Patek Philippe Hasn't Been Hurt by Asia Slump Since It Never Bet on China

(Bloomberg) -- When Patek Philippe inaugurates its big-deal, 10-day exhibition in Manhattan's Cipriani 42nd street next summer, it won't just be teaching potential customers about its historic brand: It will also be thanking a market that has helped it stay strong while many competitive Swiss watch brands have begun to seriously slump.

"The American market is very important to Patek," President Thierry Stern said in an interview. "I remember in 2009, when China was really the place to go, I just decided not to go too fast. It's important, but we will take our time." The brand has opened only one store in the country, in Shanghai.

Swiss watch exports have declined for 15 straight months, the longest slump since these figures started being recorded in 1988, due to fluctuations in global currency markets and a serious crackdown on graft in China. Some brands are responding by introducing lower-priced products and offering direct online sales, but Stern says business is as good as ever for Patek and it has no plans to make more low-price-point watches.

"There was no way I would take pieces from America [to give] to China," he explained. "That's what happened to a lot of companies, they said, 'Let's go to China, it's a bigger market.' I don't think that's the way to work, not in a family business."

Patek also keeps its manufacturing tight. "Most other brands have been increasing in quantity—maybe too much. This is not what Patek Philippe has done. We have been very vigilant, saw what would happen," Stern said. "We decided really to be very cautious. We reduced slightly the amount of pieces we are producing. We didn't increase this year, neither next year.

The exhibition in New York, officially called the "The Art of Watches Grand Exhibition: Discovering the World of Patek Philippe," will feature looks at both Patek's history and its future. Watches with famous provenance from the Patek museum in Geneva will be on display, including pieces from collectors renowned among the American audience. (There will even be a timepiece that's over 500 years old.)

Watchmakers will be there, too, showing visitors how the delicate timepieces are made. And current watches—even ones as rare as the $2.3 million Patek Philippe Grandmaster Chime ref. 6300 will be on display. Finally, new watches will be launched in honor of the event, and collectors will eye them with glee.

To contact the author of this story: Chris Rovzar in New York at crovzar@bloomberg.net.

To contact the editor responsible for this story: Justin Ocean at jocean1@bloomberg.net.