Foreign companies in Switzerland?
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  1. #1
    johndozier
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    Foreign companies in Switzerland?

    Why haven't foreign companies (specifically Japanese and Chinese) started making movements in Switzerland in response to ETA's problems in delivering movements to other than SWATCH companies. Seems as if this would be a good business decision, or are their Swiss regulations protecting domestic companies? Regards

  2. #2
    Member RejZoR's Avatar
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    Re: Foreign companies in Switzerland?

    Its their own problem if they refuse to sell ETA movements to others. Asians aren't stupid and will ramp up the delivery in order to supply the demand. I don't understand why ETA is even limiting the supply. Sure, if this means that SWATCH group companies can't get enough movements, fine. But doing it just because they can, well that's just lame.
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    Re: Foreign companies in Switzerland?

    Quote Originally Posted by johndozier View Post
    Why haven't foreign companies (specifically Japanese and Chinese) started making movements in Switzerland?
    Somebody would spot them


    I don't understand why ETA is even limiting the supply
    They had to agree to it as a way of effectively not being in control of the market and having a stranglehold of innovation in it
    https://forums.watchuseek.com/f2/swat...0-a-32717.html
    Last edited by watchma; October 12th, 2013 at 14:15.

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  5. #4
    WnS
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    Re: Foreign companies in Switzerland?

    Apparently Swatch admitted they don't make much money from selling ETA movements. My interpretation is that by cutting the supply to other Swiss watch brands, they can bolster the exclusivity/prestige (and price) of their own watch brands, and hope to profit more in the long run.
    Last edited by WnS; October 12th, 2013 at 14:26.
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    Member little big feather's Avatar
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    Re: Foreign companies in Switzerland?

    Probably Swiss laws....I know that foreign companies (Mfg.)can only operate as partners in Japan and majority must be Japanese owned.
    I'm quite sure China too....In U.S., foreign companies can own anything. We did have a law that only U.S. companies could have Govt.
    contracts for military. Not true anymore, as you may know Fabrique Nationale,of Belgium has a plant in Columbia,S.C.making M-16 rifles.
    Beretta has the contract to make the 9mm sidearm....But they do make them here in the U.S.
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    Member Nikoloz's Avatar
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    Re: Foreign companies in Switzerland?

    that was Mr Hayek desire, eventually decreasing supply of the eta ebauches to other watch companies.
    of course not completely cutting the supply, but to decrease it.
    the problem as i remember from the interview (back when he was still with us obviously) was that eta had to sell the movements due to swiss regulators, and therefore "casers" could make watches and sell them, in the meantime then there was a shortage of movements for the swatch group itself.
    And I assume the makers of the eta calibers does not get the same profit as a watch makers. We have been through this multiple times, with ranting that the watch which houses 200 usd caliber inside sells for over 10 times more, so it's a natural desire to cut back your competitors, and have that huge margin for yourself, considering the fact that swatch group itself are making a watches for every price category and every potential customer. pure justification for the swatch group!

    the impact of chineese companies on swiss watch industry is a different story altogether. Right now it's the other way around completely, asia and china in particular is by far the biggest growing market for swiss luxury watch companies, so as of now they are invading china with their products... :)

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    Re: Foreign companies in Switzerland?

    Swiss movement maker La Joux Perret is a subsidiary of Citizen and then there are posts out there on the web claiming that the Soprod A-10 is derived from a Seiko Cal 4L.
    Last edited by mew88; October 12th, 2013 at 14:47.

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    Re: Foreign companies in Switzerland?

    Quote Originally Posted by johndozier View Post
    Why haven't foreign companies (specifically Japanese and Chinese) started making movements in Switzerland in response to ETA's problems in delivering movements to other than SWATCH companies. Seems as if this would be a good business decision, or are their Swiss regulations protecting domestic companies? Regards
    In the case of the Chinese, because it would be too expensive. In the case of the Japanese, because they can already make movements as good or better than the Swiss ones themselves.

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    Re: Foreign companies in Switzerland?

    Quote Originally Posted by WnS View Post
    Apparently Swatch admitted they don't make much money from selling ETA movements. My interpretation is that by cutting the supply to other Swiss watch brands, they can bolster the exclusivity/prestige (and price) of their own watch brands, and hope to profit more in the long run.
    I have always wondered about that as I didn't think they made much. While supplying smaller brands like Christopher Ward probably has never affected their bottom line significantly, I never understood why they continued to supply their biggest rivals from Richemont and LMHV. Brands like Tag, IWC (lower end), Mont Blanc (lower end), Baume & Mercier, UN, and Bell and Ross are in direct competition with Omega, Longines, or Hamilton, and UN competes with Breguet or Blancpain. Cutting off supplies to a larger company like IWC would make sense as they would have to go elsewhere for movements or Richemont would have to develop their own less expensive movements while increasing costs. Does anyone know if Richemont or LMHV are developing their own brand movements to fill the void or will they purchase their movements from Sellita, assuming they have the capacity to supply some of these larger companies?
    Last edited by Au Hasard Balthazar; October 12th, 2013 at 16:23.
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    Moderator at Large stuffler,mike's Avatar
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    Re: Foreign companies in Switzerland?

    Some already did. Claro-Semag comes to my mind.
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