Swatch The World

The watch market is made of numerous companies producing and/or assembling watches. It has been estimated €26 billions in 2010 with a 5% growth since 2009. Needless to say it is very broad one, with products price varying from €10 quartz mass market watches to €10.000.000 exclusive collection masterpieces! It is highly competitive with hundreds of brands, with cheap or fashion or traditional segments. It has a great longevity throughout the years, thanks to the demand that never declined. Brands also have great longevity with examples of Blancpain (1735), Breguet (1775) or Vacheron Constantin (1755).

We can consider two distinct part of the watch industry, which are the mechanical watches and the quartz watches. We usually consider mechanical watches to be of a higher standard. Switzerland is the first watch producer, with other countries such as France, United States or Japan behind. The watch market is also characterised by the high skills it requires producing, especially for mechanical watches, therefore, creating rel high barriers to entry.

Here is a list of some major players in the watch industry:

Name	Date of creation	Nationality
A. Lange & Söhne	1868	Germany
Audemars Piguet	1875	Switzerland
Baume et Mercier	1920	Switzerland
Bell & Ross	1992	France
Breguet	1775	Switzerland
Breitling	1884	Switzerland
Casio	1946	Japan
Festina	1902	Switzerland
Hamiltion	1882	United States
Lip	1867	France
Longines	1832	Switzerland
Omega	1848	Switzerland
Orient	1950	Japan
Rolex	1908	Great Brittain
Seiko	1881	Japan
Swatch	1883	Switzerland
Tissot	1853	Switzerland

Customer Types and Segments

By Julia

Identifying a typical customer of Swatch is a real challenge. Swatch products represent high quality and low price at the same time. A typical customer could be seeking for practicality or a trendy statement peace at the same time. The playful and innovative design  is appealing to teenagers and younger target groups, but Swatch watches has been seen also replacing a Rolex on beach holiday.

We recognize four common consumer market segments: geographic, demographic, psychographic and behavioral segmentation. Geographically speaking, Swatch is global brand and their products are available world wide. When it comes to demographics, the Swatch customers are mainly young and "young in heart". In many families a Swatch watch could be considered as the first watch if a child, when you are still learning how to read a watch. Anyhow, the product range doesn't exclude middle-aged or even senior target groups. Psychographic segment might be the most challenging, but without doubt Swatch fits for customers that value quality, simplicity, practicality and durability. Swatch definitely suits for people who appreciate doing sports and adventures, because the watches can handle splashes and hits. At last but not least, the behavioral segment is based on price sensitivity and customer loyalty. Swatch watches are affordable and offer good value for money. The customers appreciate the possibility to purchase the favorite watch in several colors matching with every outfit. For younger customer, Swatch could be the only brand, but older customers might appreciate also other brands for different occasions. 

To wrap up the customer types, an ideal Swatch customer would be young, trendy, fun loving and price savvy person.

Source: www.quickmba.com/marketing/market-segmentation/

Point of Sales

By Julia

"Swatch products are available in more than 600 Swatch Stores worldwide. They represent the future of retail: state-of-the-art design in prime inner-city space. Each store - from New York to Paris or Tokyo - is as unique as every Swatch design, and always provides the perfect environment for our products." www.swatch.com

Swatch stores are widely spread around the world. As stated at the official website of Swatch, there are actually more than 600 boutiques world wide. Swatch stores are normally rather small, but strategically located. The stores get lots of visitors just because they are available at touristic centers and all major shopping malls.

Swatch Shop in New York

Most of the Swatch Shops are very young, colorful and striking. In some specific location the Swatch Shops are adapted to more sophisticated surroundings.

Shanghai, China

Swatch watches are not only available at their own shops, but also in several major department stores. On top of the boutiques and corners in department stores Swatch is notably represented in airports as well as railway stations. Any significant airport round the globe is most likely selling Swatch, which probably also very common souvenir from trips abroad.

Beijing, China

At the moment official Swatch online stores are available in UK, USA, Germany, Sweden, Switcherland, Japan and France. Anyhow, Swatch watches can be bought online through other retailers websites and used in online stores such as eBay. There are also several website for the collectors to buy vintage Swatch watches all around the world.

Sources: www.swatch.com, commons.wikimedia.org, www.go211.com

Frequency & Value: How much & how many?

By Lisa


Swatch an abbreviation for „second watch“- YOU WANT MORE THAN ONE!

A watch suppose to be a high involvement product with low purchase frequency, but long gone are the time when watches where only worn for functionality and prestige. Nowadays, they are more of a fashion statement.  The choice of watch reflects a shade of your personality. As personality traits develop over time so does fashion.  So talking about the value and frequency of purchasing a Swatch, it is strongly liked to your own manners.

