South America, a small but steady portion of the Haute Horlogerie market

To judge by its depiction in what Americans call “B Movies”, South America would either be a jungle where cigar-smoking drug lords shoot at each other or an endless carnival where women in bikinis dance on a beach while their boyfriends play football. Though one may, in fact, run into scenes like this at some locations, the sub-continent is really made up of many different countries that represent a small but steady portion of the Haute Horlogerie market.

Brazil, the “B” in BRIC (the acronym for “Brazil, Russia, India, China”, the four most rapidly-developing economies in the world), is both the largest and most populated country. Whereas most South Americans tend to calculate any local price in terms of its equivalent in US dollars, Brazilians prefer to think in terms of their own currency. Maybe it’s because they’re the only ones who speak Portuguese or, more probable, because they are the most powerful in terms of their economy (their many FIFA World Cup wins also contribute to their national pride, by the way).

Brazilians have a rich tradition in jewelry, and their top brand, H. Stern, has worldwide reach. The Haute Horlogerie market, on the other hand, is relatively less developed. It is, however a larger market for the sport élégance and sport technique segments: Brazil is Rolex’s stronger market in the area, and at this point, the brand making more progress seems to be Breitling, who has recently opened a local branch. And even with the ongoing crisis, other well-established names like Omega also manage to show reasonable numbers.

Venezuela, the top market for complicated watches

To the North of Brazil is Venezuela, currently enjoying a particular brand of socialist government, à la Hugo Chavez. It is, however, the top South American market for complicated mechanical brands like Audemars Piguet, Vacheron Constantin and many of the “atelier” brands (it is also Scotland’s best customer; Venezuelans have the highest per-capita consumption of Scotch whisky in the world). As an OPEC country, Venezuela’s economy is tied to the price of oil (the cost of filling up your SUV’s tank in Venezuela is so low it would shock any American or European into disbelief), and with the price per barrel going from 60, to 100, then back to 70 dollars in just one year you get an idea of the situation these days.

Venezuela’s western neighbor is Colombia, one of the countries where the Haute Horlogerie clientele was most affected by the Madoff and Stanford Bank debacles. In that country, it was the top-of-the-range brands who suffered the most: well-established market leaders have seen their numbers fall by 50%, while the smaller Haute Horlogerie brands took an even more serious hit. Top brands like Rolex and Cartier are reorganizing their chains of distribution through new representatives, getting ready for a fresh start. Meanwhile, business is good for access range brands like Edox and Tissot.

Among the other Andean countries is Chile, occupying a long but narrow stretch of land between the Andes Mountains and the Pacific Ocean and having one of the healthier economies; though the HH market is not big. Chileans are hard workers and have enjoyed good times only for the last 20 years. Besides, their culture shuns ostentation and would rather go for a more discreet style of luxury. Most top brands choose to locate themselves in or around Alonso de Córdova, a very chic street in Las Condes, the upscale district of Santiago, the capital city.

Argentina, the of polo

To the East of Chile is the other large country in South America: Argentina, the land of Tango, top-quality beef and, of particular interest for the HH market, the land where the best polo in the world is played. The Argentine Open will take place next November and only three brands, Jaeger-LeCoultre, Rolex, and Piaget, have promotional access to the finals at the Argentine Polo Grounds in Buenos Aires.

Globalization and decades of misgovernment have forced Buenos Aires to surrender its title of cultural capital of Latin America (some say to Miami, of all places), but the city still maintains its cosmopolitan charm and continues to be the safest big city in the sub-continent. Although there has been a noticeable drop in sales in Argentina, it’s not as deep as in some other countries. Some new boutiques have appeared, like the Officine Panerai store across the street from the top hotel in Buenos Aires.

So you know now. You can’t dance the Tango in South America while a Fidel Castro look-alike caresses a dark-skinned woman wearing a green top and a hairdo that includes bananas and pineapples (all under the gaze of a gigantic statue of Jesus on top of a hill) unless you are an actor in a “B Movie”. But at least, you will be able to sell some very good watches.