Smartwatches: How they could impact the largest Swiss watch company, Swatch Group
Date
2014
Authors
Desrochers, Jeremy
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Bachelor of Commerce Best Business Research Papers
Abstract
Swatch Group is the largest watch producer in Switzerland and one of the largest in the world. The group was formed during the Quartz crisis when the Swiss watch industry nearly collapsed in the face of a market flooded with cheap Japanese Quartz watches. Nick Hayek was hired to save ASUAG and SSIH, the two largest watch groups at the time. He combined both companies and saved them by introducing the brand Swatch, a low-end watch line that produced a product that was emotional, high quality and had a great brand. He designed a watch that could be produced as cheaply in Switzerland as in China and this is what led to their success. Today the company is called Swatch Group and owns 18 brands including Omega and Tissot, and is highly vertically integrated, being able to produce and sell its watches independently. Ever since the introduction of the Swatch, the company has been innovative having introduced a smartwatch in 1999 and in 2004. Today, new technologies like Bluetooth, Wi-Fi and smartphones have given rise to new smartwatches from giant-tech companies like Samsung and smaller start-ups like the Pebble. Many Swiss watch makers deny that the smartwatch is a threat but with changing consumer behavior among the younger generation this could lead to another crisis. Swatch Group is in the best position to turn this threat into an opportunity having expertise in producing watches and brands.
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Citation
Desrochers, J. (2014). Smartwatches: How they could impact the largest Swiss watch company, Swatch Group. Bachelor of Commerce Best Business Research Papers, 7, 15–33.