The luxury watch industry has been facing significant challenges, particularly as the demand in key markets like China has faltered. Amid this backdrop, Hublot’s newly appointed CEO, Julien Tornare, is redefining the brand’s approach to meet the evolving demands of consumers. In his first interview since taking the helm, Tornare emphasized the necessity of aligning luxury items with genuine value, a move crucial to revitalizing interest among luxury watch consumers.
Tornare succeeded Ricardo Guadalupe as the leader of Hublot in September, bringing with him a depth of experience from his previous role as CEO of LVMH’s Zenith. With over a decade working under the expansive umbrella of LVMH, he understands the intricate dynamics that govern the luxury sector. Tornare pointedly remarked, “We as brands have to be careful. It’s not just because something is luxury that people are willing to pay any price. Those days are gone.” This mindset reflects a shift from merely marketing luxury goods toward creating value that customers can genuinely appreciate.
The luxury watch sector’s recent downturn has been marked by significant losses; LVMH reported a 5% decline in watches and jewelry revenue during the first nine months of 2024. Furthermore, the broader Swiss watch industry faced a 26.3% drop in exports, primarily driven by a decrease in demand from China. Collectively, these factors present an urgent need for Hublot to recalibrate its business strategy.
One of Tornare’s key initiatives is to instill what he describes as “Hublot 4.0.” This concept revolves around enhancing the brand’s value proposition through investment in top-tier craftsmanship. Tornare plans to integrate more of Hublot’s supply chain into a new facility set to open in 2026, thereby ensuring a higher quality of production that caters to discerning consumers. He stated, “It’s not going to be a quantity strategy; it’s going to be a quality strategy.” This pivot toward craftsmanship serves to reinforce the narrative that true luxury is rooted in exquisite skill and attention to detail, aspects often overlooked in an age marked by mass production.
Additionally, Hublot’s marketing strategy is undergoing a transformation. Traditionally associated with football through high-profile partnerships, including relationships with organizations like FIFA, Tornare aims to diversify the brand’s cultural impact. He is prioritizing collaborations that resonate on an emotional level, extending beyond the sporting world. Recent partnerships have included collaborations with renowned artists like Haruki Murakami and celebrated designers, highlighting the brand’s commitment to intersecting art and luxury.
Although football will still play a significant role in Hublot’s marketing, Tornare indicated a desire to rebalance efforts to ensure a broader range of emotional connections with consumers, including initiatives in art and music. This shift will not only help in acquiring new clientele but also in revitalizing interest among existing customers.
Tornare’s proactive approach coincides with the brand’s strategic focus on markets with promising growth potential. Less than 10% of Hublot’s sales currently stem from China, allowing it to mitigate some of the impacts of the current market downturn. The United States, Latin America, Japan, and Korea emerge as primary regions for growth, emphasizing the importance of a versatile geographic strategy.
Moreover, Hublot’s commitment to craftsmanship will allow the brand to communicate more effectively with consumers about where their money is going. Tornare noted that consumers often associate high prices with celebrity endorsements and grand events, but he advocates for emphasizing the genuine craftsmanship behind each piece — a message that aligns with shifting consumer preferences for authenticity and transparency in luxury marketing.
Unexpectedly, the pressing economic realities have prompted Hublot to operate with a leaner workforce of about 1,500 employees. Tornare indicated that the brand has effectively avoided staff furloughs or drastic inventory cuts, positioning Hublot as a resilient player capable of navigating difficulties while maintaining operational efficiency.
The anticipated 20th anniversary of the Big Bang collection in 2025 exemplifies Hublot’s innovation and significant market presence, as this iconic line currently accounts for around 40% of the brand’s sales. Tornare sees this milestone as an opportunity to reinvigorate consumer interest and reinforce Hublot’s position within the luxury watch market. Details concerning the anniversary festivities will be unveiled at the Watches and Wonders Geneva fair, promising to showcase the brand’s commitment to both heritage and future direction.
In summary, Hublot’s new leadership under Julien Tornare signals a crucial pivot toward embracing genuine luxury and craftsmanship while diversifying its market strategies. This approach is not only timely but also essential for navigating the complexities of the current luxury landscape. As Hublot evolves, Tornare remains committed to retaining the brand’s unique identity, ensuring that it continues to enchant luxury watch enthusiasts around the globe.
