Story Highlight
– François-Henry Bennahmias joins Hublot as a consultant.
– Hublot’s turnover fell 38% from 2022 to 2023.
– Annual watch output declined from 54,000 to 32,000.
– Demand for oversized watches and key markets has dropped.
– Strategies needed to improve secondary market prices and control.
Full Story
The recent appointment of François-Henry Bennahmias, former CEO of Audemars Piguet, as a consultant for Hublot has sparked intense discussion within the Swiss watchmaking community. This change comes during a challenging period for the LVMH-owned brand, which, according to estimates from Morgan Stanley and LuxeConsult, has experienced a significant decline in global turnover, plunging by 38% from CHF 744 million in 2022 to CHF 460 million last year.
Despite maintaining an average retail price of approximately CHF 20,000 for its timepieces, Hublot’s annual production has diminished drastically from 54,000 units to just 32,000 over the past three years. This decline reflects broader struggles within the luxury watch sector, which was riding high in 2022 but has since faced numerous obstacles, including waning demand for oversized watches and market downturns in crucial regions such as Russia and China.
The luxury watchmaker now finds itself grappling with oversupply in a market that may not be ready to absorb its current pricing strategies. While the Classic Fusion collection has shown promise, with secondary market prices reportedly rising by 9% in the past year, the overall performance across Hublot’s range indicates a modest increase of only 2.6%. Recent reports from WatchCharts reveal a 0.8% fall in Hublot’s secondary market prices for the third quarter, marking it as one of only a few brands to experience such a downturn.
Bennahmias brings a wealth of expertise to Hublot, having previously revitalised Audemars Piguet’s fortunes by deftly controlling the supply of its coveted Royal Oak collection. This strategy led to a surge in secondary market prices, which saw Royal Oak models reach upwards of 44% above retail shortly after his departure in April 2024. One of his pivotal moves at Audemars Piguet was the discontinuation of the Royal Oak Jumbo Extra Thin ref. 15202ST, which ignited a surge in demand, causing prices to spike dramatically.
To rejuvenate Hublot, experts suggest that Bennahmias must apply similar principles, focusing on creating scarcity and desirability within its product lineup. The need for a flagship watch that inspires waiting lists could help drive secondary market prices up, making brand ownership more attractive. Establishing tighter control over retail distribution by increasing brand-owned boutiques and reducing reliance on wholesale channels could further bolster Hublot’s market presence.
Moreover, the brand should consider limiting new product launches to streamline consumer choices, preventing potential buyers from hesitating in anticipation of future releases. A strategic approach might involve discontinuing existing models at a quicker pace than introducing new ones, allowing for the development of a ‘hero’ timepiece that becomes synonymous with the brand.
Looking ahead, Hublot has set its sights on its 50th anniversary in 2030, aiming to create a significant impact in the market during this milestone year. The subsequent years will be critical for positioning the brand, focusing on a refined selection of Classic Fusion models that appeal to modern consumers while maintaining strict control over supply to generate noticeable demand among dealers and collectors alike.
