TAG Heuer ignites passion with competitive prices

Established in 1860, TAG Heuer has come to be known as the king of chronographs with a total of 103 boutiques worldwide. The Swiss luxury brand is dynamic and versatile, making its own rules, choosing its own path, never stops moving forward, never compromises and above all – never cracks under pressure

TAG Heuer has recently formed a partnership with the Al-Majed group, and was present at the Doha Jewellery and Watch Exhibition that took place in February, 2015. Day and Night magazine caught up with General Manager, Kolia Neveux, to find out the news on current market trends and expansion plans for the Middle East.

How did the relationship between TAG Heuer and Al-Majed start?

We have been present in Qatar for a number of years and in all that time it was impossible for us to reach the local community. To address this issue in an efficient way, we required a company that understood local customer needs and was able to connect with them in a certain way. Being an experienced company, Al-Majed filled that gap with knowledge of working with numerous other brands, so it was only natural for us to partner with them. Currently, we have strong partnership with Al-Majed and are proud to be associated with them at the Doha Jewellery and Watch Exhibition.

What are your expansion plans in the Middle East?

At present, we have two boutiques in Abu Dhabi, two in Bahrain, one boutique in Qatar and one in Dubai. We also have six shop-in-shops at the wholesale level. However, there are plans for expansion in Qatar and with the valuable assistance of Al-Majed, we are hoping the new exciting venture will be a successful one. We have a two-phase strategy in mind; firstly we will open a new boutique that will probably be under Al-Majed management or we might opt for a big shop-in-shop just to begin with. The second step would be to wait for the next two years while Doha is still under construction as many new malls are still being built, but once this is done we can then focus on our new boutiques in new locations and grow into the Qatari market.

What is the feedback from the Al-Majed clientele on TAG Heuer timepieces?

The feedback has been very positive as many local customers were expecting us to be present at the Doha fair. The fact that we are in the Al-Majed stand proves to existing customers that we are up to the company’s high-standards in terms of quality and service. Most of the brands under the Al-Majed umbrella have exceptionally high prices that are in complete contrast to us, for this reason TAG Heuer fills the gap left in the Al-Majed family, where customers are impressed with the price range we offer for luxury Swiss timepieces. Also Al-Majed has an amazingly impressive portfolio and for us to be a part of that is a true honour as they only deal with superior brands that let the products speak for itself.

Do clients prefer in-house built movements or is there no preference?

For the reasonable price range we offer, our customers are thrilled with the in-house calibres our timepieces feature as the brand is known for its reliability and strong sporty features that are powered by high-quality movements. For example, the automatic 1887 calibre is built in-house with a diameter of 29.3mm, and is durable, reliable and generally works extremely well. We have experienced a good level of interest in this calibre and have achieved a reasonable amount of sales, and for that reason we have revolutionised the 1887, creating a new movement; the SH01 which is less complicated, more efficient and much more affordable and will be revealed at Baselworld this year. The Middle East market has two types of customers; People who are highly educated in the horology field, who know what they want and the ones who aren’t aware of technical specifications and are attracted to our brand purely for aesthetic purposes. Our new calibre will fit right between these two customer groups and we are looking forward to receiving a positive feedback.

When do you predict all TAG Heuer timepieces will have internal mechanisms that are created in-house?

That is difficult to say, it will depend on level of sales, stock and marketing capabilities. I hope that we will be fully independent within five years but this is not in my hands.

Which market needs more attention in the Middle East?

We are immensely happy with our current position and strongly believe that each market is important in its own way, no matter how small it is. Some markets do well as they are exposed to travel retail while others don’t have as many tourists passing through. The market in Kuwait is extremely strong, while the market in Abu Dhabi could use a little more attention. The Saudi market is full of promises and we are looking at gearing our efforts to maximise sales growth there. The Iranian market has the potential to do very well as there is a large middle class sector there who are keen on luxury timepieces.  As a whole, success will come from local middle-class clientele and this is what we are focussing on; to tailor our timepieces to residents of a particular market.

How did the unpegging of the Swiss Franc from the Euro affect TAG Heuer?

Our partners and clients were a little cautious as they didn’t know the lasting effects of such a situation, or if the market will re-balance the equilibrium. Some brands have made the choice to increase their prices but we have made the choice to reduce our prices. We are hoping this strategy will acquire and retain new customers and gain product volume for a stable future for the brand.