Iean Claude Biver, who is the current chairman of Tag Heuer stated that their company will be increasing their weekly production of Carrera Connected Smart Watch from 1,200 pieces to 2,000 pieces.
This steel cased Android Ware costs around $1,500. The customers are given a choice to upgrade the watch to a limited edition mechanical watch if you are willing to pay another $1,500. The Chairman also said that they are trying to make the sale from their brick and mortar stores, instead of Web; they think that if customers buy directly from retailers, it will improve their sales.
The problem is that the world of watches is suffering from a hard dichotomy. All over the world the sales have been going on through brick and mortar stores, and the price range depends on the region of the stores. In places like Bermuda, the price is low and there are also low priced brands for underdeveloped places, for example, Rolex vs Tudor. The watch designers all over the world would say that the low number of store is the symbol of exclusivity and they are very picky when it comes to working with retailers, and they only allow only a particular number of shops to sell specific items.
But if you look at the internet, the manufacturers have no control over the sale. They know that retail stores are very expensive, but it is also clear that the demand for pricey watches comes from the stores even the wealthy watch lovers are focused on stores.
So what is going on is that, you need to remember that $1,500 is a very small price in the watch world, watch enthusiasts spend more than that only on watch bracelets! In this case, the price has no objection and the Connect allows them to feel special while they are still trying the latest technology. There is also a group of collectors dedicated to Tag Heuer who will buy anything if it is offered by Tag. They see this sale as an opportunity to buy a limited edition mechanical watch while they are going through an Android Wear. In short they are selling smart watches to their old customers whose main interest is in the brand, they do not care about the technology.
But we think that it is pretty nice that Biver admitted that their company is increasing the production, the shocking thing is that he publicized it, it means that he does not expect things to well. He is surprised to figure out what Apple Watch and Android Wear will do to their decreasing customer list.