TAG Heuer F1 Partnership: A Smart Move in a Tough Market?
TAG Heuer's F1 Partnership: A Bold Move to Dominate
TAG Heuer returns as F1’s timekeeper in a $1B deal. Can it sustain growth in a slowing watch market?
TAG Heuer's return to F1
- $1B LVMH Deal – TAG Heuer F1 partnership makes them the official timekeeper & the first Monaco GP title sponsor.
- Immediate Impact – Store traffic is up double digits, and now the top watch brand on Instagram.
- US Growth – F1’s booming US market aligns with TAG Heuer’s largest revenue source.
- China Lagging – Swiss watch exports are down 26% YoY, but F1’s Shanghai return offers an entry point.
- Long-Term Play – 20% of revenue invested in F1 activations; CEO calls it a “marathon, not a sprint.”
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Senna, McClaren, Redbull, Monaco —TAG Heuer’s F1 partnership has long been a strategic pillar of the brand’s identity. Now, with a $1 billion deal securing its return as Formula 1’s official timekeeper and title sponsor of the Monaco Grand Prix, the LVMH-owned watchmaker is doubling down on its motorsport roots. But in an industry facing economic headwinds, can this TAG Heuer F1 partnership sustain the brand’s momentum?
TAG Heuer F1 partnership - Luxury sports strategy.
On January 6, LVMH officially announced TAG Heuer’s return as Formula 1’s official timekeeper, solidifying the TAG Heuer F1 partnership as a key pillar in the luxury group’s sports strategy. This follows an October 2023 deal in which Liberty Media and LVMH signed a 10-year, multi-brand agreement, marking one of the most significant luxury sponsorship moves in motorsport.
As part of this high-profile activation:
- TAG Heuer takes over timekeeping duties from Rolex, reinforcing its deep racing heritage.
- Moët & Chandon becomes F1’s official champagne, celebrating podium victories.
- Louis Vuitton designs bespoke race trophy trunks, elevating the championship’s prestige.
- The pitlane exit would have a 1.2-metre TAG Heuer clock.
- LVMH steering group had been set up to coordinate VIP experiences for around 120 people each race weekend.
This deal cements TAG Heuer’s position as the crown jewel of LVMH’s Watch Division, leveraging Formula 1’s 1.5 billion global viewers to dominate the luxury timepiece market.
TAG Heuer’s F1 partnership will provide new chief executive Antoine Pin who was appointed in September from LVMH stablemate Bulgari, a platform to cut through the strong headwind the luxury watch industry is battling. He succeeds Julien Tornare, who moved over to Hublot after 8 months on the job. The group’s watch division is headed by Frédéric Arnault, son of LVMH chairman Bernard.
Luxury watch exports are down and many brands have put staff on short-hours contracts as retailers reduce orders in a bid to deplete bulging inventory. However, the TAG Heuer F1 partnership may be catching a draft. Though LVMH does not disclose revenue figures by brand, a recent report by Morgan Stanley suggests that TAG Heuer was one of the few luxury watchmakers to increase sales last year. The report estimates that TAG Heuer’s revenues rose by 9 per cent to 670 million Swiss francs, contrasting with the industry average decline of 2.4 per cent. While Pin did not confirm Morgan Stanley’s figures, he indicated that they are close to the actual numbers.
Why Luxury Brands Are Entering F1
TAG Heuer F1 Partnership isn’t the first luxury partnership in F1. French racing driver Pierre Gasly appeared at Paris Fashion Week for Louis Vuitton. From Lewis Hamilton’s Dior deal to Aston Martin Aramco and Elemis luxury is firmly taking its place in the F1 Paddock. LVMH’s deal is a superb expression of that but luxury brands are steering into the sport’s newfound global appeal, leveraging its exclusivity, prestige, and growing cultural relevance. Formula One’s evolution into a lifestyle ecosystem offers luxury brands new ways to connect with affluent, experience-seeking consumers.
