S16 E07: Ilaria Resta, CEO of Audemars Piguet

[Music] You're listening to the luxury item, the podcast on the business of luxury and the people and companies that are shaping the future of the luxury industry. Here's your host, Scott Kerr. [Music] There are only a handful of brands that dominate the luxury watch segment, concentrating a large share of sales and profits. Included in that exclusive club is Odomar Piguet, one of the world's oldest and most exclusive luxury watch brands and renowned for its intricate craftsmanship, technical innovation and iconic designs like the legendary Royal Oak Timepiece. It has consolidated its place among the big four independent Swiss watchmakers, alongside Rolex, Patek Fili and Recharme Meal. Having just celebrated its 150th anniversary, Odomar Piguet remains family owned, the only manufacturer of its kind still in the hands of its founding families. My guest on the luxury item is Ylaria Resta, Chief Executive Officer of Odomar Piguet. Since taking helm at AP in 2024, Resta has delivered very strong results with a clear strategic reset in a difficult market. And that's no small achievement considering the extraordinary headwinds facing the industry. She is the first female CEO of Odomar Piguet, and one of only a handful of women running a top-tier Swiss luxury brand. Prior to Odomar Piguet, Resta worked for more than two decades at Proctor & Gamble, shaping some of the most recognizable consumer brands, and then moved to the manufacturing giant Firmanish as global perfumery and beauty president and CEO. While she comes unabashedly from outside the watch industry, Ylaria Resta has fiercely safeguarded and empowered Odomar Piguet's brand equity even further into the future. Welcome to the luxury item Ylaria. Thank you. Thank you so much for joining me. You know, last year marked Odomar Piguet's 150th anniversary. The company has celebrated it throughout 2025 with special events and the release of new and limited edition timepieces. You've stated that the 150th anniversary is less about nostalgia and more about setting up the next 150 years. Milestones like that are a reminder to think with a telescopic time horizon and invest now in capabilities that will keep the brand relevant a century from today. So with the luxury industry facing more frequent macro shocks, if you will, like pandemics and trade wars and geopolitical risk, rapid shifts in consumer sentiment and much shorter trend cycles due to social media and global connectivity, Amazon that once adopted every decade now has to adjust almost yearly while still preserving a consistent identity. So does the fog of more frequent disruptions and shifts make it harder to have a telescopic time horizon? Well, first of all, let me start by telling you that in 2025 we were extremely excited to celebrate the 150th anniversary of our company about the market day because you know, it's a moment where in a way we stop and we reflect on what has led us to where we are today, which is a very successful position. And in all these contexts, we can really define what are the strategies moving forward in a way to give justice and honor our past. In a way, this anniversary felt in a moment of big disruptions. So that in a way also helped us in giving us the opportunity and the means to think thoroughly about our future. So that I honestly believe that 2025 was a year of disruption and we need to assume uncertainty and volatility in a way will be the new norm moving forward. I think the way I like to think about how to get ready in this context is honestly, first of all, start by checking whether the strategies, the plans, make sense for the long term. And in a way, the stress test is a torture test of the strategies because normally strategies shouldn't change. We should assume that these are our guardrails and within those we develop our plans. And that's the work that I've done with the team to ensure that the choices were the right ones. And honestly, they are. We have been proving these strategies over the last two years when the biggest disruptions are happening. And given that, the second step is building a team that has the resilience and the agility to people in moments of crisis. That's important. And you know, I've been working also in creating a new team with my colleagues and new culture in the company. And what came as a key learning and key opportunity if you want in this context is hiring and recruiting and training people to be constantly learning. Always mindful of what's happening outside, years open, and make sure that the external context becomes an inspiration and not a barrier for growth. Yeah, and interviews you've described on a more p.k. as an authentic disruptor that must keep surprising people through bold designs, collaborations and complications that this disruption should be driven by genuine creativity, not by chasing trends like dial colors or celebrity tie-ins or just the short-term commercial wins. How do you protect and nurture a culture where watchmakers are allowed to experiment and disrupt? Well, innovation is the sole of AP. Since we started our founders really put an emphasis in going beyond the accepted norms of orology, creations, and definitely the intent was the opposite of chasing trends. If we think about also the manufacturing philosophy of our founders was all about protecting the ancients of our fair of handmade crafts. So actually they went against the opportunity of the industrial revolution of industrializing the production and instead they chose hands over machines. But at the same time, despite this is extremely traditional as we're working, AP at the same time pushed always forward with the new ideas, new designs, ideas that were sometimes completely out of the norm of the moment where innovations were launched. So definitely never chasing trends in a way setting for our self-aware