Audemars Piguet is set to introduce its Certified Pre-Owned (CPO) program, enhancing its engagement with the secondary market. This initiative, in development since 2018, is expected to launch in 2024.
Audemars Piguet's Secondary Market Strategy
According to WatchPro, Audemars Piguet has been planning to enter the secondary market since 2018. The strategy involves trading in used watches towards the cost of new ones and selling them through its boutique network. Pilot projects have been conducted in Switzerland, Japan, and the USA.
Global Program Launch
A dedicated division for the CPO program was established in 2024, led by Marc Montagne, former head of e-commerce at Vacheron Constantin. Full details of the program are to be disclosed by the end of October 2024. Audemars Piguet aims to sell directly to consumers, bypassing intermediaries to enhance profitability compared to competitors like Rolex.
Challenges and Benefits of the CPO Program
The CPO program will involve costs and complexities such as purchasing, authenticating, servicing, and repairing watches. Unlike Rolex, which delegates servicing to official dealers, Audemars Piguet will handle these tasks internally. The program also aims to protect consumers from counterfeits and "Frankenstein" watches (assembled from parts of different models).
Market Trends Affecting Audemars Piguet
Morgan Stanley and WatchCharts report that used watches still in production are priced 10.3% above retail on average, with models like the Daytona seeing a 36.5% premium. Audemars Piguet models sell 5.9% above retail on average. Royal Oak models see a 37% premium, while Royal Oak Offshore and CODE 11.59 models sell at 23% and 34% discounts, respectively. Used Audemars Piguet prices have risen 8.5% over the past year.
Frequently Asked Questions
When will Audemars Piguet launch its Certified Pre-Owned program?
Audemars Piguet plans to launch its Certified Pre-Owned program in 2024, with details expected by October.
Who is overseeing Audemars Piguet's CPO program?
Marc Montagne, previously at Vacheron Constantin, is heading Audemars Piguet's Certified Pre-Owned program.
How will Audemars Piguet's CPO program benefit consumers?
The program aims to protect consumers from counterfeits and enhance profitability by selling directly without intermediaries.