LVMH, a luxury goods conglomerate that owns everything from Dom Perignon to Louis Vuitton to Fendi to De Beers, plans to try its luck in the smartwatch business through a partnership with a technology company.
In a Wall Street Journal interview published Friday, LVMH watch division head Jean-Claude Biver said his company is currently in "some talks" about partnering with a tech company to build a smartwatch. He noted that "maybe in nine months, we will have a smartwatch." He didn't specify which company may be chosen for the smartwatch design.
It was Apple that was at the front of Biver's mind during the interview. He told the Journal that other companies have tried smartwatches, but "when Apple does it, it will sell." And this has led his company to consider how to meld its high-fashion brand with smartwatch technology.
The device, which will cost just over 1,000, aims to attract a new generation of consumers for whom a wrist piece has become a must-have item. Biver told German newspaper Handelsblatt that LVMH "welcomed the arrival of the Apple Watch because the marketing power of the Apple brand will help create a new class of clients enthusiastic about luxury watches," reports the *Business of Fashion - * a sentiment shared by Kering's CEO of luxury watches and jewellery, Albert Bensoussan.
LVMH, which owns the Zenith, Hublot and Tag Heuer watch brands, hopes to make the most impact with its new device in China, where it wants to focus on "winning market share, rather than being driven by specific sales and profit targets."
Apple's long-awaited smartwatch looks "too feminine" and its design will not stand the test of time, luxury giant LVMH's watch guru has told German media. googletag.cmd.push(function() googletag.display('div-gpt-ad-1449240174198-2'); ); Jean-Claude Biver, who heads the French group's luxury-watch division, said the US tech titan had made "some fundamental mistakes" designing the Apple Watch."This watch has no sex appeal. It's too feminine and looks too much like the smartwatches already on the market," Biver said in an interview with daily Die Welt."To be totally honest, it looks like it was designed by a student in their first trimester," added Biver, who heads up the brands Tag Heuer, Zenith and Hublot.Biver predicted the much-anticipated device, with its square face and curved edges, would soon be outdated."Luxury always has something timeless, it's rare and conveys prestige," he was quoted as saying, adding that the same could not be said for Apple Watch, which is expected to be bought by millions of customers and will likely be beyond repair in a few years' time.Biver is not the first watch chief to be dismissive of Apple's efforts. Swatch CEO Nick Hayek earlier told Swiss media that the world's biggest watch group was "not nervous" about Apple's foray into the market.Apple Watch, which comes in several colours and links to the iPhone, will start at $349 (270 euros) when it is released early next year. The wrist device is the first new product category to be launched by Apple since the death of co-founder Steve Jobs in 2011. 2014 AFP
He said Tag Heuer had "no choice" but to introduce its own smart watch as a way of resisting inroads from Apple, adding that the brand would continue it's two-pillars policy of making avant-garde, connected timepieces on the one hand, and affordable luxury mechanical wristwear on the other.
The example the R&D team provided me with was the Voyager Minute Repeater Tourbillon, a complicated 2019 introduction with a transparent dial that allows a full view of the movement's 345 internal components. In developing the Voyager Minute Repeater Tourbillon, the marketing team for Louis Vuitton Fine Watchmaking requested that the watch be exactly 9.7mm in height with at least some degree of water resistance (it ended with 30 meters, not enough to take diving but enough to feel comfortable with on a daily basis). The issue is that the movement itself, caliber LV100, has a height of six millimeters, which doesn't leave much space to incorporate the appropriate gaskets to achieve the desired water-resistance level. And finally, the watch is a minute repeater, so there has to be enough space for the hammers to strike the gongs.
Indeed, it is not clear if there is a market for these kinds of bling-drenched gizmos. Most smartwatches are marketed as fitness companions, and it may not be all that fun working out with a $180,000 watch jiggling on your wrist.
Yet it's the latter part where Urquhart sees an opportunity in the newly released Apple Watch. He says the booming wearables market may eventually boost Omega watches, which can easily cost thousands of dollars.
