Women's and Gen Z's demand heats up the global luxury watch race

LVMH Group, the leading luxury goods business, continues to strive to gain market share in the global luxury watch business and expects global luxury watch sales to reach around $30 billion this year and is expected to increase to over $37 billion by 2032.

The global luxury watch race is heating up with new, expensive and unique models. (Source: CNBC)

LVMH, the leading luxury goods company, continues to push for market share in the watch business. LVMH’s luxury watches and jewelry division recorded $11.8 billion in revenue in 2023 and is expected to sell around $30 billion worth of luxury watches worldwide this year, rising to over $37 billion by 2032.

With 10 watch brands, including TAG Heuer, Hublot and Zenith, along with well-known fashion and jewelry brands such as Louis Vuitton, Bulgari and Dior, LVMH is creating diversity and appeal for customers. Analysts say LVMH has the ability to continue acquiring other attractive brands if the opportunity arises.

According to market research firm IMARC Group, global luxury watch sales are expected to reach around $30 billion this year and are expected to rise to over $37 billion by 2032. Rising global wealth and growing interest among Generation Z and millennials in high-end mechanical watches are seen as factors driving growth.

Experts say the wealthy are less affected by rising interest rates and economic uncertainty, so there are more brands catering to “high-end spenders” who demand the highest quality and craftsmanship.

"The luxury segment is really one of our main growth drivers," said Jean-Christophe Babin, CEO of LVMH, which oversees Bulgari. "More than ever, wealthy people are looking to invest in brands that are trustworthy and sustainable over time."

LVMH is targeting the fastest-growing segment of luxury women’s watches. Although they only account for about a third of total sales, female interest in luxury mechanical watches has skyrocketed thanks to a growing presence on social media and a variety of designs specifically for women.

The number of wealthy women globally, both self-made and those who have inherited wealth, is growing, which is also contributing to the growth in luxury watch sales.

Source: https://baoquocte.vn/nhu-cau-cua-phu-nu-va-gen-z-khien-cuoc-dua-dong-ho-xa-xi-toan-cau-nong-len-259912.html