HODINKEE Podcasts
The Business of Watches [018]: Zenith CEO Benoit De Clerck
Release Date: March 4, 2026

Episode Overview

This episode of HODINKEE’s The Business of Watches explores both the enduring legacy and evolving business strategy of Zenith, one of Switzerland’s most historic watchmakers. Host Andy Hoffman is joined first by watch expert and collector Logan Baker for an in-depth discussion on Zenith's history and collector appeal. The centerpiece of the episode is a candid interview with Zenith CEO Benoit De Clerck, diving into how Zenith is navigating economic challenges, balancing supply and demand, the brand's heightened role as a movement supplier within LVMH, and directly addressing rumors about Zenith’s potential sale.

Segment 1: Zenith’s History & Collectibility (00:01 - 12:53)

Key Points & Insights

• Historical Legacy and Innovation:

  • Zenith celebrated its 160th anniversary in 2025, underscoring its long-standing presence and manufacturing continuity in Le Locle.
  • The brand’s integration of manufacturing, inspired by American companies like Waltham and Elgin, is highlighted (B, 02:25).

• Leadership and Evolution:

  • Reflects on leadership eras, especially contributions by Jean Frederic Dufour and Julien Tornard for stabilizing and refocusing the brand (B, 04:14).
  • Recognition of Romain Marietta’s influence on product vision.

• Notable Collector Pieces:

  • Logan showcases three Zenith watches from his collection:
    • A 1960s time-only small seconds with a calibre 40T, echoing the brand’s chronometry focus (B, 05:23).
    • A 1970s square Defy with integrated bracelet, embodying Zenith’s experimental design during the quartz crisis (B, 06:22).
    • A 1990s Elite GMT with pusher functionality, representing an underappreciated but innovative era (B, 07:19).

• Brand Positioning:

  • Discussion of Zenith’s status as an enthusiast brand and debate on whether Zenith should aspire to mainstream global recognition like Breitling or Rolex (A, 08:23; B, 08:54).

• Industry Context:

  • Briefly pivots to a discussion around private equity ownership and valuation adjustments at Breitling, concluding that short-term valuation fluctuations don’t diminish long-term brand strength (B, 11:24).

Notable Quotes

• "Zenith is...one of my favorite brands. The heritage and the history is a big reason...But it's not just that, I mean it's their history in chronometry..."
  — Logan Baker (B), 02:25

• "Is the goal to become a top five Swiss watch brand? If you ask...the employees at Zenith and LVMH leadership, it probably is, but I don't know if that's necessarily the best choice..."
  — Logan Baker (B), 08:54

Segment 2: Interview with CEO Benoit de Klerck (13:07 - 49:56)

Zenith’s Brand Philosophy and Product Lines

• 160 Years in Le Locle:

  • Continuous manufacturing in Le Locle is foundational to brand identity, emphasizing authenticity (D, 13:54).

• Streamlined Product Pillars:

  • Zenith now centers its offerings around four main lines: Defy, Chronomaster, Pilot, and the recently introduced “GFG” (Georges Favre Jacot) line (D, 15:03).

• Calibre 135 and Anniversary Pieces:

  • The GFG collection, launched for the 160th anniversary, features the celebrated calibre 135, priced around CHF 50,000 and made in extremely limited quantities (D, 16:17, D, 16:50).
  • "The best testimony is that we won the Grand Prix...That was great for the brand, but most importantly great for the team."
    — Benoit de Klerck (D), 16:50

El Primero Movement and Movement Supply Strategy

• More Than Just El Primero:

  • While El Primero remains a pillar, Zenith does not want to be seen as a one-movement brand (D, 18:43).

• Supplying Movements within LVMH:

  • Zenith's “manufacture” is increasingly producing movements for other LVMH brands, such as recent collaborations with Tiffany and ongoing work with Hublot and Gerald Genta (D, 27:39).
  • "We have a specific savoir faire, we have credibility as well...What you see in that manufacturer is what you get."
    — Benoit de Klerck (D), 27:39

• Strategic Focus:

  • Current priority is internal LVMH supply before considering external clients, though a return to supplying outside brands is not ruled out ("Let’s do our homework first. Let’s stay within the family first..." — D, 34:51).
  • The CEO expresses dual focus: (1) the Zenith brand and (2) Zenith as a powerhouse movement manufacturer, describing them as “two legs” supporting overall strength (D, 33:20).

