LVMH's biggest watch brand Tag Heuer to shut its India office

Tag Heuer, watch brand for luxury group LVMH has finally decided to shut down its subsidiary in India by the end of December.
Tag Heuer

After 15 years in the country, Tag Heuer, watch brand for luxury group LVMH has finally decided to shut down its subsidiary in India by the end of December. LVMH will hand over the distribution of its other watch brand Tag Heuer and Dior to a domestic vendor. The company was going through a sagging experience in its sales and believes that its future prospects will go dim due to country’s tax structure.
As of now LVMH has been handling the marketing, sales and distribution of these brands but now have decided to outsource it to a local company. The development comes within weeks of the government easing its single-brand retailing policy to attract foreign companies to open their own stores.
Amit Chaloo, General Manager, LVMH Watch, said “the company will leverage an existing partnership with a local agent which also sells other watch brands.”  "The company's decision to change distribution channel is purely based on dynamic re-deployment to meet ambitious business objectives. It has nothing to do with governments plan to clamp down on black money," he said. The Tag Heuer office in Delhi will stay open for some time to ensure an orderly transition to the agent and to guarantee proper after sales service, Chaloo said.
"Tag Heuer is exploring the best options for its employees. We will try our best to have internal mobility roles within brands in India for our employees," he said.
The company is in the process of shifting its marketing, logistics and other departments, but the service centre will function for another year.

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