Lonely Wrist: All Things Watches & Horology
Lonely Wrist dives deep into the intricate world of watches, unearthing the stories, craft, and passion behind every ticking piece. From timeless classics to modern marvels, this podcast winds through the history, mechanics, and cultural significance of timepieces. Whether you're an avid horologist or just someone who admires the beauty of a well-crafted watch, Lonely Wrist offers a unique perspective, uniting enthusiasts and curious minds. Join us every episode as we explore the art of watchmaking, discuss the latest trends, and interview watch industry experts, all while appreciating the silent yet profound voice of every watch's lonely wrist.
Lonely Wrist: All Things Watches & Horology
Heritage Meets Innovation: Junghans CEO Olivier Zaugg's Journey in the American Watch Market
Discover the captivating world of Junghans watches with Olivier Zaugg, the president of Junghans USA. Join us as he shares the compelling story of Junghans’ journey from its inception in 1861 to its ambitious expansion into the North American market. Through engaging conversations, Olivier unveils the unique challenges and strategic decisions involved in establishing the brand's own subsidiary, highlighting its commitment to blending heritage with modernity. We promise listeners a deeper understanding of how Junghans stays true to its roots while innovating with timepieces like the cherished Max Bill and limited production models.
Explore the intricate craftsmanship and German engineering that set Junghans watches apart, with a special focus on the brand's efforts to establish its presence in America. Despite facing challenges in brand recognition outside of Germany, Junghans maintains a competitive edge within local German communities. Listen as we delve into consumer trends, including the demand for varied watch sizes and the rise of eco-friendly technologies, such as solar-powered materials. You'll learn how Junghans is adapting its strategies to align with the evolving preferences of the American market, marrying traditional designs with technological advances.
Experience Junghans’ vision for a sustainable future, from the historic Terrassenbau building designed for energy efficiency to innovations in radio-controlled and solar-powered watches. Olivier shares insights into the brand’s latest product developments and its plans for global expansion. We discuss the importance of building strong relationships with retailers and consumers, while highlighting Junghans' efforts to provide education and service that reflect its unique story. Tune in to explore the brand's ongoing journey and the exciting road ahead as it seeks to balance timeless design with modern demands, appealing to watch enthusiasts and collectors alike.
Checkout Junghans USA: https://junghans-shop.com/
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Hello everybody, welcome to another episode of Lonely Wrist Sitting. In front of us today is the president of Young Hans, usa, oliver. Welcome, buddy.
Olivier Zaugg:Thank you, rick, and nice to meet you guys.
Blake Rea:I actually think I met you already. You were in San Francisco for wind up, were you not?
Olivier Zaugg:Yes, I was in San Francisco for. So for us, wind up exhibitions are a key element of our communication or marketing campaigns to to really communicate with the consumers, not with the retailers, but really with the consumers. So, yeah, definitely, we do the three windupsups every year.
Blake Rea:Yeah, yeah, because I I remember, um, I was so excited to see you guys there and then I was walking around and then, uh, I think that was when I actually met your daughter for the first time, because she works with you guys and uh, and she said we, we just took over uh, like I guess it was the, the North American rights, is that? Do I understand that correctly?
Olivier Zaugg:Yeah. So what happened exactly is that on December 31st of last year so 2023, junghans owners decided to stop the distribution contract with the former distributor for the North American market. So when we met in San Francisco, we're in the process of starting a subsidiary for Junghans, so incorporated in the US and in charge of US, canada, caribbean and Latin America. So we're really in the middle of setting up everything and we officially opened a subsidiary 1st of June 2024. So it's only a few months that we're in activity as a real subsidiary, 100% owned by Junghans Germany and, like you said, I'm the president of the company, so I report directly to the owner in Schramberg, germany report directly to the owner in Schramberg, germany.
Blake Rea:Wow, so it just had to do with the contract. Is that right, that Junghans?
Olivier Zaugg:just decided to change directions in the United States. Yeah, it has been discussed for a few months about how to continue to develop the Junghans business in the America, which is really a key market, a priority market for Junghans, and I don't know all the details, but for some reasons the owner of Junghans and the distributor were not really able to find a common ground and they commonly decided to end the collaboration. So it ended in a nice way. I have to say it's nothing bad happened. It's just that both sides had a different view on how to continue to develop the business and bring Junghans to the next level in the America.
Blake Rea:basically, and you came from Maurice Lacroix. Is that where you were before?
Olivier Zaugg:Yes, so actually I was working for the distributor, so namely DKSH, and DKSH, as you know, distributed in North America Maurice Lacroix and was distributing Junghans. So I have been with Junghans and Maurice Lacroix for several years before switching to my new role as president of the brand for the US.
Blake Rea:Amazing, that's really cool. Yeah, I think Junghans is a brand that me and justin hold really close to heart. Uh, I'm wearing. Okay, I can see that I can see that we, we consciously decided to get our best buddy watches as young hans, young hans watches. Sorry so, um, and yeah so. So justin got me into like just the whole bow house design and he turned me on to that whole design language. Um, and so happily, an owner of the max bill you've got multiple, though don't you blake.
