Audemars Piguet: US Market Supply & Availability

pfang56 · 2021-06-29T21:41:24Z

Explore the 2021 Audemars Piguet supply crisis in the US. Collectors discuss market manipulation, gray market impact, and brand strategies affecting AP availability.

pfang56

WPS member · Audemars Piguet forum

40 replies9480 views2 photos

In June 2021, pfang56 sparked a critical discussion on the state of luxury watch supply, particularly for Audemars Piguet, after encountering barren displays in a US boutique. His observations prompted fellow collectors to share their experiences and theories on market dynamics, gray market influence, and brand strategies. This article synthesizes the community's insights, offering a snapshot of the challenges and shifts impacting the luxury watch industry during a period of unprecedented demand.

I won't share where the photo was taken, but I was shocked to see absolutely zero supply for all models of AP during a trip in the US - good for the boutique, but I have never seen such a tough situation for supply!

What is your experience in your dealer? I immediately messaged my home country dealer and thanked him!

Key Points from the Discussion

Authorized Dealers and boutiques often reserve inventory for their most loyal, high-spending customers, contributing to the perceived scarcity for general buyers. This practice has intensified as some regulars purchase watches to flip on the gray market.
The industry's supply chain is disrupted by the 'herd mentality' of buyers, leading to empty AD displays while gray market dealers openly showcase numerous sought-after models.
Audemars Piguet's former CEO, François-Henry Bennahmias, outlined a strategy in 2019 to maintain production at 40,000 watches annually, with plans to increase to 42,500-43,000 in 2020, while reallocating production among collections like the Royal Oak, Royal Oak Offshore, and CODE 11.59.
The labor-intensive nature of watchmaking, particularly hand-finishing, limits automation and rapid production increases, distinguishing luxury timepieces from mass-produced goods like automobiles.
Some speculate that brands manipulate the market by intentionally limiting supply, creating artificial scarcity to drive up demand and prices, a tactic observed after Rolex prices began to approach AP territory.
The perceived availability of watches on social media platforms like Instagram often contrasts sharply with the reality of limited supply at authorized dealers, creating a sense of frustration among collectors.

The Discussion

mdg

Jun 29, 2021

...Unicorns and Leprechauns. Cheaper and much easier to find.

enjoythemusic

Jun 29, 2021

Looked about the same... except Hublot and Patek, there were plenty of those. Breitling too. I felt kinda bad for the big Rolex boutique staff. On the PLUS side, it's good to see many brands and independents doing so well. The shortage makes one look deeper into brands. In addition, we have timepieces like the Bvlgari Octo, Ming, and so many more who have earned good sales. So overall this has greatly benefitted the overall health of the industry. jmho

oyster case

Jun 29, 2021

so that's worse than empty cases I guess? In a recent Watches TV video Michael Friedman addressed the issue, there simply isn't the ability to increase production even if they wanted to.

pfang56

Jun 30, 2021

You would definitely think so - but they have all shared business is booming and they can't keep up with demand! Crazy crazy times. Peter

Squishytwenty7

Jun 30, 2021

Nothing on display, but I asked to see certain watches then they brought them out. All of them pre sold they even bring them out with boxes with post-it with customers name on it. So yes they didn’t have nothing to sell to me (they sold me one 2 months ago), but they have watches for sure.

pfang56

Jun 30, 2021

And it requires you to be extremely lucky or consider other brands of the boutique is co-owned by a larger store...Ironically the exclusivity and the lack of supply make the watches even more desirable, creating a vicious circle and overinflated secondary values. Next door I saw a store that was an AD of a big three with super limited supply of "official" watches but a huge inventory of pre-owned watches. Peter

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