New Interview with CEO Resta: No LVMH Acquisition; focus on Prestige not Growth

[In-N-Out]

Link to article:

https://www.businessoffashion.com/ar...ampaign=luxury

Link to a paywall bypass:

https://www.removepaywall.com/



Highlights from article:

Potential Acquisition Rumors
Some have wondered whether the logic of Resta’s appointment was to bring group experience to a family-owned company readying for sale. But she refutes this. “I know this was the perception,” she says. “But independence is absolutely the future of the company and the desire of the board and the shareholders.”

Production Increase Rumors
Audemars Piguet’s current annual production hovers around 50,000 watches, a figure that Bennahmias had said previously could expand to as much as 70,000 once the new manufacturing facility is fully operational. Resta is reluctant to talk numbers, though. “I don’t want to push quantity,” she says. “Numbers are misleading, because producing a watch with hours, minutes and seconds is very different to a perpetual calendar.”

Focus on Ladies?
“We see interest in [more expensive] complications rising more than in the simplest pieces,” Resta says. Interest in women’s watches is on the up, too. Resta says around 25 percent of Audemars Piguet’s direct clients are women, with a target of 30 percent in two years. While Resta is one of only two female chief executives among Swiss watch pure-players (alongside Catherine Rénier at Jaeger-LeCoultre), she says she’s less interested in creating watches for women than in making sure the brand is offering the right products to connect with anyone.

CODE 11.59 and New Lines
One thing she’s clear on, though: “We don’t want this company to be a Royal Oak company,” she says firmly. Diversification will be a priority, as in her predecessor’s final years. She says there’s “a lot of pull on Code 11.59,″ a collection introduced five years ago that she says now accounts for 11 percent of the business, and that when it comes to launching new lines “there is definitely fertile ground for more.”

More Collaborations?
And what about those high-profile ambassadors, spanning hip-hop, actors, and golf?

“I will definitely not choose [collaborations] brd on my passions, or my personal interests,” she said, scotching the idea that simply because she’s a tennis fan that Audemars Piguet would sponsor pickleball, one of the world’s fastest growing racquet sports.

But she commits to investing in cultural relevance via music, art and sport, and praises the product and marketing strategy she’s inherited. “The magic of what has been done so far is that Audemars Piguet really spoke to the people of society of the moment without choosing an elite route,” she says.

Focus is on Exclusivity, not Growth
Resta seems unfazed by the legacy she must now pick up, insisting she has a clear brief for the company’s next steps. “As I told you,” she says. “Growth is not our number one priority. Our number one priority is the reputation of the brand and the quality and innovation of the timepieces we make.”

[Akacoke]

Code is not gonna be the aquanaut of patek for AP. If AP doesn't wanna become a royal oak company they will need to give us something better than code. There is nothing wrong of AP being a royal oak company.

[WatchEater666]

AP has a great back catalog that should be raided way way more aggressively instead of pushing the code.

[John Doyle]

AP is a one watch company as demonstrated in the past years and continuously no matter what the new CEO coming from procter and gamble

[Audevache]

Originally Posted by Akacoke

Code is not gonna be the aquanaut of patek for AP. If AP doesn't wanna become a royal oak company they will need to give us something better than code. There is nothing wrong of AP being a royal oak company.

The Aquanaut was launched in 1997. Do you remember how many years it took for it to become recognised on its own and not just the cheap (by Patek standards) entry watch you gave your nephew for his graduation? I still remember being offered Aquanauts at a significant discount from the AD. The Code is only just celebrating it's fifth anniversary, and now that they fixed the dials the watch will have a great future. I'd never trade my Code chrono for an Aquanaut...

To the OP; thank you for sharing, nice article, and overall a positive outlook for AP. Is that a Jumbo tourbillon she is wearing in the picture by the way?

[ts3]

Originally Posted by Akacoke

Code is not gonna be the aquanaut of patek for AP. If AP doesn't wanna become a royal oak company they will need to give us something better than code. There is nothing wrong of AP being a royal oak company.

Originally Posted by WatchEater666

AP has a great back catalog that should be raided way way more aggressively instead of pushing the code.

Agree with both of the above.

Sounds like the new CEO feels the Code being 11% of the business after 5 years is a success. I am surprised she even disclosed that number. How many of those were sold to people genuinely wanting a Code vs people primarily hoping to accelerate the "journey" (man, I hate that word)?

[AperolSpritz]

"Growth is not our number one priority. Our number one priority is the reputation of the brand and the quality and innovation of the timepieces we make."

That's reassuring, hopefuly she can fix some of the damage done by FHB

[PP&AP]

I hope they maintain golf sponsorships without FHB. I don’t think they’ve replaced anyone that left for LIV.

[John Doyle]

Originally Posted by AperolSpritz

"Growth is not our number one priority. Our number one priority is the reputation of the brand and the quality and innovation of the timepieces we make."

That's reassuring, hopefuly she can fix some of the damage done by FHB

Yep agreed, let's start with putting full in-house movement in AP watches as opposed to third parties', use reno et papi to develop calibers for time and date only watches for instance as opposed to only working on concept pieces and outsourcing to richard mille and others, releasing an actually OK looking new line of watches (not asking for good looking - really just OK looking) etc

[Tomas Eriksson]

direct-to-consumer sales now account for more than 90 percent of the company’s turnover

More than 90%, very impressive how quickly they eliminated any dependencies towards their ADs.

