It’s all exactly the way it’s intended

[Nav01L]

From an interview of F-HB earlier this fall, by the in-house gazette of a private business school here in Switzerland:


For the few to whom it may not have been obvious, F-HB is of course François Henry Bennahmias, the CEO of Audemars Piguet over the last 10 years


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[GreenLantern]

From my reply on the other thread:

He is overdoing it.

Enzo Ferrari had the right idea: "Build one less than demand."

Obviously the implication is that you try to keep up with demand without actually meeting it.

F-HB is failing at this.

[VogelPhoenix]

Originally Posted by GreenLantern

Enzo Ferrari had the right idea: "Build one less than demand."

Obviously the implication is that you try to keep up with demand without actually meeting it.

Somewhat ironic using Ferrari as an example, given that Ferrari (the company) co-invented most of the luxury sales tactics TRF is up in arms about.

AP are increasing capacity from ~40k to ~60k watches over the next years. Quickly doubling or tripling production couldn't be done in-house (or in Switzerland, where the unemployment rate just fell to a 2.6% (!) all time low). Should they outsource production to third-party suppliers in China? I've stopped buying some brands that went that route, but maybe most don't care.

[Nav01L]

Originally Posted by VogelPhoenix

I've stopped buying some brands that went that route, but maybe most don't care.

I would assume those are brands making leather wares and apparel, not watches, right? Otherwise, please do drop names. Would be interested to know who would have been looking towards Asia among the big names.

[VogelPhoenix]

Originally Posted by Nav01L

I would assume those are brands making leather wares and apparel, not watches, right? Otherwise, please do drop names. Would be interested to know who would have been looking towards Asia among the big names.

Apparel and leather wares, yes, not watches.

[www777]

I know car dealerships do this but I’m not sure how this preowned initiative is going to work. If you want to trade your AP at an AD to upgrade does the AD view this as a positive or negative? And if the market price is above msrp how does that work?

[xsnv]

Originally Posted by www777

I know car dealerships do this but I’m not sure how this preowned initiative is going to work. If you want to trade your AP at an AD to upgrade does the AD view this as a positive or negative? And if the market price is above msrp how does that work?

You’d want to trade your pre-owned watch at ‘market price’ but buy the new one at MSRP? Lol

[VogelPhoenix]

Originally Posted by xsnv

You’d want to trade your pre-owned watch at ‘market price’ but buy the new one at MSRP? Lol

I've inquired about this in several boutiques, but was unable to piece together a complete picture. But yeah, message was that they are not going to pay market price for a watch they just sold you at MSRP. However, if trading in below market generates some goodwill for hard-to-get pieces that might still make sense for everyone involved.

[Nav01L]

That’s the problem with OEM certified pre owned, it works on the assumption that the products depreciate with time.

Bucherer has the same issue, as they also sell new and CPO. Their solution is to do CPO only on discontinued references, which is likely the way for AP to do this as well. How does RM do it? Does anyone know?

[NYG1121]

They want to make money twice or 3 times on the same piece. This encourages them to maintain value of their product. How they actually do it who knows? I suspect major low ball offers in exchange for “access” to something else at MSRP. So essentially we would be better off going grey because same delta

[GreenLantern]

Originally Posted by VogelPhoenix

Somewhat ironic using Ferrari as an example, given that Ferrari (the company) co-invented most of the luxury sales tactics TRF is up in arms about.

Somewhat, though not entirely.

Bundling: Independent Ferrari franchise dealerships in North America.

Requiring relationships and history for the "hot" and limited models: Ferrari S.p.A.

Producing slightly less than demand: Ferrari S.p.A.

Producing dramatically less than demand, and pretending like the demand is still at pre-2018 levels: Watch Manufacturers such as Audemars Piguet, Patek, etc.