Jakarta welcomes a prestigious addition to its timepieces

JAKARTA (JP): The economic and political crisis does not deter international luxury brands from developing their businesses in the country.

This month Marks & Spencer opened their new outlets in three prime locations in the city: at Plaza Senayan, Plaza Indonesia and Pasaraya. Earlier, Louis Vuitton had launched its shoe line, also at Plaza Senayan. And the Louis Vuitton Moet Hennessy (LVMH) group did not stop there. On July 1 it expanded its prestigious line to include watches and jewelry.

Jakarta welcomes the addition of Ebel watches at the Time International shop in Plaza Senayan.

The general manager of LVMH Watch & Jewelry Southeast Asia Pacific Division, Christian Weissbach, who was here recently to discuss the newly acquired Swiss watch brand Ebel, sounded very optimistic about expanding LVMH acquisitions to watches & jewelry.

When asked about the financial uncertainty in Indonesia at the moment, he replied, "Of course there is always a risk involved when expanding a company. However, we are dealing here with a product that has been around for many years and maintains its standards of excellence... we are not building something from scratch."

He stated that he feels there will be a market for his product in Jakarta, despite the fluctuating rupiah, "We cater to a specific niche in society, and I believe we have a strong market for that here in Jakarta."

Weissbach is very matter-of-fact about the recent purchase of Ebel. He stated that it will take at least a year to re- structure the head office, realize a profit and run the company at its full potential. They are not planning on overstocking their shelves, but, instead, showcasing products to suit their customers. Although the recent acquisition includes both watches and jewelry, Jakarta will not immediately see any of the exclusive designs by jeweler Fred Joaillier. Perhaps in the future, and if the market is ready.

When asked how they planned to embark on the newly to be distributed product, he confidently stated, "The watch industry is a slow industry, so we are going to clean the market and pay more attention to the brand... we are going to really push the product through advertising."

The head office for the Asia Pacific region, which is located in Singapore, is formulating the new strategy, and will focus on implementing it over the next year.

LVMH is approaching this venture with a great deal of optimism and confidence. "We plan on taking it as it comes," stated Weissbach, when asked on possible expansion ideas. "We have the space and the options to purchase other brands. However, watches are just a part of what we encompass." He summed up the distribution of watches into Jakarta quite eloquently, "If you don't dare to try, nothing will happen!"

LVMH also recently bought TAG Heuer, Zenith and Chaumet, and now represents a collection of fine quality products. The group has ventured beyond its trademark products of leather goods, wines & spirits, fragrances and cosmetics, and this demonstrates their desire to play a major role in all aspects of the luxury goods trade. LVMH is now regarded as the third largest leading watch group in the industry. (Danielle Bray)