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Tag Heuer Cuts Jobs As Demand For Luxury Watches Slows

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http://www.bbc.co.uk/news/business-29418452

High-end watch brand Tag Heuer is cutting management and production jobs after a slowdown in demand for its luxury timepieces.

The 150-year-old brand, owned by French fashion and champagne conglomerate LVMH, has axed 46 positions.

It has also made 49 people temporarily unemployed until the end of the year.

The job losses will affect Tag Heuer's sites in La Chaux-de-Fonds and Chevenez in Switzerland, where it employs approximately 600 staff.

Jean-Claude Biver, head of LVMH watches, said watch industry sales grew by 2.7% between January and the end of August, lower than the 4% to 6% growth he had forecast for 2014 as a whole.

Mr Biver said the firm now planned to focus on its core business, namely watches priced between 1,000 and 4,000 euros (£781 and £3,124).

The watchless recovery

The timeless recovery

They just ran out of time....

This must be a shock that people can't keep affording to buy a £1000 watch. If I bought one I certainly wouldn't look to be another watch for decades!!

Plus as a mobile now functions as a watch people have more choice.

My main watch is kinetic and cost £50, I doubt I'd ever want to spend £1000 on a watch. Good job I'm not driving this recovery.

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Fakes/Replicas are pretty good nowadays. Why spend £1000s when you need only spend tens.

I have a nice genuine TAG, but haven't worn it since a bunch of Romanians tried to relieve me of it a year or so back, so I got a nice fake instead.

I do think patents/copyrights have had their day. The Chinese at least have that right.

Why be ripped off and spend £40k on a mini Range rover when you can get a Chinese version for £10k (google Landwind e32)

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...my basic Casio costs around £5..postage free from you know who....always 1 or 2 on the UK best 100 sellers list for watches and is cheaper than buying a new battery for my other watches ...to keep a Tag water proof you need to spend at least £40 on replacing the battery ...more if you go to an approved stockist...why bother..... :rolleyes: ...OK for the ladies, who wear them as jewellery....

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And most of the people I know who are under 40 do not wear a watch and seem amused that someone would spend hundreds on pounds on a 'phone app'.

Creative destruction at it's finest- soon the wristwatch will look as outdated as the pocket watch our grandfathers used. When you are walking around with a supercomputer in your pocket wearing a gadget to simply tell the time looks stupid.

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...my basic Casio costs around £5..postage free from you know who....always 1 or 2 on the UK best 100 sellers list for watches and is cheaper than buying a new battery for my other watches ...to keep a Tag water proof you need to spend at least £40 on replacing the battery ...more if you go to an approved stockist...why bother..... :rolleyes: ...OK for the ladies, who wear them as jewellery....

Spendthrift.

I carry round a stick and use the sun to tell the time.

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Creative destruction at it's finest- soon the wristwatch will look as outdated as the pocket watch our grandfathers used. When you are walking around with a supercomputer in your pocket wearing a gadget to simply tell the time looks stupid.

:rolleyes:

140909142343-apple-watch-620xa.jpg

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http://www.bbc.co.uk/news/business-29418452

This must be a shock that people can't keep affording to buy a £1000 watch. If I bought one I certainly wouldn't look to be another watch for decades!!

Its only the low end Tag Heuer watches that you are aware off then. The Monaco chronograph that was one of the watches I looked at in 2008 have more than doubled in price to just under £10k now. They do have some cheaper ones that are now around the £2-3k mark. They're not as nice though.

In the end I went for a more refined Patek Philippe.

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Creative destruction at it's finest- soon the wristwatch will look as outdated as the pocket watch our grandfathers used. When you are walking around with a supercomputer in your pocket wearing a gadget to simply tell the time looks stupid.

My watch: good in any conditions up to 50m underwater, time is visible with a flick of the wrist, and needs a new battery every couple of years.

Typical smart phone: fried if you try to use it underwater, having to take a phone out of your pocket to check the time looks stupid, and it needs charging every couple of days.

When you can put a supercomputer on your wrist and run it for a year without charging, then watches will be a dumb idea.

