The flagship of Swiss haute horlogerie, founded in 1868, continues to grow. Its charismatic outgoing CEO, François-Henry Bennahmias, is forecasting record annual sales of 2.4 billion Swiss francs in 2023, with historically low inventories.
In order to maintain this dynamism, Audemars Piguet is beefing up its production facilities and strengthening its presence in the United States, with a fifteenth AP House.
Record sales for 2023
In an exclusive interview with Bloomberg, François-Henry Bennahmias confirms that the watchmaking sector is definitely not in crisis. He claims that 2023 represents a new sales record for Audemars Piguet at 2.4 billion Swiss francs ($2.7 billion or 2.5 billion euros), “outperforming the sector” and confirming its status as the fourth-largest Swiss brand in terms of revenues.
An illustrious member of the “Holy Trinity” of Swiss watchmaking, due to the complexity of its mechanisms and the high level of finishing of its models – alongside Patek Philippe and Vacheron Constantin – the company currently produces close to 50,000 watches a year, each of these exceptional timepieces being sold at an average price of 50,000 francs.
While the CEO is satisfied, he is wary of triumphalism in view of the slowdown in the US and Chinese economies, as well as heightened geopolitical tensions.
In a tone half foreboding, half prophetic, he tells the American business media, “Audemars Piguet’s strength doesn’t mean that the world can’t enter a slightly more troubled period”.
As for those who fear overproduction, the current CEO assures them: “It’s unprecedented”, referring to historically low inventories.
A fitting end to a thirty-year career with the Bassus brand. During his tenure as CEO – which began in 2013 – Bennahamias has made the Royal Oak more desirable than ever, and propelled the watch brand to new heights.
To meet this growing demand, Audemars Piguet has just laid the foundation stone for a new industrial building.
The handover of the reins to Ilaria Resta, a former Procter & Gamble executive, expected at the end of 2023, should not dampen the brand’s ambitions.
Meyrin factory doubles in size
In order to increase its annual production capacity to a minimum of 56,000 units by 2025, Audemars Piguet is expanding its Meyrin-Satigny factory in the canton of Geneva. Meyrin-Satigny is the canton’s fourth most populous city, after Geneva, Vernier and Lancy, and is less than 60 km from the company’s headquarters in Le Brassus.
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The foundation stone for this ambitious project was laid on September 6. The site, previously occupied by the Uhlmann-Eyraud pharmaceutical company from 1963 to 1965, is just one block from the current factory, inaugurated in 2013.
The new facility will accommodate 350 employees by 2025.
To carry out its construction and renovation project, estimated at 20 million Swiss francs (25 million euros), the Maison horlogère commissioned the Swiss firm FdMP architectes to carry out the work.
The aim was to blend tradition and modernity, without distorting the aesthetics of the original U-shaped building. In its place, a brand-new central building with two side extensions on the first floor will be erected, bringing the total industrial area to 9400 square meters. Three floors will be dedicated to the production of timepieces.
Beyond the design aspect of the premises, the Maison is also concerned with the comfort of its employees. Glazed surfaces will give pride of place to natural lighting, while relaxation areas will include a piazza and spacious terraces on the second floor.
The project also meets the company’s eco-responsibility standards.
The new structure is certified Minergie® Rénovation for the old building and Minergie®-P Eco for the new one. The building features solar panels on the roof slopes and a green roof at the top.
But to stay in the race, producing more is not enough: the luxury brand also needs to strengthen its customer relations and deliver a memorable experience to its exceptional clientele.
According to analysis by the investment bank Morgan Stanley, most of Audemars Piguet’s sales come from its monobrand boutiques, including the aptly-named AP House.
Strengthening distribution in the USA
Despite the signs of deceleration observed by the Richemont Group, Audemars Piguet is strengthening its presence in the United States with the opening of a second AP House in Los Angeles. This will complement its space inaugurated in May 2022 in New York‘s Meatpacking district.
The fifteenth AP House, this new experiential space will be located in West Hollywood, on the legendary Sunset Boulevard.
This hybrid space is a continuation of the AP House concept inaugurated 5 years ago with a first location in Hong Kong, aimed at redefining the codes of hospitality.
Conceived by renowned designer Brigette Romanek, it will take the form of a cozy private boutique-lounge dedicated to watchmaking over 6,000 square feet (600 square meters), combining sales area, watchmaking studio, roof terrace and DJ booth.
Part of its sales area occupies the former Los Angeles Playboy Club premises.
The way AP House reinvents the customer experience is clearly at the heart of the Brassus-based company’s almost insolent success. A “sweet spot” discovered by the current CEO, a former golf champion.
In addition to the USA, the concept is present in Hong Kong, London, Tel Aviv, St. Barth, Barcelona, Milan and Munich.
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Read also > AUDEMARS PIGUET APPOINTS NEW CEO
Front page photo: Le Brassus headquarters © Audemars Piguet
