Tag Heuer CEO Frédéric Arnault on his strategy for the brand: the son of LVMH boss Bernard Arnault on how the Swiss watchmaker has seen ‘double-digit growth’, ahead of its New York flagship launch

Jul 25 , 2023

Tag Heuer CEO Frédéric Arnault. Photo: Handout

Celebrities from Alexandra Daddario to Natasha Lyonne turned out in force for the luxury watch brand’s new flagship on Fifth Avenue in Manhattan and the launch of its Carrera Skipper watch

Frédéric Arnault – son of billionaire Bernard Arnault, second-richest man in the world – is focusing on more expensive price points for Tag Heuer, much like Louis Vuitton and Tiffany

On July 12, Swiss watchmaker Tag Heuer held a grand opening party for its new flagship on Fifth Avenue in Manhattan. Celebrities including Patrick Dempsey, Kieran Culkin, Natasha Lyonne, Alexandra Daddario and Thomas Doherty turned up for the celebration, which was presided over by Frédéric Arnault, chief executive officer of Tag Heuer, with his father, LVMH CEO Bernard Arnault in the wings.

Stephane Bianchi, Patrick Dempsey, Alexandra Daddario, and CEO of Tag Heuer Frédéric Arnault attend as Tag Heuer celebrates the grand opening of its new boutique on Fifth Avenue on July 12, in New York City. Photo: Getty Images via AFP

There was a lot to celebrate: the new Fifth Avenue boutique is twice the size of the previous one, and the party marked the launch of the Carrera Skipper watch – an homage to one of the brand’s regatta watches from years past. The US$6,750 watch features teal and orange accents, a 15-minute countdown clock for sailors to use as they await the start of a race, and a chronograph function for timing.

Patrick Dempsey, left, Alexandra Daddario and Kieran Culkin attend the Tag Heuer Fifth Avenue flagship store opening on July 12, in New York. Photo: Invision/AP

The day before the launch, we sat down with Frédéric Arnault, 28, to discuss his strategy for the brand. Arnault joined Tag Heuer in 2017, first in a strategy role, and was elevated to CEO in 2020. As we’re seeing with other brands under the LVMH umbrella, including Tiffany and Louis Vuitton, he’s moving many the product lines to more expensive price points while cutting out stores and product models that don’t match an elite vision.

Natasha Lyonne attends the TAG Heuer Fifth Avenue Flagship store opening on July 12, in New York. Photo: Invision/AP

So far, he says, the strategy has been a success in revenue; while LVMH doesn’t release numbers per brand, Arnault cites “double-digit growth” in the past few years, not through selling more watches, but selling more expensive ones.

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Frédéric Arnault, chief executive officer of Tag Heuer, at the grand opening party for its new flagship on Fifth Avenue in Manhattan. Photo: @frederic.arnault/Instagram