Patek Philippe reference 5098P. The new calibre 25-21 REC (for rectangular movement) powers this classic-looking timepiece. RRP: $56,300

WHILE the watch industry experiences buoyant markets worldwide, more brands are proclaiming themselves to be a manufacture d'horlogerie these days. However, the term "manufacture" is more often than not abused as a marketing gimmick to promote sales.

In the first place, what is a "manufacture"? Generally speaking, it is a watchmaking company that produces everything in-house, from the components such as the bridges, screws and balance springs, practically all the parts that make up the movement or "engine" of the watch, to the final assembly.

But this is hardly ever the case. Only a few companies have all the resources to truly claim that they can manufacture everything in-house. Probably the Swatch Group and Rolex are prime examples of watchmaking companies which can really live up to the label of "manufacture".

Jaeger-LeCoultre, another "manufacture" which has a long history of producing watch movements for many third party brands, does not boast of making everything in-house, but it does produce more than 90 per cent of the components for their watches, according to its chief executive officer Jerome Lambert.

Other watchmaking companies which come close to a being a true "manufacture" are Patek Philippe, Audemars Piguet, Girard-Perregaux, Chopard LUC, Piaget and Vacheron Constantin. These companies generally produce most of their own components and even conduct the final assembly within their premises.

Many watchmaking brands want to position themselves as a "manufacture" because it places the brand on a higher plane, implying that the watches offer better value. Contrast this with the practice of other brands that outsource production and assembly to third parties while selling the final product with their brands painted on the dials.

For those that lack an identity because they do not even design their watches, what they are selling really are their brand names. Understandably, watches which come with in-house movements are able to gain more attention and they stand out from the crowd, and they are likely to command premium prices and sell better.

Specific timepieces with in-house movements or calibres, such as the Millenary watch with deadbeat seconds from Audemars Piguet, and the new tonneau-shaped calibre 25-21 created specially for the Patek Philippe reference 5098P, would prove beyond doubt that "manufacture" movements are highly desirable pieces for serious watch collectors. Other brands that boast of in-house movements include the Roger Dubuis with its Excalibur Globetimer.

While it is obvious that in-house movements are generally important for purists, it is debatable whether non in-house movements are deemed to be of lesser value. For example, a watch can be extremely sought after by serious collectors because it is rare even though it houses a third-party base calibre.

The Audemars Piguet Millenary watch with deadbeat seconds is powered by an in-house movement. RRP: $268,000		The Montblanc Collection Villeret 1858 Grand Chronograph Authentique houses the calibre 16-29 made by Minerva. RRP: $143,470
Hermes Dressage Annual Calendar. The date and day displays need to be corrected once a year with the annual calendar feature. RRP: $54,430.		The Roger Dubuis Excaliber EX45 world time features a triple time zone display and is powered by the RD1448 manual winding movement. RRP: $335,800

Even then, many brands have ambitions to have their own in-house manufactured calibre. The most tedious and costly way to do this is to set up a manufacturing facility from scratch. However, there are faster ways, albeit still costly.

Hermes, famed for its leather goods and fashion wear, demonstrated its seriousness in watchmaking when it acquired a 25 per cent equity stake in Vaucher Manufacture last year. Vaucher Manufacture produces movements for prestigious brands such as Parmigiani, Richard Mille and Corum. With the acquisition, Hermes is technically now a "manufacture".

The RD1448 calibre made by Roger Dubius. This smart looking Tudor chronograph (main head picture) does not use Rolex movements but third-party calibres. RRP: $3,578

Montblanc is yet another brand that is entering the watchmaking fraternity in a serious manner. Its most recent models feature beautifully crafted calibres exclusive to Montblanc and made by an established watchmaking company Minerva. Minerva is owned  by the Richemont Group, which counts Montblanc as a key brand within its portfolio. With both Montblanc and Minerva as its subsidiaries, who is to say that the movements are not made in-house?

Interestingly, not everyone wants to move up the watchmaking ladder. Rolex can very well produce its own movements but instead, it houses modified third-party ETA base calibres in its Tudor timepieces. As such, Tudor timepieces are offered at lower prices compared to Rolex and it targets a larger market base.

What factors you would consider when buying a watch? Is it the in-house movement? Or is it the emotional and aesthetic appeal offered by the watch? Brands that design and develop their own calibres and invest heavily in integrated manufacturing operations to produce most of the required components in-house should be respected.

However, the brands must not forget the commercial aspects of watchmaking, that is, they should produce what the collectors want. Not everyone will buy a watch just because it is an in-house movement. It is all about balance. After all, to succeed in attracting the buyers, the age-old maxim applies - the customer is always king.