Comments:
Thierry comments on production and COVID
Thierry Stern explains, “For Patek, we have a lot of reserve cash, and when we had to shut down for a month and a half … it was OK. I knew I had to decrease the quantity [of watches produced] for the year. The target was about 60,000 to 65,000 pieces. I couldn’t do it losing that time, but I am still OK. The business is decreased about 30 per cent, but I am still OK with that.”
Stern explains, “My dad always told me that you have to be ready for a crisis at any time. He faced a few of them in the past, and so that is something I have always had in mind, so when the crisis came, I felt prepared.”
[Credit to Time and Tide who did the interview.] Link to the Forbes original November 20 interview:
This message has been edited by FabR on 2020-11-23 18:38:18
Stern explains, “My dad always told me that you have to be ready for a crisis at any time. He faced a few of them in the past, and so that is something I have always had in mind, so when the crisis came, I felt prepared.”
[Credit to Time and Tide who did the interview.] Link to the Forbes original November 20 interview:
Thanks for sharing this. This year has obviously been a difficult one for all watchmakers, though fortunately for Patek much less than for other less established (or less independent) brands.
I have no numbers for 2020 yet, but I can tell you that Patek's 2019 official production was of roughly 62,000 watches (of which 8k manual wind, 47k automatic, and 7k quartz for ladies models). So if a 30% decrease is the expectation by the end of the year in terms of production, we would be in the 43k to 44k range, a little more than 38k of which mechanical.
If you have a public link to this interview, as I assume, please feel free to include it. Cheers.
PS: Found it now, it should be credited to Forbes (I included the original link in your post).
No message body
Yep, though quartz on ladies models is still relatively limited, it accounts for roughly 11% of Patek's production (7k quartz watches on a total of 62k, from the 2019 data).
No message body
That number will go down even more after the they released the 7300.. only my opinion
No message body
Yep, now quartz is really only about the 4910 reference, though I'd definitely expect it to co-exist for long with the 7300 -- the old Twenty-4 line is just too successful of a model ;-)
No message body
6,25% of the standard collection (10 models) is quartz. I have a feeling it will even become less in the future
No message body
I don't have production figures for the 4 quartz Nautilus and the 2 Gondolo, but I'm pretty sure most of the quartz production comes from the Twenty-4 line (official quartz total was 7k last year, or 11% of the entire production)👍
No message body
That seems like a lot of watches to me...
...it would be interesting to see a breakdown; Calatrava, Nautilus, Grand Complication, etc.....
It's a huge amount considering 15 years ago the number closer to 5k, iirc.
No message body
That's what I thought. It makes me question the quality of the product...
...I would not be happy about paying $90k for a watch with a movement that is machine-finished. Even if it is finished by hand later on at some level. I would rather buy independent even though those watches are quickly climbing out of sight price-wise... Maybe vintage is the way to go...
With recent Pateks, you can avoid hand-finishing entirely!
Up to annual calendars and sport watches, at least.
As for machine finishing with a hand-finishing final step, that is the way things are done even for most independents, as I'm sure you know. Even Roger W Smith is using CNC machines and Philippe Dufour isn't even doing that in-house and I haven't seen him claim to avoid motorized tools even in the early stages of finishing (?). If you've read otherwise, I would love to read more.
I guess Atelier De Chronometrie would be a good choice, as you could ask them to make a watch totally by hand.
As for machine finishing with a hand-finishing final step, that is the way things are done even for most independents, as I'm sure you know. Even Roger W Smith is using CNC machines and Philippe Dufour isn't even doing that in-house and I haven't seen him claim to avoid motorized tools even in the early stages of finishing (?). If you've read otherwise, I would love to read more.
I guess Atelier De Chronometrie would be a good choice, as you could ask them to make a watch totally by hand.
I suppose some pieces must be precision cut...I get that...
...but afterward I would want that machine-cut piece to be finished by a person and not left 'as is' or finished further by yet another machine. Don't get me wrong, I really like many PP watches. But if I had FU money (I don't) I would buy a PP watch and ship it to Rexhep to get it torn down and finished properly : )
I hope you have FU money very quickly!
A watchmaker offered to do fine finishing on a watch of my choosing, so it's certainly possible!
Swiss Wristwatches exports January-October 2020 (including 2014-2020)
Its quite easy to be prepared for a crysis when you have such a strong market position. Not really helpful advice for CEOs of Brands like GP or Breguet in there.
No message body
Fair comment on the first part of your reply ! Regarding the second part and from reading the article, I did not...
think that Thierry Stern was offering advice to other brands. To me, he was just talking about their family philosophy on how to manage Patek.
Well Breguet and GP have corporate back-up, but I hope Breguet is doing well.
No message body
i hope so, too. just got their 2019 magazine and much enjoy reading it!
No message body
THANKS FOR THE UPDATE
Dear Mr. Stern,
The most important fact is that the quality and style of your product is maintained.
We are all sorry for the international misfortunes hovering from above.
Firstly I wish better health conditions to all on our planet...and I am glad that PP is able to
stay afloat under these strained conditions.
My first (3520D) PP was purchased in Nice, summer of 1971--I enjoy all three of my acquisitions currently.
Sincerely
Thanks for letting us know of this article ! 👍
For me the big question is whether the pandemic has negatively affected demand so much that the 30% decrease in production represents too many watches for the market.