Audemars Piguet says a risky, brightly colored collaboration with Swatch has done more than ignite debate in the luxury world — it has helped drive record demand for the storied Swiss watchmaker at a time when much of the broader industry is under pressure.
The company's chief executive, Ilaria Resta, said the Royal Pop launch in May has produced "a record month every month since the launch," with sales, website traffic and boutique visits all surging after the debut of the $400 timepieces. The collaboration, which paired Audemars Piguet with Swatch and attached the watches to lanyards, was designed to be playful and accessible, but it immediately set off a frenzy online and in stores. Swatch even posted a message on Instagram asking customers "not to rush to our stores."
For a brand whose ultra-rare watches can sell for more than $30,000 and whose most complicated pieces can exceed $200,000, the move was seen by some in the luxury sector as a dangerous gamble. Critics argued that the collaboration risked cheapening Audemars Piguet's image and undermining one of the most revered names in Swiss watchmaking, a member of the industry's so-called "Holy Trinity" alongside Patek Philippe and Vacheron Constantin.
Resta, however, said the reaction has validated the company's strategy. She said the launch generated more than 20 billion mentions and conversations on social media and drew millions of younger consumers into the mechanics and culture of horology. Even some of the brand's most established collectors, she said, reached out to request their own Royal Pop.
"We've had a record month every month since the launch of the Royal Pop," Resta said. "Our website crashed. We have nonstop visits in our boutiques. Simply by putting the spotlight on an object and a mechanical movement, all of a sudden you discover the world of Audemars Piguet."
The results come against a difficult backdrop for the Swiss watch business. The industry, estimated at about $50 billion, has been squeezed by weakening demand, shifting consumer habits and pressure on the broader luxury market. According to a report from Morgan Stanley and LuxeConsult, the number of Swiss watches exported globally has fallen by more than half since 2011, while total sales dropped 1.7% last year.
The market has also become increasingly concentrated at the top. Of roughly 450 Swiss watch brands, the top four — Rolex, Patek Philippe, Audemars Piguet and Richard Mille — now account for about half of industry sales and roughly 76% of profits, the report found. That concentration has left many smaller and mid-tier brands struggling to compete, while the most exclusive names continue to benefit from scarcity and prestige.
Audemars Piguet itself produces only about 53,000 watches a year, far fewer than Rolex's more than 1 million, according to Morgan Stanley. The scarcity has helped keep demand elevated: Royal Oak models typically start at around $30,000, waitlists are long, and preowned AP watches often trade at 30% or more above retail because supply is so limited.
Resta said that old assumptions about luxury watchmaking — that brands can rely on heritage, older clientele and elitist marketing — are no longer enough. "Either you dare or you die," she said.
She described the company's approach as "radical openness," a strategy aimed at broadening the appeal of Swiss watchmaking without abandoning its technical identity. Alongside the Royal Pop collaboration, Audemars Piguet is rolling out AP Labs, pop-up experiences designed to immerse visitors in the world of mechanical watchmaking. Guests can play watch-themed games, learn about movements and complications, watch artisans at work and even try assembling tiny components themselves.
No watches are sold at AP Labs, Resta said. The purpose is education and recruitment, especially for an industry that remains short of skilled craftspeople. In her view, the future of luxury watchmaking depends not only on preserving exclusivity, but on making the craft visible and relevant to a new generation.
"This is a category that is born and fueled by love," she said, underscoring the company's belief that attention, curiosity and emotional connection may now matter as much as rarity alone.