How Hard to become an AD?

[LJubel328]

Just as the title says, does any one have any knowledge in to how difficult it is to obtain authorization from Patek?

This is solely out of curiosity.

[zahain]

Patek has been removing a lot of authorized retailers in the past few years. Id say it is very unlikely for there to be a brand new AD that pops up. If there are any new locations, they will be opened by already authorized retailers who are given the opportunity to open another location.

[2000-NJDEVILS]

I’ve been friends with Rudy at Wempe NYC for 27 years - A while back, he told me that you must be a long time Jewelry store ( many, many years in business) to even be considered by PP, AP or Rolex. And obviously, like becoming a member at Augusta National, you don’t ask for membership - they will ask you if you meet their criterion.....

[jon_jon]

I would say new Patek ADs have typically been a jewelry or watch store for many decades and have a solid reputation. They tend to have at least Rolex first before becoming a Patek AD. A couple of "newer" Patek ADs in the US that comes to mind include Tiny Jewel Box in Washington DC and Brown Jewelers in Atlanta.

[dardeca]

The Patek Boutique that opened up in 2018 in the Aria shops in Las Vegas was new to Patek. I forget the company that runs the boutique but the sales associate I spoke with shortly after they opened said this was their first Patek store. They also opened up a Rolex boutique next door to it.

[RoscoPico]

not to mention probably $1m investment. I heard that of Rolex anyway. half may have been the buildout to their specifications.
have pondered the idea of becoming and AD myself, but have completely given that up lol

[Calatrava r]

What I have heard is that Patek really does not want to add more ADs as they do not have the ability to provide sufficient inventory to additional ADs.

[Carlazzo]

In the past 8 months Patek has closed more than 30 ADs…. and if I'm not wrong, only one new opened in Spain, so I think it's really difficult to became a new AD !
I'm a little surprised that there are no ADs in India, since anyway there are also many rich people….
And only one AD in France (Paris).

[jon_jon]

Originally Posted by Carlazzo

In the past 8 months Patek has closed more than 30 ADs…. and if I'm not wrong, only one new opened in Spain, so I think it's really difficult to became a new AD !
I'm a little surprised that there are no ADs in India, since anyway there are also many rich people….
And only one AD in France (Paris).

I suspect India's situation is like China (only 2 Patek ADs in mainland China). The wealthy travel elsewhere to purchase their luxury goods - to Europe, NA or elsewhere in Asia.

As for France having only 1 AD, I have heard from several watch stores in Paris that it is a major political game they have to play there, worse than other major cities. It is too bad that Wempe Paris lost their Patek AD license.

[Carlazzo]

Thanks for your answer !

[LJubel328]

My intial thoughts were mentioned in many of the responses. So how do you guys see the brand's distribution channel evolving over time? They have certainly began a consolidation strategy, but what this their end goal?

I have an inclination that they plan to only keep their largest accounts in the largest metropolitan cities, and then open more boutiques. Making the brand even more exclusive and unobtainable.

[jon_jon]

Originally Posted by LJubel328

My intial thoughts were mentioned in many of the responses. So how do you guys see the brand's distribution channel evolving over time? They have certainly began a consolidation strategy, but what this their end goal?

I have an inclination that they plan to only keep their largest accounts in the largest metropolitan cities, and then open more boutiques. Making the brand even more exclusive and unobtainable.

That is AP's future. But Patek doesn't follow AP. Patek will not open any new Salons besides what they already have in Geneva, London and Paris.

If you watch any of Thierry Stern's interviews, he is firmly committed to the existing AD network and will strengthen them. Many of the ADs that they closed had problems and that is why they closed them. Some were independent ADs and some were branches within a larger network.

In the US and in Europe, there are still many independent jewelry stores that will continue to be Patek AD. They know their clients and can best serve the needs of their clients.