No such thing as Building a Patek AD relationship anymore, PATEK TARGETING ELITE

[CAWatchLove]

After numerous discussions with people inside at Patek, and previous and current authorized dealers it can be confirmed that Patek’s allocation process is at a new low.

They closed the doors at several US locations and in some cases the brand did not even have the decency to inform the AD what was coming, they just stopped sending product to some authorized dealers they have had relationships with for DECADES. Some AD’s had to chase their leadership down asking why and it was determined the location did not “fit the demographic” Patek is targeting. In any other circumstance this sleazy, pretentious approach would get brands cancelled. But it’s Patek so they get away with it.

So here is truth, doors are CLOSED in areas where the “ultra elite” of society are not located. And the doors that remain will get more allocations to focus on adding more of “societies ultra elite” to the brand. Cities like NYC, LA, San Francisco Silicon Valley areas have multi millionaire & billioneres they are targeting. These “ultra elite” are who Patek wants the watches to go to at MSRP and direct in their registry.

As for those upper class “beneath” the ultra elite, Patek needs these people too. But they are shifting them into the secondary grey market to chase their product and keep the hype up. Thierry Stern himself has stated “Patek is for the ultra elite only”....he also said “I discontinue watches so they go up”, validating his need and desire for they grey market and secondary market pricing, chase and hype. Only he wants the ones beneath the ultra elite to go that route, and the elite get it from AD’s direct.

They even have AD’s cleverly investigate potential clients with address searches to see property values, online searches on people assets, or the easiest way is seeing if a customer spends 7 figures on endless jewelry to determine if they are the “ultra elite” Patek is looking for. Jewelers are making a killing OVER CHARGING clients on diamonds, stones etc....and offering these same clients rare Patek’s even though they are not huge collectors or have horological interests.

There is a new low to this brand in conjunction with AD’s. A few years ago it was not this bad even though the demand was the same. The corporate strategy and greed has reached new low’s and its beyond pretentious.

I loved the brand for its history, craftsmanship and innovation. But the new lows lack a moral compass IMO. To Patek targeted clientele is not about watch collecting or horology anymore. It’s about strategic brand placement targeting elites and the lowest levels of execution to do it.

[Unwind_Asia]

Sorry, I disagree.

I "think" Patek don't care about how much money customers have...if you can afford £20-60k for a "cheap" Patek you probably have a net worth in the millions anyway.

I believe they just care if you are a genuine enthusiast rather than an "arriviste".

[CAWatchLove]

My post is based on facts. Patek also has public posting and brand “protectors” online.

[leopie]

Originally Posted by CAWatchLove

After numerous discussions with people inside at Patek, and previous and current authorized dealers it can be confirmed that Patek’s allocation process is at a new low.

They closed the doors at several US locations and in some cases the brand did not even have the decency to inform the AD what was coming, they just stopped sending product to some authorized dealers they have had relationships with for DECADES. Some AD’s had to chase their leadership down asking why and it was determined the location did not “fit the demographic” Patek is targeting. In any other circumstance this sleazy, pretentious approach would get brands cancelled. But it’s Patek so they get away with it.

So here is truth, doors are CLOSED in areas where the “ultra elite” of society are not located. And the doors that remain will get more allocations to focus on adding more of “societies ultra elite” to the brand. Cities like NYC, LA, San Francisco Silicon Valley areas have multi millionaire & billioneres they are targeting. These “ultra elite” are who Patek wants the watches to go to at MSRP and direct in their registry.

As for those upper class “beneath” the ultra elite, Patek needs these people too. But they are shifting them into the secondary grey market to chase their product and keep the hype up. Thierry Stern himself has stated “Patek is for the ultra elite only”....he also said “I discontinue watches so they go up”, validating his need and desire for they grey market and secondary market pricing, chase and hype. Only he wants the ones beneath the ultra elite to go that route, and the elite get it from AD’s direct.

They even have AD’s cleverly investigate potential clients with address searches to see property values, online searches on people assets, or the easiest way is seeing if a customer spends 7 figures on endless jewelry to determine if they are the “ultra elite” Patek is looking for. Jewelers are making a killing OVER CHARGING clients on diamonds, stones etc....and offering these same clients rare Patek’s even though they are not huge collectors or have horological interests.

There is a new low to this brand in conjunction with AD’s. A few years ago it was not this bad even though the demand was the same. The corporate strategy and greed has reached new low’s and its beyond pretentious.

I loved the brand for its history, craftsmanship and innovation. But the new lows lack a moral compass IMO. To Patek targeted clientele is not about watch collecting or horology anymore. It’s about strategic brand placement targeting elites and the lowest levels of execution to do it.

