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‘Swiss-Made’ Is a Joke, Says Homegrown Maker of Low-Cost Watches

7K views 48 replies 30 participants last post by  Stoshman 
#1 ·
http://www.bloomberg.com/news/artic...joke-says-homegrown-maker-of-low-cost-watches

What do you think?


Goldgena is a startup aimed at clarifying where watches that are marketed as Swiss truly originate.

Just when Swiss watchmakers are struggling with the strong franc, weaker Asian demand, and new technologies such as smartwatches, the last thing they need is a threat from within their clubby ranks. But that’s exactly what’s happening.

The Goldgena Project, led by 40-year-old designer Claudio D’Amore, is a shoestring-budget brand that’s open to using non-Swiss components for mechanical watches. Asian parts make production cheaper, and most watches sold under the ‘‘Swiss-Made’’ label for less than 2,500 francs ($2,500) contain some bits from that region anyway, he said.

Swiss Made is an official government designation certifying that a timepiece is mostly made of parts manufactured and assembled in Switzerland. This distinction is given hefty import in the industry, like an appellation d'origine contrôlée for French wine.

“Swiss-made is a joke,” D’Amore said in an interview in his downtown Lausanne office. The Swiss-Italian has spent 13 years designing watches for brands such as TAG Heuer, Parmigiani Fleurier, and Montblanc.
Goldgena is testing whether consumers are still interested in Swiss-designed watches, without all the glamour hidden inside. Figuring it can cut the price of a timepiece by more than half, the brand is planning to sell automatic watches for as little as $700, compared to the $4,000 starting price for Rolex models. By using a Japanese movement, Chinese assembly, and avoiding middlemen, Goldgena says it can undercut the industry.
Watchmakers are allowed to call their timepieces Swiss-Made if at least half the value of the timepiece’s movement comes from Switzerland and if the watch is assembled in the country. Next year, new requirements will require that at least 60 percent of the manufacturing costs of the entire watch, including the strap and case, are Swiss.

The country’s four-century-old watch industry has been suffering recently. Exports have dropped for 10 months. Switzerland makes about 2.5 percent of the world’s watches each year, but it gets more than half the revenue in the 38 billion-franc market because Swiss-Made timepieces command higher prices, according to Rene Weber at Bank Vontobel AG.

Three companies make the majority of Swiss watches: Swatch Group AG, whose brands include Omega and Longines; Richemont, which makes Cartier and IWC; and Rolex, which also makes Tudor.

Watch Out

Competition is increasing just as smartwatches sap demand for lower-end watches. Websites such as Borrowed Time have popped up, lending people luxury watches to wear to parties. Swatch shares have slumped 27 percent in the past year, while Richemont’s stock is down 34 percent.
D’Amore plans to raise money through crowdfunding and hopes to garner some 10 million francs by the end of September in order to make 5,000 to 10,000 pieces, which he’ll sell online. The first models are planned for next year. Without much of a budget for advertising, D’Amore has taken to the Internet in an attempt to attract consumers with punchy YouTube videos. One shows a scene from the Clint Eastwood Western, A Fistful of Dollars, overdubbed with dialogue that reflects the project’s rebel tone.

Consumers Decide

Goldgena is surveying consumers to see if they would be interested in cheaper non-Swiss-Made watches.

So far, 63 percent of website visitors have voted for Swiss-Made, in proportions of either 50 percent or 99 percent. Still, 348 out of the 947 have said no, which shows there may be consumer demand for an Asian-assembled automatic watch. Goldgena will wait a few weeks to gauge consumer interest before it makes a decision as to which route to follow. D’Amore said he’d prefer the non-Swiss-Made route.

Goldgena’s watches would most likely put pressure on entry-level brands with a price tag of 500 francs to 2,000 francs, according to Edouard Meylan, chief executive officer of H. Moser & Cie., whose watches start at $15,000.

“The risk is not so big, as I don’t think that many customers will see and assimilate the Goldgena Project,” he said. If the upstart brand does succeed, however, it could force some other brands to consider abandoning the Swiss-Made label.
 
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#4 ·
I guess the gist is that the comments are coming from someone who worked for the major swiss brands. But he's making it sound like no one has thought (or tried this) before.... like every other start up micro brand. Exactly.


Correct. I mean they have been doing a decent marketing campaign, emailing all the blogs and such, posting YouTube videos and heavy social media, but the reality is, through all the hype he is trying to produce it is no different than any start up micro, where most are using Asian movements and assembly. Not sure if he is going the regular microbrand route or going the route of like SevenFriday, but nothing that has not been seen before.
The watch looks ok, but the name "GoldGena" is horrible.


Sent from my iPhone using Tapatalk
 
#3 ·
I guess the gist is that the comments are coming from someone who worked for the major swiss brands. But he's making it sound like no one has thought (or tried this) before.... like every other start up micro brand. Exactly.
 
