Tag Heuer is riding a wave of marketing successes and new launches to grow its market share in the luxury watch world, according to its CEO., opened a flagship boutique on Manhattan's Fifth Avenue on Wednesday as part of a rapid expansion in the U.S. It plans to more than double its boutiques in the U.S. to 50 by 2026, according to Tag Heuer CEO Frédéric Arnault.
Along with increasing sales, the boutiques give the brand more direct relationships with its customers rather than relying on third-party retailers or department stores. "This is a big shift in the last five years and that will continue in the next five to 10 years," said Arnault, the 28-year-old son of LVMH CEO and Chairman Bernard Arnault. "Getting branded stores that we operate ourselves along with e-commerce allows us to nurture direct customer relationships."Those customers have been growing fast since Frédéric Arnault took over as Tag Heuer's CEO in 2020.
Arnault said Tag Heuer is making strides due in part to marketing wins and new products, such as the newwith a skeleton dial worn by Verstappen, which clocks in at more than $10,000."Demand is a lot stronger than what we had projected," Frédéric Arnault said. "So that's what creates the wait list as well. And so we cannot ramp up that fast. Of course, if we want to double production in the next 18 months we can, but we will not do that.