New TAG Heuer CEO

[THJunkie]

Mspeedster

Exactly, they're all basically the same kind of strap. So all 4 should either be acceptable for you or not. But you said "All except one", that's why I was curious and confused by what you meant.

The one was the Grand Carrera which is a good cut above the other 4. Apologies if this was unclear. So the acceptance level is relative to that one. They do the job. But are not very satisfying.

 

[Jim Dollares]

Mr_Orange

Ermm, that is almost every brand. Approx 50% of RRP is marketing, sponsorship, brand, etc.

Maybe but there is huuge difference between some brands and the higher up the price ladder you climb the cheaper Tags will feel of course. Tag is not known for excellent finish and luxury movements, its a racing heritage cool design brand etc. To me the differences only become obvious once you hold more brands in your hand. After experiencing IWC, JLC, Glashütte Original, Omega and so on it becomes more and more obvious that Tag (to me) is not a luxury product in the same sense. Just winding a USD 4000 IWC Sellita gives a pleasure I have never felt winding any Tag movement.

 

[Aquagraph]

How is he 25 when he was born in 1992?

 

[Aquagraph]

Jim Dollares

Maybe but there is huuge difference between some brands and the higher up the price ladder you climb the cheaper Tags will feel of course. Tag is not known for excellent finish and luxury movements, its a racing heritage cool design brand etc. To me the differences only become obvious once you hold more brands in your hand. After experiencing IWC, JLC, Glashütte Original, Omega and so on it becomes more and more obvious that Tag (to me) is not a luxury product in the same sense. Just winding a USD 4000 IWC Sellita gives a pleasure I have never felt winding any Tag movement.

It strikes me that there's a huge gap in the market for a product of that quality with a modern design in the sub £10,000 range.

 

[THJunkie]

Ara

Micro: My personal hope is that Heuer's past and present get pulled closer within the heritage line (similar to what they did with the 160th Carrera).

Macro: Would be nice to focus more and streamline the overarching brand identity of TH. Catalog is all over the place.

If he manages that and sales keep up then he’ll have done a great job regardless of age I reckon.

I wonder if he’ll dare split the brand into two like some have hoped for or suggested?

Take the Heuer part slightly upmarket with a touch of modernity and let the TAG part focus on the bling and more innovative stuff?

A dedicated Heuer brand given the deep history - and now using fully “in house” movements - combined with a slight ‘up’ in presentation would surely be untouchable by those who look down in the (combined) brand as a whole?

I suppose the challenge if the ‘group’ also owning Zenith and Hublot makes this difficult if not impossible.

Interesting times and a very challenging time to be taking the help. He’s got his work cut out that’s for sure! Best of luck to him.

 

[THJunkie]

Aquagraph

It strikes me that there's a huge gap in the market for a product of that quality with a modern design in the sub £10,000 range.

Exactly!

It is always the rule of diminishing returns.
A 10k Omega is certainly not 2x the quality of a 5k TH for example.

But I do think there is space to take the tactile feel and finish of the sum of the parts up a notch. Little touches like the smoothness of the pushers, the closure of the clasp, more variation in the finish of the case. That type of thing.

brand image aside (and who really cares about that if they truly love a watch design? - seems a silly reason to buy a watch to be), I’d personally love to buy a Heuer that has the finish quality of an Omega. But maybe that is missing the true heritage of the brand. Maybe it is an expectation of something that actually never was? But since the entire watch industry has changed from selling necessity to desire, then maybe there is a niche. And with such elegant design classics as the Carrera and Monaco, then they certainly have the basis for it. I’m thinking a Speedmaster Racing to the Moonwatch type of interpretation in the carrera. A modern yet slightly more sophisticated interpretation of what was more of an utility piece when it was originally launched. Put the Grand into the heritage Carrera without the Grand label. Priced at the £7k to £8k mark. I’d rather that than some colabs with obscure fashion designers and street artists with gaudy paint jobs or some meaningless sgwigle on the dial.

