Interview: A Conversation With Patek Philippe's Thierry Stern

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Several weeks ago, I had the opportunity to sit down with Mr. Thierry Stern, who as I’m sure every HODINKEE reader knows, is and has been for years, the president of Patek Philippe. There is no watch brand in Switzerland quite like Patek – its combination of history, plus the fact that it has never produced anything other than the most highly positioned luxury watches, makes it a company which, though sometimes controversially, continues to command more general respect (and higher prices) than its competitors. It’s also a company which is entirely privately held, and still family-run – while it’s not exactly a unique position to occupy (Audemars Piguet is both family-owned, by the original founding families no less, as well as privately held) it is an increasing rarity in a luxury horology world that’s largely been dominated, since the late 1990s and early 2000s, by major international luxury corporations.

With all this in mind, I asked Mr. Stern to share with us his thoughts on the past, present, and future of Patek Philippe – as well as what it means to be in such high demand, and how that affects production and design decisions.

Jack forster

Patek Philippe seems to be somewhat set apart from the rest of the industry, and to occupy a unique position. Do you think that’s true, and if so, why do you think it’s true?

thierry stern

Well, I don’t know if it’s true. I always said that we have to watch out and we’re not the only one proposing beautiful watches. Now, maybe the advantage that we do have is experience … we did a lot of mistakes through all those years, and through those mistakes, we have learned a lot. So, maybe that’s the difference; today Patek Philippe is maybe better because we learn from all those mistakes. We try to improve the product; we have always kept the same strategy.  

It’s still in the same family, now for four generations, and that allows us, really, to trust a single and simple strategy, which is to create the finest and most beautiful watches in the world. And also to work with the best partners that we can find around the world. And that’s something which makes it also quite exceptional. So, are we the best today? I wouldn’t say that, because I know there are some very talented watchmakers, but as a company, definitely, I think we are one of the best ones. 

We have the right people, we have the right partners and we also have, maybe, the right vision. Which is, I think, the most important today … what are you willing to do with your company? We have to be really vigilant, to what is the vision of Patek Philippe. And people trust us, and this is always a key; if you trust a brand, I think it’s the most important for me. And people can trust me, you know? I’m not willing to trick people, I’m not willing to change anything with Patek. I’m just willing to improve the product, the design and also the people who are around me. 

The Internet is a very good tool to be educated, yes, but it’s not the right tool to sell a Patek Philippe.

thierry stern

jack Forster

Especially over the last five years, we see more and more luxury watch brands moving in the e-commerce direction. Do you feel for Patek that it’s still essential to maintain a primary position in terms of human contact, the human element in presenting the watches to existing clients and new clients? 

thierry stern

Well, if you’re like me and if you are passionate about watches, I wouldn’t say yes to e-commerce. Because if you have a passion, it’s nice to come to speak with the people who know about the watches, to take time, have a coffee, enjoy the different watches you’re gonna try. This is something you do not find with e-commerce … e-commerce, of course, I’m using it also to buy milk, water, sometime jeans, but if I want to buy something nice, sorry, but I’m not willing to use e-commerce.

It is about passion. So, for me, I still believe that we need to work really with retailers, where you have time to come. It’s a pleasure. Otherwise, what’s going to happen? I mean, in a few years, everybody will lay down in his bed, work from his bed, order everything by the internet. They don’t need to move anymore. What’s going to be your life? It has to stay as a pleasure. I mean, you are coming in to beautiful places … I think it’s really part of your life. So don’t destroy your life by just standing in front of your screen … you still have legs, use them. 

jack forster

But obviously, one thing you can do very efficiently online is reach a wider audience, communicate values that may be less easy to convey otherwise.

thierry stern

Oh, definitely … of course it’s very useful. We used to have magazines, today you can also go on the web. This is something important, I agree. But, it is just one part of it … I have kids, I see how they work. They enjoy going to the internet to be educated. But they also enjoy having good books. So, we have to use both of them.

That’s why I always say we have this tradition of, really, evolution. We need to evolve, but we should not always go too far. The internet is a very good tool to be educated, yes, but it’s not the right tool to sell a Patek Philippe. 

jack forster

Yeah, a watch isn’t a piece of data, it’s a physical object. Your view is that to really understand it, and make an informed decision about whether or not to make it part of your life, you need to see it in person.

thierry stern

Oh yeah. You know, it takes a minimum of two years for us to … build a design, so, to be fair, I expect that you can come and try it! If you are willing just to order Patek online, it’s not the same. Where’s the pleasure? And that’s what I will always come to: You need to take the time to enjoy trying a watch. Because, never, never, I mean, never trust just pictures on the internet … try it on your wrist, ask the right questions to the clerk, to the retailer. I think that’s very important.

It’s like buying a car, if you do not try your car, you may be disappointed by the fact that the seat is maybe not appropriate for you, the speedometer. So, you need to come and to try. I mean, they’re waiting for you, and they’re good people. They will always listen to your comments and this is very important. And don’t forget, it’s also important for me, because those comments will come back to me. And if you don’t like the watch for any reason, it’s also interesting for me to have this type of feedback. So I can also correct, maybe.

So it’s a whole network, which, I think, is not ready to disappear.

jack forster

Over the last twenty years, I’ve seen an enormous increase in interest in fine watchmaking in the US. Part of that is a huge appetite for certain models, especially in steel. How do you balance demand against scarcity, and avoid creating so much frustration that it actually becomes counterproductive?

thierry stern

You cannot handle it. We made this choice many years ago to say, there’s a certain percentage of steel watches that Patek Philippe will do. You have to understand that … the factory that we have is not done to build only steel watches … Patek Philippe has always been always dealing with every kind of material: platinum, white gold, rose gold, yellow gold. Steel watches also, but it has to stay as a limited amount. So, how can I deal with it? I can’t. Sadly, I can’t, so I really feel sorry when I hear that, yes, there is a four years, eight years waiting list. But that’s also part of the beauty of Patek. 

