Hermès may acquire Swiss Haute Horlogerie workshops

Hermès, the French luxury goods group, could soon be taking a bold step into the world of watchmaking. According to information from BFM Business, it is the favorite to acquire the watchmaking division of the Sandoz family foundation. What a way to shake up the watchmaking world!

This consortium of workshops currently supplies prestigious brands such as Patek Philippe, Richard Mille and Tag Heuer. The sale of this division, which includes renowned companies such as Vaucher, Atokalpa and Elwin, was announced last February.

A bold strategy to strengthen market presence

The acquisition of Hermès could shake up the watchmaking landscape. Although LVMH has also expressed an interest in the deal. But sources close to the matter indicate that Hermès is perceived as a more reassuring candidate. Since 2006, Hermès has already owned 25% of Vaucher, one of the workshops in this watchmaking division. This reinforces its legitimacy in this sector.

This operation could mark a turning point in Hermès’ strategy to increase its influence in the watchmaking market. Indeed, the group has long been considered an outsider in this field. It only joined the market in the late 1970s. Today, however, the brand is enjoying impressive growth, with an increase of 23.6% in the first quarter of 2023, reaching 166 million euros.

A tense market

However, the acquisition could take place against a delicate backdrop. The Swiss watch industry, though prosperous, is going through a difficult period. Swiss watch exports to China have fallen by 21.1% since January, while those to Hong Kong have dropped by 18.6%. This worrying trend has already prompted some companies to consider short-time working or redundancies, according to the Employers’ Convention of the Swiss Watch Industry.

Despite these challenges, the sector remains solid overall. In 2023, Swiss watch exports reached 26.7 billion francs, confirming the enduring appeal of this market. If Hermès succeeds in finalizing this acquisition, it could not only solidify its position but also redefine its role in a constantly evolving sector. This bold move could well herald a new era for the luxury house, reinforcing its commitment to innovation and craftsmanship excellence.

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