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Swiss watchmaker TAG Heuer says that online retailing is not an avenue it is exploring currently as selling a high-end watch is also about selling an experience.
The brand from the LVMH stable has roped in Bollywood star Ranbir Kapoor as its brand ambassador. Shah Rukh Khan is the existing brand ambassador.
“We are not in the FMCG business and everything is not about selling. In the luxury business, it is all about selling an experience. E-commerce marketplaces may have their advantages but we are currently not looking at them as the selling experience is restricted,” Amit Chaloo, General Manager, TAG Heuer India told BusinessLine.
More outletsChaloo said the company, which retails through nine mono brand boutiques and 80 points of sale is looking at adding its points of sale as it will be key to scaling up the customer experience. “It is true watch is no longer bought for its functionality. There is a lot to a watch and consumers buy it for its mechanical content as it can still be passed on as heirloom,” he said, adding Tag Heuer will add two more mono-brand stores by next year.
Tag Heuer, globally, has a sport personality as its brand ambassador.
Sporty image“Globally, our DNA is in sporting and we will continue it in India. Ranbir and Shah Rukh Khan will both connect with the young first-time buyers. Our new campaign ‘Don’t crack under pressure’ is directed at a young audience,” he added.
Valued at over ₹1,000 crore, the premium and luxury watch market makes up nearly a third of the ₹2,750-crore luxury products market
Tag Heuer watches are priced at ₹75,000 and above. LVMH is among the top three luxury watch brands in India.
Asked about the high taxation structure, Chaloo said that high import tax at about 51 per cent on high-end watches were an impediment to growth and profitability.
Chaloo declined to give investment figures. He also refused to say if the company was profitable in India. As per government data, Swiss watch imports to India have witnessed a decline of 25 per cent.
“We have marginally grown in India as we see several first-time buyers opting for our brand,” Chaloo added
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