Why Watchmaker Patek Philippe Has No Innovation Budget

The Sterns, who since 1932 have owned Patek Philippe, the most prestigious of Swiss luxury watch brands, are no different and have the beginnings of a new tradition for transferring responsibility of their enterprise from one generation to the next The older Stern said for all the family to hear, "Now, I give you Patek Philippe." Patek Philippe sits at the top of the Swiss watchmaking mountain with an entry-level price point of around $20,000 and six or even seven figure sums for many of the 62,000 watches it produces every year The brand inspires the envy or admiration of competitors and fanatical loyalty from its well-heeled devotees-some of whom own several Patek Philippe timepieces.

Patek Philippe does not reveal annual income figures, but as Thierry approaches his tenth anniversary as president, he offers this: "We have spent half a billion dollars to build a new factory," he said At Patek there is no innovation budget and we do not have a budget for creation Then I will be gone, but Patek Philippe will be still there. Source