The decision by five leading watch brands to pull out of the Baselworld tradeshow, which had been rescheduled for January 2021 due to Covid-19, can be seen as a stark warning about the need for all stakeholders to work closely regarding issues of cancellations, postponements and refunds.
The big five watchmakers Rolex, Patek Philippe, Chanel, Chopard and Rolex sister-brand Tudor dropped a bombshell on Baselworld organiser MCH Group, by announcing plans to withdraw from Baselworld –the largest watch exhibition in the world — for 2021.
The announcement follows a series of open letters and fierce debate about organisers’ plans for the show and handling of refunds. The head of the Baselworld Exhibitors Committee, Hubert du Plessix, a Rolex Director, had written calling for refunds to be issued to exhibitors and warned that if they were not, “we fear this will be the end, pure and simple, of Baselworld”. Prescient words, it would seem.
Now it is reported that the five brands are working with the Fondation de la Haute Horlogerie (FHH) to set up their own event in April 2021. The new tradeshow, however, may be linked to the Watches & Wonders exhibition that is due to take place around the same time frame.
The FHH is still to formally comment on the issue but is the organiser of the Salon International de la Haute Horlogerie (SIHH), which this year was renamed Watches & Wonders Geneva. That show had been due to take place later this month at Palexpo but was also cancelled due to Covid-19.
Baselworld 2020 was originally due to run 29 April and into May before it was pushed forward into January 2021.
As well as the refund issue, some reports have suggested the decision on the January rescheduling of Baselworld was taken without full buy-in of the exhibitors and the new dates are said to conflict with other exhibitions around the world in the sector.
MCH Group, for its part, has claimed ‘surprise’ at the statements made by the Big Five regarding the Baselworld cancellation and released the following statement:
“It is with great surprise and equally great regret that the MCH Group takes note of the cancellation of major exhibitors at Baselworld. The new date for the unavoidable postponement of Baselworld 2020 was defined jointly with leading exhibitors. The objective was to find the earliest and best possible date for the industry following the Covid-19 related measures. The companies now ‘migrating’ - including Rolex - spoke out in favour of a postponement to January 2021. They are also represented on the Exhibitors’ Committee, where the future vision of Baselworld has been discussed on several occasions and has met with a positive response, as was also evidenced by countless individual discussions. The intention to move to Geneva has never been mentioned. The MCH Group must therefore conclude that the relevant plans have been in preparation for some time and that the discussions concerning the financial arrangements for the cancellation of Baselworld 2020 are now being put forward as an argument.
“On the basis of the positive and supportive feedback received from exhibitors, especially the small and medium-sized exhibitors from the watch, jewellery, gemstone and supplier industries, the MCH Group decided last year to invest substantial sums in the further development of Baselworld and in the establishment of additional digital platforms. The MCH Group is convinced that, in addition to a physical platform, a connection with the community must be maintained throughout the year. “More than ever before, it sees an opportunity to develop a modern platform in the watch and jewellery industry for brands that do not rely primarily on tradition, but above all on innovation. In the next few weeks, the MCH Group will be making a decision on the continuation of Baselworld and on investments in its further development, which is geared to the long term.”
Whatever transpires with Baselworld, it is an ugly episode for this sector and for the tradeshow business. While EW's own general feedback is that the overwhelming number of organisers and venues are working hard and closely together to find solutions to the serious scheduling problems caused by Covid-19, clearly some are prone to take a hard, unilateral line and, in so doing, look to be damaging the very business that underpins their sector.
