Are Luxury Smartwatches a Thing of the Past?
The luxury smartwatch market, which debuted a decade ago, is facing significant challenges, with only TAG Heuer actively updating its product lineup while other brands have seemingly withdrawn from the sector. Experts suggest that the luxury smartwatch category has become a niche, unprofitable business lacking emotional engagement and growth prospects. TAG Heuer’s Connected smartwatch remains a small but meaningful aspect of their business strategy, attracting customers who may not typically purchase traditional watches. However, the overall sales of luxury smartwatches represent a minuscule fraction of the broader Swiss luxury watch market. Despite the challenges, TAG Heuer recently launched the Connected E5, its latest luxury smartwatch featuring proprietary software. While this product aims to combine luxury with modern technology, the company acknowledges that smartwatches are not as profitable as traditional timepieces. The luxury watch segment has suffered from the rise of smartwatches offering functionalities that conventional watches cannot compete with, significantly impacting entry-level and mid-priced brands. TAG Heuer strives to carve out a unique space in this evolving market by appealing to affluent consumers who desire a connected watch that embodies both functionality and luxury.
