Karl-Friedrich Scheufele: “Our average price will further increase significantly in 2024”

The beginning of 2024 didn't start with the same fervor. Twelve months ago, the watchmaking sector still experienced a frenzied demand linked to the boiling secondary market. Since then, the bubble has burst. Demand has normalized, and highly sought-after models from industry giants like Rolex, Audemars Piguet, Richard Mille, and Patek Philippe have become less scarce. Like a domino effect, all other brands have experienced a slowdown. At Chopard, demand was particularly strong in 2023 for two flagship collections: the Alpine Eagle and the Happy Sport. According to Karl-Friedrich Scheufele, co-president of the brand alongside his sister Caroline Scheufele, these two lines remain very promising in 2024, although adjustments in terms of volumes will be necessary for other collections. He explains in an exclusive interview the brand's strengths on which he intends to capitalize. Among these, research and development related to material recyclability and the increasing prominence of Chopard's ultra-customized models through the métiers d'art.

What assessment do you draw from previous Watches & Wonders editions and what are your expectations for 2024?

We are not veterans, as 2024 will mark Chopard's third participation in Watches and Wonders. The first year was a discovery; the second was about opening to the public, something I personally advocated. It was a great success. This year, three days are dedicated to the public, which is an excellent initiative. Watches and Wonders is an essential meeting to see our partners. Physical meetings, networking, being able to meet so many people from around the world, is the cement of watchmaking. If the 2023 assessment was good, in 2024, we aim to further improve the quality of the public's experience in our space. Last year, there was such enthusiasm that, for safety reasons, we had to limit the number of people, which is quite unfortunate. This year, we have designed a specific layout that will allow the public to better enjoy the brand. I particularly liked seeing that the audience was young, even coming from abroad (editor's note: The average age of the audience was 35 years old). I must say we were surprised by the turnout."

Do the costs associated with Watches & Wonders also skyrocket?

Unfortunately, I must say that costs have soared, and that's concerning. These increases range from parking spaces to everything else…

So, the initial commitment wasn't kept?

Frankly, in some cases, no. I fear that we won't manage to find common ground. During Covid or coming out of the pandemic, there were many promises, and now, the bidding war is back. Talking about inflation to justify cost increases is somewhat of an excuse. Certainly, we're not yet in the bidding war that brought about the end of the Baselworld era, but we need to be cautious.

In February, watch exports declined. The year 2024 sees a return to normal demand, at a minimum. What observations do you make at Chopard?

Yes, the bubble, fueled by speculation on certain watch models and brands, is no more, and that's a good thing. Watchmaking must primarily cater to enthusiasts, passionate individuals who want to wear their watches. But it's also not the goal of a good bottle of wine, as I've always known this issue, also being in the wine trade with Le Caveau de Bacchus, where we have the opportunity to represent Romanée-Conti, for example.

How was business in 2023?