exclusive protection forwatches at the request of the manufacturers concerned. The
European Union notification procedure required is currently
underway and the implementing ordinance could come into
force in 2022. In France, the Hamon Act of 2014 expanded
the benefit of geographical indications to the industrial and37artisanal sectors. Work on a “Made in France” label for watches
is set to resume in terms of defining the terms and conditions
and determining the criteria that should be used to establish
a French indication of origin.
There have also been discussions on the issue of classifying
connected watches in the Harmonized System given that, inthe absence of a binding decision from the World Customs
Organization, each national customs administration can currently choose to classify them in either Chapter 85 (electronic
products) or Chapter 91 (clocks and watches).
Finally, delegates noted the increasing number of watch trade
fairs in Switzerland and as a result, the increasingly sharp divide
between fairs dedicated to high-end watches, and those forother products. Numerous trade fairs and exhibitions are stilltaking place at the international level, in particular in the jewellery sector, not including other, more local, targeted events.
According to the alternating presidency rule, the European
delegation will head the CPHE for 2022–2024, represented
by Mario Peserico, president of Assorologi.

38

FH centres abroad

The seminar organised by the FH Centre in Tokyo attracted over 100 participants
The health situation, successive restrictions and other emergency responses complicated life for the FH Centres in Hong
Kong and Tokyo for the second year running.

FH Centre in Hong Kong
The year under review remained dominated by the total absenceof Chinese customers in Hong Kong, therefore creating a very
difficult market for watches. The success of the tax-free statusof the Chinese island of Hainan clearly did nothing to support a
recovery in the local market. Nonetheless, the FH Centre resolutely pursued its activities to support the sector as a whole andthe association’s members in particular. First, it provided regular
information updates to the central office and to members on
the changes in the market situation as the months passed. It
also continued to offer practical support to several subsidiaries
or local representatives of brands in areas as varied as introducing commercial or industrial partners, in Hong Kong, China
and elsewhere in the region, identifying new staff or providing
personal support for visits to markets in south-east Asia.

The Hong Kong Centre also responded to numerous requests
from FH members, especially in the legal field and on preventing counterfeiting throughout the region. In particular, it provided assistance to many brands to facilitate their registration
with the Chinese and Korean customs authorities. Similarly, it
conducted several dozen investigations of local companies andfiled numerous objections each month against the registrationof marks in Class 14 (watch industry), both in Hong Kong andelsewhere in the region.

FH Centre in Tokyo
On the Japanese market, the Tokyo centre provided support to FH members and their local agents, by supplying
commercial information, establishing business contacts andproviding linguistic assistance, among other things. It also
responded to requests from the media and maintained aclose relationship with local professional organisations anddiplomatic representations, as well as responding to specificrequests received on a daily basis from Japanese consumers
or companies.

39

In addition, it provided regular assistance to consumers in
the form of after-sales services, as certain brands no longer
provide maintenance for older models. This is one of the reasons it also manages an after-sales service pool for a number
of Swiss brands.

FH seminar
The conditions under which the Tokyo centre organised its fifth
information seminar for FH members and their local representatives were once again driven by the pandemic. Nonetheless, no fewer than 92 brand representatives met in a seriesof groups at the Mandarin Oriental hotel in Tokyo on 4 and 5
November. The presentations and discussions focused mainlyon the use and interpretation of the results of the two-yearlysurvey on watch consumption, and identifying the brands’
future needs in this area.

Media relations
At the end of the year, the FH centre also organised a meetingwith various Japanese media representatives from the general press and specialist magazines, in particular to provide
them with more detailed information on its activities and theservices it can provide to them about Swiss watchmaking,including sector and company news, new products and statistics, among others. The 20 or so participants praised theinitiative, the first of its kind, which also proved to be a welcome opportunity for discussion and networking.

