Luxury watch brand Panerai is thinking about sustainability

We chat with Alessandro Ficarelli, CMO, Panerai, to get an insight into the changes in the luxury watch market, incorporating environment-friendly practices, and the design of the new Luna Rossa timepiece

Italian luxury watch manufacturer Officine Panerai (or simply known as Panerai) is steadily expanding its efforts to promote sustainable practices. On the sidelines of the recently concluded Watches and Wonders 2022 in Geneva, we spoke with Alessandro Ficarelli, Chief Marketing Officer, Panerai, about the shifts in the horological world and what the brand is doing to adapt to this.

How has the world of luxury watches changed in the last two years?

The world of luxury goods has been characteriesd by several changes, and we have had to adapt to customers’ requests. A lot of people decided to invest their money to purchase watches, as their value was constant and, in some cases, even appreciated. Customers are looking for a more personalised approach, wanting to develop a strong bond with the brand itself.

With the world being forced to sit up and think about sustainability more seriously, what do you think the future of luxury watches is?

At Panerai, a spirit of excellence and tenacity extends beyond the realm of watchmaking; it applies to every endeavor to which the brand turns its attention. As climate change becomes an ever-present reality, we have steadily expanded our efforts to promote sustainable practices, both in its internal operations and through external outreach and educational initiatives. We believe that broad-minded, border-bridging leadership is essential to deal with the problems posed by climate change. Hence, the future of sustainable watch-making lies in a strong cooperation between brands, as that’s the only way to make a difference.

Could you tell us a little more about the new Panerai Luna Rossa and the process of building it?

We infuse Swiss horological perfection with our Italian heritage, thereby giving our timepieces a standout design sensibility. Both these aspects combine to form Panerai’s portfolio of uncompromising watches with a focus on instruments for aquatic adventures. Since we identify and appreciate the power of collaboration, we have found an ideal partner in the Luna Rossa team, winner of the Prada Cup in the last America’s Cup, and an Italian counterpart exemplifying excellence in its field.

For a long time now, we have been inspired by the America’s Cup. Since 2017, we’ve created watches that take inspiration from the materials and technology used in the America’s Cup and the majestic beauty of the yachting world. With the new 44mm Submersible QuarantaQuattro Luna Rossa, a new chapter begins in this collaboration. The limited-edition launch will offer 1,500 pieces globally.

This watch exhibits a considered balance between elegance and sportiness. With a steel case engineered to withstand the rigours of ocean racing, it offers a restrained design and a neutral, versatile marine-inspired colour palette of blue, white and red.. With its patented crown protection device, rubberised crown and rotating unidirectional bezel, it is prepared for sustained exposure to the intense forces of the underwater world.

A sun-brushed blue dial gives a sheen to the surface, while white Super-LumiNovaTM embedded within metallic appliques generates the glow of the dots, markers and hands.

Every time we start developing a timepiece inspired from Luna Rossa, our product designers think about the boat used by the sailing team, the colours as well as the sophisticated material technology.

While extremely impressive, does Panerai’s use of recycled material somehow take away from the premium appeal of a luxury timepiece? How do you think customers will respond?

The measure of a manufacturer's watchmaking capabilities is no longer confined to the sophistication of the movements it produces or the precision of its finishing. In the watch industry, it is important to turn one’s attention to practices that reduce the ecological impact. Panerai is committed to developing strategies for a sustainable future, including reducing waste and promoting reuse of materials.

Using recycled materials is one of the business goals shaping our strategy, as by 2025 we want to have 30 per cent of our watches made from recycled steel. Their premium appeal will not be lost, as the use of recycled materials has no impact on the value of the watch.

What sort of material is eSteel composed of?

eSteel™ offers the same properties as conventional steel, including identical chemical behaviour, physical structure and resistance to corrosion, thereby making the metal a natural companion for the Submersible collection of diving watches.

The timepiece recognises the critical importance of sustainability while maintaining the brand’s established design codes and technical finesse: 72g of the Submersible QuarantaQuattro eSteel™ is made of recycled materials, corresponding to 52 per cent of the total weight of the watch, which is 137g.

Panerai has already used ceramic for its watches, which used to be a zirconium oxide powder pressed to form a cylinder (Radiomir) or injection molded (Luminor). The watches then underwent sandblasting and anti-impact treatments. The positive characteristics of this material are thus enhanced: extreme hardness and high resistance to high temperatures, scratches, damage and corrosion.

In continuation of my question on luxury appeal, how does your partnership with Watchfinder add to Panerai’s image? Since a trade-in is usually considered a bit infra dig, what has the response from customers been like? Is the service available to Indian customers?

We have teamed with Watchfinder & Co., a leading destination for premium pre-owned watches, to create a trade-in programme that makes it simple to upgrade to a new Panerai watch from one of the signature collections: Luminor, Luminor Due, Radiomir or Submersible.

The pre-owned watch market has always existed, but never in a structured manner since it was mostly catered by customers for other customers. Hence fake timepieces and valuations were critical issues. However, as more brands have begun to enter the space, the market has become more structured. The size of the pre-owned market is larger than that of the new market. Therefore, brands entering the market lend it a strong foundation of trust, in terms of both product quality and valuation.

Working with Watchfinder has helped us further enrich our business model of sustainability. For instance, if you are replacing your current Panerai with a new one, it is better to sell it to Watchfinder and ensure that somebody else uses it, instead of having it lie around. Of course, we also offer after-sales service and quality guarantee for our pre-owned watches. While Watchfinder’s service is currently active mainly in Europe, expanding to the Indian market is among its next steps.

What led to Panerai’s collaboration with UNESCO?

Panerai’s brand legacy is inextricably connected to underwater exploration and the ocean’s health. It was our engagement with the marine environment that resulted in the partnership with IOC-UNESCO–the Intergovernmental Oceanographic Commission of UNESCO–to develop the Ocean Literacy programme, a component of the UN Decade of Ocean Science for Sustainable Development (2021-2030).

The two-year collaboration aims to focus on educating audiences and getting the industry involved. We’ve launched a worldwide campaign, among 100 of the top universities globally, to inform students on how brands such as Panerai can be a force for the good of the planet. The programme curriculum demonstrates the positive impact achieved simply by involving as many people as possible in concrete actions. This campaign is at its initial stage in India and will go live in the coming months.

Can you give us a sneak peek into what Panerai has in store in the future?

As revealed during Watches & Wonders last month, 2022 is an important one for the brand. We are working on the Panerai experience concept in order to get closer to our customers, after over two years of the pandemic.

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