Interviews

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

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?

NO COMMENT
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.

Market Report

TAG Heuer introduces its new MERIDIIST II in the Middle East

The MERIDIIST II by TAG Heuer is a personal communication instrument of unprecedented service, design and performance. The hand-assembled MERIDIIST is composed of more than 400 mechanical components - many derived from legendary TAG Heuer chronographs. Crafted from luxury materials of the finest quality, it is the luxury handset device of premium class travel and business. The communication instrument of the international elite is now thinner, lighter and more powerful, with dual SIM slots for maximum connectivity and an exclusive 24/7 worldwide personal concierge service.

Market News

Abu Dhabi International Airport Passenger Traffic Increases by 18.5% in August 2013

More than 1.5 million passengers travelled through Abu Dhabi International Airport in August, marking an 18.5 per cent increase compared to the period in 2012. The details of Abu Dhabi International Airport’s August traffic report were released recently by Abu Dhabi Airports Company (Adac) in a press statement. Adac said that through August 2013 the 11,608 aircraft movements were a 15.5 per cent increase over the same period in 2012. Cargo traffic was also up with a 29.9 per cent increase and more than 60,235 tonnes of cargo moved. Abu Dhabi is currently increasing capacity in its existing facilities as well as building the new midfield terminal that is slated for completion in 2017.

World population to reach 9.7 billion by 2050

The world's population will rise to 9.7 billion in 2050 from the current level of 7.1 billion and India will overtake China as the world's most populous nation. A bi-annual report by the French Institute of Demographic Studies (Ined) projected there would be 10 to 11 billion people on the planet by the end of the century. The projections ran parallel to forecasts by the United Nations, the World Bank and other prominent national institutes. A UN study in June said the global population would swell to 9.6 billion in 2050 and the number of people aged 60 and above would catapult from 841 million now to two billion in 2050 and nearly three billion in 2100. The world's most populous nations are currently China with 1.3 billion people; followed by India (1.2 billion); the United States (316.2 million); Indonesia (248.5 million) and Brazil (195.5 million).

Retail sector in Dubai has room for expansion

According to experts at a Dubai Chamber of Commerce and Industry event, Retail demand, driven by tourists, will lead to more malls being built in the country. “The increasing number of tourists to Dubai will definitely create the need to have more shopping malls across the emirates,” said Mohi Al Din Bin Hendi, Chairman of BinHendi Enterprises. Highlighting the significance of this business segment as the main driver to the Dubai economy, the trade contribution to the Gross Domestic Product (GDP) is estimated at one third, retail sector contributes more than 10 per cent to the total GDP of Dubai. According to the Business Monitor International (BMI) study, the per capita retail sale in the UAE is forecasted to grow at 33 per cent during the period 2012-2016. The restaurants and coffee shops recorded strong growth at 22.84 per cent between 2009 to 2012 from 648 to 796. Dubai ranked second globally for retail representation, just behind the British capital London, according to the annual CBRE survey for the year 2012.

Vacheron Constantin Paris Boutique Robbed

As many as 15 robbers pulled off a spectacular holdup of one of Paris' finest jewelers Friday, smashing and grabbing their way to a million-dollar score. Two suspects are in custody, French police said, but the others remain at large and the 20 or so luxury watches the gang stole remains missing. Shortly before midday, two well-dressed men rang the doorbell of Vacheron Constantin boutique on the Rue de la Paix in the heart of Paris. When the sales clerk opened the front entrance, the men immediately blocked the door open, allowing a third man to rush in with a gun. He was closely followed by seven or eight masked and armed men. With axes and baseball bats, they smashed jewelry counters and windows to steal the goods. Early estimates put the value of the stolen watches at one million euros -- more than $1.3 million.

Company News

ROAMER celebrates 125 years of its foundation - Dubai Middle East

ROAMER celebrated the 125th anniversary of its founding with a series of celebratory events and activities in Dubai. The milestone was marked with a press conference at the newly opened Oberoi hotel, in the presence of the associate in the Middle East Swiss Watch Group, and was closely followed by a gala dinner bash at the Burj Khalifa. The black tie affair saw an attendance from the media – both local and international and the brands global VIP partners and clients.

