President of the watch division at LVMH , CEO of TAG Heuer, Chairman of the board at Hublot and overviewing Zenith, and how challenging is it to wear the many “hats” to look after this massive portfolio and what are the objectives you aim to achieve?
TAG Heuer, Hublot and Zenith are quite different in all aspects. Different in products, prices segment and all three have completely different DNA. All this makes it easy to differentiate them and to keep their identity and DNA. Hublot has a very clear message: “The Art of fusion” bringing tradition and innovation together. Zenith is a very traditional brand and a hidden diamond that we have to shape for the light to come out. It’s a phenomenal brand, but still totally unexploited. By contrast, TAG Heuer is avant-garde, with technology, design, materials, and even a connected watch. TAG Heuer is very strong in the price range of CHF2,000-5,000, – the very best and unbeatable price relation for the quality offered! At the end, like an orchestra’s conductor, I make sure that all the different instruments play in harmony.
In your opinion, what struggles the Swiss luxury manufacturers are facing today, and how do you assess the watchmaking industry?
The Swiss Watch Industry is very well positioned to double its turnover by 2030. I see big growth for watches among the new generation, thanks to the promotion done by the computer companies with their connected watches. And I also see big growth in the accessible luxury watch segment made for the middle class. I believe that among many elements, probably the most important one is the reputation and credibility of the Swiss Made. The Swiss industry have maintained quality, reliability, accuracy, service, innovation, R&D, investments and strong distribution and marketing networks for decades. Thanks to these cumulative efforts, they have been able to increase the importance and dominance of Swiss Made in the luxury segment where my brands are.
What do you think customers are looking for nowadays?
Good value for your money. Quality, reliability, innovation, service and prestige or status symbol.
What caught your attention at SIHH and BaselWorld this year? Did you see any novelties or the majority were just repetitions and enhancements?
I am very excited by the new materials and there is happening so much in the R&D of new materials. Developing new materials, ultra-light weight performances – even for the movement – will also lead us to new properties and new colours of a watch. In metallurgy you have incredible inventions every month. It is a very active field as it is the base of many industries. I hope we will invent one day the transparent metal….(imagine an ultra light transparent 18K gold watch).
TAG Heuer this year had a new communication message “Don’t crack under pressure”, what was the reason for this sort of re-positioning and appealing to a younger customer?
TAG Heuer logo and statement says: “Swiss Avant Garde since 1860” which means that we have to be connected to the future and to the young generation. That’s where TAG Heuer has build its success and that’s where we have to concentrate our efforts and investments. We are not giving up the upper segment, but are putting more efforts and innovation in our core business which is the more affordable luxury for younger generations. It’s an important market, because 1) it is a big market and beside this, 2) it is the market of tomorrow. As a consequence you have a double effect if you address to the “under 30”. You speak to those who can already be your customer and you speak also to those who might become your next customers. To speak simultaneously to your “customer of today” and “customer of tomorrow” is certainly the most profitable strategy for your communication expenses.
Can you name some faces you’d like to have as potential friends of the brand?
I don’t know yet! We have to talk in a language that is understood by the new generation. We have to adapt our communication and message to the customer. This is the reason why TAG Heuer has chosen Cara Delevigne, Cristiano Ronaldo or David Guetta and Garrix as brand ambassadors. Because they speak to this young generation and has credibility among them. Yes, we will definitively come out with new partnerships according to our communication platforms which are:
a)Sports, b)Art, c)Lifestyle, d) Swissness.
In addition to this first segmentation, I also choose the ambassador according to his relation with the brand. An ambassador that has just a business relation with us, is not worth keeping or selecting. The human relation is as important as the business relation.
As a president of the LVMH watch division, can you give us an idea on the performance of the group’s brands, and in specific TAG Heuer.
My vision is clearly and simply for what TAGHeuer stands since ever: “Swiss Avant Garde since 1860” We have to be in the front of innovation and creativity. We must continue to be the trendsetter and never be a follower. The brand is strong, and remains the most important pillar of the LVMH watch portfolio.
What’s in the pipeline for TAG Heuer for the Middle East and Globally?
TAG Heuer has strongly developed its retail presence in the Middle-East in the past few years. But the region is still less than [15%] of our turnover which shows how much growth potential we have in the region. From that point of view, it is certainly an advantage or an opportunity at least. Arab clientele have a great taste for fine watches, they are connoisseurs and they have been loving watches for more than two centuries. We still have a very important “catch up” program to achieve, and we are however looking for quality distribution, service and sales rather than just turnover.
How do you think the industry is heading with the smart watch technology?
It might split the industry in two. On one side the “eternity” heritage from the Art of making watches, which are watches that will be working and be repairable in 1000 or more years! And on the other hand, we might have the “obsolete” which are all the technology watches born from an industrial process and condemned to become obsolete when the process is changed or improved. Those two trends, eternity and obsolete, will never compete one against each other, but are rather complementary. As TAG Heuer, we couldn’t ignore the trend of the smart watch. It’s an opportunity for us and we must adapt to the tastes of a younger generation. Especially as we have an entry price into our luxury brand around 1’200 $. The brand claims to be “Avant Garde” since 1860. Considering this and considering our core range, we believe that we are best positioned to enter the connected watch.
For TAG Heuer, what’s the strategy you adopt to stay ahead of competition?
However successful a brand might have been, it always will need from time to time an adjustment in order to stay connected to its DNA and message. We are not doing anything different than this, just giving more input, more creativity, more innovation in our core business. TAG Heuer’s main business and leader price segment has been around 3’000$ for the past several years. One can conclude that the core business of TAG Heuer has been in a range from 2’000$ to 5’000$. It’s only in a recent past, that the brand has done major efforts in products, innovation, creativity and advertising in the 5’000$ + price range. We will maintain the development in the +5’000$, but will again devote more than 60% innovation, creativity, products and communication in our core business range. What we are doing is a shift back to basics and to the core business where we are leaders and want to reinforce our leadership.
How do you spend your free time?
With my family.
What’s your personal motto?
I always try to be “First, Different and Unique”. Any project, product, concept or idea that comes to me, it must fit to those requests. It must be the first, it must be unique, it must be different. If you have passion for your job, you will stay connected 24 hours to your passion. Whatever you see, whatever you hear or whatever your dreams at night are, you are constantly connecting them to your job and that’s mostly how I get my inspiration. It can come during a Marathon, but also during a nap in Summer Time in St. Tropez. Innovation, creativity, passion are a permanent stage which like Love never leaves your brain, your heart and your blood.
If you were to give an advise to a customer when investing in a watch, what would it be?
To be guided for what you like first, and not only a financial investment. Watches are about emotion.
TAG Heuer in 3 words?
Best value in prestige, quality and innovation for money
Interviewed by Lara Mansour Sawaya
