Audemars Piguet and Royal Pop defy luxury watch slump and tariffs

Luxury watchmaker Audemars Piguet says its sales and engagement are breaking records after its risky, eye-catching Royal Pop collaboration with Swatch earlier this year, according to the company’s CEO.

Audemars Piguet in May teamed up with Swatch to launch a line of brightly colored timepieces attached to lanyards and priced at $400 apiece. The Royal Pop collaboration set off a frenzy of interest on social media, with Swatch posting a request on Instagram for customers “not to rush to our stores.” The furor sparked a debate in the luxury industry about whether Audemars Piguet, whose ultra-rare watches sell for more than $30,000, had cheapened the brand and debased a revered member of the “Holy Trinity” of Swiss watchmakers, which includes Patek Philippe and Vacheron Constantin.

Yet Ilaria Resta, CEO of Audemars Piguet, said sales and interest in the brand have skyrocketed. The launch generated more than 20 billion mentions and conversations on social media, she said. Millions of young consumers were suddenly diving into the workings of mechanical watches and horology. Even Audemars Piguet’s top collectors were calling to request their own Royal Pop.

“We’ve had a record month every month since the launch of the Royal Pop,” Resta said. “Our website crashed. We have nonstop visits in our boutiques. Simply by putting the spotlight on an object and a mechanical movement, all of a sudden you discover the world of Audemars Piguet.”

The company’s success has become a case study for the ailing $50 billion Swiss watch industry and the broader luxury economy. While the ultra-high end of the Swiss watch industry is thriving, business and profits in the broader industry are on the decline.

The number of Swiss watches exported globally has fallen by more than half since 2011, and total sales fell 1.7% last year, according to a report from Morgan Stanley and LuxeConsult. While there are about 450 Swiss watch brands, the top four — Rolex, Patek Philippe, Audemars Piguet and Richard Mille — now account for about half of industry sales and about 76% of profits, the report found.

The top of the market has become so rarified that it’s become inaccessible even to wealthy watch fans. Audemars Piguet makes only 53,000 watches a year, compared with more than 1 million produced by Rolex, according to Morgan Stanley. Audemars Piguet’s coveted Royal Oak models typically start at $30,000, with the most complicated models selling for over $200,000. Waitlists are long, for those lucky enough to buy them. Preowned APs typically sell for 30% or more above retail price since supply is so scarce.

Resta said that Swiss watch brands that follow the old playbook — relying on their history, older clientele and elitist marketing — face extinction.

“Either you dare or you die,” she said.

She calls her new strategy “radical openness.” The goal is to open the elite world…