LVMH has a crack at the smart watch market

The smart watch euphoria never took off, so logic surely dictates the price point was just too low… Hang on a sec.

LVMH, which owns such brands as Louis Vuitton, Hennessy and Lady Dior, has told Bloomberg of plans to launch a luxury smart watch product line under the Hublot brand. We’ve never been convinced by the segment on the whole, and when Apple can’t convince it cult-like following to buy the products it is never a good sign. But LVMH is clearly confident in the $5,200 product…

“It’s a unique one-shot,” said Jean-Claude Biver, LVMH’s watch boss. “It will be a collector’s watch in 20 years.”

Sure it will Jean-Claude.

There is a theory in the marketing world that the more expensive you make something, the more people will want it. Once it is out of reach it is desirable because it shows you are someone who can afford something which is out of the ordinary. It becomes a status symbol. This is essentially the philosophy which companies like LVMH, who specialise in luxury goods, are built upon. But we can’t see it working here.

The practicalities of smart watches are simple, therefore the basic brands, such as Fitbit, have been the most successful. Others have taken up the challenge of proving the technology is useful, Apple is persisting with this mission, but little success has been shown. It isn’t a product which will replace the smartphone, therefore upping the price shows little justification, and it certainly isn’t a fashionable symbol.

Just like Vertu smartphones, Kanye West-designed clothes, carbon fiber toilet seats or Kevin Bacon adverts, this device will probably just go down as pointlessly expensive.