Audemars Piguet

Welcome to the 15th edition of the Maximalist! Dive into the ultimate guide, filled with insider insights into the world of fashion, art, real estate, travel, jewelry, and horology.

The world of luxury is never boring, and this week is no exception. Let’s dive in!

Markets

Travis Scott’s Royal Oak with Audemars Piguet

Houston-born rapper Travis Scott, in collaboration with his record label Cactus Jack and Swiss watch giant Audemars Piguet, has introduced a new luxury watch: the chocolate brown Royal Oak perpetual calendar openworked "Cactus Jack" LE.

Limited to just 200 pieces and priced at $201,000, this watch marks a significant cultural moment, blending the worlds of hip-hop and high-end watchmaking. The 41mm watch features white gold hexagonal screws, a sapphire dial, and the openworked Calibre 5135, showcasing rhodium-toned components with pink-gold hues. Unique to this model are the typography of the calendar and week indications, inspired by Travis Scott's hand-drawn designs, and a distinctive moonphase design at six o'clock, featuring Cactus Jack's emblematic smiley face. Additionally, the watch is paired with a new textured calfskin leather strap and a pink gold folding clasp engraved with the signatures of both Audemars Piguet and Travis Scott.

Complementing the watch, a collection of clothing and accessories was also launched, with a portion of the profits going to a charity of Scott's choice. This collaboration is a testament to the growing intersection of hip-hop culture and Swiss watchmaking, a trend initiated in the early 2000s with Audemars Piguet's collaboration with Jay-Z. Read more →

Morgan Stanley Downgrades LVMH Amid Weakening Demand

Morgan Stanley analyst Edouard Aubin has downgraded LVMH to equal-weight after maintaining an overweight recommendation since January 2018. This shift, marking the end of a six-year period of bullishness, reflects concerns over weakening demand in the luxury sector. Aubin also reduced the price target for LVMH from €860 to €790, although this still implies a 12% potential increase over the next year. Despite this, the new target is significantly lower than the consensus target of €842.

LVMH's shares experienced a drop of up to 1.9% in Paris following this downgrade. The downgrade comes amidst a broader industry trend of deteriorating demand, likely to continue into the fourth quarter and the start of 2024. Aubin highlights the increased risk for LVMH and the luxury industry due to their heavy reliance on Chinese consumer spending.

The luxury goods sector in Europe is facing challenges due to higher interest rates and inflation impacting consumer spending. LVMH reported slower sales growth in the third quarter. This is a trend echoed by other luxury conglomerates like Kering SA and Richemont. This gloomier outlook has led other financial institutions like HSBC Holdings Plc and UBS to also cut price targets and downgrade luxury stocks, acknowledging that these stocks are not immune to recession. LVMH's stock has decreased by 23% since April's record high and has only seen a modest 2.5% increase over the year. Read more →

Richemont Won’t Inject Cash Into Farfetch

Richemont, the owner of luxury jeweler Cartier, has declared that it will not provide any financial support to the online luxury retailer Farfetch. This decision follows reports that Farfetch, which has been struggling since its New York Stock Exchange listing, is exploring the possibility of going private. Farfetch's founder, Jose Neves, is working with advisors from JP Morgan on this potential move. Richemont, which is in the process of selling its Yoox Net-A-Porter (YNAP) fashion and accessories business to Farfetch, stated it is closely monitoring the situation and reviewing its options regarding the deal. This deal, announced in August 2022, would initially give Richemont 58.5 million Farfetch shares.

Richemont emphasized that it has no financial obligations towards Farfetch and does not plan to lend or invest in the company. The Royal Bank of Canada suggested that if Farfetch delists, it might try to renegotiate or withdraw from the deal. Analysts believe that Richemont's statement indicates a distancing from Farfetch, making the transaction less likely. Richemont also confirmed that neither its divisions nor YNAP have adopted Farfetch’s platforms, maintaining their own sales platforms, which could simplify any potential disentanglement from Farfetch. The deal's future is uncertain, especially given Farfetch's financial difficulties and significant share price decline in recent months. Farfetch's decision to not announce its third-quarter results and the unreliability of previous forecasts add to the uncertainty surrounding the company's future. Read more →

Pharrell Williams Takes Louis Vuitton to Hong Kong

Pharrell Williams, Louis Vuitton's men’s creative director, showcased his second collection in Hong Kong, Pre-Fall 2024. The show, set along the Avenue of the Stars, featured a sea-themed catwalk with tropical influences in the clothing designs. This included hothouse flower prints on suits and surfboards and models wearing sliders and surf-inspired rash vests with "Vuitton" printed across them. Sailor motifs were also present, with models donning 1950s sea hats, shorts, and wide-sleeved T-shirts.

