AP's New CEO from outside the horological industry.

[Napaswar]

Just read the news from Miss Tweed today and wondering is there any case on big brand history especially Holy Trinity got the CEO from outside the horological industry? Interesting to see the future of AP after FHB era.
What do you guys think?

Source: https://www.instagram.com/p/CrYkSFStA3v/

[LUDA]

Can you share those news? Can't find anything.

[AEV]

"Audemars Piguet, one of the world’s biggest watch brands, is set to appoint as its new CEO a Swiss woman from outside the horological industry, industry sources have said. Her identity is not yet known. The watchmaker has declined to comment on such details regarding her profile. However, if confirmed, her nomination would mean that Audemars Piguet’s family owners thought her ability to lead and build the brand further was more important than watchmaking expertise and experience. Audemars Piguet is not alone. Many head-hunters and human resources directors believe that hiring from outside the industry can bring fresh ideas and energy, luxury executives said at Miss Tweed’s Luxury at the Summit conference on leadership in Val d’Isère, the French Alps, held in early April.''

This is what I was able to find.
I recall in a recent interview FHB said he would like his successor to be a woman.

[macrowatch]

Don't need watch making background if your top OKR is to complete a sale! (90% joking, 10% not)

[malba2366]

Originally Posted by macrowatch

Don't need watch making background if your top OKR is to complete a sale! (90% joking, 10% not)

FHB didn't have a watch making background and he did a just about perfect job at AP...if the brand wants to continue being on that forefront of horology and popular culture they can't have some stodgy Swiss watchmaker running the place.

[Reign]

Disappointing that it’s coming outside of AP. Some of us have many years of relationships built with corporate and it’s almost like hitting the do over button


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[messikens]

Originally Posted by Reign

Disappointing that it’s coming outside of AP. Some of us have many years of relationships built with corporate and it’s almost like hitting the do over button


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Care to elaborate?

Not that I have relationships with AP corporate but how are you on some type of advisory council for FHB where you get to recommend adjustments to the corporate AP strategy?

Or is this about watch allocation approvals that I doubt need to go by the CEO (unless you're Arnold or John M)?!

[macrowatch]

Originally Posted by malba2366

FHB didn't have a watch making background and he did a just about perfect job at AP...if the brand wants to continue being on that forefront of horology and popular culture they can't have some stodgy Swiss watchmaker running the place.

Sorry, poor choice of words. I meant outside industry, not literally watch maker.

@reign, gotta be careful who you back in Fame of Thrones!

[VogelPhoenix]

Regardless of going with an insider or someone from outside the industry, it's going to be an interesting time for AP. They're more or less committed to increasing production and the boutique/house concept, so can't afford to coast.

[jokerjacket]

Originally Posted by VogelPhoenix

Regardless of going with an insider or someone from outside the industry, it's going to be an interesting time for AP. They're more or less committed to increasing production and the boutique/house concept, so can't afford to coast.

Are they planning to increase production that much? Thought they were staying similar production ranges?

[RTG]

Originally Posted by AEV

"Audemars Piguet, one of the world’s biggest watch brands, is set to appoint as its new CEO a Swiss woman from outside the horological industry,

I recall in a recent interview FHB said he would like his successor to be a woman.

Tina Turner? She’s a swiss citizen and I would dig Simply the Best playing on a loop in every AP boutique. Would have improved todays AP visit substantially.

Me “Starwheel”
Sales guy “LOL good luck”

He literally laughed out loud. Music would have helped.

[psm11]

Originally Posted by jokerjacket

Are they planning to increase production that much? Thought they were staying similar production ranges?

I heard they are shooting to get to 45-50k units a year.

[malba2366]

Originally Posted by psm11

I heard they are shooting to get to 45-50k units a year.

They did 50K last year, from what I recall reading they will increase 5% yearly and are building out infrastructure to be able to make 70K units a year.

[VogelPhoenix]

Originally Posted by jokerjacket

Are they planning to increase production that much? Thought they were staying similar production ranges?

"“The industrial structure that we are currently building could bring us to 70,000 watches, but we are not in a rush...... Mr Bennahmias says in an interview with Switzerland’s Luxury Tribune."

2022 was 50k, 2023 plan is apparently 51k. New factory is supposed to be become available in a few years.

[psm11]

So, I guess the real question is whether any of these increases will make it easier for new buyers to get a RO from the boutique. So far, it doesn't seem to have made much difference.

