While Swiss watch brands are retreating from China because of weaker demand, luxury group LVMH is pushing its Tag Heuer brand.
“We’re pushing a lot, we’re especially pushing now, much more than ever because all the brands are disinvesting,” says Tag Heuer chief executive Jean-Claude Biver. “This means our investment now becomes much stronger.”
With growth this year mainly from the Australia, Britain, Japan and the US, Tag Heuer has had only minimal exposure to the greater China market. The brand’s sales grew 20 per cent during the first five months of this year compared to the same period last year with demand for its smartwatches.
Biver says he expects double-digit sales for Tag Heuer this year, “but the world is so difficult at the moment”.
Because of the weaker demand in China and other emerging markets, Swiss watch sales faded 9 per cent during the first five months of this year.
“For me, the most important thing is that I beat the Swiss watch industry,” says Biver. “If I do better than the industry it means I gained market share. The more the market is difficult, the more important it is to gain market share.”