on agenda. This is what we are after. And it's very important to separate and differentiate innovation from novelties and newness. We're not searching novelties as a mean. What we are searching is really an innovation that is meaningful, that makes sense for our clients that wear our watches. And it could be an innovation that makes sense and creates an impact functionally, looking at the function of the watch, the mechanical complication, the movements. But also we look at the emotional impact of our innovation. At the end of the day, this is an object our clients wear, not necessarily and only to indicate the time measure. But in reality they wear it because it gives them an incredible emotion. And the emotion can be transmitted through different dimensions of innovation. It's definitely there is an aspect of aesthetics. There is an aspect of visibility of the movement. It's incredible how much people love, just to see the components of the movement. There are certain parts of certain complications like the tour beyond that is honestly mesmerized because it moves. A bit like a heart of a human being. Then definitely there is a lot which has to do with the story of the movement. People who are passionate, our clients who are into really the mechanical of the watch, they love to understand how the movement was conceived. Especially when you come and visit us in the manufacturing, you will see the hands of the people assembling, developing these components. It's really the moment where you see, I understand why I love mechanical watches. What are some recent complications that best illustrate APs, creative innovation? I think it's the innovation we launched to celebrate the 150 years of university. It's a perpetual calendar as a complication. It's basically a calendar that gives you all the indication of the day, the date, for multiple years ahead without the need to adjust. It will recognize also the leap years, for example, as a complication. Now this complication is historical for the Marpegue. It's part of our history since the onset we have been doing perpetual calendars. But this year we launched a perpetual calendar that, basically, doesn't show any change. But when you look at the function, it's a real revolution. It's really breakthrough. Why? Because to set the functions of the perpetual calendar, you don't need to bring the watch to a boutique, or you don't need to use a very specific setting tool. to adjust the functions, but in reality you can do all the adjustment through the crown, the same crown that you used to set the time or rewind the watch basically. And that's a big revolution why? Because if you don't wear the watch for more than two, three days, the power reserve is exhausted and as such your watch needs to be rewind and readjusted. The problem is when you have multiple indicators on a perpetual calendar, then the issue is difficult to do it because you need to use such tools. Basically it's a very intuitive and ergonomic innovation that allows every owner of a perpetual calendar to adjust all the functions by himself. So I love this innovation because it's really, you know, it helps the living and the watch every day and allows people to wear it whenever they want it. One more PEGAY is the oldest watchmaking manufacturer still owned and run by its founding families. Its independent family controlled status is one of your most important assets. It also adds several layers of complexity on top of the normal challenges of growth, competition, and regulation. Your role as CEO is as much about managing people power and legacy as it is about strategy and numbers. How do those complexities impact decisions about strategy and hiring and investment? Well, you got it very well. The managing a family company brings in a way additional success criteria to the traditional ones of shareholders return. Definitely the financial health is a mean to a broader purpose in a company like Odomar PEGAY. Of course, we need to be solid on our financials, but the mission is another one. And the mission I received from the Board of Directors and the shareholders is ensuring the perennity of the company as an independent family owned company. So the idea is really we are today actually the biggest family owned company still in the hands of the founders, the family who founded the company. And that's for us a big pride and we want to keep this governance forever. To do so, we need to make the right choices, the right investment. Definitely the investments we make are a lot related to ensuring that the foundations are solid for the future. I give examples. Investing, we invest a lot in training in hiring watchmakers in developing watchmaking skills. We invest in also in technical schools because it's important that also students can have an access one day to watchmaking. And these investments are not only for Odomar PEGAY, these are investments for the entire community. We invest in innovation labs. We just created what we call the fab labs, the fabrication labs, which are basically conceptual laboratories to prototype future innovations that might see the light in 10, 15 years or even longer. So the horizon is really extremely long term but also the breadth of investment will be under Odomar PEGAY, strictly Odomar PEGAY. We invest a lot on the industry to make sure that mechanical watchmaking is a destination for people who want to work in this industry but also it keeps being a desire for people who will buy a watch. This year, for example, for the celebration of the anniversary, we created exhibitions in many big cities around the world and these exhibitions were not to portray only Odomar PEGAY. The intention was a free access to an exhibition to everybody who is interested in understanding and learning about mechanical watchmaking. And for me, we are looking at plans that goes beyond the next 15, 20 years. I