Patek Philippe

GLau
[Patek Moderator]
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Thanks Oliver for informing us about this news. This milestone for PP speaks volumes ...

... on its long term expectations and commitment for the China market.

Since both Beijing and Shanghai have opened for only several years, the 50% growth is coming from the combination of 1) watches bought & worn in China, and 2) bought outside of China and brought back & worn in China.  Given the import duties and high luxury tax in China, the second factor above is likely the bigger driver for the need to have this new institute.  If all these watches purchased globally by Chinese buyers were added up for the past few years, this figure as a % of PP's total sales for the period should be an interesting number.

Anyway, the selection process for the Shanghai Institute apparently was rigorous and less than 2% (8 people) was hired at the end.  The process started with several hundred candidates to perform various tests.  The more qualified ones were then moved to the next stage.  Every subsequent stage obviously had fewer candidates. At the end, the <2% acceptance rate is lower than Ivy League schools !!

To me, this long term commitment in terms of costs, efforts and resources demonstrates when PP makes such a move, the market potential for the long term is real.

Gordon