The Swiss watchmaker Richemont has destroyed $432 million worth of its designer timepieces over the past two years to avoid them being sold at discount prices. Cartier watches start at $1,080 but can cost more than $21,000. Richemont CEO Richard Lepeu described the event as an “exceptional measure in exceptional circumstances” when stocks of its wristwatches began building up in display cabinets in Asian markets. Lepeu was concerned that unsold stock would end up being discounted on the so-called “grey market” of unauthorized resellers, thereby damaging the image and pricing power of the Cartier brand.