just work with with my team and the colleagues at Odomar PEGAY, the plan for 20, 40, which you think about it is it's really far away but for us is kind of a midterm, not even long term. Odomar PEGAY's physical home is in La Brasue. It's been headquartered there for 150 years. The company has consciously chosen not to relocate to Geneva or a big city. You said that Odomar PEGAY's factories are places where legacy craft and innovation come together not just as production units. A little over a week ago was the official inauguration of the ARC facility that brings the company's local production teams under one roof for the very first time. About 700 people previously spread across different production sites will work in the building. Why is La Brasue critical to AP's identity? Well, we were born there 150 years ago and the reason why we were born there is because people freed to France, they freed to find freedom to find a place where they could express themselves and La Brasue at the time and it is today is quite far from Geneva. At the time, of course, the distance was even bigger given the lack of means of transportation that were very accessible in winter time especially. People who moved to live there focused their winter time when they were closing their houses not much more to do outside to really perfection the fabrication of small components to then assemble watches. This was in a way driven by the constraint of the weather and the difficulty in a land that didn't offer much more than cows. There was not much more in terms of natural resources. That is in a way trained these resilience and the spirit of freedom as well of the people working there that is so close and so intrinsic to our culture. We want to preserve that. That is why we stay close to our roots. We have a museum there on the same foundations of the houses of our founders. We basically live in the same and work in the same street where 150 years ago our colleagues were working and for us is extremely important. I personally go there all the time in Switzerland. For me it's important to work closer to our watchmakers. Indeed we have just inaugurated the Arc which is the name of our new manufacturer, site in Le Brasso. That intent was indeed to bring all the different ateles around the lake under one roof because also our philosophy of production is evolved. We realize how much is important to follow the entire flow of production of our watches throughout the different stages of development from the initial conception all the way to the assembling and shipping of the watch and quality controls. All these when it happens under the same roof allows people really to collaborate one another and to spot opportunities and improvements in the production and honestly it foster creativity because when we look at the best ideas, the best innovation we launch. They all came from the coffee area from discussions among our watchmakers, our people who challenge each other. These people have amazing passion. We all have passion for watches. We talk about watches even in the free time because that's what nurture our purpose in a way and that's why we like to have everybody and the same roof at the idea. Yeah, it sounds like your factory strategy is pretty much tied to your product strategy as well. Indeed it is and we cannot definitely separate the two. We have created a place that blends different types of our fairs and expertise in watchmaking because yes, indeed there is a mechanical part but there is also the decoration part which is critical for us and we have certain expertise that exists mainly thanks to watchmaking and these expertise require constant coaching and training. That's why we like the proximity of more senior people, more expert people also with young generations who come in and work for us or come to learn watchmaking. Swiss watch industry consultancy firm Lux consult and Morgan Stanley have worked together to bring their annual report of the Swiss watch industry. The newest report I don't believe has been released yet which talks about the turbulent 2025. However, I think it will confirm an ongoing trend of polarization that the leading privately owned brands, the so-called Big Four which includes AP, will capture about half the market share and are still growing in this challenging environment. It underlines that in a tougher macro environment collectors and wealthy buyers are concentrating spending on the most proven names. How do you maintain desirability and long-term health for the brand in an extremely challenging watchmaking environment? Well indeed I can confirm that also in a tough year like 2025, or the Marpegae managed to continue growing in terms of revenues, but was more important in Alonist. We grew in terms of appeal and interest among the younger generations, which is a proof of a perennity in a way of the relevance of a brand like Codemar Piguet. Certainly we need to continue earning these relevance at each generational change, but you know we serve at the same time in terms of clients for different generations. And these four generations are very different to one another. If you look at how much the junctures are interested in understanding the behind the scene, the production of the watch, it's important for us because we know how to serve them, we know how to engage with them, and that's a very different type of engagement that we have with the other generations, just to give you one specific example. So for us to say relevant and to keep the deserability high, it's all about listening, observing and knowing our guests, our clients. It's paramount. And we are at Odomar Piguet, very strong in that sense because we own our distribution channels. So our boutiques are managed by us. We have the direct contact with our clients and we serve every year clients that we know extremely well because we focus much more into