The watch sector provides the highest aspirations in terms of tradition and craftsmanship. However, the industry also produces environmental and social impacts and does not achieve proper ecological standards. Switzerland, as a global leader of gold mining for the luxury watch industry, plays a more significant role than people might think as the country hosts most of the well-known in the world. The environmental and social impact of this industry is substantial, mainly caused by its raw materials sourcing. The demand for large amounts of valuable raw materials and lack of transparency among several organizations are of a real issue of concern. The raw materials sourcing like gold is responsible for extensive environmental footprints, including air and water pollution, as well as soil degradation and deforestation. Significant inputs of land transformations and toxic substances are accountable for the destruction and fragmentation of the ecosystem. Increasing transparency and additional motivating sustainability approaches should be an increase in the list of priorities of the companies within the watch and jewelry industry. This study, therefore, aims to investigate the sustainability approach applied throughout the supply chain of TAG Heuer.

Therefore, the main objective of this case study research paper is to provide a comprehensive review of the sustainable approaches applied, adopted, or implemented throughout Tag Heure’s supply chain system. The findings revealed from this case study will go a long way in shedding light on some of the key or current issues affecting the supply chain in the luxury industry sector that emanate from the economy, society, and the environment. This research paper aimed at answering the following key study questions:

Can the supply chain of the luxury watch be sustainable in terms of social, ethical, and environmental?
What value can sustainability development bring to the business, society, and the environment?
What are the challenges towards Sustainability that luxury brands face?
Can luxury brands achieve long-term success without considering Sustainability?

Therefore, to answer the above study questions, this research case study analysis report aimed at utilizing evaluation methods to provide a comprehensive examination of both the internal and external (micro and macro) issues of factors affecting Tag Heuer, which is a luxury watch brand. To answer the above questions, the paper will utilize case study research design and qualitative interview data collection tools and analysis in gathering pertinent information, data, or intelligence on the supply chain operations and processes of TAG Heure.

1.1. Research Design and Methods

1.1.1. Research Design: Case Study and Qualitative Research

According to Shuttleworth (n.d.), the case studies as a significant part of the research design is a concept that has rapidly evolved over the past years. Moreover, case studies are useful research tools in conducting a comprehensive investigation of the imminent trends and patterns affecting a specific study scenario. In this case, this paper aims at analyzing the sustainability approaches that are applied throughout the supply chain of luxury watch brands. Additionally, (Shuttleworth n.d.) also pointed out that the case study research design is a useful research tool that is used in testing various hypotheses or assumptions.

Ideally, Shuttleworth (n.d.) defined case study research design as an in-depth evaluation of a specific or particular scenario that is reliably utilized in narrowing down a broad industry or sector into an easily understandable research topic. Therefore, this paper will mainly use the luxury watch brand. TAG Huer as the main focus point in understanding or comprehending the various internal and external sustainability factors or issues affecting the operations of the supply chain systems or processes of the luxury watch brands across the entire globe. Moreover, to effectively understand the trends within the supply chain of luxury watches. The case study evaluation will utilize SWOT and PESTEL analytical tools or frameworks that will further deduce the supply chain operations of the company by revealing the individual internal and external factors that can affect the activities of the entire business. .

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1.1.2. Merits and Demerits of Case Study Research Design

According to Shuttleworth (n.d.), the case study research design is useful since they allow a lot of the research details to be easily collected in providing an in-depth review of the specific research focus. Additionally, the case studies also allow for scientific experiments, and they are useful since they provide the researchers with sufficient or adequate knowledge concerning the operations of the study topic or research area. However, despite these merits, the main demerit of case studies is that the data obtained may not be considered to be general to the entire general population. Additionally, some of the case studies may not be deemed to be scientific. Finally, researchers may find it very hard to draw definite or specific conclusions or a summary of the particular study issue. From this evaluation of the research design, it is evident that case studies research design alone may not be reliable in revealing all the factors affecting the sustainability of the supply chain of luxury watches. That is why; this paper will utilize the macro and micro case study analysis of the various trends and patterns witnessed within the supply chain processes of TAG Heure.

