The Luxury group LVMH to launch Zenith & Fendi in India

11 october 2005

LVMH to launch Zenith, Fendi in India

Chennai: Swiss watchmaker LVMH Watch & Jewellery will introduce luxury brands Zenith and Fendi in India by the last quarter of this fiscal. Today in Sify Finance

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The launch, which would add to LVMH's portfolio of Tag Heuer and Christian Dior watches in India, was first announced more than a year ago. However, it eventually pushed back the launch date to consolidate the market for its existing brands. "It would never help if we hurry up things. We wanted to make a success of our existing brands before launching new ones," said Ravi Thakran, President, Asia-Pacific, LVMH.

While Zenith, a high-end mechanical watch, would be available for a minimum of Rs 2.5 lakh, the average price of Fendi, an Italian designer watch, will be around Rs 20,000.

The former would be sold through very few retailers and promoted more on the plank of functionality and less on emotional appeal, he said.

LVMH has 50 outlets (nine exclusive ones) across 18 cities in India. In three years, it plans to take this number to 100 (25 exclusive) in 23 cities, said Thakran.

Although it has a price range between Rs 26,000 and Rs 5.5 lakh, a bulk of its sales happens at prices between Rs 26,000 and Rs 1.25 lakh. It imports its products from its factory in Switzerland, paying duties amounting to around 60 per cent.

A gradual reduction in duties, along with an improvement in retail infrastructure, could help the high-end watch market take-off in the next few years, he said.

Article published by: Sify Finance (August 2005)