New boss at Zenith says evolution is a must in Swiss watches
Zenith, LVMH’s 152-year old Swiss watch brand, has a new CEO: Julien Tornare. And he has big plans for the brand and the industry. He’s in a good position to know what he’s talking about, having spent 17 years at Richemont’s Vacheron Constantin. And those plans can be best summed up by one word: evolution. That means holding on to the history and prestige of Swiss watches, while advancing the products themselves to compete against smart watches offered by companies like Apple.
LVMH’s share price has appreciated by 27% year to date
SOURCE: Yahoo Finance
Tornare says: “If we don’t want to become a museum industry, we need to evolve. Zenith is lacking brand awareness, is perceived as a bit dusty, a bit old-fashioned.”
His answer is not to create a smart watch, as other brands like TAG Heuer are doing, but to create a new mechanical watch that can be customized – until now, something that was frowned upon in the industry. Tornare doesn’t see that historical animosity as much of a problem:
“It’s just the beginning and very complicated to manage logistically. But it’s like when people said they would never sell on Ecommerce. You can’t say you’re not going to do it. If we claim we’re innovative, it must not just be the product, but also the culture. We see good signs and more optimism on all levels. And the noise around our brand is positive.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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