Interview: Five Things I Learned From A Conversation With Georges Kern, CEO Of IWC Schaffhausen

October 23, 2014

This past week, I traveled to New York to preview some of IWCs coming attractions and to sit down with some of the brands brain trust, including CEO Georges Kern, for an honest discussion. Kern has been in his current position for 12 years, which is a long tenure for a Richemont brand CEO. In that time, weve seen big changes. The Schaffhausen brand has morphed from an obscure builder of austere tool watches to a global luxury brand with a burgeoning portfolio of watches and a parade of celebrity friends of the brand. While there are many who make a sport of questioning Kerns decisions, you cant argue with the companys success under his guidance. And after all, thats why he was hired.Here are five things I learned during my sit-down with Georges Kern, including his decision-making process, his worldview and whats ahead for IWC.1. He makes decisions with his stomach.? Maybe this is why we had lunch at Le Bernardin. Kern answered, stomach to more than one question that was put to him, from how IWCs friends of the brand are selected to how he strategizes for the companys future. No doubt, by "stomach", he meant gut or "instinct", and looking at IWC under Kern, its not surprising; of most watch brand CEOs out there, he is perhaps the most mercurial and sometimes controversial. He admitted hes made mistakes (no specifics given there), but for all the feedback, good and bad, the brand has gotten in recent years, theres no denying Kern has led IWC to great success in his 12 years at the helm.2. He doesnt talk to male journalists anymore. Portofino Midsize Dual Time OK, Kern was obviously joking, since he was answering my questions. His point with this remark had to do with IWCs recent release of the midsize Portofino, a 37-millimeter, diamond-bedecked watch clearly aimed at the feminine market. Kern said since the release hes been repeatedly asked by journalists, only male, to explain how the new watch family fits into IWCs tagline, Engineered for Men. He said women never ask that question and he facetiously said hes considered changing the tagline to, Engineered for Men (But Worn By Both Men and Women). So far, sales of the new watches have been brisk though he cant say for sure whether most buyers are men or women. I suspect the latter.3. The world is a mess, but its good for business. Kern said that when there is much uncertainty and turmoil in the world, as there is now, with the growing threat of Ebola, troubles in Ukraine and economic uncertainties, people look for solid investments and products with a history as a sort of port in a storm. While this wasnt a case of schadenfreude, he did admit that, despite what ails the world, business is good.4. Da Vinci is not dead. The IWC Da Vinci Perpetual Calendar Kurt Klaus edition (on Herr Klaus's wrist) The watch family, not the late Italian painter and inventor. Da Vinci has long been the red-headed stepchild in IWCs family, overshadowed by its more established lines like Ingenieur and Portuguese. This is despite some pretty great complication pieces in the oddly attractive tonneau-shaped case.? Da Vinci first appeared in 1970 as a rather expensive quartz watch at a time when quartz was all the rage but then disappeared from IWCs portfolio for a few decades only to emerge as its sophisticated, cutting edge watches. It never truly caught on and has been skipped over in IWCs usual cycle of watch family updates. But when asked if Da Vinci has a future, both Kern and IWCs design director, Christian Knoop, answered quickly and pointedly, yes, with a smile. Neither gave more specifics, but keep an eye out.5. Big things are afoot in Schaffhausen. Artist's rendering of the new facility in Schaffhausen. While I was sworn to secrecy on penalty of a ride over the Rheinfall in cement galoshes, I can say with some certainty that there are some significant changes ahead for IWC, and not far ahead. One clue is in the new technology and manufacturing center IWC just broke ground on in Schaffhausen this fall. IWCs detractors will be pleased with whats to come at Januarys SIHH and in the next five years. So while Kern may be making decisions with his stomach, I like what hes been eating lately. Stay tuned.