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Bennahmias launches THMG: new multi-brand luxury challenger to AP

Bottom Line Impact

Expect near-term cost and retention pressure for Audemars Piguet and a moderate reallocation of attention and supplier capacity toward THMG, while THMG's disciplined sequencing can create early high-margin service revenues and brand equity momentum that positions it as a credible indie challenger within 12 months.

Key Facts

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  • THMG unveiled on September 17 in Crissier, Switzerland; structured as a group of 7 entities spanning watchmaking, fashion, jewelry, lifestyle, services, and e-bikes.
  • Team assembled: 70 specialized collaborators, initially funded personally by Bennahmias; Swiss and international investors have now joined (amount undisclosed).
  • Scope includes collection management services, signaling entry into high-value aftersales and secondary market enablement.
  • Bennahmias stepped down as Audemars Piguet CEO in Dec 2023 after elevating AP into a top-desirability high-end watch brand among collectors and next-gen buyers.
  • Luxury Tribune received exclusive pre-launch access, indicating a tightly managed communications strategy and staged reveal cadence.

Executive Summary

François-Henri Bennahmias has launched The Honourable Merchants Group (THMG), a seven-entity platform spanning watchmaking, fashion, jewelry, lifestyle, e-bikes, and services, staffed by 70 specialists and now backed by Swiss and international investors. Near term, expect intensified competition for talent, suppliers, and attention in high-end watches; over 6-12 months, THMG could monetize services first while seeding product plays, requiring Audemars Piguet (ID: 376) to reinforce retention and supply security and offering THMG (ID: 1076) a path to build a values-led luxury ecosystem.

Actionable Insights

Immediate Actions (Next 30-90 days)
Activate a 90-day critical talent retention program with targeted stay bonuses, equity-linked incentives, and non-solicit reinforcements for top 5-10% roles in product, marketing, and supply.
Rationale: THMG will compete aggressively for scarce watchmaking and brand-building talent; a proactive plan can cut voluntary turnover by 30-50% and avert 6-12 month capability gaps.
Role affected:AP CEO/CHRO
Urgency level:immediate
Sequence commercialization: prioritize collection management services to reach first revenues within 3-6 months; limit near-term product scope to 1-2 capsule drops; implement milestone-based capital release.
Rationale: Services have faster time-to-revenue and validate the model while conserving cash; disciplined gating reduces execution risk across seven entities.
Role affected:THMG CEO/CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Secure 18-24 months of supplier capacity for key movements and complications via take-or-pay or volume-commit contracts; budget 3-5% cost uptick to lock priority slots.
Rationale: If THMG pre-books premium capacity, lead times and costs could rise; forward contracts protect AP's launch cadence and margin mix.
Role affected:AP COO/CFO
Urgency level:short-term
Build a founders' circle membership with data capture, concierge trade-in, and cross-category privileges; target 5,000 qualified members at launch with 20-30% conversion to paid tier.
Rationale: Community-first demand creation lowers CAC, creates predictable sell-through for early capsules, and monetizes services ahead of full product ramp.
Role affected:THMG CMO/Chief Community Officer
Urgency level:short-term

Risks & Opportunities

Primary Risks
  • Execution complexity across seven entities stretching capital and leadership bandwidth.
  • Supplier and talent constraints raising COGS and extending lead times for watchmaking outputs.
  • Mission-value misalignment risk if growth pressures dilute the stated purpose-beyond-profit narrative.
Primary Opportunities
  • First-mover advantage in premium collection management services integrating primary-to-secondary flows.
  • Talent magnet effect leveraging Bennahmias' network to assemble top-tier creators and operators.
  • Cross-category ecosystem synergies (watchmaking, fashion, lifestyle) enabling bundled client value and higher LTV.

Supporting Details

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