Waiting a few years w/ AP could potentially mean finally being able to get a basic RO (like a 15510) at retail, but retail being at or near $40k (given the multiple price increases per year).

[AEV]

AP will gradually start increasing production and it will take several years till they can reach output of 70,000
Whether that would be enough or not, time will tell. If they keep doing what they have been doing in the last several years in terms of new releases, demand will still be higher than supply.
They could sell 80,000 watches today, these are figures FHB has been mentioning in interviews.

[AEV]

Originally Posted by RTG

Tina Turner? She’s a swiss citizen and I would dig Simply the Best playing on a loop in every AP boutique. Would have improved todays AP visit substantially.

Me “Starwheel”
Sales guy “LOL good luck”

He literally laughed out loud. Music would have helped.

Jokes aside, I would have expected an internal candidate.
FHB impact has been instrumental and these are big shoes to fill.

Let's see. It could be that this source is not reliable at all.

[VogelPhoenix]

Originally Posted by AEV

Jokes aside, I would have expected an internal candidate.
FHB impact has been instrumental and these are big shoes to fill.

Let's see. It could be that this source is not reliable at all.

The IG post is not particularly specific, but Miss Tweed does have industry/AP connections (mixed with a lot of self-promotion).

[drhk]

Originally Posted by malba2366

FHB didn't have a watch making background and he did a just about perfect job at AP...if the brand wants to continue being on that forefront of horology and popular culture they can't have some stodgy Swiss watchmaker running the place.

FHB did not have a watch making background? He started to work for AP about 30(!) years ago, so had been working for them for 20 years before he finally became CEO. Should have been enough watch making background, I guess.

[rolexandlange]

I'll shoot my shot, it's FHB's daughter.

[gretch6364]

No more info yet?

[kb866]

I hope they don't try to ramp up production or go the way of Vacheron and sell out to Richemont or LVMH. I think that would be brand suicide.

[VogelPhoenix]

Originally Posted by kb866

I hope they don't try to ramp up production or go the way of Vacheron and sell out to Richemont or LVMH. I think that would be brand suicide.

Well, AP is not building the new factory to lower production. But I agree, a sale to one of the big conglomerates would dampen my enthusiasm.

[Vince_76]

AP pushes the envelope so very interested with what they do.

I wouldn’t be surprised if it’s an exec from the media/music space, or maybe another luxury good/experiential product type

[Henrimontgomery]

Let’s be honest here. Without RO AP is nothing. I really don’t have faith in the brand as RO interest starts to dwindle.

[Reign]

Originally Posted by kb866

I hope they don't try to ramp up production or go the way of Vacheron and sell out to Richemont or LVMH. I think that would be brand suicide.

I would stop buying AP and unload everything


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[AEV]

Originally Posted by kb866

I hope they don't try to ramp up production or go the way of Vacheron and sell out to Richemont or LVMH. I think that would be brand suicide.

That's my biggest concern with J. Audemars stepping down from the board, and M.Friedman and Francois leaving the company.
But all of them are in a way retiring from AP after a very long tenure.
Plus O. Audemars is still in the board.

Francois has been saying that the increase in production will be very gradual as they can't ramp up, build new facilities and hire watchmakers so fast. And that the board has told him that they want the company to be around in the next 150 years as well.

[brandrea]

I’m not sure how common it is within the watch industry …

Here, they hired an equipment dealer executive to run one of our chartered banks … we will see how it works out

https://financialpost.com/fp-finance...-scott-thomson

[malba2366]

Originally Posted by kb866

I hope they don't try to ramp up production or go the way of Vacheron and sell out to Richemont or LVMH. I think that would be brand suicide.

VC and ALS seem to be doing quite well under Richemont ownership. Both Richemont and LVMH know know to manage luxury brands so It wouldn't be negative for the brand, except in the eye of watch snobs.

[macrowatch]

Originally Posted by Reign

I would stop buying AP and unload everything


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Would you really not keep at least one? Genuine question.

@malba2366 as for LVMH I have no doubt to their brand management chops. Most recently with Tiffany and Rimowa slightly before that, all are being managed superbly welll. Richemont…eh…mixed bag right? Because you also have the Panerai score card mixed in too. Either way, they brand they build is not the brand I chose to associate with originally. So I’d still be mostly out.