Will Damiani save Baume & Mercier? Just ask Carl F. Bucherer
The recent acquisition of Baume & Mercier by the Damiani Group raises questions about the brand's future in a challenging market. Despite having a storied history and a wide distribution network, Baume & Mercier faces significant challenges related to desirability rather than distribution. The mid-market segment, where Baume & Mercier operates, has become increasingly competitive and lacks appeal to both fashion-conscious consumers and serious collectors. The brand generated CHF 69 million in sales in 2024 but struggles with indistinct offerings compared to competitors like Christopher Ward, which provides similar quality at lower prices. Optimistic scenarios envision Damiani successfully repositioning Baume & Mercier as an Italian brand of Swiss watchmaking, potentially leading to a sustainable niche. However, more realistic outcomes suggest that Damiani may eventually scale back operations, producing fewer models without ambitious growth. The pessimistic view predicts a bleak future where Baume & Mercier could be sold again or shut down entirely within the next five to seven years, relegating its watches to the status of vintage curiosities. Overall, the acquisition appears to favor Richemont, as the complexities of maintaining a watch brand may prove burdensome for Damiani.
