Audemars Piguet’s outgoing CEO François-Henry Ben Nimmias gave knowledge nerds like me a parting reward by revealing often non-public details about the corporate’s gross sales, manufacturing and distribution.
The figures are more likely to have a chilling impact on multi-brand retailers struggling to keep up partnerships with watchmakers Richemont, Swatch Group and LVMH, that are more and more promoting on to customers or opening mono-brand shops as franchises.
Even Patek Philippe is shifting in the identical route, demanding extra publicity and area from retail companions because it weathers a 30 p.c drop in world doorways whereas growing funding in its personal shops in key cities like London and Paris.
You’ll be able to see why that is the case by wanting on the AP knowledge.
Shifting away from multi-brand retail and towards owned or franchised shops whereas decreasing the variety of doorways worldwide from almost 400 in 2015 to below 100 in the present day has remodeled the corporate.
Gross sales per level of sale have elevated tenfold lately, from CHF 2.3 million in 2015 to CHF 23.7 million now.
No surprise each luxurious retailer on this planet is determined to hitch (or rejoin) the celebration. AP is a cash printing machine.
It ought to be famous that Audemars Piguet’s gross sales don’t equate to revenue.
Though it’s costlier to run your individual retail retailer, even this has been addressed to some extent with the off-street idea and due to this fact way more cost-effective AP Home idea.
There are nonetheless companions. Arije runs a model boutique in London’s Knightsbridge and Watches of Switzerland is opening an AP Home in Manchester this 12 months.
In America, Materials Good operates AP showrooms in New York, Aspen, Boston and Dallas.
London Jewelers has an AP boutique on Lengthy Island, New York.
Main Swiss watch manufacturers will have a look at AP’s (and Richard Mille’s) numbers and are available to the inescapable conclusion that much less is extra in the case of distribution for makers of watches that promote for greater than $50,000.
Retailers should display that they carry abilities, expertise and relationships that exceed a model’s need to function instantly, and this 12 months they need to shine in a market dealing with vital headwinds.
Working by ready lists is not going to be sufficient. Clients should be discovered for watches that may be discovered on the secondary market at vital reductions.
I proceed to imagine that the watch sector might be considerably weakened and fewer resilient if manufacturers all construct and function their very own companies.
They want the consistency and keenness that household jewelers carry and the a long time of retail experience that firms like Ben Bridge, Reeds, Bucherer and Watches of Switzerland carry.
However do not be below any illusions. Cash talks, and AP’s proof as Mr Ben Nimmias leaves AP, present that fewer shops ship distinctive outcomes.