As has been said many times here at Tempus Fugit, I have a pretty strong personal attachment to Mido. And a little while ago, I got to visit the Mido headquarters and speak with their CEO. And I even got to try on my “Dream Mido”!
So now, a few minutes with Franz Linder.
Tempus Fugit:When you were a young boy, what did you want to be when you “grew up”?
Franz Linder:The first thing that I remember was that I wanted to be the guy who cleans the chimney…TF:A “Chimney Sweep”?FL:Yes, the guys all dressed up in very black outfits! So this was my first “job wish”. Don’t ask me why, I guess the outfit maybe (laughs).
TF:Where did you grow up?
FL:I grew up in a city near Berne called Belp. Basically my entire childhood was spent in Belp.
TF:Were there people in your family who were watchmakers?
FL:No, absolutely not. I have absolutely no ties to watch making. But – I had a very nice surprise once! When I went through the archives, there were these albums from jubilees (anniversaries) where they congratulated and honored people, and one of the women in the picture looked familiar to me. I knew her! She was my grand aunt, who worked for 15 or 20 years for Mido in Biel.
TF:How did you find yourself in the watch business?
FL:My background was in banking, so I started my career in banking. I actually changed to electronics and finally ended up in watches, where I have been now for the past 20 years.
TF:What was the transition like to watches?
FL:This was not a direct step. I was in banking and really liked it and actually expected to stay in banking. And then I went to study languages. I studied French and English. And when I came back I was looking for a job where I could practice the language, because otherwise it was for no good reason. I got an opportunity to work with a company in Hong Kong that was producing electronics and they were looking for someone working in Europe. It was actually more of a reason for me to practice my languages than any other reason.
TF:So then Mido is really the first and only watch company that you have worked for?
FL:Yes
TF:That is very impressive.
FL:Well, very consistent (laughing).
TF:So talking about Mido, what is “Midosequa”? What makes Mido special?
FL:I think it is one of the brands in the mid-price category that is very consistent. I would say Mido’s breakthrough really came in 1934. This is the year they launched the Multifort collection, which was a real breakthrough for Mido. It came at the same time as the Aquadura cork system. Combining them provided one of the first real water-resistant watches. And with the positioning of the Multifort, the aim was to produce very reliable, robust watch that you could use every day and provide it at a reasonable price. And we still have the Multifort collection today. Of course we have other collections with different positioning. I think that our focus is on innovation, good quality, and timeless design. Of course we are not a fancy or fashion watch. But innovation, quality and timeless design are really the key statements of our brand.
TF:What are some of the biggest challenges right now that Mido faces trying to get ahead of their competitors in their price range?
FL:I’m sorry to repeat the same things, but I think that the key things are the same. Back in 98 we decided that Mido would clearly focus on the categories that I already mentioned. We have had very good results and positive evolution. So our challenge is that in the markets that we are in, and the markets where we are not yet number one or number two we hope to grow to that level. And of course there are still a few countries that are important which are in the top 30 of the FH where we are not yet active. So we hope to expand and make Mido the global reference for automatic watches in the $700 – $2000 price category.
TF:What is your strongest market?FL:ChinaTF:What is your most “challenging” market?
FL:We still have many challenges, but I would say one of our “evergreens” in challenging markets is Brazil. In Brazil, Mido is very well known, and Mido has been there forever. We even had a factory there. Everyone speaks of Brazil as a growing market, but due to the tax issues, import tax and everything else, it is very difficult to really have a big business there. Brazil has 200 million people, but exports are very small to this country. But even with these challenges we rank (based on exports to Brazil) as one of the top five brands. For a population of this size it should be much bigger. But the prices are too high, so it is a very protective market. In addition the people know if they travel to Miami or Panama they can find the same products at a much lower price because the tax rates are much more lower.
The US, obviously is, a competitive market. It is not an easy market, and in the US the challenge is that distribution is not very easy for a brand in this price category. If you go to Italy you have hundreds of stores selling mid-range watches. But this type of distribution style is less popular in the US.
TF:If you had to think of 1 or 2 things that you hope might kick-start the US market, what would they be?
FL:First, if I look at the evolution of Mido over the past decade it was really a success story. It means that what we offer is honest, is real, and it has proven itself in many markets – a good quality watch at a very attractive price. It has big potential in the US. There are not many brands offering as good a quality product at these price points. This means that Mido is ready to conquer every market. But we also realize that branding, brand image and brand awareness are incredibly important as well. The challenge in the US is to really be able to reach our target customers, talk to them and to present our brand. This can be very complicated, but it is a challenge we face every day.
TF:So who is your target customer?
FL:We feel that the Mido customer is a middle-class person, 25 years old and up, looking for a good quality Swiss watch. Most of these people are buying their first automatic watch. It is, in many ways, their entry to the world of real Swiss watch making.
TF:I realize it might be difficult, but do you have a favorite Mido?
FL:I have a few that I like for different reasons. I still love the original Commander because this is one of the few icons in the watch industry. Very few watches can go fifty years without changing, so clearly this is a product that has stood the test of time. Then I really like the All Dial collection, which at the time was a real break through in terms of how we promoted the brand.
And today I have to say I really love this one – (showing a blue Commander chronograph) which is the first watch I have had with a blue dial. It’s interesting, as blue is not really my favorite color, but it’s a kind of blue that I really like.
And it is a Commander, which is a series that I really like.
TF:So we’ve noticed in the US that the University of Miami is now a “timing partner”. Are there other plans in the US for other partnerships?
FL:We are thinking about how can we reach our target audience. When you think about university students, when they are between 20 – 25 years old, then you normally will show a certain interest in a nice watch. So we hope that it is a way to gain interest from these people who perhaps not yet, but are on their way to becoming potential customers, and should be able to afford a Mido watch, and appreciate Swiss watch making.
TF:What do you like to do in your spare time?
FL:I enjoy hiking, jogging, outdoor sports. And of course time with my family. I travel a great deal, so time with my family and friends is important.
TF:If you weren’t doing this, what do you think you might be doing?
FL:I think there a lot of interesting things to do in life, but I enjoy business. I enjoy the process of creating and then selling a product. The privilege that we have in watch making is that we can sell an emotion, not just a functional thing. This is a big difference compared to when I was in electronics. In electronics things changed quite fast and moved quite quickly. In watch making it takes a lot of time to evolve and change, but you create an asset, you create value and that is fantastic. But I could imagine working in quite a few businesses. When I think of Switzerland there is, of course, chocolate. This is a nice product as well.
TF:Any plans for an online Mido boutique?
FL:That is something we are studying seriously, because ecommerce is becoming more and more important. Particularly in the US where there are a lot of watches available on the internet, but not always in a controlled way. So I think this will be a good opportunity.
TF:Who else is making watches that interest you?
FL:For me, it is the brands that have a clear statement. I admire the brands that have more than a brand name, but also a collection to offer the public. A legacy. Omega, and Hamilton have rich historical storylines. And IWC with the Portuguiser. For me, these are products with a history. A consistency. A really good watch is a part of history. Our ambition is to endow this spirit in Mido, so that the collection has 30, 40, 50 years of history, where we have a direct line that we follow.
TF:What advice do you have for aspiring watch company CEOs?
FL:For me, this is not just a “job for money”. In the watch industry you have a lot of people who are emotionally linked to the brand. For me, Mido is a big part of my life. I have been here for 20 years, and I have had the opportunity to help shape the brand. If you want to work in the watch industry you need to be passionate.
