Subscribe to our newsletter

Swiss luxury watchmaker Hublot CEO Jean-Claude Biver says spending is Key, no innovation means no future.

LVMUY

Hublot exports 40% of its products to China, and with China’s GDP indicating the slowest growth in 3 yrs, the luxury Swiss watchmaking company has a lot to consider.

The company, which sells watches with price tags ranging from a couple thousand dollars to couple million, has a plan. “There is only one way to catch up, that is to make more noise than others, to make more noise, you need more investments,” Jean-Claude Biver said in a TV interview Friday.

The more uncertainty there is, the less you see the future, he added. That means investing more in R&D.

“The research and development is the only way to master the future. When there is no innovation, there is no future,” he said. “When the future is not clear, you must invest in innovation. The more you innovate, the more the future will be your friend.”

Hublot currently holds a patent ‘Magic Gold’, a scratch-resistant Gold used in its watches. The company continues to look for new ways to innovate, separating itself from its competitors. “In a time of crisis, this type of product is so much different, so revolutionary and so unique that people, if they buy a Gold watch, they will come and buy our Gold watch. As soon as you are in crisis, innovation is Key.” Mr. Biver said.

While Europe’s debt crisis is in for forefront for many investors and businesses, it is the slowdown in the world’s 2nd largest economy and biggest consumers of luxury goods that could dampen the profits of high-end retailers.

Hublot, which is owned by the conglomerate LVMH Moet Hennessy (PA:MC),(PINK:LVMUY) is new to the Chinese market, entering just 2 yrs ago, but it is heavily injecting capital into its biggest customer. Mr. Biver wants to expand its stores from the current 5 to 14 by year’s end.

Hublot is making noise from the roads to the basketball courts. It recently partnered with Ferrari and has Miami Heat’s Dwyane Wade as its Ambassador.

“The Swiss watch industry had a record year in Y 2011 and will do another 1 in Y 2012, although the year is not finished,” Mr. Biver said. “But I think we are plus 17% compared to last year, and as we have a slowdown in growth, we will end up between 8 to 10% more than last year, which means in Y 2012, it will bring us a 2nd consecutive record year of exportation which is a phenomenal performance considering the uncertainties we have in the World today.”