Swiss Watches Are Still Thriving in the Market
How can Swiss watches survive in the modern market place? The prices associated with these watches are hundreds of times higher than their generic Chinese counterparts. Naturally, the market should be flocking to the cheaper versions as is the case with every other sector of life. But, the Swiss watch industry is still thriving in the market. In fact, the sales numbers of these luxury Swiss watches have increased significantly in the last two years alone.
How is this possible? The rich and affluent people of the Arab world as well as many other parts of the globe consider Swiss watches like proud jewelry items that they can showcase to their friends at the social events and public functions that they frequently participate in. As the developing world is improving its share of billionaires, these newly affluent people from China, India, Russia etc. are vying to showcase their riches to their fellow citizens. All these people and their love for jewelry helps the Swiss watches and the industry to keep on selling at a steady pace.
Who Really Creates Swiss Watches?
Who is really responsible for the creation of these luxurious Swiss watches? As is common belief, are these Swiss watches created by small artisans and craftsmen operating out of their homes? That was true in the past and is not true at all in the present context. In fact, a huge portion of the Swiss watch making business is controlled by just one name: the Swatch group. They control the industry like no other watch maker was ever able to in their history.
The Swatch group owns some of the prominent brands of watches like Breguet, Glashütte Original, Blancpain, Omega, Rado, Longines, Tissot, Mido, Certina, Hamilton and of course, Swatch. You just look at that line up of prestigious watches and you should gain a fair bit of understanding on the sway the Swatch group has over the Swiss watch industry. Together, these brands made a third of the overall sales numbers of Swiss watches in the year 2012.
The level of Swatch’s dominance does not end here. When it comes to the manufacturing of Swiss watch movements, the group control ETA who in turn produces two thirds of the entire range of watch movements created in the year 2012.
Nivarox-FAR is another subsidiary of the Swatch group and is responsible for the creation of a whopping 90% balance springs used in the luxury watches created in the last year. As balance springs are responsible for regulating the watches, the importance of the watch group increases here.
Swatch is Responsible for the Rise of Swiss Watches
How did Swatch became such a leading figure in Swiss watch making? At the time they arrived on to the scene three decades back, they were able to capture a huge share of the existing market. The resultant huge profits helped them to purchase many of its future subsidiaries. Once these brands of Swiss watches came under the watchful eyes of the Swatch management, they regained their fame and vitality.
In addition to the control of the market, Swatch is responsible for supplying watch components to many other brands that actively operate in the market.