Bennahmias must show Hublot how to create scarcity
Bennahmias, former Audemars Piguet CEO, has been hired as a consultant by Hublot to address the brand’s sharp decline in turnover and watch output. Recent figures show Hublot’s global revenue falling 38% from CHF 744 million in 2022 to CHF 460 million last year, while production dropped from 54,000 to 32,000 pieces in three years. The luxury watchmaker is struggling with waning demand for oversized models, reduced sales in key markets such as Russia and China, and a broader market contraction that has pushed secondary‑market prices down, with a 0.8% decline recorded in the latest quarter. The strategy draws on Bennahmias’s past success at Audemars Piguet, where he engineered scarcity to boost the Royal Oak’s secondary‑market value by up to 44% above retail. For Hublot, the plan emphasizes regaining control of retail distribution, limiting new releases, and focusing on a smaller, high‑impact core collection that can command premium resale prices. By creating genuine waiting lists and driving secondary‑market demand, the goal is to restore profitability and reposition Hublot as a coveted investment brand ahead of its 50th anniversary in 2030.
Buying Time Analysis: The article highlights how Bennahmias’s expertise in creating scarcity can revitalize Hublot’s struggling sales by strategically limiting supply and boosting secondary‑market prices, offering a blueprint for turning market downturns into profitable demand.