Can you provide the source on the following quote? "Thierry Stern himself has stated “Patek is for the ultra elite only”"

[HMHM]

This post has the same “MTG Space Laser” kind of feeling….. especially the part about Patek wanting only the ultra elite as customers and employing online “defenders” of the brand….

[CAWatchLove]

Mr Stern’s quotes were stated at a private event around elite collectors after a couple of glasses of red wine. He tends to tell the truth more candidly in this context.

[patlex]

Originally Posted by CAWatchLove

Mr Stern’s quotes were stated at a private event around elite collectors after a couple of glasses of red wine. He tends to tell the truth more candidly in this context.

Care to share the source or link? Curious! Or were you at the event?

[leopie]

Originally Posted by cawatchlove

mr stern’s quotes were stated at a private event around elite collectors after a couple of glasses of red wine. He tends to tell the truth more candidly in this context.

lol

[GB-man]

I know a guy who paints houses and he’s one of the salons favorite customers lol

[brandrea]

OP, you didn’t get the cold shoulder from Humbertown did you?

[fsprow]

Originally Posted by CAWatchLove

My post is based on facts. Patek also has public posting and brand “protectors” online.

Let’s see the facts on which your post is based.

[CAWatchLove]

This is a recent approach from Patek.

The facts are doors have closed that don’t fit the “demographic” they want now, fact.
Mr Stern’s own words quoted above.
Several custimers at AD’s who never seeked Patek the way collectors do but spent millions on jewelry and have overpaid for jewelry frankly have been given Patek’s and brought into brand.
Staff at Patek and AD’s have validated this approach. I’m not here to name drop as some still work there.
I have not been given cold shoulder, I have Patek’s from AD too.
People who paint houses could have been allocated Patek’s before. But not happening now with new approach.
Take it for what it is, or trash the post. Patek also has people on payroll posting here so the over zealous defenders or skeptics on here are questionable to me too.

[chunkythebulldog]

Originally Posted by GB-man

I know a guy who paints houses and he’s one of the salons favorite customers lol

Me too. I was his plus 1 on a recent trip to visit the manufacture, PP6. According to OP I also don't fit the demographic either as I'm only a poor Northerner but I am now one of their favourite customers

I always find it's not what you've got but how you conduct yourself that opens the doors.

[DonLee]

Originally Posted by CAWatchLove

My post is based on facts. Patek also has public posting and brand “protectors” online.

right... but I would be more inclined to believe that if brands wanted to play dirty, they'd hire public postings roasting other brands rather than the other way around.

[Halothane]

Still better than the way some AP boutiques treat their customers.


Sent from my iPhone using Tapatalk

[dchang81]

fact, bears eat beets

[maecenas]

Or, it could be, they simply have too many AD doors to create the kind of experience they want. And I bet that experience focuses on building deep customers instead of first time. Which means you need a good number of watches going to a store, not just a few a year.

In the time I’ve been collecting Patek (only since 2016, so to say, not long) I feel I’ve seen a noticeable shift towards opening up Asia. So that’s way more demand, yet production isn’t going up, so things shift.

The only real mistake here is not controlling the experience better for the customers that lose their AD. I feel like that has been miserable. And that’s the problem with delegating everything to an AD, because that dealer has no motivation to help the customer if they’re being shut down. That’s a weak excuse, though, as Patek knows exactly who the customers are. My local dealer got closed, and I had to find out through this forum! Lucky (for me), I got handled, but so many others have been left out in the cold, I feel, leading to posts like this.

[joa]

Originally Posted by GB-man

I know a guy who paints houses and he’s one of the salons favorite customers lol

you know the Irish man... ?

[CAWatchLove]

New potential clients “home addresses” are searched, assets are checked online, social media and online presence checked etc....

If you are determined to be worth over $50 million vs being worth $2 million you will be the one they accommodate and “start” the relationship with, regardless of horological passion & interests.

Go test it for yourself, walk into a random AD and give them a home address and name of a multi millionaire and just watch how different that interaction goes vs you presenting yourself as “basic upper class”.

[CAWatchLove]

Mr Stern is very strategic as well.
Publicly he always says “it’s on the AD to determine the right Patek client and bring in the right new client”.

He wants no part of this pretentious process publicly, throws it all on his AD’s. But his corporate team behind the scenes are making it clear who the right clients are for the brand and if AD want to continue having Patek they better bring the “right” clients into the brand.

Ruthless and pretentious, cringe worthy.

[CAWatchLove]

Additional evidence supporting my original post.

“Double sealed” Patek’s being auctioned for $3 Mil and its VERY EASY for Patek to see the AD and even the client. Absolutely NOTHING being done about it, why??? Because Patek NEEDS the hyper inflated grey market price and the AD has the ultra elite wealthy clients that Patek desperately desires. In this allocation case it’s highly probable the one who purchased the double sealed Patek did not even care for it, but they are the ultra elite they are looking for.

