Abstract

150-year old Swiss watchmaker TAG Heuer broke with tradition by introducing a Smartwatch (named Connected) in early 2016. Sales of traditional Swiss watches were continuously falling and were in fact overtaken by Smartwatch sales in late 2015. TAG Heuer had already decided to enter the market at this time, and used a number of novel initiatives in order to change their strategy to maximize their chances of success. Although the Connected was far more expensive than its competitors at US$1,500 per unit, it strongly outperformed the market in 2016, which took a turn for the worst. Whilst the market outlook is unclear, TAG Heuer have so far exceeded expectations and are in a prime position to taste further success in the Smartwatch industry going forward.

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