LVHM, as the world’s largest luxury goods group, has long been constrained by Richemont and Swatch Group in the watch market. The newly-appointed CEO of the Watch Division predicted that under his leadership, the Group’s watch sales could achieve a growth of 5% -7%. According to the financial report, in 2013 the LVHM Group’s watch and jewelry division revenue fell 1.83% year on year.
In this regard, industry insiders said that this forecast is because the Chinese luxury watch market has been deeply adjusted for two years and has accumulated an upward momentum, but it will be difficult to achieve growth if luxury tax is increased in the future. It is reported that the watch brands of LVHM Group, including Hublot, TAG Heuer, and Zenith, are difficult to compete with the other two luxury goods groups in terms of brand awareness and market share. According to industry insiders, the proportion of luxury watches under the LVMH group is small, which is a fact. Even if adjustments are made immediately, it will take a long time to obtain market recognition. Increasing the proportion of jewelry watches in the short term will not be immediate. It is worth noting that the Bulgari brand, because the brand has certain advantages in the field of jewelry, maybe this can be its breakthrough point in 2014.
According to statistics, some of the watch components of the LVMH Group were purchased from the Swatch Group, which in recent years decided to reduce its supply year by year.