Fine Watch case study. Learn about Richard Mille history, the emblematic models and successes, market segment, product identity, competitors, and more.

1. FINE WATCH CASE STUDY
MERYEME TRICOIRE

2. CREATION: After managing the watch division at Matra which was sold to Seiko, and spearheading
Mauboussin's first watch business, Richard Mille set up his company in 2001.
When Mille was looking for a partner for his venture in 1999, he found one in Dominique Guenat, the
owner of private label watch company called Valgine. Guenat and Mille together created Horométrie
SA, which is the parent company of the Richard Mille brand.
HOROMÉTRIE SA was founded in 2001. The company's line of business includes the wholesale
distribution of jewelry, precious stones and metals, costume jewelry, watches, clocks, and silverware.
OWNERS: There is a constellation of owners which allowed for secure supplies at a time when the
industry was booming and new comers would have had a difficult time securing all they needed. This
typical Swiss constellation was then enriched by Audemars Piguet, which also owns shares in Richard
Mille. The addition of this high-powered entity ensured the small brand a front seat at its complicated
movement manufacture Audemars Piguet Renaud et Papi (APRP).
FOUNDERS: Richard Mille (a French businessman) in collaboration with Audemars Piguet. Richard
Mille is called by his peers “the genius watchmaker of the third millennium”. He is not afraid to defy all
the laws of modern watchmaking.
LEGAL FORM: public limited liability company
HEAD OFFICE: Les Breuleux, in the Canton of Jura (Switzerland)
ACTIVITY/BUSINESS: A world-class brand of luxury Swiss watches and modern horology
PRODUCTS: High-tech and elitist wristwatches that are pure work of art at the cutting edge of
advanced technology.
HISTORY

3. EMBLEMATIC MODELS & SUCCESSES
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RM001*/002
RM003
RM004
RM005/006/008
RM007/009/010
RM016
RM012/014
RM027
RM017
RM19-2
RM056*
RM020
* Successes

4. EMBLEMATIC MODELS & SUCCESSES
2001 - The Tourbillon RM 001 & RM 002
The Richard Mille collection is officially launched with its first
luxury model in 2001, the RM 001, followed by the Tourbillon RM
002 with a torque indicator (power reserve indicator).
It marked the beginning of a new era in watchmaking and a
true revolution both in terms of design and pricing. The RM 001
which was priced at around $135.000, twice the price of the
most expensive tourbillon at the time, was a success. This for a
first watch by an unknown non-watchmaker.
2002 - The Tourbillon RM 003
is equipped with a dual time-zone display.
2003 - The complex luxury model RM 004
is a double chronograph with an additional complication
«split seconds» (rattrapante or double chronograph).
SEVERAL MODELS ARE ULTIMATE ICONS OF CONTEMPORARY WATCHMAKING:

5. EMBLEMATIC MODELS & SUCCESSES
2004 - RM 008
The most complex, distinguished and sporty Tourbillon is the
RM 008 (“chronograph tourbillon Felipe Massa”): one of the
most advanced watches in the world, thus the brand’s most
famous models priced from $901.446. It combines a tourbillon
movement with manual winding, a chronograph split
seconds, a torque indicator, and a power reserve indicator.
2005 - RM 007 & RM 009
are First ladies’ watch (small edition of 25 pieces). The RM 009
is an experimental model in ALUSIC, a material frequently
used in the construction of satellites and space stations.
It was priced $349.000.
The automatic RM 005 with semi-instantaneous date-change
& The RM 006, which is an experimental watch limited to 20
pieces, introduced the first baseplate in nano-carbon fiber,
an innovative material. It is one of the early models of the
brand with which it reached its unrivaled glory among watch
connoisseurs and horological enthusiasts.
2004 - RM 005 & RM 006

