The Swiss watch brand Richard Mille is no longer unfamiliar to the upper class. To own a limited edition timepiece, one must be prepared to pay an average ranging from around $300,000 to several million dollars. Notably, the majority of these ‘superlative’ collections are favored by Asian tycoons, including those in Vietnam.
What has propelled this brand to fame within just two years of its establishment, and why are countries in Asia, both in general and specifically Vietnam, willing to invest huge sums, in the tens of billions of Vietnamese dong, to acquire a luxury timepiece?
Since when has the Richard Mille watch brand been established?
This is a brand named after its founder, Mr. Richard Mille, born in 1951 in southern France. In 1974, after graduating with a degree in marketing from IUT Besançon, he applied for a position at the watch company Finhor, where he first nurtured his passion for the industry. Through dedication and focus, he quickly rose to the role of export development manager at a young age. However, in 1981, the company was acquired by the Matra Group, an industrial company specializing in automobile and aerospace component manufacturing. At that point, Richard Mille took on the role of sales director. Despite the success in his career, his insatiable desire for learning and exploring his true passion led him to join the renowned French jewelry brand Mauboussin in Paris in 1992. He started as the head of the watch department, later progressing to become the branch director of the production department. Eventually, he became the CEO and a major shareholder in the jewelry company.
In 1998, due to disagreements with the board of directors regarding the brand’s development strategy, he proactively left the Mauboussin group. Around the same time, he crossed paths with Dominique Guenat, a long-time business partner and also the grandson of a renowned Swiss luxury watch brand. The two not only have a professional understanding but also share a passion for racing cars, aviation, mechanics, and the art of watchmaking.
Photo. Mr. Richard Mille and his co-founder Mr. Dominique Guenat
This led him to contemplate collaboration, and they subsequently established the Richard Mille brand, setting up their initial headquarters in Les Breuleux, Switzerland, in 1999. However, at that time, the company had not yet developed any product lines
Why does the newly launched product attract the upper class?
With a perfectionist nature, a penchant for distinctiveness, and 26 years of prior industry experience, he realized that the market at the time lacked specialized products for high-end athletic fashion. Simultaneously, he was acutely aware that this represented a highly promising market for reaching the upper class. Therefore, he was willing to take it slow and work alongside experts in Switzerland to conceptualize product development ideas with the aim of creating unique and distinctive designs.
Photo. Factory technical room
His goal is to combine aviation architecture and car racing to create a distinctive, visually appealing, and luxurious design. Additionally, the product needs to meet certain criteria such as precision, excellent shock resistance, durable materials, extremely lightweight (less than 30-40 grams), and easily flexible. When worn, it should provide a comfortable feeling along with outstanding features. Importantly, it offers everlasting utility, remains timeless, and is rare worldwide.
Photo. The experts are working from their headquarters in Switzerland
This was also an exceptionally challenging task for his team because, at that time, technology was not highly developed. He recalls, “We had to discipline ourselves rigorously, sometimes even shedding blood and tears”. They worked tirelessly for a continuous two years and eventually succeeded in introducing their first product line, named RM001 Tourbillon, through a complex and labor-intensive crafting process, executed by a team of young artisans. Initially, only 17 watches were produced, each priced at 200,000 CHF equivalent to approximately 220,000 USD in today’s currency. This strategy not only created a sense of scarcity for potential buyers but also allowed them to gauge market feedback while ensuring the easy sale of the new product line. He had meticulously prepared in advance to introduce customers and persuade them by offering various privileges and benefits, such as lifetime warranties, the option to resell, or guiding them toward an investment opportunity for profit with limited editions, and more. As a result, the first product line quickly sold out.
Photo The RM001 Tourbillon model was first introduced in 2001.
Furthermore, he knew how to leverage the advantages of PR to develop the brand image through influential athletes, bringing the Richard Mille watch brand closer to the upper class. The brand ambassadors he chose were mostly at the top of the sports world at that time, including renowned Spanish tennis player Rafael Nadal, Brazilian F1 driver Felipe Massa, professional American golfer Bubba Watson, and more. This generated significant buzz and garnered attention from the media worldwide. In addition, leading experts praised the precision, meticulousness, and fulfillment of all quality standards. They remarked, “Richard Mille has set records in terms of innovative design and rapid consumption for luxury watches.” As a result, the Richard Mille brand became famous and attracted the attention of the affluent since its debut in 2001.
The reason why Asians are eager to purchase limited editions, such as the Richard Mille brand
Thanks to Richard Mille’s strategically well-planned, clearly focused, and meticulously prepared strategies, this has ensured their success and allowed them to stay ahead of the game. They have consistently introduced increasingly expensive and high-end products, including limited editions worth millions of dollars, which continue to captivate a global customer base and have earned them numerous prestigious awards. These accolades include the Aiguille d’Or (Golden Hand) Award, Horological Revelation Award, Innovation Prize, Sports Watch Prize, Revival Prize, Jewellery Watch Prize, and Brand of the Year, among others.
Photo. One of the stores of the Richard Mille watch brand
When the reporter asked, “Is the pricing too high” he responded, “Typically, each product takes at least 2-3 years or 6-7 years, depending on the complexity of each type. We have thoroughly researched and meticulously prepared right from the start, so the pricing is entirely reasonable”.
Moreover, Richard Mille also demonstrated that customers can make a profit even after using the watch for 18 years from the production date. “Experts from Christie’s and Sotheby’s informed me that our watches meet all the requirements for a good investment, including quality, authenticity, and rarity. In the secondary market, you won’t find many Richard Mille watches, which is an excellent sign. However, based on the limited quantities I’ve verified, they still retain their value. Although we have significantly increased the prices due to rising annual costs, this has led to increased value for the watches. Nevertheless, any RM002 on the secondary market can still be resold for approximately $150,000 USD to $200,000, so buyers can profit from this timepiece”.
Photo. Portrait of Richard Mille, the founder of Richard Mille.
According to the latest report from the Swiss watch industry by Morgan Stanley and LuxeConsult, despite producing a maximum of 5,300 watches per year, the brand achieves an average annual revenue of at least $1.5 billion, positioning it among top luxury shopping brands. Notably, according to information from Richard Mille, the Asian clientele, including those in Vietnam, often prefer to purchase higher-value products compared to other continents.
Photo. Many Asian celebrities still use this brand.
According to professional assessments, Mr. Alexandre Bigler, Head of Asia-Pacific for Watches, shared, “People who are accustomed to using luxury items often have a deep understanding of rarity, which frequently leads to higher resale values. This not only transforms Richard Mille watches into extravagant accessories to affirm wealth and status within the elite circles but also signifies a highly promising investment”. In particular, Asians tend to have a strong inclination to store and preserve jewelry made of gold for personal security. “However, they are reluctant to wear jewelry worth billions of dollars as it can be cumbersome and unsafe when going out. On the other hand, diamonds tend to depreciate in value when worn, while Richard Mille watches are lightweight and serve as a means to safeguard their assets, without worrying about theft since they can be resold even without proper documentation”, affirmed a representative from a Vietnamese store.
Mr. Alexandre Mille, the Director of the Richard Mille brand, commented, “Asia has been very active in the life of the brand”.
Photo. Mr. Alexandre Mille, son of Mr. Richard Mille, is currently succeeding his father in the business
He stated, “To cater to our Asian customers, we are expeditiously preparing to launch our second store in Singapore this October. This location spans 930 square meters, occupies a prime central position, and is regarded as our largest boutique in the world”.
Photo. Richard Mille is preparing to launch its second store in Singapore.
By TTVN Press
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