In Search of Excellence: Episode E149 with Laria Resta – The Future of the Luxury Watch Market and Audemars Piguet

Release Date: February 4, 2025

Introduction

In this captivating episode of In Search of Excellence, host Randall Kaplan delves into an insightful conversation with Laria Resta, the dynamic CEO of Audemars Piguet (AP), a renowned luxury watch brand. The discussion explores the intricate landscape of the luxury watch market, the philosophies driving AP’s success, and Resta’s personal insights on leadership, mentorship, and the evolving role of women in the workforce. This summary encapsulates the key points, discussions, and valuable lessons shared during the episode.

1. Defining Success: Love, Learn, Legacy

Resta begins by outlining the three fundamental qualities essential for success: love, learn, and legacy.

• Love What You Do: “Love what you do or fall in love with what you do.” [00:03]

  Resta emphasizes the importance of passion in one’s work, suggesting that while loving what you do is ideal, it’s often more realistic to actively cultivate a love for your work.

• Continuous Learning: “Learn constantly. Make learning accessible to others.” [19:59]

  She highlights the necessity of lifelong learning, especially as one grows in their career, to avoid complacency and arrogance.

• Building a Legacy: “Define for each year what is the legacy that will survive me.” [00:43]

  Resta advocates for setting achievable, measurable, and concrete legacy goals annually to ensure lasting positive impacts on business, people, and relationships.

2. The Luxury Watch Market: Pricing and Customer Insights

Kaplan and Resta delve into the current state of the luxury watch market, providing detailed statistics and customer demographics.

• Pricing Overview:

  • Rolex: ~$13,562
  • Cartier: ~$6,340
  • Omega: ~$7,296
  • Patek Philippe: ~$44,389
  • Audemars Piguet: ~$53,786
  • Richard Mille: ~$200,000+

• Customer Demographics:

  “We don't have a typical customer as such, but definitely I can bucket you in clusters...” [01:48]

  Resta categorizes AP’s clientele into:

  • Collectors: Highly knowledgeable individuals who build themed collections and actively engage with the watch community.
  • Milestone Celebrators: Buyers who purchase watches to commemorate significant life events, embedding emotional value.
  • Stylers: Customers who appreciate the aesthetic and make a fashion statement with their watches.

• Gender Distribution:

  “We are underdeveloped with women. Below 20% of buyers are women...” [03:20]

  Resta notes the potential growth in female consumers as younger generations show increased interest in mechanical watches.

3. The Challenge of Acquiring Audemars Piguet Watches

Kaplan shares his personal experience attempting to purchase an AP watch, highlighting the brand’s exclusivity and the importance of relationship-building.

• Scarcity and Exclusivity:

  “They look at me like I was from the planet Mars...” [04:57]

  The difficulty in obtaining an AP watch is intentional, fostering a sense of exclusivity and ensuring that buyers are genuine enthusiasts rather than speculators.

• Building Trust:

  “We are in a business of relationship and passion for quality.” [09:02]

  Resta explains that AP prioritizes long-term relationships over immediate sales, aligning with their commitment to quality and legacy.

4. Randall Kaplan’s Perspective on Art and Collecting

Kaplan shares his experiences as an art collector, drawing parallels between art and watch collecting.

• Integrity in Collecting:

  “I said no” [07:31]

  Kaplan illustrates his commitment to genuine appreciation over financial gain by refusing to flip a valuable art piece for immediate profit.

• Emotional Connection:

  “Art brings me tremendous satisfaction now, carrying amazing watches.” [07:49]

  This sentiment underscores the emotional fulfillment derived from collecting, whether in art or luxury watches.

5. Audemars Piguet’s Business Philosophy: Relationship Over Transaction

Resta elaborates on AP’s dedication to fostering enduring relationships with clients rather than focusing solely on sales.

• Relationship-Centric Model:

  “This is not our business model.” [09:02]

  AP aims to cultivate lasting connections, ensuring that clients feel part of the AP family and continue to engage with the brand over time.

• Emotional Investment in Craftsmanship:

  “The level of attachment these watchmakers have with their creation is very high.” [09:02]

  Emphasizing the emotional bond between watchmakers and their creations, Resta highlights the meticulous craftsmanship that defines AP watches.

6. Production Choices and Commitment to Excellence

AP’s limited production strategy is a deliberate choice to maintain high standards of quality and exclusivity.

• Selective Production:

  “We decided to produce less... because we are aiming at the highest standard of watchmaking.” [12:26]

  By limiting production, AP ensures each timepiece meets their stringent quality criteria, preserving the brand’s reputation for excellence.

• Innovation and Craftsmanship:

  “It takes at least two years to assemble manually by one watchmaker.” [12:26]

  AP invests significant time and labor into each watch, reflecting their dedication to innovation and superior craftsmanship.

