Luxury watchmaker TAG Heuer has announced of its plan to retail its luxury products including mobile phones and other high end gadgets online.
According to Jean-Christophe Babin, president and CEO, TAG Heuer, the company wants to develop high-end luxury accessories for exclusive retailing though the internet. “We are exploring the opportunity to sell not only our mobile phones but also exclusive luxury items and techno-design accessories developed especially for retailing through the internet,” said Babin.
The idea certainly seems to be to make the most of the economical and marketing advantages that the web provides in terms of selling online. Besides the obvious retailing costs it also helps in carving the perfect brand identity and catering to a targeted niche, which sometimes is lost in the real world market. Watches in India are generally sold through watch and jewelery outlets which often tends to be mass class in India and don’t quite fit into the idea of TAG’s brand identity, a view echoed by TAG themselves.
And add to this the exponential scope that online advertising provides in terms of its growing user base and targeting, and TAG is set to have a major online driven business center.
According to their release, globally, TAG Heuer has already forayed into the e-commerce arena by tying up with select online retailers to sell its watches — an initiative that made it the first brand to offer an entire line of luxury watches for secure purchase online. The company plans to capitalise on Internet advertising in a more focused manner. While traditional channels are still growing, Internet advertising has witnessed around 40 per cent growth, according to industry estimates.
“An average person spends two hours on the internet and 10 minutes reading newspapers. Therefore, in terms of advertising, it is natural to divert some of your money to internet channels,” Babin added.
TAG’s decision and plans present a unique case point for a lot of internet marketers to tap into potential advertisers. And its success will only add to the effectiveness of business on the web, which the industry accepts has not really kicked in in India yet.
A pertinent point that had emerged during WATBlog’s first panel discussion was that online commerce has to improve for the online advertising industry to shoot up. It is therefore imperative that many more brands especially the ones targeting the high end value based audience to follow suit and setup online retailing options. As a society that generally finds trends passed top down, this can help first and foremost online based sales and therefore online marketing and advertising industry. We had earlier seen Shopper’s Stop also announcing its plan to offer online retailing services for its ‘First Citizen’s’ club. However, a mass adaption with specific growth plans and targets by various brands is needed to provide the required fillip to the online industry.
So as the plans roll out from LVMH’s stables, a lot of eyes would be keenly watching the results.