Patek Philippe, at Its Best

Luxury watchmaker Patek Philippe has posted a new record in terms of revenue. For 2012, it came to nearly one billion Swiss francs, or more than 800 million euros. The jewellery company sold its entire output—between 50,000 and 53,000 watches over the year.

A factory that’s firing on all cylinders

Patek Philippe has therefore achieved higher revenue than the previous year. Yet the company is not betting on productivity, but still on the quality of its products. Selling 100,000 pieces in a year will never be the brand’s objective. For Thierry Stern, president of the watch group, the point is to take the expectations of potential clients very seriously. Under no circumstances should any market be left aside. Focusing on emerging countries would be a serious mistake. Asians, for example—many of whose wealthy take an interest in watches and other ostentatious accessories—nevertheless made fewer purchases last year than in previous years. No potential customer is excluded from the brand’s commercial strategy. If you are interested in a more or less vintage model, you too can treat yourself to a beautiful Patek Philippe.

The customer is king

In the world of high-end goods, it is essential to take customers’ desires into account. Luxury watches are enjoying strong success among the newly wealthy. Like sports cars, they are valued for their refinement and elegance. They discreetly signal belonging to a certain social class. This need is typically male. Men instinctively want to show what they own. If they are not avid shoppers, they focus their spending on quality items. Wearing an Armani suit paired with a fine Seamaster Aqua Terra is synonymous with class and power. That is also why only high-end watches are gaining market share. Swatch Group, for example, generates the majority of its profits thanks to luxury watches.