Luxury Brand LVMH Intervention In Jewelry Watch

The headquarters of the world's top luxury group, < a href= "http://sjfzxm.com/news/index_f.asp" > LVMH < /a > P, usually gives greater autonomy to its many brands, but it interfered with the specific operation and management.

Recently, however, a series of improvements to the relatively weak sectors of watches and jewellery have shown the determination of the group to intervene forcefully.

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< p > from March 2014 onwards, LVMH's jewelry and clocks will be split into two separate departments: < /p >

AntonioBelloni, the executive director of group P, will take charge of the a href= "http://sjfzxm.com/news/index_f.asp" jewelry "/a" sector. Its brands include the Italy brand Bulgari (Bvlgari) acquired in 2011, the French brand Chaumet, Fred and the joint venture's DeBeers brand jewelry.

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Jean-ClaudeBiver, the current CEO of < p > Hublot (Yu Bao table), will be the clocks and watches department, and its brands include TAGHeuer, Zenith and Hublot.

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< p > since the acquisition of Bulgari with 3 billion 700 million euros in 2011, the proportion of LVMH watches and jewellery departments has surged, accounting for about 10% of the total revenue of LVMH group last year, but only contributed 6% of the group's operating profit. Analysts believe that the ideal proportion of operating profit should be 15%.

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Since P Bulgari has been merged into LVMH, it has successfully increased its operating profit margin from 7% in 2007 to 12% now, and has a future target of 20%.

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< p > but analysts pointed out that the development of Bulgari is still not satisfactory. The retail strategy needs to be greatly adjusted. Its product line is thin, the price is too high, the store area is generally too large, the flat effect is not very good, and the advertising strategy is not very compatible with the brand tradition.

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< p > the newly renovated Bulgari flagship store in New York Fifth Avenue has clearly divided the sales space of clocks and jewellery. According to insiders, by the middle of 11 2013, the store had already completed its annual business targets ahead of schedule.

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< p > clocks and watches, LVMH's brand composition is also relatively simple, and is facing the pressure of the Swiss watch giant Swatch group continuously shrinking the third part parts supply.

Self built clock and watch production plant will bring huge pressure to the cost, and the complexity of its management is also very high, but this trend is inevitable.

Hublot currently relies on external suppliers for only 35% of its movement.

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< p > LVMH will encourage its watches and jewellery brands to build independent single brand stores to better display the entire range of merchandise and brand image.

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< p > about LVMH group new jewelry department president, group core person AntonioBelloni: < /p >

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P, 59, is known for his strong organizational skills. His career began in the fast selling industry, the Procter & Gamble group of America, and became the chairman of P & G Europe in 1999. He turned to LVMH group in 2001 and became the right arm of the group leader, BernardArnault.

It is said that the Italian usually wears not the brand of LVMH group, but the suit is the Italy brand Brioni of rival group Kering, and the watch is Rolex.

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< p > on LVMH group's new watch Department president, watch industry wizards < a href= "http://sjfzxm.com/news/index_f.asp" > Jean-ClaudeBiver < /a >: < /p >

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< p > he is 64 years old and was born in Luxemburg, Switzerland, and has been immersed in the clock industry for 40 years.

From AudemarsPiguet debut, he has successfully revitalized the old Blancpain, was hired by Swatch group as a member of the board of directors, responsible for restructuring Omega, once again been a great success.

He joined the Hublot in 2004, rapidly improving his performance, and was bought by LVMH in 2008.

He also owns his own cheese brand, but only for his friends and favorite restaurants.

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