François-Henry Bennahmias Launches The Honourable Merchants Group, A New Era in Luxury
GENEVA – François-Henry Bennahmias, the former chief executive of Audemars Piguet, is making a significant return to the luxury sector with the launch of The Honourable Merchants Group. After a two-year hiatus, Bennahmias aims to reshape the luxury landscape with a venture that promises to address the industry’s current challenges and redefine its future.
A Vision for Luxury
At 61, Bennahmias is no stranger to the luxury market. He is credited with transforming Audemars Piguet into a powerhouse in the luxury watch industry, elevating its status to rival that of iconic brands like Patek Philippe. His new venture, The Honourable Merchants Group, has reportedly attracted investments totaling “hundreds of millions of dollars” and will encompass eight distinct verticals: lifestyle, fashion, watches, jewelry, art, sports, talent management, and brand incubation.
In a recent interview with The Business of Fashion, Bennahmias revealed that the group has been in development for eight years, driven by a vision to “fix the luxury industry.” He expressed concern over the current trajectory of luxury brands, stating, “Luxury has pushed the envelope too far. Eternal growth doesn’t work. If you push an entity too far, then it will impact its soul, its DNA, and the wellbeing of its employees.”
New Brands and Strategic Acquisitions
The Honourable Merchants Group will launch with two new brands: Viiala, a high-end e-bike company based in Switzerland and Dubai, and Avalon, a security and logistics firm targeting ultra-high-net-worth individuals. Viiala plans to offer e-bikes priced over $25,000 starting in 2028, while Avalon aims to provide bespoke services for affluent clients.
Bennahmias is also in the final stages of negotiations to acquire between eight and ten luxury brands, including four watch companies and a fashion label. He anticipates finalizing these acquisitions between October and next spring, emphasizing that these brands are family-owned and open to his innovative vision.
A Human-Centric Approach
Bennahmias is keen on addressing what he perceives as a disconnect in the luxury market. He argues that the focus should shift from grandiose stores to genuine human connections. “What really matters is not the gigantic stores where you spend fortunes to build them. People need to connect human to human,” he stated. This philosophy reflects a growing trend in luxury retail, where personalized experiences are becoming increasingly important.
In a departure from traditional revenue targets, Bennahmias plans to adopt a more relaxed approach to growth. He stated, “We will take the time needed to grow businesses to where they could be. If we buy a business today and it does 20 million and I know it can do 100 million, we’ll get there. But if we get there in three, five, or ten years, I don’t care.” This long-term vision contrasts sharply with the often short-sighted strategies employed by many luxury brands today.
Employee-Centric Business Model
Bennahmias is also committed to creating a more equitable workplace. He plans to implement a profit-sharing model that allows all employees, from housekeeping to executives, to benefit from the company’s success. “If we sell the company, and there will be value created, it will be split across the entire pool of employees,” he explained. This approach not only fosters a sense of ownership among employees but also aligns their interests with the long-term success of the company.
Currently, The Honourable Merchants Group employs around 70 people, with plans to expand to approximately 250 by the end of next month. The company will be headquartered in Nyon, Switzerland, a strategic location near Geneva, where many luxury brands are based.
A Legacy of Innovation
Bennahmias’s tenure at Audemars Piguet was marked by a series of bold moves that aligned the brand with contemporary culture. He forged partnerships with high-profile figures such as Arnold Schwarzenegger, Jay-Z, and Lionel Messi, successfully bridging the gap between luxury watchmaking and popular culture. His efforts contributed to a remarkable increase in the brand’s revenue, which soared from 600 million Swiss francs to 2.35 billion Swiss francs during his leadership.
Despite facing criticism for his approach, particularly regarding the launch of the Code 11:59 watch in 2019, Bennahmias remains unapologetic. He believes that innovation and cultural relevance are essential for the survival of luxury brands in an increasingly competitive market.
Looking Ahead
As Bennahmias embarks on this new venture, he acknowledges that skepticism is inevitable. “At the beginning, we will have a lot of naysayers. And like I always say, bring them; they’ll feed us,” he remarked, demonstrating his confidence in the potential of The Honourable Merchants Group.
In a landscape where luxury brands are often criticized for losing their authenticity, Bennahmias’s approach may offer a refreshing alternative. By prioritizing human connections, employee welfare, and a long-term vision, he aims to create a luxury ecosystem that resonates with both consumers and employees alike.
Conclusion
François-Henry Bennahmias’s return to the luxury sector with The Honourable Merchants Group marks a pivotal moment in the industry. His commitment to redefining luxury through human connections and equitable business practices could set a new standard for how luxury brands operate. As he prepares to unveil his acquisitions and new brands, the luxury world will be watching closely to see if Bennahmias can once again transform the landscape, just as he did with Audemars Piguet.
