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Last week in the sunny Swiss village of Gstaad, Piaget kick-started the celebration of its 150th anniversary with the relaunch of Polo 79, a bold watch with a 38-millimetre case that was favoured by those of 1980s’ high society and, according to the brand, had been long requested from a rapidly expanding community of watch collectors.
The launch is significant because it encapsulates Piaget’s “golden age” — part of a new strategy to enhance its heritage as well as the jewellery watches category (the house’s stronghold since its founding). “We have been working on highlighting Piaget’s culture, its DNA, its difference; how it can stand out in the current luxury conversation that is becoming chaotic and noisy,” says Piaget CEO Benjamin Comar.
Comar has been heading the brand since 2021 after cutting his teeth at giants such as Cartier and Chanel. He most recently successfully repositioned niche jewellery brand Repossi.
With a turnover that Morgan Stanley estimates is in the region of €500 million, Piaget is among the Davids of the industry, marking its territory amid the Goliaths of jewellery like Cartier, with a turnover just shy of €10 billion and luxury titans including Louis Vuitton, Dior, Dolce Gabbana and Chanel, which are doubling down on their investment in the rapidly growing segment of jewellery and watches. Global sales of watches are estimated to have increased by 3 to 4 per cent to reach a record €55 billion in 2023, according to Bain’s latest luxury report, while sales of branded jewellery rose by around 5 to 6 per cent year-on-year to €29 billion.
Comar says increased competition can be an advantage for smaller players. “The luxury market is growing, thanks to its creativity and thanks to an audience increasingly interested in luxury products. Naturally, there are the big brands with their wide resonance, but there is also a more educated clientele searching for difference, for more cutting-edge brands. It is as if the big brands create space for smaller ones,” he explains.
Comar’s observation corresponds to the analysis of Federica Levato, senior partner and EMEA leader of fashion and luxury at Bain. “Despite the luxury watches and jewellery market being dominated by large brands, many small luxury brands have been developing in recent years. Authenticity is increasingly valued among consumers, and brands should have a clear and distinctive value proposition to which they are always loyal in order to establish a ‘raison d’être’ (reason for being),” Levato says.
“Large luxury brands might satisfy a large proportion of existing needs, but there are millions of very niche needs that small brands can address,” says Laurent François, managing partner of the creative agency 180 Global in Paris. François points out that we live in an era of micro-trends and hyper-customisations that offer opportunities to those who can spot the need for something different; be it a product, a service or a community that is not being spoken to.
François believes every brand can stand out, regardless of size. He points to Japanese bridal jewellery brand Enuove, which offers an innovative customer journey (such as “speed dating” inside its boutique); Shanty Biscuits, which allows the personalisation of its goods; and designer Kiko Kostadinov. “Most of the successful small luxury brands started from a frustration: a fashion piece which did not exist, a service that was not top-notch, a CSR concern, a gift they would have loved to offer to their kids, etc. It’s from this sweet spot that success can arise — a genuine personal story which becomes the foundation of the whole value chain,” says François. Similarly, Bernstein analyst Luca Solca highlights watch brand A Lange Söhne’s rapid growth, owing to its clear aesthetics and brand proposition.
But while a growing market brings opportunities, big and small brands continuously face challenges in a world dominated by geopolitical and economic uncertainties.
China’s cooling luxury demand during and after the pandemic has hurt companies like Piaget; what is a significant market for the brand became closed off prior to global expansion. Comar is sanguine about China, pointing to opportunities in other global markets. “New countries are emerging like Vietnam and surprising us like Australia, New Zealand and Germany,” he says. Piaget has opened a new boutique in Bangkok and Sydney, and Comar observes that the recent commercial successes in those geographic areas result from customer demand as well as the brand’s marketing advances. “Satisfied customers and word of mouth are more important than ambassadors and marketing campaigns,” he says. Through the relaunch of Polo 79, Piaget also hopes to reboost its position in the US, where the watch was popular in its heyday and is still sought after by collectors.
Supply chain issues are more pressing, particularly for smaller brands that have limited means for the vertical integration currently pursued by bigger players. Gemstone dealer François Garaude says more players make it harder to source gemstones for every brand. A shortage of skilled stone cutters and buyers who meet the ESG standards required by all Western brands is also causing a bottleneck and raising prices.
But Comar is mainly concerned with finding skilled artisans. “It is difficult to find and train people. It takes 10 to 15 years for a goldsmith to master the most ambitious creations. This is a challenge”, says Comar, “but it is part of our job.”
The fierce competition for talent alongside the price hikes across materials are two main reasons why the costs of luxury goods have spiked in recent years for the watch and jewellery industries — an element, some analysts observe, that is alienating the more aspirational customer and giving headaches to luxury executives operating in that space.
Those focused on the top end of the luxury pyramid have proved more resilient. Rather than bolstering its entry-price offer, Piaget is focusing on the more high-end pieces, like Polo 79 (retailing north of €60,000) and elaborate pendant watches, mixing jewellery and horological expertise. Above all, as Comar says, Piaget has a laser focus on its difference and making it stand out. “It’s simple: fewer launches with more impact.”
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