Breaking News in Luxury Watches: LVMH Acquires Minority Stake in Swiss Movement Manufacturer La Joux-Perret from Citizen Group
Hold onto your watches—this is a move that could reshape the high-end watchmaking landscape. LVMH, the world’s leading luxury conglomerate, has just taken a minority stake in Swiss movement specialist La Joux-Perret, acquiring it from Japan's Citizen Group. But here’s where it gets interesting: this is more than just a financial transaction. It’s a strategic play that could give LVMH’s prestigious brands, including Tag Heuer, Hublot, Zenith, Bulgari, and Tiffany & Co., easier access to Swiss-made mechanical and solar-quartz movements at scale.
Watch movements are often called the "heartbeat" of a timepiece. They power the functions, complications, and precision that define luxury watches. By acquiring a minority stake, LVMH not only strengthens its supply chain but also gains a voice in the strategic direction of La Joux-Perret. While the exact financial terms remain undisclosed, the move positions LVMH to influence key decisions, and potentially play a decisive role if Citizen ever considers selling its Swiss assets, which also include Frederique Constant, Angelus, and Arnold & Son.
Based in the historic watchmaking town of La Chaux-de-Fonds, La Joux-Perret produces around 150,000 movements annually, according to Hodinkee. Their portfolio spans from reliable time-only movements like the G100, to sophisticated column-wheel chronographs like the L100, as well as high-end tourbillon and monopusher chronograph movements. Notably, the company developed the Solargraph movement in collaboration with Tag Heuer. First used in the Aquaracer, this innovative movement harnesses sunlight or artificial light, eliminating the need for battery changes. Just two minutes of sunlight powers the watch for a full day, and under strong light for less than 20 hours, the Solargraph can maintain energy for six months. It’s also featured in the revived Tag Heuer Formula 1, which has gained traction thanks to LVMH's role as a top motorsport sponsor. The partnership even extends to powering Tiffany & Co.'s Rope watch, with plans to integrate this technology across other LVMH brands.
La Joux-Perret faces competition from other prominent Swiss movement producers, including Swatch Group's ETA, Sellita, and Kenissi—which is majority owned by Rolex’s Tudor and also backed by Chanel. Interestingly, LVMH was also a contender for the Vaucher movement maker, partially owned by Hermès and the Sandoz Foundation. That sale ultimately fell through, highlighting how complex and competitive the Swiss watch movement market has become.
Citizen has confirmed that following LVMH's investment, La Joux-Perret will continue to operate independently within the Citizen Group and maintain its supply to other watchmakers beyond LVMH. This ensures that the company’s innovative technologies remain accessible across the industry.
LVMH, whose portfolio ranges from Louis Vuitton to Moët & Chandon, continues to expand its influence in horology. Its watch division, led by Bulgari CEO Jean-Christophe Babin, also includes revived brands like Daniel Roth and Gerald Genta. While the division is a powerhouse, it still trails major rivals such as Richemont, Swatch Group, and Rolex in overall production and sales.
Babin emphasized that this investment allows LVMH to leverage "our unmatched expertise in solar energy," while Citizen’s CEO Yoshitaka Oji described the partnership as a strategic alliance that "recognizes our expertise and opens new opportunities for long-term growth."
This development raises intriguing questions: Will LVMH’s minority stake change the balance of power among Swiss movement makers? Could this spark more collaborations between Japanese and Swiss watchmakers? Luxury watch enthusiasts, what’s your take on this bold move—game-changer or just another corporate maneuver? The debate is wide open.
