Read this:
https://www.bloomberg.com/news/arti...connected-watch-is-purely-additional-business
"The smart watch is additional business, and it increases our consumer base.” In fact, the connected watch business nourishes the mechanical business, according to Arnault: Some people who start with a smart watch go on to buy mechanical TAG Heuer watches.'
The concept is very similar to the 70s strategy of the ASUAG-SSIH (later SMH, later Swatch-Group) with the development of the Swatch to gain shares in the quartz watch market. The big sales of the Swatch saved the whole mechanical watch industry, Omega and all the other high end brands of the later Swatch group included.
But maybe it would be better for LVMH to create a new brand for the connected watches, in order to keep its other watchbrands from attacks from mechanical watch purists. Yet brands like TAG and Hublot are standing for Innovation, and this will always be something difficult for the traditionalists.