The high-end watchmaker Patek Philippe, whose products are in high demand, says it is little affected by the conflict in Ukraine and the confinements in China. The Geneva-based manufacturer will slightly increase its production in 2022.
After selling 66,000 pieces in 2021, the Geneva family business plans to increase its production from 1,000 to 2,000 pieces this year, President Thierry Stern told AWP, on the sidelines of the Watches and Wonders watch fair which is held in the city. city of Calvin until April 5.
“With our new factory, we still have some margin, but we do not want to make large volume increases despite the great demand. Around 1 to 2% per year is enough,” said the representative of the 4th generation at the helm of the company.
Patek Philippe, one of the largest Swiss watchmaking houses generating more than a billion francs in turnover, benefited in 2021 from the global boom in luxury after a sharp deterioration in the course of business caused by the pandemic of Covid-19 in 2020.
At the beginning of last year, the Genevan told AWP that he expected the sale of only 60,000 pieces.
Low Russian and Chinese impact
Without detailing the importance of the Russian market, under sanctions following the invasion of Ukraine, the official asserted that the watches which had been initially planned for this market were reallocated to other countries. “In addition, we will look to other diamond suppliers with whom we are already working to replace those from Russia.”
According to the manager, the house will raise the prices of certain models to deal in particular with the surge in the price of gold.
In the Middle Kingdom, the second largest export market for the Swiss timepiece industry, the closure of certain boutiques due to Covid-19 also led the company to reallocate the batch of watches from this country to other other regions. “It’s okay, because we have long waiting lists.”
Some watch enthusiasts have to wait more than five years to acquire the desired piece on the official market. “Together with our retailers, we want to try to improve the problem of these waiting lists somewhat,” proclaims the manager.
“We want to incentivize our retailers to sell less new products to their very important customers so that others can acquire them”, explains the president while noting that this was not an easy thing.
Acquiring certain Patek Philippe watches being very difficult at authorized retailers, there is an important secondary market around the products of the Geneva house.
In great demand, the Nautilus 5711, whose production was stopped by the house last year, can be sold for up to 300,000 francs while its initial price is around 40,000 francs, recalled Mr. Stern .
This article has been published automatically. Source: ats/awp