Blake Rea:Yes, I do I have uh, I have the max bill um with the arabics and the date and then they did like um an anthracite dial, was it?
Blake Rea:anthracite and then, um, it has these like uh markers around the edge that just they glow, they look like mirrors, um, and for whatever reason, um, when I, when, I, when, when justin got his watch, he pointed it out, like this young hans like is super special and uh, I overlooked it because I, I'm, you know, to meet stereotypically young hans. You know, you guys have white dials, you know beautiful white dials, and uh, and so he was fascinated with that and so, after I, I bought a form a, I returned it and then I got the max bill in that anthracite dial and, uh, I've only seen one person write about it like it was.
Justin Summers:I guess they did it for a really small production time yeah, it was was a limited release and they don't even make them anymore.
Blake Rea:And only one news outlet decided to write about it and I can only find like two pictures on the internet, so really it feels very special it is a special product.
Olivier Zaugg:Yeah, definitely yeah.
Blake Rea:So let's start off with the story of Young Hans. You know, obviously Young Hans goes back quite a bit, 1861. You guys are older than Rolex. Yes, I do too, and you guys have a unique challenge. So how would you feel? Bump Young Han's balance is, you know, honoring the heritage and staying relevant in today's watch market.
Olivier Zaugg:I think it's nicely illustrated with our motto, which is yesterday, today, tomorrow. So, as you say, it's a very long established company. So the company was founded in 1861 in Schramberg, germany, and not in Glashutte where you have all the major German watch brands, but in a small town called Schramberg, really in the Black Forest, and actually the company started by producing clocks and not watches, so producing wall clocks, table clocks, and by 1903, the company was the biggest clock producer in the world, producing more than 3 million clocks a year, which is like 9,000 a day, which is completely insane in terms of production. So I would say that after being very successful with the clocks, we continue to produce clocks, but it's no longer our main business. So quite quickly the company started to switch, producing watches, and actually we didn't start with the Maxville or the Bauhaus design, but we started with our historical line called Meister. So that's really what started to push Junghans in the field of producing watches, to push Junghans in the field of producing watches and even producing watches for pilots, like the Meister Pilot line that we have now and we have been producing for decades.
Olivier Zaugg:So I would say that Junghans really started to capitalize on the know-how and the capacity to launch and increase production to big numbers due to the experience with the clock production and quickly turned into the watch, let's say production side of the business and we never stopped. So every year we continue to innovate and of course we have to take into consideration our two different, let's say, elements. You were talking about the form and the max bill. So we have really watches more into the design field, but, like I said, we have also pilot watches and some Meister watches which have a very long eye story and which are more the traditional side of the watchmaking industry. So we have to balance these two elements and we try to to conduct the development and and continuing to develop the brands on both sides and not focus only on the design side, namely Max Bill or Bauhaus or the form. But we continue to expand the Meister line and we also from time to time bring to the market reinterpretation of some iconic watches like the 1972 line or this kind of products.
Blake Rea:Yeah, yeah, 72 line or this kind of of products. Yeah, yeah, I mean um, you have a really strong portfolio. Uh, I I feel you guys are kind of checking all the boxes. Um, predominantly, you guys are just known for the max bill. I mean, I think that was your maybe your home run for at least the american market.
Blake Rea:I can speak from um, but you know how, how has bow house design kind of uh like, how is it central to young hans? And how, how do you guys innovate in design while staying true to this minimalistic approach?
Olivier Zaugg:Yeah, I get you. So of course, with the Max Build design in the Bauhaus, of course we have to stay within some codes, if I can say like that. We cannot completely modify the design. You know it's a design from the 60s, so it's a timeless design. You know it's a design from the 60s, so it's a timeless design. So we actually every year make the line bigger or expand the product offering by playing not only with colors but also with materials, with the sizes, but also the technology.
Olivier Zaugg:So one good example is the Max Build line. We have it as normal automatic, like three-hands date or without date, as a chronograph. Now we have the regulator, but we have also the quartz and we have also the mega solar, which is radio controlled. So that's what mega means and the solar means, of course, the solar powered. So that's what mega means and the solar means, of course, the solar powered. So we, I would say we have different avenues where we can continue to develop such a timeless design like the Max, bill or Bauhaus design. But of course we have to stay within some codes. We cannot, let's say, get completely crazy and reinvent completely this design.
Justin Summers:So it's a timeless design. It's. It's timeless for a reason because it's a breath of fresh air for a lot of people. Um, while we're kind of on that same subject, uh, how do you explain the appeal of the Bauhaus inspired watches to you know, people, customers, that are unfamiliar with design philosophy in general? Like, how do you explain the appeal of that?
Olivier Zaugg:so I think the first element it's it's watches that's very easy to read, very easy to operate, so it's really according to the principle which is form follow function and not the, and actually it's also less is more. So we really put the minimum, let's say, design aspect on the watch, or elements on the dial or on the case, to make them very easy to read, very easy to operate, timeless of course, and also being dressy, so you can wear such kind of watches on every occasion. It goes very well with a suit, but you can also wear it with more sporty attire, you can wear them on the weekend with the jeans. It's something that is really very polyvalent, very simple, very high quality. It's German-made, so I think German engineering is highly recognized in the world.
