Tag Heuer shuts India office

Luxury group LVMH's biggest watch brand Tag Heuer is shutting its India office. LVMH will hand over distribution of Tag Heuer and Dior, its other watch brand, to a local company. LVMH will leverage an existing partnership with a local agent which also sells other watch brands. The company has so far been handling marketing, sales and distribution of these brands on its own. The development comes within weeks of the government’s easing its single brand retailing policy to attract foreign companies to open their own stores. LVMH’s watch division opened in India 15 years back.

The company says its decision to change distribution channels is purely based on dynamic re-deployment to meet ambitious business objectives. Tag Heuer’s office in New Delhi will stay open for some time to ensure an orderly transition to the agent and to guarantee proper after sales service. The company is in the process of shifting its marketing, logistics and other departments, but the service centre will function for another year. Tag Heuer, which has had actor Shah Rukh Khan as brand ambassador for years now, it brought in Ranbir Kapoor last year. Entering the distribution model with Tag Heuer and Dior is Corum, another Swiss luxury watchmaker.