Watch industry continues to tick

HOW to describe Baselworld, the annual Swiss watch show? Let's start with the smell. To put it a crassly, it smells like money.

Baselworld

HOW to adequately describe Baselworld - the annual Swiss watch industry trade show held in Basel, Switzerland, in April? Let's start with the smell. It smells a lot like a new house. It smells like new carpet, fresh paint and expensive cabinetry. In some areas it smells like fresh coffee or a field of lilies (the floral theme for this year). To put it a little crassly, it smells like money.

The Swiss watch industry is one of the few shining lights in the European economy at the moment. And the industry is defying all economic logic: it is manufacturing a product that has been made redundant by the proliferation of mobile phones and it is booming at a time when consumer sentiment is somewhat depressed.

In the first quarter of this year exports of Swiss watches reached CHF4.7 billion ($5.4 billion), a 2.4 per cent increase on the same period the previous year, making it the biggest ever quarter for the industry, according to figures released by the Federation of the Swiss Watch Industry. Last year, the industry chalked up a record CHF21.4 billion in exports, 11 per cent more than the previous year.

The growth of the industry is being driven by the top end of the market. The average watch price last year rose to CHF693, due to a growth in demand for the most expensive timepieces. Throughout Switzerland new factories are opening and employment in the industry has risen as well. Although everything seems to be pointing in a northerly direction for the watch industry, some are expressing caution because of a slowdown in demand from China, which has been one of the biggest drivers of growth in recent years, not just for the watch industry but the luxury industry in general. The mood is cautious but optimistic at the same time. How else to explain the newly renovated and expanded exhibition space for Baselworld?

This is where the smell comes into it: everything is new. Size-wise, the new exhibition space feels like a tastefully lit airport for a major city. The main hall of Baselword is spread over three levels, with the biggest brands occupying the 38,000-square-metre ground floor. With its 10 metre-high ceilings and spectacular architect-designed "booths", the new space, designed by the Basel-based architects Herzog & de Meuron (the team responsible for the Beijing Olympic Stadium), produced a jaw-dropping reaction, even from seasoned regulars at the fair.

Also in this month's Wish watch and jewellery special is a story by The Australian's resources writer, Sarah-Jane Tasker, on the incredible success of Rio Tinto's Argyle diamond mine in the Kimberley in Western Australia. The mine is globally recognised as the dominant supplier of pink diamonds, making up 90 per cent of the world's supply of the precious gems. Tasker's story follows the 18-month journey of these rare diamonds from discovery underground to being sold in a unique tender process.

And speaking of journeys, in May, our art director and beauty writer, Samantha Yates, travelled to Paris to discover what makes Chanel's No 5 fragrance so iconic. Sam was also lucky enough to visit Coco Chanel's perfectly intact apartment on rue Cambon.

Get your copy of Wish with The Australian on Friday. Please note the magazine is not available in some areas.