SMH ��*♂️ at anyone who believes the things this company says.

[V25V]

Originally Posted by CAWatchLove

Additional evidence supporting my original post.

“Double sealed” Patek’s being auctioned for $3 Mil and its VERY EASY for Patek to see the AD and even the client. Absolutely NOTHING being done about it, why??? Because Patek NEEDS the hyper inflated grey market price and the AD has the ultra elite wealthy clients that Patek desperately desires. In this allocation case it’s highly probable the one who purchased the double sealed Patek did not even care for it, but they are the ultra elite they are looking for.

SMH ��*♂️ at anyone who believes the things this company says.

I tend to believe much of what you are saying. If the manufacturers really wanted this nonsense to stop, I think they could do much more without much work. Instead, the supposed "most loyal customers" who are worthy of such pieces are the ones flipping them to gray market dealers to make money. If that's not the case, then how are they getting to secondary markets if its only those they are offered to?

[jon_jon]

Originally Posted by V25V

I tend to believe much of what you are saying. If the manufacturers really wanted this nonsense to stop, I think they could do much more without much work. Instead, the supposed "most loyal customers" who are worthy of such pieces are the ones flipping them to gray market dealers to make money. If that's not the case, then how are they getting to secondary markets if its only those they are offered to?

My understanding is that the ADs selling the hot watches through the back door are the ones that are losing their Patek AD license. Patek is known to send out secret shoppers to online resellers and trace many of these flipped watches to see which ADs are repeat and/or habitual offenders.

[macrowatch]

I don't think it's a secret that luxury CEO's and businesses are shifting the business model to target exclusively the 1% or .1% instead of the top 10%. Hermes, LV, Chanel, you name it.

In fact, I think I recall even the CEO of department store Neiman Marcus said on an earnings call that they want to target and serve the customers that spend at least $10k USD annually with the store and ignore the rest. He got irate comments from those spending let's say $5k per year...but pretty sure he's got the right strategy template. Just hard to message publicly when, well...you need to publicly communicate to analysts but probably don't want to offend the lower tier customers.

@CAwatchlove, man, so true on 'basic upper class'. First time I've read that term, but you're so right.

[V25V]

Originally Posted by jon_jon

My understanding is that the ADs selling the hot watches through the back door are the ones that are losing their Patek AD license. Patek is known to send out secret shoppers to online resellers and trace many of these flipped watches to see which ADs are repeat and/or habitual offenders.

Right but the AD's have been shut down for years now and the hot watches STILL end up at gray dealers. AP has a boutique only model and how is that you still see 16202's at grays everywhere? Thats a new reference and only been available since they made this move. C24 has 51 16202's listed for sale in the USA alone.

[Bearxj86]

Be like Thierry. Be elite.

[martinr]

It’s not the brand itself that turns me off but some of the people that are interested in the brand do. Like the OP. Bitter self righteous know it all superior attitude. Whether what he’s saying is true or not and there are zero facts presented to prove his point is irrelevant. He doesn’t like his experience with Patek and says it’s the new way for everyone. It isn’t.

Per chunkythebulldog:
I always find it's not what you've got but how you conduct yourself that opens the doors.

That is a fact.

[dchang81]

is this francois bennahmias getting back at Thierry after he took potshots at APs strategy

[fsprow]

[QUOTE=martinr;12781074]It’s not the brand itself that turns me off but some of the people that are interested in the brand do. Like the OP. Bitter self righteous know it all superior attitude. Whether what he’s saying is true or not and there are zero facts presented to prove his point is irrelevant. He doesn’t like his experience with Patek and says it’s the new way for everyone. It isn’t.

…..
Very true. Perhaps the OP used ChatGPT to write his post, limiting the inputs to articles on bitterness and conjecture.

[Bearxj86]

[QUOTE=fsprow;12781114]

Originally Posted by martinr

It’s not the brand itself that turns me off but some of the people that are interested in the brand do. Like the OP. Bitter self righteous know it all superior attitude. Whether what he’s saying is true or not and there are zero facts presented to prove his point is irrelevant. He doesn’t like his experience with Patek and says it’s the new way for everyone. It isn’t.

…..
Very true. Perhaps the OP used ChatGPT to write his post, limiting the inputs to articles on bitterness and conjecture.

I think most likely Patek has segmented the market. Anyone would know that even if you target just the 1% or 0.1%, you still need widespread appeal and brand awareness. Entry level pieces like Calatravas will also be for the 5-10%. Minute repeaters, grand complications for the top 0.1% and the catalogue is wide enough for everything in between.

So in essence, you are all right, but the percentage you are right may be suspect :)