Williams himself appeared in a smart beige suit, one of the sailor hats, and rhinestone-ringed sunglasses. The choice of Hong Kong as the show's location is strategic, targeting the luxury consumer market in Asia, where luxury sales are expected to grow by 20% in 2024. The show, in partnership with the Cheng family, who own the K11 development, is seen as a major event for Hong Kong, aiming to boost its status as a key shopping destination in Asia. Read more →

Audemars Piguet: A Legacy of Mastery and Innovation

In 1875, in the heart of the Vallée de Joux, a serene and resource-rich region nestled in the Jura Mountains of Switzerland, Audemars Piguet was founded. This area, known for its profound watchmaking heritage, provided the perfect cradle for the birth of a brand that would come to symbolize innovation and craftsmanship in the world of haute horlogerie. Jules Louis Audemars and Edward Auguste Piguet, both born into families with a deep history in watchmaking, joined forces to establish a company that would push the boundaries of traditional watchmaking.

The founders of Audemars Piguet brought together a unique blend of skills and visions. Jules Audemars, an expert in creating complex watch movements, had already made a name for himself, particularly with his work for Tiffany & Co. Edward Piguet, on the other hand, specialized in the precision and regulation of watch movements, ensuring their impeccable accuracy. This synergy between the two founders was the cornerstone upon which the legacy of Audemars Piguet was built.

In the early years, Audemars Piguet quickly distinguished itself through its pioneering spirit and technical prowess. The Vallée de Joux, with its isolation and harsh winters, had fostered a community of craftsmen who turned to watchmaking during the long months indoors. This environment was conducive to meticulous and innovative watchmaking, a tradition that Audemars Piguet embraced wholeheartedly. In 1892, the brand achieved a significant milestone by creating the world's first minute repeater wristwatch, a marvel of engineering that showcased their mastery of sound and mechanics. This was soon followed by the creation of a grand complication pocket watch in 1899, which featured an array of sophisticated functions, solidifying Audemars Piguet's reputation as a creator of complex and innovative timepieces.

What sets Audemars Piguet apart in the annals of watchmaking is its continued independence. As one of the few luxury watch brands still owned by its founding families, Audemars Piguet has maintained a unique trajectory, unbound by corporate directives. This independence has allowed the brand to stay true to its original vision, nurturing traditional craftsmanship while also embracing modern technology and design.

The evolution of Audemars Piguet is not just a story of technical achievements but also a narrative of enduring values and a relentless pursuit of excellence. Audemars Piguet has remained committed to the highest standards of watchmaking, creating timepieces that are as innovative as they are beautiful. This commitment to excellence, innovation, and independence is the essence of the Audemars Piguet legacy, a legacy that continues to define the world of luxury watchmaking.

The Royal Oak

The story of the Royal Oak is a pivotal chapter in the history of Audemars Piguet, marking a revolution not just for the brand but for luxury watchmaking as a whole. Introduced in 1972 and designed by the legendary Gérald Genta, the Royal Oak was a bold departure from traditional watch design. It was the first luxury sports watch crafted from stainless steel, a material previously considered inferior to precious metals for luxury timepieces. This daring move challenged the norms of the era and redefined the parameters of luxury watchmaking.

The Royal Oak’s design was inspired by traditional diver's helmets, a concept that Genta masterfully translated into a watch. Its most distinctive feature was the octagonal bezel secured by eight visible hexagonal screws, a design choice that was both unconventional and striking. The watch's case had an integrated bracelet, creating a seamless and fluid design that was a novelty at the time. The dial of the Royal Oak was another standout element, featuring a unique "tapisserie" pattern that added depth and texture to its appearance.

The launch of the Royal Oak was met with skepticism. Its initial price point was higher than many gold watches of the time. However, the Royal Oak soon won over critics and watch enthusiasts alike, becoming a symbol of modern luxury. Its success paved the way for a new category of luxury sports watches and cemented Audemars Piguet's reputation as an innovator.