Meeting with the Japanese media

watch.swiss Japan
Despite very strict and often changing health restrictions, theFH Centre in Tokyo still managed to present the travellingexhibition watch.swiss Japan four times during the year. The
exhibition schedule began in Tokyo in the early spring, as
part of the Watch Fair organised by the department store
Odakyu Shinjuku, which stands in the railway station thatserves the famous neighbourhood of the same name. As it
happens, the station holds the record for the highest numberof daily passengers in Japan. The FH exhibition then travelled
to Miyazaki, on the island of Kyushu, to join a week-longpromotional event organised in May by a large watch retailer
with official distribution rights for several Swiss brands. The

watch.swiss Japan was presented at the Odayakyu Shinjuku department store in Tokyoand then at Hidaka Honten Proshop in Miyazaki

40watch.swiss Japan at the Takashimaya department store in Nagoya

third step on the Japanese tour was the city of Nagoya, where
watch.swiss Japan was presented on two occasions: for over amonth (27 July to 31 August) as part of the Grand Opening of
the Takashimaya shopping centre, and then at the traditional
Precious Watch Fair organised at the end of November by the
Matsuzakaya department store.

As an additional attraction that is still very popular with ourvarious retail partners, watch.swiss Japan was able to fulfil
its mission with both the Japanese public and the VIP customers who are regularly invited to these events. The initiative
was supported by several promotional activities, starting withtargeted campaigns on social media and advertisements on
websites that specialise in watches.

41

Inside the FH
Replacement of computer systems

Continuing professional development

An address and document management system was developed internally in the 2000s. Known as EDM – for Electronic
Document Management – a pioneering term at the time, theprogramme consisted of around 20 different modules fulfilling
numerous functions, ranging from registering new members
to sending out minutes or importing statistics. An assessment
carried out in 2020 indicated the need to replace the EDM
system on the grounds of technological obsolescence anduser-friendliness.

The FH has always encouraged its employees to improve or
diversify their professional knowledge and several employees
completed their training in 2021. In spite of the challenges offollowing courses that were sometimes delivered online, alladapted to the new situation and obtained their qualifications,with some excellent marks. They were:

The plan to renew this complex database, appropriately named
ODYSSEE, was launched in the spring of 2021, with the main
aims being to:

◆

◆
◆

◆
◆

◆
◆

◆

Develop a flexible, modular address and contact
management system,
Communicate with members through various channels,
Have access to a sophisticated document
management system, to manage the various files inprogress according to the needs of each division orservice,
Plan tasks according to the specific processes ofcertain departments.

It was decided to use OnBase software, which offers a comprehensive solution incorporating documents, processes andstructured data. Implementing the new system will ensure
easier, more fluid working processes and remove the technicaland functional obstacles encountered with EDM.
This “odyssey” involved most, if not all, FH employees during
all or part of 2021, first in analysing the various processes tobe created, and then in functional testing. The development
was 90% complete by the end of 2021, with just a few areas
still to finalise. Deployment is scheduled for spring 2022.

◆◆

Florian Blanchard:
CAS – Strategic drafting in communications
Emilie Bessire: Accounts assistantMarielle Henchoz:
CAS – Written communications techniques
Nani Illescas: Accounts assistant
Maxime Stoll: Finance and Accounts specialist –Federal certificate
Romain Vizzarri (intern): CFC – Sales employee –Commercial certificate

The FH thanks them for their commitment and congratulates
them on their success.

The Swiss watch

43

industry in 2021
The statistics processed, distributed and analysed by the FH
are a key indicator for the sector. Prepared by the Federal
Customs Administration on the basis of declarations madeby firms, they constitute the main official, regular and reliable
source for monitoring the development of watch exports.
Through a wealth of detailed information concerning markets,
products and price segments, the FH can pinpoint recent or
historic trends in the Swiss watch industry.

44

Watch industry statistics
General situation
While the Covid-19 pandemic continued to make its presence
felt throughout the year, its consequences for the watch market
proved less severe. Overall, luxury personal goods benefited
from the sharp increase in demand in China and the UnitedStates, additional opportunities created by digitalisation, theuse of savings accumulated during the various lockdowns andmore significant restrictions on luxury experiences, particularly
tourism-related activities. While travel retail suffered from thedecline in tourism, an increase in domestic purchases, a switch
to digital channels and the development of the duty-free market
in Hainan offset losses to some extent.
The return to pre-crisis levels in early autumn and the acceleration of growth in the fourth quarter led Swiss watch exports
to exceed the previous record set in 2014. The industry thus
showed great resilience, doing its utmost to satisfy demand, inconditions that are still often difficult. It was also able to benefit
from the Confederation’s support measures, which in particularenabled it not to reduce its workforce.

