GENEVA, April 13 — Patek Philippe’s chief says he’s not anxious in regards to the prospects for top-end timepieces, regardless of Swiss watch exports slowing general after three years of spectacular progress.
Thierry Stern advised eNM he was “not worried in regards to the excessive finish” of the market throughout the Geneva watch truthful, which brings collectively 54 main manufacturers at Swiss watchmaking’s landmark annual occasion.
For lower- and mid-range manufacturers, “I believe it should be more durable”, particularly as there’s “extra competitors” at these ranges, Stern mentioned on the Watches and Wonders salon, which opened on Tuesday and runs till Monday.
“But for Patek Philippe, I’m not worried,” mentioned the president of the model which ranks among the many most prestigious in Swiss watchmaking.
“Right now, I can’t consider a market in hassle — not on the prime finish, in any case,” Stern mentioned.
The United States for instance, which accounts for 38 per cent of Patek Philippe gross sales, stays a “collectors’ market” for the model, he mentioned.
“Europe is doing very properly too,” he added, and if “Asia was a bit more durable for some time”, then “as we speak it’s again up once more”.
Known for its advanced timepieces, Patek Philippe is presenting a brand new model of its World Time mannequin on the salon. It is available in white gold with an opaline blue-grey dial, and a price ticket of 65,000 Swiss francs (RM340,584).
This {photograph} taken on April 9, 2024, reveals a watch displayed on the stand of Swiss luxurious watch and clock producer Patek Philippe throughout the opening day of the ‘Watches and Wonders Geneva’ luxurious watch truthful, in Geneva. — eNM pic
‘A bit calmer’
Swiss watchmaking had a brutal shock in 2020 because the Covid-19 pandemic hammered gross sales.
But the sector rapidly rebounded, and broke data three years in a row, with exports reaching 26.7 billion Swiss francs in 2023.
However, exports noticed their first vital year-on-year decline in February — down 3.8 per cent in contrast with February 2023.
That mentioned, not all manufacturers are feeling the consequences.
Globally, throughout the posh items sector, the highest two per cent of consumers account for about 40 per cent of gross sales, in accordance with the US administration consultants Bain & Company.
The most high-end manufacturers, like Patek Philippe, depend on a really rich clientele that’s not notably uncovered to the vagaries of the economic system — that means these manufacturers are properly positioned to resist slower phases throughout the business.
For Stern, the fourth technology of his household on the helm of Patek Philippe, the latest slowdown is maybe an indication of “a return to actuality” after three years through which watch sector gross sales “exploded”.
“We can’t say it’s a disaster,” it’s simply “a bit calmer”, he mentioned.
This yr, he intends to maintain manufacturing on the similar “document” stage of 72,000 timepieces reached final yr.
Established in 1839 and owned by the Stern household since 1932, the personal firm by no means reveals its turnover.
According to an estimate by the US financial institution Morgan Stanley and the consulting agency LuxeConsult, the corporate’s gross sales reached round 2.05 billion Swiss francs final yr, up 14 per cent on the earlier yr. — ETX Studio