In 1993, Audemars Piguet expanded on the Royal Oak's legacy with the introduction of the Royal Oak Offshore. Designed by Emmanuel Gueit, the Offshore was a larger, more rugged version of the original Royal Oak, catering to a growing demand for oversized watches. It retained the core design elements of the Royal Oak but introduced new materials and a bolder aesthetic. The Offshore quickly garnered its own following, attracting a younger, more dynamic audience and further solidifying the Royal Oak's iconic status.

The Royal Oak's impact extends beyond its groundbreaking design and into its market performance. Over the years, the Royal Oak has not only retained its value but has seen a significant increase in demand and price, especially in the secondary market. This price trajectory is a testament to its enduring appeal and the foresight of its design. The Royal Oak's blend of luxury, innovation, and unmistakable style continues to resonate with collectors and watch enthusiasts alike. Today, the Royal Oak remains a cornerstone of Audemars Piguet's collection, with various iterations and special editions that continue to push the boundaries of watchmaking.

Beyond the Royal Oak

While the Royal Oak undeniably stands as a towering achievement in Audemars Piguet's history, the brand's expertise and creativity extend far beyond this singular icon. Audemars Piguet's portfolio is a rich tapestry of diverse and sophisticated collections, each bearing the brand's hallmark of excellence and innovation.

Jules Audemars Collection: A Tribute to Tradition

Named after one of the founders, the Jules Audemars collection is a celebration of classical watchmaking. This line is characterized by its elegance and simplicity, embodying the purity of traditional horology. The Jules Audemars Tourbillon Chronograph is a standout piece in this collection, showcasing the brand's commitment to intricate watchmaking. It features a meticulously openworked tourbillon and chronograph movement, a testament to the brand's technical expertise and attention to detail.

Millenary Collection: Avant-Garde Meets Heritage

The Millenary collection represents Audemars Piguet's more avant-garde and innovative side. These timepieces are immediately recognizable for their distinctive oval cases and off-centered dials, a design choice that breaks away from conventional watch aesthetics. The Millenary Tourbillon, particularly notable for its daring design, combines haute horlogerie with haute joaillerie. Set in baguette-cut diamonds, this watch is not just a timekeeping device but a piece of wearable art.

The Royal Oak Offshore and Concept Series

The Royal Oak Offshore, a more robust and sportier evolution of the Royal Oak, has carved its own niche in the watch world. Its larger case size and use of innovative materials like rubber, carbon, and ceramic cater to a clientele seeking both luxury and a strong, contemporary presence on the wrist. 

The Concept series, another innovative line, pushes the boundaries of traditional watchmaking even further. These timepieces are a fusion of extraordinary design and cutting-edge technology, showcasing Audemars Piguet's relentless pursuit of forward-thinking and experimental watchmaking.

Audemars Piguet's Strategic Collaborations: Fusing Horology with Culture

Audemars Piguet has also distinguished itself through a series of strategic collaborations that blend the art of watchmaking with various cultural domains. These collaborations have not only enhanced the brand's appeal but have also underscored its commitment to embracing creativity and diversity beyond the traditional watchmaking world.

Embracing Music and Entertainment

One of Audemars Piguet's notable collaborations is with the world of music and entertainment. Since 2019, the brand has been a Global Partner of the Montreux Jazz Festival, contributing to the digitization and preservation of the festival's sound archives, a project recognized by UNESCO. This partnership reflects Audemars Piguet's appreciation for music's cultural significance and aligns with its ethos of preserving heritage while fostering innovation.

The brand's connection with music extends further with the appointment of songwriter and producer Mark Ronson as a brand ambassador. Ronson's creative vision and dedication to his craft resonate with Audemars Piguet's values, bridging the worlds of horology and music. 

Fashion Industry Alliances

Audemars Piguet's foray into the fashion industry is exemplified by its collaboration with Matthew Williams, the creative director of luxury fashion house Givenchy and founder of the streetwear label 1017 Alyx 9SM. This partnership led to the creation of new Royal Oak and Royal Oak Offshore models, blending Audemars Piguet's iconic design with Williams' utilitarian and streetwear-inspired aesthetic. 

