Patrick Pruniaux: Our results validate our confidence in Girard-Perregaux

On October 28th, Girard-Perregaux (GP), the Swiss Haute Horlogerie Manufacture, opened its new boutique at Shanghai Grand Gateway 66. GP CEO Patrick Pruniaux cut the ribbon for the brand-new boutique. The company’s recently appointed Brand Ambassador Fei Xiang (also known as Kris Phillips) wore the newly launched Neo Constant Escapement at the occasion. GP now has 29 stores in Mainland China.

 

 

Within one month, GP has made several important moves in the Chinese market: announcing a new spokesperson and opening a boutique. This testifies to the company’s active and aggressive expansion in the Chinese market.

 

Founded in 1791, GP cradled in the Jura Mountains in the heart of La Chaux-de-Fonds, Switzerland, has a history dating back more than 230 years and stands as one of the oldest brands in the luxury watch industry.

 

 

 

Those who know the world of luxury watches and luxury goods will recall that in January 2022, the Kering Group sold its entire stake of GP and Ulysse Nardin (UN) to its current management. The reason given by Kering for the decision was to ‘focus resources on high-growth assets’. Although both parties to the sale commended the growth of the two brands under Kering and their confidence in their future, observers were not shy about asserting that its watch business did not contribute to Kering's growth ambitions (e.g. Bernstein analyst Luca Solca).

 

With the completion of the deal in mid-2022, GP is back on a new path as an independent watchmaking brand.

 

 

Throughout this process, Patrick Pruniaux has been a key player.

 

A watch enthusiast since his teens, Patrick Pruniaux has over 50 watches in his personal collection. His career as a senior executive has taken him from spirits via luxury watches and smartwatches to independent watchmaking, and the management buyouts of GP and UN have allowed him to take on the roles of both "owner" and "manager".

 

Under Patrick Pruniaux's stewardship, GP’s product pricing in the marketplace has been standardized, and the current distribution network now includes some of the most prestigious names in the industry. Also, the new watch collections have taken on a new look, with iconic models such as GP Laureato and UN  Freak whimsical collections gaining prominence. In addition, GP has continued its heritage through the creation of its new Girard-Perregaux Villa and the signing of a series of partnerships that align with the brand's identity.

 

Patrick Pruniaux began his career in the Wines & Spirits business at Diageo and LVMH. After gaining an MBA at HEC Paris and the London Business School, he moved into the world of luxury watches, where he advanced from International Export Director at Tag Heuer to Vice-President Global Sales & Retail as well as member of the LVMH Retail Committee, where he coordinated the sales strategy for the LVMH Watch & Jewelry brands.

 

In 2014, Patrick Pruniaux joined Apple’s Special Projects Team to roll out the Apple Watch program. In 2015, he was promoted to Managing Director for the UK & Ireland region as well as a member of Apple's EMEA Executive Committee, where he led the local releases of several iconic Apple products.

 

In September 2017, Patrick Pruniaux joined Kering Group as CEO of Ulysse Nardin, and in 2018 he was appointed CEO of Girard-Perregaux as well.

 

In January 2022, Kering Group sold its entire stake in Sowind Group SA to its existing management, and GP and UN thus re-emerged as independent Haute Horlogerie manufacturers, with Patrick Pruniaux continuing as their CEO while also becoming one of their major shareholders.

 

Girard-Perregaux's journey from independence to becoming part of a large group to returning to independence and forming an alliance with UN is a unique case in the world of luxury watches. Patrick Pruniaux's rich experience brings a unique perspective to GP’s future.

 

Therefore, ConCall took the opportunity of Pruniaux's visit to Shanghai to have an in-depth conversation with him.

 

ConCall：It's a big career move to go from a consumer technology product to an Haute Horlogerie Swiss watch brand.

 

Patrick Pruniaux: Everyone has just one left wrist and all that watchmakers talk about is "what do people wear on their left wrist". I don't feel my career has been too broad because it’s always been tied to looking after people's left wrists.

