INTERVIEW - Niels Eggerding (CEO Frederique Constant): "We are very well prepared."

INTERVIEW - Niels Eggerding (CEO Frederique Constant): "We are very well prepared."

The Swiss-made brand Frederique Constant, part of the Citizen Group since 2016, was founded in 1988. Compared to other Swiss watch manufacturers, it is one of the younger companies. Nevertheless, it already boasts an impressively diverse history.

The brand's founding was unusual, too. It neither originated from a large corporation nor was it based on an old watchmaking name that was revived after a centuries-long slumber.

Nothing has changed today, even since joining the Citizen Group. CEO Niels Eggerding, Managing Director and CEO for around eight years, explains the brand's tremendous dynamism as follows: "We're always three times faster than the others because we're younger. We also have a flatter organization than many other companies. And we have everything under one roof."

The result is not only quartz watches but also mechanical models in the price range up to around €4,000, as well as 34 in-house calibers that have been developed and assembled at the headquarters in Geneva since 2004.

At Watches & Wonders 2025 (shortly before Trump's tariff announcement), I spoke with Niels Eggerding about the current challenges facing the watch industry and his personal plans.

Insight Luxury: How satisfied are you with this year's Watches & Wonders?

Niels Eggerding: We're very pleased. We've once again significantly increased the number of our appointments—by around 20 percent compared to last year, to be exact.

IL: What do you think are the differences between W&W and Baselworld, which last took place in 2019?

NE: The focus of Watches & Wonders is much stronger on the high-end segment and appeals much more specifically to the retail sector. In Basel, several very large brands presented themselves, as did smaller, high-volume, and fashion labels. The exhibitor field was much more diverse. That's the biggest difference.

IL: Which format is more suitable for Frederique Constant?

NE: I think W&W offers us many advantages. We're truly excellently positioned in terms of sales, but here we reach our top retail customers particularly well and can share our watches, our expertise, and our stories with them in an exclusive environment. This has worked exceptionally well over the past two years.

IL: Speaking of retail, there are those who are doing very well and those who are a cause for concern. What do you think jewelers need to do today to be successful?

NE: The most important thing for jewelers is to realize that customers no longer just come into the store on their own, just because they have watches or jewelry for sale. Instead, they have to be proactive.

IL: Can you give me an example?

NE: We once offered a very exclusive watch to one of our partner jewelers. The dealer responded by telling me that he had enough inventory for six months and therefore couldn't sell the watch. I then asked him what proactive measures he had taken to improve sales. The answer was: nothing special.

And that's precisely the problem. I suggested to this jeweler that he call his 20 best customers, whom he hadn't seen in the store in the last year, to explain to them that this very special watch was exactly what they needed. Call them and invite them to your store, hold an event, and so on. I'm sure at least two of those 20 customers would have been interested in the exclusive watch. You have to be proactive and always stay in touch with your customers.

IL: How do German jewelers fare in this discipline?

NE: That's not an easy question to answer. They're a bit more hesitant than in France or Italy, for example. Jewelers there are often more responsive to their customers and more flexible when it comes to hosting their own events.

In Germany, jewelers act in a similar way to those in the Netherlands, somewhat more reserved and less emotional.

IL: Given the current global political situation, this might even be understandable at first glance. Even the luxury sector is faltering, and China and the US market are weakening. You never know what will happen next in the global economy. How will this uncertainty affect the Swiss watch industry?

NE: This will have a very significant impact on the Swiss watch industry, and has already had one. After COVID, there was enormous pent-up demand among consumers in the luxury segment, and the market and brands quickly regained momentum.

New employees were hired, inventories were built up, and preparations were made for the continued good business. And then, suddenly, those good times were over. Instead, there was inflation, rising production and energy prices, and declining or stagnating demand. This will, or has already, hit smaller companies particularly hard.

In times of economic crisis like these, customers pay later, but suppliers want their money sooner. This leads to liquidity bottlenecks, which can be very dangerous. Those unprepared for this risk facing existential difficulties.

IL: Is Frederique Constant well prepared?

NE: Yes. We are very well prepared. We also have a large group behind us and have been able to position ourselves well internationally over the past five years.

My most important growth markets were Italy, France, the UK, the US, Mexico, and several others. All of these markets grew significantly: the US by 37 percent last year, the UK by 22 percent, and Italy by almost 80 percent.

But of course, like so many others, things weren't going so well for us in some Asian markets. Fortunately, we hadn't invested much in those markets. Sometimes you just need a little luck.

IL: You once said that you introduced a three-year plan at Frederique Constant. Is it even possible to maintain such a plan given the rapidly changing global situation, which also affects the luxury segment?

NE: I think it's always good to have a plan like that. But things are changing very quickly these days. And that's why, as a company, you have to be able to change. You have to be flexible and adaptable.

Nevertheless, you have to have a clear plan and communicate it. Without a three-year plan for product, financial, and cash planning, it's difficult to interact with employees, suppliers, and so on. You always have to make your direction and vision transparent.