Swiss watch exports (in billion francs)

Despite the encouraging results overall in 2021, stark discrepancies exist between the various actors in the luxury sector
and in Swiss watchmaking. Growth is being driven more bya set of brands than by product categories as in the past,
while others are proving less successful and in some cases,
suffering significant declines. The same polarisation is being
seen in markets and price segments, as evidenced by the
decline in volumes. This can be explained in part by current
economic factors associated with the pandemic – which are
by definition temporary – but also, more worryingly, by structural changes, to which the sector must respond and adapt.

Swiss watch exports
The return to pre-crisis levels as early as September andpositive performance in the fourth quarter produced the bestever annual results for the sector, at 22.3 billion francs, 2.7%
higher than in 2019 (+31.2% compared with 2020) and a
0.2% improvement over the 2014 record.

45

Main markets
Among the main regions, America (+21.7% compared with2019) recorded the strongest growth thanks to the UnitedStates, absorbing 17% of Swiss watch exports. In Asia (+1.0%),
growth in China was offset by often marked declines in mostother markets on the continent. Its market share was 52%.
Europe fell overall (-3.4%), with a market share of 29%.

Exports of wristwatches (in billion francs)

Swiss exports of watches
Exports of wristwatches increased by 3.5% compared with2019, to 21.2 billion francs. The number of items, however,continued to fall, to 15.7 million. This is a decline of 4.9 million(-23.8%) compared with 2019.

Exports by price range

The United States (+27.8%) witnessed remarkable growththroughout the year and was once again the leading market
for Swiss watch exports. China (+48.8%) came in just behind,thanks to continuing steady growth. Between them, thesemarkets represented 27% of total value and accounted formost of the growth observed.
Hong Kong (-20.7%), Japan (-11.9%) and South Korea(-18.7%) all saw sharp falls. Conversely, Singapore (+0.6%)
returned to its 2019 level, while the United Arab Emirates(+6.4%) outstripped it.
In Europe, the United Kingdom (-2.4%) fared better but still
declined and Germany (-5.9%) recorded a notable fall, while
the situation remained challenging in France (-11.2%), Italy(-11.5%) and Spain (-12.9%). The Netherlands (+12.6%) grewstrongly, probably for logistical reasons.

Watches priced at less 500 francs (export price) fell sharply,
accounting for over 95% of the decline in volumes, with a
25.1% drop in their export value. The decline in value forwatches priced between 500 and 3,000 francs was significantly less marked (-3.5%), while watches priced at over
3,000 francs grew by 9.7%.

Exports by material
The groups of materials that saw the highest decline in volumes were steel (-21.4%) and the Other materials category(-37.4%). Value was driven mainly by watches made fromprecious metals (+7.8%) and steel (+2.9%).

Exports by price segment (variation compared with 2019)

46

Europa6,399.3-3.4%

America
3,840.2+21.7%

Asia
11,606.8+1.0%

Africa151.3-16.5%

Oceania299.2+11.1%
World
22,296.7+2.7%
Total value of exports in 2021 in million francs, variation compared with 2019

Other exported products
Wristwatches accounted for over 95% of the value of Swiss
watch exports. The sector also exported other products, suchas watch movements, alarm clocks, other clocks and pocket
watches, as well as components, mainly for after-sales service.
Together, these amounted to the equivalent of 1.1 billion francs,
a decline of 10.9% compared with the reference year of 2019.
Exports of wristlets, watch cases and dials, which were down
by 4.9%, are largely attributable to processing traffic.

47

Watch imports
Swiss watch imports remained significantly lower than in 2019,declining by 13.5% to 3.3 billion francs. Finished products(watches, alarm clocks and other clocks) accounted for 60%
of imports and fell by 9.0% on average. Imports of components also contracted sharply (-19.7%).

