Tag Heuer sales buck watch trend
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Tag Heuer sales have soared as the LVMH-owned luxury watch brand defies the downturn in the Swiss watch industry.
And now the company is eying a greater presence in China, undeterred by the routing of the luxury retail market in Hong Kong. It has opened 60 new points-of-sale in Greater China this year.
In an interview with Reuters, CEO Jean-Claude Biver said sales for the brand have risen more than 10 per cent so far this year – and is confident more growth is ahead. That contrasts with a 10 per cent sales plunge just two years ago.
He cites new models and a smart watch for the improved fortunes, with the most growth in the company’s core US$1000 to $2000 price bracket.
Tag Heuer’s remarkable growth has come as Swiss watch exports fell 11 per cent year-to-date.
“For us, China is a country where historically we were not very present, so it is huge opportunity,” Biver told Reuters.
“We are investing massively in China while the others are cutting their investments,” he said.
Questions & Answers
Q.What is the primary reason for Tag Heuer's recent sales increase?
What is the primary reason for Tag Heuer's recent sales increase?
The CEO attributes the improved performance to the introduction of new watch models and a smart watch. Most growth has been observed in the company's core US$1000 to $2000 price bracket.
Q.How do Tag Heuer's recent sales compare to the wider Swiss watch market?
How do Tag Heuer's recent sales compare to the wider Swiss watch market?
Tag Heuer's sales have increased by over 10 per cent so far this year, while overall Swiss watch exports have fallen by 11 per cent year-to-date, contrasting sharply with the industry trend.
Q.What is Tag Heuer's strategy for expanding its presence in China?
What is Tag Heuer's strategy for expanding its presence in China?
The company views China as a significant opportunity due to its historical under-representation there. Tag Heuer has opened 60 new points-of-sale in Greater China this year, investing massively while competitors are reducing their investments.
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