Thomas Steinemann, DuBois et fils
Angus Davies interviews Thomas Steinemann, DuBois et fils
Angus Davies chats to Thomas Steinemann, DuBois et fils, and learns much about the company he runs. In this interview, the CEO of the Swiss watch brand discusses how he raised capital to fund the company’s growth, talks about the acquisition of over 230,000 vintage Swiss movements and provides an insight into the impact of ‘digitisation’.
I have known Thomas Steinemann, DuBois et fils, for a number of years. In 2014, I visited the company’s ancestral home in Le Locle, reputedly ‘the oldest Swiss watch factory’. Perusing old ledgers and advertising copy from a bygone era, I pondered at the time how this ancestry would be distilled into a suitable message for today’s watch buying public.
Thomas Steinemann, DuBois et fils has proved he is clearly a man on a mission, continuously growing the brand he manages day-to-day. The company has repeatedly launched limited edition watches, each imbued with a distinct character.
Initially, DuBois et fils raised capital via crowdfunding to finance its expansion plans. However, once it achieved its funding goals, it chose to continue selling shares, eager to perpetuate growth. Shareholders have been offered preferential purchasing terms, consolidating their relationship with the Swiss watch company and providing an additional source of revenue.
At the heart of the maison’s paradigm is a capacity to ‘think outside the box’, repeatedly reflecting on the true meaning of ‘luxury’ and refining its business strategy accordingly.
Interview with Thomas Steinemann, DuBois et fils (TS) by Angus Davies (AD)
AD: What makes DuBois et fils special?
TS: The home of DuBois et fils is often referred to as ‘the oldest Swiss watch factory’. Moise DuBois began making pocket watches in 1751. The founder’s house still exists in Le Locle and is still owned by the DuBois family.
Philippe DuBois
Many other Swiss watch brands promote their impressive history. What makes the DuBois et fils company of today so special is that we produce only limited edition watches, restricted to a maximum of 99 pieces. In addition, we own a stock of over 230,000 historical Swiss movements.
AD: As you stated, Maison DuBois in Le Locle is reputedly the ‘Oldest Swiss Watch Factory’. How does this influence today’s DuBois et fils watches? Could you envisage making watches at this site again? Or possibly converting the workshops into a museum?
TS: As I mentioned before, other Swiss watch brands promote their long history and their current watch collections reflects this. We wanted to create a new chapter in the history of DuBois et fils. This encompassed repositioning the brand and the products it makes. We gave the product a new face. We were not interested in copying old DuBois et fils watches and releasing ‘re-edition’ watches, this has been done so many times before. The DuBois et fils watches we produce now reflect a modern lifestyle and embrace a refreshing simplicity.
Maison DuBois, Le Locle
We are not planning to use the founder’s house for production again, but we would love to convert it into a brand museum. In fact, we are in discussions with the family DuBois regarding establishing a foundation for such a project.
AD: In 2012, you raised funds via crowdfunding. Can you explain what benefits this has provided your company with, other than finance?
TS: The idea is simple; many people finance a vision with small amounts of capital. With crowdfunding, investors pay for a product and receive it later once production is in place. We raised finance through crowdfunding, inviting people to purchase shares in DuBois et fils and participate in the long-term success of the company.
DuBois et fils AGM
When you buy shares, you get an immediate return on investment with a voucher for a discount on one of our watches. This scheme immediately provided the company with customer base and many brand ambassadors. Indeed, many of our over 950 shareholders wear a DuBois et fils watch and this combination of customer and investor has proven a great success.
AD: Are there any watches which are exclusive to shareholders?
TS: Our shareholders always have priority when it comes to ordering new styles. This is one of the benefits of being a shareholder. In fact, some of the very low limited edition watches were bought solely by shareholders.
In the future, we will be using historical movements and plan to offer some models for shareholders only. We want to provide our shareholders with more benefits, including exclusive products.
AD: A key aspect of DuBois et fils is the limited availability of its watches. I know that after the DBF005-04 was released you only produced 11 pieces and they all sold immediately. Do you ever test market models before release to ascertain which are likely to be the most popular and adjust the number of limited edition pieces accordingly?
TS: Limited availability is very important to us as we believe it is a fundamental attribute of a luxury product. A DuBois et fils watch that is limited to only 11 pieces makes the customer feel very special. To be one of only 11 people on the planet is a great feeling. The DBF005-04 has a beautiful blue dial. We were aware that blue dials are very popular today and could have easily produced 33 or 99 pieces. However, we believe exclusivity is more important than selling a few more watches. Now, the DBF005-04 delivers a completely different message with only 11 watches in existence than a greater production run of 99 pieces. We believe it is our role to make the customer feel special.
DuBois et fils DBF005-04
AD: I have reviewed several DuBois et fils watches and noted they are constructed to a high standard. For example, your cases are supremely smooth and feature exquisite detailing. How do you convey this added value to the public and differentiate your timepieces from cheaper watches?