the understanding of our clients we serve, rather than just the transaction of selling a watch. And that's extremely important because when you know your client, when you know also the rituals they have, you can help the serving ceremony, the selling ceremony. When we know the reasons why our client want to buy a watch either for themselves or as a gift, then we can really better serve them in terms of innovation we do, complications. For us, spending time with our clients, talking to them is a precious asset to ensure that the deserability stay alive. And then we have platforms like Music or Art which are platforms of the passion for Odomar Piguet, that is where we meet the passions of our clients. So simply by joining a music event, we have a chance in a way to share emotions with our clients. And that's extremely important because the moment you have a conemotional connection with your clients and you share a passion together, that's the moment where the biggest insights, the biggest ideas are created. And in fact, our clients talk about us as the AP family. It's very intimate, the definition of who we are for them. They feel at home when they come visit us, they feel are part of the family. And that's where the concept of the AP house was born. The AP house was really much more than a retail space. Certainly we have boutiques, but then we have a space in the AP house where we welcome our clients to spend time with us outside of the rigid setting of a boutique. We have in some places a ping-pong table, we have a pool, but we have a music corner. It's truly a space where people come just even to have just a coffee and talk about anything else but buying a watch. Then certainly watch making is a common interest. We share with them so it's impossible not to talk about it. But very often these houses become a place of encounter among our guests. We have an example of a couple who met at an AP house and then ended up getting married. So we play this role. You're match makers too. We are match makers absolutely. The shame I was not invited to select this place. I'm voting myself. I wish we can launch a new service here. Just an idea came by talking about it. Now, but juxtapcy is incredible because you know you put around the table, around the couch, different people that don't know each other. They just happen to be in the AP house at the same moment and then a friendship is born. So it's magic. This magic, this emotions cannot be captured in a transaction. They go well, well beyond. And that's how we stay relevant because at the end of the day we serve emotionally each generation that gets in touch with us. I have to talk about tariffs. The recent US tariffs hit Swiss luxury watches hard in the short term when the 39% tariff shock took effect in August the last year. Exports of Swiss watches to the US dropped sharply in September and October, forcing the brands to use a mix of tactics from selective US price increases to shifting volumes to neighboring markets. But with tariffs now at 15% things are shifting into for lack of a better term serious but manageable cost rather than an existential threat. AP raised prices modestly and set up an internal task force to manage different scenarios. What were some of the main lessons you learned from the tariff shock? Let me tell you that tariff was definitely one of the many shocks that we had in last year because one side indeed the tariff which represent an additional cost for us but also don't forget the cost of and the price of the gold that rose and keeps on rising as we speak. For us what matters also a lot is the fact that we have a currency, the Swiss franc which is appreciating considerably towards the other currency. If you only look at this tree is a massive impact on our cost. That's what we're going through this year and the lessons were all about again how do we adjust towards this unplanned cost and an unpredictable cost because in all honesty nobody thought that this would have happened. We did a budget for it. So definitely the first lesson is stay agile. Make sure that you have contingency plans for the worst case scenario which we had indeed on everything on the tariff, on the gold, on the appreciation of the Swiss franc. At the same time find always a buffer of growth and ensure that you have a diverse footprint by regions that help a lot on the currency devaluation for example. And I must say that we are diverse but we push diversity even further and we will have in fact new openings in the future to ensure that we are not overly exposing one region over the other. That's also very less than China that has posed an important threat in many companies that were overexposed to China which is not the case for us. And then the other thing is again innovation make sure that even in a tough context like the one of 2025 even despite all the extra cost keep bringing novelties. Don't cut costs by cutting the experience or the innovation rather cut the additional costs that are invisible to clients. This is a massive work we have to do on the back of its efficiencies but in all honesty we didn't cut any corner when it comes to offering the best experience to our clients or the best product. Actually the opposite we went even more. We invested more in exhibitions in new events in improved AP houses so paradoxically which is counterintuitive we invested much more and we did even more in such a tough context. What a Marpe gaze core line is Royal Oak. It's widely recognized as one of the most iconic watch designs ever produced and it's the central pillar of AP's business. It was launched in 1972 and designed by the renowned Gerald Gentre and essentially the modern luxury steel sports watch with a design that is still instantly recognizable more than 50 years later. Why has Royal Oak become a status symbol and Grail watch for many collectors often holding or even