Tissot Tissot Does Not Increase Prices

Our recent reports show that Tissot has carefully prepared for future development. Following the opening of a new logistics centre in Le Locle last year, the brand showcased new products from sports watches to classic watchmaking to buyers at Baselworld.
    Towards the end of the show, Europa Star Watch World interviewed François Thiébaud, who has been the president of Tissot for 16 years and also chaired the Swiss Exhibitors Committee to learn about Tissot’s development and his feedback on the global watch market.
    François Thiébaud said in an interview at Basel that the key to Tissot’s success is not to raise prices. This may sound surprising, especially in the face of strategies adopted by other Swatch Group brands and the strength of the Swiss franc. But François Thiébaud has led Tissot to achieve 16 years of continuous growth, including the crisis period of 2009, which means that his point is worth hearing.
    ‘Of course, the price has increased over the past 16 years as president,’ he said. ‘A watch that cost 250 Swiss francs 16 years ago now costs about 400 Swiss francs. That is because of other costs such as wages and raw materials. ‘
    Nonetheless, François Thiébaud insists that customers should be able to buy a Tissot watch at the ‘price of Tissot’. ‘In most cases, many companies will increase their profits by increasing prices,’ he continued. ‘And I think we should increase profits by producing more.’
    As chairman of the Swiss Exhibitors Committee, Mr. Thiébaud said that the overall feedback from the Basel show was ‘very good’ and very good, not only for watches but also for jewelry. ‘But there is no guarantee that this situation can continue. Perhaps development will slow down in the second half of the year. After all, we experienced explosive growth before the end of 2008, and then everything stopped.’
    However, he is not as worried about possible downturns as his colleagues at the top of Swatch Group brands. ‘Tissot is protected in the mid-range. Because if development slows down, then people who are likely to buy Omega will buy Longines Longines, and people who buy Longines will buy Tissot.’
    Despite the increasing importance of the Chinese market, François Thiébaud emphasized that Switzerland remains the most important market for Tissot. ‘Of course, this is not purely in terms of quantity,’ he said. ‘It takes population density into account. If we sell ten watches in Switzerland, this is different from selling ten watches in the Asian market. . ‘
It is therefore not surprising that the Tissot 2012 MotoGP was specifically designed for Swiss driver Thomas Lüthi.

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