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LVMH to target India’s luxury watch sector

by Simon Lazarus
13 April, 2013
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Simon is a published journalist in the UK, US and Europe on a range of topics and currently has a number of clients in different sectors for whom he produces content on a weekly basis. Topics include travel, property, food, lifestyle, finance, hi-tech and business.

LVMH

Louis Vuitton Moet Hennessy (LMVH) is on a timely mission to expand their global reach across the Asian market according to recent reports. In fact their ambitions are focused on claiming a 20% stake of the timepiece sector across India which is becoming a key market for watch sales.

The French corporation intends to expand aggressively and has in its stable a number of top quality watch brands including TAG Heuer, Zenith, Hublot and Bulgari.

However, their main aim is tapping into the Indian watch and jewellery industries whilst at the same time attempting to cash in on LVMH’s portfolio of increasingly popular brands among the wealthy and high profile clientele. Their bold plan aims to put them at the top echelons of the Indian luxury watch industry by 2023.

Bold indeed, but the changing faces of time has shown these emerging markets are now awash with watch enthusiasts with disposable income for buying a stunning piece of arm candy.

TAG Heuer

TAG Heuer

In addition to this, LMVH intends to open up a host of boutique stores across India as a starting point. They are already prominently known with several shops located in Delhi, Mumbai and Bangalore.

But who are the contenders when it comes to leading brands in the country? It seems the likes of TAG Heuer and Dior rank highly whilst Swiss companies such as OMEGA and Rado are also up there on the wanted list.

A taste for all things Swiss has not gone unrecognised as Rolex is another company that many seem to favour.

According to the Financial Chronicle, Franck Dardenne, country manager at LVMH Watch and Jewellery India declared; “We want to aggressively tap the growing popularity of our brand among the rich and famous, as well as the aspiring middle class with growing disposable incomes. We are opening two new boutiques in Chennai next month.”

Hublot

Hublot

 

So how does their revenue measure up? Just last year, LMVH recorded total sales of nearly US$3 billion with plenty of new stores about to be opened in 2013.

It is believed that exclusive boutique stores are becoming more and more crucial in a bid to increase profits. This is due to consumers wanting a real product not to mention experiencing genuine and incomparable customer service at first hand.

So far Louis Vuitton Moet Hennessy offers more than an impressive 140 different types of models across the whole of the Indian watch sector.

“The luxury watch market in India is pegged at over 40,000 units annually with a billing of over 1,000 rupees crore (£129.5 million). In 2014-15, we expect the Indian market to grow 15-20 per cent.”  Dardenne added.

Meanwhile, the luxury market has soared in India by as much as 10% in the last twelve months. Yet LMVH have grown more than twice the market value!

Bulgari

Bulgari

 

The result of this surge is again down to disposable income and the rise of the middle classes across the continent.

The LMVH India country manager added “It is interesting to note that one out of five luxury watches sold in India is from the TAG Heuer brand.” This may just be the ultimate tag team partnership.

Simon Lazarus | Website

Simon is a published journalist in the UK, US and Europe on a range of topics and currently has a number of clients in different sectors for whom he produces content on a weekly basis. Topics include travel, property, food, lifestyle, finance, hi-tech and business.

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