AP to consolidate sales channel to direct sales

[Burlington]

Guess it’s easier done when you only have 40,000 pieces a year to sell.

Will be interesting how it works out for them once they begin to ramp that number up.

[benlee]

AP is still selling very well despite already cutting off many ADs so they must be doing something right. Selling direct means better revenue for AP while controlling distribution and eliminating discounting helps to boast value-retention which is good for AP owners.

In time to come, I think they will setup boutiques in the 2nd tier cities as well. Right now it seems serious AP collectors have no problem to travel to buy the watches from these boutiques. They are not like Rolex that need to sell one million watches and hence need to have a lot of distribution points. AP doesn't just want to sell a watch but also an experience.

PP is also going into direct sales in a limited way via their salons. Some of the PP Super Collectors are already Salon direct customers.

[Gh0st0]

Originally Posted by 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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My issue, solution is to network and build a relationship through anyone you may know or possibly through here.

[Wahlberg]

How open will AP be on their website if I decide to buy a watch that is sought after (15202ST or something).

What about returns?

1. This watch is not available.
2. You will be contacted by our concierce.
3. Sign up for our wait list.

[R!$]

A brave and bold step

[eal15]

Originally Posted by HK Islandboy

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.

Here here! I’ve developed a good relationship with some AP folks. I purchase when traveling and those APNA folks set me up with the boutique staff for sales or service. I’m in the Toronto area but even service is a pain. The only AD I can’t stand and have had questionable dealings with them since they carried Panerai a decade and a half ago. Plus they scratched my AP, which they offered to polish out. Obviously I went back to AP for that. I so want a boutique in Toronto. Even for strap changes every few months or so. I just remembered the AF does do free strap changes but afterwards I was at the Ottawa service location (an example of a non AP location that clearly does all the proper training) and he said the AD over tightened the screws. Anyway, again, I long for a boutique. I formed a great relationship with the new Panerai boutique in Toronto as well.


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[tyler1980]

Originally Posted by benlee

AP is still selling very well despite already cutting off many ADs so they must be doing something right. Selling direct means better revenue for AP while controlling distribution and eliminating discounting helps to boast value-retention which is good for AP owners.

In time to come, I think they will setup boutiques in the 2nd tier cities as well. Right now it seems serious AP collectors have no problem to travel to buy the watches from these boutiques. They are not like Rolex that need to sell one million watches and hence need to have a lot of distribution points. AP doesn't just want to sell a watch but also an experience.

PP is also going into direct sales in a limited way via their salons. Some of the PP Super Collectors are already Salon direct customers.

its a reverse mass market strategy and that is OK. Becoming a boutique brand (literally) is probably what purists want anyway. I still think its strange with the mass market type reach they go for with their advertisements and ambassadors and their embracing of pop culture (LeBron James launching the anniversary offshore), while at the same time shrinking the footprint to make it more obscure. So for me its more just not really getting what the plan is, but maybe im not supposed to get it.

I would have no issue flying to get a watch (from any brand) that i really wanted. So no issues with that. But people willing to travel to a boutique probably didn't get the idea to buy from watching a golf tournament or seeing an advertisement in a magazine. IMO these are high information buyers who know the brand and know what they want.

The biggest positive to me is solving the discount problem. So thats great as chasing discounts really makes the hobby less fun when you are also chasing watches. Everyone on a level playing field and no one feels like they have to shop around to avoid overpaying. But unfortunately, the biggest discounting AD's are the last ones standing because they move so much product and the ones who held the line on pricing seem to be getting the ax first, ironic. Eventually they are all going anyway though.

[tng11]

Originally Posted by eal15

Here here! I’ve developed a good relationship with some AP folks. I purchase when traveling and those APNA folks set me up with the boutique staff for sales or service. I’m in the Toronto area but even service is a pain. The only AD I can’t stand and have had questionable dealings with them since they carried Panerai a decade and a half ago. Plus they scratched my AP, which they offered to polish out. Obviously I went back to AP for that. I so want a boutique in Toronto. Even for strap changes every few months or so. I just remembered the AF does do free strap changes but afterwards I was at the Ottawa service location (an example of a non AP location that clearly does all the proper training) and he said the AD over tightened the screws. Anyway, again, I long for a boutique. I formed a great relationship with the new Panerai boutique in Toronto as well.


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Well, good news for you, there is an AP boutique in Toronto opening in the Fall. In all likelihood it means the AD is probably losing their AP AD status, their display I've heard is mostly just quartz ladies RO and Millenaries. Good riddance I say.

