[speedmaster]

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Caught this news story earlier today.

ANALYSIS-Swatch move could force watchmakers to turn to Asia 04:15 Hours ago
"PARIS/ZURICH, Feb 22 (Reuters) - Swatch Group's plan to stop supplying rivals with key components threatens the "Swiss made" seal on which the industry rests and could force watchmakers to source from Asia or simply go out of business. Industry experts believe Switzerland's watch brands have become too dependent on Swatch Group and have not invested enough in engineering, preferring instead to splash out on fancy marketing campaigns featuring famous sports stars and actors. "It is clear that a tightening of the supply market coupled with the need to redefine the business model could turn a few brands to quick and cheap sourcing alternatives in East Asia," said Pierre Landolt, Chairman of the Sandoz Family Foundation, which is behind high-end watchbrand Parmigiani Fleurier. "Watchmaking is one of the few global markets where Switzerland enjoys a position of leader. And the label 'Swiss made' is an essential reason for this," he said. Swatch Group said in December that it wanted to stop supplying the rest of the watch industry with important parts, broadening a move taken a few years ago to cut deliveries of watchmaking kits, also known as ebauches, from 2011 onwards. Chief Executive Nick Hayek accuses some watchmakers, without naming them, of being hollow brands that invest little in the craft and spend millions on glamorous ad campaigns. "We want to stop this supermarket attitude," Hayek told Reuters in a recent interview. "Some players have preferred to just invest in marketing and not in the most important thing, which is the content of the watch.""
http://www.forexyard.com/en/news/AN...atchmakers-to-turn-to-Asia-2010-02-22T153746Z

 

[CurrentTime]

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Thanks for the info. It's been interesting, reading how this has developed. I wonder how the Swiss watch industry will look in a few years? Should continue to be interesting.

 

[WATCHURSELF]

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I wonder what the NON Swiss Watch Industry will look like in a few years??

what will they be peddling then??

Ltd Ed Japanese Movements????

i could care less about the exclusivity of the Swiss movement - especially quartz -that's a joke

but i guess that's JMHO!!!

 

[toecutter]

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I can't say I disagree with their logic.

 

[Spaceview]

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Seiko, Citizen and Sea Gull seem to be in position to capitalize on this the most. I can see a future with more kinetic, spring, Miyota movements followed by Sea Gull becoming a major player from China......We may soon be saying.... Swiss who?

 

[toecutter]

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I can see outfits like Sellita stepping up to fill some of the void.



Most watches companies do not make their own movements. Quality watch makers buy their movements from mostly ETA, the quasi-government owned movement powerhouse. In 2010 however, ETA will stop selling its movements to outside companies. It will continue to provide movements for it's house brands, of which there are several. ETA is part of the Swatch Group which makes a number of brands as seen in the link. When ETA stops providing movements to out-side brands, they will have to go elsewhere for movements.

Sellita is a growing movement maker in Switzerland, but has had a bit of a copycat history. They mostly copied ETA movements. Can they do this? Well, probably, at least in the US. Most ETA movements have been around for a while and in the US Patents last for 20 years only. Because movements are machines, the only intellectual property protection they would have is a patent, and presumably the European patent laws are similar to those of the US. Take the ETA 2824-2 movement, which has been around since the 1970s. Because over 20 years has passed since then, copycats are free to make the movements, the only barrier would be technology. Meaning Sellita and other movement makers would have to have the proper machinery to produce the delicate movement parts. China on the other hand would never even think to check on infringing intellectual property rights before copying something.

We can assume that Sellita has such technology because large brands such as Invicta have been buying from them at large for years. It is predicted that Sellita will step in ETA's shoes and start providing movements on a mass scale in the next few years. Right now, Sellita has a reputation for being a bit lower quality, but that will change in the coming years with high production, and consumer demand. We shall wait and see what role Sellita has in the next few years.

(Courtesy of ablogtoread.com)

 

[TVDinner]

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I wish I made watch movements right about now....

 

[Chief1301]

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I disagree... I mean other than the movement any yahoo (I pointed this out in another thread...meaning me) can put a watch together. And one of the biggest IMHO is Invicta from a "we buy the parts and make a watch" stand point. But Invicta is forward thinking in the design area. But without a movement of your own (if you know the Ford diesel story and it's break-up with International Trucks you get it) Ford was stuck with having to buy International Diesels that were crap. Until Ford started making its own again.

So back to watches, Rolex like Swatch makes everything they don't rely on anyone for anything but the delivery. So unless your making your own movements what are you going to do? Its not like everyone can ramp up and make a handful of movements for a watchmaker that only turns out a couple hundred units a year at $200K. While these places might be skilled craftsmen and make a lovely watch, why invest in the money to only make a handful of movements and maybe you only make one. Whereas now you can choose from many different movements to suit your needs.

I think what you will see if all the 100's of small watchmakers in that area form a union and make their own movements and only sell to member businesses, much like Swatch did. There is a big enough market if all the small companies got together to make making movements cheap.

Actually I think you will see a Chinese movement maker drop a plant in Switzerland and set up shop making "Swiss made" Chinese movements...LOL How about a Miyota 7750 Swiss Made? They have the money and ability. OR the next top name in watches is going to be stamped "Asian Made" at the 6:00 postion...

 

[djpop]

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THERE ARE A NUMBER OF WATCH COMPANYS THAT HAVE STARTED MAKING THERE OWN MOVEMENTS IAM SURE IN ANTICIPATION OF THE COMING CHANGES, TWO I KNOW OFF THE TOP OF MY HEAD ARE BRITLING AND ORIENT.