ZURICH (Reuters) - Luxury goods group Richemont (CFR.S) has launched a new watch brand, Baume, offering trendy time pieces priced in the hundreds rather than the thousands of dollars to lure young people away from their smartphones for reading the time.
Swiss watchmakers have seen sales improve recently, after a prolonged downturn, but are struggling to reach young people who wear no watch at all or a connected Apple (AAPL.O) Watch and want online services luxury watchmakers have been slow to embrace.
The new Baume brand will be sold exclusively online with prices starting at $560, a clear indication it is aimed at younger customers. It will also try to appeal to their “green” conscience by using no animal-based or precious materials and only paper and cardboard for packaging.
Richemont’s watch business consists of high-end brands, such as IWC or Jaeger-LeCoultre, that cost thousands or even tens of thousands of dollars and are still mostly sold in traditional brick-and-mortar stores.
Luxury watch brands have only belatedly embraced digital marketing and distribution and are still seeking answers to the emergence of smartwatches such as Apple’s Apple Watch and the younger generation’s dwindling interest in traditional watches.
Source : https://uk.reuters.com/article/us-richemont-baume/swiss-watchmaker-richemont-launches-lower-priced-brand-to-lure-millennials-idUKKCN1IH2C2