exceeding retail prices on the secondary market? Well let me start by saying that Royal Oak though indeed was a wonderful watch did not become an icon because it was designed with that objective in mind. Actually it was designed in the worst possible moment for the industry. It was back in 1972. It's in that moment that was the explosion of quartz watches. So watches that were extremely reliable in terms of time keeping much cheaper, much faster and easier to assembling. So it was a earthquake for the industry that led to two-third of the companies to disappear so it was really impactful. In that context when Gerald Gentre designed watch the obvious answer would have been to follow the trend of the market to make sure to adjust to the new landscape of competitors. In reality the Royal Oak did exactly the opposite. It was a true disruptor in the industry. It basically broke every single code of watchmaking. If you start from the shape, the octagonal bezel with the visible hexagonal screws which characterized the real look was quite unique in that context. The material, because the real look was conceived to be producing steel, instead of steel, which was also traduced in a context where watches in the luxury segment were mostly in gold. The price was at the same level as gold. The last monotrease dimension, because the watch was much bigger than the standard of the time. It was a 39 millimeter, so that it was nicknamed the jumbo, so big it was compared to the reference in the market. You put all these raised elements together and you braze for disaster. You think this is not going to work. In reality, it was shook up in the industry. It was a luxurious sport watch with a very unique position. With many contrasts, I must say, if you tell me what is really the thing that makes the Royal Oak special is the fact that it is constantly chasing contrast. It is the contrast of the light. You have these edges, the deep contrasts of materials. The fact that looks industrial yet is refined to the minimum level of details is sportly and elegant at the same time. It's not obvious to catch with one word. That's in a natural what the Royal Oak is for me. After time, it was adopted as truly an icon. Now, actually, it proved to be very flexible in terms of design. Because sometimes you can attach it. You need to keep it as it was conceived at the beginning, the same color, the same material. In reality, the Royal Oak was extremely versatile as a platform of innovation. We have done Royal Oaks in different materials, with different finishings, different dials, but it remained uniquely a Royal Oak. I think you can spot it from the difference when somebody is wearing the Royal Oak. The bracelet is very unique. The shape is unique. It has a witty character in it. While Royal Oak line remains the emotional and commercial heart of AP, there are other shapes and lines that are essential to the brand's evolution, like Code 1159 and Concept. Where do those lines fit in the AutomarPee gay narrative? Well, the concept, which is a bit younger than the code in terms of Year of Birth, was really born actually to be a one-off, a watch meant to host the innovation of the Marpega. It was basically a test to watch, to push the boundaries of movement or materials to the maximum level. Then it became a huge success because what our clients saw in the concept was truly the summa maxima of innovation for the Marpega. It was really extremely edgy in what we managed to do in terms of movements and complications, but also materials like recently the Forge Carbon. It took us a very specific space in the portfolio of the Marpega. When we launched something extremely innovative, never done before, normally the house where we do it is the concept. That's the role in the portfolio for concept. Code was born really to serve a specific clientele. It has this timeless elegance. At the same time, it looks simple like a round watch, but in reality it's much more than a round watch. The case is extremely complex, multifaceted, the sapphire that covers the watch is as different two edge curves. So it's a very complex watch, elegant at the same time, and it's definitely talking to clients that are looking for a more edgy, classical, but in a way forever relevant. A consistent Marpega theme you've conveyed is widening its appeal to women and younger collectors while keeping production tightly controlled, so scarcity and price positioning remain intact. How does this play out through AP's product and watch design offerings? Well, you mentioned women and younger collectors. Indeed, we are seeing a rise in interest among these two client segments, women and young generations, and interest for mechanical watches. And actually it's interesting because the average age of first time purchase of a mechanical watch is going down, which proves how much younger generations are understanding and loving the sour fare of mechanical watches, they understand the complexity, and they reward Audemar Piguet in terms of interest, thanks also to our edgy positioning and the desire to keep on being young and innovative. Women is the fastest growing segment for us, and in general, if we look at the macro trends in overall mechanical watchmaking, we expect women to represent 40-45 percent of the mechanical watch market by 20-35. So there is definitely a common interest of watches from men and from women. So indeed, our strategy is to ensure that we balance our existing client segment, but at the same time, we are opening the door to women and younger generations. And there is a misconception that women are interested in certain type of watches, which is by the way the false myth. Women like complications as much as men, the only issue was that complications were not available in smaller dimensions, hence women couldn't access certain complications. And in fact this year we have launched