IL: Let's look at the product. If you compare watch design and technology today with those of 20 years ago, you'll notice how vast the range has become. It seems there's almost nothing that doesn't exist. How difficult is product and collection policy in the watch industry today?

NE: Interestingly, watch design today is heavily influenced by past decades, so it's not really new. Nevertheless, the retrospective and revival make it iconic. That's a great thing and generates a lot of demand. I like that.

In terms of technology and materials, things are quite different. There are some great new developments. That's also excellent. Furthermore, many microbrands are emerging that can offer affordable watches.

There is a lot of dynamism and movement in the watch industry right now.

IL: You mentioned the vintage trend. Currently, traditional Swiss brands are celebrating the revival of models or collections from the past. Frederique Constant is too young to do this. Is that a disadvantage?

NE: A little, yes. We can't rely on a history spanning hundreds of years. But we have created exceptional pieces for watch connoisseurs, like the stone dials two years ago. And year after year, we introduce new or further developed in-house calibers. That's something that interests collectors.

We also have very attractive quartz watches in our range that are affordable for young people interested in vintage. I think we do everything we can to avoid being boring, despite our young age.

We're writing our story now while simultaneously building a close relationship with our customers. This is a very viable strategy for the future.

IL: You mentioned the in-house calibers. Frederique Constant is rightly proud of its many in-house movements. But is that really crucial for the majority of your buyers?

NE: That's an interesting question. I don't think you could have made much of a name for yourself 20 years ago. Back then, most watch buyers weren't concerned with such technical details, or it wasn't that easy to get the relevant information and exchange ideas about it.

Today, we have access to all kinds of media, and watch enthusiasts and collectors are extremely well-informed, including about the complex technology of mechanical watch movements. This knowledge and interest of the so-called early adopters, which they spread everywhere via social media, must be taken into account as a brand today to position itself successfully. For us, mechanical expertise is definitely part of that.

IL: So it is always important to listen carefully to consumers and watch enthusiasts?

NE: Absolutely, more than ever. I watch YouTube videos, read comments, and find out what the watch community is talking about. And, of course, what they think about our watches.

It's about listening carefully to the customer and quickly grasping their needs. Simply launching a product that you believe will be successful because of its high quality no longer works. It may have been 20 years ago, but that luxury is gone.

IL: Which Frederique Constant bestseller has this listening strategy led to?

NE: This is still the "Classic Heart Beat Moonphase Date" with our automatic caliber FC 335, which we introduced back in 2014. If you ask me, I'd redesign the watch immediately. But it's been so successful that we're sticking with it.

Last year's new releases are also doing very well. For example, the "Classics Carrée Small Seconds" with the FC-235 quartz movement. This watch was initially very underrated. The "Classics Moneta Moonphase," with a diameter of 37 millimeters, is also doing very well.

And among this year's new releases, a very special ladies' watch is sure to make it into the bestseller club, although we won't be launching it until fall. The feedback we've received so far here at Watches & Wonders has been exceptionally positive.

And then, of course, there's our new "Classic Perpetual Calendar Manufacture" with a salmon-colored dial, a smaller 40-millimeter case, and our 34th self-winding FC-776 in-house caliber with a 72-hour power reserve. Selling this watch will be a breeze. Sophisticated technology, superior craftsmanship, and a beautiful design—all available for under €10,000. A truly smashing price, as is typical for Frederique Constant.

IL: How are things currently going at the factory with regard to recruiting young talent? After all, you have to be able to meet the increasing demand you expect in the future.

NE: It's indeed a challenge with the younger generation. They often demand a high salary with plenty of free time and a low workload. Sometimes I wonder how we can master the challenges of our time with this generation. And then I wonder what my generation might have done wrong.

In any case, one must take the changing expectations of professional life into account in one's strategy. This isn't so easy in the case of Frederique Constant, as we already have moderate margins.

Young talent and skilled workers – this is one of the major challenges for the entire watch industry in the near future.

IL: Does it help to be part of a large group? In your case, the Japanese Citizen Group.

NE: Yes, although it's more about synergies with our Swiss subsidiaries, especially the watch movement specialist La Joux-Perret. Here, we will pool even more expertise and innovations in various areas in the coming years to become even more innovative.

IL: Finally, a personal question. While preparing for this conversation, I came across an interview with you from 2019. There, you said that you dreamed of opening a hotel when you were 50. Does that dream still exist? You still have a few years to go.

NE: Yes, I still share this dream with my wife. A small boutique hotel like that would be fantastic.

You know, I've been CEO at Frederique Constant for eight years now. We have a very flat hierarchy and a rather knowledge-oriented corporate culture, where not everything is rigidly organized and always follows the same pattern. I have a very fast work pace, get up early, make what feels like hundreds of decisions every day, and take an ice bath in the morning to recharge.

The thought of having your own little hotel with relaxed guests in beautiful surroundings is a wonderful prospect. You always have dreams, and who knows...