Close look LVMH watch jewelry rectification

The head office of LVMH, the number one luxury group in the world, usually gives more autonomy to many brands under its category, but more intervention in specific management. However, the recent series of corrections to watch and jewelery, a relatively weak sector, showed the determination of the Group to step in with strong force. According to the Financial Times, LVMH's jewelry and watches will be split into two separate divisions starting from March 2014: Antonio Belloni, the group's managing director, will oversee the jewelery division under the brands Bulgari, French, Chaumet and Fred, which were acquired in 2011 and De Beers jewelery, a joint venture with De Beers. Jean-Claude Biver, current CEO of Hublot, will oversee the watch division with brands such as TAG Heuer, Zenith and Hublot. Since its acquisition of Bulgari for € 3.7 billion in 2011, the LVMH watch and jewelery division has seen a dramatic increase in revenue, accounting for about 10% of LVMH's revenue last year but contributing only 6% of operating profit to the group - analysts believe the ideal Operating profit contribution should be 15%. Since its incorporation in LVMH, Bulgari has leveraged its synergies in commercial real estate, advertising and marketing to raise its operating profit margin from 7% in 2007 to 12% now and 20% in the future. However, analysts pointed out that the development of Bulgari is still unsatisfactory. The retail strategy needs major adjustments. Its product line is too thin, the price is too high, the store area is generally too large, the flat effect is not ideal, advertising strategy and brand tradition are not too good Match. The newly refurbished Bulgari flagship store on Fifth Avenue in New York has clearly separated the sales of watches and jewelery. According to insiders, the store has completed its full-year business forecast ahead of schedule by mid-November 2013. Watch, LVMH's brand structure is also relatively simple, but also facing the Swiss watch giant Swatch Group continued to shrink the pressure on third-party parts supply. Self-built watch movement factory will bring enormous pressure on the cost of its management is also very high complexity, but this trend is inevitable. Hublot currently only 35% of the movement rely on external suppliers. LVMH will encourage its watch and jewelery brands to build independent single-brand boutiques to better demonstrate the full range of products and brand images. LVMH Group's new jewelery division president, group core Antonio Belloni He is 59 years old (pictured left), known for his superb organizational skills. His career started in the fast-moving goods industry - Procter & Gamble in the United States and chairman of Procter & Gamble Europe since 1999. In 2001, he moved to LVMH Group to become a group Boss boss Bernard Arnault (pictured right) right arm, in the perfume, cosmetics and specialized retail departments have established great achievements Albert. It is said that the Italian is not normally wearing the brand under the LVMH group, the suit is the rival Kering group's Italian brand Brioni, the watch is Rolex. Jean-Claude Biver, LVMH Group's new watch division, clock and watch industry Wizards He is 64, was born in Luxembourg and grew up in Switzerland, operating the watch industry for 40 years. From Audemars Piguet debut, he successfully revitalized Blancpain veteran, hired by the Swatch Group as a board member, responsible for restructuring Omega, once again great success. He joined Hublot in 2004 and quickly increased his performance, which was acquired by LVMH in 2008. He also owns his own cheese brand, but only for his friends and favorite restaurants.