Tiffany Angers Rich Clients Who Wanted to Buy a Rare Patek Watch

Tiffany salespeople called them the “watch monsters.” The obsessives. The wealthy shoppers who were sure they should be among the chosen few to get their hands on a rare timepiece from Patek Philippe.

They descended on Tiffany & Co. a few years ago, when the retailer began offering a limited edition Patek Philippe Nautilus 5711 with a dial in the jeweler’s signature robin’s-egg blue. Patek crafted 170 of them, a tribute to the number of years the brands had worked together. Tiffany’s hope was that the buzzy timepiece would help attract – and retain – high-end shoppers who weren’t already regular customers.

Yet the Blue Dial — as it became known — was never for sale in the traditional sense. Demand was so high that Tiffany executives, including Americas head Christopher Kilaniotis, realized clients would be willing to spend millions of dollars on other jewelry for the chance to buy the coveted watch, which was priced at $52,635. Salespeople were instructed to guide top prospects toward spending $2 million to $3 million, according to people familiar with the sales strategy. No official waitlist. No guarantees.

“Everyone wanted that piece,” said Oliver R. Müller, a luxury watch consultant based in Aubonne, Switzerland. “With rich people, if you tell them they can’t have something — they want it,” he added. “It’s called the psychology of billionaires.”

When the Blue Dial arrived, wealthy shoppers’ desire for luxury watches was in overdrive in the midst of a pandemic-era buying mania. It instantly became one of the most talked-about objects in the luxury world.

For Tiffany, the timing was opportune. The jeweler was barely a year into its new era under LVMH Moët Hennessy Louis Vuitton SE, which bought it for $16 billion in 2021. The largest luxury acquisition on record underscored the outsized ambitions that LVMH had for Tiffany, a beloved American brand that had nonetheless become a bit tired. Tiffany sales rose 4% in the five years through January 2020, down from a nearly 60% spike during the prior half decade, Bloomberg data show.

But what began as a celebration of the iconic jeweler and watchmaker has evolved into a cautionary tale — a lesson in how exclusivity, if mishandled, can dim the glow of luxury.

Since the Blue Dial’s release, Patek Philippe shut three of its four boutiques in Tiffany stores in the midst of a broader consolidation. Tiffany’s fractured relationship with one of the world’s most beloved watchmakers drags on revenue to this day and is one reason why salespeople have struggled to meet ambitious monthly targets at stores where Patek closed its boutiques, according to several people familiar with the situation.

The details of how Tiffany angered many within a passionate community of watch lovers haven’t been previously reported and are based on interviews with nearly two dozen people familiar with what happened who asked not to be identified discussing private matters.

Tiffany’s press office declined to comment, while Kilaniotis and Tiffany Chief Executive Officer Anthony Ledru didn’t respond to requests for comment. LVMH has recently told analysts and investors that the changes being implemented at Tiffany, including a focus on selling its high-end Icons collection and lavish store renovations, are paying off.

“We are seeing continued very good progress on Tiffany’s transformation plan,” LVMH Chief Financial Officer Cécile Cabanis said during an earnings call in April.

Tiffany is the largest contributor to LVMH’s jewelry and watches division, which also includes brands such as Bulgari and Tag Heuer. When LVMH reports earnings on July 24, analysts surveyed by Bloomberg forecast the division will show a 1% revenue decline in the most recent quarter from a year earlier.

Patek declined to comment on its relationship with Tiffany or the sale of its watches.

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