Tuesday, November 10, 2015

Connected to Eternity - or 24 Months, Whichever Comes First

So after a few false starts, a lot of bluster and cheese, Jean-Claude Biver and the Tag Heuer Connected watch finally appeared in the same location at the same time.
Courtesy of Tag Heuer
New York City was the location, I had to wait for the press release as apparently my invitation must have gotten "lost in the mail" ; )

Without getting into the minutia that several of my colleagues in the 4th and 5th estate delved, and without prostrating myself to the "Church of Biver" let's just look at some basics -

This is a $1,500 "connected/smart" watch that is now on sale - more than a few days late and several dollars over "the going rate".  

At $1,500 the watch is too expensive for the smart watch market.  There are a LOT of other alternatives available for less money.  The argument could be made that as the watch business on a whole is sucking it in the worst possible way, the price might be a wee-bit "ambitious".

And then there is the "dealer incentive".  Anyone who has ever shopped for a car is familiar with the "bait" that the car dealer will put down to get you in to look at a car.  But then you go down market when you are dealing with a used car.  I suspect that this is a bit of a universal truth.  But it does not infuse a great deal of confidence in the buying public when you are already working to incentivize them to "trade in and trade up".  For those 3 or 4 of you out there who have not already read or heard it somewhere else, the deal is that you buy the Tag Heuer Connected Watch, wear it for 24 months, and "if you don't LOVE it", trade it in for a $1,500 credit towards a new mechanical Tag Heuer.  

Now the strategy is pretty sound - convince "non-smart watch" (read traditional watch guys) to purchase a Tag Heuer Connected Watch with the trade-in clause.  And from Tag Heuer's perspective this makes perfect sense as well, because if we face the facts, you will have to go back to them (most likely their boutique or online boutique) to take advantage of the trade-in.  Even at a 50% discount, they will be making money ; )

So tell me my friend, what would it take to get you into a new Connected Watch Today?

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