![]() Kern said Breitling, like many other top brands, is reaping rewards from the current revival in Swiss mechanical watches that took hold during the pandemic as cash-flush consumers stuck at home began lusting over pricey timepieces on Instagram and other social media sites. It now owns about 23 per cent, with company managers and executives, including Kern, owning about 10 per cent and CVC the remaining two-thirds. In 2021, Swiss investor Partners Group bought a minority stake in Breitling. The value of the business has jumped well above $3.1bn from about $780m at the time of the takeover, Bloomberg reported last year. Sales are up another 25 per cent by value so far this year, according to people familiar with the matter. Breitling posted sales of about 700 million Swiss francs in 2021 - an industry beating increase of more than 40 per cent, according to Morgan Stanley and LuxeConsult. ![]() Once known for overly polished and out-sized pilot watches, Breitling refocused on modern interpretations of storied models including its Navitimer chronograph, its 1980s-inspired Chronomat and recent colorful versions of the Superocean dive watch. Luxury conglomerate Kering went the other way earlier this year by selling its two watch brands - Girard Perregaux and Ulysse Nardin - after seeing no natural fit for them in its roster of fashion brands.Īt Breitling, Kern streamlined the catalog and distribution channels with about 200 branded boutiques, including 40 per cent that are company owned. Among them are the likes of Oris or niche manufacturers like H. These days, there aren’t many Swiss watchmakers that remain independent. Many other brands, from Vacheron Constantin to Tag Heuer to Omega, are owned by luxury conglomerates.Īt the time of its takeover, Breitling was owned by the Schneider family which, in 1979, bought the brand that had been founded by Leon Breitling in Switzerland’s Jura mountains in 1884. Market leader Rolex is privately held and protected by a complex trust structure, as are family-controlled Audemars Piguet, the maker of the popular Royal Oak timepiece, and Patek Philippe. #Audemars piguet royal oak chronograph driverAt Breitling, he’s overhauled the business by opening stylish boutiques around the world, sharpening the portfolio and hiring brand ambassadors including Adam Driver and Charlize Theron.įor now, the biggest brands in the industry are out of reach, insulated in ownership structures that make takeovers all but impossible. One is focused on maximising returns and reducing costs, while the other relies on highly trained workers, big marketing budgets and expensive investments for in-house developed movements to build brand cachet.īut Kern says the speed at which nimble owners like CVC can execute change and the surge in demand for Swiss watches make this an industry ripe for consolidation. On the surface, private equity and Swiss watchmaking aren’t an obvious pairing. ![]() “Whatever we would consider, you know, you plug it in and you have huge leverage.” “We have a war machine, right?” Kern, Breitling’s chief executive officer, said in an interview, referring to CVC. ![]()
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