One of the challenges for the watchmaking sector is to become more attractive again with its traditional customers and in particular that of Western Europe. The observation is there: the prices charged, whatever the segments, gave themselves up and ended up being completely disconnected from the reality of customers. Because we may take the problem by all ends, the acquisition of a pretty watch is anything but a forced purchase. And when the other spending stations increase, the budget dedicated to watches ends up being crossed out at the moment when prices are at unacceptable levels following rarely justified and very often opportunistic pricing revisions. The problem for brands is that they are in a trap in which they have put themselves on their own. Prices are no longer in line with the market but they cannot be lowered because in watchmaking, the price drop appears as an observation of failure and constitutes a very bad signal in terms of brand image.
In this context, I was able to appreciate the Panerai’s approach concerning one of its strategic models, PAM 01312 (and its small sisters with different dial colors The PAM 01313 and PAM 01314), the Luminor 44mm automatic with a 3 -day walking reserve. This watch, one of the brand’s bestsellers has just been replaced by the PAM 03312 reference that I had the opportunity to discover during the last edition of Watches & Wonders. What do Panerai do it? Quite simply, the manufacture has improved its model by making significant modifications, without aesthetically watch it is transformed and while strictly holding the same price (or 8,900 euros with the steel case).
The movement is now visible, the case is finer, all with better sealing:
Adjustments and improvements are indeed multiple. First of all, the waterproofing goes to 500 meters which values the watch and makes it more legitimate given the history of the brand and the luminor. Then, the closed background was replaced by a sapphire background which gives the possibility of appreciating the automatic movement. The latter has been changed, Panerai now using the caliber p.980 which is finer than the p.9010 which also makes it possible to reduce the thickness of the housing (while increasing the waterproofing). Note that the p.980 is equipped with a second stop which also brings a positive element. From an aesthetic point of view, the dial was purified, the “automatic” mention has been deleted and the perceived quality has been reinforced thanks to a small detail which is important: the date window is beveled which is more pleasant to the eye. Finally, the super-luminova is more powerful and effective and the bracelets are equipped with the Click Release system to make the change of bracelet simpler. Each evolution taken separately is not revolutionary. But considered jointly, they transform the watchful content of this automatic luminor. Thus, PAM 03312 appeared to me much more successful and consistent than its predecessor, all at the same price.
Panerai, through this passage from PAM 01312 to PAM 03312, worked to improve the quality/price ratio of this reference. Failing to lower prices, the process consisted in offering much more at a constant price. This is interesting and can be relevant because customers do not analyze the prices in isolation. They judge them according to the content, the competition.
Few changes on the dial side but the bevelled date window improves perceived quality:
I sincerely think that watchmaking must today look at the subject of the attractiveness of its offer. You have to stop finding excuses for poor commercial performance through exogenous factors such as the geopolitical situation. The main causes are endogenous and one of them is the feeling perceived by customers that brands offer less with higher prices. This trend must be reversed and it is urgent to put the substance in the offer in the first place. This is what Panerai wanted to do with his 44mm automatic luminor 3 days. So I hope that this phenomenon will increase and that we will see more brands are part of this approach, whatever the segment. For example, there is a lot to say about the finishes of the movements 3 needles with manual reassembly of the high watchmaking brands especially there too when we consider the very serious prices which are practiced. Working the content of the offer and stabilizing prices is an objective that must concern all brands and segments.
