In our previous discussion, we explored how the principles of value investing can be applied to watch collecting—a concept I refer to as ‘Value Collecting.’ We examined underrated timepieces from renowned brands like Breguet, which piqued my interest and inspired me to dive even deeper into this compelling strategy for identifying potential hidden gems in the luxury watch market.

Collecting timepieces from watchmakers whose value is set for rapid growth closely parallels the principles of ‘growth investing,’ a strategy typically applied to high-growth stocks in the financial markets. Viewed through this new lens of ‘growth collecting,’ the crucial question becomes: which next-generation watchmakers should collectors and investors focus on today? Among these emerging brands, which are positioned to become the major beneficiaries of the next surge in the luxury watch market? In this article, we’ll delve into the watchmakers poised to shape the future of luxury horology and uncover potential hidden gems for forward-looking enthusiasts.

Beginner’s Guide to Growth Investing: What It Is and How It Works

Investing in NVIDIA stock in 2023, during the emergence of OpenAI’s ChatGPT and the broader shift toward generative artificial intelligence, serves as a prime example of a successful growth investing strategy. This period highlighted how rapid technological advancements can drive substantial gains for forward-looking investors.

Growth investing is an investment strategy focused on identifying companies with the potential to deliver high returns by expanding into new markets or rapidly growing their market share. Investors practicing this approach seek businesses with strong growth prospects, innovative products or services, and the ability to consistently outperform the broader market. Growth investing aims for significant long-term capital appreciation rather than immediate income like dividends.

So, what conditions enable a watchmaker to achieve significant growth, mirroring the trajectory of high-growth companies, and rapidly boost its brand value and market share in the luxury watch industry?

The Growth of 21st Century Watchmakers, Part 1: Key Trends Transforming the Luxury Watch Industry

Growth potential in the luxury watch industry is often assessed by examining shifts in the macroeconomic environment and evolving fashion trends. These factors play a critical role in shaping consumer demand, influencing purchasing behavior, and determining the long-term success of watch brands.

One of the most significant emerging trends in the luxury watch market is the growing flexibility around gender. Once considered a male-dominated space, the industry is now experiencing a notable increase in female buyers and collectors. Moreover, gender-neutral timepiece designs are gaining strong popularity, attracting both male and female consumers and redefining the demographic landscape of the luxury watch industry.

The clear standout beneficiary of this gender-flexible trend in the luxury watch market is Cartier. Initially launched as a men’s watch brand, Cartier has evolved into a must-have choice among female consumers and is now gaining remarkable popularity as an ‘it’ accessory favored by male celebrities. This shift underscores Cartier’s broad appeal across genders and solidifies its growing influence in the modern luxury watch industry.

Undoubtedly, music stars like Tyler, The Creator, Bad Bunny, and G-Dragon, along with influential collectors such as Mark Cho—the founder of the classic menswear boutique The Armoury—have played a significant role in elevating Cartier’s popularity. By acting as unofficial brand ambassadors, their visibility and distinctive personal styles have helped redefine Cartier’s modern image and expand its appeal to new and diverse audiences in the luxury watch market.

The Cartier Crash, famously worn by Tyler, The Creator, is rapidly emerging as a trendy and highly coveted timepiece among the general public. Its rising popularity is driven by influential figures like Jay-Z and Kanye West in the hip-hop world, along with sports icons such as Tom Brady and prominent Hollywood actors. Their endorsements have solidified the Cartier Crash’s status as an iconic and fashionable choice in the luxury watch market.

Cartier’s official male ambassadors are increasingly choosing to wear watch models originally crafted for women at high-profile events like award ceremonies and film premieres. This trend signals a new direction in men’s luxury fashion, embracing the concept of the ‘new masculine,’ which blends elegance, versatility, and a progressive approach to personal style.

Notably, actors Paul Mescal—renowned for his performance in Aftersun and currently in the spotlight for Gladiator 2—and globally acclaimed Timothée Chalamet have both been seen wearing women’s timepieces on several occasions. Their bold style choices exemplify the growing trend of gender-fluid fashion, signaling a significant shift in the luxury watch industry toward more inclusive and versatile design aesthetics.

Sebastian Stan, renowned for his portrayal of the Winter Soldier, and Rami Malek, who earned an Academy Award for Best Actor for Bohemian Rhapsody, are also notable figures who skillfully embrace unisex watch designs. Their confident style choices underscore the rising popularity of gender-neutral timepieces and reflect the evolving landscape of the modern luxury watch industry.

