Watch-maker Tag Heuer has weathered the general downturn in the Swiss watch industry, with a 10 percent increase in revenue and opportunities for growth in China.
The luxury Swiss brand’s revenue hike is a notable turnaround from the 10 percent plunge in sales they saw in 2014. The brand has defied depleting overall sales for the Swiss watch industry, with exports down 11 percent since January this year.
The brand enjoyed sales of 50,000 connected watches in 2016 and anticipates a further 150,000 worth of sales for the next year, as production is set to provide a further boost to sales.
In addition, the brand is looking to expand into the Asian markets, particularly focusing on developing their presence in China. Chief-Executive Jean-Claude Biver commented:
“For us, China is a country where historically we were not very present, so it is huge opportunity.”
“We are investing massively in China while the others are cutting their investments.” He added.
Mr Biver refers to the company’s decision to sponsor the China National Space Agency as well as China’s national football team, with the company looking to capitalise on a burgeoning Asian luxury market. Mr Biver considered that the move a key driver of growth in the new year.
Moreover its sister brand Hublot, which counts celebrities such as Jay-Z among its fans, has also enjoyed growth, contrary to that of the remainder of the Swiss watchmaking industry. Whilst Hublot retails at a significantly higher level than Tag Heuer, with prices averaging at €18,000, sales were up for 2016.
According to sales data, despite securing a global reputation for watch-making, the Swiss watch industry has continued to decline. In October, exports of the watches fell by 16 percent to 1,677 million, marking the biggest fall in 2016. This weak levels of growth have been persistent over the last two years, as traditional watch makers struggle to compete with the introduction of smart-watches.