Keep On Ticking - Timex Group enters high fashion market

Implications: 1) Good move for Timex to expand it's brand portfolio 2) Will it downgrade Versace and Ferragamo's image 3) Will this upgrade Timex's image in the eye of consumer

Analysis: In my opinion, this is all about branding, design, product development and marketing. 

This is a great move for both Timex and Versace.  Timex can now expand their portfolio and enter into the high end market under a different brand to reap some of that market share.  With their worldwide distribution and manufacturing network, it can grow and promote the Versace watch business substantially.     

There are many cases in the apparel industry where a manufacturer produces both mass merchant and designer goods.  For example, the manufacturer who produces Badgley Mishka intimates also produces Fruit of the Loom for Wal-Mart.  Both products are made well and marketed for their target consumers.   

Since this is not a co-brand product, it should not downgrade Versace's brand image.  I would certainly NOT market Timex as the maker of the Versace products as the consumers are sensitive to brand status.  The 2 different brands should have 2 different operations in R&D, marketing, branding and etc.  

At the end of the day, my opinion is that although Versace is a big name on the runway, a Versace watch is still viewed as a fashion item.  It cannot be compare to Rolex or Cartier with their heritage and legacy as a fine watch and jewelry maker.