1.1.3. Qualitative Research Design: Semi-Structured Interviews

According to (SOCIAL GROUP, 2019), the interviews are forms and types of research tools that are subjected to similar principles that govern social interaction between two persons. Additionally, this paper mainly focused on using interviews to conduct its qualitative research design because of its numerous advantages. This semi-structured interview was conducted with two internal employees for gathering qualitative information for this study. It used the interview protocol since it ensures that all interviews get carried out in a similar semi-structured format hence a uniform, comprehensive manner. The interviews were conducted via email exchanges with two employees who are from the supply chain department and retail department. The main reason for selecting the interviewees was because they had over five years of experience, and they fully understood the internal operations of the company. The sample questions and answers are detailed in Appendixes.

Overall, the interviews were very successful as two interviewees provided valuable information about sustainable practices that TAG Heuer applied. The first interview was with Sonia, supply chain supervisor from Supply Chain department, when the question was asking how the company sources the raw materials if the employees are treated equally with living wages, Sonia replied with an affirmative reply. Nevertheless, she is not able to provide further information for oversea transportation. The second interview was conducted with Benedicte, who currently works for Retail division as After sales manager, provided very detailed information about the well-structured terms that how a customer can get their purchased products returned, repaired, or recycled.

Throughout the session, the interview touched on SCM issues within the supply chain and retail department. It is noticeable that TAG Heuer has already put consideration and effort to improve sustainability throughout its supply chain. However, in this rapidly evolving and volatile world, the luxury watchmaker and industry itself still face risks and challenges to ensure the supply chain is running in a resilient and sustainable manner to protect the environment, support people, and long-term business growth.

The primary or key advantages of using interviews as data collection tools or strategy include the following; interviews are very flexible when compared to other data collection methods. Secondly, unlike other data collection methods, the use of interviews is believed to have a better data response rate to the respondents who cannot write and read. Thirdly, the interviewer may not be able to judge some of the non-verbal attributes and behaviors emanating from the respondent.

Moreover, the interview may be conducted in a quiet and private location. However, despite the advantages of interviews, as data collection tools, using interviews as data collection tools might be a costly option. The interviews may also result in a lot of biases, and the interview research studies may also provide very less anonymity, which is believed to be a significant concern for some of the respondents who value privacy. Finally, unlike other data collection strategies, it is not easy to find and organize a sample population or respondents who are representative enough to participate in the research study or answer the interview questions.

Summary: Research Methodology’s Case Study and Qualitative Interview

1.2. Sampling Method, Size and Participants

According to Robinson (2014), sampling techniques are essential in selecting representative sample respondents in a qualitative research study. Additionally, Robinson (2014) informed that to understand the sustainability approaches that are applied throughout the SCM processes of luxury watches, it is not possible to interview all players in the industry. Therefore, sampling strategies are useful in identifying a select group of persons who will have the privilege of participating in the study by providing their honest response.

Therefore, for this research study to draw useful and reliable conclusions, it is prudent to decide carefully on the sampling strategy that will be used during the interview. Ideally, the paper used the non-probability sampling strategy that generally involves the selection of representative respondents by basing on convenience and the reliability of information obtained from the respondents. The interview in this research was divided into two parts, and two respondents (Benedicte and Sonia) were selected to attend the interview. Sonia answered part one of the interview section while Benedicte answered part two of the interview.

1.3. Obstacles and Limitations

The main limitation and obstacle to this research study was the time which limited the ability to analyze and collect reliable information effectively. Another limitation of the research study was the non-availability of relevant, empirical, and dependable secondary data that fulfill the research objective and answer the study questions.

1.4. Data Analysis and Research Interpretation

The data collected using interviews were coded and analyzed using Excel computer software. Ideally, the research data analysis was conducted after the comprehensive period of data collection to triangulate and find meaning from the collected raw data. In this research, the data was obtained from the qualitative interview and the case study evaluation that evaluated information on the sustainability approach that is applied throughout the SCM processes of luxury watches.

1.5. Research Ethics:

This research paper was conducted in line with the prevailing moral and ethical principles. The researcher paid a lot of attention to all of the ethical concepts and values, for instance, opting for credible sources, trustworthiness in presenting the findings from the research method, reliability in informing on the sustainable issues throughout the SCM process of luxury watches, accountability and the highest form of integrity. Moreover, it is prudent to state that the references and statements used were cited correctly and that no alterations were made in manipulating the actual truth. The interview was conducted and recorded using English as the primary language, and the findings were effectively coded for valid interpretation in the data analysis section.

