Tim_M
1478
Suitors Outside the Watch Space
Kering may be the best fit among existing watch portfolio holders, but I suspect that the most likely buyer would be a company flush with cash and currently operating outside either the luxury industry or outside of the luxury watch space. Rolex, Richemont, and Swatch have plenty of steel sports watches in the $3,000-$15,000 US market where Breitling makes most of its money. IWC, Baume et Mercier, Montblanc at Richemont, Longines and Omega at Swatch, and TAG Heuer at LVMH already serve this market.
I would not be shocked to see a marauding private equity company or cash-rich Chinese firm looking to add a luxe watch brand if they see these lean times as an opportunity to "buy low."
Best,
Tim
Breitling seems to be for sale
According to Bloomberg ( https://www.bloomberg.com/news/articles/2016-11-29/swiss-watchmaker-breitling-said-to-be-considering-a-sale ) Breitling has kicked off the process of looking for suitors as a result of the current industry crisis. With sales at ar...
I think Richemont would be a good fit
Hard to say who will snap them up, though. To be honest, I didn't even realize they were still independent until I read the news about the possible sale. I guess I hadn't thought about the brand much as I've never really had a desire to own one of their w...
Granted - the brand is not discussed here often :)
Seems that Richemont is a group many Purists could imagine in the role of owner...
I like the idea of Richemont buying them
Gives Richemont a mass market brand at the lower level which I dont think they seem to have. It does make a better fit for LVMH imo but they already have TAG Heuer. AT
How about MB?
The lower level MB lines would be positioned below, while the IWC Pilot line would be spot on price wise? Still does not need to be a bad fit... The brands they have are adequately differentiated, so could work, if the overlap with IWC is managed
Baume & Mercier is Richemont's mass-market brand..
..but they don\'t make Breitling-style tool watches, and Breitling would complement them. But Breitling isn\'t quite as downmarket as B&M, at least not looking at their retail prices. --Rick
Forgot about B&M
So even more competition The pilot segment would be covered by IWC in their portfolio.
I'll be....
third in a row to say that Richemont may very well be the right suitor to take the company over. Shall be followed with interest on my end.... Cheers, Filip
I cannot say how their brand stewardship is in general...
But many of their brands have prospered over time, so from that perspective...
.
Richemont has brands like IWC and Panerai for their Pilot & Diver market, so i don't see the fit of Breitling brand in their portfolio. The same is with LVMH. Swatch on the other hand....
Agreed on the IWC overlap
May be hard to properly pursue both. LVMH could work in the sense that TAG does not do pilot watches and Zenith only does one line (OK, maybe two), which would not overlap that much. Swatch has very many brands already but I grant you that Breitling would...
I had offer yesterday by very dear friend...
to buy Breitling for 1 EUR I asked which one Answer was all of them Cheers and let's see...my bet...non of mentioned
You want to place a bet on a specific other group?
Maybe us Purists save up a bit and get ourselves an own brand? Comes with plenty of aircraft, too - how cool is that? Technically it could have been VW some years back but do not think it would fly nowadays... Red Bull?
Agreed - better saved than gone
The question of course remains what will change with them... If it means economies of scale and these passed on to consumers to an extent, I'm all for it
Not sure of that my friend ;-)
But a huge fight could happen between main competitors as Breitling is a very well known brand all over the world and so their goodwill is important. Interesting to follow this new story. Best wishes Alkiro
Fully agree!
And I hope a good suitor is found - would be a shame for the brand to disappear, or languish with little attention...
that is a shame
They have just invested in new in-house movements and now they are in financial difficulties. Maybe the in-house movements came too late? Thank you for the news.
Read an article somewhere...
That in-house movements are one of the culprits of the current watch industry doldrums. They are generally expensive to develop and the brands then tried to recoup the investment through higher prices, bringing them ever closer to competitors that were in...
Among the 4 potential suitors....
I think Kering is the one that has the space for a brand like Breitling. Sporty and affordable, something which I think as a group they still lack. Will be a good complement to GP and UN, I feel.
Good point!
Too early to say how successful they will be with the brands they have I guess but there is the least amount of overlap I guess. And they should understand luxury from non-watch related points of view, too.
Breitling: So called 'Inventor' of early horologic patents, chronographs and timers...
The following history may have modern parallels and give clues to the modern "fit" of Breitling in any potential investor's portfolio: Leon Breitling was an assistant clerk in the Patents Office and "credited" with an early horologic patent..... (no comme...
Not sure I completely follow - but then again I am relatively new to this ;)
Could be Kering or Swatch from the 'establishment' but given your role at PuristSPro - Chopard? I have too little info on the company to know if it is feasible or desirable but it appears that their annual sales in 2014 amounted to about CHF800 million, s...
Maybe too expensive for Kering?
(Normally well-informed) sources indicated that Kering paid 850 millions Swiss Franks for Ulysse Nardin two years ago. With the current crisis of the luxury watch market, expecially in Russia and Asia (two markets especially emphasized by UN), it my be do...
Suitors Outside the Watch Space
Kering may be the best fit among existing watch portfolio holders, but I suspect that the most likely buyer would be a company flush with cash and currently operating outside either the luxury industry or outside of the luxury watch space. Rolex, Richemon...
Depending on the price, a Chinese investor may be difficult these days...
Given that new capital controls / FDI controls have just been instituted in China. So it could either be someone already in the watch business or Chinese investors could be out - again depending on the purchase price and the centrality of the acquisition ...
Fair point...
Since I assume that the non-watch sectors of Kering's portfolio are not overperforming in those countries, either. Thanks for your update / thoughts!
that's a shame
I think it would be nicer to remain independent rather than having to fit into a group philosophy. Quite understand financially though if they feel the need to shore up the business. I know Breitling doesn’t get a lot of mentions on here maybe because a l...
There are several people here with a Breitling in their watch collection
Not always the current models, as you say but the brand has a rich and storied history
I think Rolex should consider
Buying them. Both brands have somewhat similar take on sticking to one core segment and both have similarly large production numbers with similar marketing approaches. Rolex most likely also have the financial strength to buy them as well.
I could imagine that they would swallow them without noticing much ;)
But they also work in the same price segment, if in slightly different niches. Interesting idea - thanks for sharing!
I am unconvinced Richmond or LVMH is a good fit and still maintain the DNA of the brand.....
Kering might not afford them. Swatch might gobble them up but would the brand stay intact?
I hear you...
Swatch can definitely gobble them up - but with so many of their brands competing in that price range, the question is should they...
I dom't think they will, as SG has a carefully chosen portfolio...
of brands with a dedicated market segment. Its so perfectly arranged that there is little overlap. Where would Breitling fit there? Best, Magnus
As I said - cannot see the rationale
Just that they would have the muscle to do it. And I do not think that they have the pilot watch sector covered. Still, it would be a step too far IMHO.
Would Swatch need it?
The B01 is fine but Swatch possesses in-house movements aplenty, not sure if there are areas in case construction or elsewhere, where Breitling has significant in-house capability that Swatch lacks...
Does not fit well in LVMH just as not in the other conglomerates. Best guess..
Mideast or Chinese buyer?
Could of course also happen...
Have too little knowledge of them to make an education guess in that direction
For Richard personally, most likely yes. But . . .
. . . he may well have friends with deep pockets. Art
Let's see... :)
May be quite some months before we have clarity on the final suitor...