Olivier Zaugg:I can say like that I'm Swiss, so for me that's not a problem to say that. But I think people are reassured when they see a Junghans watch and not only a Max Bill watch, that it's well-crafted, well-developed, it's something that will last, it's very good quality and, again, you can really use these watches on every occasion. So which, for us it's a key competitive advantage because it opens up different, let's say, customer bases that that would be more difficult to target with a more traditional watch.
Blake Rea:Let's say like that yeah, no, definitely, I completely agree I I've known young hans to be like an enthusiast brand and uh, and I would say here in america, you know, with the surge of micro brands, young Hans really gets along really well in that sandbox. But what challenges do you think Young Hans faces here in America versus other markets like Germany, europe or other places where people might be more familiar with the brand due to the heritage that kind of lives in those regions?
Olivier Zaugg:Yeah, of course, and I think it's a little bit general to a lot of brands. But in the America, of course, brand awareness is something very important and of course, we're a little bit far away from Germany. So for us, I would say, the biggest challenge is to continue to spread the words about Junghans and get more and more people to know about the history of Junghans not only the product but the complete history, everything that happened with the brands, and where we are going, where we are eating with our new products. So it's really, I would say, general, it's really on the brand awareness side. Now I have to say that in America there are some very large German communities, and when I say German, it's not purely German people. It can be people from Austria or even from the Swiss German part of Switzerland. So we really know very well about Junghans and we are very proud to buy a product here in North America which reminds them Europe and especially Germany and the German engineering.
Olivier Zaugg:So on one side, we have of course to, let's say, to continue to create brand awareness, but we have some key competitive advantages when it comes to people already knowing the brand, even if they are based in North America. I very often meet with people during the brand, even if they are based in North America. I very often meet with people doing the exhibition, trend show or interviews, and very often I get the same story People went on holidays in Europe Germany, switzerland, austria, france or a lot of American people did their military training in Germany. So a lot of people know the name already of the brand, but it does not mean that they are still up to date about our product offering and what we are doing. So that's why we're really trying now to communicate more and more and target, let's say, american people needs in terms of brand image, brand story and and really spreading the words. Like I say, it's, it's really our biggest task at the moment.
Justin Summers:I kind of like to refer to you guys as like the best kept secret of the watch industry. Like I can go around and I can see people's personal collections and as soon as I see a Junghans I'm like okay, like you know what you're doing, like you know good design, you know philosophy. Like I just feel like a lot of collectors, uh you know, kind of unanimously celebrate you guys. Um, are there any specific consumer trends, uh, in the america specifically, that influence your strategies for young huns?
Olivier Zaugg:yeah, of course, one one big trend, and again it's generally it's not only for young guns, but it's really related to the size of the watches. So every year we go with the different trends watches. People want bigger watches and they want smaller watches, and for for years our best seller has always been the 38 millimeter automatic, which is typically what Blake has on his wrist. And so we're getting the message from North American customers that they wanted to have a Maxville automatic, but in a bigger case so, and they didn't want it to invest in a chronograph because the chronograph is bigger. So we have been discussing for years about maybe coming to the market with a like a 40 millimeter automatic and if I see the trends nowadays, people are actually asking for smaller watches now. So we have really to deal with this size effect. But on the other side, it wasn't really a big issue for us and I think we are right In the target at the moment with the 38, with the 34, we just launched is 3mm also. So I think we are good on that side and we still offer bigger watches, like the Chrono or the Regulator or, of course, pilot watches, which are way bigger. So I think size is one element.
Olivier Zaugg:The second element is, I would say I would not say that we are focusing on being very socially and ecologically friendly company, but we started to use eco-friendly material, especially on the straps.
Olivier Zaugg:That's definitely something that our customer base has been asking more and more. So we are now really present and trying to meet with one of these trends. Now there is a trend which is more on the technology side, especially for the solar-powered watches, and for us that's something very nice to see, since now more than one year our solar-powered watches are having a tremendous success, and not only the Maxbill but also the Meister, even the more, let's say, modern watches like the Force. So it has been a big demand, a big, it's a big trend towards the solar-powered watches and I have to say that we're right in the target with this. We have some of them which even includes radio control functionality and get synchronized with an emitter in Denver, colorado or the Americas. So we have also some technological, let's say, elements to put on the table, but definitely size and the solar power on the technology side has been big for us.
Blake Rea:I've also noticed you guys are having a lot of fun with color. You know, color is something that generally you're starting to see kind of, I guess, foster in the americas or people having fun with these yellows and pinks and greens and uh, and you guys are totally, totally embracing that in the 1972 collection, which I mean is just amazing. You know, you see, you got you more traditional European brands starting to kind of work with us here in terms of color. You know, yeah.
Olivier Zaugg:So far as that, I will not say that's completely new, but we have been since last year pushing more and more with colors, like you said, the 1972 being the best example with the yellow edition, the pink edition, and now we are also doing a lot of things on the form side, on the force, also doing a lot of things on the form side, on the force.
