From 'Barbie' to Formula 1, TAG Heuer is making its mark on the luxury watch market

TAG Heuer is riding a question of selling successes and caller launches to turn its marketplace stock successful the luxury ticker world, according to its CEO.

The company, which is owned by LVMH, opened a flagship boutique connected Manhattan's Fifth Avenue connected Wednesday arsenic portion of a accelerated enlargement successful the U.S. It plans to much than treble its boutiques successful the U.S. to 50 by 2026, according to TAG Heuer CEO Frédéric Arnault.

Along with expanding sales, the boutiques springiness the marque much nonstop relationships with its customers alternatively than relying connected third-party retailers oregon section stores.

"This is simply a large displacement successful the past 5 years and that volition proceed successful the adjacent 5 to 10 years," said Arnault, the 28-year-old lad of LVMH CEO and Chairman Bernard Arnault. "Getting branded stores that we run ourselves on with e-commerce allows america to nurture nonstop lawsuit relationships."

Those customers person been increasing accelerated since Frédéric Arnault took implicit arsenic TAG Heuer's CEO successful 2020. Under his reign, the institution has leaned into its bequest successful car racing, particularly Formula 1, which has surged successful popularity since the Covid-19 pandemic. As the authoritative partners and timekeeper of the Oracle Red Bull Racing team, its watches are worn by top-ranked operator Max Verstappen and his teammate Sergio Perez.

Arnault said TAG Heuer is making strides owed successful portion to selling wins and caller products, specified arsenic the caller TAG Heuer Monaco Chronograph with a skeleton dial worn by Verstappen, which clocks successful astatine much than $10,000.

The company's apical models are truthful fashionable that TAG Heuer waiting lists are present up to 18 months long.

"Demand is simply a batch stronger than what we had projected," Frédéric Arnault said. "So that's what creates the hold database arsenic well. And truthful we cannot ramp up that fast. Of course, if we privation to treble accumulation successful the adjacent 18 months we can, but we volition not bash that. We besides privation to guarantee that the worth of the watches are maintained implicit the agelong term."

TAG Heuer's maturation is each portion of LVMH's goal of becoming the satellite person successful each luxury category, from manner and leather goods to vino and spirits and watches and jewelry. Along with TAG Heuer, LVMH owns the Hublot, Zenith and Fred ticker brands and it has been expanding income of its Louis Vuitton and Bulgari watches. The French-based company's jewelry and ticker part reported income maturation of 11% successful the archetypal 4th from the twelvemonth prior, to scope 2.6 cardinal euros.

Arnault said a caller correction successful prices for pre-owned collectible watches has been steadfast for the market. After prices for trophy watches specified arsenic the Rolex Daytona, Audemars Piguet Royal Oak and Patek Philippe Nautilus surged during the pandemic, they person since fallen 20% oregon much arsenic the proviso of watches for merchantability online grows.

"After Covid, determination was a precise beardown maturation acceleration, particularly successful watches," Arnault said. "We saw a immense surge successful secondhand markets, owed besides to speculation with galore resale prices that were increasing. And this has changed successful the past six to 8 months successful the secondhand marketplace and present it has normalized again. I deliberation it's healthier and we volition proceed to spot immoderate coagulated maturation selling straight from the store."

TAG Heuer whitethorn besides get a assistance from its partnership with histrion Ryan Gosling. Gosling has been sporting a 36mm TAG Heuer Carrera with a agleam pinkish dial arsenic portion of his promotion of the caller "Barbie" movie. Arnault said "Barbie" fans tin expect to spot different TAG Heuer watches successful the movie arsenic well.

"We made definite that determination was the close watches contiguous successful the movie, " Arnault said. "Ryan volition beryllium wearing immoderate iconic watches that acceptable good successful this universe. The Carrera 36mm successful pinkish has already been nicknamed the 'Barbie watch' by our customers."