6. EMBLEMATIC MODELS & SUCCESSES
2006 - RM 012
The RM 012, a tourbillon with a tubular architecture,
minimalist structure and extreme manufacturing complexity,
is introduced. A nautical partnership is also developed the
same year with Perini Navi, leading manufacturers of luxury
sailing yachts, confirming the brand’s presence in the nautical
world. The RM 014, the first Richard Mille watch to have a sea-
faring interpretation, is presented during the Perini Navi Cup in
Sardinia.
2007 - RM 016
in an extra flat case is part of the new Richard Mille collection
including new shapes.
is a skeletonized wristwatch with variable inertia rotor that
allows the user to adapt the winding rotor – with its variable
geometry and 18-carat white gold «wings», to their lifestyle.
It introduces a new innovation in winding conditions that is
essential for excellent chronometric.
2005 - RM 010

7. EMBLEMATIC MODELS & SUCCESSES
2010 - RM 027
which is the lightest tourbillon watch in the world, using
lightweight materials, with a movement that weighs a mere
3.83 grammes.
2011 - RM 017
extra flat – first rectangular tourbillon in the brand history.
isthefirstpocketwatchevercreatedtomakeuseofabaseplate
made of carbon nanofiber, originally used in U.S. Air force jets.
2008 - RM 020

8. EMBLEMATIC MODELS & SUCCESSES
2015 - RM 019-2
One of the latest novelty is the RM 19-2 Tourbillon Fleur which is a truly piece of
kinetic art designed for women. This timepiece returns to the long tradition of
automata in watchmaking. The automaton, with an engineer movement, allows
for an interesting unique compilation of a magnolia that hides – and reveals –
some genuinely fascinating technical feats inside its diamond encrusted case.
As the flower opens, the entire flying tourbillon and its gem-set stamen rise one
millimeter, exactly imitating the upward arch of a flower to increase its chance of
pollination. The watch is available at $1.09 million.
the sapphire split seconds (chronograph tourbillon) is distinguished by its three-
part all-sapphire skeletal case. It is the first watch case to be completely built
from sapphire and is completely see-through. The limited edition 5 pieces of the
Richard Mille RM 056 Felipe Massa Sapphire (dedicated to Ferrari’s Formula 1
driver) was priced at $1.7 million. This watch was declared best watch of 2012 at
the ‘Salon Internacional de Alta Relojería’ watchmakers’ exhibition in Mexico City
in October 2012.
2012 - RM 056

9. Pablo Picasso
PRODUCT IDENTITY
Richard Mille is an extremely high-end and extremely niche brand.
At the heart of Richard Mille strategy are breakthrough, extremely technical and innovative products. A
true revolution.
Richard Mille products are in the ultra-high-luxury segment of wristwatches.
Richard Mille’s designs are lavish, extravagant, memorable, complicated, yet timeless, flexible and classic.
Localised & customized products: Richard Mille rarely misses an opportunity to cater to a particular market
or place when it comes to the design of limited edition watches. For example, many of the Richard Mille
timepieces intended for Asian consumers are rich with symbolism, and include imagery often in the form of
animals which are hand-engraved and placed in the dial. Other examples include watch colors meant to
resemble a nation’s flag or sports team.
Elaborate customization work can be an element of kitsch and playfulness in the design.
Launched at the turn of the millennium, Richard Mille has succeeded in explaining and demonstrating how
his watches are in fact Formula 1 for the wrist, e.g. the slogan “A racing machine on the wrist”.
Richard Mille dare to use novel materials that are new to watchmaking such as carbon nanofiber, ALUSIC,
Aluminum-Lithium, ANTICORODAL and PHYNOX, for the specific, clearly defined and improved efficiency
they bring to each piece, achieving advanced chronometric results, and lightweighting. Materials are
combined with technical engineering excellence and inventiveness to achieve ultimate and unique
wristwatches.

