Tag Heuer Aquaracer Mother of Pearl Diamond Dial Ladies Watch WAY1413.BA0920

WORLDTEMPUS - 15 March 2011

It's not easy for a brand to venture outside its core business. Many luxury brands have tried to be a respected name in the world of timepieces and failed to get the same level of success; on the other hand, several watch brands tried to capitalize on their prestige and expand business through product diversification - mainly with the creation of a jewelry line.
The outcome has been mixed, but TAG Heuer can boast outstanding sales in its eyewear collection as well as a comprehensive line of accessories that include a mobile phone range and even leatherwear - all inspired by the brand's own codes, with designs signed by the same duo that has authored many of the brand's watches: Christoph Behling and Christophe Moinat.
TAG Heuer calls its product diversification "avant-garde lifestyle accessories". "The word diversification doesn't describe exactly what we're doing," says Jean-Christophe Babin, the brand's dynamic CEO. "What we're doing is encapsulating TAG Heuer's unique spirit and heritage within a wider variety of products; it's a logical step as the success of the eyewear line and the Meridiist communication instruments proved that consumers are very receptive to new TAG Heuer product categories."

The head of the recently created "lifestyle accessories" department is Eric San Miguel, previously with Cartier (accessories) before spending ten years in product development, marketing, and even customer service at TAG Heuer. "The department was formally created at the end of 2010. Cartier aside, there's not another watch brand capable of such product diversification; maybe the Swiss do not have the instinct to create a brand universe like the fashion labels so often do. Yes, it's been tried in the past, but with mitigated success."
Inspired by watchmaking
San Miguel underscores the fact that in the past decade TAG Heuer has been dwelling a lot on its past and reviving the Heuer label. "Actually, Heuer used to make accessories back in the '70s, from bags to jackets. Now we have three distinctive product lines, each translating a different aspect of the brand's heritage: the Vintage Collection is more Heuer-like, a '70s inspired line of Steve McQueen/Gulf racing jackets, travel bags, cufflinks and a brown weathered set of fine French leather goods. Then we have contemporary TAG Heuer products: the Business Classic Collection is understated and discretely branded. The Avant-Garde Racing Collection is a technical, sporty tribute to the brand's involvement with motor racing."
One of the main assets of the accessories line is being able to share synergy with several watch industry suppliers (316L stainless steel, scratchproof sapphire crystal, leather straps, etc) and leather suppliers for other LVMH brands (Louis Vuitton) who provide materials for the phones, eyewear, cufflinks, buckles, belts, billfolds, wallets and business card holders.
San Miguel insists that the advent of an accessories line "gives TAG Heuer a dynamic way to share its heritage and history through premium products that are representative of the brand's values. Accessories come in prices complementary to watches and are more accessible for gifting or moderately priced self-rewards."

The ophthalmic eyewear and sunglasses are a huge success; today TAG Heuer sells one pair of glasses for every two watches and is the world leader in premium corrective frames for men. The Meridiist mobile phone line is also successful and almost the sole Vertu rival in the luxury segment.
Core business, positioning and leadership
Babin is happy: "I realized TAG Heuer had a huge potential beyond the watch business with Christian Viros, more than a decade ago. Watches have been our core business for the last 150 years and will continue to be so in the future. That said, our move into eyewear has been a great success with TAG Heuer now leading the men's high-end price segment worldwide. Our vision is to reproduce a similar phenomenon with accessories," he says.
Diversification is good for brand visibility and Babin knows it's also good for business: "The accessories market is huge in size and developing quickly, with very few significant competitors in the men's market and certainly none that share TAG Heuer's unique positioning. The wider choice of products enables our customers to better understand the brand; it also attracts an entirely new range of customers and enriches and enlivens our boutiques."
The brand's CEO also adds, "We're proud of our watchmaking heritage and the lifestyle accessories reflect that pride; in every mirror-polished and fine-brushed surface, in every innovative buckle mechanism and case design, they express the values that have put us on top. This new challenge also allows us to showcase our pioneering vision in an entirely new domain."
The next chapter of diversification will soon open: TAG Heuer will unveil its first smartphone next week - at Baselworld.