Audemars Piguet Redefines Luxury: A Gender-Neutral Approach to Watchmaking
In a bold move that reflects the evolving luxury market, Audemars Piguet, a leading Swiss watchmaker, is dismantling the traditional gender segmentation in its marketing and product lines. CEO Ilaria Resta’s transformative strategy recognizes the increasing purchasing power and influence of women in the high-end watch sector, paving the way for a more inclusive and dynamic future for the luxury industry.
Key Takeaways: A New Era for Luxury Watches
- Gender-Neutral Marketing: Audemars Piguet eliminates the distinction between “men’s” and “women’s” watches, acknowledging women as significant drivers of luxury watch sales.
- Surging Women’s Demand: The company notes an 11% surge in women purchasing watches for themselves in the US over two years and a substantial female presence among top collectors.
- Market Shift: The move reflects a broader trend toward gender-neutral luxury items and acknowledges the growing power of women in the $100 billion luxury watch market, projected to hit $35 billion for women’s watches alone by 2032.
- Focus on High-End Complications: Audemars Piguet plans to further emphasize high-complexity, high-priced watches, aiming for organic growth based on its historical expertise.
- Innovative Retail Experience: A new retail concept, described as a blend of store and museum, will be rolled out to engage a wider audience and showcase the brand’s heritage and craftsmanship.
The Rise of Women in the Luxury Watch Market
The luxury watch industry, traditionally male-dominated, is undergoing a significant shift. Women are rapidly surpassing men as key purchasers, and Audemars Piguet is strategically positioning itself to capitalize on this burgeoning market. CEO Ilaria Resta highlights the compelling data: “The number of women entering an Audemars Piguet store and buying a watch for themselves in the U.S. has jumped by 11% in the past two years.” This statistic, coupled with the substantial increase in female collectors, points towards a sea change in consumer behavior. Resta herself became one of the first female CEOs of a top Swiss watch brand, symbolically underscoring this evolving landscape. Market Research Future projects the women’s watch market to reach a substantial $35 billion by 2032, a considerable increase from the $28 billion valuation in 2023.
Challenging Traditional Norms
Resta’s decision to eliminate the “men’s” and “women’s” watch categorization marks a profound departure from established industry practices. Traditionally, luxury watch brands marketed smaller, more embellished timepieces to women, often emphasizing aesthetics over complex mechanical functionalities. Resta challenges this notion, stating, “I stopped defining watches as a men’s watch or women’s watch. I believe it’s wrong that the company, in a way, predefined the buyer. It’s not for us to tell women, ‘This is your watch.’” This progressive stance reflects a broader move towards gender-neutral luxury, where garments and accessories increasingly transcend conventional gender boundaries.
Strategic Positioning for Growth
Audemars Piguet’s sales surge in 2023 to $2.7 billion, as reported by Morgan Stanley, further emphasizes the timeliness of Resta’s strategy. While the luxury watch sector as a whole has seen declines, AP’s limited production (an estimated 50,000 watches annually) coupled with its high demand creates a desirable sense of exclusivity. This contrasts sharply with brands that have adopted a more mass-market approach and are experiencing more significant sales declines. Further, Resta’s focus on enhancing the brand’s presence among younger consumers and embracing a generation poised to inherit a considerable portion of the $100 trillion Great Wealth Transfer underscores a strategic foresight to secure long-term growth. This demographic’s interest in mechanical watches is steadily growing leading to projections that by 2030, 45% of women will own a mechanical watch.
Audemars Piguet’s Future: Innovation and Inclusivity
Beyond its gender-neutral marketing, Audemars Piguet is charting a course focused on innovation and enhanced customer experience. Resta’s strategic vision extends to driving the brand further upmarket, emphasizing the development of intricate, high-priced watches. “Our mission is really shifting from really quantity to higher end,” she explains, “We will grow organically, but we will also increase the complications in our watches. We were born as a highly complicated watch, so we are going back to how we started.” This return to the brand’s heritage, focusing on its most skilled watchmakers, positions Audemars Piguet for continued success in a competitive environment.
A New Retail Experience
The company is also reinventing its retail approach with new physical spaces designed to augment the existing “AP Houses.” These new locations would be more akin to museums, offering a deeper exploration of the brand’s rich history and watchmaking expertise, creating engagement with consumers who are not necessarily direct customers. This plan speaks to Resta’s passion for sharing the culture of watchmaking with broader communities, highlighting not just the products but the artistry and history behind them. “We’re trying with the new models of retail to open up the doors to people who cannot buy and they are simply interested in watchmaking to at least have an access to the brand,” Resta explains.
The Emotional Connection
At the heart of Audemars Piguet’s strategy lies an understanding of the profound emotional connection that luxury watch buyers possess with their purchases. Resta underscores this point, stating, “Yes, we sell time pieces that are extremely precious, extremely complex to sell. But what we really sell is an emotion, we sell interaction, we sell intimacy to our clients.” The detailed craftsmanship, the stories behind each watch, and the heritage of the brand – all these elements contribute to creating a tangible emotional bond between the owner and the timepiece. “When you hear the stories of how they made that watch, how it ultimately got to your wrist, you cannot help but look at your watch as a gift of love, respect and obsession with detail, of someone who spent months or years making that watch for your wrist,” she adds. This emphasis on emotionality is key to Audemars Piguet’s continued success in the competitive high luxury market.
In conclusion, Audemars Piguet’s strategic shift represents more than just a marketing adjustment; it signals a profound understanding of the evolving luxury market and a bold commitment to inclusivity. By empowering women as key players, focusing on the creation of highly complicated watches, and developing novel retail experiences, Audemars Piguet is not simply adapting to change, but shaping its future as a pioneer in the luxury watch industry.
