TAG Heuer move to focus on lower-priced luxury watches
TAG Heuer move to focus on lower-priced luxury watches
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SVS

Original Poster:

3,824 posts

302 months

Monday 8th September 2014
quotequote all
As reported in A Blog to Watch, TAG Heuer will move to focus on 'entry level luxury' watches. It was reported as being an attempt to regain the popularity TAG enjoyed during the 1990s.

It's also going to put even more emphasis on its sponsorship of 'brand ambassadors' who are sportspeople, such as Ronaldo. So now you know where your money's going smile

As TAG moves down in price, Christopher Ward moves up. Maybe they will meet in the middle smile

Edited by SVS on Monday 8th September 10:05

TobyLaRohne

5,793 posts

237 months

Monday 8th September 2014
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I'd always considered TAG a lower-priced luxury watch, pretty much just above an expensive Seiko and just below Omega.

SVS

Original Poster:

3,824 posts

302 months

Monday 8th September 2014
quotequote all
Some of us would consider an expensive Seiko to be better than TAG. I doubt many TAG divers could match the quality of a Seiko Marine Master, for example.

That's before getting into whether Grand Seiko is better than Omega rotate

dom9

8,677 posts

240 months

Monday 8th September 2014
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Seems to be admission that they can't move upmarket as they have clearly tried to with all their price increases. I simply can't understand the price of some of the Tags now!

Anyway, they have the likes of Zenith etc under their roof - so why even try?

This could very much be a return to form for them! I still have 2 x 90s F1 Chronographs, which were the watch of my youth!

Good luck to them, I say - Would be nice to have some more choice in the mid-level bracket and this may rebuild their reputation as people won't expect so much of them when they're not trying to keep up with the likes of Rolex and Omega.

SVS

Original Poster:

3,824 posts

302 months

Monday 8th September 2014
quotequote all
dom9 said:
This could very much be a return to form for them! I still have 2 x 90s F1 Chronographs, which were the watch of my youth!
Yes, let's hope it is a return to form at last! Those early F1 watches were great: avant guard style and colours, without being over-styled like some of TAG's recent versions of its F1 (Grande Date Chronograph, anyone?). The 80s and 90s F1 watches seemed to have quite a cult following.

marcosgt

11,506 posts

207 months

Monday 8th September 2014
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I wonder if there'll be a move to relaunch Heuer as a separate brand, to support the classics like the Monza and Monaco?

On the other hand, an 'entry level' price Monaco would be nice biggrin

M.

Miguel Alvarez

5,185 posts

201 months

Monday 8th September 2014
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It's interesting. Wonder what will happen with the existing models? Can't see them slashing the prices of the high price pieces.

yeti

10,697 posts

306 months

Monday 8th September 2014
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dom9 said:
Anyway, they have the likes of Zenith etc under their roof - so why even try?
This ^^

Much like the Swatch group, LMVH will 'tier' their brands rather them all trying to steal sales from other other, like Richmont seem to try and do!

TAG is entry, Zenith is premium; think Hamilton -> Omega -> Breguet for the Swatch group.

SVS

Original Poster:

3,824 posts

302 months

Monday 8th September 2014
quotequote all
I agree with Yeti that LVMH is tiering its brands. What's interesting about this is that LVMH, unlike most other companies, chose to avoid this until now. LVMH was known for letting the managers of each brand get on without central interference (something considered highly unusual, given the risk this runs for brands cannibalising each other's sales).

LVMH had taken this approach because it empowered its staff to be creative, which it considered more important in luxury goods than the risk of cannibalising sales.

In short, this is a big change in LVMH's organisational culture and management approach.

Edited by SVS on Monday 8th September 16:48

yeti

10,697 posts

306 months

Monday 8th September 2014
quotequote all
SVS said:
In short, this is a big change in LVMH's organisational culture and management approach.
Indeed; but giing for the Swatch angle rather than Richemont. If they're 'tiering' them, expect some aquisitions... although there isn't much independent well-known stuff left to buy! Riolex and Patek certainly aren;t going to be bought out!

