Ornatus-Mundi
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JC Biver: Apple Watch biggest threat to traditional timepieces, likely to wear one himself
Bloomberg on Tuesday broke the news that Jean-Claude Biver, TAG Heuer's interim CEO and head of timepieces at luxury holding LVMH, who in the past voiced harsh criticism over Apple Watch, has changed his opinion and is now quoted for saying that the wearable is 'an incredible achievement' and that he plans to wear one. Biver furthermore detailed plans on TAG Heuer's upcoming smart watch: it will not be "Swiss Made" - for the simple reason that technology for that is impossible to be sourced in Switzerland.
Below is the news quoted from Bloomberg.com :
"TAG Heuer is set to enter uncharted territory this year with plans for a smartwatch that will be its only timepiece developed outside Switzerland.
The brand and others based in the Alpine country will need to work with partners in Silicon Valley to produce such watches as Switzerland lacks the technological expertise to do so itself, according to Jean-Claude Biver, head of LVMH Moet Hennessy Louis Vuitton SA (MC)’s timepiece unit.
'We’re not in the communications industry, Switzerland is not, we don’t have the technology,' Biver, 65, said in an interview at his home near the lakeside city of Montreux last week. 'If you don’t have it, you can’t innovate.'
Synonymous with timekeeping for centuries, the nation’s watch industry has traditionally used “Swiss Made” as a marketing tool to boost the bonafides of its products, arguing that the term goes hand in hand with quality, expertise and innovation. With the imminent introduction of the Apple Watch, the industry faces a challenge to those values.
TAG Heuer, which boasts that 'Swiss Made is more than a label at TAG Heuer, it’s a state of mind,' is developing its own smartwatch to help stave off the impact of the American product, which poses the biggest threat for watches priced at less than $2,000, Biver said.
For a smartwatch, 'we can’t produce the engine, the chips, the applications, the hardware -- nobody can produce it in Switzerland,' Biver said. 'The hardware and the software will come from Silicon Valley. But the watch case, the dial, the design, the idea, the crown, that part of the watch will, of course, be Swiss.'
Fifty percent of a watch’s movements need to be produced in the country in order to win the ‘Swiss Made’ label at present. But the expertise is limited to mechanical know-how, Biver said.
The executive has split TAG Heuer’s research and development business into two departments to reflect the “different craftsmanship.” One department focuses on research and development with watchmakers and watch engineers, the other with engineers of technology. TAG Heuer will be able to reveal partnerships it has formed with other companies to create its smartwatch in the next six weeks, Biver said.
In addition to functionality expected of a smartwatch -- think GPS and health monitoring -- TAG Heuer’s timepiece will have applications that are specific to its own brand to give it a unique selling point, he said, such as tie-ups with sports it sponsors.
Biver has led brands through transformation before. As chief executive officer of Hublot, he led the introduction of “The Big Bang,” a chronograph that helped the brand to boost revenue under his tenure. Earlier, the executive turned around a moribund brand, Blancpain. He later sold it to Swatch Group AG, and was there tasked with restructuring the Omega label.
The Apple Watch is only one of the threats to the industry this year, following the Swiss National Bank’s decision last week to end the minimum exchange rate between the Swiss franc and the euro. The subsequent surge in the franc means that timepieces that are made in Switzerland will be more expensive when exported outside of the country, as all but a fraction are.
Swatch shares have fallen 19 percent in the first three weeks of 2015, with Cie. Financiere Richemont SA, the maker of Cartier jewelry, sliding 17 percent.
The smartwatch market will probably reach about $10 billion in 2018 from as much as $1.8 billion in 2014, Citigroup Inc. analysts forecast last year, with half of the market in the future coming from traditional watch wearers switching to the tech devices.
One person who plans on wearing the Apple Watch is likely Biver himself, he said.
'It’s a fantastic product, an incredible achievement,' he said. 'I’m not just living in the tradition and culture and the past, I also want to be connected to the future. The Apple Watch connects me to the future. My watch connects me to history, to eternity.'"
