Ineichen Zurich AG's Chief Executive Director Artemy Lechbinsky: "This year we intend to further strengthen our catalogs with more interesting lots."
Zurich isn't just the home of small famous banks, sometimes referred to as the "Gnomes of Zurich" — it's also home to small watch auctioneers. Chief Executive Director Artemy Lechbinskiy from the Swiss Ineichen Auctioneers is here to tell us about how the pandemic has affected their business.
How was the year of the pandemic for Ineichen? Are you happy with the results for the year?
The year of the pandemic was a successful year for us, in my view. The unfavorable global economic situation had a positive impact on our business. People have tuned their attention to the secondhand market as another way to invest. They've seen that there's an opportunity to make alternative investments in real items at auctions.
The most responsive inflow was from players who were used to the stock markets but abandoned their habitual investment activity in 2020 due to the economic instability and the uncertain future. Like gold, watches have dramatically increased in value.
In general, luxury watches have gone from being a status symbol to also being an investment option. This is a profitable situation for us as dealers, our business margin has grown, which makes us feel confident about the future.
Ineichen Zurich AG's Chief Executive Director Artemy Lechbinsky
Ineichen team
So you acknowledge that there was an increase in activity in the secondhand watch market?
As I've already said, the growth in the secondhand market is significant. But at the same time, I wouldn't separate the pre-owned watch market from the gray market. That's also grown significantly. Especially in Europe, where there's a significantly lower influx of tourists. This has opened up far more opportunities for dealers on the gray market and some collectors to stock up and furnish their collections with rare and popular models. Gray-market dealers are keeping a close eye on the market and paying more attention to the price level than they normally would — to their own advantage, of course. The gray market is growing as a result.
Which brands and trademarks were in demand last year?
The traditional leaders and favorites remained on top: Patek Philippe, Rolex, Audemars Piguet. There's been an increase in demand for IWC in Zurich and in Switzerland's German-speaking cantons. Well, I'd name François-Paul Journe as this year's champion. I'd say that in this regard, no one even came close to him.
F.P. Journe Chronomètre à Résonance
F.P. Journe Tourbillon Souverain Vertical
Which were the most memorable lots and why?
Two lots, both of which happened to be F. P Journe watches: Chronomètre à Résonance and Tourbillon Souverain. They significantly exceeded the estimate of 200 thousand francs, that's what makes them memerable.
Two auctions with almost 500 lots – is that a large amount for you or is it normal?
It's normal. You can't hold a smaller auction, there's just no point: it's not worth the trouble. There needs to be at least 250 watches at every auction. After all, you need to prepare catalogs for them, which take almost six months to write.
What advantages do small auction houses have over large ones? When is someone better off going to Ineichen instead of, say, Philips?
From a business point of view, the main advantage small houses have is primarily that we have less overheads. We don't have branches in New York, Hong Kong, or anywhere else. We spend far less money on advertising and keeping a large amount of staff on payroll. And our clients find us attractive because we aren't overly selective. We can put up the kind of models for auction that, say, Phillips wouldn't even consider looking at.
Audemars Piguet’s Royal Oak Perpetual Calendar
Patek Philippe Calatrava 6007A
What do you expect from 2021?
The main thing we expect is that there'll finally be an antidote to the coronavirus. As a result, the economy will begin actively emerging from the crisis and will grow over the next five years, and like other markets, ours will also grow and expand.
What will it take to develop Ineichen Auctioneers?
For this current year, 2021, our main goal would be to seriously strengthen and develop the auction house's marketing strategy. We're planning a number of marketing campaigns. We also intend to strengthen our catalogs with more interesting lots, and conversely strengthen them by getting rid of the weak ones. If we succeed, we'll be in a stronger position.