Urquhart looked down at a wrist adorned with a $7,500 Omega Seamaster watch, the latest limited edition timepiece that he said is identical to the one featured in "Spectre." He quipped, "I think the watch that Mr. Bond is wearing in this film is as smart as you can get."
"We might see fewer gold watches being bought because, you know, who the hell needs a gold watch," he said. Although he sees India's emerging middle class as a "big market," Urquhart said it's still an "underdeveloped market for watches."
The state of play means that luxury brands like Omega, which rely on sophisticated and style-conscious consumers, are eyeing digital trends carefully. Yet some industry researchers say the Swiss watch and smartwatch are two different businesses that could coexist peacefully.
Omega's Urquhart had kind words for the tech giant's foray into the hot wearables market. "Obviously, when the No. 1 brand in the world comes out with a smartwatch, they're not going to fool around. They're going to put a lot of effort into that," Urquhart said.
Separately, watchmaker Tag Heuer is delving into the smartwatch sector. The LVMH brand is expected to launch its own smartwatch this quarter, in partnership with Google and Intel. It's a move that Urquhart thinks is an attempt by Tag Heuer to "reposition the brand a little bit lower."
For mid-range brands like Tag Heuer that target consumers with relatively affordable prices and aim to differentiate their brand, jumping into the smartwatch fray is "not a bad gamble," said Harvard's Raffaelli. But for high-end brands, he said, there's "little to gain" in that market.
The changing watch market raises the possibility that James Bond himself could one day strap on a smartwatch for a 007 sequel. Yet observers like Raffaeli think that "like his penchant for bespoke suits and classic drinks, a Swiss watch will always find its way back on his wrist."
When Louis Vuitton debuted its Tambour collection twenty years go, watches made by international fashion houses were primarily quartz-powered and mass-produced. With a few exceptions, notably Cartier, Chopard, Hermès, Gucci and Dior, global clothing and accessories makers have historically found the high-end watchmaking market too challenging to enter and succeed, beyond launching a few novelty pieces or as a partner with an existing Swiss maker.
Organic revenue growth over the period was 40% compared to 2020. Compared to 2019, organic growth over the first nine months of 2021 was 11%, with trends in the third quarter (+11%) comparable to those of the first half, both by activity and by region.
The Watches & Jewelry business group recorded organic revenue growth of 49% in the first nine months of 2021 compared to the same period of 2020 and 4% compared to 2019 (excluding Tiffany, which was consolidated for the first time in 2021). Driven by the growing success of its iconic products, Tiffany enjoyed a remarkable performance, particularly in its major market, the United States. Bvlgari rolled out its new line of High Jewelry, Magnifica, and celebrated its Serpenti creations at the Metamorphosis exhibition in Milan. Chaumet launched a new High Jewelry collection, Torsade, inspired by the movement of the frieze adorning the column of the Place Vendôme. In watchmaking, TAG Heuer successfully launched a limited Super Mario edition of its smart watch for gaming enthusiasts.
The Wines & Spirits business group recorded organic revenue growth of 30% in the first nine months of 2021 compared to the same period of 2020 and 10% compared to 2019.
The Fashion & Leather Goods business group recorded organic revenue growth of 57% in the first nine months of 2021 compared to the same period of 2020 and 38% compared to 2019.
The Perfumes & Cosmetics business group recorded organic revenue growth of 30% over the first nine months of 2021 compared to the same period of 2020. On an organic basis, revenue was down 2% compared to the first nine months of 2019.
In Selective Retailing, organic revenue was up 13% compared to the first nine months of 2020 and down 23% compared to the same period of 2019.
Within the context of a gradual exit from the health crisis, the Group is confident in the continuation of the current growth; it will maintain a strategy focused on continuously strengthening the desirability of its brands, by relying on the authenticity and quality of its products, the excellence of their distribution and the responsiveness of its organisation.
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