Swiss watch imports (in billion francs)

Main export markets in 2021

Structure of

49

the FH in 2021
An organisation representative of the Swiss watch industry as
a whole, the FH has the following main tasks and objectives:
helping to defend and develop the sector, establishing a permanent link between its members in order to promote theirshared interests, representing the Swiss watch industry in its
dealings with Swiss and international economic authorities andorganisations, asserting the interests of its members duringconsultation procedures preparing the ground for nationaland foreign legislations, defending its members’ interests inthe legal arena, and fighting actively against infringements
of intellectual property rights and acts of unfair competition.

50

The FH in 2021
On 31st December 2021, the FH included 452 companies,
associations and institutions (approximately 90% of the Swiss
watch industry manufacturers), including 174 firms in the fin0ished products sector. In terms of products, markets andbusiness size, the Swiss watch industry is characterised by itsvery great diversity. The FH is therefore structured with a viewto harmonising the different interests of its members throughthe balanced composition of its statutory organs.

General Meeting
60 delegatesCouncil20 delegates

Bureau4 members

Presidency

Commissions

51

The General Meeting
Governing body of the association, the FH General Meeting
comprises a maximum of 60 delegates totalling 60 votes. Lasting three years, terms of office are renewable.

bers to the Board, as well as the president of the association,
and appoints the auditor; it discusses and approves the annual
report and the accounts, as well as the scale of subscriptions.

The General Meeting takes decisions on issues submitted to
it by the Board concerning the interests of the Swiss watch
industry and the association’s general policy; it elects mem-On 31st December 2021, the FH General Meeting was composed of the following delegates (some with more than
one vote):

Grégory Affolter
Affolter Group SA

Dino D’Aprile
Rubbattel & Weyermann SA

Pierre-André Meylan
Piguet Frères SA

Patricia Carla Rodrigues de O.S.
Antunes
Gucci Swiss Timepieces SA

Pascal Dubois
Dubois Dépraz SA

Corine Neuenschwander
Neuenschwander SA

Karlheinz Baumann
Richemont International SA
Elie Bernheim
Raymond Weil SA
Jérôme Biard
Roventa Henex SA
Guillaume Boilot
TAG Heuer, Branch of
LVMH Swiss Manufactures SA
Antony Boiteux
Werthanor SA
Jean-Sébastien Bolzli
Aéro Watch SA
Cédric Bossert
Richemont International SA
Patrick Brandelet
Joray & Wyss SA

Joris EngischJean Singer & Cie SA
Christian Feuvrier
Nivarox-FAR SA
Arianna Frésard
Victorinox Swiss Army SA
David Guenin
Gimmel Rouages SA
Philippe Gurtler
Rolex SA
Lars Kästle
Breitling SA
Thierry Kenel
The Swatch Group SA(FH Vice President)
Sébastien LangLouis Lang SA

Marianne Pandiscia
Multitime Quartz SA
Jean-Daniel Pasche
FH President
Flavio Pellegrini
MGI Luxury Group SA
Alain Sierro
Fraporlux SA
Manuela Surdez
Goldec SA
Alberto Tellan
Manufacture des Montres Rolex SA
François Thiébaud
Tissot SA
Pierre Verdière
La Montre Hermès SA

Pascal Bratschi
Manufacture des Montres Rolex SA

Aurélien Le Bigot
Zenith, Branch of
LVMH Swiss Manufacture SA

Pierre-André BühlerETA SA Manufacture horlogère suisse

Giuseppe Maesano
Universo SA

Andreas Voll
IWC Schaffhausen,
Branch of Richemont International SA

Jérôme Cavadini
Richemont International SA

Alain Marietta
Métalem SA

Vladimiro Zennaro
Bergeon SA

52

The Board
Comprising twenty members elected for three years by theGeneral Meeting, the FH Board, which meets four times a year,
has the following main attributions: it defines the association’s
policy and monitors its application; it rules on the admission ofmembers; it gives its opinion on issues to be submitted to theGeneral Meeting and executes the latter’s decisions; it elects the
Bureau and appoints the vice-president(s); it appoints headsof division and commission members; generally it assuresa permanent link between members of the association, theauthorities and third parties; it approves agreements concluded
between the association and its members or third parties; etc.