[eal15]

Originally Posted by tng11

Well, good news for you, there is an AP boutique in Toronto opening in the Fall. In all likelihood it means the AD is probably losing their AP AD status, their display I've heard is mostly just quartz ladies RO and Millenaries. Good riddance I say.

thanks for the awesome news! They have some Ro’s and Roo’s at times but it’s pretty bare for sure. I’ll be contacting my contact shortly for details lol. Also, not having a boutique in the area is one of the reasons I don’t wear my AP daily since my last service. That’s about to change. Now I can pick up another and wear my diver daily.


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[GB-man]

Originally Posted by tng11

Well, good news for you, there is an AP boutique in Toronto opening in the Fall. In all likelihood it means the AD is probably losing their AP AD status, their display I've heard is mostly just quartz ladies RO and Millenaries. Good riddance I say.

Thank you jesus. Hopefully the pricing is in line with the states because the bloor street stranglers had msrps in the clouds.

[eal15]

Originally Posted by GB-man

Thank you jesus. Hopefully the pricing is in line with the states because the bloor street stranglers had msrps in the clouds.

Well clearly I know you’ve been there! I refuse to give them my money.


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[benlee]

Originally Posted by tyler1980

its a reverse mass market strategy and that is OK. Becoming a boutique brand (literally) is probably what purists want anyway. I still think its strange with the mass market type reach they go for with their advertisements and ambassadors and their embracing of pop culture (LeBron James launching the anniversary offshore), while at the same time shrinking the footprint to make it more obscure. So for me its more just not really getting what the plan is, but maybe im not supposed to get it.

It actually make sense. All the advertising, using ambassadors to promote the brand the intention is not to drive more sales ( as in selling more pieces ) but to build the image of desirability. By limiting supply at the same time, AP maintain exclusiveness for the timepiece and build hype, which in turns create more desirability because people always want what not easy to get.

[tng11]

Originally Posted by GB-man

Thank you jesus. Hopefully the pricing is in line with the states because the bloor street stranglers had msrps in the clouds.

One fellow member tells me they are quoting $26,000 CAD (around $20K USD) as the MSRP for the 15400, and of course there's no discount. They're off their rocker! There hasn't been duty on Swiss watches for years!

[RolexZen]

Originally Posted by GB-man

Thank you jesus. Hopefully the pricing is in line with the states because the bloor street stranglers had msrps in the clouds.

MSRP is MSRP, that is set by AP. AD can choose not to follow that suggestion, but it doesn't change the MSRP. As it says on AP's website, "Non-binding public price..."

[Doctock]

Originally Posted by singe89

I do like the value retention and when AP gets into the secondary market I would much prefer buying used pieces from them.

I completely agree with this sentiment.
The ability to buy a pre-owned AP directly from AP may be worth the up-charge.
A well run on-line presence, that might even list global availability that could then be delivered to your most proximate boutique, would certainly be nice.

[eal15]

Originally Posted by Doctock

I completely agree with this sentiment.

The ability to buy a pre-owned AP directly from AP may be worth the up-charge.

A well run on-line presence, that might even list global availability that could then be delivered to your most proximate boutique, would certainly be nice.

I’m also so waiting for this too!


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[Mr.WorldTimer]

Originally Posted by benlee

AP is still selling very well despite already cutting off many ADs so they must be doing something right. Selling direct means better revenue for AP while controlling distribution and eliminating discounting helps to boast value-retention which is good for AP owners.

In time to come, I think they will setup boutiques in the 2nd tier cities as well. Right now it seems serious AP collectors have no problem to travel to buy the watches from these boutiques. They are not like Rolex that need to sell one million watches and hence need to have a lot of distribution points. AP doesn't just want to sell a watch but also an experience.

PP is also going into direct sales in a limited way via their salons. Some of the PP Super Collectors are already Salon direct customers.

I wouldn't say PP is "going into sales". They've had three salons for quite sometime now. I think maybe at most their Chinese Maisons are the biggest step forward (i believe this is still a collaboration with locals, namely the Melcher group, not quite sure how this is exactly set-up). However Thierry has stated publicly he has trust in the knowledge of ADs regarding their local client base and how to manage accordingly. Thus he does not want to upset this balance and one can infer that perhaps he is suggesting a strategy of centralisation of selling points like AP is committed to, would be wrong for PP and their vision of global distribution... at least for now

[SMD]

The issue I have with AP is that they do not track your purchases even across their own boutique network. So you have to consistently buy from the same location or it doesn't matter.

[RolexZen]

Originally Posted by SMD

The issue I have with AP is that they do not track your purchases even across their own boutique network. So you have to consistently buy from the same location or it doesn't matter.

While I had a deposit down with the Bal Harbour Boutique, I visited the Liat Tower Boutique in Singapore. When I signed their guest register, the Sales Associate mentioned on her own, “Yes, I see you have a deposit down for a 2018 allocation!” and she even confirmed the estimated quarter of arrival. So they definitely do share information between boutiques.