I think the biggest challenge for any CEO taking over TH is affecting change in a brand that has such a broad range if appeal. Expanding the interest if new customers whilst avoiding alienating the more traditional or price sensitive customers. An incredibly difficult balancing act that will take a lot if finesse and courage to pull off.

If they have faith in the build quality - then one simple step they could take would be to increase the warranty cover. 2 years on a Monaco or Carrera at that price point does not send the right message when some of the competition is giving 5 or more.

Edited: Jun 11, 2020

 

[Aquagraph]

NY Times says he's 23....

 

[Mr_Orange]

Aquagraph

It strikes me that there's a huge gap in the market for a product of that quality with a modern design in the sub £10,000 range.

THJunkie

Exactly!

It is always the rule of diminishing returns.
A 10k Omega is certainly not 2x the quality of a 5k TH for example.

But I do think there is space to take the tactile feel and finish of the sum of the parts up a notch. Little touches like the smoothness of the pushers, the closure of the clasp, more variation in the finish of the case. That type of thing.

Wasn't this the Grand Carrera?

 

[THJunkie]

Mr_Orange

Wasn't this the Grand Carrera?

in some respects, but many of those designs are maybe too modern for what I was envisaging. Certainly they had the tactile and finish quality I’m referring to. Take that and apply it to a more traditional Carrera design and in my book you have a winner. I can’t say how successful it might be overall. But I’d sure as hell buy one or two!

 

[Mspeedster]

Aquagraph

How is he 25 when he was born in 1992?

Like @absolutemustard, I think you're mixing up his brother's birth date. If you google search on Frederic, google brings up Alexandre instead. It's Alexandre who was born in 1992.

Aquagraph

NY Times says he's 23....

According to Frederic's facebook page, he left (graduated?) college in 2018. https://www.facebook.com/frederic.arnault.5
So whether he's 23 or 25, the kid is super young to be a CEO. It would be different if he was some wiz kid and left college to create his own startup, but this is clearly case of nepotism.

Edited: Jun 12, 2020

 

[THJunkie]

Thanks for the correction Mspeedster. I only commented on the age and went with what others were saying.

I think the source if the confusion is twofold.
Sloppy journalism in the original article linked.
When you google his name. Top search is his brother which mentions 28. So easy mistake to make I suppose.

And 23,25 or even 28. all comparatively young to be the COE of a 1bn company. But given his connections not surprising. Can’t imagine he’d be given the chance without either strong confidence in his abilities and/or a very strong mentor team to support him. He has an amazing opportunity and I’m sure we all hope he excels at it.

i’m sure many if us on here would jump at the chance, but when faced with the harsh realities if what it takes to lead and given such a complex and large business quake once the elation/romance of the idea passed. He has a tough job ahead. He’ll be growing up quickly!

bot sure if it is really nepotism. If it were a public body then fair enough. But is it really surprising to out a family member in charge if a (small) family business? Maybe Frederic has been plaguing his father to do it for years as he loves watches and the brand and to shut him up gave in after he’d proved himself elsewhere? Value of TH compered to his dad’s fortune is chump change.

 

[absolutemustard]

THJunkie

I suppose it depends on what it involves. If it involves R&D, increased cost of production in an attempt to "list" the quality perception of the brand - then if it does not pay off, then yes that could be considered a big risk as it would impact margins and reduce revenue. Though I'm sure they could up the per watch strap and clasp budget from $10 a piece to $15 and not break the bank

The new connected deployants are the best I have seen so far. They really are quality. If that is an indication, the future seems bright.

 

[THJunkie]

absolutemustard

The new connected deployants are the best I have seen so far. They really are quality. If that is an indication, the future seems bright.

That is encouraging. I’ll have to examine. Connected does not appeal to me as a concept (neither does Apple Watch for that matter), l but if they are putting new fixtures on those latest releases this does sound like a good step forward.

 

[calibre11user]

Relevant.