Interview with Mr. François-Henry Bennahmias, CEO of Audemars Piguet

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06-Oct-2013

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What is it about the Audemars Piguet brand legacy that kept the nourishing of its success?

It is a combination of factors: an incredibly rich and long history, high quality timepieces, craftsmanship but also the fact that the brand has remained true to its origins and values over the years. The brand’s independence is at the core of its decision making process and it is a tremendous advantage for a company. I’veal ways admired that.

The SIHH will take place in few weeks (this interview will be published in AWJ- Oct-Nov 2013 issue); can we please have a sneak peek on Audemars Piguet “star” novelties? Or at least the general directions of 2014 at AP?

Let’s see if you can break this code: «the bride will be complicated ». I can’t say any more than that.

What are the foreseen trends and directions in the watch industry in 2014?

2014 is a transition year for the industry and even more so for Audemars Piguet, we don’t forecast any major changes at this stage.

There has been a lot of news of Audemars Piguet tendency to give up the use of carbon fiber cases in your watches, how true is that?

These were just rumours that were not founded on any concrete information. We were the first brand to start introducing the use of forged carbon in watchmaking years ago: it is a lightweight material with a modern and technical look that fits the spirit of our Royal Oak Offshore collection, and although we’re continuously working on the development of new materials we have no current plans of giving up forged carbon completely.

What is your vision in Audemars Piguet towards using new materials or innovating new alloys to use in your watches?

Audemars Piguet has always been a pioneer in the search for new alloys, we are determined to keep driving innovation.

Audemars Piguet started reducing the number of references, why is that and how does this step support your future strategy?Can you also update us on your pricing strategy since the beginning of 2013?

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The number of references will keep going down over the next year or so, starting from above 200 references in 2012 down to around 100 in 2014. We are structuring the product offer and focusing more on our core collections in order to better supply retailers with the requested models and quantities.

What strategy do you implement regarding the limited edition releases? And how are you minimizing the delivery periods of the new Novelties?

Our objective is to deliver our Limited Editions as quickly as possible after they’ve been launched. Wasting time implies losing sales: clients don’t want to wait so momentum is everything and a better coordination between launches and deliveries is key in order to minimize delivery times.

What would be your priorities for 2014? In terms of Product line, or movements or restructuring?

In 2013 we’ve been focusing on our unique Savoir-Faire in complicated watches and on the launch of the new Audemars Piguet Woman campaign while improving our customer experience at all touch-points.
In 2014 we will be consolidating all this. Women are one of the brand’s main focuses and the idea is to grow the business so that ladies watches account for 35% of sales in volume instead of the current 25%.
We will also be growing our production facilities with the opening of our new case and bracelet factory in Geneva. The manufacture manages to make nearly everything in-house and we keep working on developing our own resources and standards via the integration of all watchmaking metiers.
Finally we will be increasing the number of our boutiques worldwide with new openings in Hong Kong, China, Italy, Greece, Turkey, Franceand the United States.

How is Audemars Piguet coping with the uprising completion in the market? And what are the real challenges for your brand in the coming few years?

Fewer, bigger, better: a collection centered on core models, a stronger and deeper relationship with our best retail partners, and a more focused marketing strategy. The real challenge for us is to get to know our end consumer better. The watch industry is probably the last one where most players don’t actually know their final customers and that’s where our own boutiques will play a major role.

What is Audemars Piguet’s geographical strength? And what is your biggest market today? Where does the Middle Eastern market stand in that line?

Our strength lies in the fact that our markets are geographically well balanced. Asia and the Americas continue to develop with us, the Milddle East is showing a strong growth - +30% in 2013 YTD - while Europe remains stable with Switzerland boasting outstanding results and entering our top 5 of best countries for the first time.This is wonderful news since it is important for a brand to have a strong presence in its domestic market.

How do you evaluate the Middle East markets and the potentials it offers?

We are far from where we could be even though we have a strong presence in the Middle East already. It is a market that loves Audemars Piguet and we’re going to keep the momentum going.

How do you read the reliance on the Chinese huge market? What are the cons and pros of this policy? Do you see any alternatives?

Chinese clients consume watches in high volumes but they buy more abroad than they do inland. Finding the key to the Chinese market is not an easy job, it is a long term task. We definitely have to focus on this market for the future but our brand is geographically balanced and we’re not forgetting that there are many other markets with potential.

What is your favorite Audemars Piguet watch?

Difficult question! For me, a watch reflects the state of mind and the emotions of the wearer. I could change watch depending on how I feel so I don’t think I have an absolute favorite. Right now I am wearing the Royal Oak Extra Thin Tourbillon in steel: the purity of its line and the beauty of the tourbillon mechanism inside make it simple yet complex – the perfect combination!

How do you connect the AP brand with the evolution of the social media? How do maintain your connection with the AP collectors while appealing to new customers?

We’ve got to live with our time. Today, people are used to doing most things online: socializing of course, but they’re also buying online. The nature of the retail business is evolving and for our brand it means a deeper involvement in the digital world at large, social media included.
However, focusing on quality is what allows us to keep building our connection with Audemars Piguet collectors while appealing to new customers.
Let’s talk about Instagram to give you a concrete example: the idea behind our rather unique strategy is for this platform to only focus on our Savoir Faire (a very important element for both existing collectors and new customers) instead of just posting a wider selection of more random photos. It got very positive results. If we look at the engagement – the degree of interaction with our audience – we’ve reached the following numbers: 27 visual son Savoir Faire posted since June 2013 and a current total of11, 700 followers which gives us an engagement rate of 433.33. To give you a point of comparison, the average engagement rate experienced in the industry is closer to 20!

Quality is the key.

 

 

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