Launching a new watch subsidiary and introducing several more expensive models, luxury behemoth LVMH is trying to gain market share in the luxury watch industry.

The luxury conglomerate LVMH is making moves to gain market share in the luxury watch industry, including the establishment of a new watch subsidiary and the introduction of several more costly models.

Global sales of high-end timepieces are projected to reach approximately $30 billion this year, as per the market research firm IMARC Group. With the rise in global affluence and the growing interest of Millennials and Generation Z in upscale mechanical watches, it is anticipated that they will reach over $37 billion by 2032.

The jewelry and watch segment of LVMH reported $11.8 billion in sales in 2023, a 7% increase in organic growth. In addition to fashion and jewelry labels like Louis Vuitton, Bulgari, and Dior that also produce timepieces, the luxury conglomerate currently carries ten watch brands, including TAG Heuer, Hublot, and Zenith.

The business elected the 29-year-old son of LVMH Chairman and CEO Bernard Arnault, Frederic Arnault, CEO of LVMH Watches, which is home to the TAG Heuer, Hublot, and Zenith brands, last month. Analysts predict that the combined sales of those three brands were close to $2 billion in 2018. It is anticipated that Frederic Arnault, who just introduced a plethora of hugely successful new models at TAG Heuer, will apply his emphasis on innovation, state-of-the-art materials, and imaginative designs to the broader brand group. According to analysts, LVMH might potentially keep acquiring appealing brands as they become available.