7. Navigating the Secondary Market

The conversation shifts to the burgeoning secondary market for luxury watches and AP’s contemplations on entering this space.

• Secondary Market Insights:

  “We are working on a project that has the mission to offer a service to our clients in terms of certification...” [16:54]

  AP is exploring ways to facilitate the secondary market, focusing on certification and collection renewal while maintaining control over the brand’s integrity.

8. Innovation and Rule-Breaking as Drivers of Success

Resta discusses how AP’s willingness to challenge industry norms has been pivotal to their success.

• Historical Rule-Breaking:

  “When the Royal Oak was invented, it was a rule breaker across all aspects.” [17:27]

  The introduction of unconventional designs like the Royal Oak exemplifies AP’s tradition of pushing boundaries to set new standards.

• Modern Innovations:

  “We use ceramics that can be destroyed easily.” [17:27]

  AP continues to innovate with materials and designs, emphasizing resilience and aesthetic appeal.

9. Leadership and Qualities for Future Success

Resta shares her personal philosophy on leadership and the essential qualities for future success.

• Love, Learn, Legacy Reiterated:

  “Find mentors and find supporters along the way... Be extremely vocal on what you want.” [22:05]

  She underscores the importance of mentorship, advocacy, and proactive goal setting for career advancement.

• Choosing Over Sacrificing:

  “Start talking about your life in terms of choices and not sacrifices.” [22:05]

  Encouraging individuals to view their decisions as empowering choices rather than burdensome sacrifices.

10. Empowering Women in the Workforce

A significant portion of the discussion centers on Resta’s experiences and advice for women striving for success in their careers.

• Mentorship and Support:

  “Don't be shy in asking for help.” [22:05]

  Resta highlights the necessity of seeking mentors and building a support network to navigate professional challenges.

• Vocal Advocacy:

  “Be extremely vocal on what you want.” [22:05]

  She advises women to clearly articulate their career aspirations and not settle for roles that underutilize their potential.

• Work-Life Balance as Choice:

  “Make the choices, get the most out of it.” [24:44]

  Emphasizing that work-life balance should stem from intentional choices rather than societal expectations or imposed roles.

11. Collaborations with Celebrities: Case Study of John Mayer

Resta explains AP’s approach to collaborations, using John Mayer as a prime example.

• Meaningful Partnerships:

  “John is a collector, watch connoisseur... It brings external voice to my creative team.” [26:15]

  AP engages in collaborations that offer creative value and align with the brand’s ethos, avoiding superficial celebrity endorsements.

• Innovation Through Collaboration:

  “It's a new movement inspired by the work of Kos.” [27:57]

  Collaborations like the one with John Mayer result in innovative timepieces that reflect both AP’s craftsmanship and the collaborator’s unique vision.

12. Closing Reflections: The Fill in the Blank Game

As the episode concludes, Kaplan and Resta engage in a reflective game, sharing personal insights and aspirations.

• Legacy and Regret:

  “My number one professional goal is leave a legacy on people in my organization.” [28:58]

  Resta values the lasting impact she has on her team over personal achievements.

• Advice for Success:

  “Learning desire, curiosity.” [30:33]

  She identifies a relentless desire to learn and maintain curiosity as key traits for success.

• Personal Reflections:

  Resta shares heartfelt personal anecdotes, including her relationship with her late father and the importance of visibility and balance in her life.

Conclusion

This episode of In Search of Excellence offers a profound exploration of the luxury watch industry through the lens of Audemars Piguet’s CEO, Laria Resta. Key takeaways include the significance of passion, continuous learning, and legacy in achieving excellence; the importance of building genuine relationships over transactional interactions; and the empowering advice for women navigating their careers. Resta’s insights into AP’s commitment to quality, innovation, and meaningful collaborations provide valuable lessons applicable beyond the realm of watchmaking. For aspiring leaders and enthusiasts alike, this conversation serves as both an inspiration and a roadmap to achieving sustained excellence.

Notable Quotes

• “Love what you do or fall in love with what you do.” – Laria Resta [00:03]
• “Find mentors and find the supporters along the way. Don't be shy in asking for help.” – Laria Resta [22:05]
• “When the Royal Oak was invented, it was a rule breaker across all aspects.” – Laria Resta [17:27]
• “Learning desire, curiosity.” – Laria Resta [30:33]
• “Make the choices, get the most out of it.” – Laria Resta [24:44]

This comprehensive summary encapsulates the essence of Episode E149, providing a detailed account of the engaging dialogue between Randall Kaplan and Laria Resta, and offering valuable insights into achieving excellence in both professional and personal spheres.