If you want a fine watch, sorry, I cannot overproduce them. I do not have the watchmakers, I do not have the people able to do that. And I do not want, also, to do it. Patek Philippe is still a small company; we’re willing to do the finest watches in the world. I set the limit with the quantity because I know that over the quantity that I’m doing now, quality will be hurt. And that’s absolutely not what I’m willing to do, and I believe that the clients are not also willing to see that. 

jack forster

So the production for particular watch models is rationalized around a chain of suppliers and a tooling process, and it’s not as if you can just switch over from making a certain number of round gold watches to making a certain number of stainless steel sports watches. There are inherent limits? 

thierry stern

There are limits, and you have to understand and they have to understand that, today for example, I’m working for 2029. I have to plan it for a lot of things, in terms of movements; in terms of cases we need about two to three years in advance. And all of that takes time, and there’s no way I can increase that. The people who I have today are the best, and to be able to train another watchmaker, for example, for the finest watch, it’s gonna take me 15 years. So, even if we decided today to increase production, I’m going to need 10 to 15 years before I can have those watchmakers. 

And again, is it something I’m willing to do? No, because I know that if we are overproducing, it’s going to also be dangerous, dangerous for me in terms of quality, and maybe dangerous for the client, also because the value of the watch may decrease. And this is not what I’m willing to do, and this is not what you are willing to accept as a client. 

If you buy a Patek Phillipe, value has to stay there where it is. And maybe even increase, depending on the model, of course. 

jack forster

If there was something that you could open up people’s eyes about, in this market in particular – make them more aware of about Patek Phillipe – what would that be? 

thierry stern

Maybe the fact that – well, you mentioned the stainless steel watches, but we have so many different models. Don’t forget, today, why is stainless steel working? I think it’s also because the watch industry, we really came from a bad time. Also maybe worldwide. So, that they started, really to look for stainless steel watches because the price was a little bit lower. And suddenly it became a trend. Why? It’s difficult to say why, but the trend came. So, today, it’s a circle, I would say. The circle is about steel today. When I grew up in the watch industry, we used to say, “Every seven years it’s changing” and I strongly believe that today, the [trend for] steel watches will also change. Maybe not in seven years, maybe in three years, maybe in 10 years. 

At Patek, we have 140 different types of models. And you have learn to watch all of them. Steel is one of them, for sure, we have maybe three to four types of different models. 

So, there are still 136, 135 different types of other watches, made of different types of material that you should also look at. The trend of steel is important, but it’s just a moment in the life of Patek Philippe. It’s not the beginning, it’s not the end, it’s just there for a few years. But if you want to look a little bit further, I don’t think you should stop only for steel. You have also different colors, different styles, and make your choice. But, the steel version is maybe the easiest one today.  

It’s only about beauty. And this is really what is the most important with Patek.

thierry stern

jack forster

Steel is easy to understand.

thierry stern

Yes, of course. It’s trendy, it’s rare, it’s less expensive … I have seen yellow gold, white gold, platinum, all are popular at different times, and now it is the steel version – fine, and I like it also. But there’s some limit that I cannot go over, so production will always stay limited for steel. Especially with Patek.

I cannot talk for the other brands for sure. They have to make their own choices, but for Patek, I think that we’re looking a little bit further. Everything that I do today is for 10 to 15 years ahead. And believe me, I do not see steel in 10 to 15 years ahead … it will remain, definitely, but the other versions also will come back. 

jack forster

Would you say that there is a specific philosophy, within the company, that keeps it in the position it’s in?

thierry stern

I grew up in a family that was always working with watches, so the philosophy … it’s more about an education I received. More important, it was also about passion, so if you look at Patek today and how I’m looking at it, I’m not looking at Patek as a business in one sense. I’m looking at it as a passion. 

It’s only about beauty. And this is really what is the most important with Patek. I strongly believe that if you have a fine product that is beautifully done, that will last, maybe go from one generation to the other one, there’s no need really to have a very clear marketing brief and to think about the future. Do what you believe is the best for the brand. That’s what my grandfather at the time also told me. He said, “Enjoy what you are doing. Propose a design that you’re going to like. Travel the world and listen, also, to your customers. It’s going to help you also to make great designs.” And that’s what I do today. 

And so the strategy of Patek Philippe cannot be read in any books. You are not going to be able to go to the best school in the world and try to understand that. Because, even myself, I do not understand exactly how it works. It’s just a matter of  having this passion in your heart and being willing to do the best and finest watches in the world. And most of the people working at Patek, that’s how they are also. 

You have to transmit this type of vision to your own people. To say, “Forget about selling, we’re going to have to manage maybe the opposite. The anger of people who are not able to buy it because we don’t have enough. But on the other hand, look how happy and proud we can be because we have the finest product.” This is the key. So, even if people hate me because I do not make enough, on the other hand, they say, “But, you have the finest watches in the world,” and this is much more important for me. 

I mean, Patek Philippe is maybe the only brand today that is able to bring between 15 to 25 new models every year. I know it’s too –there are too many of them. I mean, everybody is telling me that. But, try to say that to somebody who is really passionate, it’s not easy to listen to. But that’s the way we are, and I do not believe we’re going to change. Not under me, and I hope not under my sons either. 

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