Which other challenges await TAG Heuer in the coming years ?
A mechanical replica tag heuer grand carrera cal 36 rs caliper mens watch revolution on the one hand; and ongoing smartwatch technology transfer on the other. From 2017 onwards, around 50 people will begin assembling micro- processors in-house. This will be Switzerland’s first ever microprocessor assembly line, located in a white room in TAG Heuer premises in La Chaux- de-Fonds, where ten or so engineers will be responsible for R&D projects on connected objects. On the mechanical watch front, TAG Heuer is planning to overturn 400 years of watchmaking history by delivering a fundamental innovation, notably stemming from the field of metallurgy. This essential technological breakthrough will be a new milestone that will go down in the history books.
Does the fact of belonging to a group still
Even though we are keen to maintain the independence of each brand, heading up all three enables me to leverage synergies on several levels. Let’s not forget that Hublot is a full-fledged Manufacture that not only produces 20,000 movements and buys just as many, but also produces its cases and composes its alloys. Zenith is of course a historical Manufacture, and tag heuer aquaracer chronograph can1010 watch will produce 120,000 mechanical movements next year, along with 300,000 cases and 500,000 dials. With three production facilities of this quality, this scope and this degree of competency, the synergies are truly colossal! We can also mutualize R&D, such as areas relating to Hublot’s exceptional metallurgy lab. As far as distribution is concerned, we are also seeing that two strong brands can help the weakest one to keep pace.
Watchmaking is facing stiff competition from other fields in terms of the manner of consuming luxury ; how can it maintain its appeal ?
The answer is simple: watchmaking must prepare for a powerful and marked consumer change that will doubtless prove fatal to brands which have failed to grasp its nature. The new consumers in the making are around 20 years old today, and neither their lifestyle nor their habits resemble those we now know. Children no longer follow the path traced by their parents and they affirm their differences far more clearly than in the past. For example, many of them no longer bother to take their driving license ; they have another vision of luxury. Everything that was strong and stable in the past has become unstable. There are sweeping changes and upheavals that we need to observe and understand, while projecting ourselves into this reality. To take the example of an 18-year-old prepared to spend 500 euros for a pair of Adidas or Nike sneakers: what will he buy when he’s 38? The brands unable to make the prospective leap will miss the boat. We are already seeing this in China, where TAG and Hublot were offering products that did not correspond to the perception of luxury among Chinese clients in the 2010s, which was instead based on elegant classic watches. Chronographs were not viewed as a luxury product and our marketing investments were not enough to change clients’ mentality. It took the impetus driven by the Chinese state which instructed major entrepreneurs to invest in sport, and notably in soccer, for changes to occur. Jack Ma, the boss of Alibaba, therefore acquired a 51% stake in the Guangzhou Evergrande football club which won the Chinese league, while the Beijing club was taken over by another billionaire. Jack Ma has built a village of 3,000 apartments with 30 soccer pitches to create the world’s biggest football training school. Player transfers in China have become the most expensive of any football leagues worldwide! Sport has entered a new dimension and the up-and-coming generation is now investing in objects linked to sport, including watches. Young people are now interested in Hublot and TAG Heuer and no longer in the super-slim fake tag heuer aquaracer 300m chronograph 43 mm watches worn by their parents. Adapting to such shifts will be decisive.