In a move that sends ripples through the intricate and often traditional world of watchmaking, French luxury titan LVMH Moët Hennessy Louis Vuitton has officially acquired a minority stake in La Joux-Perret, a revered Swiss watch movement manufacturer. This strategic acquisition sees LVMH investing in a company majority-owned by the Japanese Citizen Group, creating a unique and powerful alliance that bridges three global economic powerhouses. While the financial terms of the deal remain under wraps, the implications are crystal clear: LVMH is making a decisive move to bolster its watchmaking capabilities, secure its supply chain, and double down on innovative technologies, particularly in the burgeoning field of solar-powered movements.
A Strategic Alliance: LVMH Fortifies Its Horological Future
The acquisition of a minority stake in La Joux-Perret is far more than a simple financial investment for LVMH; it represents a critical step in the luxury conglomerate’s long-term strategy to enhance its vertical integration within the highly competitive watchmaking sector. By securing privileged access to a key supplier, LVMH strengthens its ability to innovate and control the quality of the very heart of its timepieces: the movement. The deal gives the luxury giant a voice in the strategy and operations of La Joux-Perret, ensuring a stable and predictable supply of high-end Swiss-made movements for its prestigious portfolio of watch brands, which includes icons like TAG Heuer, Hublot, Zenith, and the recently integrated Tiffany & Co.
This move is part of a broader industry trend where major luxury players seek to consolidate their production capabilities. Similar strategic investments have been made by competitors, such as Hermès’ stake in Vaucher and Chanel’s interest in Kenissi, which is majority-controlled by Rolex’s Tudor brand. For LVMH, this partnership with La Joux-Perret provides a significant boost in accessing both complex mechanical calibers and cutting-edge solar quartz technology at a substantial scale.
Jean-Christophe Babin, CEO of the LVMH Watches Division, emphasized the strategic fit, stating, “We are pleased to strengthen our ties with La Joux-Perret. Their technical mastery, industrial excellence, and deep roots in the Swiss watchmaking landscape make it an ideal partner for our watchmaking Maisons.”
Deepening an Already Fruitful Collaboration
The partnership between LVMH and La Joux-Perret is not a new development but rather the formalization and expansion of a successful existing relationship. Since 2022, LVMH’s TAG Heuer brand has been working closely with the Swiss manufacturer on the development of a sophisticated solar-powered quartz movement. This collaboration led to the creation of the Solargraph movement, a critical component in TAG Heuer’s popular Aquaracer and Formula 1 collections.
The Solargraph technology is a marvel of modern horology. It recharges using both natural sunlight and artificial light, eliminating the need for battery changes. A mere two minutes of full sunlight can power the watch for an entire day, while less than 20 hours of sun exposure provides an impressive six months of autonomy. This innovation also powers the elegant Rope watch from Tiffany & Co., showcasing the versatility and luxury application of La Joux-Perret’s technology. The success of these projects has undoubtedly paved the way for this deeper, more permanent alliance, with plans to extend this technological collaboration to other Maisons within the LVMH group.
La Joux-Perret: A Master of Movements
Nestled in the heart of Swiss watchmaking, La Chaux-de-Fonds, La Joux-Perret has carved out a formidable reputation as a producer of high-precision watch movements since its origins in the 1990s. The company, which employs over 140 skilled individuals, is renowned for its expertise in creating a wide spectrum of calibers, from intricate mechanical complications to advanced solar and quartz modules. Annually, the manufacturer produces approximately 150,000 movements, a testament to its significant industrial capacity.
La Joux-Perret’s offerings are diverse and highly regarded. They include the workhorse G100 time-only movement, the sophisticated L100 column-wheel chronograph, and high-end creations featuring tourbillons and monopusher chronographs. This versatility has made it a crucial supplier not just for LVMH and Citizen’s brands, but for a wide array of other Swiss and international watchmakers.
The manufacturer’s history is a rich tapestry, beginning as Jaquet SA and specializing in developing complex movements for the burgeoning fine watchmaking segment. After a tumultuous period in the early 2000s, the company was restructured and renamed La Joux-Perret. In a landmark move in 2012, the Japanese powerhouse Citizen Watch Group acquired the company for approximately CHF 64 million, aiming to penetrate the high-volume Swiss movement market. This acquisition provided La Joux-Perret with technological support and global recognition, allowing it to flourish while maintaining its Swiss identity.
The Rising Sun: The Allure of Solar Technology
A key driver of this landmark deal is the increasing consumer and industry interest in sustainable, high-precision watch movements. Solar-powered technology sits at the nexus of this trend, offering the accuracy and low maintenance of a quartz watch with the eco-friendly appeal of a self-powering mechanism.
Solar watches function by converting light energy into electrical energy via photovoltaic cells discreetly placed under the dial. This energy is then stored in a rechargeable battery, providing months of power even in complete darkness. This “set it and forget it” convenience, combined with the elimination of battery waste, resonates strongly with a younger, environmentally conscious demographic.
Jeffrey Cohen, President of Citizen Watch America, highlighted this growing appeal, stating, “We think a lot of young consumers are going to be interested in solar movements.” LVMH’s investment signals a clear intention to lead in this space, with Jean-Christophe Babin noting their collective aim “to lead the way in sustainable high-precision watch movements, leveraging our unmatched expertise in solar energy.”
A Global Handshake: The Citizen Group’s Perspective
For the Citizen Group, this deal represents a powerful validation of La Joux-Perret’s expertise and opens up new avenues for long-term development. Since acquiring the Swiss manufacturer in 2012, Citizen has successfully integrated it into its corporate family, which also includes brands like Frédérique Constant, Alpina, and Arnold & Son. The partnership with LVMH confirms La Joux-Perret’s status as a top-tier movement producer recognized by the world’s largest luxury group.
Yoshitaka Oji, President and CEO of Citizen Watch Group, expressed his optimism about the alliance: “This strategic alliance with a key partner confirms the recognition of its expertise and opens new long-term development prospects.”
Crucially, both parties have affirmed that La Joux-Perret will continue to operate as an independent company. This ensures it will carry on its core business of supplying movements to its diverse clientele, including competitors of both LVMH and Citizen. As Jeffrey Cohen succinctly put it, “That’s our core business. We service everybody.” This commitment maintains the health and diversity of the wider watchmaking ecosystem.
This unique tripartite relationship—a French luxury conglomerate investing in a Swiss manufacturer owned by a Japanese watch group—is a testament to the increasingly globalized and collaborative nature of the modern watch industry. It is a rare and noteworthy convergence of industry giants from across the globe.
As Jeffrey Cohen aptly remarked, “It’s the world coming together. It’s not often you see something like this, great companies collaborating.” This strategic investment is not just about securing movements; it’s about forging a future where innovation, sustainability, and unparalleled craftsmanship define the next generation of luxury timepieces.
