The partnership between Tiffany & Co. and Patek Philippe will result in 170 special versions of the most popular watch, likely to set off a buying frenzy among wealthy watch collectors.
Less than a year ago, the famed watch, known as the Nautilus Ref, was discontinued. Demand and prices went up.
It is making a special Ref. The Tiffany-blue face watches will be sold at Tiffany boutiques. The watch was created to honor the partnership between the Swiss watchmaker and Tiffany, as well as the new ownership of Tiffany by French luxury giant LVMH.
Tiffany will get to sell a new watch that will become the most sought after new watch in the world, as it undergoes a makeover under Bernard Arnault.
The CEO of the company said he gave the gift to say thanks for buying Tiffany. It was clear to me that I had to choose something special. This is the last round of this watch.
The last round was thought to be in January. The company unexpectedly announced that it was stopping production of the Ref. The attention and demand for the watch had gone too far. The watch rocketed to fame through social media. It had become one of the most coveted wrist trophies among wealthy watch lovers, but it was a mixed blessing for the company that has a wide range of creative, complicated watches and refined gold, Platinum and other designs.
The success of this watch came so fast and went so high that I don't know why. I don't want to be a mono-product company. I stopped the 5711. We made enough of it.
Many watch buyers were angry. A Ref. 5711, which retailed for $30,000, already had long waiting lists and opaque terms from dealers. Buying a new 5711 would be impossible now. The prices for pre-owned Ref. 5711s soared to more than $150,000 online. One sold for $475,000.
He said that the decision to make the final 5711s for Tiffany came from the deep history and mutual values of the two companies. Tiffany was the first official retail partner of Patek in the U.S. The Tiffany boutiques sell some of the same watches as the Patek watches, which sell for big premiums.
The family-controlled companies have plans to pass leadership to the next generations. Bernard Arnault is the third-richest man in the world and he controls LVMH. Bernard Arnault has been considering adding one of the Big Four watch brands to its luxury-brand stable for years. He told Bernard Arnault that they were not interested in selling.
The deal to buy Tiffany was worth $15.8 billion. He presented the Ref in a virtual meeting. 5711 was sent to LVMH. The family scion was named Tiffany's executive vice president of product and communications.
I told them to stay seated because they would be surprised. They were very excited when I showed them the drawings.
The watch will have a Tiffany-blue color and a Tiffany & Co. stamp at 6 and 12 o'clock. The inscription on the case back is from the 170th anniversary of Tiffany & Co. The surprise on the back that he will leave for owners to discover is small.
The back of the watch had something secret. It is quite funny.
Tiffany can offer the holy grail of new sports watches to its most valued clients, and generate excitement at its boutiques, thanks to the gift of Patek. Tiffany is proud to introduce this special edition featuring Tiffany Blue dial to our most discriminating clients, according to a statement by Alexandre Arnault.
It also carries risks. Tiffany will have more than 170 clients with the money and desire to buy the watch, but most will be turned down. It will be available at Tiffany boutiques in New York, Beverly Hills and San Francisco, and retails for around $52,000.
I warned Tiffany that this is a great gift, and she said that it was a great gift. It is also a poisonous one because you will only have 170 pieces and the choice is yours to sell it to the final client. 170 people will be very happy and the rest will be unhappy. I hope they sell it to the right people. This is the most important thing for me. It has to go to the right person when you do such a watch.
The Ref. There is a larger supply-demand imbalance in the luxury watch market. A whole new generation of younger buyers started learning about high-end watches and buying online during the pandemic, as a result of the record wealth created by soaring stock markets and the flood of governmentStimulus.
All of the privately owned jewels haven't meaningfully increased production. Last year, Audemars 40,000, Richard Mille 4,300, and Rolex 810,000 watches were sold. The numbers were lower because of the Pandemic shutdowns.
Around 60,000 watches a year are made by Patek. The company says it can't increase production without compromising quality. It takes 10 years to train a good watchmaker who can master the intricate parts and fabrication of a watch.
Quality will always be at the top of my wish list. I don't need to rush, I have no shareholders pushing me. I don't want to have bigger numbers. I am more interested in longevity and beauty.
The online gray market for pre-owned watches has arisen because of the low production by the top brands. First-time buyers will usually find that the watch they want is not available, and waiting lists can stretch for years for those lucky enough to even make a list. Many buyers turn to the growing ranks of online sites that sell pre-owned watches, often at huge prices. Sought-after watches that retail for $25,000 or $35,000 are being flipped online for $60,000 and higher.
Pre-owned 5711s are selling for more than $120,000 online. When a Tiffany model comes up for sale, it's not clear what the secondary price will be. Tiffany will auction off one of her watches next week, with the proceeds going to the Nature Conservancy.
