Where do we see Richard Mille next in 10yrs?

[SpunkyQ8]

So since I was interested in the brand I honestly had doubts in it back in 2012. Year by year the brand kept on booming. Doubling it's sales easily.

Hence, there are many rumors that is Mr.Mille wanting to sell stakes of his company along side with his partner, since they are in "their 60's and want to guarantee the future of their baby"

Do you think production will double, maybe triple and a scenario of Hublot/Frackmiller will hit Richard Mille and the shining star just vanish?

How many more collaborations with celebs will there be for the continuity of the brand?


Just random thoughts.

[texex91]

Oh gosh here we go again...

RM has been offered billion + to sell and refused. AP already owns a piece of it, so if anything it would probably be 'bought' by AP. Which would be fine in my book, but always see it as an autonomous brand.

RM is not going anywhere and your theory can be applied to many watch companies. At this high end of the scale (in the sports watch world) he owns the market. No need to go anywhere...as a matter of fact the desire (demand) to own an RM has never been greater. They cannot keep up with production, or rather are balancing inventory, which makes highly desirable pieces almost impossible to buy. They are are also heavily pushing the boutique model, where those desirable pieces end up in boutiques, hence lower discount.

The RM brand is not going anywhere anytime soon. People throw this non-sense out often to dissuade people from buying...looks like that didn't work.

[edo]

....and even if they sell it's not the end of the world... conglomerates are not that evil as everybody want them to be... LVMH maybe don't have the best business model for watches looking what they do with Hublot and TAG, but on other hand it's a bad model from WIS perspective... and look at A. Lange under other luxury conglomerate - Richemont. They are stronger then ever, they still go their own way in styling and watch making, with insane movements and finishing and great QC... and about RM, as Paul said, they own sport watches world in every way, and even if they sell no one is that stupid to ruin that.

[tom2517]

Originally Posted by texex91

Oh gosh here we go again...

RM has been offered billion + to sell and refused. AP already owns a piece of it, so if anything it would probably be 'bought' by AP. Which would be fine in my book, but always see it as an autonomous brand.

RM is not going anywhere and your theory can be applied to many watch companies. At this high end of the scale (in the sports watch world) he owns the market. No need to go anywhere...as a matter of fact the desire (demand) to own an RM has never been greater. They cannot keep up with production, or rather are balancing inventory, which makes highly desirable pieces almost impossible to buy. They are are also heavily pushing the boutique model, where those desirable pieces end up in boutiques, hence lower discount.

The RM brand is not going anywhere anytime soon. People throw this non-sense out often to dissuade people from buying...looks like that didn't work.

RM was not offered billions +.

When PPR (Kering) offered to buy RM, it was valued at 340-400M, 3X RM's 2013 revenue.

It is still likely RM would eventually sell it, RM makes about 45-50M/year after tax, interest, amortisation and etc., according to Financial times, and RM himself talked about retirement because of his age.

But I don't think it will be bought by AP, unlikely AP can afford the whole RM brand, more likely by the big luxury groups.

[HL65]

Originally Posted by edo

....and even if they sell it's not the end of the world... conglomerates are not that evil as everybody want them to be... LVMH maybe don't have the best business model for watches looking what they do with Hublot and TAG, but on other hand it's a bad model from WIS perspective... and look at A. Lange under other luxury conglomerate - Richemont. They are stronger then ever, they still go their own way in styling and watch making, with insane movements and finishing and great QC... and about RM, as Paul said, they own sport watches world in every way, and even if they sell no one is that stupid to ruin that.

Well said

[texex91]

Originally Posted by tom2517

RM was not offered billions +.

When PPR (Kering) offered to buy RM, it was valued at 340-400M, 3X RM's 2013 revenue.

It is still likely RM would eventually sell it, RM makes about 45-50M/year after tax, interest, amortisation and etc., according to Financial times, and RM himself talked about retirement because of his age.

But I don't think it will be bought by AP, unlikely AP can afford the whole RM brand, more likely by the big luxury groups.

Think they could now get a 5-6x multiple and 2015 numbers will be quite different than 2013.

Only time will tell, no one knows the facts at this point. What I do know is that it's an amazing, brand, watch and company that are hitting all of the marks.

[stradman]

Originally Posted by texex91

Oh gosh here we go again...



RM is not going anywhere and your theory can be applied to many watch companies. At this high end of the scale (in the sports watch world) he owns the market.

.

If you are referring to an extremely limited market sector of the sports watch world(sports watches more than say 100k usd ) then yes perhaps they have a substantial cut of that. However as I mentioned that is an extremely small segment. Furthermore imo that tiny segment of the market can be very finicky and can turn it's back very easily if something else comes along that's fashionable. RM do produce some interesting and innovative watches however I don't believe their success is guaranteed for the future. Most of where they have gotten to at the moment is down to the unrelenting PR of RM himself. Once he has gone I can't say if this would continue. Of course no one has a crystal ball and so we all are speculating so only time will tell.....

