Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Mint-lounge / Indulge/  Never Lose Ground
BackBack

Never Lose Ground

Outgoing TAG Heuer chief executive Jean-Christophe Babin speaks about innovations, legacy and regrets

Premium


In a business that thrives on Calvinist conservatism and understatement, Jean-Christophe Babin has been something of a rock star. Since taking over as chief executive of TAG Heuer in 2000, Babin has overseen a transformation of the brand into an international powerhouse with great appeal, broad relevance and universal acceptance. This will be Babin’s last BaselWorld at TAG Heuer. In February this year, it was announced that Babin would now take over as chief executive of Bulgari, a part of the LVMH Group along with TAG Heuer. Babin spoke to Mint Indulge about innovations, legacy and regrets. Edited excerpts:

It has been a remarkably fecund period for TAG Heuer. There have been a lot of new launches in the last few years…

We’ve worked on innovations in escapement, the Mikrogirder being one of the best examples. We’ve done also a revolution in the tourbillon. Last year, we came with the Mikrotourbillon, which was the first and only tourbillon with 12 rotations per minute. Which is what you need to compensate for high frequencies.

We’re mastering high frequencies. We’re looking at alternative ways to regulate as opposed to the traditional Huygens system. This year we are also launching an extraordinary new Carrera, to mark 50 years of the Carerra. This watch is a synthesis of the last five years of TAG Heuer’s innovation. A crowning piece.

This is the Mikropendulum…

Yes. Even beyond the Mikrotourbillon. This is the Mikropendulums. Note the S. This is a double tourbillon. A 1/100th of a second chronograph. But…this is the key…there are no hairsprings. We’ve developed the pendulum concept we showed in 2010. The magnetic regulation technology. Back then we had a frequency of 6Hz. This has two frequencies, one of 12Hz and a high-frequency pendulum of 50Hz. All without hairsprings. This is really quite exceptional. An absolute revolution. A huge step forward from 2010.

What was the real challenge?

The Carrera MikroPendulum movements.
View Full Image
The Carrera MikroPendulum movements.

What is new about the alloy?

It includes gadolinium. A new element. So the addition of this element into the magnet gives it stability between -20 and 70 degrees. To the extent that with the Mikropendulums, the accuracy is very close to COSC (Contrôle Officiel Suisse des Chronomètre ) requirements. COSC requires 0.6 seconds per degree per day. We are currently at around 1 second per degree per day. In 2010, we were looking at deviations of up to 3 minutes per day!

You also have a new case material…

Something we’re calling Chrobalt. An alloy of chrome and cobalt. It gives us better scratch resistance than even titanium. There is also no nickel. So it is perfectly comfortable on the skin and not allergenic. The process of its manufacture is also interesting. You don’t cut and grind. You take a powder and create the case layer by layer. With a laser.

You’ve come full circle in a way. TAG Heuer were always the guys who invented interesting concepts. But this year you seem to have brought many of these ideas into fruition.

Correct. It is satisfying to see…

And you are clearly using more in-house movements into your watches…

This is one of our main ideas for 50 years of Carrera. This collection is now becoming a full-fledged in-house manufacture collection. Most of our chronographs now have the 1887 in-house movements. But we go even further. We also make the dials and the cases in-house.

And have you been able to do this without meddling with your price points too much?

The prices have slightly moved up. By around 10%. Which is entirely reasonably when you move from an ETA-based movement to an in-house movement. And it is a more expensive bracelet. And a more beautiful watch. So it costs. That is life.

You’ve been with TAG Heuer for 13 years. And now you are moving. What has been it like?

Mixed feelings. On the one hand, the brand has never been positioned better. I liked it when you said we are executing better now. For a strong brand, the most important thing is good positioning and clear message. There are so many brands. And you have to stand out properly. This is important. And everything has to be consistent.

Secondly, we’ve become a much more independent company. When I joined the company, we were making quartz watches. And some 95% of the components were coming from the Swatch Group. Today, we are a mechanical watchmaker largely independent from the Swatch Group. This is so much better for us. It is better to compete on product rather than on components. It is more fair.

And thirdly, the legitimacy of the brand is established. Not just because of products like the 1887 Calibre, but also because of the number of innovations. We are a top-tier brand now. We can, in fact, sell more €100,000 watches than most of the brands around here at the fair. This obviously bodes well for the future. When you are a prestigious brand your growth potential is huge.

Our retailing experience is also superb now. You’ve seen the Palladium opening last year.

At the same time, we’re still respecting our origins by being sporty.

So is your job here at TAG Heuer over? Are there many things left to do in your list? Have you achieved everything you wanted to achieve with the brand.

(Laughs) When I joined TAG Heuer, I did not have a master plan or a map. I didn’t know the brand. Or watchmaking. I was a nobody. There is of course so much more we can do. I did not ask to move to Bulgari. That was a consequence of other moves in the group.

My original plan was to stay here for another 10 years. And I know what I wanted to do in those 10 years. I will pass this list on to my successor. But what this successor does is entirely up to he or she.

Now I know you can’t show me all your cards. But in that list you’re handing over to your successor, what are the top few things?

Foremost, stick to the DNA. We are the kings of ultimate precision luxury chronographs. Do other watches, do ladies’ watches, but never let anyone outperform you on chronographs. From the entry chronographs at 2,000 Swiss francs to the Mikropendulums at €400,000, we should be the best chronographs at each every price point. This is what the brand is about.

Never let anybody encroach on this territory. All these landmarks must remain TAG Heuer landmarks.

Finally, any regrets at all? Anything you wish you could have done?

I wish the company was even bigger!

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Jul 2013, 12:56 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App