Swiss luxury group Richemont and the Chinese jewelry chain Chow Tai Fook have reportedly reached an agreement to establish a joint venture for the sale of high-end watches in mainland China.
An insider from Richemont Group revealed that the new JV will be responsible for the sales of Richemont Group's Baume & Mercier brand high-end watches in mainland China. Each of the two parties will hold a 50% stake in the JV.
Chow Tai Fook sees this partnership with Richemont Group as a significant boost to the development of its high-end watch business in mainland China; while its deep China experience, long-standing reputation and country-wide retail penetration will enhance the reach of the Swiss watchmaker across the country.
Listed in 2011, Chow Tai Fook is a leading jewelry retailer in mainland China, Hong Kong, and Macau. So far, it has become the distributor of many Swiss brands, including Richemont Group's Cartier, Piaget, and Jaeger-LeCoultre.
Financial details of the deal have not been revealed.