Audemars Piguet - Philippe Merk navigates the downturn
WORLDTEMPUS - January 23, 2010
Philippe Merk, who took over as president of the Audemars Piguet brand one year ago, has navigated the brand through perhaps the worst year for the watch industry in a decade. Merk sees the economic collapse, however, as a "best of times, worst of times" scenario. "There was a good side to the economic downturn," he says. "An adjustment in the market was necessary. The overeating was obvious. There were too many products, too many brands. And now, welcome to reality." One of the problems that had become endemic in the watch industry, was, according to Merk, " a lack of rationality in the production cycle. People, since they knew they could not get 10 watches, would order 20, then 30. Then the demand stopped abruptly."
Merk says the first three or four months of 2009 saw retail watch sales cut in two by the recession, but in the last three months, the market has started to come back - but only to 2006 levels. How did Audemars Piguet weather the storm? "We maintained and strengthened our iconic selection," he says. Several new offerings in the Royal Oak collection were introduced at the Salon International de la Haute Horlogerie this week, including the Grand Prix collection. "These are iconic watches in an established brand," says Merk. "We will not fight against the market." The brand has also reduced its entry level price to approximately US$16,000 (for the small-sized Royal Oak Offshore in steel), down from the previous entry level price of US$20,000.
He adds, however, "there is potential in all of Audemars Piguet's collections. Each one has a clear identity." In order to help build its profile in the U.S. Audemars Piguet recently expanded its New York City boutique, moving into new premises on 57th Street.