But that makes no sense, the article says TAG has double digit growth thanks to increased prices. Clearly it seems to be a very wise business decision to move into the luxury space and keep increasing the prices.
The way prices were rising at the start of last year ('22), I had already decided my next new watch would not be a TAG. Just too many better alternatives for the money (IMHO). Also, pre-owned or vintage is where I was looking for TAG Heuer/Heuer. Then they came out with the Panda and I couldn't resist. But now I'm back again to my previous stance. Perhaps this new strategy will garner TAG new customers, but I'm afraid it may also alienate some of us long time fans.
Perhaps there is something of the Lance Stroll syndrome at work here. TAG Heuer must be seen as a success while Frederic is there, otherwise it undermines his position
I can't see me moving away from TAG, but I will probably not buy new anymore.
Why would I pay £2200 for a quartz Gulf F1 when I can pay (for example) £1600 for a mint SLR Calibre S with a two year warranty from WF? Can you imagine how much a Calibre S SLR would cost if it came out now? £3500 I'm guessing.... judging by the Solargraph prices.
Perhaps this new strategy will garner TAG new customers, but I'm afraid it may also alienate some of us long time fans.
The basic premise of a successful business is increase sales. This has to be done by maintaining you present customer base, while adding new customers. Alternately, you target a bigger volume of new customers while risking losing existing ones - which will still give you higher sales. I suppose TH is following the latter strategy. They know that the brand loyalists are not in the FOMO category and don't care about buying at retail. So rather focus your attention to the rich fat ducks.
The article says that TAG hasn't increased their sales volume, that it's basically flat. The added revenue growth has come from the increase in prices. Seems like a short term tactic, rather than a winning long term strategy to me.
However, the article also mentions that TAG has drastically reduced their point of sales, while increasing their own mono-brand boutiques. I think this strategy is working to some extent. The boutiques can greatly improve the customer experience. I've personally experienced this and it does make one feel more inclined to pay full retail at a boutique when given the VIP treatment. OTOH, I miss the days of an easy "Friends & Family" discount from Macy's, as this is the kind of AD that TAG seems to be getting rid of. Fewer discounts, greater profits.