RESULTS/FINDINGS

2.0. Introduction:

The main component or aspect of Sustainability in the supply chain of luxury watches revolves around making ecological friendly and clean operations that range from the sourcing top of the production processes that take place within the entire supply or distribution chain. To comply with the ethical codes of practice as established by RJC also Responsible Jewelry Council, most of the major luxury watch brands in Switzerland are working towards updating and refurbishing their manufacturing operations and work-spaces. The luxury watch brands in Switzerland also engage in sustainable ecological practices that involve investing in sustainable geothermal heating, water, and air purification processes.

According to the code of practices established by the RJC (Responsible Jewelry Council), for players or firms to be issued with a clean bill certificate of cooperation, they should put adequate measures or policies to address the human rights, social rights, promotion of ethical and ecological practices. It is prudent to confirm that TAG Heuer is one of the major luxury watch brands in Switzerland that has implemented steps towards the development of sustainability initiatives in the pricing. Location of their production plant, product development, and adhering to the environmental policies or regulations on various sources of renewable or clean energy.

As a significant move towards reducing environmental pollution and carbon emission, the company has focused on producing a limited number of jewelry pieces per collection and products or services that are environmentally friendly. This section of this research paper will focus on evaluating and analyzing how TAG Heuer carefully applies all of the sustainable concepts and approaches throughout the entire supply chain management processes.

2.1. Case Study Analysis: Sustainability Issues within TAG Heure’s Supply Chain

This micro and macro analysis is an essential strategic step in evaluating the various internal and external factors that have the potential or are affecting the performance of the luxury brand: TAG Heuer. To effectively comprehend the sustainable issues emanating from the supply chain of the luxury watches niche or sector, this case study research will conduct a comprehensive environmental evaluation. It can also apply analysis that will reveal some of the market trends, patterns, and issues that have the potential of affecting the operations of the business.

In the luxury industry or sector, there are several services and products that are continually being developed and added to the industry. However, for the players in the luxury watch sector like TAG Heuer, there is an urgent need to comprehend and analyze some of the sustainable issues. These can be within the supply chain that can affect the operations of the business.

This information and intelligence are vital and very essential in helping the management of TAG Heuer to continually work on improving its operations by tapping onto the available opportunities using its strengths. Therefore, this micro and macro evaluation will go a long way in helping to provide a “bird’s eye view” on the supply chain operations of the company and in answering the above-identified study questions. The identified supply chain issues within TAG Heure’s SCM processes include sourcing, production, distribution, retail/consumers, and finally, closed-loop.

2.1.1. Raw Material Sourcing:

TAG Heuer outsources for most of its raw materials, for instance: stainless steel, ceramic, titanium. These raw materials are imported directly from China. Some of the individual components of the raw materials are also pre-produced in those manufactures. Moreover, supplies such as gold or diamond are sourced by the company from Africa, South America, and the Middle East. Some of the rare precious materials used in the design of luxury watches are produced in house, in TAG Heuer’s laboratory (for instance the spiral in carbon). TAG Heuer signed the Kimberley Agreement in the year 2003, which indicates that the company has always followed the underlying regulations of the KPCS. Finally, every diamond piece used in the design of the luxury watches is certified as conflict-free (About Tag Heuer, n.d).

TAG Heuer
In-Source and Out-Source of Raw Materials
In-Source		Out-Source
Advantage	Disadvantage	Advantage	Disadvantage
a) Independence	a) More employees needed	a) Less investment in terms of internal organization (such as recruiting, planning, resourcing)	a) Hard to find the right supplier.
b) Easy plan and communication	b) Specific knowledge needed		b) Uncertain of the international market and the pricing.
c) Less investment in logistics	c) More investment and new infrastructure needed		c) Dependent on the supplier.

Table showing: Summary of TAG Heuer’s in-source and outsource of raw materials

2.1.2. Production: Where is labor? Do they have a living wage?

The transportation of the local employees who live in and around la Chaux de Fonds strongly benefit from transportation that covers. Additionally, some of the employees from TAG Heuer manufacture come from other countries, and TAG Heuer provides all necessary documents for their employees to travel in between the respective countries. The company respects personal space, and extra working hours are forbidden. Finally, TAG Heuer strongly imposed a culture that encourages their employees to only work during regular working hours.