Olivier Zaugg:So definitely colors are playing more and more an important role. At Junghans we are no longer known as offering super nice white or silver white dials or even black dials, but really colors and something very important. Important since we use standard size straps, so and regular, let's say, spring bars, so it's very easy to to personalize a young guns watch. So we offer also several colors for each watch. So even if the watch comes with a yellow strap, you can basically have the choice in between seven to eight other colors or even material. So that's something important. Yeah, definitely colors plays a big role and you can expect some very nice product being announced in February during InnoGenta in Munich, product being announced in february during inorganta in munich, which is where we launch 60 to 70 percent of our novelties. So you can expect some nice colors, let's say, coming into into america oh, a teaser.
Blake Rea:I like it you hear it here, you heard it here first guys, uh, no, no, I, in all jokes aside um, I, I love, uh, I love the collection, I love the brand, um, and I'm glad to to see it fall into good hands, uh, with you and and your family. Uh, I'm curious if maybe you could kind of share some of the insights you know into the brand's approach to, to innovation, uh, and, and not only that too, but you guys are very technical watchmakers um and not a lot of people really.
Blake Rea:uh know you guys as a technical watchmaker, so if you could kind of debate that right, let people know why you guys are so talented at what you do.
Olivier Zaugg:I think it's on one side.
Olivier Zaugg:It's due to the fact that Junghans is really located in the Black Forest, in an area where there is a lot of industrial companies Not watchmaking companies, but industrial companies so technology, industrial innovations are very big where Junghans is located.
Olivier Zaugg:So it has been seen over the years, over the history of Junghans In the 90s we started with the mega technology and the solar power and we're one of the first companies to enter into this field.
Olivier Zaugg:So it means that at Junghans we have a complete team not only of designers, but really we developed our watches from A to Z in Schramberg and we are lucky enough to have a very nice network of companies around in Schramberg, even companies producing dials.
Olivier Zaugg:So it's really a very nice place to be for watchmaking brands, especially if you are not in Glashütte, and it means that we have access to, let's say, very good people, very experienced people in the field of design, research and development, prototyping, but also production, because we produce in between 30,000 to 40,000 watches a year in Schramberg. So it's not a giant production like the big groups, but it starts to be quite a big amount of watches to produce, and not only produce but ensure a very high quality level, which is our priority number one. So we don't want to grow and innovate in every direction, increase too much the production and not master our quality. We want to continue to be really a very reliable product, a product that people can buy and be very happy for the years to come people can buy and be very happy for the years to come.
Justin Summers:I love that and I'm going to make the perfect segue here. So you speaking on to like the production. I know that we had kind of mentioned this before with the sustainability of the company, but what role does sustainability play in Young Hans' production and what are the future plans for that sustainability with the company?
Olivier Zaugg:So everything starts with a building. At Junghans, as you know, we have the so-called Terrassenbau building, which is an iconic building. It's a building which is protected, so we cannot modify it. We have to keep it as it is. And this building was actually developed with the idea to get way more natural light coming into the watchmaking area compared to a traditional, let's say, rectangular or square building. So the idea was not only to save on the energy, was not only to save on the energy, but to bring very good quality light and being able to produce more in the same, let's say, footprint, instead of just growing and adding just square meter or square foot to produce more and more. So sustainability when it comes to managing the energy we use to produce our watches is very important, and nowadays you can still see the Terrassenbau building as it was. You can visit also the Terrassenbau Museum, which is located in the same building, where we explain all these different, let's say, phases during the history of Junghans.
Olivier Zaugg:And, like I said, we now consider more and more to use eco-friendly material and to really I would say yeah, we try really to do everything the best we can with impacting as less as possible our environment, let's say like that, and it's very german oriented too. Every time we do something, we want to try to optimize and do it better the next time. You know so kind of elements. Sometimes it's just being a little bit stubborn, but uh, it's. Uh, it's the way it is.
Justin Summers:So really making things the best we can is really what we are looking at every day that's a philosophy that I feel like every everybody in germany has to follow is just taking something and perfecting the crap out of it I think I think even the swiss got that, you guys, where they take this whole concept of the perfect, perfect, perfect, detail-oriented, heavy in manufacturing, and I think that's the German DNA from the Swiss people.
Blake Rea:Exactly, yeah, I think that's exactly what it is and the manufacturer I mean obviously, like I've seen pictures and it is absolutely stunning the way that it's layered um, uh and uh, and I'm gonna have to annoy you to get an actual tour of the manufacturer for our YouTube channel Anytime anytime.
Olivier Zaugg:So we organize and that's something we started really in 2024. We started to invite our key retailers and key customer to have a private visit of the manufacturer in Schramberg. Of course, a private visit of the museum in Schramberg. Of course, a private visit of the museum, the watch museum, which is open to the public. But our VIP customer gets also an additional visit to the internal museum where we keep, or we try to keep, one piece of every collection produced since the start of Junghans. So it's absolutely amazing. You can see absolutely every kind of Junghans watches produced from the very beginning. So it's really stunning. And then we of course do something very special. And then we of course do something very special.
