SDC Weekly 77; Resonance Riddles; Watch Etiquette; Narcissistic Collectors; Lessons from the Airline Industry
Asian Watch Market Update, Guilloché Again, LVMH Drama, Journe's O'Leary Gaffe, Chris Ward Loses Their Way, Hodinkee's New EIC, Richemont Reshuffle, Jet Lag, Does Resonance Work, Luxury Beliefs +++
🚨 SDC Weekly again! Estimated reading time: ~39 mins
This week, we explore Bernard Arnault’s courtroom testimony about alleged corporate espionage, examine F.P. Journe’s contradictory stance on limited pieces, and dive deep into some psychology mumbo jumbo :) We will analyse parallels between airline pricing strategies and the watch industry, unpack resonance mechanisms, and look at how narcissism shapes collecting behaviour. Plus, we’ll look at Hodinkee’s latest leadership change, Richemont’s ongoing restructuring, and some practical advice about managing jet lag for watch collectors who travel. There’s more, but you’ll find out soon enough…
If you’re new here, welcome! Feel free to catch up on the older editions of SDC Weekly here.
🎈 Small stuff
LVMH Drama Returns
Well, this is awkward. Bernard Arnault, the man who runs LVMH like his personal fiefdom, just had to testify in a Paris courtroom about an alleged spy network watching his critics. The Wall Street Journal reports Bernard Squarcini (nicknamed ‘the Shark’) - LVMH’s former security chief and ex-head of French domestic intelligence - is on trial for allegedly running surveillance operations against journalists and rivals.
The spiciest bit is that prosecutors claim Squarcini’s team went full James Bond from 2013-2016: sifting through journalists’ rubbish, following them around, and even planting moles in a newspaper called Fakir. All this drama apparently centred on François Ruffin, a leftist filmmaker who’d been criticising LVMH’s factory closures in northern France.
Arnault, playing it cool as ever in a navy suit, claimed total ignorance: “I was absolutely unaware of this”, he told the court. 😂 Of course, Bernie! According to him, his late deputy Pierre Godé handled all security matters. Rather convenient that Godé passed away in 2018 and can’t confirm or deny anything.
The courtroom exchange between Arnault and Ruffin was pure theatre. When asked if he’d seen Ruffin’s documentary about laid-off workers, Arnault quipped it was “rather funny” and “certainly better in terms of cinematography than politics.”
Things got spicy when Ruffin’s lawyer brought up factory closures in northern France. Arnault snapped back about creating 190,000 jobs, asking “Does that work for you? Does that work for Mr. Ruffin? Or do we have to continue with this idiocy?”
While LVMH already settled with the French state for €10 million to stay out of the case, watching luxury’s most powerful figure squirm under questioning makes for fascinating theatre. Squarcini faces a potential four-year suspended sentence if convicted.
For what it’s worth, Squarcini claims protecting Arnault was in France’s national interest; Because nothing says ‘national security’ quite like spying on journalists who criticise your handbag empire, right?