Swiss watchmaker TAG Heuer is optimistic its sales in Thailand this year will grow by more than 30 per cent, up from 20 per cent last year, despite the economic slowdown.

CEO Jean-Christophe Babin said the economic situation was not a factor and the brand had to grow whatever the situation, but if the economy improved, the company would expect to accelerate its growth.

TAG Heuer still sees strong demand for its watches, which are aimed at middle- to high-income earners, particularly business people.

Indeed the economic slowdown could benefit TAG Heuer as consumers with a limited amount of money seek products that maximise value.

TSL International Co Ltd, sole distributor for TAG Heuer in Thailand, has allocated Bt35

million for marketing and advertising this year, rising from Bt30 million, according to president Somchai Tanmanasiri. The company usually allocates 20-30 per cent of expected sales for the budgets.

It sells an average of 150 new models each year in Thailand from a total of 200 new models released by TAG Heuer's headquarters in Switzerland.

They include original masculine sports watches and ladies' watches featuring several diamonds.

Ladies' watches generate 40 per cent of TAG Heuer's sales. Somchai said women now tended to buy more watches with a masculine character but softer looks, reflect women's pride in having a bigger role in Thai society.

TAG Heuer expects to see big growth in sales of mechanical watches, which work by themselves without batteries. Mechanical watches account for less than 30 per cent of its sales.

Somchai said other high-end brands had already balanced sales between mechanical and quartz watches and people liked to collect mechanical watches, which cost about 10 per cent more than quartz watches.

In Thailand, TAG Heuer is second to Rolex in its market.

In global terms, it is in fourth place.

Thailand is TAG Heuer's third largest market in South East Asia following Singapore and Malaysia. Babin said Singapore had a lot more business travellers than Thailand and duty-free conditions allowed the company to sell its watches more cheaply there.

However, Babin believes Thailand will become a bigger market than Singapore in the next decade because of its larger population, the opening of Suvarnabhumi International Airport and a number of infrastructure projects. The new airport and improved communications will bring more business travellers, he said.

TAG Heuer has 42 sales points in Thailand, including five boutiques. Its five main permanent collections are Formula One, Aquaracer, Link, Carerra and Monaco.

Nitida Asawanipont

The Nation