It?s a watch brand that considers Cartier and Rolex as mass. And after 255 years of continuous watchmaking, it is among the oldest makers of timepieces in the world. It makes just 18,000 watches annually. The average watch is priced at $25,000, and prices could go up to $7.5 million.
No wonder that Vacheron Constantin watches are a comparative rarity and their boutiques even more so. The luxury watch brand recently inaugurated its first boutique in India?one that had opened about a year ago, but given the downswing in the market, had never got around to inaugurating. Well, it finally did as its global top brass flew down for what is just their 23rd boutique globally. ?The opening of a boutique is confirmation of the great potential in the market,? says Yassin Tag, Brand Manager, Middle East and Indian Sub-Continent, incharge of the Indian market.
Marc Guten, International Director, is quick to reaffirm that India has potential, but work remains to be done. ?There is huge potential. We need to put in more effort in our presence in India,? he admits.
Building On Memories
Not that Vacheron Constantin does not have a history in India. The brand was available in India from the late 19th century and that generous patron of luxury brands, the erstwhile Maharaja of Patiala had got a platinum bracelet wristwatch made in 1916. More recently, as the Indian economy began opening up, the brand was quick to enter into an exclusive distribution partnership with Mumbai-based DiA Jewellers, already a 15-year old partnership. Vacheron Constantin presented part of its collection of old and modern watches in Mumbai in December 2006 and the CEO Juan-Carlos Torres, had flown in for a champagne and fashion filled event.
Guten is quick to compare the Indian situation to one in China in the last decade and a half, which has grown exponentially for the brand as a market. The brand, which has been part of the Richemont Group since 1996, still counts Europe as its biggest market, though Asia is unsurprisingly, its biggest market. Guten says that applying the China model may not work in India as culture and mentality are not same in the two countries. ?In China, reflection of one?s social status has been a major factor,? he says. ?Indians display marked differences in behaviour across regions. Also they are still not used to going to a mall to shop.?
?We have to revive our links to India,? says Guten. ?We have to improve our retail, marketing, after sales? and now that we have our first outlet, we look forward to better awareness. The brand is looking for a suitable location in Mumbai, but says it has yet to get the right one. ?We have to look at the business step by step,? he says. ?The price is a factor, and we trying to address the duty issue. The advantage of having a store here will also be in terms of after sales service.? He admits that some Indians are buying abroad, but increasingly purchases are being in India too. ?We do not want customers to think that I bought my watch somewhere else and will I get service in India. The boutique also provides the Vacheron Constantin experience?the service, the image, the range of products.?
Admission that the first year of having a boutique wasn?t great is only oblique. Tag explains saying the mall (DLF?s Emporio) was new and took time to pick up. Jay Makhijani, Business Development Head?Retail, DiA says that as 2009 wasn?t a great time for luxury business globally, the mall took time to pick up. ?The mall was the first step towards consolidating everything into one space as besides the Oberoi, there was not much of a luxury shopping environment in Delhi. The mall has taken a year and a half to get people in Delhi used to coming to a mall. The first year was a disaster, though the last eight odd months have been better.? He, however, also says that top one or two percent of the people who can afford a Vacheron Constantin watch will not be affected by any recession. ?The luxury business is usually to last to enter a crisis and the first to get put. Also Indians will buy when they can afford it, unlike Americans buying on credit. And they can afford, so we see a great growth potential.? Interestingly, while globally, the ratio of men and women buyers is 80:20, in India it is approximately equal, says Jay Makhijani, Business Development Head-Retail, DiA.
Given their limited availability, Vacheron Constantin watches have the power to make their wearer feel unique, stresses Guten. ?There is always greater demand than we can produce.?