Good evening everyone.
This time, we will again discuss which group each brand belongs to. We would like to talk about the "Correlation Diagram of Luxury Watch Brands."
Last time, we explained the world's three largest groups , which are home to some of the industry's leading brands .
▶▶▶～It's too late to ask now!! "The Relationship Diagram of Luxury Watch Brands" [Part 1]～
If you haven't seen it yet, I think it will be easier to understand if you watch it before reading this article.
In the second part, we will mainly introduce independent brands and the Academy of Independent Watchmakers (AHCI) , and also give a brief explanation of future market trends in the watch industry, so please enjoy.
Correlation diagram of luxury watch brands as of 2022
First, a quick recap of the last article. The watch industry can be roughly divided into three groups: the " Big Three Global Groups " which have multiple brands, " Independent Brands ," and the " Academy of Independent Watchmakers (AHCI) ," which is made up of watchmakers who do not belong to a company.
Independent Brands
As the name suggests, an independent brand is an independent brand that is not under the umbrella of a corporate group. If you look at the correlation diagram, you can see that popular brands such as Rolex, Patek Philippe, and Audemars Piguet are managed independently and do not belong to any group. Not being under the umbrella of a corporate group has the advantage of allowing them to make watches freely, but since all work involved in watch manufacturing must basically be completed in-house, it is said that only a limited number of brands can manage their watches in this way. Here we will pick out some particularly famous brands.
[ Rolex ]
Among the independent brands, the most well-known brand is undoubtedly Rolex. Despite being divided into two brands, Rolex and Tudor, they are both extremely popular.
Currently, Rolex is gradually transitioning to the newly developed " Cal.3200" movement. As mentioned above, independent brands, unlike corporate groups, cannot receive movement parts from other manufacturers, so they are often operated as manufactures.
Rolex does not disclose its sales, so its detailed sales figures are unknown. However, a survey conducted jointly by the global financial institution group Morgan Stanley and Luxe Consult, a consulting firm specializing in the watch industry, revealed its estimated sales figures. According to the survey, the company's sales figures for 2021 are estimated at 8 billion Swiss francs (approximately 1.623 trillion yen) , with an overwhelming market share of 28.8% .
[ Patek Philippe ]
Patek Philippe is one of the world's three biggest watch brands. Founded in 1839 , it is a long-established company that offers popular models such as the Nautilus, Aquanaut, and Calatrava.
Until now, as an independent brand, it boasted sales second only to Rolex, but in 2021 it was overtaken by Audemars Piguet for the first time, which became a big topic. However, it still has an overwhelming sales figure of 1.53 billion Swiss francs (approximately 203.1 billion yen) , firmly establishing its position as a long-established brand.
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[ Audemars Piguet ]
Audemars Piguet is one of the world's three biggest watch brands, along with Patek Philippe and Vacheron Constantin. The Royal Oak, the leading luxury sports watch (commonly known as Raguspo), is a firm favourite among many watch enthusiasts.
As mentioned earlier, it was a hot topic that the company's sales surpassed those of Patek Philippe for the first time in 2021. The company's sales were 1.58 billion Swiss francs (approximately 209.6 billion yen) . This year marks the 50th anniversary of the birth of the Royal Oak, so it may be an even more record-breaking year.
[ Richard Mille ]
Richard Mille was born like a comet in 2001 , based on the concept of "extreme watches" that go beyond luxury mechanical watches and produce only the world's highest quality watches . The brand is also known for its ultra-high-priced watches with an average price of 20 million yen. Its founder, Richard Mille, is not a watchmaker or designer, but calls himself a "watch concepter" and continues to create innovative watches. With its price range and innovative designs, it can be said that the watchmaking is possible only because it is an independent company.
With sales of 1.13 billion Swiss francs (approximately 150 billion yen) in 2021 , the company is rapidly strengthening its presence in the watch industry.
"Academy of Independent Watchmakers (AHCI)"
*Source: https://forbesjapan.com/articles/detail/39904
The Academie Independent Watchmakers (AHCI) is an international organization made up of watchmakers who do not belong to any corporate group or independent brand. It was formed in 1985 with the aim of passing on the traditions of traditional watchmaking, and its members include François Paul Journe, Svend Andersen, and Japanese artists such as Hajime Asaoka and Masahiro Kikuno.
* [Francois Paul Journe]
Only watchmakers who have been recognized for their highly advanced watchmaking skills can become members. There are many watchmakers who can make watches, but there are only a few dozen people in the world who are certified by the Academie Horlogerie Independente ( AHCI ).
What are the future market trends in the watch industry?
"ETA" 2020 problem
When talking about the future of the watch industry, it is essential to mention the movement supply issue of ETA. ETA is a manufacturer that supplies movements to many watch brands and is currently under the umbrella of the Swatch Group. The problem began in 2002 when ETA announced that it would stop supplying ébauches (semi-finished mechanical movements) to companies other than the Swatch Group in 2006. At the time, there were few manufacturers other than ETA that could supply ébauches, and many watch brands were at risk of not being able to manufacture watches. However, due to arbitration by the Swiss Federal Competition Commission and opposition from many watch brands, ETA will continue to supply ébauches until 2020.
In fact, in January 2020, supplies to companies outside the Swatch Group were temporarily suspended, but were resumed in July. This was largely due to the fact that the Swatch Group, which initially requested that supplies to companies outside the group be suspended, suddenly requested that they "want to sell to companies outside the group as well." In fact, the Swatch Group's sales in the first half of 2020 were down significantly, at 43.4% compared to the same period last year.
For now, this issue seems to have settled down for the time being, but since ETA still has a monopoly on movement manufacturing, if ETA were to stop supplying movements again in the future, it is clear that the same confusion would occur. For this reason, it is important to keep an eye on the future movements of movement manufacturers.
Tiffany is acquired by the LVMH Group.
The biggest news in the watch industry over the past few years has been the acquisition of Tiffany by the LVMH Group . The LVMH Group has a number of brands that are strong in fashion, but they have a weakness in the jewelry field. By bringing Tiffany under their umbrella, they are likely aiming to strengthen their jewelry field.
Tiffany is not only popular as a jewelry brand, but is also known as a brand that has had a major impact on the watch industry. In particular, in the watch industry, Tiffany is known as a " W name." Patek Philippe and Tiffany entered into a retail partnership in 1851 , and in 2021 they announced the collaboration model "Nautilus" to commemorate their 170th anniversary, but the response has attracted a lot of attention beyond the watch industry.
This Nautilus with a Tiffany blue dial, Ref. 5711/1A-018, was sold at Phillips, one of the world's three largest auction houses, for an astounding price of 6,503,500 dollars (approximately 737.5 million yen) .
Of course, there are also " double names" with Rolex, all of which are widely known as rare models that fans covet. With such a historical background, Tiffany was acquired by the LVMH Group , and the future relationship with Patek Philippe was in doubt, but with the appearance of the limited edition Nautilus mentioned above, the current relationship is expected to continue. But what will happen in the future? It is true that we cannot take our eyes off future developments.
summary
What did you think of the introduction to "Independent Brands" and the "Academy of Independent Watchmakers (AHCI)", as well as the explanation of future market trends in the watch industry?
If you read all the contents of the first and second parts, you will understand the framework of the watch industry as a whole, such as the fact that unexpected brands belong to the same group and the relationships between brands. In recent years, there have been many noteworthy trends and changes in the watch industry. If you keep in mind the "Relationship diagram of luxury watch brands" introduced this time, you will find watch topics more interesting.
I hope that after reading this article, you will become at least a little interested in the watch industry.
see you!!