Chinese jeweller Chow Tai Fook and Swiss luxury goods company Richemont have established a joint venture in China.
The JV will distribute Richemont’s watch brand Baume & Mercier in mainland China and should boost the brand’s overall sales as well. While financial details have not been released, reports say the two companies will hold an equal stake in the business.
Chow Tai Fook, which already distributes Swiss brands including Cartier, Piaget, Corum and Blancpain, will draw on its vast network of more than 1500 stores in China.
Analysts say Chow Tai Fook is well-positioned to capture the gradual recovery of luxury spending in the Chinese market due to its vast store network. Luxury sales are expected to improve this year in China as a result of smooth leadership transition.