TS: That’s one of the biggest problems when you are a relatively unknown brand. Customers relate product value with brand value. In the customer’s eyes they perceive well known brands produce high quality products and the products of unknown brands must be cheaper, even when the product value is in fact higher. High value starts with the design and close attention to details. Details are the main cost drivers, making products more expensive. A high standard of polishing starts with the construction of the case and a close attention to the details. Nevertheless, it is always difficult to convey to the public the high value of a timepiece. Along with effective communication, the touch and feel of a watch are incredibly important.
DuBois et fils DBF001 case components
AD: I believe DuBois et fils has acquired a substantial quantity of vintage movements. Can you provide further details of this acquisition? Are there any consumer benefits from using vintage movements? Are any of these fully integrated chronograph movements? When will these vintage movements appear in DuBois et fils models?
TS: Last year we found a stock of 230,000 vintage watch movements which belonged to a 75 year-old watchmaker. In December 2017, we signed an exclusive contract which provides access to these movements. All of the movements were produced between 1920 and 1970 and come from 20 different factories including Felsa, Peseux, A. Schild, Blancpain, Omega and Tissot.
A small selection of vintage movements
In the last century, there was less automation and many tasks performed by machines today were previously executed by hand. For this reason, old movements had to be very robust, precise and easy to work on.
Most of the vintage movements we acquired are basic manual, automatic, day-date and moon phase calibres. However, we have also acquired movements with additional complications such as an alarm or a chronograph. All of these movements are aligned with our belief that the luxury watch world needs to return to simplicity.
Felsa 4007N Bidynator
The first DuBois et fils watch we plan to make with a movement from this stock is the DBF006, equipped with a Felsa 4007 N Bidynator. In the 1940s, Felsa developed the first movement with a bi-directional rotor termed the Bidynator. The Felsa 4007 N is one of these Bidynator movements and our initial tests have provided impressive results. Indeed, we feel confident that this movement is capable of COSC certification, an impressive result for a movement produced in the late 1940s / early 1950s.
The DBF006 will be our first watch featuring a vintage movement from this impressive historical collection of calibres and will provide a piece of Swiss watchmaking history.
AD: The watch industry is currently experiencing much change with the advent of new technology, counterfeit watches, online discounting etc. What do you think are the greatest challenges for the Swiss watch industry?
TS: Digitisation will be the greatest challenge. All brands have an impressive competence in producing watches, but what’s changing today is how and where we sell our timepieces. Customer behaviour has changed a lot and will change even more in the future. We have said for many years that sales are quickly shifting to the internet and many watch retailers are facing an uncertain future. Brands will open their own online shops and increasingly sell their watches direct to the end-consumer. Digitisation means more than selling online, it means directly communicating with the consumer. This is particularly interesting for DuBois et fils. We want to have as much direct contact with our customer.
AD: What are your aspirations for DuBois et fils?
TS: I want DuBois et fils to be a successful global niche player in the Swiss Luxury watch business. To reach this target we are building a strong DuBois et fils community, where people communicate, eager to be part of something special, unique and exclusive.
Underpinning the huge stock of historical Swiss movements we possess, we are planning to create the first digital online watch movement museum and an E-learning program for repairing historical movements.
We hope this will go some way to heighten the awareness of DuBois et fils and communicate what makes our watches special.
Closing remarks
I always enjoy chatting to Thomas Steinemann, DuBois et fils. His candid conversations provide a refreshing take on the watch industry. Thomas’s thoughts about digitisation and the potential demise of the watch retailing sector will resonate with many individuals who have witnessed the growth of online food shopping, online clothing sales and the commercial desolation of the high street.
The CEO of DuBois et fils has repeatedly shown his capacity to innovate. While crowdfunding has become commonplace within the watch industry, the Swiss firm was one of the first to embrace this method of fundraising. Furthermore, Thomas Steinemann, DuBois et fils did not view his shareholders solely as a means of providing investment, he shrewdly invited them to buy his watches on preferential terms. Immediately, the Swiss firm had a customer base and a number of ‘ambassadors’ modelling his timepieces, potentially attracting additional customers.
As a self-confessed horophile, I was fascinated to hear more about the acquisition of 230,000 vintage watch movements. This is a colossal volume of movements and provides the Swiss brand with a huge competitive advantage. The movements, once stripped and serviced, have the potential to surpass many modern-day calibres in terms of materials used and performance. In particular, the variety of movements will facilitate the release of many new DuBois et fils models.
DuBois et fils DBF002-03
Thomas Steinemann, DuBois et fils does not appear interested in producing huge volumes of watches, preferring to keep his luxury marque exclusive. The limited edition timepieces are restricted to 99 pieces, but often are produced in even smaller batches. It is this approach to watch production which Thomas believes is consistent with the notion of luxury, providing a degree of exclusivity for discerning watch collectors.
The field of watchmaking is populated with many brands. For some, their future seems bleak. It is only by companies differentiating their brand that they can hope to thrive in the competitive arena of horology. Having spoken to Thomas Steinemann, DuBois et fils on several occasions, I have no doubt his approach to business has been duly considered and I, for one, hope it continues to deliver more fascinating timepieces.
Further reading