PERRELET is one of the five largest manufacturers of Swiss watches. In every automatic watch in the world today lives the spirit of Abraham's first automatic watch - Louis Perlet, created in 1777. And so any person who decides to purchase an automatic watch will first think of Perrelet. Fausto Salvi, the new chief executive officer of Perrelet, told us about what is changing in brand strategy today.
Fausto, what did you do first when you ended up in the chair of Perrelet CEO?
The first thing I had to do was to reconsider the brand’s strategy, its pricing policy ...
Because of the crisis?
For different reasons. First of all, of course, because of the crisis, it was important for us to reposition the brand. It was the crisis that helped us do this and develop a new strategy. We wanted to convey to our customers a more understandable and clear idea of what Perrelet is. How to characterize the essence of the brand in one phrase? First of all, Perrelet is a watch manufacture, introducing and using unique elements in its watches.
When I say that Perrelet is a watch brand, the “legitimacy” of this claim is reinforced by the fact that Abraham-Louis Perle was the inventor of watch-making. In addition, all products in our collections consist of small but extremely complex parts, unique and precious elements, especially in models of such lines as “Diamond Flower” and “Turbine”, as well as in women's collections. By precious elements, I mean precious stones, diamonds, as well as the shapes of each model and expressive combinations of jewelry and watches.
In your women's collections there are not many mechanics - tourbillons, rotors. For the most part, precious metals and stones?
No, I would not argue so categorically. In 2010, we created the “Ceramic Ladies” collection, which features original automatic calibers.
This means that this collection can no longer be called a "jewelry watch", is it?
Yes, perhaps so to speak. The starting price for models from this line is 3400 Swiss francs. This is a very affordable price for a diamond-free watch, but always with a great design and the right price-quality ratio.
Does Perrelet continue to follow past traditions in its products?
The main feature of Perrelet has always been that the brand was different from others, especially when it came to watch movements. Currently, we continue to follow these traditions. Our mechanisms are unique, and other watch manufactories, with all due respect to recognized masters, definitely do not have them. We are the only ones currently introducing the “Turbine” model to the international market. This is a first-class model, very stylish, with a very complex caliber inside.
What is the segment of a potential buyer of Perrelet watches?
I think that our target audience is quite extensive. From a 17-year-old stylish young man who loves rap to a 55-year-old businessman who believes that nothing like Perrelet can be found on the market. Perhaps for rich people, watches of our brand will not be No. 1 choice, but they will definitely become the second or third watches in their collections.
Fausto, almost every famous watch brand has its own “ambassador”, let's call it that. Which world celebrities do consumers associate with Perrelet watches?
No, unfortunately, we have not acquired such a person yet. Our manufacture, despite its considerable age in history, is quite small, we manufacture and sell no more than 4,500 hours a year.
It’s strange, so many years have passed since the brand’s creation, the whole world knows about you, and you still think Perrelet is a small brand?
In a way, yes. Despite its more than 200-year history, the brand in its present form appeared only in 1996, and this is not so long ago. In the mid-1990s, our watches were sold at a price not exceeding 500-800 francs. In 2004, after a global price review, watches manufactured at Perrelet factories began to be valued more expensive, starting at 5 thousand francs and above.
You mentioned that you are revising prices again ...
Yes, we are reviewing, but they will not be raised, this is the main thing. We very seriously analyze the market situation and the competitiveness of our products, taking into account factors such as the ability to conduct many types of work within the company on our own, this will allow us to reduce prices. In other words, our main goal is to ensure that end-users are left to benefit from this revision. Compared to last year, we were able to reduce prices for our watches by 10-40%.
Today we introduce models that have an updated and improved design. We reduce the number of models from old collections, leaving only the most successful and most in demand and popular. In 2010, in addition to the new Ceramic women's collection, which I already spoke about, we introduced the Turbine Excel to the market. In addition, a double rotor was developed by our craftsmen, which we gladly introduced to the market. As for the old collections, there we have improved the design and reduced the price. That is, our main idea is to sell high-quality products at an affordable price.
Are you not afraid that, due to the desire to lower prices, Perrelet will become an open-source brand, leaving the luxury segment, despite the diamonds in the finish and complex mechanisms inside?
No, not at all, because even lowering prices, we still remain within our original price level. In the recent past, we have sold many of our watches at a starting price of 2,300 Swiss francs. Therefore, in spite of any changes, we will remain in the luxury goods segment.
What models of Perrelet watches are the most popular among Russian-speaking buyers?
Of our old classic models it was - “Corno”, “Creton Corno”, “Diamond Flower”. Last year, after the appearance of the Turbine Excel line, our Russian-speaking customers at first did not dare to purchase models from it, however, this year this collection became a recognized best seller. I emphasize that watch models from the “Ceramic” line now also become popular, especially those made in black or white.
And in the market of the United Arab Emirates?
For the most part, there is the same reaction as among Russian-speaking buyers. For example, “Turbine” we began to sell in the UAE just a few months ago, but the sale of watches from this line is very successful.
Do you think that an expensive watch on your wrist is part of the image of a wealthy person or is it still a tribute to fashion?
By today's times, it seems to me that even the richest people buy expensive and luxurious things, including watches, not on the same scale as before. Many are simply afraid to spend money the way they did before the crisis. For many, on the contrary, watches are part of the business image, and you cannot do without them.
Fausto, what does the name Perrelet mean to you?
For me, this is the history of Swiss watchmaking, as well as the spirit and mood of a bygone era. We will try to maintain this authenticity, giving the brand more modern features and greater recognition.
Thanks Fausto. We wish you success.
