AP to consolidate sales channel to direct sales

[benlee]

I guess this has been open secret for a while but now they have made it official I guess.

https://in.reuters.com/article/watch...-idINL5N1VS4IR

Just sharing.

[tyler1980]

we have all seen it coming, however playing that card 3-5 years early and what is a current AD's incentive to push or try to develop the brand in the interim? none

If i was an AD there is no way i would steer my customers to something i wouldn't sell in a few years. What if my customer liked it? Then they would shop elsewhere.

No sense whatsoever... the making it official part, not the overall strategy, but i dont really like that either however i can understand it.

[ragsk]

Agree with that. Why make it official policy 3 to 5 years early? Big retailers probably will align away from AP and push other brands more.

Maybe they all know it’s coming anyway...

[tyler1980]

Originally Posted by ragsk

Agree with that. Why make it official policy 3 to 5 years early? Big retailers probably will align away from AP and push other brands more.

Maybe they all know it’s coming anyway...

thinking its coming and knowing its coming is different. I suspect a lot were worried it might happen, but now they just might abandon ship. AP was making AD specific LE's last year (not sure about this year) so it was some mixed messaging so they probably all didn't know for sure.

[PJ S]

Originally Posted by tyler1980

we have all seen it coming, however playing that card 3-5 years early and what is a current AD's incentive to push or try to develop the brand in the interim? none

If i was an AD there is no way i would steer my customers to something i wouldn't sell in a few years. What if my customer liked it? Then they would shop elsewhere.

No sense whatsoever... the making it official part, not the overall strategy, but i dont really like that either however i can understand it.

Contracts come and go, so the motivation for an AD with a current contract is to make hay whilst the sun shines – in other words, profit generation.
It’s for them to steer their existing clientele towards the brands whom they will have renewed contracts with, and there’s absolutely no guarantee that they aren’t already shopping elsewhere for a brand that particular AD doesn’t stock.

You’re tarring others with the same brush as yourself, which is why you’re making more of an issue of it than it is in reality.

[1William]

I don't think that it is a good strategy to announce before you are ready.

[marc12]

My AD was telling me they had an idea this was coming, because AP hasn’t sent them anything in 2 years almost. It’s a real crap way to treat your distributors

[SMD]

Originally Posted by ragsk

Agree with that. Why make it official policy 3 to 5 years early? Big retailers probably will align away from AP and push other brands more.

Maybe they all know it’s coming anyway...

My guess is whatever contracts they have have a notice period if they are going to be canceled (of they have contracts for a fixed term that coincides with 3-5 years). Its not like you can just willy nilly terminate a dealer contract without cause.

[V25V]

Originally Posted by SMD

My guess is whatever contracts they have have a notice period if they are going to be canceled (of they have contracts for a fixed term that coincides with 3-5 years). Its not like you can just willy nilly terminate a dealer contract without cause.

Unless the contract says they can.....

[SMD]

Originally Posted by V25V

Unless the contract says they can.....

What am I supposed to read?

[V25V]

Originally Posted by SMD

What am I supposed to read?

Sorry, I didn't mean for you to read. . I just meant if the contract was written in a way where AP could pull out whenever they wanted, and the AD agrees to that, then they could. And if I'm an AD, I'm not sure I wouldn't agree to such a contract just to carry the brand.


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[wiswrist]

I assume AP thinks most of their customers follow the brand. So if your local AD no longer carries AP, you'll still want one and will purchase it some other way. For now this seems a little premature as there are not boutiques local to many people but once they being e-commerce into the picture it won't be a problem at all.

[mobster600]

This is going to hurt small jewlery stores. AP is a significant brand to have retail rights to. People will lose jobs, not that we care but that will happen.

[daveo5]

All for direct sales. I don’t need a middle person to advise me on a watch purchase. If it means lower cost (Ha, ha), great.



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[tyler1980]

Originally Posted by SMD

My guess is whatever contracts they have have a notice period if they are going to be canceled (of they have contracts for a fixed term that coincides with 3-5 years). Its not like you can just willy nilly terminate a dealer contract without cause.

My AD got close to a year notice. Effective December of this year and for all of their locations... London, NY etc. .

They have had AP non prominently displayed since they got notice. They moved them from the front window immediately. Moved them again recently when they started pushing GP.

IMO knowing the end is coming absolutely has an effect on what they decide to sell hard, suggest to clients, etc.

[SMD]

Originally Posted by tyler1980

My AD got close to a year notice. Effective December of this year and for all of their locations... London, NY etc. .

They have had AP non prominently displayed since they got notice. They moved them from the front window immediately. Moved them again recently when they started pushing GP.

IMO knowing the end is coming absolutely has an effect on what they decide to sell hard, suggest to clients, etc.

This also goes hand in hand with not getting access to pieces that people want to buy. AP won’t allocate the hard to get pieces to someone they are terminating so the AD won’t push very hard to move undesirable pieces. Most ADs saw this coming a mile away.

[Mr.WorldTimer]

The amount of boutique only pieces they have... it was only a matter of time. After I read about this, I went looking for Patek's standpoint on this issue and I think they have a good point AP is glossing over. AD's know their local market better than any company based in Swiss ever will. Not only do they know how to deal with their community but have also built up a stronger customer base over many years. The one good thing AP have implemented with this new change is the registration system to extend warranty. At least this way, it does not matter where you shop so much (at least comparatively to before), because all your purchases are registered on a centralised system.

[ragsk]

Originally Posted by tyler1980

My AD got close to a year notice. Effective December of this year and for all of their locations... London, NY etc. .

They have had AP non prominently displayed since they got notice. They moved them from the front window immediately. Moved them again recently when they started pushing GP.

