Opinion
Why Vacheron Constantin excels at everything, from product creation to brand building and team leadership
Why Vacheron Constantin excels at everything, from product creation to brand building and team leadership
In February this year it was reported in the latest Morgan Stanley x LuxeConsult report that Vacheron Constantin had closed 2023 with an estimated record turnover of CHF1.097 billion based on estimated sales volume of 35,000 units. The venerated haute horlogerie maison has always enjoyed steady success throughout most of its long history spanning more than two centuries long, but the last five years had seen unprecedented growth even as the company — indeed the entire Swiss watch industry — negotiated trying times wrought by the pandemic.
But just as quickly as cities locked down, wallets opened up and consequently the years 2022 as well as 2023 in the first half ultimately went down as some of the best moments for the luxury watch business. From world number 11 in 2021, Vacheron Constantin jumped to eighth place in 2022, holding firm to that position in 2023. Closing 2022 with an estimated turnover of CHF825 million based on estimated number of units sold at 32,000, the maison grew by CHF272 million within one year to close 2023 with a spot in the Swiss watch industry’s highly exclusive billion-dollar club. Other watch companies here include Rolex, Cartier, Omega, Audemars Piguet, Patek Philippe, Richard Mille and Longines, with Audemars Piguet and Richard Mille being the two newer members.
Vacheron Constantin's New York flagship boutique, opened in 2021
Meanwhile, sources within the industry revealed to Revolution that Vacheron Constantin has been hovering very close to the billion-dollar mark for years, closing at an impressive CHF933m in 2022. That was a phenomenal year for the brand and the industry at large as it headed towards 2023 with exceptional momentum. According to Richemont Chairman Johann Rupert in the 2022 Richemont annual report, the group’s specialist watchmakers reported strong sales rebound of +53 percent to €3.4 billion and operating margin recovery to 17.3%, with nearly all maisons exceeding pre-pandemic sales levels. Given its strong portfolio of annual launches plus the overall exceedingly positive feedback on its creations by collectors from all corners of the globe, Vacheron Constantin is certainly among Richemont’s best performing maisons.
Ascending to ever greater heights, Vacheron Constantin draws its strength from staying true to its core identity as a luxury haute horlogerie maison. From building strong product pillars and brand partnerships to conquering new territories and challenges, Vacheron Constantin is doing everything right and has never looked better. Let’s look at the five key reasons behind the maison’s winning success formula.
Redefining the Vacheron Constantin Overseas
One of the most prominent trend during the post-pandemic years was undoubtedly that of sports watches with integrated bracelets. Brought about by a global desire for luxury sport-chic timepieces, this category evolved into a full-blown hype between 2021 and 2022 as consumers around the world chased the luxury equivalent of designer sweatpants. Just before the pandemic in 2019, Vacheron Constantin presented its best looking version of the Overseas ever. Then, the maison had redesigned this iconic model, giving it a sleeker, more refined aesthetic which is much more congruous with Vacheron Constantin’s identity as an haut de gamme manufacture than the second generation models released in 2006, and resonated deeply with luxury consumers who by then had cultivated a distinct yen for classical elements of high watchmaking.
Thereafter, the Overseas evolved by leaps and bounds, with collectors all around the world going absolutely nuts for the Overseas Perpetual Calendar Ultra-Thin Skeleton of 2020. It was in this definitive moment that the Overseas, which has been in Vacheron Constantin’s portfolio since 1996, had truly arrived. Meanwhile, its predecessor, the wildly popular Ref. 222 being one of the non-Genta-designed sports watches of the era finally got the recognition it so well deserves when Vacheron Constantin remade it for its Historiques collection in 2022. All of this just goes into re-establishing Vacheron Constantin as one of the true giants of luxury Swiss watchmaking.
Commitment to Haute Horlogerie
Despite the resounding success of the Overseas, Vacheron Constantin understood the importance of building a well balanced portfolio. Rather than switching up its product strategy to pull back on other collections and ramp up production for the Overseas in order to meet demand, which was overwhelming across all markets, the manufacture astutely stayed close to its long term vision and core identity as an haute horlogerie maison. Working tirelessly to build its stable of high and grand complications with the ultimate goal of sharing in its passion for watchmaking, Vacheron Constantin continually showcased strong innovative ideas in high and grand complications.
These watches emphasize that the manufacture is not merely stuck in the past but has a firm eye on the future, and plays an active role in determining its path ahead, which has undoubtedly given customers new and old alike a sense of promise and excitement. Watches like the Traditionnelle Tourbillon Retrograde Date Openface shows how contemporary Vacheron Constantin designs can be, even if they have a long history going back almost 270 years. Others like the Traditionnelle Twin Beat Perpetual Calendar offer innovative insights into high watchmaking.
Vacheron Constantin Les Cabinotiers The Berkley Grand Complication
And of course the crème de la crème at Vacheron Constantin remains Les Cabinotiers, a collection that the manufacture consistently refreshes with exhilarating feats of haute horlogerie. In addition to being a strong demonstration of in-house savoir faire, such creations inspire watch collectors to dream for more and reap in the wonders of mechanical high watchmaking.
