Jean-Claude, currently CEO of Hublot Hublot, will be officially appointed as LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) in March Biver talked about the Group’s watch expansion strategy in an interview with the Wall Street Journal, but analysts are not optimistic about LVMH’s watch expansion. On the one hand, LVMH Group’s watch brand is not well-known, on the other hand, the sales network is far behind competitors Swatch Group AG (URH.VX) Swatch Group and Swatch Group AG (URH.VX) At the same time, LVMH currently does not have the entire manufacturing function of the entire industry chain.
LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) Brands currently owned by the Moët Hennessy-Louis Vuitton Group Watch Division include Hublot, TAG Heuer and Zenith, Chaumet and Bulgari, as of 2013 In the 2013 fiscal year, which ended December 31, 2013, revenue from the watch and jewelry division fell 1.83% to 2,784 million euros.
A Exane BNP Paribas Luxury industry analyst Luca Solca said that compared with competitors, LVMH’s brands are not competitive, so it is difficult to get enough sales space for retailers.
As of the end of December 2013, Swatch Group AG (UHR.VX) revenue increased by 8.3% to CHF 8.817 billion. Cie. Financiere Richemont SA (CFR.VX) calendar for the fiscal year ended March 31, 2013 Peak Group’s revenue reached 10.15 billion euros, which is much higher than LVMH’s entire jewelry and watch division’s 27.84 euros.
Although the number of LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) direct-operated stores under the brand of Moët Hennessy-Louis Vuitton Group has increased from 42 to 70 in 2009, the growth rate has reached two-thirds, It is 1050 behind Richemont.
In addition, the LVMH brand in the Chinese market, one of the largest watch markets, is seriously lacking in competitiveness. In addition, some components of the LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) watch need to be purchased from Swatch Group AG (UHR.VX), although LVMH claims it is Set up a production plant, but it takes at least three years to complete.
In addition to the above reasons, the watch and jewelry department is currently the lowest-earning and worst-performing LVMH department. It is unlikely that the group will put the most energy and investment in this department. Without any advantage, let Jean-Claude Biver With extensive industry experience, it is also difficult to reverse the LVMH watch division will be subject to Richemont and Swatch for a long time.