Audemars Piguet Surpasses Patek Philippe to Become the Fourth Largest Watch Brand

Audemars Piguet has surpassed Patek Philippe in sales over the past year, as indicated by a reputable yearly industry report.

Audemars Piguet

The analysis, prepared by investment bank Morgan Stanley and Geneva-based consultant LuxeConsult, anticipates that Audemars Piguet generated CHF 1.58 billion (roughly $1.7 billion USD) in 2020, compared to Patek Philippe's CHF 1.53 billion ($1.65 billion USD). This marks the first occasion in five years since the report's initial publication that Audemars Piguet has surpassed Patek Philippe.

Customers expended greater sums on Patek Philippe at the point of sale ($2.19 billion USD compared to Audemars Piguet’s $1.91 billion USD); however, Audemars Piguet retains a larger portion of its revenue due to its direct-to-consumer sales model, while Patek Philippe allocates a significant share of its earnings to retailer partners owing to its wholesale strategy.

Patek Philippe's estimated average retail price declined from CHF 35,194 ($37,965 USD) in 2020 to CHF 29,853 ($32,200 USD) last year, potentially due to the brand's focus on its discontinued stainless steel Ref 5711/1A model. In contrast, Audemars Piguet increased its average sales price by nearly CHF 5,000 ($5,390 USD) during the same timeframe.

Patek Philippe dropped from 4th to 6th place in the rankings from 2020 to 2021, due to Longines increasing its production capacity by 20%, from 1.5 million watches in 2020 to 1.8 million in the previous year. This resulted in net sales of CHF 1.54 billion ($1.66 billion USD).

The research indicates that the watch industry has returned to pre-COVID-19 levels, with Rolex reinforcing its leading position, achieving a market share of 28.8%, an increase from 24.9% in 2020. The renowned company is believed to have manufactured slightly more than one million watches in 2021, generating retail sales estimated at CHF 12.07 billion ($13 billion USD), retaining CHF 8.05 billion ($8.68 billion USD) of that total.

Cartier surpassed Omega for second place, attaining net sales of CHF 2.39 billion ($2.57 billion USD) compared to CHF 2.2 billion ($2.37 billion USD). Cartier increased its output by 22%, rising from 490,000 watches in 2020 to 600,000 in 2021, but Omega achieved a more modest 14% growth, from 500,000 to 570,000 watches.

Hermes and Chopard, both introducing new stainless steel models, have ascended into the Top 20 in the ranking.

The survey indicates that luxury jewellery brand Van Cleef and Arpels experienced significant success in 2021, with its watch division ascending from 26th to 17th place, and turnover more than doubling from CHF 153 million ($164.8 million USD) to CHF 404 million ($435 million USD). The company increased watch production by 38% and had a 75% rise in average sales value, from CHF 34,837 ($37,500 USD) to CHF 60,772 ($65,400 USD).

The survey enumerates the Top 20 brands as follows: Rolex, Cartier, Omega, Audemars Piguet, Longines, Patek Philippe, Richard Mille, Tissot, IWC, TAG Heuer, Breitling, Hublot, Vacheron Constantin, Jaeger-LeCoultre, Tudor, Panerai, Van Cleef & Arpels, Chopard, Hermes, and Bulgari.