Vacheron Constantin expands production to meet Asia demand
Richemont's prestigious watchmaker will continue to widen its reach in China with new stores in both first- and second-tier cities
Luxury watchmaker Vacheron Constantin plans to increase manufacturing capacity at its plant in Geneva to meet demand spurred by growing affluence in Asia, according to the company's chief.
In an interview with the South China Morning Post, Juan-Carlos Torres, chief executive since 2005, said Vacheron would continue to expand on the mainland by opening new stores in both first- and second-tier cities, following the successful launch of the brand's Shanghai showroom in 2008. The boutique not only sells and displays products, but also stores and maintains timepieces for customers.
"We are going to double our workforce and increase production capacity at home [Geneva] from 20,000 [timepieces] a year to 30,000 by 2015," Torres said.
He added that the demand from customers in Asia had swiftly expanded on the back of the buoyant Asian economic outlook.
Torres acknowledged that the bold expansion in production would have to go hand in hand with improvements in technology and distribution, otherwise the 257-year-old watchmaker could struggle to uphold the high quality of its timepieces.
Vacheron, the oldest brand in the Richemont stable, plans to spend more than US$100 million from now until 2020, reflecting its commitment to maintaining quality and tradition.
"After conveying the core message to the Chinese customers, they become more educated and begin to value watchmaking in terms of art, craftsmanship and design," said Torres, who expressed interest in opening boutiques in second-tier cities after a runaway success in the Shanghai flagship store.