👉 Background: LVMH is the luxury fashion giant that stands for Louis Vuitton Moet Hennessy. It owns more than 75 luxury brands, including Louis Vuitton, Christian Dior, Stella McCartney, and TAG Heuer. It's the same company that reported nearly $94 billion USD in revenue for the 2023 year.

👉 What happened: LVMH has just formed a new watch division to lean further into the luxury watch market. They're doubling down on TAG Heuer, Hublot, and Zenith, and taking these brands to the next level by releasing a range of luxury watches. We're talking limited-edition watches around the $250,000 mark.

👉 What else: But most interestingly, they're trying to target millennials and Gen Z to buy these snazzy devices. While some like the watches for the prestige, others have been buying these watches as a really poor investment.

What's the key learning?

💡Investing in watches is like investing in any other asset class—it comes with its own sets of risks.

💡During the pandemic, the average price of luxury watches was over $45,000 USD, which was 5 times the retail price. But since then, the average price of these watches has fallen 31% to around $30,000 USD.

💡A report from BCG found that 54% of Gen Z and millennials had increased their spending on luxury watches over the past two years. And, it's estimated that the market will be worth around $37 billion USD by 2032. So clearly, LVMH has seen a trend of young and 'aspirational' customers looking for premium watches and is leaning in.

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