BY JAY AQUINO

SEPTEMBER 25, 2024

If you are a watch collector, you most likely know the famous Nautilus watch. If you are new to the world of horology, it’s pretty much the Himalayan Birkin of watches. If you don’t know what that is either, let’s just say that Nautilus is pretty much the equivalent of Mayfair and Parklane in the game of Monopoly. Patek Philippe is the global leader in luxury watches, and their timepieces have a certain allure that most luxury connoisseurs can't resist. They are a brand that invites you to come visit their house, but at the same time, they have no intention of letting you in.

The Discontinuation Of Nautilus 5711

The Patek Philippe Nautilus is one of the most coveted watches today, with an average waiting time of eight years. Launched in 1976, this timepiece was designed by the renowned watch designer Gerald Genta who is known for designing the Audemars Piguet Royal Oak. The Nautilus Reference 5711 in particular, is a steel self-winding where the majority of its parts are mostly hand-finished, and it features an extremely accurate movement with a calibre 324 SC, which is fully manufactured in-house. It was reportedly discontinued back in 2021 and was permanently removed from Patek Philippe’s website earlier this January. On October 18, the iconic Nautilus made a huge comeback in 18-karat white gold, which shocked the luxury world. Since its inception back in 1976, Patek Philippe has reinvented the Nautilus and continues to capture the hearts of watch collectors across the globe.

According to Patek, the main reason why they discontinued the production of Nautilus was because they believed that the steel watch’s popularity was just a bubble, and by contributing to its growth, the company would be contributing to the damage caused by an eventual burst. Nowadays, more luxury consumers have realised that gold watches are better investments as gold holds its value. Paul Altieri of Bob’s Watches stated that the demand for gold watches has increased throughout the years due to the price increase of gold. Patek without a doubt knew the growing demand for gold watches, which also led them to the decision to discontinue the watch.

The discontinuation of Nautilus Reference 5711 created a desire and seduced their target audience under Patek Philippe’s spell. According to Forbes, desirability, longing, and passionate imaging are very crucial in building successful luxury brands. Hence, since the announcement, the price of Nautilus has skyrocketed in the secondary market due to the increase in demand. The scarcity that it also created generated a hype around the brand, which increased their brand awareness and confirmed their leadership position in luxury watchmaking. Furthermore, this also makes their existing clients who have purchased this watch feel more special as the product has become more exclusive than ever. Scarcity is critical for luxury brands as it communicates the aura of exclusivity to the aspirational masses.

The Marketing Strategy Of Nautilus

Firstly, Patek marketed Nautilus as an investment rather than a necessity. Their iconic advertising campaign, which was launched in 1996, said: "You never actually own a Patek Philippe, you merely look after it for the next generation" successfully communicates the perceived value of the Nautilus as it conveys the assurance that the quality of the watch and the brand will last for generations, just like a piece of real estate or a piece of jewelry. Patek used family as the main concept (e.g. "father and son) to play with our emotions and for us to be able to visualize that Nautilus can be passed down to the next generation, the generation after, and so on. This campaign has been extremely successful as the demand for this watch remains high despite its jaw-dropping price and waiting period. According to Tom Mulraney of The Watch Lounge, the recommended retail price for the Nautilus 5711/1A was $48,047.92AUD, and the average price on the secondary market was $133,379AUD. Furthermore, since the retirement of Nautilus 5711, the average price of this watch on the secondary market has jumped to $156,916AUD.

Photo Credit: Forbes

The second part of their marketing strategy is to make the Nautilus very low-key. For example, in terms of content marketing, such as Youtube videos, the brand has a total of 115 videos, and 3 of those videos are about the Nautilus watch. This strategy allows them to keep the watch and the entire brand mysterious, as well as keep their presence limited to high society only. They rely on the whispers of their clientele to spread the news and products, which then trickles down to the media brands like The New York Times or GQ to spread the word globally. However, this strategy was ineffective as the watch grew in popularity due to the fact that many celebrities who have huge fanbases started wearing this watch, which obviously led to overexposure. However, Patek is determined to keep the Nautilus as low-key as possible; according to Cam Wolf of GQ, the Stern family buys a few hundred 5711s annually from watch resellers like Chrono24, which prevents more people from owning this watch.

Lastly, Patek showcases its savoir-faire and heritage as part of its marketing strategy for Nautilus (and for its other watches as well). Going back to their YouTube channel, some of their content showcases the beauty of the movement of the watch that has been finished by the hand of a dedicated, trained specialist, with skills passed down through generations. In addition, they also showcase the technical ingenuity, high level of detail, and flawless finish that can only be achieved by a well-experienced and skilled artisan. Through this, they effectively communicate the fact that they are one of the masters of horology and that the Nautilus watch is worth waiting for eight years.

Overall, Patek Philippe has minimum marketing activities to make its brand less accessible and to prevent its products from getting too much attention. Despite this, however, Nautilus remains popular with many luxury consumers due to its rich heritage and immaculate design. As much as their strategy has been proven to be incredibly successful, the core essence of it is making the brand extremely exclusive, which could be seen as "gatekeeping" for the new breed of luxury shoppers as they demand brands to open their doors to everybody. However, this means absolutely NOTHING to Patek Philippe, as they are fully aware that when a luxury brand opens their doors to the masses, their ecosystem crumbles and the brand loses its luster. Patek Philippe is one of the luxury brands that did not give in to the new marketing tactics or the pressure that our society puts on them, but chose to follow their hearts.

Discover Patek Philippe here.