In the context of the global meltdown, how did Panerai figure in 2008? How do you see 2009 shaping up?

2008 was a positive year for Panerai. The first half was very good despite the drop we had in the United States and Japan. Of course, for 2009, it would be very difficult; we have to work a lot. But I feel good because our products are well accepted by clients and the reactions to our new launches have been good.

What are the trends for 2009? Do you see watch brands moving towards the basics rather than focusing on flamboyance and bling designs?

Things are not too different compared to the previous year. You can innovate in the watch industry. But that takes time. When a new product comes up, there are 3-4 years of work behind it. But right now, frankly speaking, I do not see any specific trend.

Geographically, two big markets have been most affected by the meltdown, the USA and Japan. Do you need a different strategy anywhere in these markets as they’re not doing well?

First of all, I think the meltdown is still
not over around the world; it is just the beginning. Europe and Asia are going to be affected even more. As the economies of countries are interdependent on each other today, you cannot think that if you have a drop in Japan, the consequences wouldn’t be felt elsewhere. So it is true that we should encourage our results in other markets. But we have to pay attention and not put in too much because the right balance has to be maintained. For instance, Panerai Europe constitutes 38%-39% of our total volume, while USA is 18% and Asia, including Japan, should be
around 25%.

We have just seen some of the key launches this year. Could you take us through the P.9000 series and tell us why you developed it?

For us, it is strategic, because we started with the top of the range, in terms of our

in-house movement. And now we
need to fill this kind of segment
because the entry level is constituted
by the ETA movements. The top level
is occupied by the high qualified movement and this is what we fill.
And because this is competitive, it is resulting in another segment of
watches which we can declare as
entry luxury with manufacture
movements.

Was this planned because it is something which I think comes at the right time considering the global meltdown?

In any case, this is coming at the right time. When you lack in any segment in
the market, you need to fill that up.
We started to work on this project
four years ago and now we are able
to propose something for a good price.
So, what is the starting retail price
for this?

Euro 4,900 to Euro 5,700. And what has been the success rate for the Ferrari line in the past three years?

Until last year the results were very
good. With the crisis this year, such brands are the first to suffer in the watch industry.

Is it true that strong brands with strong values emerge even stronger after crisis?

Of course. But you have to have an assortment because when there is a crisis, you can work with your current products along with the other.

How do you react to Ralph Lauren’s comment that ‘The luxury of Panerai grew out of its heritage and the purposefulness of each detail. Their form and beauty were secondary to
their function’?

It is a positive comment. He personally came here to buy six watches recently.
He continues to collect Panerai watches. He is one of our fans.

Could you take us through your association with yachting and the Panerai Classic Challenge? How has
that evolved and what are your plans
for them?

Four years ago, we started to promote such events because we firmly believe
that Panerai comes from the sea. And
we are convinced that this is the right
way to keep the exclusivity of the brand,
to continue to promote the brand
through the natural element of the
brand, the sea. It is not the modern
sailing boat but those classic
long-lasting boats, which are hundreds
of years old. You need brilliant craftsmanship and the knowledge to
make them, very much like the
movements and the watches. We
bought a Scottish boat named Eilean
two years ago, which is being
refurbished in Viareggio. The boat was built in 1956. That’s the year of the first Panerai watch. We will use the boat
to participate with Regatta and promote events.

Currently, you have eight base movements. How many are you getting into in the next three years?

I think three.

How integrated is your production at
your manufacture at Neuchatel?

Basically in Milan we realise the design, the strategy of the products. And then in Neuchatel we transform them into technical projects and developments.

So now do you actually compare yourselves with other manufacture
brands like probably Audemars
Piguet or Jaeger LeCoultre from
your own group? In terms of manufacture movements, how do you compare yourself with them?

I do not want to compare Panerai with
the Gods; Jaeger LeCoultre and Audemars Piguet have a long history.
But they are a good incentive for us to
try to join them.