#5 ·
He's got a tough road a head if he thinks people are just going to accept Chinese assembled watches as equal to their Swiss made counterparts. It'll take a lot more than a micro-brand with a cheesy name to dislodge 400 years of Swiss marketing.

That said, China can manufacture to any level of quality you're willing to pay for. I suspect manufacturing, machining and assembly in China is second to none with the "cheap and shoddy" perception having been created in part due to western companies demanding the lowest possible prices when having Chinese companies producing their products. "You get what you pay for" is an adage the world over, including in Chinese manufacturing.
 
#7 ·
I'll just say this... I think you can get a great watch that isn't "Swiss Made" at a very reasonable cost comparatively and never miss the "Swiss Made" stamp on the dial.
What is a "great watch?" For me it is as simple as this - a watch that meets your specific needs and wants in terms of design, size, and functions and comes with a very reliable movement and quality case.
I'll spare you my opinions on brands as we all know what opinions are like...
 
#10 ·
It comes down to quality and reliability but the brand name is horrible!!
 
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#12 ·
The way the rules are currently written (50% of value) and will continue to be written for the next two years. (60 then 70% of value) Yeah, I think "Swiss Made" is a joke. And then people wonder or mock companies like Invicta who skirt the rules to have Swiss Made put on their watches. As is, its so easy, anyone can do it. A little politics here, some kickbacks there. Sure, we'll look the other way while your watches are being shipped. After all, its good for our economy. We don't do anything here but make watches anyway. Certainly don't believe in fighting wars or anything like that.
I hope Goldgena does well. At least you know what you're getting upfront.
 
#13 ·
Alas and alack, Goldgena rocks my john boat nary a bit.
After 68 years of buying watches I find little luv for the
design.
But those who are moved by Goldgena should support the
brand (as with most new brands) Their call.

1st watch was a surplus A 11 WW2 watch. Bought in 1949.

Been arround the horological block several times.Can't teach
an ole dawg new tricks!!!

Lou Snutt
 
#15 ·
Hey this guy got a story in Bloomberg. Pretty good exposure. Well done on that front.

As far as the brand, i am fine with the name. The ONLY reason we think Breitling or Seiko is a good name is because we know them and they have been around forever. In the very off chance this brand makes it a few decades we might feel the same about it.

For now it is a "micro" micro brand. I don't believe they have even sold any watches yet. That barely makes them a micro brand in my humble opinion.

Time will tell I guess and normally "time" for watch brands is very very cruel...

http://www.goldgena-project.com/?lang=en

Interesting video, with some humor and originality.

 
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#18 ·
Hey this guy got a story in Bloomberg. Pretty good exposure. Well done on that front.

As far as the brand, i am fine with the name. The ONLY reason we think Breitling or Seiko is a good name is because we know them and they have been around forever. In the very off chance this brand makes it a few decades we might feel the same about it.

For now it is a "micro" micro brand. I don't believe they have even sold any watches yet. That barely makes them a micro brand in my humble opinion.

Time will tell I guess and normally "time" for watch brands is very very cruel...

http://www.goldgena-project.com/?lang=en

Interesting video, with some humor and originality.

https://youtu.be/b9fHBh2ipzc

The videos are amusing. They have a couple uploaded now to Youtube. I agree Seiko has been around quite a few years but disagree with Breitling. The original company went under in 1979. Ernest Schneider, from Sicura, took over the firm and registered it under the name MONTRES BREITLING S.A. in Granges.
 
#16 ·
"GoldGena" sounds like the name of a pole dancer in a Russian Mafia Cocktail Lounge.
 
#21 ·
Man, does this bring back memories! Thanks for posting this.
 
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#23 ·
The difference between this company, and many of the "Swiss" brands he is going after is that the Swiss brands (or even well established Asian brands) have history that can't be replicated. No upstart company is going to be able to touch that until they have been around for some time (unless they buy the name and rights to an older defunct company).

One of the reason people will pay over $8k for a new Submariner is its history. It took over 50 years to get to where the model and brand is today.
An upstart micro-brand could theoretically make a new watch that is in every way shape and from as good or better that a Rolex, but that won't make people buy it.

By using a Japanese movement, Chinese assembly, and avoiding middlemen, Goldgena says it can undercut the industry.
^^^Sounds like every other non-Swiss watchmaker out there.

Good luck to him, he is getting enough attention and publicity that he should have a good run with this project.
 
#24 ·
Garrick said: "One of the reason people will pay over $8k for a new Submariner is its history. It took over 50 years to get to where the model and brand is today.
An upstart micro-brand could theoretically make a new watch that is in every way shape and from as good or better that a Rolex, but that won't make people buy it".