 

ConCall: In 2022, the news about the change of ownership of GP has made waves. Why were you so "brave" in deciding to take the helm, and what was it about the GP brand that convinced you that it had a promising future?

 

Patrick Pruniaux: Investors at the time, like me, saw that GP has a strong influence, and of course the results have proven this to be the case. For me, the reason was simple: I believe both brands have great potential and a bright future. In the watch world, GP has one of the longest histories, we have an independent manufacture, autonomy in all production processes, we don't buy movements but make them in-house---some of the smaller independent brands buy movements from us. Consumers look for exclusivity, and GP does the same when creating luxury watches. We don't look for volume, we look for exclusivity. People choose GP because it's a brand with a rich heritage, they understand the values behind it, and when people talk about GP, it's about its exclusivity and fine workmanship.

 

ConCall: Have you noticed the buzz that GP has generated in China since the official announcement of its partnership with Kris Phillips? What do you think about it?

 

Patrick Pruniaux: We chose Kris Phillips to be our Brand Ambassador, not only because he is very popular, but because we share the same philosophy and values. Just like GP’s cooperation with Aston Martin and Saint Laurent, it's all because we share the same values. So, this will be a long-term partnership.

 

 

ConCall: This has been a great move to enhance GP’s brand presence in China. What are you going to do next?

 

Patrick Pruniaux: We will remain consistent with our global strategy and focus heavily on the Chinese market. I believe that Chinese watch collectors also take an interest in what happens in other countries around the world.

 

As an Haute Horlogerie Manufacture---not a fashion brand---our focus is on the Bridges and Laureato collections. For those, we don’t do mass production, but rather refinement, such as the Constant Escapement, which took us two decades to develop to perfection.

 

For now, we don't plan to greatly expand our presence in China, but we will carefully evaluate the right locations to provide high quality service to our customers. 70% of our time we want to focus on product development, 20% of the time we want to work with partners who share our values, and 10% of the time we want to "go crazy" (be imaginative and creative).

 

ConCall: The resale market has long been seen as a barometer of the luxury Swiss watch market---do you agree with this view? The resale market has been very volatile lately, does this affect manufacturers' sentiment on what to do next?

 

Patrick Pruniaux: In recent years, we've done a lot to make and keep retail prices stable, to clean up the marketplace and ensure that people don't encounter overly great price differences when purchasing a GP. In the long term, we prefer to emphasize brand power, consumers don't buy GP watches just to pass them on, rather we want our consumers to be watch enthusiasts and not watch dealers.

 

ConCall: GP has gone from being independent to being part of the Kering Group and back again to independence. Will it remain independent from now on?

 

Patrick Pruniaux: We are an independent brand and we will remain independent.

 

ConCall: Do traditional Swiss watches need to be rejuvenated to compete with Apple Watches for young consumers?

 

Patrick Pruniaux: Many young watch enthusiasts wear more than just the Apple Watch. The average age of luxury watch buyers has dropped massively in the last 5-10 years, and the average age of buyers of our brand has even dropped by about 15 years. So, I believe more and more people will choose to wear traditional watches. People are interested in beautiful and extraordinary traditional luxury watches because those have more emotional value and because they define identity and personality more than smartwatches do.

 

ConCall: The third quarter just closed and it did not bring satisfactory results for those expecting a recovery in consumption. Apart from your role as CEO of GP, how do you as an entrepreneur view the current and upcoming economic and consumer trends?

 

Patrick Pruniaux: Economic development is always a process with ups and downs, not just this year, but in the past and future as well. For us, this year has still brought a growth trend overall. I think consumers will evolve toward greater differentiation and they will become more eager to buy products that represent their identities and characteristics.

 

ConCall: What are the next big things we'll see from GP?

 

Patrick Pruniaux: We are currently working on products that will be on the market in ten years' time, and we want to make pieces that we can still be proud of 50 years down the road. Consumers don't buy our watches to invest in them, but to be proud of them.