2.1.3. Distribution: Transportation/inventory

TAG Heuer has its collaborator for all logistics, mostly with DHL. In Europe, all delivery is done by road. International delivery is by water; in case of emergency, the air is the other option. All distributions are planned 6-8 months, the subsidiaries of TAG Heuer receives the goods, then distribute to each store. Inventory of each retail store is done every two months for each collection; at the end of the year, unsold pieces shall be shipped back to Switzerland.

2.1.4. Retail/Customer: Packaging

All products are transported in boxes, with a watch cover case, warranty card, and an instruction manual. Paper protection is provided around the watch cover case for external scratch. Customers leave with a fully protected product. These watch cover cases are made from cardboard covered by leather; the case can also be used for other purposes such as storing accessories or other watches.

2.1.5. Closed-loop: Circular Economy

TAG Heuer also encourages its customers to recycle, and reuse, there is a warranty policy to support international buyers to be able to reach retails from all over the world. All TAG Heuer watches are repairable, even old collections from 20/30 years ago. TAG Heuer still produces spare pieces for vintage watches, to encourage all customers to keep their wrist piece and pass on to the next generation. The unsold products are taken back into manufacturers, most of the products either be shipped to outlets for sale.

2.2. Qualitative Analysis of Interview Data:

2.2.1. Coding/Indexing of Interview Transcripts

Qualitative Interview Analysis
Interview Coding/Indexing
Interview Part 1 & 2
			Respondents Score
#No.	Interview Question	The benchmark for analysisAnalysis	Sonia	Benedicte
1	How does TAG Heuer source for its diamond or gold,	Africa, Middle East	1	0
	Does TAG Heuer have a sustainable approach?	Yes=1, No=0	1	0
2	How TAG Heuer produces watch, do they have a sustainable approach?	In house production in 4 factories located in La Chaux de Fonds	1	0
3	Do they treat their laborers well?	Yes=1, No=0	1	0
4	How TAG Heuer consider producing less emission?	The company is putting up a new strategy that will produce fewer pieces per year	0	1
5	How about packing or any retail process involves Sustainability?	Packaging and shipping takes ten days	0	1
6	What is the need of the customer in the term of Sustainability?	TAG Heuer provides a two years warranty worldwide and after-sales service for all watches	0	1
7	What is their expectation?	Customers assume a watch piece shall last long and can pass on from generation to generation	0	1
8	Do they or if the product is broken, can customer return or repair.	Yes=1, No=0	0	1
9	How to close this loop,	After three years if a luxury watch product did not include sale out, TAG Heuer will ask our retail teams to ship back the watch, we then send off to different outlets for resale,	0	1

Table showing: summary of the coding of the qualitative interview transcripts

2.2.2. TAG Heuer took steps in Improving Sustainability in its SCM

This qualitative research study aimed at analyzing the sustainability initiatives, strategies, and approaches applied within its supply chain in the TAG Heuer luxury watch company. The above tabular representation of the findings from the interview provides a clear and better understanding of the sustainability issues or approaches applied by TAG Heure from the production to the sales of the luxury watches. Firstly, the interview respondent revealed that TAG Heuer sources for its Diamond and Gold from Africa and the Middle East. However, the systems and measures used by TAG Heuer to source for these rare and precious items are in line with the underlying sustainable approaches as dictated by organizations like RJC, which TAG Heuer is among the members.

It is essential to state that TAG Heuer does not provide transparent information to all members of the public, which indicates that the company does not meet specific international sustainable regulations and standards. By producing less piece of luxury jewelry annually, TAG Heuer’s operations will be sustainable since the firm will emit fewer emissions. Moreover, the distribution systems by the company are sustainable since the firm takes from a week to ten days to package and ship products to other nations. Additionally, the company also has a return policy for defective products. The organization also aims at having a sustainable model for circular business through the implementation of a closed-loop supply chain that ships back products that did not sell after three years to relocate them to other sales premises.