10. Pablo Picasso
MARKET SEGMENT
The typical audience for Richard Mille are wealthy watch collectors, successful businessmen
and women, world leaders and even emperors who are mechanics obsessive and eagerly
pursue perfection to fancy the flawlessly crafted Richard Mille.
This target audience is residing in the Americas, Europe and the Middle East/Asia.
The company focuses on developed countries/states/regions and market density with wealth
(therefore a small market), then on developing and semi urban profitable markets.
The HNWI (High net worth Individuals) that belong to the million dollar club, that start from $1
million liquid assets and the ultra HNWIs that have at least $5 million dollars as liquid assets.

11. Pablo Picasso
COMPETITORS

12. Pablo Picasso
WATCH PRODUCTION (PLACE)
& PRICING
SMALL PRODUCTION QUANTITIES:
Richard Mille launches five or six new watches each year and is not interested in volume as we have seen.
The production is limited to a maximum of 2600-2700 pieces per year. In 2009, he sold just under 2,500 watches, compared
with around 1,500 watches in 2007.
PRODUCTION:
Richard Mille does not make his own movements. Instead of creating an in-house manufacture, Richard Mille produces their
timepieces using the best companies and the best movement suppliers available today in Switzerland.
The “Renaud et Papi” –Research and Development arm of the old-line Swiss watch firm Audemars Piguet (APRP) makes
Richard Mille’s most complicated, sophisticated and innovative movements in conjunction with Mille and his team.
Vaucher Manufacture Fleurier supplies all of Richard Mille’s automatic movements but customized for Mille’s use.
Soprod also supplies Mille with some other minor complications.
Richard Mille forward vertical integration means that it doesn’t control his suppliers. The relative forward verticalization
of Richard Mille is a weakness that may now be partly wiped out by the fact that the current movement suppliers seem
disposed to continue with the Richard Mille adventure, whoever owns it.

13. Pablo Picasso
EXPERTISE / QUALITY
LIGHTWEIGHTING
sapphire
expertise
raw
art
innovation

14. $135.000 $349.000 $500.000 $600.000 $620.000 $900.762$861.093 $1.41 M $1.56 M $1.59 M
RM001
RM 038
Bubba Watson’s
RM 059
Yohan Blake
RM 051
Michelle Yeoh
$1 M
RM 031
$1.16 M
RM009 RM 027
Rafael Nadal
RM 057
RM 018
Meteorite watch
RM 052-01
Red Skull
RM 056
Sapphire
RM 026-1
Panda
Richard Mille is one of the top expensive watches in the world. He has always made a high-price premium product.
Prices run from $135,000 to around $1.6 million depending on the stones. The average price of $500.000 continues
to grow, which leads to a notable increase in turnover each year. All the delays and busted prototypes of Mille’s
cutting-edge watches are reflected in his price tags:
PRICING

15. Pablo Picasso
“Expensive watches and expensive vehicules have lot
in common. First of all, they are not very practical, but
upper-income people collect them anyway to show off to
their friends and relatives. ”
AP RIES, founder and chairmain of RIES & RIES

16. Pablo Picasso
DISTRIBUTION STRATEGY
Richard Mille has established a distribution network that is among the very best. He has sought, found and
convinced top-quality sub-contractors to work with him. Richard Mille controls distribution centers and retailers
where its products are sold.
RICHARD MILLE MIXES POINT OF SALES:
- They have their own boutiques all over the Europe -which is their domestic market, in emerging markets
such as Middle East and Africa, and in the directive markets: Americas and Asia;
- They have selected generalist resellers such as Montres Prestige in Geneva or Dubail in Paris;
- Completed by resellers who are specialized in the technical pieces e.g. L’Heure Asch or Chronopassion;
- Richard Mille products are available through multi brand retailers including Swiss Prestige, Chalhoub
Group and Bosco Ciliegi;
- Richard Mille watches are available online on their website and other websites such as Chrono 24,
JamesEdition.com, eBay and swissluxury.com.

