Babin:success is measured by your number of mistresses

It is reported Tag Heuer cheif executive Jean-Christophe Babin thinks that Tiger Woods sex scandal might have made some executives at Tag Heuer, there were positives and negatives. As in China, the sales have increased by Tiger Woods sex scandal.

"Very quickly we have taken sides,” Babin said. “We stay with him but, as he wants more privacy and as he won't play for a while, in the countries where the issue is quite sensitive we won't use him much.”

Woods's image has been removed from the company's advertising in the US. However, it remains on the Tag Heuer website. But the use of Woods' image has been increased in China. “In China conversely you have Tag Heuer with Tiger Woods everywhere because with the Chinese it rather increases their esteem,” Babin said. “In China, by tradition, your success is measured by your number of mistresses.”

Economics professors Victor Stango and Christopher Knittel, from the Graduate School of Management at the University of California, Davis, have made a report. It pointed the scandal cost shareholders of Woods's sponsors up to $US12 billion ($13.5 billion).

They looked at the shareholder returns for eight of Woods's sponsors – although not Tag Heuer – comparing them with the performance of the stockmarket as a whole plus that of those companies' major competitors.

“Our analysis makes clear that, while having a celebrity of Tiger Woods's stature as an endorser has undeniable upside, the downside risk is substantial too,” Stango said.

But Babin said Tag Heuer's experience differed. He said the company gained market share in December and sales of the one product Woods co-designed, the golf watch, had the highest sales ever in that month.

“I can tell you, on Tiger, there is zero damage,” he said. “So I don't know how they calculated that [figure]. Yes we received some letters off angry people because we are siding by Tiger so the question is, were they Tag Heuer users or not? Most were not. Would they ever acquire Tag Heuer? Most not as well.”

The scandal topped off a challenging year for Tag Heuer, courtesy of the global financial downturn. Figures on the Swiss watchmaking industry as a whole showed that total watch exports from that country fell by 22.3 per cent last year.

Yet, in Australia, sales still grew, although Babin said this was in single digits not double digits, as had been experienced in previous years.

“Generally speaking most markets suffered last year,” he said. “Some have bounced back already spectacularly. China is a good example.”

With the company giving Woods privacy to deal with his personal problems, his involvement with the 150th anniversary celebrations is unclear.

However, Babin is certain of one thing – when he does return, it will be huge.

“As a global brand it would have been stupid to stop partnering with him because he still is and will remain for the next 10 years the best golfer ever, that's for sure,” he said.

“He will resume golfing and when he will resume golfing it will be one of the biggest media [buzzes] ever.”