Jean-Marc Pontroy, CEO of Italian luxury watch brand Panerai, is wearing the submersible Alux Lab-ID, which he believes may interest some buyers in India. The 49mm Whopper features a case made of ceramized titanium, a material that Panerai claims is 44% lighter than steel, but has a fracture toughness ten times higher than traditional ceramic. $100,000 watch ( 83 Lakh) lights on demand using mechanical energy. “Of course, no batteries. “Four energy storage barrels engineered to open into a microgenerator convert mechanical energy into electricity,” he says.
Panerai, which has a long association with the Italian Navy, was founded in Florence in 1860. The company now manufactures most of its large, luxurious watches in Switzerland, and is one of luxury goods giant Richemont’s brightest stars. Panerais were made available to civilians only as recently as the 1990s, and its first models were the 44mm Luminor and Luminor Marina.
American actor and filmmaker Sylvester Stallone liked them so much that he not only wore them in his films, but also promoted the brand in America, which is still its biggest market.
Since taking over as its chief in 2018, Pontreau has doubled down on innovation with new alloys such as Esteel, made from recycled materials; turned the Submersible line into a standalone collection, and put a lot of focus on its Radiomir range. This year Panerai, which was ranked 18th among the top 20 brands in the Morgan Stanley 2023 watch industry report, will add 45 boutiques around the world. The watch maker, which opened its third and largest boutique in India at Jio World Plaza in Mumbai earlier this year, will soon open another boutique in Bangalore. In this interview with Hindustan Times, Pontroy, who was in Mumbai last week, talks about India’s potential as a luxury watch market, material innovation and the experiential watch business. Edited excerpts.
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Several news reports have claimed that with China facing a recession, luxury brands including watch manufacturers are increasingly looking towards India. Would you agree with that sentiment?
Not necessary. Every market goes through its own evolution and I don’t think it works the same way for all brands. Even though China is slowing down, it still remains an important market for luxury watches along with the US. And then you have tourism, which further complicates the picture. So, you get Hong Kong, which is slowing down, but Italy, which is doing very well. In that context, like many others, India is an important market for Panerai. We are growing a lot in Indonesia, Philippines, Malaysia, Turkey… These are markets where retail infrastructure has become more sophisticated, as has happened in India. Our biggest market is still the US, with Italy and Japan joint second. China is still in the top ten for us. Not India, but we are opening another boutique next week to add to the three boutiques we already have, and with the kind of growth I’m seeing in India, it should be on that list soon too.
What is your opinion about India’s luxury retail infrastructure?
It is growing rapidly, and I think India’s free trade agreement with the European Free Trade Association, which will gradually reduce import duties on watches, will help. The number of Indians buying luxury watches will be very high here. In this sense, India reminds me a lot of Thailand of about 15 years ago. Many Thai watch lovers always do their shopping in Singapore. Now everyone buys their own watches in Thailand, including tourists visiting the country. I hope the same will happen in India also.
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Panerai has focused on material innovation and sustainability. But how big a criterion is stability when it comes to buying a watch? Even if I were to buy a Panerai tomorrow, I would be guided primarily by its eye-catching appeal.
Truth. The large number of people who enter the Panerai universe do not necessarily do so because of our emphasis on circularity or sustainability. They are drawn to the Italian heritage, the sandwich dials, the big crowns… but with some people, they eventually gravitate towards our more high-tech range. Elux continues to push the envelope when it comes to recycling for Panerai, as well as being one of the key pillars of the brand.
Panerais has reportedly found favor with women, especially with the Luminor Dew range in 38mm.
Yes, we have gained many new customers with Luminar Dew, and many of them are women. In Asia, 25 percent of our customers are women, while worldwide, it is around 15 percent. Although we’re pleased that some of our watches are loved by women, we still remain a very masculine, tough brand.
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Before joining Panerai you were with Roger Dubuis. What kinds of lessons did you learn while leading an adventurous luxury watch brand?
Working with a brand like Roger Dubuis you learn a lot about the experiential watch business. You don’t have people who go into a boutique and say, I want to buy a double tourbillon for $250,000. So, you have to, in a way, conceptualize the whole process of the customer experience, the ritual of selling, to make it worth their time. I apply many of those lessons when designing the Panerai experiences we offer customers of our limited edition watches. These are comprehensive itineraries. Over the past few years we have adventured to the North Pole with the great explorer Mike Horn; Our guests have trained with SEALs; And we were working on a special experience with MS Dhoni, who has been a great friend of the brand before Covid struck.
