Louis Vuitton 2009 Annual Report Download - page 47

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Fred posted a very good year in France.
The growth achieved in this market
is due to the success of the recent re-issue
of its legendary Force 10 line, inspired
by the world of sailing and enhanced with
jewelry versions in 2009. Fred also launched
a Gladiateur chronograph that also includes
jeweled versions and, continuing a well-
established tradition of collaboration
with artists, re-issued its Fredy’s
pendants created thirty years ago, and
redesigned today by Jean-Paul Goude.
De Beers, with a heavy exposure
in the United States and in markets
where its products are distributed
through franchises, faced a difficult
year. The company performed better in
the economic climate within its own network of bou-
tiques. The option taken in 2009 to give priority to developing its
engagement rings and its classic diamond collections brought
results. The brand maintained its innovative momentum, illustrated
in the launch of the Lotus line.
TRENDS FOR THE OTHER BRANDS
OF THE BUSINESS GROUP
Chaumet’s revenue was impacted by retailer’s inven-
tory reductions, but remained solid within its own
network of boutiques.
In jewelry, the brand benefited from the confirmed
success of its Liens and Attrape-Moi si tu
m’aimes lines. The company boldly expanded
the lines with the launch of a new Lune de Miel
collection which melds diamonds and colored
stones. In watches, the jewelry watches from
Chaumet and the Dandy Arty model introduced
during the year also performed well.
Dior Watches continued to transition to high-end
products and strengthen its positioning by
combining a Swiss watchmaking tradition, a
“couture” spirit, and strong creativity.
The Christal line was enhanced with several
automatic versions and the creation of the
Dior Christal Mystérieuse watch. A small,
jeweled version, the Mini D, was added
to the D de Dior collection. Development
of the Chiffre Rouge men’s line continued
with the introduction of two diving watches,
guaranteed waterproof up to 300 meters.
Outlook
After the impact on revenue from the inventory reductions made by distributors and
multi-brand retailers in 2009, the year 2010 should bring progressive recovery, a
prospect reinforced by the positive signals given by consumption in recent months.
As the LVMH companies have strictly controlled the level of their inventories with
retailers, they are well positioned to take advantage of improved market conditions.
The global economic context is still uncertain, however, so they will continue to rely
primarily on the expansion of their iconic product lines and maintain rigorous control
of costs and inventories. Investments will remain highly targeted. They will be primarily
devoted to the development of industrial watchmaking capacities for the production
of movements and to the opening of a few monobrand boutiques in strategic locations.
For retail, ongoing improvement in the network of existing boutiques will remain a
priority.
One of the highlights of 2010 will be the 150th anniversary of TAG Heuer. To cele-
brate the occasion, the world leader in luxury sports watches and chronographs is
re-issuing one of its most iconic designs, the Silverstone chronograph (named after
the famous race track) initially launched in 1974. The brand is also releasing a new
movement, the TAG Heuer Calibre 1887 chronograph manufactured in house. One
of Hublot‘s top priorities is the industrial manufacture of its UNICO movement deve-
loped and fabricated by its Manufacturing plant and the opening of some strategic
boutiques. Zenith will continue to strengthen its product lines and present a new,
highly anticipated offer of chronographs equipped with the El Primero movement
and displaying a tenth of a second.