Olivier Zaugg:Junghans' founder actually were living in a castle in the city of Schramberg, and this castle is on the other side of the valley, you know. And he was able to look at what was happening at the manufacture from the castle. So when we realized too, we and that's new the Stein family took back the ownership of the Junghans castle and they turned it into the place where we host our guests and where we have company meetings and such kind of things. So it's really, let's say, kind of a unique setting. So environment and everything is really linked about the eye story of Junghans. It's absolutely out of this world.
Olivier Zaugg:I have seen a lot of watch museums. I'm Swiss, I was born in La Chaux-de-Fonds, so I know a little bit about watchmaking, but the Junghans part of it is really, really interesting. So feel free to come anytime. We will organize you a very nice tour. We'll, of course we'll be our guest. Amazing. We do a first tour in February during InnoGenta, because InnoGenta in Munich for us is very important. We are a German brand, innogenta is the biggest watch and jewelry fair in Germany and it's very convenient for all our European distributors to attend meetings there. So we organize already a big tour during the InnoGenta, let's say, period the year. But I travel almost every quarter to Schramberg to organize visits and of course part of the visit is a very nice discussion with Jungan's owner, the Stein family, namely Hannes Stein, who is the CEO of the company. So you really get the complete package when you come to Schramberg.
Blake Rea:We'll be there tomorrow, no problem.
Olivier Zaugg:Let me know the time.
Blake Rea:Can we expect anything? I mean, you kind of teased a little bit already about February and kind of dangled a little carrot for us, but can we expect anything new in terms of complications, product lines or anything specifically tailored to us Americans here on our side of the pond On?
Olivier Zaugg:the complications?
Olivier Zaugg:Not really, because we just launched a few months ago the regulator both on the Bauhaus line, because we just launched a few months ago the regulator both on the Bauhaus line or on the traditional Maxbill line.
Olivier Zaugg:So for us that was a big achievement because the regulator is now available in a 40 millimeter case. In the past we used to have a regulator but in the 38 millimeter case, so for us it has been, let's say, interesting to revisit the regulator and offer it in a bigger case. So there is something happening on the technology side, especially with the radio controlled and solar powered watches, especially on the fourth line, which is watches she's first made with a ceramic case, even with a ceramic bracelet or rubber bracelet, so where the technology is being upgraded to be more and more, let's say, more performant or more easy to use, but still based on this very old technology of radio control and emitters based in different places of the world. So, on the technologies that will be on the force now, it will be really mainly on colors, sizes, and we are coming with something unique for the US market. So we'll have watches which unique for the US market, so we'll have watches which will be a USA limited edition limited to 50 pieces, only for the US market.
Blake Rea:Wow, that's awesome.
Justin Summers:What trends in the watch industry excite you the most and how is Junghans' position?
Olivier Zaugg:to respond to those trends. Yeah, to me, obviously, it's a minimalistic design. I like really clean and neat design. I asked I know I don't like what she's having too many things from the dials where they start to be difficult or sometimes even impossible to read easily. So minimalistic design for me is really the biggest driver.
Olivier Zaugg:Of course, the price point. For us, it's very important to stay in a price point where people can buy our watches. We, of course, we have a few models which are with higher price points. We even have a unique edition made completely out of gold white gold, yellow gold, rose gold or even platinum with a platinum bracelet, but it's really the exception. So, you know, we have a few products which are very, very expensive, but we want to stay in these 450 to less than 3,000 price mark and automatics around 1,500, which is really a very good price point, especially for the quality we offer. And so for me, the price point, of course, is really something that I'm very focusing, to really keep a strong focus and not try to go too high. I think it's not worth it to try it.
Olivier Zaugg:And of course, there is a trend with all these revivals, you know. So you will see something, but it will be only for Europe. In the 90s we used to be very popular with a watch called the Mega Mill or Mega One and we are working on something on that side. But it's going to be for you because the quantities will be extremely limited and it makes no sense to, let's say, to put everything in place in terms of import and licenses for some very specific models if it's really small quantities. But you can expect something on the revival side, but it will be mostly for Europe.
Blake Rea:I'm also curious as to how do you feel YoungHans is different in a competitive market where you're starting to see brands that are popping up pretty much overnight that are essentially taking the Bauhaus design uh and and and shifting it forward into the marketplace.
Blake Rea:You know they're coming in at more aggressive price points. Um, they're taking design language that you know you guys have been doing for 160 years, and so how do you feel Yonghan stays competitive, you know, despite that, I think we stay competitive by offering entry price point products, now with a very minimalistic design.
Olivier Zaugg:So we don't try just to reduce the price of our watches, but we come with a complete line of watches with a minimalistic design which are in a even more affordable, let's say, price point. So that's one of our way to tackle this. On the other side, we are in the market since, like you said, since 160 years, so since a very long time, and we are really known for that. So there is really a lot of people who associate Junghans with Bauhaus, with Max Bill and especially people in the field of the design, like builders, architects, designers. Of course, for them, the Bauhaus is something key. They have been going, they have been studying this during their, let's say, when they were attending school or high school or university. So for them that's something very important, very unique, and the name of Junghans is very closely associated to that, which might be a little bit more difficult for newcomers.
