The Swiss Watch Industry at the precipice…PART 2. The laws in Switzerland used to only require a watch be 50% made in Switzerland. As of 2017, that has been increased to 60% with much controversy and criticism over whether that is the best move for the watch industry. This is a fictional narrative that will be published in two parts that outline the issues surrounding the decision. While the characters are real, this story fictionalizes their role in an otherwise real world scenario using real world facts. Enjoy this case study-style narrative discussing the difficult decisions regarding the increases to the requirements to call something “Swiss Made”.
The laws in Switzerland used to only require a watch be 50% made in Switzerland. As of 2017, that has been increased to 60% with much controversy and criticism over whether that is the best move for the watch industry. This is a fictional narrative that will be published in two parts that outline the issues surrounding the decision. While the characters are real, this story fictionalizes their role in an otherwise real world scenario using real world facts. Enjoy this case study-style narrative discussing the difficult decisions regarding the increases to the requirements to call something “Swiss Made”.
Today a new British watchmaking company called Bremont is ensuring the watch industry (and consumers) are fully aware that they are restoring England’s lost horological roots. This article will explore both the good and the bad, hopefully by providing a fair and balanced look at this company that has demonstrated incredible growth.
Forbes has announced its latest list of the most reputable companies in the World and Rolex sits at the top.
How did watch prices get so high? The number one response from watch enthusiasts seems to be “greed” – though “maximizing profits” would be the politer way to say it. Looking at the recent history of watch industry growth, I don’t see evidence for pure greed. Instead, I see companies investing in what seemed to them (at the time) like sustained and unrelenting growth between 2005 and 2015. In this article, I will walk you through the increases in watch prices and why they have gone up faster than the rate of inflation. In the next article, I will explain why all of the sudden people aren’t willing to pay those prices anymore.
Swatch Group is suffering from decreased sales and profits while accruing massive inventory levels over the past few years. The company has recently identified non-specific opportunities for growth in 2017 that seem to have little chance of loosening the quickly tightening belt. While Swatch Group’s self-projected sales growth would be nice, growing inventory levels are something that cannot be ignored. This should leave all of us wondering Is Swatch Group being realistic? Here is my op-ed analysis.
“It’s Complicated”: The American Watch Industry, Federal Trade Commission, and Claiming “Made in America”
Made in America claims in the watch industry have been elusive. Claiming anything is made in America is very difficult and costly in today’s global economy. The US has an “all or virtually” all parts made in the US requirement. Recently, many American watch companies have been rebuffed by the Federal Trade Commission for misleading claims. Watch companies claim the FTC guidelines are vague and put American companies at a disadvantage. To get to the bottom of it, I interviewed the FTC’s lead attorney for enforcement as well as two of the only American watch companies currently making Made in America claims.
It’s that time of year where the Richemont-hosted Salon International de la Haute Horlogerie (SIHH) is over and onto Baselworld (primarily a Swatch-oriented event). SIHH featured some pretty neat watches, especially tourbillons, and a lot of watches made with non-traditional materials. Yet, what was offered seemed unattainable; a celebration of the unattainable in a year that consumers are spending less on watches and sales are cratering.
Swiss watch companies are facing a tough market with sales down 11% in 2016. RAYMOND WEIL is an affordable Swiss luxury watch company that is continuing to innovate themselves through this period, harkening back to the company’s DNA to look for new inspiration. RAYMOND WEIL and CEO Elie Bernheim have choices to make as they navigate this difficult slump in the Swiss watch market.
Episode 2 How the Swiss ended up as the predominant watchmakers has been the result of a series of choices and fate throughout history. However, contrary to common belief, the Swiss have not always been the dominant force in the watch industry. It has only been post-1877 that the Swiss transformed their methods and were able to compete with the rising American watch producing titans Waltham, Elgin, Hamilton, and others.
The luxury watch industry is in one of its biggest slumps in recent history after experiencing years of unprecedented wealth and growth. Is it a result of the economy? Is the industry dying overall? Will the industry fade away forever? How will companies make it through the slump? Who will emerge on the other side? Over the next two months, we will release a 15-article, three-part series devoted to the following topic:
Disruption? The future of the luxury watch industry