At Baselworld 2015, Tag Heuer’s new venture, changed the very landscape, of the biggest watch fair in the world. For the first time, ever, two tech giants’ logos, welcomed guests at a show that prides at showcasing the traditional watch-making-art of Switzerland. Google found it’s way to this show because of Tag Heuer. The LVMH watch brand announced its tie-up with Google to produce Tag Heuer smart watches, at the big watch event. Tag Heuer is now the first Swiss watch maker to officially make smart-watches. I caught-up with Mr Guy Semon, General Director, Tag Heuer, to find out – how well Tag Heuer understands the smart-watch market and what should buyers expect from Tag Heuer Smart watch?
Q) What is the inspiration for a Swiss watch company to enter the smart watch business ?
Guy Semon: That’s a good question but, a smart watch is not a watch! A smart watch is a device. An electronic device on the wrist and the name ‘watch’ is just because it is an electronic device, ‘on the wrist’.
There is a big difference between a mechanical watch and a smart watch. Why? Because an electronic watch (smart watch) is absolutely rational and a Swiss watch is absolutely emotional. It is totally different. But considering the position of the product on the wrist and considering the price of the product, it is not too expensive, less than 500 US dollars. In Switzerland, we are producing Quartz watches, we have to control and to manage this new business coming in our territory. But it is not located in Switzerland. It’s a wave, around the planet.
It’s another business. It’s another job. It is why we decided, to find the best of the best on the planet, to collaborate, to create, this watch.
“We don’t know of the market exists yet but what I know is, to know where the train is going, we need to buy a ticket and be in the train”
Q) Smart watches have been around, for a few years. Why didn’t Tag Heuer deem it right to enter the smart watch business, when it started? Android wear, too, has been around for more than a year.
Guy Semon: If you buy a ‘connected watch’ just to measure the temperature of your body, or the rhythm of your heart, then it’s probably better to buy in China. To buy one for 20 Euros, you have an excellent connected watch and you will play with it today and after that, you will replace this object with a Swiss watch. But, we are using Android Wear and we have a lot of extensions around the watch. That’s because for our client, what’s important is to come into the Tag Heuer universe, to find and share our history, our passion, our performance, accuracy etc. It’s not just a product to me, as you are sensing on your wrist.
Q) Android wear is being used by several other tech companies, to produce smart watches. How will Tag Heuer enhance the experience of a smart watch? Tag Heuer will probably make more beautiful watches, than others. But as far as functionality is concerned, how will Tag Heuer add to the experience of a smart watch?
Guy Semon: Yeah, but how connected watch will use android wear. It is not limited to android wear, We have a universe around android wear. But unfortunately, I can’t tell you what we have in this watch. You have to wait for the end of the year for the presentation of the watch. For the moment, it’s work in progress. We are working on the topic
Q) From all of the Android Wear watches produced so far, which is your favourite? Which of them do you think is a ‘good watch’?
Guy Semon: Yes, I respect them because I am an engineer. I respect the other engineers because I know the quantity of work that you need to invest, to produce a product. But I am a watch maker and for me, the most important thing to provide to our customers, is emotion.
And for the moment all the watches existing in the market are not emotional. Not enough. I respect, but for me, it’s not watches. It’s a connected device on the wrist and its nice. For me, it’s like an iPhone with a strap.
“And for the moment all the watches existing in the market are not emotional. Not enough. I respect, but for me, it’s not watches. It’s a connected device on the wrist and its nice. For me, it’s like an iPhone with a strap.“
Q) When Quartz came into the big picture several years back, Swiss watch makers were quite reluctant to move into the quartz watch market. Do you think it is important for a Swiss watch company to make smart watches, now? Do you think that they’re taking a risk if they’re not making smart watches?
Guy Semon: You have to consider the segment. For example, connected watches are all under 500 dollars. The Quartz Swiss watches begin at 600. It’s very close. We don’t know if the new segment will catch a share of the Quartz Swiss watch, yet. For the moment, this market doesn’t exist yet.
Q) If you say that there’s no particular set market for smart watches, then why is Tag Heuer investing in making smart watches?
Guy Semon: Not too expensive. But because we will produce a luxury product, it will be more expensive. Way more expensive for sure.
Q) How much are you investing in the smart watch business? To begin with..
Guy Semon: You mean, in terms of money? A lot. Too much!
With inputs from Aanchal Vombatkere
