Interesting economist article about swiss watch industry.
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    Interesting economist article about swiss watch industry.

    Swiss watchmakers: Time is money | The Economist

    interesting read. mentions the ETA limiting etc.

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    Member RBrylawski's Avatar
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    Re: Interesting economist article about swiss watch industry.

    Quote Originally Posted by jl11 View Post
    Swiss watchmakers: Time is money | The Economist

    interesting read. mentions the ETA limiting etc.
    Interesting article and a NON-YAY for prices rising even more..........
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    Re: Interesting economist article about swiss watch industry.

    I'm not familiar at all with this business, nor the technical aspects of constructing a quality movement but:

    What are the odds of political push to force Swatch to divest this part of the business?

    It appears to me that whenever a company develops in-house movements the prices of their watches goes beyond what I am willing to pay (I get the economics of that process though)

    When the above happens, isn't your local AD or watch shop less likely to be able to work on your watch?

    As fast as seemingly everything is copied and commoditized nowdays, why haven't alternatives taken more market share faster?

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    Re: Interesting economist article about swiss watch industry.

    nice article, this sums up pretty much all the idea: 'No one buys a Swiss watch to find out what time it is.'

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    Member drunken monkey's Avatar
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    Re: Interesting economist article about swiss watch industry.

    Nice little snippet as a taster but it does ignore the wider scheme of things and other important notes such as geography.
    The one prime example of this is the purchase of the Bulova brand (and thus associated workshops) by Citizen.

    All a foreign body has to do is to establish a physical manufacturing presence in Switxerland and ta-da! Swiss Made parts.
    Of course, by foreign body, I am glancing sideways at Seiko here...
    Except that doesn't take into account any possible limits of doing that. There might be, for example, some sort of regulation regarding who can or can't simply set-up/open shop in the regions in the old fashioned "guild" manner, although let's not forget that Seiko is already a member of the Societe Suisse Chronometrie despite not being able to qualify for COSC certification.
    Last edited by drunken monkey; February 17th, 2013 at 05:45.


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    Re: Interesting economist article about swiss watch industry.

    Quote Originally Posted by drunken monkey View Post
    The one prime example of this is the purchase of the Bulova brand (and thus associated workshops) by Citizen.
    The acquisition of Bulova by Citizen is a non-event, it's been quite a while since Bulova has been a watch brand of any real significance. However, Citizen's acquisition of La Joux-Perret and Arnold & Son should be a bigger source of concern for Swiss watch brands.

    Watches by SJX: Citizen of Japan acquires La Joux-Perret and Arnold & Son
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    Member drunken monkey's Avatar
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    Re: Interesting economist article about swiss watch industry.

    Quote Originally Posted by mleok View Post
    The acquisition of Bulova by Citizen is a non-event, it's been quite a while since Bulova has been a watch brand of any real significance. However, Citizen's acquisition of La Joux-Perret and Arnold & Son should be a bigger source of concern for Swiss watch brands.
    My point wasn't to do with the brand but the physical presence the brand has in Switzerland (although I should probably fact check the location of Bulova's manufacturing). The same applies to any other purchase of Swiss located manufacturing by a foreign body with regards to the Swiss watch manufacturing industry.

    By the same token, I recall an interview with the founders of the "new" Frederique Constant brand where they stated that it was important for them to be located in Geneva specifically so that as well as being a legitimate Swiss watch, they could also put Geneve on their dial.
    Same sort of thing in that it is simple geography that is of importance to the labelling.


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    Re: Interesting economist article about swiss watch industry.

    Cool article thanks for sharing.
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    Re: Interesting economist article about swiss watch industry.

    Quote Originally Posted by drunken monkey View Post
    My point wasn't to do with the brand but the physical presence the brand has in Switzerland (although I should probably fact check the location of Bulova's manufacturing). The same applies to any other purchase of Swiss located manufacturing by a foreign body with regards to the Swiss watch manufacturing industry.

    By the same token, I recall an interview with the founders of the "new" Frederique Constant brand where they stated that it was important for them to be located in Geneva specifically so that as well as being a legitimate Swiss watch, they could also put Geneve on their dial.
    Same sort of thing in that it is simple geography that is of importance to the labelling.
    I understood your point, but I don't think Citizen needed to acquire Bulova in order to set up workshops in Switzerland, it was more to step up to the middle tier of mall brands. Perhaps it's just me, but I always found the Swiss Made Bulova Accutrons to be a strange beast, since it is an entry level Swiss brand but is somewhat overpriced compared to offerings from Tissot or Hamilton.

    Unlike the Swatch group's entry level brands, wherein all the brands are Swiss made, Bulova Accutrons are Swiss made, but the regular Bulovas aren't, which seems to erode the brand cachet, a bit like Fossil's new range of Swiss watches.

    The foray into high end mechanical complications and movement manufacturing with La Joux-Perret and to high end watches with Arnold & Son does however suggest a much more aggressive stance aimed at not just the entry level Swiss brands.


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    Armida A12; Borealis Estoril; Bulova Accutron II Alpha, Moonwatch; Casio GMW-B5000D, GW-5000, GST-W310; Coach Fulton; Hamilton Khaki Field; Helson Skindiver; Orient 60th Anniversary; Seagull Tourbillon, 1963 Air Force; Seiko SNA089P, SUN025P1; Steinhart OVM; Swatch Body and Soul, Heracles, Sistem51, Uncle Charly; Victorinox Alliance, Infantry Vintage.

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    Member drunken monkey's Avatar
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    Re: Interesting economist article about swiss watch industry.

    The La Joux Perret acquisition is definitely the most interesting of them all; it being a movement manufacturer.
    What intrigues most is the assortment issue with Nivarox being often quoted as being supplier of 90% of balance springs.

    There just aren't that many balance spring manufacturers out there and so any body, be it foreign or domestic would have to start from scratch. That is where the eye falls on Seiko again as they are arguable the most capable entity out there who could, with little problem, set up a presence just for that purpose.
    A Switzerland based Seiko Instruments Inc would be a very scary thing indeed for Swatch Group.


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