A very valid point and one of my favourite discussion topics. And I would like to add: people won't buy it for $8K. There is a border to cross where actual production costs, profit margin and customer value for money ends and prestige, brand recognition and let's face it, some watch snobbery starts. And like you said, that is a very tall order for a start-up. There's a reason why the 'big guns' place so much emphasis on their heritage and true heritage cannot be made up.
 
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#25 ·
Heritage and history have to start somewhere though. At one point, even Rolex was the new guy. Who knows who the next "Rolex" will be. Maybe one of these micro brands, maybe a company that's still just someone's idea.

I would hate to believe that there's no room at all left for someone to start a watch company and become successful and well respected, even in an already pretty saturated market.
 
#30 ·
Another new micro brand of watches with Japanese movement and made in China. Why would Bloomberg even print a story about this? Oh, because it's a Swiss watch company with a ridiculous sounding name that in no way make it sound like it is trying to exude luxury out of a 500.00 USD watch. Obviously, Mr. Claudio d’Amore (personally, his name sounds more like a watch brand: "I'm wearing my Claudio d'Amore watch") must have some connection to get his story on print from a well known publisher.

Personally (another one), I wouldn't buy a Swiss watch from Switzerland with a Japanese movement, just as I wouldn't buy a Japanese watch from Japan with a Swiss movement. It just doesn't seem right.
 
#31 ·
Missing some logic here

So a cigar tore brand goes out of business. That makes Breitling less than a stellar watch?

Timex has history and heritage. add Waltham and Hamilton etc..

Elitist to ignore yjr jewelry aspect a watch gives

One an list many superior watches being ignored by the current crop of watch lovers today

I should mention one with more value than most. Look at the Jean Richard brand

Or Daniel Jean Richard... I have owned 2 and the Paramount I have beats 90% of watches out there

Loss off MSRP may be 90% after a while but no one can argue the watch has what it takes
to fit into a top tier
 
#32 ·
Someone set me straight on this: aren't ETA movements respected as very good quality movements that last a lifetime with proper care?

Lately, I've seen some articles and viewed some videos that seem to disparage ETAs as sort of generic, "off-the-shelf," almost blue collar movements that a true watch connoisseur would never tolerate on his wrist.

What's the big picture here?
 
#33 ·
Thing is, there are different grades of ETA movements (like the 2824-2 for example). The 2824-2 in a Squale or Steinhart is not built to the same tolerances as the 2824-2 in a Tudor. Some of it is just brand snobbery, some of it is justified. Most common ETA movements are reliable quality movements that will operate as well and last as long as their Japanese counterparts. Movements are important to the watch, but in my opinion should not be the entire basis for your purchase. They are but one component to the entire package.
 
#34 ·
While I agree that Swiss Made has now become a joke it only applies in certain cases.

Swiss Made on a Rolex is NOT a joke.

Swiss Made on a Zodiac IS (unfortunately).

Most people don't know about the "over 50%" rule. I was saddened to find out about it some time ago and I'm finding out now that next year they're upping the threshold to 60% which is a small step towards the right direction.

I actually believe that one of the reason swiss watches aren't doing so well is because of this rule right here. Although the biggest influencers are, as the article stated, the economical situation across the globe and new trends in technology, accessories and gadgets.
 
#35 ·
Watch collectors and those who can afford expensive watches along with the maintenance required are in a league of their own ( so to speak ) many cannot afford or want an expensive watch and want a good looking watch that fits their tastes. A Nomos mean zip to an Invicta buyer by and large

I'd love a JLC but don't want the hassle of maintenance and worry about damaging it

A Rolex 2824 is rebuilt, much like a blue printed auto engine for racing. Same for Breitling.
Both have great CS, protect their image as best they can ( I really doubt it at times due to grey market )

Breitling bought a company that breaks the movement down, polish and new and better sings, gaskets etc. all are rated was Chronometers. So not your cigar store watch as I mentioned above. I spent a huge amount of money recently to buy a watch I wanted for years and still don't regret it. In fact I won't ever sell it either. So its again, something I valued more than the money.
 
#38 ·
Use the un-subscribe function for this thread and don't look back :D No one will force you to read this ;)
 
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#39 · (Edited)
Me thinks my previous post will stand on its merit. I was being a little tongue in cheek with my thoughts. I mean really, you can pick apart this subject of Swiss Made until the cows come home. It does get tiresome, at least for me. I realize I can unsubscibe, so thanks for that. Also, I know it
is very important to some that the watch that says Swiss Made is actually so. Myself included. From what I've been able to glean from Google and other forums that as long as the United States says that a watch movement determines the country of origin, thus permitting any watch brand so long as the movement is Swiss Made the watch may proclaim such on the dial or caseback IIRC. Swiss Federation be damned. Am I wrong here?
 
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