Is Thierry Stern Driving Patek Philippe Into Irrelevance?
As Thierry Stern mirrors the hubris of Gerald Ratner, and in this age of woke culture and economic turmoil, is Patek Philippe headed for the same catastrophic fall?
In business, when arrogance blinds a leader to the consequences of their actions, it can have devastating consequences. A fellow collector highlighted how Gerald Ratner’s catastrophic fall from grace in the early 1990s is an interesting analogue for how a single misjudged comment can collapse an empire.
Fast forward to 2024, and we may be witnessing another “Ratner moment” brewing in the watch industry. This time, it’s Patek Philippe’s Thierry Stern, whose dismissive attitude towards critics of the brand’s new Cubitus collection eerily echoes Ratner’s hubris.
What does a jewellery tycoon from the 90s have to do with the head of a watchmaking icon today? Well, both men, despite their success, seemed to have forgotten one crucial rule of luxury: Respect your customers, even those who criticise you.
The most ridiculous aspect of Stern’s recent interviews isn’t only about what he says – it’s how he says it. Count the number of “I” and “me” that pepper his statements... This is the language of insecurity masquerading as confidence, of a man so caught up in forging his own legend he’s forgotten what made Patek legendary in the first place.
For a brand that’s worth billions, Stern’s lack of media training and professional communications counsel is staggering. Other CEOs have entire teams dedicated to message control and brand protection - yet, Thierry’s out here freestyling like a drunk uncle at a wedding. No comms director. No media training. No filter between brain and mouth. Just pure, uncut ego hitting the airwaves. 😂
The guy has become a walking PR liability. Every interview is Russian roulette with Patek’s reputation. What’s worse, he’s surrounded himself with an echo chamber of yes-men who depend on his good mood for their mortgages. Want to know how that works out? Ask anyone who’s ever had to tell their boss that their new born baby is actually ugly. You can’t get honest feedback from people whose careers depend on your happiness.
This isn’t just about poor media management, but about a fundamental misunderstanding of modern luxury leadership. In an age where one misplaced quote can trigger a staggering backlash, Stern is operating like it is 1989. He’s not just missing a safety cord; he’s proudly bungee jumping without one.
But look, before we dive deeper into Stern’s self-sabotage, let’s talk about another luxury titan who learned these lessons the hard way. A man whose name became synonymous with corporate suicide-by-soundbite...
The Rise and Fall of Gerald Ratner
Gerald Ratner wasn’t always the poster child for a cautionary tale. By the late 1980s, he had transformed his father’s modest jewellery business into a high-street powerhouse, dominating over 50% of the UK’s jewellery market. Ratner’s Group was synonymous with affordability, catering to the working class by offering cheap, mass-market jewellery. By 1991, the company had 2,500 stores, a behemoth of its time.
Then came April 23, 1991. At the Institute of Directors conference, Ratner uttered the words that would haunt him forever:
“We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, ‘How can you sell this for such a low price?’, I say, ‘because it's total crap.’”
He then doubled down, joking that some of his earrings were “cheaper than an M&S prawn sandwich but probably wouldn’t last as long.”
What Ratner might have seen as self-deprecating humour was anything but. The fallout was immediate and devastating. Within days, Ratner’s Group lost £500 million in market value and its share price tanked by 80% over the next 10 months. By 1992, Ratner was ousted as CEO, and the company was rebranded to Signet literally just so it could distance itself from the scandal. The name “Ratner” had become toxic, synonymous with cheap, worthless products.
Ratner’s words weren’t just a gaffe - they revealed a deeper truth. For a man in charge of a mass-market luxury brand, he had no respect for the very products or customers that built his fortune. His downfall wasn’t just about poor judgement; it was about breaking the trust between brand and consumer.
Luxury operates on a magic spell woven from history, heritage, and craftsmanship. It’s what justifies extravagant purchases of otherwise unnecessary items.
But, hold that thought…
Thierry Stern Parallels
“The haters are for the most part people who have never had a Patek and never will have one. So that doesn't bother me. What counts for me is the result. And I'm confident about the Cubitus, because I have a good nose and a lot of professionals around me who told me it would work.”
Now, in 2024, Thierry Stern, the head of one of the most prestigious watch brands in the world, appears to be walking a similar path to our boy Ratner.
Patek Philippe has long been a symbol of tradition, craftsmanship, and aspiration. Despite this, Stern’s recent comments in the wake of the Cubitus launch, suggest that even the highest echelons of luxury can fall prey to arrogance.