Patek Philippe

 

This morning  I was told that Patek does not want to increase the production anymore. On the contrary ...

After all it still is a family business without  annoying shareholders who want more profit year after year (Richemont, LVMH, Swatch Group,...) , and  most of the time don't have the necessary long-term vision. Patek on the other hand doesn't want to expand and doesn't feel the need to fulfill the Chinese demand.

So with an increasing demand and a decission that they do not want to increase production .... they will become even more exclusive

RESPECT !

 

PP has increases production substantially, especially of the complicated pieces, in recent years.  You can see at the dealer-level this is the case.  I applaud that they're not increasing further but I'd love for them to release their production figures for the past five years.  I would bet the increase would surprise you.

And also: I am sure that we will see some former "hot watches", "big guns" or name it a 5204 an a like in the Ads windows soon.

Times are changing ...

And the Chinese market is and might be regulated in a way that we do not entirely know as we are not in the business, but believe me:

Patek would not hesitate to increase numbers if they could as much as they want to, if the Chinese would them do so.

No, no: that is a simple marketing stunt!

Also: I detest the "exclusivity" aspect that people mention so often.



Not impressed

Moritz


This message has been edited by COUNT DE MONET on 2012-03-24 09:31:38

for a so called exclusive brand. Puh-leeeease!

best,

Horo

Because they are independent, they can do anything ... even increase production on Monday if they choose to do so.

They do have shareholders ...  the owners themselves, and be assured they are motivated by money just as much as the conglomerates. And, they are no different, they too, want more profit each year. To ensure that requires good PR which promotes exclusivity and pride of ownership. I agree with the Count , this can be viewed in the way he described.

The comment regarding the Chinese demand, while impressive doesn't mean a lot. Demographics are somewhat meaningless given that most dealers are not just serving their own demographic area but reaching well outside. They, the Chinese market, will find a way to get what they want regardless of their demographic location.

The Chinese pay a wealth tax in China but my local AD has told me the Chinese are buying loads of Pateks and taking them home themselves thus avoiding the duty, does this mean the sales in China are low because of this?

I've already heard this explanation for the Patek boutique success in Paris, which is now integrated by the tour operators organizing the visit of Paris for chinese people.

 

The retailers prefer selling to them as they settle their purchases in cash.

Some ad give up to 20% off 

about the MONEY.

were spent on Patek watches in the past 10 yrs.

Except for the very high end rare pieces, the resale value on PP is very soft due to the high retail pricing and supply glut currently occurring. I think PP sees this as detrimental to the brand and is responding.

easy peasy...talk is cheap. realizing that market is too long on unsold Pateks more likely the case.

 AP same thing, this year, production and sale of Royal Oaks have been trimmed and inventory levels thinned. last year, the whole market flooded with ROOs, but this year, for the first time in recent memory, there is actually a lack of avails in the market!!

best,

Horo