Comments:
Dear Marc,thanks a lot for this post.
It raises a lot of questions and concerns that we all have for this brand.
I agree with you on a few crucial mistakes done historically and lately by GP :
1. they do not control their distribution : way too many brandnew watches appear on the secondary market with huge discounts.
This kills customer confidence and is a deadly sin for any luxury goods
2. they raised prices way too aggressively over the last 3-4 years up to a point where they priced themselves out of the market for a considerable amount of potential end customers
3. they are badly missing new movement developments to replace the (excellent but too small) 33... movement family ...for both the 3-hands and chronograph
4. their current product portfolio is far from being exciting :
- too heavily focused on the Laureato
- get rid of the Laureato Absolute line : is anyone buying these ?
- the Bridges collection is focused on 44/45 mm watches : this is too big for the current market trends
- the 1966 line looks and feels outdated : why not come up with something new based on the 1800 movement ?
- the Vintage 1945 : nothing new since the Kering days
So, quo vadis for the brand ?
I hope not but if there will not be a change pretty soon it would be better to let the brand go for yet another ownership change (I think it could fit the LVMH portfolio pretty well 
)
)PS : quite a few of these remarks do apply also for UN !!
Thank you bro. It’s good to have the more
Seasoned collectors that understand.
On point 2. The MSRP was roasted deliberately. GP has come to rely a lot on sacrifice watches and bundling. Are you aware of these terms …? Maybe a term used in asia more.
Customer goes to and AD and wants a patek.
He is asked to buy GPs first. How many depends on what patek. He pays full MSRP for the GPs.
He gets is patek at MSRP.
Walks out of the store and sells his GPs one shot at a very low price. 50% off MSRP.
He works out the math and applies his losses from GP to his gains with his patek of MSRP vs market. He may even flip his patek. There are guys that do this for a living.
So the ADs get margin off the patek AND the GPs.
GP too has just sold a watch.
So the higher the MSRP, the more money GP and said ADs gets. Why do you think so many gold models are being released in the last few months … extra high MSRP.
Secondary market get flush full of brand new GPs and 50% off MSRP. Artificially introduced this way. Not market forces. Naturally everyone says WTF. Many buyers initially think of get a GP get put off by this. And an older guy with a Ferrari may happy to pay full MSRP for a laureato. But he won’t like it if the valet to park his car also has the same one, except at 50% cheaper.
I spend a lot of time on behavioural economics and as you said, this is an total taboo for a luxury brand to do.
And not easy to undo.
Patrick has said they are not going to sell GP. He says a lot of things.
He used to work at Tag and Apple Watch. Some of his key team also from Tag.
I hope they remember that GP is not Tag. And we don’t want to see them at airport duty free shops.
🤝
On point 2. The MSRP was roasted deliberately. GP has come to rely a lot on sacrifice watches and bundling. Are you aware of these terms …? Maybe a term used in asia more.
Customer goes to and AD and wants a patek.
He is asked to buy GPs first. How many depends on what patek. He pays full MSRP for the GPs.
He gets is patek at MSRP.
Walks out of the store and sells his GPs one shot at a very low price. 50% off MSRP.
He works out the math and applies his losses from GP to his gains with his patek of MSRP vs market. He may even flip his patek. There are guys that do this for a living.
So the ADs get margin off the patek AND the GPs.
GP too has just sold a watch.
So the higher the MSRP, the more money GP and said ADs gets. Why do you think so many gold models are being released in the last few months … extra high MSRP.
Secondary market get flush full of brand new GPs and 50% off MSRP. Artificially introduced this way. Not market forces. Naturally everyone says WTF. Many buyers initially think of get a GP get put off by this. And an older guy with a Ferrari may happy to pay full MSRP for a laureato. But he won’t like it if the valet to park his car also has the same one, except at 50% cheaper.
I spend a lot of time on behavioural economics and as you said, this is an total taboo for a luxury brand to do.
And not easy to undo.
Patrick has said they are not going to sell GP. He says a lot of things.
He used to work at Tag and Apple Watch. Some of his key team also from Tag.
I hope they remember that GP is not Tag. And we don’t want to see them at airport duty free shops.
🤝
Now these remarks are spot on. Very well said, jlux.
Sadly, the comments do apply to UN, a brand I used to love. But not anymore. On the UN side, we can also add piss poor design language over the past 10 years +/-. Nobody wants massive Xs dominating their dial, but they are too stubborn to see it.
In my humble opinion, both of these brands should cease operations. Both are disgraces to who they used to be. I can't fathom how they stay afloat. Probably used as loss companies to offset others in the KG.
In my humble opinion, both of these brands should cease operations. Both are disgraces to who they used to be. I can't fathom how they stay afloat. Probably used as loss companies to offset others in the KG.
I've been following this, reading the comments. UN and GP were once very respectable brands that have lost their way. There are numerous reasons but to me the big one is losing
ownership that cared and had a clue. Passion and tradition matter. Another brand I feel similar about is HEUER. When TAG bought HEUER a great brand died. Like Rolex they did excel at advertising.. fooling the foolish! There's a new plan for the brand every few years and It seems that every next move they make is a bad one. I did like that their iconic sports models still just said HEUR on the dial but now a cal 11 Monaco just says "Monaco" on the dial? WTF? Wrong, drop the TAG not the HEUER! Embrace your excellent heritage if you're lucky enough to have that and it's special. Besides they are now owned by LVMH. Crazy. No business is in business to go out of business so profit matters but when the marketing department gains too much control over the creative passionate side down they go. I've owned some nice older GPs and have 4 nice UNs from their awesome modern period that ended when Mr Schneider died. Love my two modern cal 11 Monaco pieces that I have real connections to their HEUER heritage but I have very little interest in the new offerings from all three brands due to so much mismanagement.