Designer Watches
challenge handbags as fashion accessories

April 2008

In the realm of luxury fashion, there are many contenders to the throne but only one king. For almost a decade, the designer handbag has worn the luxury crown.

But now a battle royal is under way to determine the next sovereign. It will not be the designer ready-to-wear collections splashed across magazines, nor will it be stylish footwear like 10-inch, or 25-centimeter, heels or Minnie Mouse flats.

The workhorses of the industry, perfume and makeup, may bring in the money, but they lack the je-ne-sais-quoi luxe-glam of a designer handbag.

Gucci Chiodo

No, the handbag's dauphin is the luxury watch, whether for women or men, with its "one size fits all" factor.

Sunglasses and jewelry also possess that factor. But sunglasses, no matter how tricked out with diamonds or how feather-light and streamlined with titanium frames, will never have the timeless appeal of a luxury watch. And while jewelry is a close second to watches, with its cachet of one-of-a-kind creations and use of rare gemstones, these elements can also be easily incorporated into a luxury wristwatch.

Like handbags, watches can cross any border; they do not clash with traditional dress or religious beliefs. In emerging luxury markets, like India, China and Russia, watches have come to be perceived as ultimate status symbols.

Another measure of luxury watches increasing status is that the price of an introductory wristwatch is now on par with some designer handbags. A steady rise in prices for luxury handbags has brought many fashion labels over the €1,000, or $1,500, mark. In fact, €1,000 bags are starting to be banal; the benchmark for top-end bags is closing in on €5,000.

Industry-wide, fashion brands are creating designer watches and absorbing them into their stable of luxury goods. The crossover is easy. The brands entice fans of their designer bags to invest in a designer watch, too. And with the growing rumbling of a potential backlash against luxury handbags - because of the bag's shorter and shorter shelf life as a "one season wonder" - high-end watches with designer names on the dial look even more attractive.

The move is paying off. LVMH reported that profit for its watches and jewelry sector (which includes Tag Heuer, Zenith and Montres Dior) almost quadrupled in 2006, and it grew another 13 percent in 2007, when it took into account fluctuating exchange rates.

Moschino is working with the Binda Group to create watches for its Cheap & Chic line. Chloé, which is owned by Richemont, has a line of watches in the works. And both the designer team of Badgley Mischka and the fashion golden boy Zac Posen now have watch partnerships with E. Gluck Corp., which manufactures watches for others.

Even Valentino, on the eve of his retirement from fashion, turned to Timex to create a limited edition watch to celebrate his 45 years in the business.

The designer John Galliano, who has found success with his watches for Christian Dior, has teamed up with Morellato to produce watches and jewelry for his signature line. The jewelry line will be shown at the Baselworld watch fair this week, with the watch line to be shown next year. And if Galliano is to be believed, he has taken to heart the idea of creating a watch that can also act as jewelry.

"The Galliano watch is very feminine, very delicate, its more like a jewel than a watch," he said. "When we were coming up with these designs I wanted to create a piece that was like a delicate corsage, a decoration that you can hang on a chain necklace, as well as adding romance to a regular watch. I was really inspired to create a watch that would go with a beautiful evening dress, as well as add to your day."

Another fashion brand designer showing at Basel this year will be Roberto Cavalli, whose Diamond Time line of watches will incorporate diamonds and rock crystal embellishments.

"As the Roberto Cavalli collection is evolving in an extremely sophisticated look approaching couture, I felt that I had to propose to my customers, men and women, an item which represents the highest level in the watch segment," Cavalli said.

These are entry-level luxury watches with prices ranging from €1,000 to €2,500.

Brands like Louis Vuitton, Versace, Gucci and Fendi, which have already made inroads in the luxury watch segment, are trying to make a connection between their fashion designers and their luxury watches.

At Fendi, it comes in the shape of the watch itself, inspired by the belt-buckle-shaped must-have "B" bag that Silvia Fendi created for the catwalk.

At Basel last year, Gucci introduced its Signora watch, the first one designed by Frida Giannini, the mind behind the house's ready-to-wear collections. And this year Versace will introduce a 43-millimeter, or 1.7-inch, piece from the classically styled men's watch collection called Acron. Even Donatella Versace might feel comfortable wearing it on her wrist, thus showing it to be not only one-size-fits-all but also unisex.

Also at Basel this year, Louis Vuitton will inaugurate its first watch designed by Marc Jacob, who creates the house's successful ready-to-wear collections. Called the Emprise, which was the name used on the first range of fine jewelry Jacobs did for the house, it has a sleek retro '70s feel.

"I liked the idea of this watch being a watch that came from those same original concepts for that jewelry, which was to look at the hardware on the trunks and hard cases, you know the historic, and I think inimitable, ability that Vuitton has for constructing these pieces of hardware, which are so distinctive on all of their bags," Jacobs said.

The more established luxury fashion brands are trying to separate themselves from the upstarts by touting the quality of their Swiss-made movements or through the addition of new and more intricate functions.

The august fashion house Hermès last year widened its 25 percent stake in a renowned Swiss watchmaker, Vaucher Manufacture Fleurier, though it did not say by how much. Vaucher, which is based in Fleurier, Switzerland, is known for its high-precision movements that are used by the likes of Tiffany and the Corum luxury watch brand.

So while the luxury handbag still reigns supreme in the fashion empire, it would not be a surprise to see in the not-to-distant future a well-timed coup d'état.