Podcast Summary:
Openwork: Inside the Watch Industry
Episode: Watch Groups Are Slimming Down – Brand Exits, Consolidation and a Return to Focus
Hosts: Asher Rapkin & Gabe Reilly (Collective Horology)
Date: February 2, 2026

Episode Overview

This episode offers an unfiltered, behind-the-scenes discussion of significant restructuring within the Swiss watch industry. Asher and Gabe examine recent and rumored brand sales by luxury groups like Richemont and LVMH, exploring motivations, potential impacts, and what these moves signal about industry trends. The conversation moves between confirmed events (Richemont selling Baume & Mercier), widespread rumors (LVMH shopping Zenith), and implications for watch fairs like Watches & Wonders, including shifting brand presences.

Key Discussion Points & Insights

1. Richemont Sells Baume & Mercier (B&M) to Damiani Group (03:00-10:30)

• Confirmation of Industry Predictions:
  The hosts recall their 2024 prediction of upcoming brand reshuffling in the industry, now materializing with Richemont selling Baume & Mercier to Italian jeweler Damiani.

  • “Richemont has shed Baume and Mercier and they have sold them to an Italian luxury group, the Damiani Group.” (02:30, B)

• Logic of Portfolio Slimming:
  Richemont’s move reflects a focus on higher-margin, high-prestige brands (Cartier, Jaeger-LeCoultre, Panerai, Lange, Vacheron) and a retreat from crowded, less-profitable mid-market segments.

  • “If I were Richemont…this is the right idea. They've been putting their effort and their energy into the higher end.” (05:31, A)

• Challenges of B&M’s Price Segment:
  B&M occupies the tough $1,000-$5,000 “mid-range” slot, with Montblanc and other brands also fighting for the same customers. Richemont tried numerous product refreshes (e.g., Riviera, spin-off ‘Baume’ line) but couldn't elevate B&M’s status in the group.

  • “In the end, I think it just demonstrates that brand just never had the juice to do what it needed to do for it to have a seat at the corporate table.” (05:18, A)

• Transition Complexities:
  The sale is complex due to movement supply (ValFleurier, Richemont’s own movement manufacturer) and intertwined logistics, requiring at least a 12-month transition phase.

  • “There's a 12 month...period where Richemont will continue to provide transition services: logistics, back office, all these sorts of things.” (10:37, B)

• What’s Next for B&M?
  The Damiani acquisition could reorient B&M toward a more fashion/jewelry position, akin to what Bulgari did with its watches—provided they pursue bold product changes.

  Notable Quote:

  "Does Baume & Mercier sort of become like a...baby Bulgari?...You could end up taking this brand into more of a fashion and jewelry direction..." (08:06, B)

2. Holding Company Structures and Industry Strategy Shifts (12:00-17:00)

• Shifts Away from Centralization:
  Richemont restructured internal reporting, making each brand (maison) more autonomous and directly accountable.

  • “The new CEO...broke that group up and said, no, each maison is now reporting to the CEO directly and responsible for their own P&L.” (11:32, B)

• Trade-Offs: Autonomy vs. Synergy:
  There’s a loss of group-wide customer experience (e.g., CRM systems) when brands are siloed, though this move gives maisons more creative control and distinct identities.

  • “If I’m a salesperson at Lange…and you go into a Jaeger-LeCoultre and you’re like ‘Hi, I have invested significantly in Richemont’ and they're like...‘your name is what?’” (13:15, A)

• Cultural Differences:
  Despite shared systems and ownership, Richemont brands have markedly different internal cultures—more than the hosts expected based on past big-company experience.

  • “Culturally they are extremely different. IWC has a very different culture from Montblanc, from Jaeger, from Vacheron. Never spoken to the good folks at Baume & Mercier, however!” (13:56, B)

3. LVMH & Zenith Sale Rumors – Denials and Industry Context (16:00-22:00)

• Rumors Clarified:
  There are credible but publicly denied rumors that LVMH is shopping Zenith. The hosts acknowledge the denials, but point to multiple trade reports suggesting LVMH is at least exploring options.

• Different Situation than B&M:
  Unlike B&M, Zenith is highly differentiated, with clear designs and a distinct identity. The motivation for a sale would hinge on group focus or financial performance, not lack of brand clarity.

  • “Zenith does not have that problem. Zenith is highly differentiated, very clearly articulated brand, very clear designs.” (17:48, A)

• The ‘I Love You, But’ Divorce Metaphor:
  Asher uses a memorable metaphor to contrast the two brand exits:

  "Zenith is like, ‘I love you and we need to get a divorce, but I think you're an incredible person. This just wasn't the right match.’ Maybe, if we run with that metaphor to Baume & Mercier, it's like, ‘we never should have gotten married anyway.’" (19:55, A; 00:00, A)

• Group Integration Complexity:
  Zenith makes and supplies movements to other LVMH houses; the same sort of deep integration complicates divorcing brand from group, raising vendor and IP questions.

  • “What are you buying? It's all tied up in agreements with third party vendors...shared intellectual property.” (21:03, A)

• Financial Reality vs. Industry Moves:
  Despite LVMH’s public focus on watchmaking (e.g., reviving Gerald Genta, Daniel Roth, and investing in movement makers), internal financial pressures (rumored years of losses at Zenith) may push deals.

  • “Zenith has been loss making for years. And so it's adding to the pressure from the executives to sort of do something.” (27:14, B)

4. Grand Strategy: LVMH’s Stakes and the Richemont Metagame (24:30-28:42)

• Bernard Arnault’s chessboard:
  Arnault (LVMH head) holds a stake in Richemont and is always rumored to covet Cartier/VCA. Are Richemont’s trims making an acquisition more palatable?