IMO knowing the end is coming absolutely has an effect on what they decide to sell hard, suggest to clients, etc.

I know who you are referring too. They don’t have AP watches displayed anywhere now I don’t think. About 4 months ago they only had 3 on display in an obscure corner before you go inside but it is not a front of shop window location. I think they have known for a while that this was coming. They however do push Patek and Rolex the most and likely always did. They are a great prestigious dealer.

The flip side is that certainly the London branch is about 30 steps away from the AP lounge. So I don’t think AP need them given locations so it was a logical one to cull.

[tyler1980]

Originally Posted by ragsk

I know who you are referring too. They don’t have AP watches displayed anywhere now I don’t think. About 4 months ago they only had 3 on display in an obscure corner before you go inside but it is not a front of shop window location. I think they have known for a while that this was coming. They however do push Patek and Rolex the most and likely always did. They are a great prestigious dealer.

The flip side is that certainly the London branch is about 30 steps away from the AP lounge. So I don’t think AP need them given locations so it was a logical one to cull.

yeah. Not making a judgement on AP's business decision, just that in the interim it gets a bit weird. AD's giving up isnt good for anyone.

I always know what i want to buy but most dont. I remember the JLC my wife has was suggested to her by my AD. He pushed it, she liked it, and she bought it. I know nothing about women's watches so i wasn't much help. Its a great watch, but she didn't discover it by herself. To me thats how most sales probably go down, and what brand is getting pushed does matter.

[crazymcmichael]

Would it hurt resale value too?? I guess might be more easy to aquire the piece you'd like than?

[uniqueMR]

[mobster600]

Wont this be the only brand to go with out AD's? No other watch brand does this currently.

AND.....there is no way AP is going to have as many locations as there are AD's

How can this be a good thing for visibility and accessibility?


I guess I shouldnt second guess AP, they probably know a thing or two more then I do on this...LOL

[OH2004]

I'm disappointed with AP and RM on this move. ADs are the ones that helped them get where they are. Greed is going to kill these brands. Like Stephen Covey said: balance between Production and Production Capacity is a winning formula. AP is killing the production capacity. I for one started buying more Patek and Rolex more recently. Relationship with my AD is more important than one brand. Not looking to add any AP or RM at this point.

[HK Islandboy]

Originally Posted by mobster600

Wont this be the only brand to go with out AD's? No other watch brand does this currently.

AND.....there is no way AP is going to have as many locations as there are AD's

How can this be a good thing for visibility and accessibility?


I guess I shouldnt second guess AP, they probably know a thing or two more then I do on this...LOL

I am somewhat surprised that they aren’t taking a dual approach - lounges/boutiques for major markets where there are a concentration of customers and ADs to promote the brand in locations/counties without sufficient critical mass of clients for a boutique. For example, will Canada or Australia have a boutique, or will clients there need to fly to NY/LA or Singapore - and have the “fun” of dealing with customs clearance for any pieces they buy when they head home.

[Ichiran]

Not sure whether this is a good way for AP to move forward. People build relationship with AD because they carry a variety of brands, and having a relationship would enable them access to all the popular models of these brands, particularly Rolex and Patek.

I get that some people only like AP, but most people I know enjoy multiple watch brands. I find it tiresome to build relationship across different watch boutiques if that is the way forward (I think and hope not).

[Gh0st0]

Inquired to my AD on this, curious how it’ll affect my incoming piece.

[Mr.WorldTimer]

Originally Posted by Ichiran

Not sure whether this is a good way for AP to move forward. People build relationship with AD because they carry a variety of brands, and having a relationship would enable them access to all the popular models of these brands, particularly Rolex and Patek.

I get that some people only like AP, but most people I know enjoy multiple watch brands. I find it tiresome to build relationship across different watch boutiques if that is the way forward (I think and hope not).

Half of AP's catalogue are boutique only anyway. Does it make such a massive difference for serious collectors of AP? Anyone really getting into AP probably have blue dial RO dreams. I understand a lot of the more passive collectors get burnt, and those who chose AD over boutique before everything started becoming boutique only. (FYI I think this is a bad move but I'm not convinced it will seriously affect the brand).

[Mr.WorldTimer]

Originally Posted by mobster600

Wont this be the only brand to go with out AD's? No other watch brand does this currently.

AND.....there is no way AP is going to have as many locations as there are AD's

How can this be a good thing for visibility and accessibility?


I guess I shouldnt second guess AP, they probably know a thing or two more then I do on this...LOL

Mr. Stern said something very interesting on his approach to AD's vs boutique only. He argues that AD's have spent years forging strong connections with their local community. They understand their environment better than any multi-national company ever would. I am inclined to follow his POV. So needless to say Patek will not be following suit, at least anytime in the foreseeable future.

[singe89]

What’s worse telling ADs that AP is going direct or Rolex mandating that large ADs build out mini boutiques in their stores to keep AD status? Then pulling AD status from surrounding stores that didn’t want to spend the $$$.

I don’t mind APs strategy but I don’t like you have to basically start over with your purchase status. I do like the value retention and when AP gets into the secondary market I would much prefer buying used pieces from them.

I also think ADs are less necessary with the rise of social media and online advertising. I’m sure many of us have purchased watches over the internet. If AP can create a premium online experience while also having boutiques, lounges and events then they will be successful. AP didn’t have any traction in my local area 10 years ago. With the rise of social media they are now very popular not because of the 1 AD we had that never had the good APs.

[V25V]

What if there is no boutique in your area? Have to travel to buy one? Alternative is you are relegated to grays, no? Here in the DC area, we only had one AD who carried AP and no longer does. So is the plan to open more boutiques?


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