TAG Heuer has always liked to position itself as being different from other watchmakers. They are now striking out again with the development of their own smart watch rather than following the lead of other companies. This ‘connected’ watch is an indication that they don’t shy away from change. Their main influence in this positioning is JeanClaude Biver, the company’s new CEO.
The Future Direction
TAG Heuer is definitely looking to the future of watch development with the announcement of their plans for the mechanical watch range. They want to make their own niche in the sector with a point of differentiation from others in the market.
Some industry experts believed that Mr Biver’s arrival would signal the brand going more downmarket, with a drop in prices. However, instead of this, his leadership is now taking the brand in new and exciting directions. Whilst they’re following this path, though, they are still developing the main focus of their business in order to retain their long standing and loyal customers.
Innovative Areas
The announcement of their Tourbillion chronograph watch shows how the company wants to be more innovative, but at the same time they need to continue to launch competitively priced products. They have managed to bring the development of this line in at a good price by manufacturing elements themselves and not relying on expensive components. As well as focusing on the physical manufacturing side of the watch, TAG Heuer has also examined the actual production process. They have taken steps to make the system more efficient, which has helped to generate greater profits. When the watch goes on sale, it will be priced at under 15,000 francs.
Redesigning a Classic
One of the key elements of the TAG Heuer range remains the Carrera, which is loved by many customers across the globe. They wanted to redesign the watch to make it more suitable for the 21st century but at the same time focus on what customers appreciate about the model.
In order to do this, they have used a modular construction method, with cases that are made inhouse. This has enabled them to make the production process more costefficient, but they have maintained the original look and feel of the watch. It also has a new movement which has been adapted from the 1887.
Understanding the Market
A main reason for TAG Heuer’s success in maintaining and improving sales is that it understands the market for its products. They then target these products at a price point their customers can afford. The brand focuses on key price brackets rather than investing heavily in a range that is expensive and will sell relatively few units.
More Efficient Operations
TAG Heuer is also benefiting from an improvement in efficiency levels across the business. They have utilised fewer movements within the infrastructure system, which means that ideas and initiatives get agreed faster and can be put into production sooner.
All of these elements, combined with an innovative product calendar, should see TAG Heuer further consolidate their position in the market over the next few years. They have a solid brand plan and understand exactly what their customers are looking for.