  • “Are they setting themselves up for an acquisition here?...LVMH has significantly beefed up watchmaking. So the fact that they'd be looking to shop Zenith...is surprising.” (25:31, B)

• Speculation vs. Reality:
  The hosts emphasize that only the companies have the real financials; public narratives don’t always match corporate priorities.

  • “We don’t have access to the books...corporations still do corporation stuff…” (27:09, A)

5. Watches & Wonders – Brand Moves and the Symbolism of Booth Placement (29:10-36:42)

• Audemars Piguet (AP) Joins Watches & Wonders:
  AP, previously absent, finally joins but is placed in a less prominent “kids’ table” upstairs location, previously a VIP ‘dining room’. Chanel also takes over Bell & Ross’s old spot.

  • “They're sort of being sent to the kids table.” (29:47, B)
  • “I can't help but find it amusing that, like, the spot that you couldn't get a table at is, of course, the place that AP leaves.” (32:00, A)

• Brand Politics and Physical Space:
  Placement at the fair is highly political and strategic, and sometimes reflects shifting pecking orders. Rerouting of traffic and shuttle buses, IKEA-style, guides press and buyers toward less prominent zones.

  • “It's like IKEA…you have to walk all the way through the different things…you walk through the plants before you leave.” (34:00, B/A)

• Moser’s Promotion to Main Hall (36:28–44:55):
  H. Moser & Cie. moves from the independent ‘Carré’ section to the main exhibition floor, taking over Montblanc’s old space. Hautlence, its sister indie, stays behind. The move is framed as a sign of “financial strength and renown” but draws criticism for potentially abandoning the independent/watch-collector ethos.

  • “Moser’s always been really ballsy…and extremely creative, unorthodox. Maverick brand, truly. Now they’re moving among the staid, traditional brands.” (38:22-38:34, A/B)

  • Notable Quote:

    “If they start acting like some of the major brands to the people who brought them to the dance, that ain’t going to go well.” (42:15, A)

  • Critique of PR Narrative:

    “What’s missing from that? Creativity, exciting products. So like the watches themselves.” (43:09, B)

6. Departures and Independent Scene (44:56–50:30)

• More Movers & Shakers:
  Montblanc leaves Watches & Wonders (not the Richemont group), Baume & Mercier stays (for now, likely for sale optics), Bell & Ross exits, smaller Indies like Speake-Marin and Armin Strom change participation.

  • “Montblanc doesn’t need Watches & Wonders the way Baume & Mercier does.” (48:05, B)
  • Satellite fairs (Time to Watches, Geneva Watch Days) are increasingly important options, especially for indies looking for exposure without the high cost.

• Industry Restructuring Cycles:
  Executive reshufflings, cost focus, and competitive shows subtly reshape the scene year by year—a dynamic the hosts promise to continue covering.

Notable Quotes & Memorable Moments

• Metaphor on Brand Exits:

  “Zenith is like, ‘I love you and we need to get a divorce...you're an incredible person. This just wasn't the right match.’...Baume & Mercier...it's like ‘we never should have gotten married anyway.’”
  — Asher Rapkin, (00:00, 19:55)

• On Richemont’s Strategy:

  “If I were Richemont…this is the right idea. They've clearly been putting their effort and their energy into the higher end.” — Asher (05:31)

• On Group Culture:

  “These organizations are truly extremely different culturally....I was sort of expecting that in our dealings with different brands from Richemont, and I’ll tell you...the brands are very, very different.” — Gabe (13:56)

• Critique of Moser's Messaging:

  “What’s missing from that [press release]? Creativity, exciting products. So like the watches themselves.” — Gabe (43:09)

• On Brand Loyalty:

  “If they start acting like some of the major brands to the people who brought them to the dance, that ain’t going to go well.” — Asher (42:15)

Important Timestamps

• Richemont and Baume & Mercier Sale: 03:47–10:37
• Portfolio Strategy & Organizational Shifts: 11:28–17:00
• LVMH & Zenith (Sale Rumors): 16:00–22:00, 24:45–27:14
• Bernard Arnault Stakes in Richemont: 25:12–28:42
• AP Joins Watches & Wonders / Booth Politics: 29:17–34:46
• Moser Moves Up, Out of Indie Space: 36:01–44:55
• Montblanc, Bell & Ross, Indie Show Dynamics: 44:56–50:48

Summary Takeaways

• The watch industry is starting to see the kinds of brand consolidation and strategic exits the hosts predicted—though everything still moves at a “glacial pace.”
• Richemont’s sale of Baume & Mercier to Damiani marks a new era of portfolio sharpening, focusing on higher-end maisons and letting go of underperformers in saturated segments.
• LVMH’s rumored contemplation of selling Zenith (despite denials) highlights the financial, emotional, and operational complexity of brand realignment in luxury groups.
• Moves at Watches & Wonders—from big-name arrivals to indie promotions and departures—mirror the shifting sands of power and prestige in watchmaking, with implications for both brand identity and collector relationships.
• Expect more behind-the-scenes movements, rumors, and realignments as luxury conglomerates seek to sharpen their focus and maximize value in a tougher global market.

For listeners:
This episode provides valuable context for understanding why and how major watch brands change hands, leave fairs, or reposition themselves in the market. Whether you’re a collector, industry insider, or casual enthusiast, the discussion balances behind-the-scenes analysis with lively banter and clear explanations of an otherwise opaque industry evolution.