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My watch: good in any conditions up to 50m underwater, time is visible with a flick of the wrist, and needs a new battery every couple of years.

Typical smart phone: fried if you try to use it underwater, having to take a phone out of your pocket to check the time looks stupid, and it needs charging every couple of days.

When you can put a supercomputer on your wrist and run it for a year without charging, then watches will be a dumb idea.

1. Most people don't go swimming, let alone diving to 50m

2. Taking your phone out of your pocket to look at the time does not look stupid

3. I charge my phone every few days regardless as to whether I need the time or not

Watches are redundant.

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Its only the low end Tag Heuer watches that you are aware off then. The Monaco chronograph that was one of the watches I looked at in 2008 have more than doubled in price to just under £10k now. They do have some cheaper ones that are now around the £2-3k mark. They're not as nice though.

In the end I went for a more refined Patek Philippe.

In the story they said they would concentrate on producing watches around this mark I went with that figure. However as I'm not in the income bracket where I could realistically spunk £10k on a watch I've never been in a shop that's been selling them.

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In the end I went for a more refined Patek Philippe.

beugh, horrible chavvy looking chocolate box watches worn by footballers only bested by the Rolex Gaytona.

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As the number of London winners turns to the number of Losers, you will see more high end businesses like this closing.

These losers need to borrow more. They should consider MEW-ing and 120% mortgages, they used to be fashionable.

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...my basic Casio costs around £5..postage free from you know who....always 1 or 2 on the UK best 100 sellers list for watches and is cheaper than buying a new battery for my other watches ...to keep a Tag water proof you need to spend at least £40 on replacing the battery ...more if you go to an approved stockist...why bother..... :rolleyes: ...OK for the ladies, who wear them as jewellery....

A decent Tag wouldn't have a battery, it would have an automatic movement.

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Creative destruction at it's finest- soon the wristwatch will look as outdated as the pocket watch our grandfathers used. When you are walking around with a supercomputer in your pocket wearing a gadget to simply tell the time looks stupid.

A Tag, Omega, Rolex or Brietling et al aren't time pieces they are jewelry. So their market's are different. I have a tag self winder on my wrist as we speak. Tag especially seem to have lost their way. An inside track is that The Swatch Group who own many of the brands - (Omega, Longines, Tissot, Rado) also make many of the movements for Tag and Brietling.

Contrary to some OP's views IMHO you are buying the watch for the movement. Swatch announced in the classic Swiss way i.e so as not to disrupt the market that they will be stopping this by 2020. So all the other brands and I know it includes Tag will have to develop their own not cheap and not quick this is probably a redeployment of people/resources to achieve this.

As for buying copies.......why ? You have sort of brought into the brand but can't afford it sort of sad really

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Tag Heuer have never really been a proper high-end watch company, they really just filled the gap between true high-end watches (Rolex, etc) and good quality mechanical watches from the likes of Seiko, Citizen, etc. And the problem is the customers in this price bracket (wannabe middle class) are those who are struggling in the recession. Tag have found themselves on the wrong side of the new divide between rich and poor.

The other problem for them is that they failed to compete in the 4,000-10,000 price range, as in that range you have many brands with more cachet. It is a bit like the VW Phaeton, even if it was OK who would spend 60k or more on a VW ? The reality is that people want a BMW, Mercedes or Jaguar badge (or Rolex, IWC, JLC watch) at that price. Omega have been slightly more successful in transitioning to higher prices, perhaps supported by the Seamaster/James Bond connection, but ultimately I see them having the same problem.

And of course longer term the whole industry is in trouble. If you look at any of the watch forums you can see that all posters deny the industry is under risk from technology (they point to the fact that the quartz “crisis“ of the 70s was overcome). I think much of the denial is driven by the fear that the value of their watch/watches will head down to nothing. I myself have always liked watches, probably since I bought myself an automatic Seiko 5 in my early teens, so I will remain a potential customer for the posh-brands for the foreseeable future. But kids who never had a mechanical wristwatch, and whose first experiences are with smart phones or smart watches, they will have no reason to buy in the future. Why would they want to spend many thousands of pounds to lose functionality ?

Edited by ScrewsNutsandBolts

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