Olivier Zaugg:But on the other side, there is also a trend of a lot of new watch brands, like you said, popping up almost every day, and even to me, like I go to wind up every time, I find new brands and they just start and I think it's interesting. It's definitely interesting. I think it's challenging also for a lot of brands to start now because, yeah, you need to start now because you need to be different, you need to be innovative, you need to find your customers. So it's not so easy, but it's interesting. And on the other side, it's a challenge, so it pushes us to continue to improve and get better and better. So, for me, competition is good. It's not something that I'm afraid of. It's something that I actually enjoy because it helps us to improve.
Justin Summers:It pushes you to be better in every aspect that you can. Healthy competition Nothing wrong with that, yep. I'm curious, oliver, what drew you to become a part of Junghans and how has your leadership shaped the brand's direction, especially, you know, within the Americas?
Olivier Zaugg:Yeah. So I actually joined Junghans I would not say by accident, it was for Maurice Lacroix. And when I went to the interview I even didn't know that they were distributing Junghans, because in my former career I was always, let's say, in the watch industry, but I was first with Frédéric Constant Alpina and then Maurice Lacroix, so Junghans is not really a competitor, so I never really paid too much attention to Jungans. So during the interview the people at the distribution company started to talk to me that I will have to manage two brands, so Maurice Lacroix, obviously, and Jungans. So it was a little bit of an eye-opener and I really started to do my research and really start to pay close attention to the brand. And actually the brand has been really well-received in America. So it became to me very interesting and very different than a brand like Maurice Lacroix or Félix Constant or Raymond Bell, which are more, let's say, similar in a way in terms of design, in terms of product offering. So to me it became very, very interesting. So another very special place in my, let's say, in my environment.
Olivier Zaugg:And after a few years, when discussion started to create a subsidiary and really have the brand present in the market and not through a distribution company. I was like a natural choice. You know, I was knowing everybody at Junghans since years. I have a very good relationship with the owner, so it was quite natural that we start to collaborate on that. So, and again, junghans has a very special place in my, in my earth. I really even I'm Swiss. A lot of my friends are telling me a Swiss guy is selling and pushing a German brand and I say you know, swiss guys want to do very nice watches. So I am. To me it's, it's very interesting and it was like a natural change and I'm very happy with that.
Blake Rea:So yeah, I think I have to ask and this is always the hardest question that I ask, you know, during the whole podcast. So feel free to opt out if you don't feel like you can answer. But it's like having a favorite child. You know what would you say is your favorite model or collection from Junghans?
Olivier Zaugg:So, actually, when I started to sell Junghans watches, I had to pick a watch to put on my wrist like a, you know, a wear watch. And I love planes, I love vintage planes. So I selected the Meister Pilot. Okay, it's the original one, really, it's the first one we did. Okay, and I've been wearing this watch for four years in a row. I was very happy with that, so, and I still wear it.
Olivier Zaugg:So the Pilot to me is a special watch, but it's also, I would say, more due to the design, to the size. I love big watches, obviously. I love a chronograph, I love big numerals, something very easy to read and a little bit vintage at the same time. So I would say the Meister Pilot to me was the natural choice. Now, if I have to go more on the Meister or Max Bill side, to me it's the Bauhaus regulator. So I love regulator. They have a very special, let's say, appeal to me in terms of technology, the way the movement is built, and I love actually the Bauhaus case back where you can see the movement is built, and I love actually the Bauhaus case back where you can see the movement and the Bauhaus logo, the Bauhaus accent, the red accent and so on. The way the case is finished matte polished. This watch to me is really my day to day wear watch.
Justin Summers:I love the regulator. Regulator is sweet to me. They are special day-to-day wear watch. I love the regulator regular suite. So how do you uh personally define success for young hans uh, specifically in the americas, because we know it's your market. But how do you define that success?
Olivier Zaugg:Yeah, it's a good question because for us, success is, of course, to continue to grow, but we want to grow in a controlled way. We are not looking to grow at all costs and in a short term period of time. We want to be in the market for the next 100 years. So everything we do, we try to do it in a logical way and in a sustainable way, so then we can continue to build on that OK. So, and one key element for me is a customer satisfaction Because at the end of the day, as brand, ok, we can do nice advertising marketing, we can tell nice stories. We can tell nice stories, we can build nice product. At the end of the day, this product must be on the wrist of someone and this person must enjoy that watch.
Olivier Zaugg:And to me, I love to have close relationship with the watch collectors. I do a lot of events with the private watch collectors, presenting the brand, discussing with them, getting feedbacks and, of course, with a retailer. So I travel a lot. I spend about 75% of my time traveling in the continent because I want to meet with a retailer. I want to have discussions. I don't want to sell product just by offering by email and then getting an order and shipping products.
