A version of this article first appeared in CNBC’s Inside Wealth newsletter by Robert Frank, a weekly guide for high-net-worth investors and consumers. Sign up to receive future editions directly to your inbox. Prestigious Swiss watch brand Audemars Piguet is breaking down the marketing barriers that separate men’s and women’s watches, as women are the biggest growth driver for luxury watch sales, the company’s CEO said. Audemars Piguet will no longer market its watches specifically to men or women, and will no longer refer to “men’s” or “women’s” watches in its boutiques or marketing. “I’m changing the story and structure of the brand,” said Ilaria Resta, CEO of Audemars Piguet. “I stopped defining a watch as a men’s watch or a women’s watch. In some ways, I think it’s wrong to say that the company has predefined the buyer. I think it’s wrong to say to women, ‘This is a watch for men. It’s not our job to say, ‘Here’s your watch.”’ The move reflects a surge in demand. Women want expensive mechanical watches traditionally made for men and an increasingly blurred line of luxury products. This is also a highly symbolic change for AP, which is part of the “holy trinity” of Swiss watches alongside Patek Philippe and Vacheron Constantin, and is likely to have an impact on the entire industry, which is undergoing rapid transformation. . Resta, who took over AP a year ago, is one of the first female CEOs of a top Swiss watch brand. Her appointment seemed to officially confirm the importance of women in the $100 billion-a-year luxury watch business. According to Market Research Future, the women’s watch market alone is expected to reach $35 billion by 2032, up from $28 billion in 2023. The luxury watch business is entering its third year of decline, and attracting women and younger buyers will be key to restoring growth. Resta cited research predicting that 45% of women will purchase a mechanical watch by 2030. She said the number of women walking into Audemars Piguet stores in the U.S. and buying watches for themselves has increased by 11 percent over the past two years. Of the top 50 Audemars Piguet watch collectors in the world, several are women, Resta said. With women expected to receive nearly half of the $100 trillion millionaire wealth, both as spouses and offspring, their purchasing power in watches is likely to continue to grow. Conventional wisdom in the luxury watch industry has been that women prefer more feminine versions of watches, usually smaller, more colorful, more likely to include diamonds or gemstones, and less complicated. . But with the rise of genderless luxury trends, including unisex clothing, accessories, fragrances and jewelry, the shape of watches is also changing. “Women love diamonds just as much as men, and their love for complications is growing,” Resta said. “The opposite is also true. We launched a 34mm flamingo with a pink dial, and a lot of men are also interested. We’re just reflecting society.” Along with eliminating gender distinctions, the Associated Press has spotlighted women at many events and marketing events, including Serena Williams and Simone Biles at Art Basel Miami in December; It will also include events with leading female entrepreneurs and executives. Given AP’s prominence, Resta’s move carries enormous weight in the luxury world. In an industry where most watch brands are in decline, AP’s sales rose to $2.7 billion in 2023, according to a Morgan Stanley report. Audemars does not disclose financial information or production numbers, but analysts estimate that the company produces only 50,000 watches a year, compared to more than 1.2 million for Rolex. I am doing it. Due to limited supply, AP is difficult to purchase, even for those who can afford well over $25,000 to $250,000. Audemars is also one of the few luxury watch manufacturers that has remained independent and family-owned since the 1800s. Most luxury watch brands are consumed by LVMH, Richemont, and other large luxury conglomerates. Family businesses often value long-term brand reputation and craftsmanship over sales growth, and production typically increases only minimally each year. At the same time, AP has become a popular wrist flex among top athletes, celebrities, and young collectors, achieving superstar status on Instagram and other social media platforms. Last month, Tom Brady’s customized Audemars Piguet Royal Oak Flying Tourbillon sold at auction for $720,000. AP’s rarity is one of the reasons the brand continues to shine even though much of the industry has been in decline for more than two years. Swiss watch exports fell 3% year-on-year through November, as a slowing Chinese economy and weak economies in Europe and other parts of the world hurt demand for new and used luxury watches. Prices for used Rolexes are down about 30% from their peak, according to the Bloomberg Subdial Index. Similar to the broader luxury goods downturn, the luxury watch downturn has created a new divide between the more mass-market companies currently experiencing the biggest declines and those that remain highly exclusive and less affected. is producing. Although considered an unlikely choice to run one of the jewels of Swiss watchmaking, Resta is moving quickly to adapt to a more competitive landscape. One of her biggest goals is to push Audemars further into the luxury market, with a focus on growing its most complex and expensive watches. She says the aim is not to increase profit margins, but to return to AP’s roots, where the most skilled watchmakers dream up ever more exquisite and innovative pieces that set them apart from their competitors. “Our mission is really shifting from really quantitative to more high-end,” she said. “We’re growing organically, but we’re also adding more complications to our watches. We started out as very complicated watches, so we’re going back to our roots,” says Resta. We are also reaching out to young and prospective collectors through innovations, including a new center for developing advanced materials such as forged carbon and new finishes, and new types of retail experiences that are yet to be announced. Mr. Resta declined to provide further details, but the new store, or pseudo-museum, will complement the company’s AP Houses, luxury residential-style lounges in prestigious cities around the world that are popular with elite clients. He said he was deaf. “My passion and belief is that we have a responsibility to pass on the culture of watchmaking and the history of watchmaking that has served humanity,” she said. “With our new retail model, we are trying to open the door for people who can’t afford to buy a watch, or who are just interested in watchmaking, to at least have access to the brand.” After all, No matter how strong or weak the luxury market is, Resta says selling five- or six-figure watches is about creating emotion. She said wealthy watch buyers need to feel a sense of belonging and connection when purchasing ultra-luxury watches. It goes back to the company’s roots in the Jura Mountains, the master watchmakers who have created miniature wonders for generations, and the care that goes into each watch over generations, regardless of its owner. Masu. “Yes, we sell watches that are extremely valuable and extremely complicated to sell. But what we are really selling is emotion, interaction with the customer, and intimacy.” “We’re selling it,” she said. “When you hear the story of how a watch is made and how it ends up on your wrist, you realize the details of who spent months or even years creating that watch. I can’t help but think it’s a gift of love, respect and attachment. Watch your wrists.”
A version of this article first appeared in CNBC’s Inside Wealth newsletter by Robert Frank, a weekly guide for high-net-worth investors and consumers. sign up Receive future editions directly to your inbox.
Prestigious Swiss watch brand Audemars Piguet is breaking down the marketing barriers that separate men’s and women’s watches, as women are the biggest growth driver for luxury watch sales, the company’s CEO said.