Girard-Perregaux supports “Changing Watch” Event for We Are Family Foundation

Susan and David Rockefeller and Girard-Perregaux joined forces with Nile Rodgers for the “Changing Watch” event supporting We Are Family Foundation. Industry powerhouses from the worlds of watchmaking, fashion, music, sport, and philanthropy mingled together under Renaissance inspired high vaulted ceilings and gorgeous chandeliers. Michele Sofisti, CEO of Sowind (Girard-Perregaux and JEANRICHARD) also took to the stage, where he presented Susan and David and Nile Rodgers with a special Mission of Mermaids (MoM) timepiece in honor of their constant work and dedication to support We Are Family Foundation.

ISTANA opens new store in Burjuman Mall

ISTANA announces the opening of its new store in Burjuman Mall Level 1, Located at the centre of the new Burjuman, the ISTANA store has an area of 900 square feet. The store’s interior is highlighted by a sophisticated design – walls of golden-brown wood and cream silk panels, glass display cases atop wooden stands, and red lounge chairs – giving it a distinct feel of exclusivity and opulence.

Jaeger-LeCoultre celebrates its second year as sponsor of San Sebastián Film Festival

Jaeger-LeCoultre seals once again its bond with art and cinema sponsoring for the second consecutive year the International San Sebastián Film Festival, recognized as the most important film festival in Spain. The Film Festival Opening ceremony took place last month with the Gala Party attended by around 800 international guests including actor Miguel Ángel Muñoz, Actress Sarah Gadon attended her new movie premiere, Enemy, competing for the San Sebastian Film Festival’s Golden Shell award. During San Sebastián Film Festival, Jaeger-LeCoultre supports the Aladina foundation, a private non-profit organization formed in 2005 by Paco Arango to help children affected by serious diseases and their families.

Only Watch auction supported the research for Duchenne Muscular Dystrophy

The fifth edition of the biennial Only Watch auction which was held last month at the Hermitage Hotel in Monaco totaled an unprecedented EUR 5,066,000, with all proceeds benefitting research for Duchenne muscular dystrophy. The auction room was filled to capacity with watch collectors and philanthropists eager to bid on the outstanding collection of unique timepieces especially created for the exceptional charity auction as well as the extraordinary selection of 14 vintage champagne bottles from Lanson. Competitive bidding came from all corners of the globe including China, Belgium, Switzerland, Kazakhstan, the United States and Monaco.

Linde Werdelin presents new sports watch collection

Linde Werdelin opens the first pop-up store at Villaggio Mall in Doha, Qatar, to introduce its stylish and desirable timepiece collection last month. Linde Werdelin is distributed by Ali Bin Ali.

TAG Heuer pays tribute to ORACLE TEAM USA

TAG Heuer congratulates its Official Partner, ORACLE TEAM USA, for its thrilling come-from-behind victory in the winner-take-all final of the 34th America’s Cup recently. ORACLE TEAM USA won an astounding eight back-to-back races with Emirates Team New Zealand. The crew, led by helmsman Jimmy Spithill, at 34 the youngest skipper in America’s Cup history, refused to surrender and successfully fought off eight match points by aggressively taking early leads and pushing their foiling AC72 to its fastest recorded speeds in the regatta.

Maurice Lacroix partnership with Strategies International

Maurice Lacroix has chosen Strategies International as its public relations agency in the GCC, handling the company’s external communication efforts in the region. Strategies International will actively support and promote Maurice Lacroix in the UAE, KSA, Kuwait, Qatar, Bahrain and Oman, by communicating on the brand and its exclusive timepieces.

Donatella Versace to visit Dubai

The Italian fashion designer Donatella Versace will be visiting Dubai Mall for the Vogue Fashion Dubai Experience on October 10. Donatella Versace, who is Creative Director of Versace Group, will make three appearances, one in each of the Versace’s boutiques during the cocktail hour that will be hosted by the brand. She will then attend a fundraising dinner organized by the event on the evening of October 10th 2013.

Piaget launched the Limelight Gala collection

Piaget recently launched their iconic Limelight Gala collection in Kuwait in the presence of the brand’s Chairman Mr. Yves Piaget, Piaget’s partner in Kuwait, Mr. Ali Morad Behbehani, President, Behbehani Group and the first Ambassador for the Middle East, Lebanese singer Yara. The launch took place at the Jumeirah Messilah Beach Hotel and Sap, in an elegant setting that perfectly complemented the key elements of the stunning Limelight Gala collection.

