Luxury conglomerate LVMH is intensifying its efforts to capture a larger share of the global luxury watch market by launching a dedicated watch division and introducing a range of new, high-end models. The company is poised to explore new avenues for growth, potentially through strategic acquisitions to bolster its watch portfolio further.
With luxury watch sales worldwide projected to reach $37 billion by 2032, LVMH strategically positioned itself to capitalize on this growth trajectory. The conglomerate’s jewelry and watch division recorded a 7% increase in organic growth, reaching $11.8 billion in sales in 2023. Armed with 10 watch brands, including TAG Heuer, Hublot, and Zenith, LVMH aims to leverage its diverse portfolio to cater to evolving consumer preferences.
Despite challenges posed by economic uncertainties, executives remain optimistic about the resilience of the luxury watch market, particularly in the United States. The affluent segment drives demand for high-quality craftsmanship, prompting brands to cater to discerning clientele with exclusive offerings.
LVMH focuses on women’s watches to capture market trends, recognizing the segment’s growing significance. Enhanced visibility on social media platforms and a surge in female wealth have propelled the demand for luxury mechanical watches among women, presenting lucrative expansion opportunities.
LVMH brands embrace innovation and reinvention to maintain competitiveness, drawing inspiration from their rich heritage while embracing modernity. TAG Heuer’s success with the Carrera Plasma series, featuring lab-grown diamonds, underscores the brand’s commitment to pioneering design and cutting-edge materials.
Similarly, Zenith’s launch of the Chronomaster Triple Calendar pays homage to its historic prototypes, appealing to a new generation of watch enthusiasts. By offering value-driven propositions, Zenith aims to attract younger buyers while upholding its legacy of craftsmanship.
As LVMH brands ascend the price spectrum with limited-edition releases, they reaffirm their commitment to pushing boundaries and setting new standards in luxury watchmaking. In a landscape characterized by evolving consumer tastes and market dynamics, LVMH’s proactive approach to watchmaking ensures its enduring relevance and appeal to global luxury enthusiasts.