Navigating Economic Challenges

• Supply and Demand Discipline:

  • Benoit reveals Zenith deliberately produced fewer watches than demand in 2024 and 2025 to avoid market oversupply—a strategy he describes as a major achievement (D, 22:25, D, 24:12).
    • "We didn't have to push stock with our partners or in the market..." (D, 22:47)
    • Weekly meetings across departments to tune production to sales realities (D, 24:30).

• Addressing Sale Rumors:

  • Directly denies any plans for LVMH to sell Zenith, calling the news "completely erroneous...the brand is not for sale" (D, 25:41).

Brand Identity, Positioning, and Strategy

• Post-Covid Market and Consumer Trends:

  • Consumers now seek authenticity, substance, and “the heart of watchmaking,” which has shaped Zenith’s messaging and output (D, 35:41).
  • Emphasizes the “human touch” and open-manufacture philosophy as key to the brand's differentiation.

• Product Release Strategy:

  • 2026 novelties will shift focus away from the Defy line, instead highlighting Zenith’s other pillars at Watches & Wonders (D, 47:04).

• Market-Specific Focus & 2026 Outlook:

  • Key markets: USA, Japan, Middle East, with Europe and other regions tracked in tiers.
  • 2026 starts "in the green"—signaling cautious optimism for continued, healthy, controlled growth (D, 45:27).

Price Positioning & Cost Management

• Average Price Points:
  • General price increases attributed both to rising costs (Swiss Franc strength, precious metals) and intentional repositioning of select higher-end products (D, 41:25).
  • Ongoing efforts to balance “a lot of watch for the money” with necessary price adjustments.

CEO Perspective & Leadership

• Growth Philosophy:

  • “Cautiously aggressive” approach: balancing drive for growth with prudent management of supply and demand (D, 43:10).
  • Focus on preserving brand health for “another 160 years.”

• Leadership Continuity:

  • Recognizes predecessors’ achievements and aims for measured evolution, not revolution (D, 39:30).

Memorable Quotes

• "For me, selling and sell out are a definition of the health of the brands."
  — Benoit de Klerck (D), 21:25

• "I check the Swiss franc value almost every morning because it's definitely our biggest cost..."
  — Benoit de Klerck (D), 41:25

• “We are not going to be a mega brand one day. We are definitely a brand for people in the know, for people who appreciate history...”
  — Benoit de Klerck (D), 39:40

• “I'm cautious, but I'm optimistic overall and I'm optimistic for this year.”
  — Benoit de Klerck (D), 49:56

Important Timestamps

• Zenith Heritage & Leadership Discussion (Logan Baker): 02:25
• Collector Zenith Models Show & Tell: 05:23 – 08:22
• Brand Growth & Mainstream Appeal: 08:54
• Breitling Valuation Context: 11:24
• Zenith CEO Segment Begins: 13:07
• Product Pillars & GFG Line: 15:03
• Calibre 135 Anniversary Story: 16:50
• El Primero’s Role Today: 18:43
• Movement Supply to LVMH Brands: 27:39
• Production Strategy and Sell-In/Sell-Out: 22:25 – 24:30
• Rumors about Zenith Sale: 25:41
• Future Movement Supply Outside LVMH: 34:51
• Price Policy & Currency Pressures: 41:25
• 2026 Growth Outlook & Market Priorities: 44:25-45:27
• Product Novelties Strategy for 2026: 47:04
• Closing Optimism for 2026: 49:56

Final Thoughts

This episode delivers unusually clear, executive-level transparency on how a venerable Swiss watch brand like Zenith is approaching market headwinds, balancing exclusivity with controlled growth, leveraging manufacturing know-how within LVMH, and making authenticity the cornerstone of its competitive advantage. Benoit de Klerck’s leadership comes through as pragmatic, thoughtful, and anchored in Zenith’s historic strengths—with his “cautiously aggressive” mantra set to define the brand’s next chapter.

Listeners will come away with fresh insights into what makes Zenith unique, both for collectors and for those interested in the wider business of watchmaking.