Swiss watchmaker TAG Heuer (TAG) is getting on the smartwatch bandwagon, possibly in a big way. Part of the luxury conglomerate LVMH, TAG is working on making an Intel-powered smartwatch that also includes a mechanical movement.
Founded in Saint-Imier, Switzerland, TAG Heuer is part of the LVMH group. While the company is perceived by many as a luxury watch brand, it actually competes at an almost entry-level of the market. Most of its model watches have a price range of several hundred dollars to a few thousand dollars.
Perhaps the main reason that had inspired the Swiss watchmaker to come up with its own wearable device is when it had witnessed the smart watch launch event of Apple. Jean-Claude Biver, the company's chief executive officer, described the Apple Watch as "too feminine." He also added that the watch appeared like it had been built by a student who is attending his first trimester.
"This watch has no sex appeal," said Biver. "It's too feminine and looks too much like the smart watches already on the market. To be totally honest, it looks like it was designed by a student in their first trimester."
Other LVMH watch brands include Bvlgari, Hublot, and Zenith. The way the current luxury watch market works, umbrella corporations like LVMH or Swatch own a variety of brands and position each one to occupy different price ranges. Bvlgari competes roughly in the $2,000-$10,000 range, while Hublot and Zenith (unrelated to the electronics brand of the same name) overlap in the $6,000 to $100,000-plus range.
Note that the Hublot and Zenith lines start higher than most predictions place Apple's most expensive Apple Watch, the gold and rose gold Apple Watch Edition. Informed speculation and leaks have placed those models in the $5,000 range.
TAG is LVMH's largest brand by volume, and newly instated head watch person Jean-Claude Biver-LVMH owns many other luxury brands that aren't in the watch business-has been repositioning the brand to have a broader appeal (meaning cheaper watches).
The TAG Heuer smart watch is purported to incorporate mechanical actions which are aided by sensors. These would enable the wearable to keep a tab on a number of physical stats such as "burned calories" and "step counter."
"We will only make smart watches if we are the best, different and unique," said Biver.
In order to get a head start, Biver said that the company is open to acquisition of companies and is also looking for partners, as any smart watch venture would need a partnership. It could either be a university or a specialist firm.
"We're casting a wide net and looking at very big companies," said Guy Semon, company VP.