[texex91]

[QUOTE=stradman;6046271]If you are referring to an extremely limited market sector of the sports watch world(sports watches more than say 100k usd ) then yes perhaps they have a substantial cut of that. However as I mentioned that is an extremely small segment. /QUOTE]

Owning/dominating a small segment of a large overall market isn't a bad thing Based upon the valuation of the company, I'd take that model all day long (especially at his price point).

From day one people have been naysayers about RM, looks like he has proven all of them wrong and will continue to do so long after his death.

[tchaic]

Five years later still going strong!

[shaunylw]

I think It wouldn’t matter if they made 10,000 watches a year or 7. Their customer is such a small segment of the watch collecting community they are fairly irrelevant to most of us. I never look at what they are doing, i think there are far better watches for the $. It’s a hype brand IMO. Very very cool designs and some real innovation, but not 6 figures plus.


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[Ekwity]

Originally Posted by shaunylw

I think It wouldn’t matter if they made 10,000 watches a year or 7. Their customer is such a small segment of the watch collecting community they are fairly irrelevant to most of us. I never look at what they are doing, i think there are far better watches for the $. It’s a hype brand IMO. Very very cool designs and some real innovation, but not 6 figures plus.


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This.

Spot on

[LOWERCASE GUY]

When AP invested heavily into the brand they solidified themselves as long term players imo.

There target market is young millionaire (or at least wedged to the max), there is defiantly a market space for them. No-one has stepped into it thus far and they are making all the right moves with their exclusively and endorsements deals.

They aren't going anywhere imo.

Closest i'll ever come to one is the Hublot SOBB.

[WatchEater666]

I think they will look very dated very fast. Most of the models look pretty tacky imo

[Nav01L]

As long as they can keep bringing things to market that are novel enough to tickle their boredom prone customer base, they’ll probably keep being successful. If they struggle to come up with something new while maintaining their identity, I could see them following the path of Franck Muller or as a more conservative estimate, the AP ROO. If the hype flattens, something else will inevitably come along to out RM RM and if that happens, their very idiosyncratic design could go from strength to weakness pretty quickly.

[sunset117]

I like RM but it’s unobtainable for me. I don’t have the ability to spent 6-7 figures on a watch and think they are a small smalll minority of the collecting community that can. 5 figures occasionally is fine but I can’t justify 6+ Esp on something that 90% of people think is a Walmart g shock. I do like RM tho, and if it was low 5 figs so a piece I’d def consider it over a blancpain or Rolex or Panerai or whatever I’m feeling at that time but if I’m spending 5-6+ figs (to be clear, never spent 6 figures on a watch, not even close) I want something with classic elegance, perp calendar, etc, not something that looks like that, even tho I do like it

[sunset117]

Originally Posted by WatchEater666

I think they will look very dated very fast. Most of the models look pretty tacky imo

It’s wierd bc yes they do look super tacky but at the same time I like the look. I just don’t like that look for the price. When I spent 5 figures on a watch, I want it to look like a classic timepiece, I want a classic look like a AP/vc/PP, I do not want something that looks like a FM vanguard or a Hublot Big Bang ya know but that’s just me. I’m all for “tacky” looking watches(heck I own 2 Jacob and co’s) but just not at that price point. I love the tacky boom in your face look but when it’s that much , no thanks. But again I’m not their customer base and prolly will never be as I’m not carrying tens of mille’s in disposable income, esp atm.

[Rmoor]

Is it honestly even possible to buy a hot model Richard Mille from a boutique? I’m pretty sure it is not even if you have spent $1,000,000 with the brand. I follow some big collectors on IG and many post frustrations about not being able to purchase watches via boutique when the greys have all models even multiple of each model available unworn. I’m convinced most watches RM produce end up on the secondary market not on the wrist of a true collector.

[Johndong888]

Originally Posted by Rmoor

Is it honestly even possible to buy a hot model Richard Mille from a boutique? I’m pretty sure it is not even if you have spent $1,000,000 with the brand. I follow some big collectors on IG and many post frustrations about not being able to purchase watches via boutique when the greys have all models even multiple of each model available unworn. I’m convinced most watches RM produce end up on the secondary market not on the wrist of a true collector.

it is hard. I finally got one from the boutique and i'm hooked. Thing is all these boutiques are in major cities with major eff you money. Crazy how much the brand has skyrocketed. I started following them back in like 2012-13s.

[Pongster]

Hope to see a Richard Mille on my wrist in ten years. :)

Not a fan really. But when i handled the 11-03, i liked it.

If i chance upon a plain 11-03 reasonably priced, might bite. I dont want those editions linked to others.

[Pw92676]

I don’t know. But I sure hope they continue to make amazing timepieces that enthusiasts adorn their wrists with. Then again that’s my hope for all watch brands.