New heritage director at TAG Heuer

bpsmith
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Mspeedster Mspeedster
"Successful" was actually my choice of words. LOL
I don't recall Frederic's exact wording, his statement was about which line has the highest sales. His answer might very well be based on overall revenue vs. unit volume.

Regardless, I go back to this statement, which you so aptly pointed out.
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If TAG Heuer's end game is to be seen as on par to Rolex & Omega, as Nicholas eludes to at the start of the article, things need to change. I don't see how the quartz F1 line can remain as is. They either need to axe the line or take it further upmarket (e.g. H02 Fragment F1).

I question whether the Quartz F1 is such a volume leader because I frankly feel it's too expensive and not a good value for what one gets. At $2000 a pop, there are so many other better options for the money (IMHO).

Opinions are great, this place would be genuinely boring if we all agreed, however, I don鈥檛 disagree with any of the above. 馃榾

I do think the F1 will be dropped at some stage, but not before they鈥檝e milked it and moved the other lines upmarket enough that it makes financial sense to full on switch to higher priced lines.

I say higher prices rather than higher quality, as they only appear to have put the prices up so far, rather than making any real attempts to pump up the quality. They need to work on the latter to properly transition.
 
Aquagraph
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I think the Carrera needs more new models because the Carrera is probably more aimed at repeat business, the F1 is probably only a one time buy... ideally your buyer starts with an F1, then an Aquaracer, and then once he's matured enough to appreciate a 39mm watch he gets a glassbox.

I think maybe the current F1 lineup is so static because to the customer it all still seems new.
 
bpsmith
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Mspeedster Mspeedster
By this logic, the Link must also be a winner for TAG. 馃檮

The only model that can get away without change is the C11 McQueen. Because like the Moonwatch, it's the icon for the company. People buy it because they want it to look like the one Steve wore. 馃槈
It鈥檚 lost on me why anyone would want to buy a watch just to think that they look like someone who wore said watch just because he was paid handsomely to do so. Not knocking what others choose, or their reasons why, but I personally just don鈥檛 get it as said before.
 
Aquagraph
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But, maybe the F1s days are numbered?
There hasn't been a women's F1 for a good few years which is odd to me because not offering a good selection of quartz watches to women seems like a bad choice. Historically women prefer quartz, and while the Swiss companies are marketing automatics through the ladies glossy magazines I wonder how excited they really are about having to wind them and look after them, instead of just throwing on a quartz?
So maybe they are thinking of getting rid, but at the moment it's still too successful to drop. When I talk to ADs they usually tell me its the F1 that sells most commonly, which makes sense.
I wouldn't be surprised if the Carrera was the biggest seller by 拢, you could sell say 5 Carreras that would bring in as much cash as 60 F1s.
But if they did dump the F1, that means they would basically have 3 watches: Aquaracer, Monaco, Carrera and the Autavia I guess (which is basically a Carrera). Oh and the Link, as if anyone believes that has any life left in it going forward...
 
Aquagraph
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I think the Carrera needs more new models because the Carrera is probably more aimed at repeat business, the F1 is probably only a one time buy... ideally your buyer starts with an F1, then an Aquaracer, and then once he's matured enough to appreciate a 39mm watch he gets a glassbox.

I think maybe the current F1 lineup is so static because to the customer it all still seems new.

Think how we get people turning up here who've just bought a new bog standard blue Formula 1 that's been in the catalogue for 7 years all excited over their new watch.
 
bpsmith
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Which is why they need to significantly up the ante if they are to achieve their upmarket goal.
 
Aquagraph
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Let us not forget that LVMH dropped the F1 when they bought the company, it was out of the catalogue from 2000 until 2004. And are we not led to believe that the company are making a Moonswatch type F1? Why would they do that if they were going to drop the F1? Why shine a light on their plastic past?
 
bpsmith
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I just don鈥檛 think it fits with their own view of the brand. If they are to achieve this alleged intention of going upmarket, then the F1 doesn鈥檛 fit.

Reality suggests they will end up keeping it, or dropping and reintroducing, whilst continuing with pushing prices up on everything else.
 
Aquagraph
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Well it's true that making quartz watches is a bit of a faux pas if you want to be considered a luxury brand, but then so is putting cheap auto movements in your expensive watches. I wonder if TH are really ready to surrender their 'entry-level' market share?
 
Mspeedster
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Think how we get people turning up here who've just bought a new bog standard blue Formula 1 that's been in the catalogue for 7 years all excited over their new watch.
And how many of those did people buy second hand or via grey market, asking if it's authentic? 馃槜
 
Jim Dollares
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Getting rid of the F1 would be insane in my opinion. Formula 1 as a motor circus is more popular than ever, what a golden opportunity to have a series of watches named Formula 1 while also being one of the main sponsors of the current best F1 team and having video and photos showing the current two top drivers wearing the watches.