2.3. Recommendations

Even though Tag Heuer acknowledges the importance of Sustainability, which could help the company to achieve long-term success, the sustainability development of the company has not reached a certain required level according to the WWF report (2018). Along with this study on Tag Heuer, the recommendation sustainability improvement in the supply chain process of the company is classified into (1) internal and (2) external recommendations.

2.3.1. Internal Recommendations:

The top management should support the sustainability initiatives by increasing funding aimed at improving production, sales, and labor, among other operations by the company. The organization should also implement better measuring and monitoring system that will evaluate the performance of the sustainability initiatives. Additionally, the R&D (Research and Development) department of the company should also focus more on improving the process of a factor in Sustainability in the operations of the company. Finally, TAG Heuer should concentrate on developing a module that will enforce the concept of Sustainability.

2.3.2. External Recommendations:

TAG Heuer, in terms of environment, still needs to minimize the effect throughout a product’s general life cycle. This implies that the brand still needs to have its requirements for sustainable supply chain approaches to compete in the industry. It has also been observed from the analysis that sustainable strategies in the supply chain bring about significant changes not only in financial terms but socially and environmentally as well.

TAG Heuer assesses the sustainability requirements of the end customers, brings together decisions of product and supply chain design play an essential role in the improvement of sustainable supply chain management. While, the design of the product examines future costs associated with it, both in reverse and forward flow, which relies on the configuration of the supply chain, for instance, the capacities and capabilities of location and number of partners in the supply chain.

The whole process can be carried out by focusing on all stages of the product life cycle and integrating a closed loop in the supply chain. Nevertheless, to reinforce sustainable efforts, firms should hold suppliers accountable for sustainable performance. Eventually, manufacturing companies can only attain sustainability goals if they set high standards for their suppliers and stop working with suppliers that fall short. The company should also implement traceable systems with all the suppliers to identify any defects in the final product and to understand where problems in the final product quality emanated.

Following other industries’ footsteps, companies within the watch and jewelry industry are progressively adopting more strategies of integrated Sustainability, with more transparency in their supply chain. However, these companies are still only in the initial stages of this process. Sustainability should be a significant part of business practices and should hence get embedded and adopted in business culture and strategy beyond the scope of the supply chain.

3.0. CONCLUSION

Sustainability has come to the spotlight in the most recent decades when there are countless warnings of the scarcity of natural sources, climate changes, and continuous natural disasters that occur continuously, as well as other relevant social issues in recent years. Sustainability development is considered as one of the top strategies for every business to achieve long-term success and bring actual value to the stakeholders. The fact is in the highly competitive industry or market; many companies often focus on economic performance rather than social and environmental issues. Nevertheless, as one of the most profitable and promising industry, luxury is suggested to lead the sustainability development for the better world through luxury is still in the center of the argument of whether Sustainability is against business strategies of the luxury brand.

This case study aims to have a better understanding of what sustainable approaches have been adopted and implemented within the supply chain by the luxury business to respond to current issues associated with environment, society, and economy. The report also aims to identify the gap between sustainability integration and sustainable development in TAG Heuer, and critical challenges that the company encounters to achieve its long-term success. Basic on the systematic literature review, the underlying conceptual framework was created to integrate Sustainability throughout the closed-looped supply chain network. In the methodology, various examinations for external and internal of Tag Heuer were carried out to have a better overview of the company and the macro environment. Since the study mainly focuses on the scope of the supply chain, sustainability development basic on this framework was evaluated and analyzed.

The interviews via email were also conducted to get more insights into the company for the analytical study of the case. Nevertheless, the results demonstrate there are still many areas within the scope of the supply chain need to improve. Such as engagement with suppliers in terms of traceability, transparency of production, the commitment from top management is another issue even though the company admitted Sustainability should be part of business strategies that could bring actual value for the society and business itself. Recommendation introduced in the areas of incorporating technology, transparency, process improvement, following other steps made by other players in the industry, improving sales, production, labor, and other operations of the firm.

