Jean Christophe, ten years have passed since you joined TAG Heuer. What were your impressions when you first got there?
When I became President and CEO of TAG Heuer, I had no experience whatsoever in the watch world. However, I always liked watches, and for me in this business TAG Heuer was the most attractive luxury brand, because it has a unique and balanced mix of innovation, tradition and modernity. Since the company at that time already held rather strong positions and could develop and grow faster than its competitors, I decided to accept the challenge and change my job, lifestyle and country!
For ten years, I noticed that, like everything in life, the world of watchmaking has changed - from manufactory design and production to how we sell and what we buy today. For the most part, this world has become more professional. First, computerized design research and visualization should be mentioned. In addition, the production process today is fully automated. Watch manufactories know well how to sell and what to buy. As for me personally, I may have become more in love with my business and this brand than it was at the beginning, because every day I learn firsthand "what the TAG Heuer brand is really made of."
What do you think sets in motion and allows the development of the TAG Heuer brand?
Passion for precision and performance. The true secret to the success of the TAG Heuer brand is not only the fact that its products are preferred by world-famous sports and movie stars, but also by lesser-known artisans and engineers. It also lies in modern workshops and laboratories of the brand, where absolute devotion to quality and work, bordering on obsession, prevails. Albert Einstein once said: "If at first the idea is not absurd, then there is no hope for it." TAG Heuer takes these words to heart with these words. Only the ability to conquer new heights and overcome uncharted difficulties helps the design team to be innovative and progressive. These innovations are constantly rewarded with universal recognition and commercial success.
How has the business been developing for the company over the past two years?
Of course, some influence on us, and on any other Swiss watch manufactory, was exerted by the world recession. And this is despite our presence in 120 countries and the leading position that we occupy in many markets as manufacturers of chronographs, that is, as a brand with balanced geographical risks. Since we were not able to increase sales in 2009, TAG Heuer focused on increasing its market share. We were able to increase it by 17%, which means pure leadership. Each of our products plays its own role in the assortment of company products and is created in accordance with the wishes, needs and budgets of our customers. That is why we do not intend to switch to mid-range prices.
What are your forecasts for the luxury market, especially on a global scale?
Luxury market trends are emerging slowly. Today, people try to own or reuse luxury items for long years, rather than several months. Consumers are beginning to better understand the relationship between value, quality and design. In addition, they now buy much less than before, so when purchasing each luxury item, they carefully analyze whether they need it, preferring to buy more and better for less. In terms of capabilities, the watch industry is now more than ever, innovative, high-quality, consistent and sustainable.
Please tell us how the brand in the Middle East market feels.
As an international brand, we are present in 120 countries. We are entering new markets, given their maturity, size and potential. Some markets need to generate cash, others growth in the short and long term. Russia and the CIS countries are among the five main markets for our company.
As for the Middle East, this region is certainly one of the key markets for TAG Heuer, and if we want to achieve 6-10% of total sales here, we must grow faster than in other regions of the world.
Then what is your strategy for the further development and growth of the brand in the region?
Our regional office is based in Dubai, and our subsidiaries operate in all countries of the Gulf Cooperation Council, the Levant and Egypt. Recently, our portfolio has added branches on the islands of the Indian Ocean basin, as well as in Turkey and South Africa.
As for the strategy for further development and growth in the Middle East, now we are focusing on the principle of “pull-and-push”, that is, expanding the sales presence on one front and increasing the advertising presence on the other. By the end of this year, we plan to open two new branded boutiques - the second boutique in Iran, in the Milad El Noor shopping center, and the first in Saudi Arabia, which will be located in the Al Khobar district, in the Rashid shopping center. In addition, starting in October 2011, TAG Heuer launches its first television campaign in the region that targets English-speaking Arabic-speaking potential customers and friends of the brand.
Let's talk about the latest TAG Heuer, which appeared this year.
First and foremost, TAG Heuer is well known worldwide for its exceptional quality, avant-garde design and best prices. This year we have created new types of high quality products with a unique design at very attractive prices.
In more detail, this is a new collection for men "Link", which will go on sale at the end of the year. Its design was completely redone, more avant-garde and elegant elements were added.
Secondly, to celebrate our 150th anniversary, we developed the new Carrera collection, called the Carrera Heritage. It retains all the elements of the "golden age" of the watchmaking industry: "blue hands", the texture "flinque" on the dial, vintage minute hands, as well as the company’s own movement mechanism - Carrera 1887. Thirdly, we launch new types of products from the haute horlogerie line, including manufactory timepieces such as Monaco V4, Silicon Nitrite and CARRERA Mikrograph in pink gold, which reflect a hundredth of a second! Finally, we continue to replenish our collection for ladies, launching four new models of the “Formula 1 Steel & Ceramic” series with diamonds.
You are known for your love of sports and high speeds. How do these hobbies help you understand your brand philosophy?
I have always been and am a fan of expensive sports watches. In addition, since childhood, I have been fond of motorcycle racing and beautiful high-speed cars. Since my father first took me with him to the endurance race of 24 Hours of Le Mans 1972, I have become an avid fan of motorcycle racing and Formula 1 racing.
This is an extreme extreme in terms of technology, execution, teamwork and spirit. Let's not forget about the romantic halo that hovers over the racetracks. I believe that racing is a unique thing, since everyone demonstrates the latest achievements of modern technology, human talent and the highest level of determination. This is exactly what we are modestly trying to achieve at TAG Heuer workshops in Switzerland.
You once said that "TAG Heuer is a bold brand." Why?
Definitely, TAG Heuer is a bold and bold brand, because we love to challenge, to conquer unknown peaks in watchmaking, to which no one dares. In addition, we respect the traditional watchmaking, its prevailing canons and traditions. The creation of our legendary MONACO V4 watch was made possible due to the fact that we respect the classic tourbillon so much that we had to create our own complex tourbillon in the TAG Heuer style. In general, the taboos existing in watchmaking are always new opportunities for us.
Our watches have true and reasonable value. Nevertheless, we still have many unexplored "deposits" and new discoveries. The recent success of Mikrograph and Mikrotimer is a prime example.
You have led TAG Heuer for 10 years. What are your plans for the next decade?
We will continue to position the brand as the best in terms of chronograph production. In addition, we will continue to invest in the creation of unique watch movements, such as, for example, our new branded 1887 caliber chronograph, as well as exclusive and unmatched watches, such as “Monaco V4”, “Mikrograph” or “Mikrotimer”. Our efforts will also be aimed at creating exceptional and exclusive products for women, this is an area where we have not yet conquered all the peaks.
Jean Christophe - You are the father of five children. How do you manage to devote proper time to both work and family?
This is a question of organizing your day and the ability to properly prioritize. In my free time, I like skiing, sailing, diving, sometimes attending Formula 1 races held on the racetrack in Barcelona. This is a fantastic and necessary way to relax and enjoy your leisure time. I need sports to relieve stress. Of particular importance to me is the time I can spend with my children. It is priceless.
If you were offered to wear a watch of some other brand, except for TAG Heuer, what would you choose?
I think it would be a Zenith watch, because I really like the "El primero" clockwork.
Thanks for the conversation, Jean Christophe. Until new meetings and success to you.