FASHION MANIACS prefer new fashionable models every other season and like to express their personal mood with the right outfit. Collections being updated at least twice a year, Swatch keeps up with the trend speed. In the variety of assortment you will find the watch that’s just right for you. Starting at 38 Euros with the core collection color code, your personal fashion statement is affordable, each time you feel like a makeover. The SWATCH LOVERS might even desire to own the limited editions. The artist specials and collaborations enable the holder to have a unique and rare distributed watch that underlines the individuality. As extraordinary collections are developed, the price rage can go from 40 up to over 200 Euros.  As the trends come and go Swatch provides the desirable products, never the less becoming a status symbol, some Swatches are adorned with jewels and precious stones, finely crafted, a perfect combination of style, affordability and quality for the EASY MATCH CUSTOMER who rather has a timeless, durable model that fits with any outfit. A classic silver model like Irony chrono for women is already available from 75  Euros  adding up to 300 Euros for more exclusive models.

To sum up, due to the strong fashion approach of the brand the frequency of buying a Swatch is higher than the average frequency in the product category. Therefore the affordable prices reflect the target group needs perfectly. Lately Swatch succeeded a comeback of CULT STATUS, especially in the pop culture, therefore the value of the brand worth more than its price.

Sources:

www.swatch.com

www.articlesnatch.com/Article/Swatch-Watches-For-The-Fun-Loving---Hip-Hops/940536#ixzz1awn3MNnR

www.watches.lovetoknow.com/wiki/Swatch_Watch_Value

The Swatch Watch Revolution

By Lisa


Forced by the aggressive growth of Japanese companies in the 1960s and 1970s, Swatch launched a REVOLUTION IN PRODUCT DESIGN as an answer to the crisis.  The Swatch management simplified the watches for manufacturing efficiency by reducing the number of components from 91 or more to 51, without losing accuracy and emphasized the emotional design to set them apart from the ordinary digital watches commoditizing the market. The first collection of twelve new slim plastic Swatch models was introduced on March 1, 1983 in Zürich, Switzerland. Since this time, it has gone on to become the MOST SUCCESSFUL WRISTWATCH OF ALL TIMES. 

Alongside the original cult plastic watches, Swatch has diversified its offerings considerably, and the company now sells more than a dozen different types of watches. Scratch-resistant glass, waterproof, trendy designs and colors are all that makes swatch watches in a league of its own. Four major product line families can be identified under the swatch brand:

SWATCH ORIGINALS

The plastic watch, available in various, sizes, shapes, colors and designs

SWATCH IRONY

A diverse collection of metal cased watches for sophisticated casual but classy look

SWATCH SKIN

Divided in sub-families the original Skin and Skin Chronograph. The swatch skin entered the Guiness World Book of Records as the world's thinnest plastic watch. The Swatch Chronograph is the same type of watch but with a chronograph function. It has two additional buttons on the side of the watch

SWATCH BEAT

The digital line featuring the Internet Time (eliminating time zones)

In addition, Swatch offers sports collection such as SNOWPASS (a watch with a built-in access control function which can be used as a ski pass) and high-tech series like PAPARAZZI (download news from the Internet). Moreover, special models such as the FLIK-FLACK for children led to the brand popularity today. Describing all Swatch collection of the past and the present goes beyond imagination, especially considering the great amount of ARTIST SPECIALS AND COLLABORATIONS which make Swatch even more unique and thriving.  Swatch watches are fashion accessories first and timepieces second, a reason to own more than one.

Sources

Lindwell, W.,& Manacsa, G., 2009. Deconstructing Product Design: Exploring the Form, Function, Usability, Sustainability and Commercial Success of 100 amazing products, P.96  

http://en.wikipedia.org/wiki/Swatch

http://www.articlesnatch.com/Article/Swatch-Watches-For-The-Fun-Loving---Hip-Hops/940536#ixzz1awn3MNnR

Welcome!

The Swatchers are four ambitious business students in love with Swatch watches. This blog is created to investigate the fascination of Swatch as a brand and evaluate its performance in the competitive environment.

The success story of Swatch started in 1983, when they launched a slim plastic watch, which represented high quality with an affordable price. During almost three decades Swatch has presented many innovative wrist watch solutions and even some of them are making a new coming and becoming trendy over again.

As you might know, Swatch is only one brand of the mother company, Swatch Group. Other well known watch brands presented by Swatch Group are Tiffany & Co, Omega, Rado, Tissot, and ck watch & jewelry, just to mention few out of the 19 brands. Swatch Group Ltd. is recognized as the largest manufacturer of finished watches in the world, but it also functions in the fields of movements and stepping motors, microelectronics and sports event timing.

If there are any other passionate Swatchers out there, feel free to comment and join our ride in the world of Swatch!