the perpetual calendar, which is a very important complication in a smaller diameter, 38-diameter, which can fit nicely also a women risk. And by the way, the most important change we are bringing to the market is we are no longer segmenting our products by gender. We do not talk anymore. Women watch, men watch. This is a wrong vocabulary that is actually feeding a narrative that does correspond anymore to the way women or even men, by the way, see themselves portrayed in terms of preference. We used to say watches are the jewels for men, in reality, men by happy lijewari, the same that men buy. And likewise, women like to adorn their wrist with a watch. So this is a very old schematic and superficial segmentation that we no longer use. And thanks to that, thanks also to this narrative, actually these year women have been representing for us the fastest growing client segment. Yeah, a couple of months ago you hosted a gathering of female clients at AP's headquarters for them to share their views and experiences. What were some of the key themes that came out of that gathering? Yeah, that gathering was quite an experiment for us, because we wanted to sit together with a group of women with different backgrounds, different nationality, different profession, and also different type of knowledge and interest on watches. Just to understand where they are in terms of insights, motivations, and you know, we didn't talk only watches. So the idea was not to do a brainstorming on watchmaking, not at all. It's very difficult out of such narrow sessions that you come out with anything interesting and deep. Instead, we spent time very informally to share our passions, to discuss around the table. Definitely there was a lot of watchmaking, but not with intent to brainstorm on ideas, but rather to stimulate a dialogue on why this object is relevant for you. What do you look for? What triggers emotions? You know, the best way to create relevance, again, is to talk to an emotional level. If you go in functional and if you talk features of a watch, you don't get very far. So the intent was really to create a community, which by the way we created our friends, extremely informal dialogue where critics can be raised suggestions and it was really a roundtable of thoughts that inspired us a lot. Last year, AP honored its 150th anniversary with a global campaign featuring four trailblazing women, including longtime brand ambassador Serena Williams, model and activist Winnie Harlow, and others. What is it about the people and stories you spotlight in your campaign? that align with Odomar Piguet's brand values? - Yes, when we choose a brand ambassador, so we call them friends of the brands in most of the cases because they truly are our friends and they see us truly as their friends. And we have this very intimate relationship. First of all, we start by choosing people that align with our values. And it's a very difficult choice because we are very complex, we have a complex character. We are not easy in the sense that we are multifaceted. We are witty, we are serious, obsessed about details, innovative, so finding somebody that matches Odomar Piguet values and culture is extremely important because we want to be aligned in the purpose. And that's what we did by choosing the ambassador. So we have like Serena Williams that has been a friend of the brand for many, many years. Once we find the right person, then the relationship normally starts from a common passion which is the passion for watchmaking. We want our people to be our ambassadors, to be close to our interests and desire to push watchmaking, quality and innovation further. So these dialogues are important for us, but they need to be grounded on this common passion. And Serena was always passionate and is passionate about watches. We like to hear our stories and desires. We have been accompanying her throughout her career and now as she jumped into a new chapter of her life, we love the idea of continuing doing projects together. But again, it's the key lesson and the key takeaway is alignment on values and cultural traits. The brand also invests in intimate formats like you were talking about the AP houses, which are experiential retail and social spaces in various worldwide cities, brand exhibitions like the House of Wonders and music events like Montro Jazz Festival, all opportunities for AP to reach younger and female guests. In growing the brand through the campaigns and these experiential formats, what kind of guard rails do you put up so you don't start encroaching on brand dilution? - Yes, everything we do is fitting with the overall mission of, in a way, pioneering time and continuing to open the doors of mechanical watchmaking to people and not only to clients. This is the overarching line that we keep preserving and that helps us also choosing what we do, the events that we like to do. The House of Wonders specifically fits very nicely this mission to open the doors of the Marpegae to people who are not only our clients. It's extremely important. As I said before, we are here for the next 150 years and to be relevant, we need to create interesting watchmaking and to do so you need to explain watchmaking because it's not obvious to buy a mechanical watch when you can see the time on your phone. So we need to go beyond the functional need which, by the way, theoretically doesn't exist. We need to talk to a passion that goes into an interchange of culture, art, history. That's what watchmaking is today. And that's what we did with the House of Wonders which was a massive investment also in terms of time of our people because we had watchmakers from Switzerland to explain movements around the world and that was an investment needed to create passion and to understand us. On the other side, you mentioned Montroje Festival or our Basel, these are not traditional