Lvmh Predicts Watch Sales Growth Of 5% -7% This Year

LVMH Moët Hennessy Louis Vuitton SA (LVMH.PA), the world’s largest luxury goods group, Moët Hennessy-Louis Vuitton expects group watch sales in 2014 to record a 5-7% growth.

-Jean-Claude Biver, who was promoted to head of the Group’s watch division on March 1, said in a recent interview with Reuters that the overall sales growth of the Swiss watchmaking industry this year will be between 5% and 7%, and the growth level of LVMH will be comparable.

LVMH Moët Hennessy Louis Vuitton SA (LVMH.PA) Watch and Jewellery segment revenue for FY2013 decreased by 1.83% year-on-year to 2.784 billion euros, with a 4% increase in constant exchange rate calculations. In contrast, its main competitor Swatch Group AG (UHR.VX), the world’s largest watchmaker, saw its annual revenue increase by 8.3% to CHF 8.817 billion, while Cie. Financiere Richemont SA, the second largest luxury goods group (CFR.VX) Richemont had revenues of 10.15 billion euros in the 2013 fiscal year ended March 31, 2013, both of which have largely left LVMH.

-Jean-Claude Biver was promoted to be the president of Hublot Hublot, a watch brand of LVMH Moët Hennessy Louis Vuitton SA (LVMH.PA), and served as the CEO of Hublot Hublot from 2005 to 2012. Before he took office, he was interviewed by the Wall Street Journal to talk about the group’s watch expansion strategy, but analysts poured cold water, saying that LVMH Moët Hennessy Louis Vuitton SA (LVMH.PA) is subject to Swatch in terms of popularity, sales network and industry chain. Group AG (UHR.VX) Cie. Financiere Richemont SA (CFR.VX) Richemont Group.

In addition to Hublot, the group also owns watch brands TAG Heuer and Zenith. Jean-Claude Biver believes that despite the lack of popularity of the above three brands in China, there is still great potential for development: ‘Chinese people do not like sports watches from TAG Heuer and Hublot because they are not luxurious enough, but this situation will change. . At the same time, we will make fine-tuning according to their preferences. ‘As for this year’s European market will still be supported by tourists from emerging markets such as China, Russia and Brazil, while the United States, Brazil and Latin America will continue to perform strongly.

At present, some watch components of LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) need to be purchased from Swatch Group AG (UHR.VX), but the latter has decided to reduce the supply year by year in recent years. Supplier acquisition tide. Jean-Claude Biver revealed that only 30% of watch components are now produced by the group, but after 3-5 years, the proportion will be significantly increased to 75%. LVMH Moët Hennessy Louis Vuitton SA (LVMH. PA) has invested 20 million Swiss francs in a new watch component factory for Hublot Hublot. Construction is expected to begin in mid-2015.

Despite the aggressive expansion of production capacity, Jean-Claude Biver stated that there are no plans to integrate the manufacture of parts for all the watch brands of the group on a single platform because ‘each brand has its own unique process’ and must retain their respective autonomy, so ‘ This move has no benefit. ‘