As part of the LVMH Watch Week, horological brand TAG Heuer unveiled its novelties in Singapore. CEO Frederic Arnault chatted with us about how the marque works on its historic iterations to appeal to modern tastes, the appeal of Connected luxury watches and its collaboration with Nintendo
How did the idea of reinterpreting TAG Heuer’s iconic Carrera in the TAG Heuer Carrera Chronograph 60th Anniversary Edition come about?
There are a few iconic features of the Carrera and this case that we launched a few years ago is one of them. It recalls the historic Carrera, which was 36 mm; this one that we brought out a few years ago was 39 mm, but with the same lugs. From the beginning, it was quite successful and was the base on which a few limited editions were launched. The Carrera 160 Years Silver Limited Edition had a full silver dial; we have also had a few colourful pieces – the green and the red – and they were all very successful. We realised that there is a real demand for this kind of aesthetics, and this was very close to the original. Collectors and enthusiasts are even more passionate about this kind of aesthetics on the Carrera. We decided to modernise it and make it a TAG Heuer because it still had a Heuer logo on it. We reworked the design and the construction, trying to stay as faithful to the original inspiration and idea, but with more modernity. We then decided to complete the previous case with one the most searched-for dials – the ‘panda’ dial.
The TAG Heuer Connected already accounts for 15% sales of all connected watches and is a pillar of the brand; how do you see the Connected watch in the future and how important is the new 42 mm model to the brand in terms of sales?
Fifteen percent is a very good penetration in the brands, we are of course investing very heavily in the Connected segment, and it is in a good shape. But our roots are with traditional watch business and that is also showing very strong growth, so both are growing at a similar pace. We do want to give it importance, but we also do not want to give it too much space because at our roots we are watchmakers and that will always be our number one priority; in our development, our communications, our boutiques – we want to be seen as a watchmaker first. We have invested in the technology and the design; we were the first ones to see the potential of the Connected watch segment, which we believe has its own space for us. It will bring in new customers who will then transition to mechanical watches.
How does TAG Heuer future-proof a Connected watch as the Connected is a luxury smart watch?
There is obsolescence; we do not lie about that. When you buy a mechanical watch, it lasts for decades but that is not the case for the Connected watch. However, we invest on durability and we make sure that we are more durable than the rest of the industry. For instance, we offer change of batteries because the battery is the first thing that stops operating. This offers extra lifetime to the watch, and we expect customers to be able to wear it for 5-7 years. The life cycle of our developments is not as aggressive as some of our competitors, who launch a new generation every year. We are ensuring that our Connected watch does not become obsolete too fast, and that we install some durability as we are a luxury brand, and our Connected watches are perceived as a luxury product.
Do you have a trade-in programme for your Connected watches?
Yes, we do; we buy back the older watch, which will then be recycled. Even with our Connected watch customers, our aim is to keep them engaged on the Connected watch. We track them on a daily basis: how many people are wearing it, what functions they are using, and so on. We make sure that this number grows, and that it brings them value on a daily basis. Because only if it does, will they want to buy the new generation Connected watch.
How do you find the fine balance between respecting the brand heritage, its icons, its watchmaking history, and legacy and yet create something that is relevant for today and the younger generation?
One could think of the heritage as a burden because you need to respect some many things and it does not give us much freedom, but I think it gives us a lot of strength. It enables us to say, “Oh, we have been doing this for this many years,” or “this design was launched for this reason”; it is a huge source of inspiration and gives us even more strength. Our vision for the brand takes inspiration from the heritage, of course, but we always try to modernise as much as possible, whatever we are working on.
That is what we have tried to do on the TAG Heuer Monza Flyback Chrono, which has the cushion shape and other similarities with the historic design. The pushers, for instance, as well as the hands are the same as the older edition, but this watch looks unmistakably modern, with an open dial and case. We didn’t want to do a re-edition; we wanted a truly modern timepiece. Most of our customers may not be aware of the historic Monza, but we would be able to tell a story. It looks modern, but we would be able to say that we have been doing this for so many years and this design is inspired by that – this carries more strength.
TAG Heuer’s partnership with Nintendo was quite unexpected, especially as Nintendo does very few partnerships; how did the collaborations come about?
Yes, that is true; the relationship started in 2018 and our initial idea was the Connected watch. That was how the collaboration started, as we wanted a watch face with Mario to animate the smart watch. We did it with them, offered some amazing concepts, and it was truly successful. During the discussions, we realised that both brands wanted to also do a mechanical watch. We decided to make it very authentic by making it not about Mario but Mario Kart and link it to the world of racing and Formula 1. There was mutual excitement about this project; we wanted to come up with something disruptive and so the tourbillon was quite niche and there was a huge demand for it.
Is the partnership with Nintendo a short-term one or can we expect more products in the future?
Of course, we can do other products and we have already received a lot of enquiries about this. But I think that it is better that this kind of collaborations be exclusive. We had these this time, they were truly successful, but we should not do too much of these. Now, it is part of the heritage of the brand.
