INTERVIEW: Future plans LVMH Zenith

It is almost 2010 and a lot of brands are looking back to 2009 as a ''crisis'' year and are also looking forward to 2010. 2010 could be a new year where the economy is getting better and new perspectives are born. TSWatches found an interesting interview with new Zenith CEO Jean-Frederic Dufour about the plans of Zenith in 2010.

MOSCOW, Dec 1 - Luxury Swiss watch brand Zenith is set to launch a line of watches at a fraction of its usual price to combat pressure on sales from the global economic slowdown, its Chief Executive told Reuters.The 144 year-old company -- owned by French luxury goods maker LVMH -- will sell the budget watches at just under 3,000 euros ($4,511) from 2010, its President and CEO Jean-Frederic Dufour said in an interview. "You can't lower the price of existing watches -- you come out with a lower product at a different price. That is what we are on the way to do," he told Reuters, when asked if the financial crisis had affected his business strategy. He said there would be no restrictions on production levels of the new models, whereas the higher end offerings are assembled in limited or even unique editions to increase their rarity and value. Zenith's most expensive watches can take up to a year to make and sell for as much as $500,000, but premium watch-makers have been hurt across the world as even billionaires look to cut back on pricey accessories. Swiss watch exports were down 25.5 percent in the 10 months to end October, according to Swiss Watch Industry data.
Dufour, who was poached by Zenith in May from rival Chopard, said he had been forced to write off 2009 but hoped for at least a slow recovery next year. "2009 ... we'd better forget it and talk about the future. It's a global feeling that the world economy has touched bottom -- there will be a recovery in 2010, slowly, but there will be a recovery," he said. Dufour was speaking at the launch of Zenith's first ever Russian concession, which is opening in central Moscow a short walk from the Red Square. "It was a very big and good opportunity for us -- we still believe in the market, we still believe in Russia ... Russian people are very watch-addicted people -- they are very precise," he said.

Dufour added that he expected to achieve single digit growth in Russia next year, but that there were no existing plans to open more outlets in Russia for the time being. He said Asia, and China specifically, was a stronger possibility. LVMH, the world's biggest luxury goods company, said in October its third quarter trading had been better across all divisions as the global economy picked up (Forexyard, 2010)

We, as TSWatches, are thinking it is a good way to be different then other brands. But we hope the magnificent El Primero perfection is still there. Zenith is always named because of their outstanding, high quality and good looking watches. We think people must see this history coming back in these new (lower priced) watches.

Written by: Tobias. S