India's growing economy is no secret. Even is the continuing global recession, this nation with a labor force of over 516 million people helps account for the fourth-largest economy in the world. And according to the National Foreign Trade Council, India has replaced Germany and is now one of the top four countries (along with China, the United Kingdom, and the United States) where multinational corporations have planned to relocate their employees. Accordingly, in early February, a major Indian financial paper went so far as to declare 2009 as "The Year of India."



So it is not at all surprising that Tag Heuer, the La Chaux-de-Fonds, Switzerland based luxury timepiece manufacturer, has announced that it will be attacking the Indian market (and the world at large) by launching 53 new watch models with the goal of achieving a ten percent share of its domestic luxury timepiece market. Presently the company has about 200 watch models that are available in five different series.

Tag Heuer's President and CEO, Mr. Jean-Christophe Babin has said that aside from its plans for innovation, Tag intends to maintain its double-digit growth. Currently, Tag Heuer's growth rate is approximately 40% and it is maintaining an 8% share of the estimated 250 million dollar Indian luxury timepiece market. Mr. Babin would like to see that 8% share climb to 10%.

Of the 53 new models, the Indian watch buying public will be sure to see many varieties of Tag Heuer's most popular luxury watches such as Grand Carrera (their premium, auto-racing inspired collection), Carrera, Monaco, Aquaracer and Formula One.

Although Mr. Babin claims that Tag Heuer's prices are already quite competitive and that they will most likely not be making any price cuts, the company is still predominantly focused not so much on boosting bottom line profits as they are in improving their overall market position. Mr. Babin has said that there will be more Indian's joining the ranks of the middle class in 2009, and thus he believes that the starting price for Tag Heuers of approximately Rs36,000 will give Tag an advantage in reaching those would-be buyers over competing luxury brands which start at Rs80,000.

There are some concerns, however. Even though Tag grew by 40% in India last year, they still closed 10 stores, including six boutiques across the country. Mr. Babin has said that those closings were because the stores were either "not executed properly" or in bad locations. In fact, Babin claims that they have already opened two more boutiques in India this year.

In total, Tag Heuer has 70 retail stores and six standalone boutiques in 25 different cities all across the country.