Competitors

By Sarah


Nick Hayek Jr., boss of Swatch, keeps claiming it:

"Swatch is about provocation"

Swatch has grown over the past two decades into one the world's largest watch companies, with $3.5 billion in sales last year.

But Hayek recently decided to reduce the number of Swatch models to 80 from 155 in a bid to cut costs: Analysts say Swatch is hampered by high costs of manufacturing in Switzerland, the strong Swiss franc, and competition with cheap watches from Japan and China.

Switzerland's traditional dominance of the international watchmaking market began in the 1970s. The arrival of digital technology gave rise to a new breed of cheap Asian watches and to a new generation of giant Japan and Hong Kong-based industrial manufacturers. The Swiss market, with its tradition of small, often family-owned firms, and its continued focus on more expensive, labor-intensive mechanical movements, was caught by surprise by the gains made by such brands as Seiko and Citizen, both Japanese.

• A brief company description:

Seiko watches are synonymous with Japan. The phrase Seiko means exquisite, success or miniature. The company was born in 1881.

Dedicated to technology advancement and precise manufacture, the Seiko Company has repeatedly staked its reputation on performance, acting as the Official Timer of the Olympic Games in Tokyo, Sapporo, Barcelona, Lillihammer and Nagano. 

Seiko's design innovations include the world's first quartz watch.

"Seiko is renowned for pioneering new sophisticated watch technologies to provide its customers with incredible levels of accuracy as well as a superlative ownership experience." These are the words of Seiko, the manufacturers from Japan.

•  Customer insight:

Seiko customers name some criteria to explain their preference. First, there is the "good value for money" criteria: customers feel like Seiko is an affordable watch and has great accuracy. Second, they claim the watches have a style that is never out of fashion. And last, they mention a great desirability.

• A brief company description:

The company was established in 1918. The founding fathers selected the name "Citizen" so it would be "Close to the hearts of people everywhere".

During the last 85 years, Citizen has expanded its business and achieved recognition as a global brand. The past 25 years period has coincided with the company's dramatic rise to its current position as the world's largest watchmaker (http://www.citizenwatch.com).

More recently, Citizen has achieved a new position as leader in ecologically friendly timekeeping with its Ecp- Drive collection of light powered watches. 

• Customer insight:

Citizen lovers also mention the good value for money criteria and the stylish look of their watches. But the whole eco- friendly mechanics launched by Citizen in the arena of watches offered the brand an image of trend- setter: to them, a Citizen watch is like a pioneer that is to be possessed. 

But then, why are Swatch watches still so popular? The Swatchers know. These watches are not only stylish and affordable: Swatch watches are Swiss-made and come with Swiss quality movements. The company brings out new designs twice a year, which helps keep the watches unique: with so many styles to choose from, chances are, you won't come across anyone else wearing your watch. You may even be buying a collectible watch. You could buy a Swatch for as little as $60 and find it becoming a collector's item in a few years - Vivienne Westwood designed a few and they are now serious collector's items costing many times what you would have paid for them originally. Swatch watches are for those who want a watch that's affordable, expressive, individualistic and, above all, fun.They express who you are, they suit your personality. 

And then there is an intangible factor Mr. Hakey would claim:

"Swatch is an icon".