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Luxury Watch Factories As Brand Storytellers

New York Times Business •
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Luxury watchmakers like Audemars Piguet are investing heavily in new manufacturing facilities that serve as storytelling tools rather than just production centers. The company's "The Arc" in Le Brassus, Switzerland, accommodates 700 employees and focuses on developing mechanical watch complications. This trend reflects how brands are using their manufacturing spaces to create deeper connections with clients by showcasing craftsmanship and expertise.

Across Switzerland, a construction boom is underway as watchmakers race to vertically integrate operations. Hermès is developing an 11,000-square-meter site in Le Noirmont, while Hublot prepares to move into its 13,650-square-meter H3 facility in 2027. Bulgari expanded its production site by 1,000 square meters in Saignelégier. These investments follow Hermès watch division revenue more than doubling in six years to €549 million in 2025.

The shift toward vertically integrated manufacturing represents a strategic response to the "premiumization" trend in luxury. Oliver R. Müller of LuxeConsult notes that telling clients "you're a manufacture" communicates expertise and legitimacy, especially at the high end. This approach transforms the client relationship from purely commercial to cultural or intellectual, with manufacturing sites serving as powerful brand ambassadors that justify premium pricing.