17. Pablo Picasso
BRAND DNA
A THREEFOLD BRAND PHILOSOPHY: the sharpest cutting-edge technology, three-dimensional
constructions shot through with pure mechanics, and hand-finishing.
Richard Mille name has imposed itself with instantly recognisable timepieces at the forefront of
innovation and openly inspired by racing cars and aeronautics.
RICHARD MILLE VISION: Create the best in-technical innovation, with the best of artistry and architecture,
and the best of the heritage and culture of fine watchmaking with hand finishing.
BRAND MANTRA: “Major technical innovation”
BRAND VALUES: Richard Mille makes only watches, it has never produced a mass-market watch and has
never licensed its name. Each product is designed to embody the values and exacting standards of Richard
Mille’s Jura based manufacture which are: modern design, unprecedented architectural construction and
unique level of technical skills.
BRAND SIGNATURE/SLOGAN: “A racing machine on the wrist”

18. STYLISTIC FEATURES / DESIGN
hand-crafted
MODERN
architectural
stylish
daring
complex
SKELETON
high-tech

19. Pablo Picasso
KEY FIGURES
€125 M TURNOVER IN 2014
Richard Mille is generating revenues in excess of €125 million in 2014 which is very good compare to
the competitors such as Omega, who manufacture much more watches than Richard Mille. Richard
Mille sold around 2500 watches in 2014 which are 1000 more than 2013 and were also manufactured
accordingly according to the demand, showing the growth of at least 75% compare to 2013.
Richard Mille is not the only financial investor in this venture. Dominique Guenat has been a partner since the
beginning. He has steered the manufacturing side at Les Breuleux and is a shareholder in Horométrie SA.
2500 WATCHES SOLD IN 2014

20. Pablo Picasso
COMMUNICATION STRATEGY
Richard Mille is a low profile marketer, he only communicates about his exquisite
launches to his celebrity friends and then they get sold with a split of second.
He communicates prolifically and intensively on internet, in physical stores and
by using an advertising agency to communicate.
However,RichardMillestressestheimportanceofunderstandingandcommunicating
with the final client in a more selective and exclusive way, choosing their
communication tools and channels in a way to protect the exclusiveness and rarity
of their unique products such as in the Luxurydaily.com emagazine.
As luxury is synonym of rarity, Richard Mille communicates accordingly, marketing
the products rarely but perftly targeted. His strategy has impact on 10-30 people
instead of more than 1000 people.
Ultimately it has proven to be a very profitable strategy over-investment.

21. Pablo Picasso
SPONSORSHIP
AND ENDORSEMENTS
RichardMillehasrisentothechallengesofcelebrity.Thebrandsponsorsvarioussports
celebrities including Rafael Nadal (Spanish tennis player), Felippe Massa (Brazilian
Formula One driver & a kind of unofficial watch tester), Bubba Watson (American
Golfer), Yohan Blake (Jamaican Sprinter).
The company also sponsors sports events including Le Mans Classic auto race, the
Voiles de Saint Barth sailing regatta and is the official timing partner of Manchester
City football club.
Richard Mille celebrity endorsements and brand ambassadors include:
- Actress Natalie Portman with the RM 19-01 Natalie Portman watch;
- Jackie Chan star with the RM 057 Dragon-Jackie Chan Tourbillon watch;
- Michelle Yeoh actress, with the RM 051 Phoenix-Michelle Yeoh watch
- And many more.

22. BRAND IDENTITY
perfection
FORMULA1
ARTISTRY
celebrities
ultimatewatch

23. Pablo Picasso
CRITICAL POINTS
Richard Mille organise sales into three different zones and try to distribute products
equally across the Americas, Europe and the Middle East/Asia.
However, there are still a lot of countries where Richard Mille is not present such as
Germany, for example, or Scandinavia, or Eastern Europe.
These can be interesting in growing the business.
There is no promotion that’s done in the market for the branding that needs to be
focused on.

24. THANK YOU