Product Launch

Bremont announces the new Rose Gold Classic Watch

Bremont announced the launch of a new classically designed timepiece, the ALT1-C Rose Gold, Classic Chronograph. The case as Rose Gold Bremont Trip-Tick® construction with scratch resistant PVD treated case barrel, Case Back is Rose Gold with integrated flat crystal. The dial as Etched metal dial with off-white ground colours and treated steel hands. The Strap is embossed with leather Rose Gold pin buckle. The Movement in Rose Gold is of Calibre 13 1/4” BE-50AE automatic, 28 jewels, Glucydur balance, Anachron balance spring, Nivaflex 1 mainspring, 28,800bph, 42 hour power reserve.

Vertu launches the new Constellation Smartphone in the Middle East

Constellation is a modern Smartphone which has been designed and engineered to appeal equally to male and female customers. Constellation uses a 5.1 inch piece weighing more than 100 carats to cover the entire front of the phone and under which sits a 4.3 inch 720p high definition screen. The sapphire is resistant to scratching from anything other than diamond, ensuring that the screen remains virtually flawless throughout the life of the phone. Constellation offers user : Android™ 4.2 Jelly Bean, Qualcomm® Snapdragon™ dual core 1.7 GHz CPU, 32GB of internal memory, 13MP rear-facing camera with full HD video (1080p), a front-facing Skype™ compliant 1.3MP camera, Wi-Fi, Bluetooth and NFC.

Chronora presents the New Tudor Fastrider Black Shield

When high-tech ceramic meets the world of Tudor, the result is, naturally, quite out of the ordinary. The Strap of each Black Shield comes with a rubber Strap & Leather Strap or Beige Alcantra Strap & Rubber Strap. The case is produced as a single scratch –proof Monobloc case using nothing but high-tech injected black ceramic. The Black Shield Volcanic power has been exclusively unleashed at Chronora Boutique in Down Town Beirut.

Rado introduces HyperChrome Diamonds to give you extra shine this festive season

Rado presents the new diamond encrusted watches. These sparkling models are available with quartz movements and diamonds on the bezel or with automatic movements with diamonds on the bezel and side inserts. Each model uses Rado’s signature material of high-tech ceramic and is interpreted in the timeless monochrome of black and white. With a total of up to 181 diamonds on a single watch. A one piece or "monobloc" case forms the entire structure of the timepiece. HyperChrome Diamonds white/black polished high-tech ceramic case back with sapphire crystal curved sapphire crystal with anti-reflective coating on both sides stainless steel. The dial - white/black is with rhodium coloured applied indexes with white Super- LumiNova®.

RAYMOND WEIL introduces Lady maestro Phase de Lune

The Lady maestro Phase de Lune now completes RAYMOND WEIL’s principal collection and displays the passage of time by means of its night star. Equipped with a 36mm polished steel case, set with 68 diamonds, the Lady maestro Phase de Lune exhibits blue hours on a white mother-of-pearl dial. In its center, a sunray guilloché decor makes room for the moon phase at 6 o’clock. The hours, minutes and seconds hands are also blue. A fourth hand indicates the date, tracing a lunar arc. Finally the varnished, royal blue, alligator strap matches the stone in the crown at 3 o’clock. This timepiece also enjoys the Brand’s patented system of pushers integrated in the case. These adjust the date at 4 o’clock and the moon’s position at 8 o’clock.

Visconti introduces new Saint Basil's Cathedral

Visconti announces the birth of its new creation dedicated to one of the most beautiful and important monuments - The Saint Basil Cathedral symbol of Moscow. The Pen has been shaped with a round body and octagonal cap inspired from the shapes of the towers. Saint Basil is represented with a fine engraved3 Dimensional cut out art, encrusted directly into the celluloid in either AG 925 Vermeil or rose gold. Visconti developed also a solid wood handmade see through bow finely cut by hand and covered with two layers of real golden leaf.

Exhibitions & Events

35th MidEast Watch & Jewellery Show opened at Expo Centre Sharjah

The MidEast Watch & Jewellery Show opened at Expo Centre Sharjah from 1st of October until 5th of October with exhibitors taking part in the show expecting better visitor turnout and robust sales during the five-day show. A series of positive factors such as low gold prices, upcoming festive season and rising consumer confidence has set a scorching pace for sales at the region’s most anticipated jewellery fair that got under way in Sharjah. The show was opened by H.E. Sheikh Khalid Bin Abdullah Bin Sultan Al Qassimi, Chairman of Sharjah Sea Ports and Customs. Some of the premium creations that are being displayed at the Italian Art Pavilion include ‘Aisan Al Arab’, the design of which is based on Arabian horses, the ‘Rawda’ inspired by the Arab garden, and the complex ‘Baab Al Hajj’ jewel that denotes the pilgrimage to Makkah.

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