F1 is now the most-followed sports series in the world with a global TV audience of 1.5 billion. Since 2021, global interest in F1 has added roughly 50 million new fans, according to the report, making it the fastest-growing annual sports competition in the world.
Formula 1 is no longer just a European motorsport—it’s a global phenomenon. Thanks to Liberty Media’s aggressive expansion, including Netflix’s Drive to Survive, new races in Miami and Las Vegas, and a rapidly growing US audience, the sport has added 50 million new fans since 2021.
For TAG Heuer F1 Partnership is simple. According to CEO Antoine Pin, speaking in Business of Fashion foot traffic to TAG Heuer stores jumped double digits in January following the announcement of the deal. On social media, TAG Heuer is now the most engaged watch brand on Instagram, surpassing Rolex and Omega.
F1’s growth in the Americas is undoubtedly a significant advantage for luxury sponsors. TAG Heuer’s largest market is the United States, where the Americas contribute one-third of its revenue. F1 has always enjoyed strong support in South and Central America, and now the USA is joining Canada in embracing the world’s leading motorsport.
Key stats:
- Miami GP attendance: 275,000 in 2023 (up from 243,000)
- Largest-ever US F1 TV audience: Miami GP 2023
- Swiss watch exports to the US: $4.4B in 2024 (up 5%)
For TAG Heuer, F1’s expansion into the US is perfectly timed. New races in Miami, Las Vegas, and Austin bring a Monaco-level spectacle to the world’s biggest watch market. If TAG Heuer plays its cards right, it could dominate where even Rolex has struggled.
A Billion-Dollar OVERTAKING MOVE
LVMH’s F1 investment extends beyond TAG Heuer. Moët & Chandon is the sport’s official champagne, while Louis Vuitton crafts custom trophy trunks. But TAG Heuer’s role is arguably the most critical, reinforcing its status as the crown jewel of LVMH’s Watch Division. F1’s previous timekeeper, Rolex, had a decade-long reign. LVMH’s willingness to outbid Rolex signals not just a marketing shift but a strategic war for dominance in luxury watches.
Pin said he will deploy F1 to promote each of the company’s five current model families, with the Formula 1 line typically being the company’s entry-level product line. At LVMH Watch Week last month, TAG Heuer added new pieces to the Formula 1 collection, priced at circa $5,000. A more accessible line at Watches and Wonders Geneva, in April.
Pin also said a new version of TAG Heuer’s connected luxury smartwatch would be released later this. Whether this will use F1 to protect it as opposed to participation sports like Cycling or running remains to be seen. According to Morgan Stanley, TAG Heuer’s revenue grew 9% in 2023, outperforming the -2.4% decline of the wider industry. If this trajectory continues, the F1 deal could prove a masterstroke rather than a marketing expense.
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China: The Missing Piece?
While TAG Heuer is thriving in the US, China remains a weak spot. The country now accounts for just 2 billion Swiss francs in exports (down 26% year-on-year). Pin admits TAG Heuer is “under-represented” in China, but F1’s return to Shanghai this season could provide a fresh entry point.
Will Chinese consumers embrace luxury sports watches? Next month, F1 will return to China for the first time since 2019. TAG Heuer’s long-term F1 play could bridge the gap in one of the toughest luxury markets.
A Marathon, Not a Sprint
TAG Heuer isn’t just a sponsor of F1—it’s integrated into its DNA. TAG Heuer’s rich F1 history offers further price premiums and product development opportunities. Title sponsorship of the Monaco GP to partnerships with Max Verstappen and Red Bull Racing, the brand has a multi-layered presence in the sport. But sustaining momentum is key. As Pin puts it, “This can’t be business as usual year-on-year.” With 20% of revenue earmarked for marketing, TAG Heuer is playing a long game—one that could redefine its standing in the luxury watch market.
The question remains: Will the TAG Heuer F1 partnership outpace the competition?
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