Parmigiani soccer deal proves timing's everything

Parmigiani Fleurier CEO Jean-Marc Jacot attends the Reuters Global Luxury Summit in Paris June 3, 2010.

PARIS (Reuters) - The head of high-end watchmaker Parmigiani proved that timing is everything when an opportune phone call led to a lucrative, high-profile contract with France's soccer champions.

Faced with retailer doubts over the viability of the market in the southern French city of Marseille, Parmigiani Chief Executive Jean-Marc Jacot figured the company might be able to seize on the city's recent football success.

Having just ended an 18-year wait to win the French league, Olympique Marseille was looking to buy 40 engraved watches to give to players a week later, and a call to the team's commercial director won Parmigiani a 250,000-euro ($307,500) deal.

"We had to work day and night for several days (to make the watches)," Jacot told the Reuters Global Luxury Summit in Paris on Thursday, adding that a more developed partnership with the club could follow.

The watchmaker is hoping to break even this year and expects sales to rise 20 percent, Jacot said.

Deals such as the one with Olympique Marseille are key to promoting the young brand, which sells around 5,000 high-end watches a year, as it does not spend on advertising and does not seek out superstars to flaunt its products, the CEO said.

"For me, that is a sign of weakness. The only star in the company is the brand," said Jacot.

Still, Parmigiani timepieces regularly end up on the wrists of the famous. Jacot said Russian Prime Minister Vladimir Putin owned a Parmigiani watch and that Microsoft (MSFT.O) co-founder Bill Gates had bought one for his wife, Melinda.

Popular Hong Kong-born actor Jackie Chan could help the brand succeed in the Chinese market, which Parmigiani only entered this year, Jacot said.

"If Jackie Chan wears our watch, many people will buy it," he said.

Back in Europe, business is "still a bit sleepy," Jacot said. The United States had also not started rebounding from the economic crisis yet, whereas Latin America and Russia were doing well.

The high price of gold is weighing on the company, Jacot said. "Now we have to think about hedging gold. The gold price represents 20-25 percent of the total cost of a watch," he said.

Gold reached a record high $1,248.95 an ounce but could climb further, analysts said.

Parmigiani is controlled by the Sandoz family, one of Europe's wealthiest and co-founders of pharmaceutical group Novartis (NOVN.VX).

"If the Sandoz family ever wanted to sell the company, I would buy it," said Jacot. But he added: "They will not sell."

($1=.8131 Euro)

(Editing by Steve Orlofsky)