Olivier Zaugg:So building relationship, being present, getting feedback, even when it's when something was wrong. It always happened, it's all humans, but the way to solve the issue is key for me. So if, at the end of the year, my retailers are happy and the feedback I get from the end consumers is very positive, to me it means that the year was successful. And, of course, if we continue to grow and if we continue to be able to develop new products and bring new technology to the market, that's fine, but that's not the biggest element for me. So customer satisfaction and having very good relationship with both with a professional and the customers.
Blake Rea:Yeah, I've noticed, at least in my market. You know we don't have a young Hans dealer. We did, and I think they have failed you miserably because, uh, they didn't have their product, your product, even on their website like I I could. I didn't even know that you were being retailed there and they do a terrible job at at advertising and showcasing your product, um, and I'm sure there's other dealers out there that that are doing the same. You know, your brand is a unique brand. It has a unique story, it has a unique identity and uh, and I I definitely see you know now that you guys have some more closer roots to America. You know, you're here, you understand the market.
Blake Rea:I think that's not only a failure from the retailers. But you know, education is what sells products People being proud to sell young Hans, people having a respect for your brand. And you know, in my, in my case, when I went to my, my retailer and they didn't even really know that they sold young Hans, but they had him, you know, like they had them in a small little showcase there in the corner and I was so frustrated. I was like, why do you only have these in this corner here? Like, these are amazing watches. What are you doing?
Olivier Zaugg:That's the biggest challenge in America. It's, first of all, to work with the right retailer at the right location, so then they have the right, I would say, customer base or prospect base. And second thing, it's education, and this is one of the elements why Junghans wanted to have a subsidiary. Now it's to show to the market that we invest in America by being present physically and investing a lot of money. So one element that was difficult in the past was to have stock, and, as you know, in America, when a customer goes to a store or when you call or send an email, normally people are not really patient and are not really willing to wait six, eight weeks to get the watch they want it now. So one of the key elements in the strategy I implemented this year was to make sure that we have everything stocked in the US so then we can make sure that we can provide the goods to the retailer very quick. And also we implemented a new website, because the distributor had a website but obviously, when the distribution contract stopped, we're not, let's say, able or willing to continue with this. So we recreated a complete Junghans website for North America. So for a few months people were obliged to use the German website, which is not very convenient. It was in English but everything was in Euro and with a lot of information about Europe. So here people want to hear about the US and North America. So we did build a new website. We launched it two months ago.
Olivier Zaugg:And last thing, I was saying that I travel a lot. Every retailer who is not really willing to invest and stock at least the best seller and advertise properly, update their webshop, make sure that the links are correct, that everything is okay, the pictures are the original ones, the prices are correct. I'm very strict with that. So there are a few retailers who I had to decide that they are not the right choice, so I decided to close them. On the other side, we opened a lot of new retailers also. We start fresh. So I call this like cleaning the market. That's a little bit what it is, but it's necessary to continue to grow. So in your area I have a problem. I know, I definitely know and I'm on it. I might be able to give you a good news quite soon, but it's not signed yet.
Blake Rea:I cannot discuss. Well, if there's anything that I can do from a local perspective to help bring you know more awareness to your amazing brand, I think Justin and I can can speak to this. I don't even know if I would be a watch collector without a brand like young Hans um because there's something about it, you know.
Blake Rea:It's minimalist, it's understated, it's fun, it's playful, it can be anything you want it to be. And there's. There's not a lot of watches out there that exist that have that type of uh open open source is not the right word for it but it's. It's universally uh, stylish. It'll never age, it'll always look good another 160 years down the road. Hopefully one of my kids will be wearing this watch. Um, and then you know also what I love about it is it's serviceable. You know, you see a lot of brands that are pushing for these in-house calibers because they want to own the customer. They want to own the customer and have a longer customer acquisition period, which, in my opinion, is not necessarily the best interest of all of us, as, as collectors, I want to know I can take my watch to a watchmaker down the street, have it serviced, have it back on my wrist and not have to worry about sending it to New York or Miami or Texas for six, seven months. It just I don't think that this trend is a consumer forward trend. Yeah, no.
Olivier Zaugg:I think service is a key element and actually we opened a second service center. We are the only one in Miami. We opened a second one in Lincoln, nebraska, and every authorized retailer has access to spare parts and has access to our, let's say, database. So every authorized retailer can repair Junghans watches. And we just started in Canada last year, so we already opened a service center also in Canada. So service is key and we don't have a lot of movements that cannot be repaired by, I would say, a watchmaker. We use ETA movements, elita movement, some complications like the body module, so we have a few manufacturer movements. But that's not where we focus. That's really having, I would say, a product very well built, easy to maintain, easy to enjoy and continue to expand the network. So if something bad happens, it can always happen. It's a watch you never know, especially on the mechanical watch. But service must be done very quick and with a fair price, also because it's important we've got a.
Justin Summers:Um, I was gonna say I've got kind of a funny story in terms of, like, my ownership of a young hans. Uh, my wife went to school for interior design uh, and so she of course, had studied Bauhaus design and a lot of her teachings. I come from a photography, you know videography background and Bauhaus design has always been like very deeply rooted into you know my surroundings, my design within my home. He's my dog.
Blake Rea:Your dog agrees with what you're saying. That's right.
