Why Audemars Piguet's Business Model is so successful?

Audemars Piguet is a renowned Swiss manufacturer of luxury mechanical watches and timepieces. Founded in 1875 by Jules Louis Audemars and Edward Auguste Piguet, the company has a rich heritage of crafting intricate and sophisticated watches that are admired globally. Headquartered in Le Brassus, Switzerland, Audemars Piguet is one of the few watch manufacturers that is still owned by the founding family. The company is widely recognized for its exceptional craftsmanship, innovative designs, and the use of premium materials. Their collection includes a variety of models such as the Royal Oak, Royal Oak Offshore, and the classic Audemars Piguet collection. The brand's commitment to quality and precision has earned it a place among the top luxury watch manufacturers in the world. Business Model: Audemars Piguet operates on a business model that is centered around the creation of high-end timepieces. The company invests significantly in research and development to ensure the production of innovative designs and mechanisms. They source premium materials and employ highly skilled watchmakers to assemble and test each timepiece, ensuring the highest level of quality and precision. The company also invests in marketing and branding activities to maintain its luxury image and attract high-end clientele. In addition to selling watches, Audemars Piguet also offers repair and maintenance services, ensuring the longevity of their products and customer satisfaction. Revenue Model: Audemars Piguet's primary revenue source comes from selling its luxury watches. These watches are sold at a high price point, reflecting the quality, craftsmanship, and brand prestige. The company sells its products through a network of authorized retailers located around the world and through its own boutiques. Audemars Piguet also generates revenue from after-sales services, including maintenance, repair, and customization of watches. This provides an additional income stream and helps build long-term relationships with customers, foster brand loyalty, and promote repeat purchases.

Social impact: self-transcendence

Life changing: heirloom, affiliation/belonging

Emotional: design/aesthetics, badge value, attractiveness

Functional: quality, variety, sensory appeal

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Best in class services:

When a firm brings a product to market, it must first create a compelling product and then field a workforce capable of manufacturing it at a competitive price. Neither task is simple to perform effectively; much managerial effort and scholarly study have been dedicated to these issues. Nevertheless, providing a service involves another aspect: managing clients, who are consumers of the service and may also contribute to its creation.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Make and distribute:

In this arrangement, the producer creates the product and distributes it to distributors, who oversee the goods' ongoing management in the market.

Ultimate luxury:

This business approach is based on product distinctiveness and a high level of quality, emphasizing individuals with significant buying power. The expenditures required to create distinction are covered by the comparatively high prices charged, which often allow for very high profits.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Selling of branded merchandise:

Merchandising, in the broadest definition, is any activity that helps sell goods to a retail customer. At the retail in-store level, merchandising refers to the range of goods offered for sale and the presentation of those products in a manner that piques consumers' attention and encourages them to make a purchase. Like the Mozilla Foundation and Wikimedia Foundation, specific open-source organizations offer branded goods such as t-shirts and coffee mugs. This may also be seen as an added service to the user community.