Patek is going Boutique

[Calatrava r]

PP has recently stated many times they are committed to their dealer network. I do not see them changing this. In a down market, maintaining a lot of empty boutiques can be very costly. Plus, there is not really much savings to be had. Each boutique has its own cost of acquisition, overhead, tax and staff costs, etc. Boutiques are typically located in the priciest upscale urban centers. Let someone else pay the rent.

[Xerxes77]

Originally Posted by jon_jon

10 years ago during the global recession, SS Nautilus was selling for quite a discount. But it was a different era when social media was in it's infancy and advertising was still done through print media.

Agree with that 100%....
More then that 10 years ago Nautilus not have so many followers.
Now it’s different.....
I think in the worst case you will buy it at 1-2000 more then price list but not from the AD.
When Nautilus now go down in price will have double people who want a Nautilus model.

[Analysing You]

Load of cobblers


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[0315]

so I guess everyone else knows better, fine.
I guess than I must have been informed wrongly...

Anyway, to all the "know better" guys here, i'm not saying the world goes down or so.
Fact is, PP cant feed the demand. So it is more than logic that they straighten their supply channels and limit the re-sellers. I would do EXACTLY the same. In addition, I dont see a long term curve of over trading timepieces anyway but that is another story.

All I'm saying is, PP is definitely (and that is a SECURED to ME information) continue limiting the amount of re-sellers. Which may or may not result into having certain pieces boutique only. we will see

[toucan]

Originally Posted by benlee

They will require ADs to open exclusive boutiques just for the brand. That's entirely conceivable. But I don' think they will open more salons.

This is the only plausible happenstance.

[italiafan]

Originally Posted by jon_jon

10 years ago during the global recession, SS Nautilus was selling for quite a discount. But it was a different era when social media was in it's infancy and advertising was still done through print media.

Not sure of your point.
My point is I sure don’t want to see $2M (for instance) evaporate from my accounts to be able to purchase a watch at $20K less...just plain non-sensical thought process.
Exact numbers are not important and only illustrative; percentage drop in investment accounts in a financial crisis would not offset percentage drop in watch prices—unless you are primarily cash/fixed income and without substantial assets.

[jon_jon]

Originally Posted by italiafan

Not sure of your point.
My point is I sure don’t want to see $2M (for instance) evaporate from my accounts to be able to purchase a watch at $20K less...just plain non-sensical thought process.
Exact numbers are not important and only illustrative; percentage drop in investment accounts in a financial crisis would not offset percentage drop in watch prices—unless you are primarily cash/fixed income and without substantial assets.

This is a watch forum and not a financial asset management forum. My point is during the last major recession, there were many watches available at a deep discount. If you can predict the downturn and move assets around to minimize losses, you can use that cash to buy Patek watches on a dip.

[AlinaGoligen]

The two faces of the new most expensive watch in the world, Patek Philippe’s Grandmaster Chime.

[locutus49]

In a way this forum IS a financial asset management forum. I carefully consider the most common advice and DO THE OPPOSITE. I have done very well. YMMV.

Originally Posted by jon_jon

This is a watch forum and not a financial asset management forum. My point is during the last major recession, there were many watches available at a deep discount. If you can predict the downturn and move assets around to minimize losses, you can use that cash to buy Patek watches on a dip.

[italiafan]

Originally Posted by jon_jon

This is a watch forum and not a financial asset management forum. My point is during the last major recession, there were many watches available at a deep discount. If you can predict the downturn and move assets around to minimize losses, you can use that cash to buy Patek watches on a dip.

You might benefit from joining a financial asset management forum.

[jon_jon]

Originally Posted by italiafan

You might benefit from joining a financial asset management forum.

Always appreciate unsolicited advice. But let's get back to topic and discuss watches

[Calatrava r]

Originally Posted by 0315

so I guess everyone else knows better, fine.
I guess than I must have been informed wrongly...

Anyway, to all the "know better" guys here, i'm not saying the world goes down or so.
Fact is, PP cant feed the demand. So it is more than logic that they straighten their supply channels and limit the re-sellers. I would do EXACTLY the same. In addition, I dont see a long term curve of over trading timepieces anyway but that is another story.

All I'm saying is, PP is definitely (and that is a SECURED to ME information) continue limiting the amount of re-sellers. Which may or may not result into having certain pieces boutique only. we will see

ADs have stock. Its just not the hot stuff everybody wants. Luckily for me I like what is available at retail at most ADs.

[Simon.DGV]

Boutique only sport watches maybe the best way for Patek to maximise sales and protect Patek image. But it maybe a little too late as the Nautilus market price has been dropping like stone.
Most of AD sell Patek and few other brands in their store. This complicates Patek sales. For example if you want to purchase Nautilus or Aquanaut you have to help the AD purchase a few other watches ; it could be some leather straps non sport Patek such as the world time Patek , and some difficult to sell watches such as Omega, JLC or Baume Mercier to develop relationship. If client refuse the offer, the AD would not sell Patek sport watches.
Imagine if you have only just enough money to buy a Nautilus retail, say US$30,000 cash... and you need to spend additional $50,000 on watches you will never wear just to develop relationships to get a Nautilus ... you will be better move on and just buy a Daytona in grey market ; some people do have $70,000 to spend on Nautilus 5711 but he may not have the time to sit around the AD “developing” relationships talking on watches he never wanted; he will buy the Nautilus in the grey Market. In both cases, Patek has lost potential sales revenue; these 2 types of person may account for 50% of the Nautilus market. I saw there is weariness amongst Nautilus enthusiasts and some even have lost interest completely as economy is getting tough these days.