The Movado Group is a Swiss watchmaker best known for its Museum Watch. The group owns the Movado brand as well as a number of other watch brands. Earlier this month, the Movado Group announced an agreement to purchase MVMT Watches Inc., a newly formed watch company that’s achieved a large amount of success in recent years — specializing in offering watches, sunglasses and other accessories at an affordable price. The company itself began in 2013 in large part due to crowdfunding. It’s based out of Los Angeles and draws upon a very minimalist design.
MVMT has a very large social media presence as a company and there are more than 1.5 million people across the world who own MVMT watches and accessories. With the huge customer base and social media following, the Movado Group has the ability to leverage these connections and networks to continue to expand its brand and reach a younger generation. The Movado Group is pushing a company-wide digital strategy, which can more easily be achieved through social media platforms. The acquisition will help the Movado Group enhance their approach to sales and push the direct-to-consumer approach.
A statement from Movado Group Chief Executive Efraim Grinberg reiterates the company’s approach to the sale:
“the acquisition of MVMT will provide us greater access to millennials and advances our Digital Center of Excellence initiative with the addition of a powerful brand managed by a successful team of highly creative, passionate, and talented individuals.”
MVMT accumulated $71 million in revenue in 2017 compared to $588 million for the Movado Group. From those numbers alone, it’s clear MVMT is a smaller company, but one that’s already expanded into more than 160 countries through e-commerce marketing and sales. Perhaps most surprising is that MVMT has managed to reach this success with only 40 employees. The brand is also run by two founders, Jacob Kassan and Kramer LaPlante, who are under the age of 40. The pair are expected to continue to lead the company upon being acquired.
After the announcement was made on late Wednesday, August 15th, Movado Group stock closed down near 3 percent for the day, but has since mostly rebounded.