Five leave Baselworld in a Messe
There is only one headline news story in the watch industry today, and that is the shocking and largely self inflicted wound which will almost certainly spell the end of the mega watch expo, and local cash bonanza that we will remember as Baselworld.
In a dramatic joint announcement earlier today, on a FHH headed press communiqué, Rolex, Patek Philippe, Chanel, Chopard and Tudor have announced their immediate departure from the giant Basel show. Not only that, but all five major players have also all committed to return for a brand new trade fair to be held in the Geneva Palexpo in April 2021, with the Fondation de la Haute Horlogerie, and to take place at the same time as Watches and Wonders.
Following an increasingly fraught exchange of views between Baselworld event hosts MCH and exhibiting brands over the past few weeks, in a saga which twisted back and forth like an ill thought out game of chicken, today’s news essentially inflicts a mortal blow to the show, which only three years ago was celebrating its one hundredth anniversary, and indeed to the hospitality-based businesses of the city of Basel for whom Christmas was promised twice a year.
The spectacular, and yes, quite unexpected fall-out (to the extent that has today unfolded) is the result of a widespread discontent among Baselworld’s customer base of exhibitors, large and small, who for once found themselves unified against an offer by MCH to address the postponement/rescheduling of the 2020 fair, due to the effective global lockdown in place as a result of the coronavirus pandemic around the world. This double-edged, and time -limited sword proposed either a rollover of the mostly already paid 2020 exhibitor fees towards the rescheduled/postponed 2021 event (well 85% of that fee to be more precise, with the remaining 15% retained by MCH for administration costs), or the even less attractive alternative which would see a 30% refund now, with another 40% on hold as a rollover to next year’s show, but with a hike to 30% for admin.
An unprecedented letter last week to MCH by no less a personage as M. Hubert du Plessix, president of the exhibitors committee and head of investments and logistics at Rolex, among other high profile industry roles, who wrote on behalf of all exhibitors requesting a reconsideration, and the ‘elegant solution’ of a full refund to exhibitors. A somewhat more conciliatory MCH did respond, but was still unable to step up to the request or even move from its previous proposal, adopting a ‘we’re all in this together, although we have your money and will be holding on to as much of it as possible, but let’s still be friends’ tone.
Today’s announcement from five of the biggest real estate tenants in the Halle 1 has essentially put a close to discussions, and it would seem that having been the subject of speculation regarding its existence in recent years, particularly following the withdrawal of the Swatch Group and its quiver of brands in 2019, Baselworld has finally been taken down by a combination of a pandemic, but also at least equal to that, a degree of a lack of awareness, self-importance, arrogance and an unwillingness (or inability) to work with its primary sources of income when it was called on to do so from the highest plinth.
Tonight there will surely be a sense of shock across the city as it comes to terms with the consequences of the loss of its biggest annual event. In the bar of Les Trois Rois Hotel, which incidentally had also refused to issue refunds to its full complement of customers who had booked for this year’s Baselworld, there will be questions asked and fingers pointed over large glasses.
But aah, Basel it was you; it was always a pleasure, if an expensive one, but the ball was in your court, and you have hit it straight into the net.
