Instances of conglomerate screwing up with individual brand development

Thread: Instances of conglomerate screwing up with individual brand development

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  1. #1
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    Instances of conglomerate screwing up with individual brand development

    I was looking forward towards the Tag Heuer CH80 when LVMH decided to delay itís development in fear of eating towards other brands. However I donít follow other brands closely so can anyone link me other instances in which conglomerate halted an individual brandís progress in favour of overall group profits?

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    I don't see it as a conglomerate vs brand decision. Ch80 seem to be just another stillborn - quite common in the watch industry. I do not see any advantage of it over 1887 apart from satisfying some vanity driven egos. 1887, although it had some difficult beginnings due to its non-Swiss design has proved itself a robust movement and was gradually accepted by consumers. Why would TH need to increase their production costs and have 2 movements competing for the same market?

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    Re: Instances of conglomerate screwing up with individual brand development

    Conglomerates don't screw up, brands screw up by not being aligned with the mothership. Usually an over-aggressive ladder climbing middle-manager not following corporate protocol. In their zeal to advance by "doing the right thing" they end up hurting the brand.

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    Re: Instances of conglomerate screwing up with individual brand development

    Quote Originally Posted by Orex View Post
    I don't see it as a conglomerate vs brand decision. Ch80 seem to be just another stillborn - quite common in the watch industry. I do not see any advantage of it over 1887 apart from satisfying some vanity driven egos.

    If TAGHeuer only made the CH80 and made no 1887 movements, they would save money.

    The oft bandied notion that the CH80 is the more expensive movement is something that got spread around after the limited (500?) pretty much hand made "1969" watches were made available for about £8500. Y'know, the dlc coated/treated titanium carbide and rose gold one that had actual gold thread in the strap.

    Prior to it being pulled, the expected prices for the production CH80 watches were inline with the existing Calibre17 ADIS models, which were a little bit more than the 1887 (£200-300 if I recall correctly).


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    Re: Instances of conglomerate screwing up with individual brand development

    I'm sure there are internal conflicts all the time, but we the public don't see much of it. The situation at TH just happened to be a particularly glaring example. Btw, the CH80 isn't delayed, it's dead, at least as long as Biver is running the show.
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    Re: Instances of conglomerate screwing up with individual brand development

    How many chronograph movements should TH offer? Do they really need models based on the 7750, 2894, El Primero, 1887 AND the CH80?

    There were probably many decision factors in play, most of which were at the brand level and cannot simply be lumped on LVMH. If I had to rationalize that portfolio of chronos it would be hard to decide where to start. There are arguments for or against any type of portfolio combination. The easiest choice from an operational standpoint was probably to abort the launch of the CH80.

    Anyway, to the OP's question, it's hard to really identify any concrete examples. Ebel under Movado is probably one of them. JeanRichard looks to be in poor shape, but the Sowind group doesn't seem to have done anything truely wrong with it. Eterna seems to be having a rough time under Citychamp, but this may be due to tough conditions and slow demand in general for that brand. Maurice Lacroix is being sold off by DKSH, but again this may be because watches aren't part of their core competencies.

    On a different slant, Longines is selling very well under Swatch, but only as a shadow of its former self. Gone are the days when it could be compared to JLC or Zenith. Of course Zenith Watches under Zenith Radio & Television is a classic and famous example of disastrous corporate meddling.
    Last edited by WTSP; July 20th, 2015 at 20:18.

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    Member drunken monkey's Avatar
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    Re: Instances of conglomerate screwing up with individual brand development

    Quote Originally Posted by WTSP View Post
    How many chronograph movements should TH offer? Do they really need models based on the 7750, 2894, El Primero, 1887 AND the CH80?
    The original plan was to phase out the use of the 16 (ETA 7750 or SW500), which is why you still see near identical versions of watches using the 16 and 1887. Once the 16 was gone from the core Carrera line-up, they should've/would've been at their factory capacity for the 1887 which would've been when they started to phase in CH80 models.

    Quote Originally Posted by WTSP View Post
    On a different slant, Longines is selling very well under Swatch, but only as a shadow of its former self. Gone are the days when it could be compared to JLC or Zenith.
    Another often cited example, except it doesn't take into consideration what kind of business Longines were doing prior to Swatch; they were a shadow before SMH.
    In other news Swatchgroup are going to be paying for what is going to be the most expensive rent for a Longines Boutique on Oxford Street.
    Last edited by drunken monkey; July 20th, 2015 at 20:58.


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