THE BIRTH OF
THE SWATCH
INTRODUCTI
ON
Prior to the 1950’s
•
Swiss dominated the Swatch industry
•
Watches were made with jewels, considered as high priced financial investements,
as with fine heirlooms
From 1951
•
Low cost competition emerged : US time introduced the disposable watches
bearing the Timex brand name
•
The introduction of Quartz Technology from 1970 (more sophiscated functionality,
significantly low cost, Japanese manufacturers )
Late 1970’s: Dilemma
Switch watch makers had refused to embrace the quartz technology and insisted
on making high end mechanical watches. They could not complete with other
watch making companies in cost of production.
Continious decline of market share
Resulted in the free fall f the Switch watch industry
Why was Swatch so sucessful ?
In what way was the Swatch different
then any watch the industry had ever
seen ?
Success of
Watch
Unit sales increased rapidly and reached 31,5 million by 1993,
generating more than SFr2000 million accumulated profit
In 1993, SMH’s production of watchesn grew to 87 million units, giving
SMH a world market share of 9%
The entire Swiss watch industry benefited and commanded 55% of the
world total value in 1993
It’s becoming a trend for people to wear Swatch