[benlee]

They do share information, but I think when come to allocation of popular pieces, individual boutique will naturally allocate to their own preferred client. So the best way going forward is pick one boutique and stick to it.

[SMD]

Originally Posted by RolexZen

While I had a deposit down with the Bal Harbour Boutique, I visited the Liat Tower Boutique in Singapore. When I signed their guest register, the Sales Associate mentioned on her own, “Yes, I see you have a deposit down for a 2018 allocation!” and she even confirmed the estimated quarter of arrival. So they definitely do share information between boutiques.

I have purchased several in Japan but NYC has no record and only seems to look at what you have bought from them. And of course they do not track sales by ADs, unlike PP.

[SC11]

Originally Posted by SMD

I have purchased several in Japan but NYC has no record and only seems to look at what you have bought from them. And of course they do not track sales by ADs, unlike PP.

AP UK logged my 407st purchase onto my AP online account so it was instantly listed under ‘my watches’ I didn’t have to register it myself like I did with my TI44 they did it for me.

Now thinking about it they didn’t even ask me if I had an account so must of just looked up my name?!

[SMD]

Originally Posted by SC11

AP UK logged my 407st purchase onto my AP online account so it was instantly listed under ‘my watches’ I didn’t have to register it myself like I did with my TI44 they did it for me.

Now thinking about it they didn’t even ask me if I had an account so must of just looked up my name?!

My online account has them, but they were put there by me. But for purposes of determining how much I have spent with AP, nada. Perhaps they are better now.

[SC11]

Originally Posted by SMD

My online account has them, but they were put there by me. But for purposes of determining how much I have spent with AP, nada. Perhaps they are better now.

Don’t know, all I mean is they had the ability to add the watch to my account so must be able to see the watches you have registered?!

Maybe it’s more down to the individual boutique?

[GB-man]

Originally Posted by tng11

One fellow member tells me they are quoting $26,000 CAD (around $20K USD) as the MSRP for the 15400, and of course there's no discount. They're off their rocker! There hasn't been duty on Swiss watches for years!

Yes I could never make a deal with them even when they were happy to negotiate a few years back. The starting price is off compared to the US.

Originally Posted by RolexZen

MSRP is MSRP, that is set by AP. AD can choose not to follow that suggestion, but it doesn't change the MSRP. As it says on AP's website, "Non-binding public price..."

Canada is odd in this regard. APs seemed to just flat out be priced higher relative to US pricing and PP seems to be quoted based on current exchange from CH if I’m not mistaken.

[SUPERDOC]

Originally Posted by tng11

One fellow member tells me they are quoting $26,000 CAD (around $20K USD) as the MSRP for the 15400, and of course there's no discount. They're off their rocker! There hasn't been duty on Swiss watches for years!

26k (+HST) for the 15400 (which they don't have)

and 36k (+HST) for the 26331 (MSRP 24,300 USD) - even exchange + duty/HST at the border favours buying in the US

[superstarmar]

Originally Posted by R!$

A brave and bold step

Controlling msrp pricing and flipping but at the same rate
a whirlwind of customer service issues that more than likely
will arise and possibly hurt their brand image ...

I say go for it and steer potential customers elsewhere....

[eal15]

: ( so after being told there will be a an AP boutique coming this fall to Toronto, I emailed my AP contacts for info. I received a few emails back only stating which folks could help and who wouldn’t be able to due to simply not in that position. Today I received a phone call from AP, I was shocked of who actually called but it was confirmed that there will be no AP boutique in Toronto. I believe they said Canada but definitely not the short to medium term. Also, it was confirmed that They were closing down the AD dealer network (those are my words). Bummer! It was a positive call though. It wasn’t negative at all. This brand has been awesome in terms of anyone I’ve dealt with at any location in the past. The local AD has done nothing in the past with this brand or others to make me want to shop there. Recently The local Panerai boutique experiences have been very good as well.


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[79280_116520]

AP is greedy and arrogant in biting the hands that fed them via. the AD channel. I recently emailed kindly to request a catalogue and they replied telling me that they do not mail customers/prospectives catalogues anymore. The only solution they gave me was to "physically" visit an AP dealer who was 400+ miles away just for a catalogue.

Looks like my next watch will come from Patek Philippe since their level of arrogance isn't as extreme compared to AP.

[RolexZen]

Originally Posted by 79280_116520

AP is greedy and arrogant in biting the hands that fed them via. the AD channel. I recently emailed kindly to request a catalogue and they replied telling me that they do not mail customers/prospectives catalogues anymore. The only solution they gave me was to "physically" visit an AP dealer who was 400+ miles away just for a catalogue.

Looks like my next watch will come from Patek Philippe since their level of arrogance isn't as extreme compared to AP.

Lol.