Raynald Aeschlimann
Omega SA

Lars Kästle
Breitling SA

Karlheinz Baumann
Richemont International SA

Thierry Kenel
The Swatch Group SA

Jérôme Biard
Roventa-Henex SA
Guillaume Boilot
TAG Heuer, Branch of LVMH Swiss Manufactures SA
Cédric Bossert
Richemont International SA
Matthias Breschan
Compagnie des Montres Longines, Francillon SA
Pierre-André BühlerETA SA Manufacture horlogère suisse
Christian Feuvrier
Nivarox-FAR SA

On 31st December 2021 the Board was composed of the following members:

Sébastien LangLouis Lang SA
Alain Marietta
Métalem SA
Jean-Daniel Pasche
FH
Aubin Robert-Prince
Robert Laminage SA
Alain Sierro
Fraporlux Swiss SA

Arianna Frésard
Victorinox Swiss Army SA

Alberto Tellan
Manufacture des montres Rolex SA

Philippe Gurtler
Rolex SA

Andreas Voll
IWC Schaffhausen, Branch of Richemont International SA

53

The Bureau and the Commissions
Comprising the president, the two vice-presidents and one or
two members, the Bureau examines issues delegated to it by
the Board and, exceptionally, questions of an urgent nature.

The FH also has six permanent Commissions responsible
for examining issues of general interest dealt with by the
association.

At the end of 2021, its composition was as follows:

The Commissions and their presidents:

Jean-Daniel Pasche
FH

Economic Commission
Thierry Kenel

Carole Décosterd
Rolex SA

Financial Commission
Pascal Bratschi

Thierry Kenel
The Swatch Group SA

Legislative monitoring Commission
Olivier Blanc

Alain Marietta
Métalem SA

Legal Affairs Commission
Jean-Daniel Pasche

The president of the Financial Commission is regularly invited
to attend the Bureau’s meetings.

Standardisation Committee
Silvano Freti
Anticounterfeiting Group
Jean-Daniel Pasche

54

The Divisions and the Departments
At 31 December 2021, the FH employed 32.7 full-time
equivalent staff in Bienne (32.5 in 2020). Its organisation chart
is as follows:

Presidency
Jean-Daniel Pasche

Communication
Philippe Pegoraro

Information Department
Janine Vuilleumier

Economic Division
Maurice Altermatt

Legal Division
Yves Bugmann

Adminstrative Division
Alain Guillaume

External Affairs
Department
Maurice Altermatt

Legal Department
Yves Bugmann

Administration
Department
Alain Guillaume

Economic and Statistical
Department
Philippe Pegoraro

Anticounterfeiting
Department
Michel Arnoux

Information Technology
Department
Fabrice Erard

Promotional Affairs
Department
Hélène Leonardi

NIHS Department
Patrick Lötscher

FH Hong Kong Centre
Thierry Dubois

Internet Unit
Yves Brouze

FH Japan Centre
Ayako Nakano

55

The network of partners
The FH would be nothing in the globalised world without asolid network of partners, which can be found both within andoutside the sector on all five continents. Non-exhaustive, thelist below provides a summary of this network.

Watchmaking partners◆

All India Federation of Horological Industries◆

Hong Kong Watch Manufacturers Association◆

American Watch Association (AWA)◆

Infosuisse Information horlogère et industrielle◆

Japan Clock and Watch Association◆

Japan Watch Importers’ Association

◆

◆

◆

◆

Association des fabricants de décolletages et detaillages (AFDT)
Association patronale de l’horlogerie et de la
microtechnique (APHM)◆

Association patronale des industries de l’Arc-horloger
apiah

◆

Korea Watch and Clock Industry Cooperative◆

Société suisse de chronométrie (SSC)

Association pour l’assurance qualité des fabricants debracelets cuir (AQC)◆

Association suisse pour la recherche horlogère (ASRH)◆

Associazione Ticinese Industria Orologiera-ATIO◆

Assorologi (Italy)◆

BV Schmuck + Uhren (Germany)

◆

◆

◆

◆

Centre suisse d’électronique et de microtechnique(CSEM)
Centredoc Centre suisse de recherche, d’analyse et desynthèse d’information◆

Joyex - Asociación Espagñola de Fabricantes y/oExportadores de Joyería, Platería y Relojería

