New CEO of Audemars Piguet, Ilaria Resta, Shifts Focus from Growth to Brand Reputation and Quality

In a recent report by Business of Fashion, it has been revealed that Ilaria Resta, the newly appointed CEO of Audemars Piguet, is contemplating a significant change in the approach to the brand's growth. Rather than pursuing increased production and sales in the coming years, Resta is placing her primary emphasis on building brand reputation, ensuring product quality, and fostering innovation. Under her leadership, growth is not seen as the highest priority; instead, Resta's focus lies on establishing Audemars Piguet as a name synonymous with excellence.

 

 

Resta's main objective is not to expand production but to optimize the company's structure, which has undergone substantial growth in recent years. Contrary to speculations about preparing the business for sale, the owners have expressed a firm desire to maintain independence and autonomy.

 

Practically, Resta plans to introduce more intricate and sophisticated models at higher price points. Furthermore, she aims to increase the mark-up on the brand's leading models in the secondary market, bringing them in line with esteemed competitors such as Patek Philippe and Rolex. To accomplish this, Resta intends to engage customers directly, leverage brand image, and potentially create an artificial scarcity to enhance desirability.

 

 

While women currently comprise 25% of Audemars Piguet's direct clients, Resta believes that the concept of gender-specific watches is becoming less relevant. Consequently, the brand will introduce smaller unisex models to cater to changing consumer preferences. The Code 11.59 line, already accounting for 11% of overall sales, will also be expanded to captivate a wider customer base.

 

Photo source: Audemars Piguet

 

To help bolster profits, Audemars Piguet will prioritize sales through its own boutiques, known as AP houses, rather than relying heavily on dealer networks. Resta intends to foster stronger relationships with top clients and brand ambassadors. Collaborations will also play a vital role in expanding reach and influence, choosing partnerships based on strategic fit rather than personal preference.

 

Parallel to these strategic shifts, the luxury industry faces the persistent challenge of managing unsold inventory. Luxury conglomerates like LVMH and Kering, comprising brands such as Gucci, Balenciaga, and YSL, struggle with increasing unsold balances each year. Discarding or destroying the excess stock is deemed ecologically and socially unacceptable, and reduction in prices would undermine the brands' carefully crafted pricing policies. Managing this balance becomes an intricate task for luxury brands.

 

Given the evolving market dynamics and a cooling demand, Resta's decision to eschew aggressive production expansion may prove to be a prudent move for Audemars Piguet. Early signs of this strategic shift are already evident in the brand's latest releases. For those avidly eyeing an Audemars Piguet timepiece, now may be an opportune time to make a purchase, as prices are expected to rise noticeably in the near future.