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You Ask the Tough Questions / Timeless Classics


David:

I think that you ask the right questions (in your message below), and let me focus on one of them.

You ask as follows: "Its the key question for Heuer collectors - how long can we sell Heuers, mainly made in a 20 (1960-1980) year period, amongst ourselves? What will get the next generation of collectors interested in Heuers and grow the collector base? If the base doesn't grow, then neither will prices."

Using the car collecting anaolgy, there is a bit of wisdom that I find interesting. This wisdom suggests that collectors will crave the car that was "hot" when they were 16 years old. That's the age when future collectors begin to think about driving; they read the car magazines, and study the hot cars that they would dream of owning. Then, some years later, when they are able to buy a fun car / collectible car, the one they want to start with is this one that they dreamed of, at age 16.

In my case, this proved to be exactly true -- I was born in 1955; remember sitting in the school library (circa 1971), reading about the Ferrari Dinos, Lamboghini Muiras, and the one that really caught my eye (and that I remember seeing in the Birmingham, Alabama showroom) was the de Tomaso Pantera. Speed ahead to 1988, when (at age 33) I am able to afford a spare car, and I bought an awesome 1971 de Tomaso Pantera . . . bright red . . . just like the one I saw, in the metal, in 1971.

Looking at the world of vintage chronos, it seems that the hot ones (over the last two or three years) have been from around 1957 / 60 through the 1970's. They bagan putting names on the dials of chronos around 1960, and most would agree that these were the absolute "classics" -- Daytona, Speedmaster, Carrera, Navitimer, etc. (In the world of the non-chronos, we see the Submariners emerging a few years earlier.) I believe that most of the people buying these watches over the last two or three years have not been buying the watches that were hot when they were 16 (which would suggest years of birth from 1945 to 1950); rather, they are younger collectors buying the timeless classics (like the best Ferraris, Porsches or Cobras from the 1960's).

It is difficult to make predictions in absolute terms (because I don't know enough about the economy, collecting in various eras, who will be collecting what, 20 years from now, etc.); it is also difficult to establish the place of the vintage Heuers, compared with the other brands. Looking at the vintage Heuers, I would suggest that we have the following things going for the Heuer brand:


  • the strongest pedigree in motorsports / sports timing [the ones the racers wore and the teams used]
  • some legendary model names from the 1960's that have been revived today [Carrera and Monaco; a shame about the failed attempt with the Autavia]
  • some iconic designs [Carrera, Monaco and Autavia]
  • relative affordability and wearability, compared with some of the high-end brands
  • a current marketing strategy on the part of TAG-Heuer that is focusing on the brand's DNA / heritage
  • a current commitment to innovative products, with cutting edge technology [360 / V4 / RS]
  • a current commitment to significant marketing expenditures [events, ambassadors, sponsorships]
  • a community of collectors that shares information and experiences, and is characterized by mutual support / social capital

Throw all this into a bag, and shake it for a couple of minutes, and I'm not sure what we get (in absolute terms [what will they be worth?] or compared with the outcome for other brands [Rolex and Omega]). But I am encouraged that conditions are strong for those who collect the vintage Heuers, and that this is an enjoyable, rewarding hobby in the year 2008!!

Jeff

+++++++++++++++++++++++++++++++++++++++++++++++++++++

: On the vintage front, I think that the future is bright for the big
: brands- Rolex, et al.

: Heuer? Well, as much as I like collecting them, my view is that the
: collectability of the brand will suffer over the next few years
: because it seems no-one is interested in any of their watches
: made from 1985 up to at least 1998- that's a massive gap in the
: time-line and portfolio. The re-edition watches seemed to
: reignite interest in Tag Heuer for collectors and that the
: respect for the heritage has continued since then. Some of the
: new Tag's we saw in May should give everyone great hope- they
: are very special (Carrera 360, Monaco V4, etc) and will
: certainly be collectable.

: Its the same as the car world- the brands that have consistently
: made cars that excite enthusiasts (porsche, bmw, mercedes) will
: always be more collectable than brands that had a glorious
: heritage followed by long periods of difficulty/ mediocrity
: (Alfa Romeo, Lancia, Jaguar, MG)

: Its the key question for Heuer collectors- how long can we sell
: Heuers, mainly made in a 20 (1960-1980) year period, amongst
: ourselves? What will get the next generation of collectors
: interested in Heuers and grow the collector base? If the base
: doesn't grow, then neither will prices.

: The only way this will happen is through new, exciting Tag Heuers
: which drive people to find out more about the heritage of the
: brand. 10 years ago, prospects would have looked bleak on a
: decade of S/ EL's and Quartz, but I do believe there is reason
: for optimism now- I can tell you that most of the people who
: went to the collectors summit will be first in line for a Monaco
: V4...how many Tag Heuers could you say that about?

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