LVMH to expand product portfolio, plans launches

LVMH Watch & Jewellery, an arm of the LVMH group, will expand its brand portfolio in the country. The company, in addition to its existing brands, Tag Heuer and Dior, will introduce two watch brands, Zenith and Fendi next year.

It would also invest over Rs 25 crore next year to boost the Tag Heuer brand in the country. We will increase our capital expenditure by 200 per cent or Rs 10 crore and will hike our marketing spend by 50 per cent to over Rs 15 crore next year," said Ravi Thakran, president (Asia Pacific), LVMH Watch & Jewellery.

At present, Tag Heuer retails through 75 outlets, including seven exclusive brand outlets (EBO), which will be increased to 25 by the end of 2007. It has tied up with Dubai-based Emaar group for the real estate for the boutiques.

Thakran said the tie-up could be further extended for Zenith, the higher priced of the two brands. "Zenith will follow the strategy of exclusive distribution since it will be the most upmarket brand from the LVMH watch and jewellery portfolio, while Fendi will compete in the fashion driven segment as a leading-edge fashion brand," he said.

For Zenith, the company is likely to set up five to eight stores while for Fendi, the company would also tap the multi-brand outlets (MBO) route. For Fendi, which would have a wider consumer profile, LVMH intends to set up to 35 stores in the first year in addition to the MBO's.

Thakran said that while currently India did not feature among the top 20 markets for Tag globally, the brand has been growing at over 40 per cent for the last three years and was likely to break into the top 10 markets in the next couple of years.

India, along with China, Japan and the US is a priority market for the group and Thakran said the company intended to become the biggest brand in the imported Swiss watches category in India. "In the first six months this year, we have seen 60 per cent growth and we expect it to increase with the buying season just beginning," said Thakran, adding the company now intended to sell 10,000 pieces in India.

Tag Heuer has recently launched a Shah Rukh Khan Limited Edition watch, the Monaco Sixty Nine Chronograph which Thakran said would be the only limited edition piece they would be doing this year. The watch offers both mechanical and digital displays through a pivoting system which Tag Heuer has patented. "There are 150 units (priced at Rs 3.05 lakh each) of which we expect to sell 100 units in India over the next three months," he said. The piece, which has design inputs from Khan will also feature in his upcoming release Don.

On in-film placement for the brand, Thakran said they would consider it more actively in the future, but only through Khan.

The brand has actively positioned itself in the 'Sports Inspired' category and has associated with sports such as polo and golf to boost this association. Last year it had launched a special range of professional golf watches to cater to a small but growing segment. To tap the women's market, Tag had signed on actor Sushmita Sen a brand ambassador in India. Apart from Tag, LVMH also retails Dior in India which has been positioned as an 'edgy fashion brand.'