The Marvel Universe Connection

Perhaps one of the most exciting collaborations is with Marvel Entertainment. This partnership birthed the Royal Oak Concept “Black Panther” Flying Tourbillon, a limited-edition piece showcasing a hand-painted white-gold Black Panther character. This collaboration not only demonstrates Audemars Piguet's technical prowess but also its ability to infuse pop culture into high horology. 

Price Development and Market Impact

The pricing trajectory of Audemars Piguet, particularly the Royal Oak, is a fascinating aspect of the brand's story, reflecting its market impact and the evolving perceptions of luxury timepieces. Over the years, Audemars Piguet has not only maintained its value but has seen a significant appreciation in the market, especially in the secondary market.

The Royal Oak's journey in the market is a tale of gradual acceptance followed by fervent demand. Initially met with skepticism, the Royal Oak slowly but surely won over critics and collectors. Its initial price, significantly higher than many gold watches of the time, was a bold statement in the 1970s. However, this strategy positioned the Royal Oak as a symbol of modern luxury, differentiating it from traditional luxury watches.

Over the years, the Royal Oak has become one of the most sought-after models in the watch market. Its price has more than doubled, particularly for iconic models like the Royal Oak Jumbo (Ref. 15202ST). This model, for instance, has seen its value skyrocket in the secondary market, trading for well over its original list price.

Several factors contribute to the Royal Oak's price growth. The hype surrounding luxury stainless steel watches, Audemars Piguet's exclusive boutique system with limited production runs, and high auction prices have all played a role. The brand's strategic shift to a boutique-only model has made acquiring these watches more challenging, adding to their exclusivity and allure. Additionally, the Royal Oak's design, particularly models with the blue dial, has achieved a cult status among collectors, further driving up its value.

While the Royal Oak series, including the Offshore and the Jumbo, has seen the most significant price increases, other Audemars Piguet models have also appreciated over time. This trend is indicative of the brand's overall market strength and the growing collector interest in its diverse offerings. Even less hyped models, such as those in full gold or with additional complications like calendar functions or chronographs, offer excellent value and are starting to attract more attention from collectors and enthusiasts.

Price Development and Market Impact

Audemars Piguet's venture into creating AP Houses and the Hotel des Horlogers marks a significant expansion of the brand's experience beyond the realm of traditional watchmaking. These initiatives reflect a deep understanding of the luxury consumer's desire for exclusive and immersive experiences.

AP Houses: A New Retail Concept

The AP Houses are a radical departure from the conventional watch retail environment. These spaces are designed to feel more like luxurious homes than stores, offering a unique and intimate setting for clients to engage with the brand. Each AP House is tailored to reflect the culture and character of its location, providing a bespoke experience that goes beyond mere transactions.

For instance, the AP House in Los Angeles will be a 6,500-square-foot penthouse that offers sweeping views of the city. It features a full bar, a dining area that can seat up to 24 people, and a watchmaking studio, blending luxury with the comfort of a private residence. Similarly, the AP House in New York, located in the Meatpacking District, occupies a 19th-century building and combines the brand's heritage with contemporary design elements. These spaces are not just about displaying watches; they are about immersing visitors in the world of Audemars Piguet, fostering deeper connections with the brand.

Hotel des Horlogers: A Luxury Hospitality Experience

The Hotel des Horlogers in Le Brassus, Switzerland, is another extension of Audemars Piguet's brand experience. Situated in the Vallée de Joux, the birthplace of the brand, this luxury hotel offers guests an opportunity to immerse themselves in the history and culture of Swiss watchmaking. The hotel's design is a testament to Audemars Piguet's commitment to craftsmanship and innovation. Featuring a zigzagging structure that integrates seamlessly with the surrounding landscape, the hotel is a marvel of modern architecture and sustainable design.

The interior of the Hotel des Horlogers is crafted with locally sourced materials, reflecting the brand's connection to the Vallée de Joux. Guests can enjoy amenities such as fine dining experiences led by renowned chefs, and the proximity to Audemars Piguet's headquarters and museum adds a layer of exclusivity to their stay.

Final Thoughts

Audemars Piguet's journey from a small workshop in the Vallée de Joux to a globally recognized luxury brand is a story of relentless innovation, commitment to craftsmanship, and a deep understanding of its clientele's evolving preferences. Through its diverse collections, including the legendary Royal Oak, and its foray into luxury experiences with AP Houses and the Hôtel des Horlogers, Audemars Piguet continues to set new standards in the world of luxury watchmaking.

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