To be frank and honest - I have seen such coming. Having talked to several watch executives on the smart watch topic I never had the impression that I could expect some breakthrough coming from the wach industry itself. Neither Swatch Group nor Richmond nor anybody else in the watch industry seems to have 'cracked it' (to quote Steve Jobs' famous saying on the TV).
Really interesting times!
Best,
Magnus
This message has been edited by Ornatus-Mundi on 2015-01-21 13:03:08 This message has been edited by AnthonyTsai on 2015-01-23 09:42:35
More posts:
JC Biver: Apple Watch biggest threat to traditional timepieces, likely to wear one himself
Bloomberg on Tuesday broke the news that Jean-Claude Biver, TAG Heuer's interim CEO and head of timepieces at luxury holding LVMH, who in the past voiced harsh criticism over Apple Watch, has changed his opinion and is now quoted for saying that the weara...
At least, Biver is scared now.
The traditional watch Brands are digging their own graves by continuously increase their prices. Hence, they themselves have created and exposed their weak point. Some brands are very brave as they are still increasing their prices despite the surge of Sw...
I am afraid you're right.
Swiss watch companies shouldn't take it for granted that people will keep buying their watches even if the prices are crazy. Interesting to see if we can get big bargains later or still the status quo.
What public?
Public doesn't buy $1000 watches, let alone those of Patek, A.L&S, JLC, etc. I think if you spend too much on Purist you tend to assume people here are fairly average income-wise. Nothing can be further from the truth. If you cannot afford luxury watc...
Swiss watches are still luxury products meaning only intended for a small fraction
of the whole population. That's the "public" I meant. In Asia you'd be surprised to see many good watches (mostly Rolex, Panerai) on people's wrists. Of course it's still less than, maybe, 5% of the whole populations. But Swiss watches are not like Casio'...
I apologize in advance for my seemingly disrespectful comment.
I admire Mr. Biver as a person and for what he's achieved in the industry. I have a feeling, however, that he's just trying to justfy Tag Heuer's move into the smart watch territory.
In my vanity
I'll quote myself :) Thank you for bringing this up dear Magnus Sincerely D
I am looking forward to TAG Heuer's efforts...
...whether they succeed or fail. Once the smart watch market reaches a certain size, there will be a market for luxury smart watches, just as there is a market for luxury smart phones today. A utilitarian good, even one with superb build quality and beaut...
The second biggest threat is an all silicone movement
And I believe all the big players are very keen on developing one. Regarding the apple watch: maybe someday we see an apple shirt button on the sarcastic note and more constructively I would like to mention that live is stress full enough and I do not nee...
At least Biver taking it seriously
I used to work for a company that manufactured a lot of Nokia cellphones, when Apple introduced the iPhone, they didn't take it seriously, saying Apple will be out of the mobile phone business in two years. I don't know how well Apple's smartwatch will se...
standing ovation for all of you
I'm tired, to live in a world where passion is always overwhelmed by money. Ok, it's all about the benjis (and euros or CHF etc.), the "maisons" sell emotions, way of life, status.... but what about the fu@@@@ watch? the precision? the engineering? Of cou...
avec plaisir
If we talk about cars, audio, art, drugs (i'm a pharmacist) etc. by now every human activity is dominated by marketing. It's what outside that counts, and it's a pity. The ignorance is every day more accepted, does not matter how you behave or speak, the ...
So you are complaining about one-root-problem...
that manifests itself in several ways, if I understand you. The root problem is the desire to maximize profit. And it manifests itself through shoddy (or shoddier) craftsmanship (poor finishing as one example) and the sales of watches to people who do not...
I want whatever he's smoking!
The Apple watch is worthless to anyone without an iPhone. So if you are in the majority of people with a Samsung or another brand, don't waste your money. Smart watches will NOT be the downfall of the luxury watch industry. But ridiculous price increases ...
As someone who knows something about this field...
As someone who knows something about this field, I can see that Tag Heuer is looking at the high end Smart Watch Industry. Like how they went into the high end cell phone industry to compete with Vertu. Apple already has contingency here, by offering a so...
