Are luxury watch brands shifting to smart watches?

Several luxury watch brands have dipped their toes into smart watches recently as the popularity of connected wearables continue to surge. Among the most notable labels are Germany-based watch and jewelry specialist Montblanc, which a few months back launched the Montblanc Summit, the first-ever smart watch fitted with a curved sapphire crystal glass touchscreen, and Swiss watch giant Tag Heuer, which last year released a $1,500 Android-based wristwatch called the Tag Heuer Connected.

Even France-based Louis Vuitton, known more for its luxury handbags, has unveiled last month the Tambour Horizon, a smart watch that pairs with an exclusive travel-centric app that informs wearers of important flight details, and provides tips and recommendations on hotels and restaurants.

Industry experts, however, do not see these moves representing a major shift of Swiss watch brands to smart watches.

Fueled by older millennials and younger Gen Xers, who are becoming more interested in keeping track of notifications and their health using a device strapped to their wrist, smart watches are designed for people who do sport. According to analysts, most of these products have a life span of about six to 12 months before a new set of features and innovations render the watches obsolete.

Swiss watches, in contrast, are considered emotional products meant to last for generations. François Thiébaud, president of Swiss watch brand Tissot believe that owners often treat these watches like a piece of jewerly."The first watch you ever received, you never forget. You don’t usually keep the first smart watch you get," he said at the recently concluded Baselworld fair.

But analysts believe that sentimental value alone is not enough to trigger a revival of the Swiss watch industry. Even though, the Federation of Swiss Industry reported an increase in export sales in the top five markets to open the year, pushing up overall revenue after 20 consecutive months of descent, exports continue to decline on a yearly basis.

The smart watch market, however, is not are not faring any better. After outpacing exports of Swiss watches for the first time to close out 2015, shipments of smart watches are on a downturn, dropping by 51.6 percent year-on-year in the third quarter of 2016, according to data gathered by global market intelligence firm IDC.