sponsorship events. These are rather for us gatherings where we like to foster our creativity and our sort of exchange platform with artists. In both cases, Montroje, but also music and art in general are for us genuine interests of our people, our colleagues are really, really interested in these two fields because also in a way watchmaking is an art field. And we like to cross fertilize creativity and ideas with artists, being them in music, being them in art. Actually, we often bring those artists, we work with a labraso to talk to our watchmakers and together they talk about the creative process which is indeed leading to different outputs but sometimes it's extremely similar in the frustration or in the surprises of the creativity. And very often in both cases, one of the learning has been the best ideas sometimes are happy accidents. It just comes by mistake, maybe it's an unplanned outcome which was not conceived at the beginning of the process and under learning which I found extremely precious and I keep people, the time is never start the breakthrough innovation from a brief. You cannot ask people, okay, develop something which is really breakthrough, never is gonna happen. It happens by chance, it happens because all of a sudden somebody has an idea by a conversation, by a frustration for a certain feature. So that's extremely important. And for me the last lesson is don't time the innovation. Never put a deadline to the creators to say by this date you need to have a certain thing developed and that's the same for artists that work in the field of art or music, inspiration is critical. And that's what we find extremely interesting when we put together artists from different worlds. That's where we understand how can we really foster the creative process better. - 2025 was a year that many hadn't expected to be as challenging as it was in the end. It was a year that tested the metal for brands and executives, brands like Odomar Piguet that have managed to remain aspirational creating products desired by enough watch consumers that sales continue to grow due to both price increases and sustained demand. Anything you can share about Odomar Piguet's 2026 and 27 playbook that will continue to sustain desire ability, like where will your focus be in the next 12 months? - Well, first of all stay tuned because we will have next in the next a few weeks some interesting product launches, some quite surprising and breakthrough that will be still inscribed into this story of pioneering time. Then we will continue on the journey of opening the doors of Odomar Piguet to more people. We will participate in April to Watches and Wonders in Geneva. - Very. - This is the first time we participate with such an important watchmaking event at large and the way we will participate is with the same philosophy of education, entertainment and cultural connection with everybody who's interested in learning more about Odomar Piguet and watchmaking. We will actually also open during the watches and wonders and then we will stay for three months further. The AP Lab, the AP Lab is a format quite innovative because it's not a retail space, we do not sell watches there is truly a laboratory of learning where people are invited to come and understand the movement, how it works, have a chance maybe to assemble a simple part of the movement, try some watches and talk to watchmakers. So it's truly a laboratory of engagement, typically students, kids, everybody loves them. It's extremely interactive and playful and we will launch on a broad scale a program of master classes for people who want to really learn the theory or the practice of watchmaking. We will open up lessons with our watchmakers, with different level of expertise depending on the desire of the person. What else? We will open new boutiques. Actually we have launched a new concept for the boutique which is inscribed again to the same philosophy of opening the doors where people can enter the boutique, see some timepieces and by the way, an exchange with our people, with our boutique managers, without necessarily sitting at the table and buying any watch at all. So it's really an space of exchange. Alaria, my final question is the luxury item question which I ask, oh my guess. So if you were stranded on a deserted island and you could only have one single luxury item with you, what would that luxury item be? It can't be any form of air, water transportation to get you off that island or anything that requires mobile service so you can call somebody at the headquarters to get you off that island. It's just you on this lonely island by yourself. What would that one single luxury item you would like to have with you? Ah, that's a tough question. But choosing for a woman. carry on thousands of luggage. Okay, well, I have to go for the Audemars Piguet Perpetual Thunder Watch. Why? Because it makes sense if I have no other way to tell what time is it and I cannot adjust it. Actually, it's the only tool to be always on time to know which deities of which month, which week of the year. So, all the information will be there for the next hundreds of years. So, I think I can survive in the Thailand forever. I love that you're on brand, which is the best. Of course. Alaria Resta, Chief Executive Officer at Audemars Piguet. Thank you so much for joining me on the Luxury Item. Thank you. That's it for this episode of the Luxury Item Podcast. Thank you so much for listening. If you found this useful and entertaining, I would be really grateful if you can share it with a friend or colleague. I would love it if you subscribe so you never miss an episode. And while you're there, be sure to rate and review us on Apple Podcast. It really helps other listeners find us. The Luxury Item Podcast is a production of Silver Tone Consulting. I'm your host, Scott Kerr. Until next time. (upbeat music)