Story Highlight
– Patek Philippe denies becoming a retailer like Rolex.
– Acquired Beyer to open fourth global Patek Salon.
– £83 million sales generated from London Salon in 2023.
– Production remains steady; focus on craftsmanship and pricing.
– Global uncertainties are managed; company maintains reserves.
Full Story
Patek Philippe’s president, Thierry Stern, has sought to reassure authorised dealers amidst concerns about potential overreach into retail markets, particularly following the brand’s recent acquisition of jeweller Beyer in Zurich. Speaking to the Swiss newspaper NZZ during the Watches and Wonders event, Stern clarified that the company is not emulating Rolex’s strategy with its purchase of Bucherer.
“Our focus remains on watchmaking. At the same time, I have always told our retailers that we reserve the right to seize opportunities,” he stated.
The acquisition of Beyer, a historic name in Swiss jewellery, has brought speculation, especially as Patek Philippe plans to transform Beyer’s multibrand showroom into a dedicated boutique for its own products. This location will be the fourth Patek Philippe Salon globally, adding to existing stores in London, Geneva, and Paris.
While Stern maintains that the company’s primary commitment is to watchmaking, the move raises questions for authorised dealers who may need to adapt if a Patek Philippe Salon emerges in their region. In Zurich, for instance, the competitor Gübelin stocks Patek Philippe alongside other prestigious brands including Bulgari and Chanel.
When asked about the future of Patek Philippe in relation to Beyer, Stern responded, “Gübelin is directly opposite our future salon. It hardly makes sense in such a small space”.
Patek Philippe has significant experience in retail, having first opened a Salon on London’s Bond Street in 1997, which reported sales of £83 million in the 2023-2024 financial year.
Meanwhile, the closure of Wempe, a retailer near the London Salon, highlights the competitive challenges in the luxury watch market, particularly as it lost both Patek Philippe and Rolex brands.
In the same interview, Stern addressed the impact of global uncertainties such as American tariffs and the ongoing conflict in Iran. He commented, “Problems have always existed. First it was the oil crisis, then the quartz crisis, then Covid. And now it’s geopolitical issues. You have to learn to deal with them.”
He emphasised the brand’s resiliency, noting, “Our advantage is our manageable size: We produce around 75,000 watches per year. And we have reserves in case of emergency. That’s why I’m no more worried than I was last year.”
Stern revealed that while production has increased from 65,000 to 75,000 watches recently, the brand’s strategy is not focused on amplifying output. Instead, he indicated a commitment to enhancing the complexities, craftsmanship, and artistic finesse of their watches while keeping prices competitive.
“We couldn’t grow significantly right now, even if we wanted to,” he asserted. “We want to remain independent and maintain a strong collection. With around 150 models, production is inherently complex. Therefore, we don’t primarily focus on production volume, but rather on the average price of our watches and keeping costs under control,” he concluded.
