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Lesson #4: “When you are weak, you must act as if you are very strong”

Article Overview: Biver has built a reputation for himself by bringing companies back from the brink. Blancpain, Omega, Hublot – all three had fallen into relative obscurity before Biver stepped into the picture. After a short time there, each had risen to the top of the industry. Thus, when the recession hit in the late-2000s, Biver was qualified more than most in knowing how to get through it.

Lesson #4: “When you are weak, you must act as if you are very strong”

Biver has built a reputation for himself by bringing companies back from the brink. Blancpain, Omega, Hublot - all three had fallen into relative obscurity before Biver stepped into the picture. After a short time there, each had risen to the top of the industry. Thus, when the recession hit in the late-2000s, Biver was qualified more than most in knowing how to get through it. "I think in times like this for luxury, the more we attend conferences, the more we continue to develop with our activities, the more we continue to share with our peers, the better. Now is not the moment to stop," says Biver. "Unless you believe the slump will last several years then perhaps you need to re-organize and look at your expenses. As long as we believe the crisis is short-term, that is, 6-18 months which is nothing in the history of a brand, then there's no reason to stop being active. In fact, on the contrary, we must invest in innovation, we must invest in marketing, we must invest more - not less!"

To that end, Biver uses the less than good times to invest in promotions, in travel, in research and development. "When the crisis comes and you see the brand you like diminishing in visibility, you think they are affected. So, when you see a brand continue to be strong, it simply reaffirms that they are strong," says Biver. "We did not panic. We did not give up in marketing expenses. We did even more events...During the worst part of the crisis, we increased traveling while others are decreasing travel costs. We spent 2 million Swiss francs more on traveling because I told everybody now is a time for us to go to all our markets and show we are still here."

For instance, Biver traveled to China more than most other CEOs in his business, cultivating business by developing connections and promoting visibility. "I went once every month to China in 2009," he says. "And you see from the results that we are really gaining momentum there. We have kept our visibility and we were constantly in the press, constantly in the market and taking advantage of our great relationship with our partners and friends."

The work paid off, such that in 2009, Biver said, "It is with regret that I say the crisis is now over."

Traveling is just one factor in Biver's strategy. The other is to invest in research and development. "You should never stop learning," he says. "When we are young, we very often believe we know everything. And I realized when I was 40 that I have to start to learn, because through learning you grow richer and you improve yourself."

From learning and self-improvement, Biver says comes sharing with others: "We must be prepared to share our knowledge, our experience, our success and failures. Once you share, you will find that people around you are ready to help which only makes you stronger. The sharing process is extremely important because it allows you access to other perspectives and knowledge."

To that end, Hublot sponsors its own four-year watch-making school, which accepts 25 students each year and teaches them the art in all its forms. Remarkably, the students are allowed to go work for any company of their choice - even Hublot's competition - upon graduation.

Hublot has also set aside 8,000 sq meters in its new factory as rental space for start-up businesses of any kind. The rent? $1 per year.

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Article Tags: 2000s, brink, ceos, conferences, contrary, gaining momentum, good times, innovation, omega, peers, promotions, recession, relative obscurity, reputation, research and development, short time, slump, swiss francs, travel costs, visibility



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