In the wake of Richemont’s recent leadership reshuffle, the luxury watch and jewellery landscape continues to evolve at a breakneck pace. LVMH, not to be outdone, has announced its own series of high-profile appointments, further intensifying the competition between these two luxury powerhouses.
The latest moves by LVMH underscore the group’s commitment to strengthen its position in haute horlogerie. In a surprising turn of events, Ricardo Guadalupe is stepping down as CEO of Hublot after 12 years at the helm, transitioning to the role of honorary chairman effective September 1, 2024. Guadalupe’s tenure at Hublot spans an impressive 20 years, during which he played a crucial role in shaping the brand’s identity and success.
Julien Tornare, who recently took the helm at Tag Heuer, will lead Hublot as its new CEO. Tornare’s appointment is particularly noteworthy given his impressive track record at Zenith Watches, where he successfully revitalised the brand by breathing new life into classic designs like the Defy A3642 and the El Primero A385.
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Tornare’s six-month tenure at Tag Heuer was marked by ambitious plans for the brand. He emphasised Tag Heuer’s commitment to higher complications and finishes, aiming to upgrade the brand’s offerings without alienating its core client base. His strategy included introducing new complications aligned with Tag Heuer’s heritage, expanding into high watchmaking with more tourbillons and intricate mechanisms, and maintaining a range of watches catering to various budgets and tastes.
Stepping into Tornare’s shoes at Tag Heuer is Antoine Pin, Pin’s appointment marks his return to Tag Heuer after a decade. He had previously worked with the brand from 1994 to 2014, before serving as the general manager of Bulgari's watchmaking division. His extensive international experience, particularly in key markets such as Japan, Korea, China and Australia, positions him well to drive Tag Heuer’s global growth. Pin’s role in advancing the category—as seen in how he innovated with Bulgari’s Finissimo model—shows his ability to push boundaries in luxury watchmaking.
These appointments, announced by LVMH Watch Division CEO Frédéric Arnault, reflect a clear strategy to consolidate the group’s strength in the competitive luxury watch market. Arnault’s recent transition from Tag Heuer CEO to his current role overseeing the entire watch division adds another layer of intrigue to these moves.
The reshuffle extends beyond the watch brands, with Bulgari also seeing significant changes. Laura Burdese, previously Bulgari’s chief marketing officer, has been appointed to the newly created position of deputy CEO. Burdese, who joined Bulgari in 2020 to oversee global marketing and communication strategies, brings a wealth of experience from her 20-year tenure at Procter & Gamble and her role as president and CEO of Acqua di Parma from 2015 to 2020.
When viewed alongside Richemont’s recent changes, including the appointment of Louis Ferla as Cartier’s new CEO and Catherine Rénier taking the reins at Van Cleef & Arpels, a broader picture emerges. Both conglomerates are strategically positioning themselves for the future—and they are doing this by leveraging the experience of leaders who come with proven track records.
The backgrounds of these recruits are particularly telling. Ferla’s success at Vacheron Constantin, where he led the brand into the billionaire’s club of Swiss watchmaking, suggests Richemont’s intention to further strengthen Cartier’s already dominant position. Similarly, Rénier’s experience in the Asia-Pacific region for Van Cleef & Arpels, coupled with her leadership at Jaeger-LeCoultre, brings a unique blend of brand familiarity and fresh perspective.
These strategic moves have sparked speculation about the future relationship between Richemont and LVMH. While a full merger seems unlikely given the strong family control of both groups, the possibility of a more focused collaboration cannot be ruled out. Richemont’s increasing emphasis on its jewellery brands, coupled with LVMH’s strengthening of its watch division under Frédéric Arnault’s leadership, could potentially pave the way for a division of specialities between the conglomerates.
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It’s important to note that both groups continue to invest heavily in both watches and jewellery. Richemont’s watch brands, including IWC, Panerai and Jaeger-LeCoultre, remain significant players in the industry. Similarly, LVMH’s jewellery brands, particularly Bulgari and Tiffany & Co, are crucial to its luxury portfolio.
What these appointments do signal is a period of intense competition and innovation in the luxury watch and jewellery sector. As both business behemoths bring fresh leadership and perspectives to their key brands, we can expect to see new strategies, collections and perhaps even technological advancements in the coming years.
However, these leadership changes come at a challenging time for the luxury watch industry. Recent reports indicate significant struggles in the Swiss luxury watch market. According to a collaborative report by Morgan Stanley and WatchCharts, the secondary market for high-end Swiss watches has seen a continued decrease in prices.
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Reported by Forbes, the study reveals that luxury Swiss watches experienced a 2.1 per cent quarter-over-quarter price decline in the second quarter of 2024, marking the ninth consecutive quarter of price decreases since Q2 2022. The WatchCharts Overall Market Index recorded a yearly performance decrease of -9.4 per cent, with renowned brands like Rolex, Patek Philippe and Audemars Piguet experiencing price drops ranging from 7.1 per cent to 12.4 per cent.
This downturn reflects broader economic uncertainties and changing consumer preferences. The report notes a reduction in market speculation for Rolex watches and decreased market inventory, suggesting a shift in consumer behaviour. Additionally, recent sales updates from industry players like the Swatch Group and Richemont suggest ongoing challenges, particularly in key markets like China.
For luxury consumers and industry observers alike, these developments promise an exciting yet uncertain future. The competition between these two giants is likely to drive innovation and quality, but it will also test the resilience and adaptability of their storied brands in the face of economic headwinds. As the dust settles on these latest appointments, all eyes will be on how the new leaders navigate the challenges and opportunities that lie ahead in this dynamic and ever-evolving industry.
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