Jean-Claude Biver, President of the Watch Division of LVMH, the French luxury goods maker which owns Louis Vuitton, Zenith, Hublot and Tag Heuer among other brands, has told German daily Handelsblatt that the company will launch a rival product to the Apple Watch that will cost 1,400 Euros (approx. $1,526), Reuters is reporting.
“LVMH welcomed the arrival of the Apple Watch because the marketing power of the Apple brand will help create a new class of clients enthusiastic about luxury watches, Biver told the paper.
He said LVMH’s watch division was focused on winning market share, rather than being driven by specific sales and profit targets, and will seek to “massively” build out its Tag Heuer and Hublot brands in China”.
Biver also said that he is shifting Tag Heuer’s strategy away from taking the brand upmarket into the price category of 6,500 Euros, and will instead “focus on producing watches costing between 1,500 Euros to 4,500 Euros”. Each of the company’s three watch brands should outperform the Swiss export market in its segment by at least 1% this year, he added.
Biver concluded by saying that he hopes Hublot, the most expensive of all watch brands, will see an 8% outperformance in Swiss export market this year.