Europa Star: How has ‘The year of Living Dangerously’ been for a brand that is as universal as TAG Heuerı

Jean-Christophe Babin: In 2003, TAG Heuer enjoyed remarkable growth in the USA, Canada, Great Britain, Spain and Italy. The Asian markets, of course, were more delicate, but our strong growth in China has compensated for the slowdown observed in Asia. Russia is also showing very positive signs. And, although exchange rates weighed us down a bit, the overall year was good. The recovery has been very clear since September. Year-end sales were strong, and January and February 2004 sales were up 30% in relation to the same period in 2003.

ES: Which in numbers gives…ı

J.-C. Babin: You know very well that we do not give out numbers by individual brand. TAG Heuer is profitable and, with exchange rates stabilized, our profits in 2004 will be even greater. We are convinced too that we are happily witnessing the success of the new Link line, whose distribution began in May-June 2003. The final phase of its launch is taking place in 2004. It is at the heart of the brand and will be available in many models. Then there is also the gradual introduction of our new Formula 1 family.

ES: Does this entry-level watch complete the structure of your offerı

J.-C. Babin: Our offer is now perfectly structured. There is a price that corresponds to each line, each style. The range covers all ages, beginning with the Formula 1 then climbing to more elegant and more ‘watchmaking’ products. The construction of the range follows a policy of consistency and allows us to keep up with the trends, trends that naturally are ever-changing.

ES: Let’s take a look at this range, beginning with the Formula 1…

J.-C. Babin: My definition of the Formula 1 is that it is the first prestige watch for young people. It is also an ‘accessory’ for ‘adults’. It is the watch you wear when you practice an intense sport, for example. Each collection is defined in terms of its style, price and primary target clientele. The Formula 1 collection is made up of simple watches, chronographs and a unisex series of very colourful pieces. In percentage terms, 70% are masculine timepieces, with the other 30% intended for the ladies’ market.

ES: So, as one grows up, one should then move from the Formula 1 to the Linkı

J.-C. Babin: There are several successive steps, if you don’t want to move up all at once. The 2000 series, created in 1982, now has a new addition, the very lovely Aquaracer watch. It has a silvered, black or white dial, decorated in the centre with a circular zone to give it depth and identity, and an aluminium bezel. It is water-resistant to 300 metres and, with a price of around ¤800, it is a very attractive piece. The 2000 Exclusive line goes up to ¤1,000. Beyond that is the Kirium, the ladies’ Alter Ego, followed by the Link line, the Classics and lastly, at the summit, is the Calibre 36.

ES: What are the new features in the Link collectionı

J.-C. Babin: The Link line began with a men’s quartz model, with a rotating bezel. At the present time, it offers a very full range, in both masculine and feminine watches. We will come full circle in 2004 with a new automatic Link with a fixed bezel and a chronograph. For women, we are introducing a whole new series of beautiful mother-of-pearl dials in various colours.

ES: And in the Classicsı

J.-C. Babin: To celebrate the Carrera’s 40 years in a fitting manner, we are launching a special series: the Jack Heuer Chrono in the Carrera 64 line. This is a tribute to a grand creator, who is always at our side, and whose advice we heed. You will also discover the Carrera with diamonds on a mother-of-pearl dial. It is a real gem!

ES: What is happening, in this vast program of launches, to the famous 69, which was presented last year in Basel as a prototypeı

J.-C. Babin: In the beginning, it was a watch-concept, but it created such a high level of interest that we decided to produce it on a commercial scale. We have encountered several difficulties in its industrialization and, in particular, we had to rework the lever system. However, at BaselWorld 2004 this time, you will be able to see industrial prototypes. There will be many other things to see as well. I promise you it will be well worth the trip.

ES: What about a TAG Heuer movement…ı

J.-C. Babin: No comment.

ES: It seems that you have reduced your sales networksı

J.-C. Babin: We have, in fact, closed a good number of sales points that did not correspond to our criteria of service and exclusivity. But, at the same time, we have opened new sales points, more selective, with retailers who are more motivated. In all, the passage from 5,700 sales points to 5,250 today does not exactly reflect the current situation. This is also part of an intense effort in terms of training, which we call the ‘TAG Heuer Academy’. In 2003, 3,000 retailers around the world took part in this program.

ES: What is it, preciselyı

J.-C. Babin: My objective is to make the sales point the brand’s theatre. Therefore we have concentrated on staging the product. TAG Heuer is a prestige brand, and not a ‘manufacture’. We must promote ourselves in a more contemporary and powerful manner. We have equipped 900 stores with DVD players and screens that show informative films, which we change every four months. Our entire effort is expended in moving the brand and its products. Structurally, we work in a symbiotic way with our retailers, guaranteeing them exclusivity, neighbourhood by neighbourhood, city by city. In 2004, we are going even farther in our search for quality, relationships, proximity and communication. Globally, we feel that 5,000 points of sale is quite reasonable. We are working to make sure that they are 5,000 suitable stages to show our products in the proper light.

ES: Will your ‘product + testimonial’ ad campaigns continueı

J.-C. Babin: Of course. The campaign is now entering its third year and is still proving just how effective it is. I feel that in this domain, too, continuity is as important as creativity. We are promoting a product, and each of these products is supported by a well-defined ambassador. They participate in the elaboration of ‘their’ product and are fully engaged in promoting it. For example, Kimi Raikonnen, ambassador of the Formula 1, is personally involved in choosing the colours of the dial and the types of bracelets. On the ladies’ side, notably Sarah Fisher, Marion Jones, Tanya Streeter and Ines Sastre, plus Tiger Woods and David Coulthard on the men’s side, not even counting the ‘mythic’ ambassadors Ayrton Senna et Steve McQueen, we can say that TAG Heuer is well represented in all age groups around the world.



Photo: Inès Sastre with Microtimer Diamond,Ian Poulter and Tanya Streeter