Given the economic backdrop you might be tempted to question the logic behind Dublin jeweller Paul Sheeran’s plans to house several of the world’s most exclusive watch brands just off Grafton Street. This is in the face of high inflation, recession fears, rising interest rates and, crucially, the decline of brick and mortar retail.
Not so, according to Jean-Marc Pontroué. The French native is chief executive of Panerai, one of the brands that will operate a standalone “boutique” at the Hines-owned retail strip on Chatham Street. He is bullish about the Geneva-based watchmaker’s prospects in Dublin, and the luxury goods market generally.
Dublin’s status as one of the fastest growing capitals in the world combined with the ever-more economically-vital tourist industry here are two of the main reasons for his confidence. But there are other more wide-ranging trends supporting Pontroué's and Panerai’s conclusions.
Most importantly, in Ireland – as highlighted this week – and across the world the rich are, quite literally getting richer. Global financial wealth grew by more than 10.6 per cent last year, Bloomberg reported, recently citing a Boston Consulting Group study, the fastest rate in more than a decade. Not only has this helped to further insulate the wealthiest from the worst effects of inflation, it has boosted demand for luxury goods, with Louis Vuitton and Moet Hennesy, for example, beating expectations for much of the year.
Shares in Richemont – Panerai’s parent, which also owns brands including Cartier, Roger Dubuis and Montblanc – are down 6 per cent amid a broader market sell-off but are up more than 90 per cent over the past five years.
Key to capitalising on this as a brand is doing your job well, Pontroué said this week, “meaning you stay very clear in your strategy. You don’t try hundreds of different opportunistic adventures.”
And you brace for some turbulence. “It’s like being in a plane. You can be on a flight for four or five hours, it can be that [the plane] is shaking but it doesn’t hinder the plane getting to its destination. Okay, it makes your life uncomfortable if you want to sleep. But it gets to the destination.”
