Louis Vuitton 2008 Annual Report Download - page 45

LVMH010_2008_GB:Mise en page 1 24/03/09 11:13 Page 46
Two new awards
for TAG Heu er
After winning four prestigious
Geneva Watchmaking Grands Prix
(in 2002, 2004, 2005 and 2006),
TAG Heuer added a fifth honor to its
list of awards on November 13, 2008:
the Grand Carrera Calibre 36 RS
Caliper chronograph won the Jury Prize
in the Sports category.
TAG Heuer also won a Silmo Golden
Award in Paris, the most coveted prize
in the optical industry for its C-Flex
collection of avant-garde eyewear.
In 2008, after four years of strong
growth and a remarkable turna-
round in its profitability, the
Watches and Jewelry business group
consolidated the positions it had achie-
ved. The year was characterized by a
sluggish American market and by a de-
cline in demand in Japan.
All the brands
increased their revenue in Europe and
Asia and recorded significant growth in
the Middle East and Russia, despite a
clear slowdown in the last quarter.
The
business group maintained its overall
market share. By taking appropriate
measures in the second half of the year,
it has made effective preparations for
2009, which will be marked by difficult
economic conditions and retail overs-
tocking by a number of competing
brands.
TAG Heu er:
reco gn ized
w at ch m aker
an d d iversificat io n
After the highly targeted 2007 launch,
2008 was for TAG Heuer the year when
the Grand Carrera collections were rol-
led out worldwide.
Affected by the US
economy, the brand continued to grow
in many markets. By strengthening its
offer of watches and automatic chro-
nographs, and by maintaining an extre -
mely high-quality entry-level to its
offer, represented particularly by the
F1 line,
TAG Heuer again increased its
global market share in the retail price
segment of 400 to 4,000 euros.
2008 was also the year of the highly
reported launch of Meridiist, the first
line of cell phones directly inspired by
the leading-edge materials and tech-
nologies controlled by TAG Heuer and
designed in collaboration with Mode-
labs. This diversification, positioned at
the high-end of a high-growth market,
was sold very selectively in the network
of TAG Heuer boutiques and only a few
points of sale within watch stores and
department stores.
In 2008, TAG Heuer won its fifth
Geneva Watchmaking Grand Prix. This
high honor was awarded to the Grand
Carrera Calibre 36 RS Caliper chrono-
graph, the flagship model of the Grand
Carrera line, the crowning point of its
design and concept. This model, with a
43 mm case, is covered with black tita-
nium carbide and offers an unprece-
dented direct reading accurate to a
tenth of a second. It is equipped with an
El Primero movement designed by
Manufacture Zenith.
TAG Heuer also earned the Silmo d’Or
in Paris for its collection of C-Flex eye-
wear developed in partnership with
Logo. This diversification into eyewear
and sun glasses has expanded strongly
in the last three years.
In October 2008,TAG Heuer joined the
very selective circle of “la Fondation de
la Haute Horlogerie”, an association
that works to promote the culture and
skills of watchmaking, transmit its
values of authenticity and promulgate
its ethics.
Hu b lo t , t h e risin g
st ar o f Sw iss
w at ch m akin g
The acquisition of the watchmaker
Hublot, announced in April 2008, gives
LVMH a new high-end brand with
strong growth potential. Founded in
1980, Hublot was innovative right from
the start by creating the first watch in
watchmaking history with a band made
of natural rubber. Hublot Genève has a
management team with acknowledged
expertise and exceptional watchma-
king skills. The brand is known for its
concept of combining precious and
high-tech materials and for its iconic
Big Bang model. It has achieved steady
growth and benefits from a highly se-
lective distribution network.
Since its acquisition by LVMH, Hublot
has maintained strong momentum and
continued its industrial integration plan
with the construction of its manufac-
turing plant in Nyon.The brand opened
its first boutiques as part of a highly
selective strategy in Geneva, Shanghai
and Kuala Lumpur and successfully
relaunched its classic line along with
several limited series of Big Bang chro-
nographs, which rapidly sold out, as well
as a Baby Bang collection of women's
watches. Its revenue and profitability
have increased in line with projections,
despite the deterioration in economic
conditions.
The Hublot operations were consolida-
ted in LVMH’s results as of May 1, 2008.
PASSIONATE ABOUT CREATIVITY 43