Chopard for the top tier? I do hope not, the family won't let it happen.

Variomatic

2,392 posts

192 months

Monday 8th September 2014
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The potential problem with this as a "return to form" is that their '90s form was to build well made watches with good movements at sensible prices. The ETA 955 series was their standard - fully repairable, well finished for a production line movement, and plenty of parts availability.

Any move downmarket now is unlikely to use anything like that - see the throwaway crud that Tissot fit for examples (movements rivetted together so repair simply isn't possible frown )

michael gould

5,698 posts

272 months

Monday 8th September 2014
quotequote all
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........looks like LVMH have realised that the Lemmings who buy them have finally heard the penny drop......they are vastly overpriced

DUMBO100

1,878 posts

215 months

Monday 8th September 2014
quotequote all
So what happens to the price of used Tags then? I quite liked that square chrono one and had seen them lightly used for £2300. Is it a good time to bag a bargain?

SVS

Original Poster:

3,824 posts

302 months

Tuesday 9th September 2014
quotequote all
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........
TAG isn't alone. IWC's CEO Georges Kern said as much.

Many watch companies are largely marketing machines. They peddle lifestyle stories, using astronomical advertising budgets, celebrity 'brand ambassadors', sponsoring sports like the Olympics and Formula 1. Plus consumers equate high price with high quality.


michael gould

5,698 posts

272 months

Tuesday 9th September 2014
quotequote all
SVS said:
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........
TAG isn't alone. IWC's CEO Georges Kern said as much.

Many watch companies are largely marketing machines. They peddle lifestyle stories, using astronomical advertising budgets, celebrity 'brand ambassadors', sponsoring sports like the Olympics and Formula 1. Plus consumers equate high price with high quality.
totally agree.....it's the same with all watches including so called posh stuff like PP, VC,AP ........but modern TAGs are the ultimate in overpriced, overhyped crap. and people still buy them !!!!!

epom

15,056 posts

192 months

Tuesday 9th September 2014
quotequote all
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........looks like LVMH have realised that the Lemmings who buy them have finally heard the penny drop......they are vastly overpriced
Can I ask, what exactly is dishonest about them?

marcosgt

11,506 posts

207 months

Tuesday 9th September 2014
quotequote all
epom said:
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........looks like LVMH have realised that the Lemmings who buy them have finally heard the penny drop......they are vastly overpriced
Can I ask, what exactly is dishonest about them?
They always lie about the time biggrin

M.

Eleven

28,176 posts

253 months

Tuesday 9th September 2014
quotequote all
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........looks like LVMH have realised that the Lemmings who buy them have finally heard the penny drop......they are vastly overpriced
I own one TAG which I bought new in 1992. In terms of reliability and durability it knocks all my other watches into a cocked hat.


MLC166

70 posts

206 months

Tuesday 9th September 2014
quotequote all
epom said:
Can I ask, what exactly is dishonest about them?
Correct me if I am wrong but did Tag put part of a Seiko movement in their watches and this really upset people at the time. If it says Swiss the last thing you would expect is a Japanese movement inside your expensive 'Swiss' watch.

michael gould

5,698 posts

272 months

Tuesday 9th September 2014
quotequote all
Eleven said:
michael gould said:
TAG make dishonest watches and try and sell them at mind blowingly expensive prices .........looks like LVMH have realised that the Lemmings who buy them have finally heard the penny drop......they are vastly overpriced
I own one TAG which I bought new in 1992. In terms of reliability and durability it knocks all my other watches into a cocked hat.
I should have said, modern day TAG's (since LVMH purchased them ) .....apologies...... yours is probably a very well made watch hence it's reliability ..........modern ones break on a regular basis unless you don't wear them then they seem to be fine ..........with regards to dishonest ......they are purporting to be high end quality time pieces which they are not.........£200 watches being sold at £2000

Edited by michael gould on Tuesday 9th September 15:20