Dior: Can A Couture Giant Sell $8,500 Watches to Men?

Whereas Rihanna, Zendaya and Jennifer Lopez had been making the noise on the couture exhibits in Paris final week, at its Avenue Montaigne retailer Dior’s luxurious watch division quietly unveiled a group of high-end Swiss-made mechanical watches. The model — whose gross sales of classes like trend, fragrance, jewelry and homeware have boomed lately — hopes it may now inject some much-needed zip into its watch division.

The model has opted to retool and revive Chiffre Rouge, a discontinued line initially conceived in 2004 by former Dior Homme inventive director Hedi Slimane. Dior hopes that the high-end, unisex mannequin will catapult it into the luxurious watchmaking massive leagues, the place fellow luxurious trend homes like Hermès, Chanel and LVMH stablemate Louis Vuitton have recorded vital revenues lately.

Chiffre Rouge, an uneven design named after the purple 8 on the watch’s date wheel, was final seen in 2015 when Dior switched its focus to ladies’s watches. However whereas creations such because the Grand Bal and La D de Dior (designed by Dior Joaillerie’s celebrated creative director Victoire de Castellane) have been commercially and critically profitable (a model of the Grand Bal gained a prestigious GPHG award final 12 months), the home has lagged behind the competitors.

LVMH doesn’t break down revenues by model or product class, however in accordance with Morgan Stanley’s most up-to-date estimates, Dior’s watchmaking division doubtless recorded revenues of 65m Swiss francs ($75 million) in 2022.

The chance is unquestionably a lot larger: Christian Dior Couture wields the model consciousness and world retailer community of a €9 billion enterprise, in accordance with estimates. That’s to not point out the advertising and marketing enhance from splashy campaigns by its sister firm in magnificence, Parfums Christian Dior, whose “Sauvage” perfume is the world’s best-selling scent.

In the meantime, Swiss watch front-runner Rolex has seen gross sales surge to an estimated 9.3 billion Swiss francs, whereas Hermès — the most important participant amongst non-specialist luxurious manufacturers — reported watch revenues of €519 million in its final full-year outcomes, fuelled by new designs such because the H08 sports activities watch.

Dior’s Jewelry and Timepieces Enterprise Unit Director Lan Cittadini Cesi instructed the Enterprise of Trend that it was time to increase. “A number of years in the past, Dior took the choice to give attention to its female, high-end providing, however we felt it was time to reinvest in Chiffre Rouge to succeed in out to males as properly,” she mentioned. The brand new assortment will embrace fashions with 41mm or 38mm circumstances, with no signal of the favored pre-2015 36mm unisex measurement.

As the luxurious market cools following a post-pandemic surge, many manufacturers are ramping up their give attention to top-end designs to draw the wealthiest clientele and offset falling volumes at cheaper price factors.

Chiffre Rouge isn’t any exception: The references set for launch between now and later this summer season will begin at €7,90 ($8,500) for the 38mm Black Ultramatte computerized with a third-party Swiss mechanical motion, rising to €170,000 for the top-end limited-edition Chiffre Rouge Tourbillon Rainbow, which has a bezel set with treasured stones in graduated colors and which is powered by a bespoke calibre created by La Fabrique du Temps, Louis Vuitton’s specialist high-end Swiss watchmaking facility. One of many final Chiffre Rouge fashions launched in 2015 was the Chiffre Rouge C05 GMT, which featured an upgraded motion with a second time zone operate, and price €6,200.

Cesi mentioned that bringing again the Chiffre Rouge slot in with the home’s technique. “Dior is a worldwide luxurious home that caters for each men and women and it appeared logical to supply our male prospects the prospect to finish their silhouette with a watch,” she mentioned. “Chiffre Rouge will even enchantment to ladies in search of watches with a masculine, casual-chic look.”

One analyst mentioned the Chiffre Rouge would give Dior’s watchmaking enterprise a focus and stimulate progress. “It’s a good suggestion to revive an icon that when loved success,” mentioned Oliver Müller, founding father of the Swiss luxurious consultancy LuxeConsult and a co-author of Morgan Stanley’s annual watch report. “Dior wants an iconic product to get extra visibility within the watch world and the Chiffre Rouge is its equal to the J12 at Chanel.” In accordance with Morgan Stanley’s estimates, in 2022 Chanel’s watch enterprise generated revenues of 275 million Swiss francs.

The addition of a “flying tourbillon” (a technical, spinning anti-gravitational machine that seems to drift in a window by the watch’s dial) to the Chiffre Rouge assortment hints at Dior’s lofty watchmaking ambitions. “The tourbillon is among the benchmark problems within the watchmaking world,” mentioned Cesi. “It appeared applicable to start the story with this complication.” There’s additionally a chronograph mannequin powered by the properly regarded El Primero motion, offered by Dior’s LVMH sister model Zenith.

Müller noticed Dior as following a well-trodden path. “We’ve seen the identical factor at Hermès, Louis Vuitton and others; that manufacturers begin a enterprise unit producing watches as equipment to create site visitors of their boutiques, after which increase the positioning of the product to mirror the model,” he mentioned.

Cesi declined to verify Dior’s focused volumes, however mentioned that with its purple detailing and signature cannage motif, Chiffre Rouge would “pay tribute to the creativity and modernity of the Home of Dior, whereas respecting the traditions of Swiss watchmaking,” and that it will “proceed to convey these robust values within the years to come back.”

Disclosure: LVMH is a part of a gaggle of buyers who, collectively, maintain a minority curiosity in The Enterprise of Trend. All buyers have signed shareholders’ documentation guaranteeing BoF’s full editorial independence.