With a conceptual literature review and case study, the questions addressed at the beginning of the report got clear answered. The supply chain of luxury watches can be sustainable. The luxury watch itself stands as craftsmanship, excellent quality, longevity, and durable. Sourcing is a crucial part of the supply chain in TAG Heuer as it involves mining, which could generate a significant impact on the environment. However, the company must improve the process and engage suppliers with continuous dialogs to align with the organizational and operational strategies, eventually developing Sustainability and adding value to the business and society. Sustainability approach was defined as business environmental responsibility, and economic, ecological, and ethical were regarded as three pillars of Sustainability. In other words, Sustainability generates value internally and externally.

Thus, for business, Sustainability not only can promote the healthy image of the brand but also save production cost with financial benefit. Externally, Sustainability encourages a better and green environment and supports overall human wellbeing. On the contrary, no business can sustain and succeed in the market in the long-term. The notion of “three bottom lines” indicates the success or health of the corporations should be measured not only by the financial line but also by social/ethical and environmental performance. Without Sustainability, first of all, there will be no resources available for any business activities, imagine if there will be no gold or diamond anymore, how luxury watches can be made? Secondly, the substantial unmet market potential can’t be fulfilled with the demands. That means Sustainability can create alternatives to respond to the excess need. Thirdly, the business won’t be able to have significant saving in moves toward eco-efficiency; thus, saving on energy consumption, material use will not only minimize the environmental waste but spending wastes as an optimized financial resource. The company business is not able to gain competitive advantages as well if it doesn’t adopt a sustainability approach. Finally, Sustainability is considered as an essential risk management strategy for the business to encounter future uncertainty.

3.1. Challenges

In this study, factors that impede sustainability development at the level of the supply chain also revealed. And this may contribute to fill the gap of sustainability integration and the practices by exploring the challenges that the luxury sector face. Sustainability practices involve systems, processes, and supply chain levels that require both internal and external stakeholders. The existing problems, such as lack of recognition and awareness from stakeholders, professional guidance, and knowledge, as well as preferent commercial pressure, be overcome in the competitive luxury industry. In early research (Perry and Towner, 2013), financial constrain, lack of awareness and insufficient information are defined as the three top barriers that luxury companies are most struggling to avoid. These barriers may result in conflicts between commercial objectives and sustainability development, the intractability of the process, difficulties in communication and collaboration with the suppliers, and lack of information to decide investments in the sustainable production process.

Nowadays, innovation technology has become even more challenging for a luxury business to adopt into the business model to support sustainability integration. This is mainly seen when the most luxury company still operates under the mindset of a traditional business methodology without a commitment from top management or purely lack of awareness. Despite that many studies have addressed that consumers are willing to pay more for eco products, as matter as fact, the reality does not support this argument. Therefore, it is not realistic to say that Sustainability is the DNA of the organization by many studies and corporate sustainability reports. There are still considerable works to be done just to understand the fundamentals of Sustainability and engage suppliers to improve sustainability development. Therefore, it is necessary to share the concept and value of Sustainability to all stakeholders throughout the whole network to ensure the supply chain-based sustainability approach developed, deployed, and implemented successfully.

3.2. Limitation and future research suggestions

This study focused on the case of TAG Heuer, a luxury Swiss watchmaker, how the company applied sustainability practice throughout its supply chain network. Certain limitations need to claim despite the attempt was to make this study more extensive. The strength of the case study was the ability to gather the industry evidence, incorporate documents (both academic and industrial), interviews via email, direct observations. Nevertheless, the interviews were not able to conduct in the form of face to face due to location constraints, as well as some confidential reasons. And since most of the answers from the interviewees are mainly basic on a standard of the business process and code of conduct, the overall results didn’t provide a broader review of sustainability performance. Therefore, a survey study is suggested, including internally with employees, externally with customers could bring more valuable quantitative information.

Some areas could be considered for future research, such as market complexities, political and economic uncertainties, as well as innovative technology, which could affect the strategy and decisions on sustainability development. Therefore, it would be very interesting and useful to conduct future research that could involve more with maximizing the internal and external capabilities, including agile management, technology development, to integrate Sustainability in the circumstance of the fast-changing environment. Besides, to advance supply chain sustainability by sharing resources and capabilities with the network could also be another subject to explore.

4.0. Appendix:

4.1. Interview Part 1:

Department: Supply Chain department

Position: Supply chain supervisor

Interviewee: Sonia

Date: 10.02.2020

Survey Method: Email

Question 1: How TAG Heuer sourcing diamond or gold, do they have a sustainable approach?