Justin Summers:That's right. But no, I mean just, you know, kind of going back to it, like you know blake was really talking to like how important young huns is to us, uh, and you know, we wouldn't be watch collectors if it wasn't for the brand, uh, just because it is so important to me. Um, and I love telling people the story. You know, specifically, I own a Max Bill. It's a no date and I love telling people the story of, you know, max Bill. You know, back in the 50s, you know, used to make the wall clocks and then turn it into a wristwatch, and it's just so refreshing because there's not a lot of brands out there that have that design philosophy heritage that you guys have, uh, and it's just really unique yeah, yeah, definitely, yeah, yeah.
Olivier Zaugg:And that's what attracted me with young guns besides, I would say also the way of doing business at young guns it's it's a family owned business, as your nerves are very independent, they want to stay independent and they operate really like a family-owned business. So everybody knows each other, there's a lot of respect within the organization and everybody just protects the business as if it was his own business. So it's really interesting. Decisions are very easy to take, very quick, quickly made, and it's a very, let's say, nice environment that goes very well with a nice type of design that we use on our watches. So it's a perfect combination.
Justin Summers:I agree.
Blake Rea:I've got the hardest question for you of the entire podcast and then we will let you go because I'm sure you're super busy and thank you for spending, you know, almost an hour with us. Um, but what is the next decade for young hans look like in terms of milestones? What do you hope to accomplish as a leader for the brand? And the reason why we're asking that is because we're going to check back with you and make sure that you're hitting all those milestones.
Olivier Zaugg:Okay, no, but the first element is to continue to expand. I mean, in terms of geographical locations, we still have a lot of work in some states where we have no retailers at all, so these states are a key priority. So I want at least one retailer in every state. In some states, of course, we have several, but that's really something important. Like I mentioned, we started in Canada not a long time ago, so Canada. Now we are really well presented in Vancouver area, so we want now to develop in Toronto and Quebec. So then we cover the three main regions in Canada, both with sales and service.
Olivier Zaugg:I have to relaunch the business in Mexico. So Mexico used to be quite a nice business for Junghans and then as a distributor, I don't know what happened exactly. I really do now to start to travel and see in the market, but that's something I have to, let's say, to take over and reboost completely. And actually we also started to develop in the Caribbean. So again, geographical locations, expansion, continuing to improve the quality of our retailers, education, making sure that they know how to sell young dance product, what makes young dance unique and different. For me, that's really the key priority, and by doing this properly, the business will just continue to grow because it's we are not since decades in in america, so we are still new in the market in, in a sense, uh, but there is a huge potential that we haven't been able to communicate with so far. So to me there is a big potential, a big opportunity. So the business will continue to grow, but again, we want to grow in a very controlled way, step by steps.
Justin Summers:I think that'll be good for you guys as well, because you've been making watches for so long. Up to this point, you already have these business practices that you've implemented and kind of perfected over the years. So now that you're kind of getting a fresh start into the American market that you know the past 10, 15, 20 years has really started to bubble into bloom um, I think it's a good time to kind of ride that wave and to you know, to show people, hey, you know exactly who you are as a brand, your philosophy, uh. So I think it'll be kind of a you know a good timed little thing.
Blake Rea:Yeah, also every, every ceo needs a map on their wall, so you can know exactly where to target. Okay.
Olivier Zaugg:You know, I have, I have the maps, I have the nice max bill World clock in my office.
Blake Rea:So I want to. I want to thank you for coming on. It's been a pleasure to sit down and have this discussion with you. I think you obviously know that we're a fan of Young Hans, the brand. It means so much to us. I don't even think I'm speaking for myself anymore, but I'm thinking the entire micro-brand really appreciates what you guys are doing. Um, I can't wait to see you know what happens, you know, in the next couple of years, um, with you guys, I will certainly be, uh, you know, keeping a close eye on, on things that are moving and progressing. And uh, um, and I will be as supportive as I can as a journalist, a blogger, influence, whatever you want to call me or watch nerd. Uh, I think me and Justin can, can certainly say that we, we will be at your disposal in any type of way.
Olivier Zaugg:So thank you very guys. That's really highly appreciated. So I'm sure we'll stay in touch and communicate a lot in the future and, like I said, you are invited to Schramberg anytime, so just let me know when it will be convenient for you and you will discover Junghans from the inside and really have access to a lot of amazing information and products.
Blake Rea:I will work on it, probably maybe this summer. I definitely need to escape the desert every once in a while. So yeah, I think Germany is a good place to do that.
Olivier Zaugg:Yeah, exactly yeah. The best period of the year is autumn.
Blake Rea:Yeah, Thank you so much again. We are going to link the new Young Hans website in the description of this podcast and if you don't have a Young hans near you, maybe I can say this please go to your dealer and beg them to carry the brand, or maybe oliver will be kind enough to already be working on that for you. Um, definitely pay attention to what's going on in 2025 and beyond and stay up to date and definitely check out their website below and and buy one of their watches.
Olivier Zaugg:Perfect. Thank you very much. Thank you.
Justin Summers:Thank you, oliver, thanks everybody.
