The Secret Behind the 'Billion-Won' Sounding Watch 'Patek Philippe' [Hidden Industry Story]

From Watch Design to Manufacturing and Assembly... Complex Production Process
For High-End Products, Buyers Must Submit Personal Information and Past Purchase Records
Museum Opened in Geneva in 2001... Open to the Public Year-Round

'Patek Philippe Grandmaster Chime' sold last November for the world's highest auction price of 31 million Swiss francs (approximately 36.293 billion KRW) / Photo by Patek Philippe Official Website Capture

[Asia Economy Reporter Kim Suwan] Swiss watchmaker Patek Philippe is known as the most expensive wristwatch in the world, matching its reputation. Patek Philippe, which consistently appears in rankings of high-priced watches, set a new record at an auction held last year at a hotel in Geneva, Switzerland. One watch was sold for a staggering 31 million Swiss francs (approximately 36.293 billion KRW), far surpassing the previous world record auction price of 23.237 million Swiss francs (approximately 27.22 billion KRW) set by a Patek Philippe pocket watch in 2014. Patek Philippe, a manufacturer of high-priced watches ranging from tens of millions to hundreds of millions of Korean won, holds secrets that make it a watchmaker that naturally evokes the sound of "ok" (hundreds of millions in Korean currency).

From Design to Production... Entire Process Handmade

The luxury brand Patek Philippe began its history in 1839 when Polish immigrant businessman Norbert de Patek and watchmaker Fran?ois Czapek founded Czapek & Co.

After its establishment, in 1844, French watchmaker Jean Adrien Philippe joined the company, and in 1851 the company name was changed to the present-day Patek Philippe. Adrien, who won a gold medal at the Paris Universal Exposition, was a master watchmaker and a key figure who made Patek Philippe what it is today.

After the death of founder Patek in 1877, Philippe passed the company to his son Joseph Antoine Benassy Philippe in 1891.

In 1932, the company was finally acquired by brothers Charles Stern and Jean Stern, who were then dial suppliers. Since then, Patek Philippe has been a family business managed by the Stern family for four generations.

Most of the watch design, production, and assembly processes are done by hand, and the adoption of various technologies is Patek Philippe’s unique competitive edge. The company employs over 1,300 skilled technicians and carries out 1,200 to 1,500 production steps manually, boasting world-class technical expertise. Notably, it has achieved several patents in various fields, including the perpetual calendar in 1889, winding system with twin barrels, minute repeater in 1893, double chronograph in 1902, hairspring regulator in 1903, and extra-flat movement (the core power mechanism of a watch) in 1904.

Patek Philippe basically uses about 23 calibers, and approximately 50 watch movements apply these calibers. Since more than 10,000 parts are used to make a watch, the company produces over 15 million parts annually.

Thanks to these efforts, functions such as water resistance, the annual calendar that accounts for month length differences and leap years, the moon phase that displays the changing shapes of the moon and sun in a small window on the dial daily, dual time that shows two time zones on one wristwatch, and world time that simultaneously shows times in various countries have been incorporated. As functions were added, all Patek Philippe watches have come to boast high rarity.

Also notable is that the company maintains limited production to preserve scarcity value. The annual production volume is known to be about 45,000 units.

Patek Philippe’s Unique Value... Collaboration of Artisan Skill and Tradition

In 2015, at Lotte Department Store Main Branch AvenueL in Jung-gu, Seoul, employees showcased the Swiss luxury watch brand Patek Philippe's products, including the 'Grand Complication Blue Dial' (third from the left), priced at around 200 million KRW, and the Nautilus series to commemorate the brand's entry. Photo by Yonhap News

Patek Philippe’s value can be said to come from adhering to principles over a long time. Since the Stern brothers acquired the company in 1932, it has been family-run for four generations, focusing more on brand value than profit. This is famous for being strict not only in production but also in the purchasing process.

For high-priced products, buyers must submit documents including personal information and past purchase history to the Geneva headquarters. The headquarters reviews these and makes the final decision on sales. This reveals the company’s management philosophy that emphasizes brand value.

In 2009, to certify its outstanding technical skills, Patek Philippe developed its own quality certification mark, the Patek Philippe Seal, which is much stricter than the Geneva Seal. By applying this self-developed certification system in product manufacturing and quality assurance, Patek Philippe has become a brand that truly represents the Swiss watch industry.

Thanks to these efforts, Patek Philippe has maintained its pioneering status in mechanical watches for 182 years since its founding.

A Watch That Not Everyone Can Own, Making It More Desirable

The special limited edition model "J.B Champion Platinum," created by Patek Philippe for watch collector J.B Champion. It became famous in 2014 when Angelina Jolie gifted it to Brad Pitt. Photo by Patek Philippe Official Website Capture

When it comes to Patek Philippe watches, famous figures from various fields cannot be overlooked. Representative customers include British Queen Victoria, Tchaikovsky, Wagner, Rockefeller, Einstein, and other royals, nobles, politicians, artists, and scientists well known to us, maintaining the brand’s prestige.

A few years ago, the story of famous Hollywood actress Angelina Jolie gifting a 5 billion KRW Patek Philippe wristwatch to then-husband Brad Pitt is still talked about today.

Currently, Patek Philippe watches lead new trends based on rarity, applying classical yet innovative technology. Representative models include the Calatrava, Nautilus, and Aquanaut.

Among these, the Nautilus is famous for its design completed in just five minutes by world-renowned designer Gerald Genta, who was suddenly inspired during a company dinner in 1972. This watch was inspired by a submarine hatch. When first released, its unique design did not attract much attention, but it has become a signature product loved by consumers to this day.

Especially, the Grandmaster Chime, known as Patek Philippe’s most complicated wristwatch, is the highest-priced product featuring more than 30 functions and patented technologies. It is known to have taken 7 years to develop and 2 years to manufacture. In addition to the movement consisting of 1,366 parts, it contains 214 separate parts, totaling 1,580 parts. Moreover, one model of this product was auctioned last year for 31 million Swiss francs (approximately 36.2 billion KRW), setting a world record for the highest price.

The true value of Patek Philippe can be seen at the museum opened in Geneva in 2001. This museum, open to the public year-round, has a library on the fourth floor containing materials related to Patek, Philippe, and Stern, patent documents, awards, and watch-related books. The third floor exhibits historical watch collections made by Breguet, Jaquet Droz, and others; the second floor showcases the history of the Patek Philippe brand at a glance; and the first floor displays watchmaking tools and machines.