‘We See India As A Market With Great Potential & Longevity’
In January last year, Alexander Schmiedt joined as Brand Director for the Middle East at Swiss watchmaker Vacheron Constantin, the world’s oldest watch manufacturer with almost 260 years of uninterrupted history. Prior to his appointment at Vacheron Constantin, Schmiedt spent 11 years as Managing Director of the Watches Division at Montblanc International; a part of the Richemont Group.
In an interaction with Smita Tripathi, Schmiedt discusses the importance of India for Vacheron Constantin, the growing luxury market and the lack of impact of smart watches on fine watch making. Edited excerpts:
How important is India for you?
India is very important and a significant market for the brand and Vacheron Constantin has a long-standing history with the country as early as the 18th and 19th Century. Of course, back then it was with the Maharajas and over the years we have been able to pave our way and build a discerning customer base for the brand.
According to market research on luxury, there has been a 25 per cent growth in the Indian luxury market from 2015-2016 — from $14.7 billion to $18.5 billion. Additionally, the Indian luxury consumer is more inclined towards experience than the products, sustainability and affordability.
In the whole Vacheron Constantin universe where does India stand? Which are your top five markets?
As I said before, we see India as a market with great potential and longevity. In India, the sheer number of the consuming population with large disposable incomes and the aspiring youth gives us a very high potential in the long term by all estimates. We may face some short-term obstacles — such as demonetisation and tax, but I’m extremely confident of its medium to long-term potential. Our top markets today are most importantly China and HK (in Asia), Europe, especially Switzerland, the US and the Middle East.
How is the Indian consumer different from say, a consumer in the Middle-East or Europe?
Our clients today are very global wherever they live. They travel the world and have similar preferences and expectations. There might be a difference depending upon what level the market has been exposed to luxury. Markets like Europe and the Middle-East were exposed to luxury a long time ago and it has only evolved since then.
Hence, even the customer has evolved and grown with this. In India the luxury market started growing at a later stage but has grown rapidly and hence, we might find slight differences. Having said that, this gap is being bridged very quickly.
Which are the most popular watches in India and which are popular in the APAC region?
Like in the rest of the world, in India our popular collections such as the sporty Overseas and the iconic classic collections such as Patrimony and Tradionnelle do very well. For the ladies, collections like the 1972 and Malte are well received.
In recent years, we have seen a gradual rise in high complication pieces in the region, this is purely because of their knowledge of hand-crafted products, particularly so, because of India’s rich heritage of craftsmanship.
How does Vacheron Constantin ensure it stays timeless?
Strong values and the art of watchmaking continue to be the driving force for Vacheron Constantin. The secret is in the hands of our watchmakers — the success comes from their work and passion.
Also being the oldest and uninterrupted watchmaker of the world comes with its share of artistic and cultural responsibility — the brand has been at the forefront to preserve certain forms of art that define the characteristics of our timepieces.
In addition, over the last 262 years Vacheron has developed, or rather, continuously reinvented its style that has always been a mix between Swiss precision and almost a ‘Latin’ sense of sophisticated beauty. And this essence allows Vacheron to perpetuate timelessness in a way very few others can.
What about smart watches? Do you think they will impact the luxury watch market?
Smart watches and fine watchmaking are two separate pairs of shoes. The first is technology, driven by functionality, the second is a form of art that is beyond pure functionality and driven by emotions and passion. Hence, despite the fact that they can be both worn on the wrist, they are both bought for very different reasons.
Funnily enough, the more technology advances and the shorter lived and faster innovation becomes, the more we see an appreciation of clients for the things that last — among them something made by hand becoming true luxury.
Brands like Rolex and Omega are very popular in India. They are known for their heritage and star power. How is a Vacheron Constantin customer different?
Vacheron is a very different brand. We have on purpose always been the opposite of ‘volume’ and our clients look for something exceptional that not everybody else has. Of course, we are working to continuously raise the visibility of Vacheron in the market, but in a very selective way. Maybe the best way to describe Vacheron — and our clients — is ‘one of not many’.
What are your plans for India? How many retailers do you have here and will you be expanding the retailer base?
We definitely plan to expand our business in India but at a slow and gradual pace. Our clear vision is in distribution, “quality is more important than quantity”. We also plan to open a boutique in the country in order to show the customer base our complete range of offerings.
What makes a luxury brand? How important is innovation to a luxury brand?
Tradition and innovation are two sides of the same coin. What we today see as tradition was innovation in the past. Since the beginning, Vacheron has been able to foster tradition with continuous innovation. In other words, we believe, if you want to create tradition of tomorrow, you cannot stand still. You have to reinvent yourself. This is a huge challenge, but also a big motivator. And this is what we have been doing since 1755.