[Palex]

Thanks for sharing

[NYG1121]

They need some proper dress watches in their lineup like they used to have. Would help round out their products and potentially reach a different clientele. The CODE isn't a dress watch.

[johnsonsxusfrt]

Good to hear they aren't pursuing an acquisition by LVMH, that would end the brand as we know it.

[VogelPhoenix]

Most important here is clearly the desire to remain independent. Good that that hasn't changed. The 11% number for the Code is also interesting.

[Gandor]

“I will definitely not choose [collaborations] brd on my passions, or my personal interests,”

sick burn

[codecow]

I’d buy a code today if I could walk into the AD and get a Star Wheel. Instead I get laughed out of the store.

[gretch6364]

Originally Posted by John Doyle

Yep agreed, let's start with putting full in-house movement in AP watches as opposed to third parties', use reno et papi to develop calibers for time and date only watches for instance as opposed to only working on concept pieces and outsourcing to richard mille and others, releasing an actually OK looking new line of watches (not asking for good looking - really just OK looking) etc

What? Where have you been the last five years?


Anyhow, great interview and all things that fans and collectors of the brand want to hear.

Every Rolex is the same round case with a different bezel and dial.

[VogelPhoenix]

Originally Posted by Gandor

“I will definitely not choose [collaborations] brd on my passions, or my personal interests,”

sick burn

Or a bit of a cheap shot... So less online rage about Marvel and Cactus Jack style collabs, which may be a good thing. I hope they don't play it too safe - playing it safe is not what AP should be about.

[Slackergirl]

Really like this quote from the article:
Genderising a watch is starting to become irrelevant,” she says. “The big change I’m trying to bring is to look at the clientele based on the driver of purchase and their behaviours when they wear a watch. That way, you can offer them a watch that fits their lifestyle.”

Gotta admit as a female I do like this sentiment.

Very curious what the new project she is "fast tracking for next year".

Interesting read thanks for posting the article.

[mickyd329]

She's saying all the right things. Keeping AP private, not pushing quantity ,and more diversity in the collection other than RO. I hope they move away from some of the recent collabs and go more in the direction of this Mayer collab.

[rappvctrinity]

like this direction. I do not feel the collabs were too much. keep the same amount or maybe slightly less. John Mayer is too obvious a choice though for collab. The watch looks incredible but while i consider him one of the greatest guitar players alive currently he just doesn't have much cultural relevance right now.

I like the Cactis Jack and ALYX collabs

[gretch6364]

Originally Posted by rappvctrinity

like this direction. I do not feel the collabs were too much. keep the same amount or maybe slightly less. John Mayer is too obvious a choice though for collab. The watch looks incredible but while i consider him one of the greatest guitar players alive currently he just doesn't have much cultural relevance right now.

I like the Cactis Jack and ALYX collabs

They are only making 200 and Mayer has relevance to other watch collectors. I don’t think this particular collaboration was done to attract new people to the brand, which the other two you mentioned feel like they were.

This one is for us.

[huncho]

Originally Posted by gretch6364

They are only making 200 and Mayer has relevance to other watch collectors. I don’t think this particular collaboration was done to attract new people to the brand, which the other two you mentioned feel like they were.

This one is for us.

i have nothing against JM and think he's a genuine watch enthusiast and has good taste but this isn't exactly for "us" considering how limited and expensive it will be to get. maybe one person on here will end up with one and the majority of collectors that will be wearing it are the super rich collectors like Wahlberg, Kevin Hart, LeBron, Erling Haaland, etc, and i genuinely don't think they listen to or really even follow JM like that lol. even if they're true watch enthusiasts imo they'll be getting it for the exclusivity more than anything

[In-N-Out]

Originally Posted by huncho

i have nothing against JM and think he's a genuine watch enthusiast and has good taste but this isn't exactly for "us" considering how limited and expensive it will be to get. maybe one person on here will end up with one and the majority of collectors that will be wearing it are the super rich collectors like Wahlberg, Kevin Hart, LeBron, Erling Haaland, etc, and i genuinely don't think they listen to or really even follow JM like that lol. even if they're true watch enthusiasts imo they'll be getting it for the exclusivity more than anything

Might not be for “us” in terms of you or me, but there’s plenty of guys on here who can afford it and will likely get the call if they request one lol. Making things exclusive and impossible for “us” to get is part of the reason why most of “us” want AP’s in the first place….let’s all be honest. We will not be lining up to buy Jumbos if it was readily available. Because we all would have 7 years ago if that was the case (not me since I didn’t have money back then)

AP has been doing collabs for a long time, and I think this is way better than most. And certainly better than the Travis Scott trash

[AEV]

Code is at the 5th year after launch. They started with 2.000 pieces and the ambition to reach 20% of more of total production.
So 11% is not bad, it takes time for a collection to get established.
I think these latest 2024 releases and the smaller sizes of 38mm will do well.