Onward with Métiers d’Arts
Apart from high and grand complications, métiers d’arts is one area where Vacheron Constantin has repeatedly challenged itself. Indeed this manufacture is one of the few that commits itself thoroughly to the traditional Swiss métiers, taking it upon itself to master the know-how internally as early as the mid 2000s. This is no small feat but one that reaped great dividends for Vacheron Constantin as the manufacture now has among the largest and most varied collection of métiers d’arts timepieces in the luxury watch industry. Each year it reveals new and ever more creative interpretations, achieving some truly incredible heights and opening up new possibilities not just for itself but the industry at large.
For instance, Vacheron Constantin was one of the first to perceive métiers d’arts as a way to bridge different cultures, creating such exalted collections as Tribute to Explorer Naturalists, Tribute to Great Civilisations which Revolution founder Wei Koh saw first hand at the global unveiling at the Louvre, and many more. Through these watches, the manufacture displays its incredible knowledge of art and world culture, knowledge of the ancient métiers, its manual dexterity with handcraftsmanship and its perceptive approach to luxury watch design, which is always surprising.
Métiers d’arts is an area well embraced by several large Swiss watch firms, not just Vacheron Constantin, but the way this maison offers unique insights either highlighting the crafts or on the artworks they depict is always a pleasure to behold. Under the artistic vision of the maison, such watches become objects of discovery and inspiration, whether they feature natural scenery, mythical symbols or contemporary architecture.
A Well Rounded Vacheron Constantin Identity
With almost 270 years of history, Vacheron Constantin is unrivalled in watchmaking heritage and yet it is more than a watch company, but an institution of art and horological craftsmanship. In recent years the maison expanded its reach well beyond the watchmaking world, building strong ties with the fine arts through a landmark partnership with the Louvre. Apart from working closely with the museum in terms of restoring its collection of mechanical clocks and watches, Vacheron Constantin gains access to some of the most lauded masterpieces of all time. Not only has this valuable partnership enabled the manufacture to delve deeply into the artworks from a historical context, it has also given it opportunities to examine the pieces in up close to really understand the nuances of these priceless pieces.
Louvre president Jean-Luc Martinez and Vacheron Constantin CEO Louis Ferla. (Image: Vacheron Constantin)
The Metropolitan Museum of Art (MET), New York
After the Louvre, Vacheron Constantin also formed an alliance with the Metropolitan Museum of Art, stepping ever farther into the precious universe of our artistic and cultural heritage. The significance of partnerships like these cannot be overstated as they place the manufacture directly within the context of two of the greatest cornerstones of the art world. And why shouldn’t it, since the maison has existed in a timeline parallel to many of the greatest works housed within the museum’s walls. While brand partnerships with external organizations is a fairly common practice in the luxury industry, Vacheron Constantin’s careful management of its collaborative pursuits has not only had the effect of elevating its brand equity but assuring the perpetuity of this message as well. Because today’s luxury customers aren’t only interested in what you produce, rather, they are much more interested in why you produce what you produce.
Insightful Leadership
Since 2017 Vacheron Constantin has been guided by the leadership of Louis Ferla, who was tasked to “right the ship” and modernize the maison’s image. Then just 42-years old, Mr Ferla arrived with more than 10 years at several key leadership positions around Asia Pacific markets Hong Kong, Taiwan and China, as well as a stint in the United Arab Emirates. He oversaw the necessary introduction of key new collections such as the FiftySix which is designed to open up the world of Vacheron Constantin to a younger audience, and the relaunch of the Égérie line now enhanced with mechanical movements and small to medium complications intended for a feminine audience. In addition, the resounding success of the new and improved Overseas collection could also be attributed to his vision for the company and its product strategy.
Working alongside other Vacheron Constantin heavyweights such as Style and Heritage Director Christian Selmoni, Mr Ferla made it a clear priority to emphasize on the maison’s identity and heritage. Year after year Vacheron Constantin brought numerous thematic exhibitions to key cities, such as Anatomy of Beauty, Diptyques – A History of Collaborations, and most recently From Geometry To Artistry. Always showing a strong link between the past with beautiful heritage pieces and the present with its current collections, these showcases also encourage customers and enthusiasts to perceive every Vacheron Constantin watch as more than just a watch.
Vacheron Constantin CEO Louis Ferla
Mr Ferla’s self-effacing leadership style allows the brand and its products to always take center stage. Fluent in Mandarin, his humility is rare in an industry where CEOs are often expected to commander the spotlight, yet he is every bit the visionary without so much as a shred of arrogance. Passing him by along the hallways of Palexpo this Watches & Wonders, our eyes met briefly and I had expected Mr Ferla to simply look on ahead. But no, even though we’ve never officially met, he offered a discreet nod and smiled — and it was that kind of smile where you can see it in his eyes.
Indeed Mr Ferla has many virtuous qualities, one of which is his strong acumen as a leader and strategist. Revolution understands as well that he is deeply respected by his global team of staff comprising over 1,200 employees, who fully appreciate his strong commitment to the long term goals. And while having the tenacity to stick to the plan — as opposed to changing with the wind — is definitely a sign of prudent good leadership, what is far more impressive is said leader’s ability to devise a plan that was flawless from the start.
Vacheron Constantin
