Patek Philippe CEO Thierry Stern talks about seizing opportunities during market slowdown

How was Baselworld 2016 for Patek Philippe? 

The new World Time Chronograph ref: 5930 with our new base calibre was very popular. Each new model has been successful. Every market is ordering everything.

But times are a bit shaky, aren’t they?

Yes, 2015 was not a record year, but what is important is the stock level is very low.  Most of the distributors and retailers are asking for more pieces. It is a fantastic situation. I hope it will continue, but I have no idea how 2016 is going to finish.

And what are you doing to meet the difficulties?

People are focusing on lasting value. So you must have the right product and know how to sell it – which means that you need to understand the product; how complicated it is to manufacture a Patek Philippe; and how it is different from other brands. That is why we have increased factory visits, so more retailers today are able to explain the difference.

Sure, the product is king, but don’t economics rule the watch industry?

The quick fluctuation is indeed a difficult side of the business. But in the watch industry we should still be quite happy. If you compare it with say, machinery, the margins are totally different. Retailers, even though their costs for staff and rents are extremely high in places like Hong Kong, can still earn some money. The current situation doesn’t allow retailers to play too much with discounts, as they need to keep their margins. Now they understand why we have always been fighting against discounts.