Joepny
1970
Audemars Piguet boutiques will do trade-ins
Jan 25, 2018,06:25 AM
and then sell those traded watches as pre-owned watches. This pilot program starts in some Switzerland AP boutiques only. Then there is a chance it will go into the US and Japan in the future.
See this article from Reuters where Mr. Bennahmias is interviewed:
http://reut.rs/2DASYu3
It was published at the start of SIHH but it did not get much coverage obviously by the watch bloggers. Until today when Watches by SJX, former PuristS, wrote a snippet about it.
I think this is BIG BIG news that one of the biggest & most prestigious manufacturers is getting their hands into the used watch market. AP makes 40,000 watches a year, that’s a lot of used watches year after year. Obviously they could not take back 10,000s+ watches and keep their current operating margins. I will be curious which references will be bought back and how limited. I am guessing it will cater to VIPs of the brand. AP has been reducing their ADs and redirecting business to their boutiques so it makes sense that they have to offer trade-ins which ADs traditionally do. Will this raise the floor on used Royal Oaks and used Offshores? To be seen...
Also in the article, it mentions that they asked Patek Philippe for comment and did not get any. But I don’t imagine PP has a need to do it; they are sitting pretty with fairly strong resale values already in their higher end references. And they only have a few Salons; their AD network already does it to some extent. And think about all the grey market dealers who rely on PP used inventory and they are breathing a sigh of relief. Business as usual for the huge ecosystem of selling Patek used watches.
Your thoughts?
Comments:
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Audemars Piguet boutiques will do trade-ins
By: Joepny : January 25th, 2018-06:25
and then sell those traded watches as pre-owned watches. This pilot program starts in some Switzerland AP boutiques only. Then there is a chance it will go into the US and Japan in the future. See this article from Reuters where Mr. Bennahmias is intervie...
I wonder if it will be like those car adverts...
By: andrewluff : January 25th, 2018-07:21
Where they commit to buy any car offered to them... but in reality then they offer half of what the market is offering for anything other than the star pieces which are high in demand... Time will tell I guess! Thanks, Andrew
I think it would be discontinued refs only
By: Joepny : January 25th, 2018-07:49
or very limited high-end pieces (6 figures) in current catalogue that AP wants to keep exclusive. If there are in PuristS in Switzerland, head over to the AP boutique and find out the details for us. But I think a trade-in program by definition is going t...
I think you're spot on.
By: JToddH : January 25th, 2018-17:27
Guaranteed they'll lowball every offer, then mark them up close to new to push people to the current models. Preowned will give them flexibility with pricing rather than haggling over new prices. Interesting concept. At least people will enjoy verified au...
Copycat
By: Euroasianstar : January 25th, 2018-08:03
Just copying what FPJ is already doing at a smaller scale with their Buyback program. I guess it’s an effective way of keeping aftersales prices up... and cheaper to implement than intervening in the auction markets like Patek
I like this idea, makes it easier although I feel it’ll just be like...
By: Clueless_Collector : January 25th, 2018-08:44
giving you an offer and make you feel depressed but again, the value will be better if you trade in AP for AP. It’ll be even lower if you trade in to any other watch dealers but it also depends on their inventory and demand for the trade in model. Last bu...
Tourneau?
By: Joepny : January 25th, 2018-09:01
🤔
LW vintage too...
By: iceheller 1945 ✌️ : January 29th, 2018-05:45
Guess the market just cannot swallow so much watches. All this reminds me of hz rollies make near to a mil watches and the market still can absorb it... although I c tons of it in re-seller shops and pawn shop.
E-commerce coming soon too.
By: MichaelC : January 29th, 2018-06:13
Possibly in the form of a special release to "test the waters", according to Francois. He indicated the ceiling for the used watch business far exceeded that of new sales if I recall his comments correctly, so there you go. I would not be concerned with t...
Good point about E-commerce
By: Joepny : January 29th, 2018-07:05
Makes sense for the AP model that Mr. Bennahmias has been spearheading for many years now with the reduction in ADs and increase focus on their own boutiques. I guess the key is making E-commerce a similar white-glove experience like you can get at the AP...
I have no doubt they will make E-commerce a great experience
By: MichaelC : January 31st, 2018-07:32
I have collected AP many years now, and I can say there is a noticeable improvement in all of their logistics these past 3-4 years. AP's attention to detail has always been well above average, now I believe it is extraordinary.
I think this is an excellent initiative
By: Mr.Gatsby : August 23rd, 2018-22:37
Firstly, it gives collectors another re-sell option which will level the playing field a bit between collector and grey dealers — i.e. lower their margins, protect our watch valuations a bit more. Next, while some buyers only prefer to buy brand new due t...
If the price is right.
By: jomni1 : August 23rd, 2018-23:52
It’s a good way for upgraders to get their new piece faster and directly from the brand boutique.
