Watches are coming back into fashion, with Gen Z reportedly buying more frequently, and spending higher amounts, than their Millennial counterparts. And now, a Swiss brand, Tissot, is cashing in on the new craze.

Tissot has had more than 170 years to refine its product, selling watches that are known for quality and affordability. The company is currently one of the largest watchmakers, manufacturing the most volume and boasting the most sales for traditional Swiss watches under $1,000.

But the advent of smartwatches, especially the Apple Watch, created new trends, opportunities, and challenges in the watch industry, especially as they have continued to capture substantial market share. Tissot responded with a multipronged strategy, leveraging market research and an online presence to appeal to a younger audience.

To start, Tissot gathered extensive data about market trends, which it used to analyze the design and functionality preferences of modern customers. The analysts it hired also delved into which secondary factors might be influencing purchasing decisions, including price and brand reputation.

These assessments revealed that younger customers would respond to a brand that positioned itself as a stylish, luxury watchmaker, while also offering value for the price. To capitalize on the revealed demand for vintage items for example, Tissot released the PRX model in 2021, a reimagined version of a 1970s model with the same name. The company also chose to differentiate itself through a proximity to sports culture, while catering to the needs of more tech-conscious consumers.

Once the brand expanded its product categories, Tissot took to social media, actively creating marketing materials for Instagram, Twitter, and Facebook. The brand also partnered with younger influencers and ambassadors, then relied on conspicuous product placements in film and television, to reach a digitally focused audience. Finally, Tissot created immersive brand experiences, offering pop-ups that integrated virtual reality into the experience. Customers were encouraged to try on watches virtually, appealing to new audiences in both digital and physical ways.

Tissot has also pushed to expand globally, creating partnerships with multiple international retailers. Already a popular choice in the United Kingdom and France, the company continues to work to establish its presence and popularity in the Chinese market, such as by collaborating with local celebrities to attract a growing consumer base.

Meanwhile, the company offers a consistent stream of public statements, focusing on its core brand values. Tissot actively places an emphasis on ethically sourcing materials, while also implementing sustainable manufacturing practices, including minimizing waste, energy, and emissions. 

The combined strategies seem to be working. The chief executive of the company, Sylvain Dolla, pointed to Tissot’s recent retail expansion as proof. An 8,800 square foot store recently appeared in London, and the company spent 20 million euros to purchase its location in Paris.

Such developments are promising, but analysts still note that the brand’s estimated sales fell to 750 million francs in 2022, pushing it out of the “Billionaire Club.” One analyst at Morgan Stanley asserts that the actual figures might have been even lower. Even if Tissot is performing exceptionally well this year, it has a lot of ground to make up, if it hopes to cross the billion Swiss franc mark again.

Discussion Questions

1. What other initiatives might Tissot implement to boost sales?
2. What are reasons that some social media marketing strategies fail? What can Tissot do to protect itself?

Sources: Robin Swithinbank, “Tissot Says Youth-Oriented Marketing Has Paid Off,” The New York Times, November 7, 2024; “Marketing Strategies Used by Tissot: A Closer Look,” Marketing Strategies Revealed, May 3, 2024; “Tissot Marketing Strategy 2024: A Case Study,” The Big Marketing, https://thebigmarketing.com/tissot-marketing-strategy/