Cartier Market Insights: Analyzing Key Performance Indicators and Emerging Industry Trends

The Growth of 21st Century Watchmakers, Part 2: Building Strong Foundations for Long-Term Success

Watchmakers cannot rely solely on external market trends or economic conditions to drive growth. To succeed in the competitive luxury watch industry, they must also prioritize internal improvements and strategic initiatives that boost innovation, enhance operational efficiency, and strengthen brand value.

Brands such as Louis Vuitton and Chanel have often been undervalued in the luxury watch industry, frequently dismissed as ‘fashion watch’ makers because of their limited in-house movement technology and smaller archives of historic designs. Interestingly, many esteemed watch brands have relied on outsourced movements for years without attracting similar criticism. These entrenched biases and discriminatory perceptions continue to influence how fashion houses are perceived within the luxury watch market.

To shed the perception of being merely ‘fashion brands’ and establish themselves as serious contenders in the luxury watch market, these Maisons have taken bold strategic steps. Many have acquired movement manufacturers or forged partnerships with independent watchmakers celebrated for their heritage and technical mastery. As a result, they have significantly elevated the craftsmanship, technical innovation, and finishing quality of their timepieces. These decisive efforts are helping them swiftly overcome previous ‘weaknesses’ and firmly position themselves as credible players in the world of high-end watchmaking.

Louis Vuitton has solidified its presence in the luxury watch market through the acquisition of La Fabrique du Temps (LFdT), a move that has significantly boosted the brand’s horological capabilities. Under the leadership of Jean Arnault, the youngest son of the LVMH family, Louis Vuitton completely revamped its watch catalog for 2022-2023. A highlight of this transformation includes a full redesign of the Tambour sports watch line, while the existing Tambour Street Diver collection has been repositioned as the ‘Original Tambour’ series. These strategic changes reflect Louis Vuitton’s commitment to elevating its status as a serious player in high-end watchmaking.

Recently, Louis Vuitton introduced the Tambour Convergence, a standout timepiece featuring the innovative ‘Dragging Hour’ complication, driven by La Fabrique du Temps’ (LFdT) in-house movement. This launch highlights the brand’s dedication to technical innovation and reinforces its growing stature in the luxury horology market.

Chanel holds a 20% stake in Manufacture Kenissi, a renowned manufacturer responsible for producing movements for Tudor watches. Notably, in 2018, Chanel also acquired a minority stake in the prestigious independent watchmaker F.P. Journe, reinforcing its commitment to high-end horology, technical innovation, and expanding its presence in the luxury watch industry.

Fashion Watchmakers Gain Market Share: How Luxury Brands Are Expanding Into High-End Horology

Luxury Watchmakers Evolve: Shifting Perceptions in the High-End Timepiece Market

Equally important is communicating these innovations to the market, so consumers and collectors clearly understand the brand’s progress and unwavering commitment to quality craftsmanship.

Heuer flourished during the golden era of motorsports, notably in Formula One, where it held the role of official timekeeper for legendary drivers and esteemed manufacturers like Ferrari. The brand solidified its legacy with iconic models such as the Autavia, Carrera, and Monaco—timepieces that continue to be revered as symbols of precision engineering and racing heritage within the luxury watch industry.

However, after its acquisition by TAG in the 1980s—which resulted in the brand being renamed TAG Heuer—and subsequently by LVMH in the 1990s, the brand’s image began to evolve. Over time, TAG Heuer was increasingly perceived as an ‘entry-level’ luxury watchmaker. This shift was highlighted by the choice of Tiger Woods, a golf icon with no direct ties to motorsports, as a prominent brand ambassador, signaling a move away from Heuer’s rich racing heritage.

Fortunately, TAG Heuer has successfully revitalized its brand image in recent years by introducing reissues of iconic timepieces from the golden era of motorsports and classic chronographs. The brand has also reasserted its presence in Formula One, effectively reconnecting with its storied racing heritage and reigniting interest among enthusiasts and collectors.

In recent years, TAG Heuer has been actively elevating its brand image by reissuing iconic timepieces from the golden age of motorsports and classic chronographs, while making a notable return to the Formula One scene. The brand’s latest Glassbox series exemplifies this transformation, underscoring TAG Heuer’s renewed dedication to innovation, heritage, and exceptional craftsmanship within the luxury watch industry.

Dear readers, which watch brands do you see as the next rising stars in the luxury watch industry? We’d love to hear your thoughts on which names are poised for the fastest growth in the years ahead.

As both a collector and watch curator, I find it fascinating to observe how these watchmakers are evolving, adapting to market trends, and redefining their place in the luxury watch industry.

David Hwang

Watch Analyst

Watch Terminal