Sonia: Our sourcing for diamond and gold mainly come from Africa and the Middle east, since we belong to the LVMH group, we have internal access to purchase these sources. We use certified diamonds and 18k gold on some of our products. The primary raw materials we use are stainless steel, ceramic, titanium. As a member of the RJC System, our source of gold and diamond from the mines to retail is certified.

Question 2: How TAG Heuer produces watch, do they have a sustainable approach? Do they treat their laborers well?

Sonia: Our watches are produced in house. Each part is done in our factories based in La Chaux de Fonds. We have four manufactories that fabricate different components in a watch; our raw materials are mostly imported from China; unfortunately, I cannot give you further information. Our transportation is either by marine or by road.

Since the products are made inhouse, this reduces the energy used in between the production of a product. Therefore, less investment in transportation and less pollution for the environment.

There is a fixed procedure for the fabrication of a wrist-time piece. 70% of the work is done by machines (controlled by line workers), and the ending parts are done directly by hand, for instance, putting the hands in a watch and close the case.

Concerning our employees, we do our best to maintain a healthy relationship with them, also with our suppliers. The advantage of TAG Heuer is that we are a multinational brand that belongs to the largest luxury group in the world. Under this circumstance, our structure, our system is very mature and runs smoothly. Recently LVMH has put in place the program of LIFE, where each brand shall always consider the sustainable approaches towards our business. And we are doing it right now, trying to put in place different strategies for an eco-friendlier environment and production.

4.2. Interview Part 2:

Department: Retail department

Position: After-sales manager

Interviewee: Benedicte

Date: 10.02.2020

Survey Method: Email

Question 1: How TAG Heuer considers producing less emission? How about packing or any retail process involves Sustainability?

Benedicte: TAG Heuer is putting down new strategy in producing fewer pieces per year, it is also in the requirement of the current market, consumers intend to like more limited pieces since purchasing a watch is like putting down an investment.

Packaging and shipping need a longer time to deliver to other continents. Usually, it would take a few months before products arrive in our retail stores. In Europe, delivery is done by road with our partner DHL. We now have changed; we limit our delivery service to once a week or every ten days.

Question 2: What is the need of the customer in the term of Sustainability? What is their expectation? Do they, if the product is broken, can customer return or repair.

Benedicte: We have two different types of movements, in quartz and automatic. We provide two years warranty worldwide and after-sales service for all watches, even the vintage pieces. We recommend battery changing every three years and the maintenance of an automatic watch every 4-6 years.

If a wrist-piece is broken, we repair the watch, either changing the spare parts of the watch or a full replacement of the mechanism; there is a warranty of 1 year for the repairing service. Knowing the replaced mechanism then shall be re-worked on and can be reused again after reparation.

Customers assume a watch piece shall last long and can pass on from generation to generation. Therefore we have a strong highly qualified horologer team who do all the reparation of the watches.

Question 3: How to close this loop, What TAG Heuer does in this part?

Benedicte: Normally, a lifecycle of a watch is around three years. After three years, if the product did not include sale out, we will ask our retail teams to ship back the watch. We then send off to different outlets for resale, and we also organize internal LVMH private sales only dedicated to LVMH employee who wish to purchase a nice wrist-piece with reduction.

We also recycle our products with new collections, when the piece is still new, we can change some of the components inside the watch and the color of the deal to fabricate a new watch. The most important part of the product is the case, and the inside of it, 40% of it is reusable.

5.0. References:

About Tag Heuer., (n.d.) Retrieved from https://www.tagheuer.com/us/en/company/about-us.html

Robinson, C. Oliver. (2014). Sampling in Interview-Based Qualitative Research: A Theoretical and Practical Guide. Retrieved from https://doi.org/10.1080/14780887.2013.801543

Shuttleworth Martyn., (n.d.). Case Study Research Design. Retrieved from https://explorable.com/case-study-research -design

SOCIOLOGY GROUP., (14^th March 2019). Advantages and Disadvantages of Interview in Research. Retrieved from https://www.sociologygroup.com/advantages -disadvantages-interview-research/

Case Study: Tag Heure

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RESEARCH METHODOLOGY

1.0. Introduction: