In the genteel world of luxury watches, a commitment to the unconventional has helped Australian brand Panzera deliver a custom order to some of the US Air Force’s most elite pilots.
Panzera this week announced members of American aggressor squadrons — pilots who train others in simulated combat — have commissioned the Sydney-based brand for a commemorative timepiece.
Aviation squadron watches are relatively common, with active and retired pilots turning to established Swiss manufacturers like Breitling or IWC for bespoke orders.
IWC, a long-time producer of pilots’ watches for military and commercial customers, has an official license to the ‘Top Gun’ name and has even produced a watch for members of the Royal Australian Air Force.
But Andrew Herman, co-founder of Panzera, says his business secured the aggressor squadron order because they do things totally differently to IWC and its storied counterparts.
“We’re probably one of the few brands that actually sell from the brand level directly to the consumer,” he told SmartCompany.
Where Swiss brands occupy prime real estate in Australia’s priciest shopping districts, Panzera goes without bricks-and-mortar retail.
This approach has given Panzera global reach since its launch in 2009, with American buyers now making half of its total sales.
“Obviously some of the pilots in the US Air Force had actually purchased our watches online,” said Herman.
“Two or three of them actually were commenting, ‘Well, this would be a great squadron watch.’”
“So they got together, and one of the lead guys came to us and said, ‘Look, would you be able to build one for us?’”
The result is a custom version of Panzera’s Flieger (aviator) 45G, complete with a custom emblem symbolising membership, past or present, to some of the US Air Force’s most specialised units.
Doing things differently to Swiss giants
A civilian version of the watch is available to the public, without the custom insignia, starting at $1,238 — a significant sum by any estimation.
But Herman says going without traditional storefronts and brand-building marketing campaigns helps keep overheads far lower than its European counterparts.
Panzera assembles most of its watches in Australia using components sourced from Italy, Switzerland, and Germany.
The 45G’s movement — its mechanical heart, capable of keeping track of two time zones at once — is manufactured by Japanese watch giant Seiko.
Many watch collectors prize timepieces with in-house movements, built and assembled by the brand itself, as a sign of horological pedigree.
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The problem is original movements are fiendishly difficult to design and expensive to manufacture, before even taking quality control and maintenance costs into consideration.
Herman says using pre-fabricated parts actually benefits Panzera, allowing it to focus on what the brand does best.
Building new movements is a “very costly exercise,” said Herman.
“You have to have the volume, and I think you have to have the credibility to get away with doing it.
“Otherwise, it can almost be seen as a negative to use something that’s not standard.”
Panzera co-founders Andrew Herman and Roger Cooper in Lugano, Switzerland. Source: Supplied
Its Japanese movements are “well-known in the industry, and [customers] know they work,” he added.
“They’re good workhorse movements. They’re reliable.”
Herman is quick to point out that, until recently, IWC and Breitling also retooled movements for their most popular watches from third-party manufacturers.
Some of Panzera’s more high-end models utilise Swiss-made Valjoux movements, and the brand is considering using even more boutique components in future models.
“Will never go back to the full retail model”
Eschewing standalone stores or even retail distributors puts Panzera in a rare group of watch brands.
Perhaps the closest comparison is British watchmaker Christopher Ward, which relies on a direct-to-consumer model but operates two showrooms in the UK and US.
Panzera, which operated a store in its early days, is contemplating similar showrooms where shoppers can try a watch before purchasing online.
“But we will never go back to the full retail model,” said Herman.
“It throws you in with everybody else.”
The brand sees its current approach as a “differentiator” that ensures its watches are not “hard to get or super expensive”.
“But the quality is there, so that people are proud to own them, at an accessible price point.”
The other point of difference, setting Panzera against prevailing industry trends, is the size of its watches.
The ’45’ in 45G designates a case diameter of 45 millimetres, putting the watch firmly in ‘extra large’ territory.
Pilots’ watches were originally made in jumbo sizes, ensuring visibility in the cockpit, but many manufacturers now offer downsized versions to suit modern civilian tastes.
“We have a philosophy that our watch is a big, bold, rugged-looking thing,” said Herman.
“So that’s our style for Australian watches…. My belief, and one we’ve stuck with, is if you’ve got to wear a watch, wear one people could see.”
Look to the skies over America, and you might see Panzera watches there, too.
