Onwards and upwards for Chopard

To sum up, all the indicators are green, even though the Swiss watch sector has had to contend with some major challenges, beginning with the strong Swiss franc, soaring commodities prices, and to crown it all an uncertain economy. “At constant exchange rates, Chopard recorded a 15% increase in sales. We haven’t quite returned to 2008 levels, but we’re close,” Scheufele declared. “What I find most reassuring and encouraging is that 2011 was a much healthier year, and more representative than three years ago, at the height of the watchmaking bubble and its attendant excess.”

With this to build on, Chopard is investing, particularly in its network of stand-alone stores. The brand opened its twentieth last year in the Greater China region (China, Hong Kong, Macao), in addition to eleven new stores in other markets and fifteen renovations. More openings are scheduled for 2012, culminating in the extension of its boutique on the upmarket Rue du Rhône in Geneva, which will gain a floor. Chopard currently has 131 stand-alone stores and some 1,500 retail partners.

Fleurier Ebauches is operational

The firm is also bolstering production. “Work on the Fleurier Ebauches site is nearing completion and production has begun,” continued Scheufele in the same interview. “As well as 4,500 L.U.C calibres, we expect to manufacture in the region of 5,000 Chopard movements for our various collections. We have three proprietary base calibres, produced by our site. Compared with Chopard Manufacture, the approach is different, very industrial, which entails more planning and optimal logistics management. Some of the new collections shown at Baselworld will be equipped with these movements. Within the next two to three years, we anticipate annual production to reach 15,000 to 20,000.”

This upscaling has brought with it a wave of recruitment – the 150 new jobs created in 2011 bring total headcount to 1,965 people – and massive investment. “Including production and distribution, we invested CHF 50 million (USD 55 million / EUR 41.5 million) in 2011. Chopard will invest a further CHF 50 million in capacity this year.” Not to mention the CHF 10 to 15 million (USD 11 to 16.5 million / EUR 8.3 to 12.45 million) slated to extend the Meyrin site in 2013 with a new building where gold cases will be made, meaning more new jobs. Karl-Friedrich Scheufele’s conclusion for 2012: “It could be a fairly similar year to the previous one, with many challenges. We need to be ready to adapt in the short term.”