Why would they need to drop the F1 line as entry level if their new focus price point is 10-20k? Simply price the F1 line around 6k and it will appear very affordable and within reach for many to buy into a desirable brand. It will be what A class is to Mercedes, people buy the A class because it makes them feel cool being able to almost afford a proper Benz, people don't care that it is powered by a Renault moped engine, they just want be part of the glorious branding of Mercedes-Benz. I think psychologically a 6k F1 can work in the same way, people who can't really afford the brand can save for a while and buy the cheapest one. This makes them feel good and they feel that others believe they are important, they find their self value in the branding.

I believe many luxury brands use this strategy of having some items that are cheaper, still expensive, but cheap in comparison, allowing the masses to buy into the brand. Kind of like how low income people buy a t-shirt that has a huge Hugo Boss logo all over the chest just to show people around them that they are "part of the luxury club".
 
Aquagraph
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Yeah I was also thinking that they could keep the F1 but make them all Calibre 16.
 
bpsmith
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Will be interesting times ahead, as a lot of the above is both absurd and plausible at the same time.
 
Gene242
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Jim Dollares Jim Dollares
Getting rid of the F1 would be insane in my opinion. Formula 1 as a motor circus is more popular than ever, what a golden opportunity to have a series of watches named Formula 1 while also being one of the main sponsors of the current best F1 team and having video and photos showing the current two top drivers wearing the watches.

Why would they need to drop the F1 line as entry level if their new focus price point is 10-20k? Simply price the F1 line around 6k and it will appear very affordable and within reach for many to buy into a desirable brand. It will be what A class is to Mercedes, people buy the A class because it makes them feel cool being able to almost afford a proper Benz, people don't care that it is powered by a Renault moped engine, they just want be part of the glorious branding of Mercedes-Benz. I think psychologically a 6k F1 can work in the same way, people who can't really afford the brand can save for a while and buy the cheapest one. This makes them feel good and they feel that others believe they are important, they find their self value in the branding.

I believe many luxury brands use this strategy of having some items that are cheaper, still expensive, but cheap in comparison, allowing the masses to buy into the brand. Kind of like how low income people buy a t-shirt that has a huge Hugo Boss logo all over the chest just to show people around them that they are "part of the luxury club".
Aquagraph Aquagraph
Yeah I was also thinking that they could keep the F1 but make them all Calibre 16.
Aquagraph Aquagraph
Yeah I was also thinking that they could keep the F1 but make them all Calibre 16.
Aquagraph Aquagraph
Yeah I was also thinking that they could keep the F1 but make them all Calibre 16.
I wouldnt go that far, there still is a crowd that doesn't like the busyness of chronographs...my 2 cents, th 50, cal 5 and 16 ,

i had people love the F1 sportier design but being quartz was a non satrter but TAG is sending less and less F1 to boutiques but it hasnt slow intrest, just drove customers to outlets and grey market dealers who surprisingly has a whole lot of F1
 
RushDom
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This brand is becoming a total mess. Smartwatches! Crappy Hublot rip offs! Dainty heritage inspired Carreras! Kind of (but not really! limited edition pieces! Cheap Formula One watches with bargain basement Ronda movements! 拢500k diamond Carreras! Eco-Drive solar movements in a 拢2000 suit!

Mario Kart!

I give up.
 
Aquagraph
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I get the feeling that maybe the Connected isn't quite the cash cow it was. From what I heard when a new one comes out it sells great but then it goes off the boil. Which probably makes sense.

I feel like the Monaco is the one that is bought by a small number of people over and over again.
 
bpsmith
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How often will someone buy a Monaco over 拢9k though?
 
Aquagraph
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Well, less people than would buy them at 拢6000 that's for sure.

It feels like all these watch companies are chasing the same customers.

But, I have to say. On the one hand people here moan about the prices going up, but on the other those same people buy multiple watches per year. We know some people here have said they have a watch budget, if you have 拢20,000 TAG would rather sell you 2 watches than 4, but take the same amount of money from you.
 
bpsmith
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Absolutely. It makes perfect business sense as long as it鈥檚 sustainable.

If people just continue to buy, like it appears is still currently the case, then it鈥檚 certainly sustainable in the short term at least.
 
Aquagraph
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Yeah, I mean the sort of consensus is that if these companies charge too much people will stop buying. Or that when the money gets tight people will stop buying. Doesn't seem to be working like that, does it? Maybe there's a day of reckoning coming? But then during COVID people went mad buying watches...
 
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