Chanel, Hermès, and LVMH Pivot to Hard Luxury with Strategic Emphasis on Watches

In a significant strategic shift, luxury brands Chanel, Hermès, and LVMH Moët Hennessy Louis Vuitton are placing renewed emphasis on their watchmaking divisions. This move is highlighted by their recent joining of the board of the Watches and Wonders Foundation Geneva. Their integration into this organization underscores a broader trend among luxury brands known primarily for 'soft luxury' goods, as they venture into the more resilient 'hard luxury' sector.

Traditionally celebrated for their haute couture, leather goods, and accessories, these brands are now pivoting towards luxury watches—a segment known for its durability in economic downturns. The luxury watch market, unlike fashion, benefits from the perceived enduring value of its products, making them a safer harbor during financial storms.

This strategic pivot is evident from their activities at Watches and Wonders Geneva 2024, an event that has become an important one on the calendar for the luxury watchmaking industry. Since its inception in 2022, Chanel, Hermès, and LVMH have been prominent exhibitors, but their recent decision to join the board is a clear signal of their commitment to this segment.

Watches and Wonders itself has expanded its influence, hosting events in key cities like Shanghai and opening its doors to the public, thus broadening its impact and reach. The foundation's mission, supported by heavyweights like Rolex, Richemont, and Patek Philippe, is to promote and support the watchmaking industry globally, which Chanel, Hermès, and LVMH are now a significant part of.

The upcoming Watches and Wonders event in Geneva, set for next April 1 to 7, will display the evolving focus in luxury, featuring new innovations and collaborations in watchmaking. This event will highlight how these traditional luxury brands are adapting to new market trends.