Mercedes-Benz did the same with their entry level cars. Class A and B, specifically, did you forget the pickup Class X? Class A and B have engines from Renault, it's just a MB badge on top. Class X was all Nissan with an MB badge. Marketing works. Brands are out there to profit not serve us. This will make omega and swatch popular again, and make people want the real Speedmaster. It had that affect on me. I went to the boutique to check out the real Speedmaster in stainless.
I agree that marketing works. However, the MB / Renault / Nissan pickup collaboration is not common knowledge. I know the Class X is actually a Nissan Navara pickup, which Renault re-badges as the Renault Alaskan, but the MB version uses a Renault diesel motor (Nissan has not had luck with making diesels, whereas Renault had enourmous success with it for many decades, hence their collaboration under M. Ghosn et Cie). There are a few similarities between those cars on the road, biggest one being for the rear latch on the tailgate. At the same time, I have a friend who works for Dekra which inspects MB dealers. When the Class X arrived with Renault stickers in the engine bay, the garage manager had the apprentice mechanics spend all day removing those stickers and applying new MB ones, lest a customer open the bonnet and see "RENAULT" plastered all over their shiny new Merc's engine bay. So yes, people who spend a lot of money on a brand that offers a luxury image (look at Omega's brand ambassadors) then expect a certain level of "exclusivity". What Swatch Group has done here is remove the exclusivity, meaning normal punters can get an expensive Swatch branded with Omega for cheap (compared to the cost of an Omega).
I am not convinced this will make younger people want to buy an Omega or a Swatch, it is more likely going to entice Omega owners to buy a "beater" Second Watch (which is what the name Swatch actually means). It will also likely bring in customers who wish they could afford an Omega, but can't. But this is a double-edged sword.
I hope I am wrong, but I do not see this improving brand image of Omega in the long run.
What Swatch Group may find themselves creating is similar to what the French luxury brands did in the early 2000s. With expensive luxury sales stagnating in Europe, French luxury brands began searching for other sources of income, they settled on the "low hanging fruit" (more money) consisting of selling T-Shirts et al with their logo on it for €50 to €100 to "regular punters". The Burberry Scarf being an example.
When the fit hit the shan during the 2008 financial crisis, there were no more €50 to €100 punters, and at the same time the actual wealthy considered the brands to now be tainted by the proletariat (there was a 4 hour long exposé documentary on this on French television back then, with CEOs of the luxury brands explaining what happened and how it would not happen again, essentially begging the affluent to come back). If you don't think so, take a look at the number of new vraie-faux luxury brands that never existed before in Europe's main streets and "luxury factory outlets" created to protect the older luxury brands from this same thing happening again.
I don't blame the affluent really, why should they spend €4000 on a jacket that has the same logo as something someone else is wearing who only paid €50? In their minds "luxury" should also mean "exclusivity". If not, what is the point?
Now draw that parallel to watches. Is Omega going to lower their prices on a stainless Speedy? Not likely, it is already one of the best bargains in "luxury" watches today (compare the prices of a bog-standard Speedy to a bog-standard Daytona or Zenith Chronomaster).
So, no. In the short terms this may be a good marketing stunt. But in the long run I do not see this as a good move on Swatch Group's part. I hope it works for them, but history has proven that moves like this usually end in disaster.