WPS member · Audemars Piguet forum
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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.
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