The Federation of Hong Kong Watch Trades &Industries Ltd
Union des Fabricants d’Horlogerie de Genève, Vaud etValais (UFGVV)
Verband deutschschweizerischer Uhrenfabrikanten(VdU)

Federal administration◆

Bureau central du contrôle des métaux précieux◆

China Horologe Association◆

Commission des experts douaniers◆

Comité permanent de l’horlogerie européenne (CPHE)◆

Swiss Federal Institute of Intellectual Property (IPI)◆

Contrôle officiel suisse des chronomètres (COSC)◆◆

Convention patronale de l’industrie horlogère suisse (CP)◆Fédération de l’horlogerie (France)◆

Fédération romande des consommateurs (FRC)◆

Fondation de la Haute Horlogerie◆

Présence suisse◆

Fondation Qualité Fleurier◆State Secretariat for Economic Affairs SECO◆

Fondation WOSTEP◆France Horlogerie Industries du Temps et desmicrotechniques◆◆

Office fédéral de la douane et de la sécurité desfrontières (OFDF)
Office fédéral de la santé publique (OFSP)
Office fédéral de la sécurité alimentaire et des affaires
vétérinaires (OSAV)

56

Chambers of commerce◆◆

Alliance of Swiss Chambers of CommerceArab-Swiss Chamber of Commerce and Industry(CASCI)◆

International Chamber of Commerce international (ICC)◆

Swiss-Chinese Chamber of Commerce◆

Swiss-Indian Chamber of Commerce◆

Joint Chambers of Commerce (Russia, Ukraine,
Kazakhstan, Belarus, Kyrgyzstan, Moldova)

Customs and police organisations◆

Agenzia delle Dogane, Roma◆Commandement général de la Guardia Civil (Espagne)◆◆

Commandement général de la Guardia di Finanza(Italie)
Direction générale des douanes et Droits indirects dela République française

◆Europol◆

Federal Bureau of Investigation (FBI)Interpol◆Swiss-Asian Chamber of Commerce◆◆

Swiss Business Council Abu Dhabi◆

Police cantonale de Neuchâtel◆

Swiss Business Council Dubai◆

Police cantonale du Jura◆

Swiss Chamber of Commerce in Japan◆

U.S. Customs and Border Protection◆

World Customs Organization

Economic organisations◆

BUSINESSEUROPE◆

economiesuisse◆

Switzerland Global EnterpriseTechnical organisations

Organisations involved in standardisation◆

Association française de normalisation (AFNOR)◆

British Standards Institution (BSI)◆

Bureau of Indian Standards (BIS)◆

Comité européen de normalisation (CEN)
Deutsches Institut für Normung (DIN)◆CIBJO – The World Jewellery Confederation◆

Comité FRANCECLAT◆◆◆

Ecole d’ingénieurs ARC◆

International Electrical Committee (IEC)◆Tokyo Watch Technicum

Federal Agency on Technical Regulating and Metrology(GOST R)◆International Organization for Standardization (ISO)◆Japanese Industrial Standards Committee (JISC)◆

Korean Agency for Technology and Standards (KATS)◆

Standardization Administration of China (SAC)◆

Swiss Association for Standardization (SNV)57

Anticounterfeiting organisations
◆
◆

◆
◆

◆

Anti-Counterfeiting Group (ACG)
Brandowners Protection Group (Gulf Cooperation
Council)Ecole des Sciences Criminelles, UNIL
INDICAM - Associazione italiana per la Lotta alla
Contraffazione
STOP PIRACY – Plate-forme suisse de lutte contre lacontrefaçon et la piraterie◆

Swissness Enforcement◆

The Anti-Counterfeiting Network (REACT)◆

Union des fabricants

Legal organisations◆

Association internationale pour la protection de la
propriété intellectuelle (AIPPI)◆Association suisse du droit de la concurrence◆

Association suisse du droit européen◆

Commission européenne, DG Environnement◆

International Trademark Association (INTA)◆

Ligue internationale du droit de la concurrence◆

Organisation for an International Geographical
Indications Network (Origin)

Rue d’Argent 62502 Biel/Bienne
Switzerland

info@fhs.swiss
www.fhs.swiss
Tél. +41 32 328 08 28