The Swatch Group
The Swatch Group AG is a Swiss manufacturer of watches and jewelry. The company was founded in 1983 by Nicolas Hayek from the merger of Allgemeine Gesellschaft der Schweizerischen Uhrenindustrie (ASUAG) and Société Suisse pour l'Industrie Horlogère (SSIH).
|Predecessor||ASUAG and SSIH|
|Revenue||CHF 7.553 billion (2016)|
|CHF 0.805bn (2016)|
|CHF 0.593bn (2016)|
|Total assets||CHF 13.106bn (2016)|
|Total equity||CHF 11.073bn (2016)|
Number of employees
The Swatch Group employs about 36,000 people in 50 countries. In 2016, net sales were 7.533 billion Swiss francs (CHF), decreasing 11% from 2015 results.
The Swatch Group was formed from two financially-troubled predecessor companies, SSIH and ASUAG.
SSIH originated in 1930 with the merger of the Omega and Tissot companies. Swiss watch quality was high, but new technology, such as the Hamilton Electric watch introduced in 1957 and the Bulova Accutron tuning fork watch in 1961, presaged increasing technological competition.
In the late 1970s, SSIH became insolvent due in part to a recession and in part to heavy competition from inexpensive Asian-made quartz crystal watches. These difficulties occurred even though it had become Switzerland’s largest, and the world’s third largest, producer of watches. Its creditor banks assumed control in 1981.
ASUAG, formed in 1931, was the world’s largest producer of watch movements and the parts thereof (balance wheels, balance springs (spiral), assortments, watch stones ("rubis"). ASUAG had also integrated an array of watch brands in 1972 into a sub-holding company, General Watch Co. ASUAG failed similarly in 1982.
Both groups were reorganised and merged into the SSIH/ASUAG Holding Company in 1983. Taken private in 1985 by then-CEO Nicolas Hayek, with the understanding of the Swiss banks and the financial assistance of a group of Swiss private investors (in particular Stephan Schmidheiny and Esther Grether), it was renamed SMH in 1986, and ultimately Swatch Group Ltd in 1998.
The launch of the new "Swatch" brand of watch in 1983, by the then ETA SA CEO Ernst Thomke and his young team of engineers, was marked by bold new styling and design. The quartz watch was redesigned for manufacturing efficiency and fewer parts. This combination of marketing and manufacturing expertise restored Switzerland as a major player in the world wristwatch market.
Over the years, the Swatch Group has acquired several watchmaker companies, such as Blancpain S. A. (founded 1735, bought by Swatch in 1992), Breguet S. A. (founded 1775, bought in 1999) and Glashütter Uhrenbetrieb GmbH (Germany, bought in 2000). All three brands are prominent members of its range of products today.
The most recent acquisition was HW Holding Inc., owner of Harry Winston, Inc. in New York, USA, a jewellery and luxury watch company. The transaction closed on 26 March 2013 for 711 million Swiss Francs. Nayla Hayek became CEO. The company bought the world’s biggest flawless blue diamond, The Winston Blue, on 15 May 2014.
Prestige and Luxury Range
- Swiss Timing (represents different brands of the above)
Movement and component salesEdit
Swatch subsidiary ETA SA, which is based in Grenchen, Switzerland, furnishes many OEM brands, such as LVMH, which markets TAG Heuer, Hublot and Zenith watch lines, and Richemont, which markets amongst others, Baume & Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget SA and Vacheron Constantin.
The Swatch Group Electronic System includes:
- Belenos Clean Power AG.
- EM Microelectronic-Marin: Designs and produces ultra-low power, low voltage mixed-signal integrated circuits, LCD and modules. IC Product lines include RFID, microcontroller, smart card, ASIC, RTC, reset circuit, watchdog, LCD driver, opto ICs.
- Micro Crystal: produces miniature low power quartz crystals and small low power oscillators.
- Renata: develops and produces micro batteries. Product lines include button cells and rechargeable (Lithium Polymer) batteries.
Sports and events timingEdit
The Nicolas G. Hayek Watchmaking SchoolEdit
The Swatch Group started offering their first class for aspiring watchmakers in September 2005, and this school is located in Miami, Florida, USA. Other watchmaker schools situated in Glashütte, Germany; Okmulgee, USA; Pforzheim, Germany; Kuala Lumpur, Malaysia and Shanghai, China.
Internet Time and new technologiesEdit
In October 2004, Swatch introduced its first smart watch, the Paparazzi, based on Microsoft Corporation's SPOT (Smart Personal Objects Technology.)
Swatch subsidiary Belenos Clean Power AG entered into a joint venture with the Paul Scherrer Institut in May 2008 to develop a hydrogen fuel cell for a fuel cell powered car. Swatch began test drives of the car in Switzerland in 2012. However, the Swatch Group decided to abandon the project for a fuel cell powered car in June 2015 and concentrate instead on a new type of battery with high storage capacity.
- Mudambi, Ram, "Branding Time: Swatch and Global Brand Management" - Temple University, Fox School of Business, Temple University IGMS Case Series No. 05-001, January 2005
- The Swatch Group Ltd., "History of the Swatch Group"
Notes and referencesEdit
- "Annual Report 2016". Swatch Group. Retrieved 12 August 2017.
- Lorenceau, René. "Financial reports and development". The Swatch Group. Retrieved 22 March 2015.
- "Harry Winston Renames World's Largest Flawless Vivid Blue Diamond, 'The Winston Blue'". Forbes. May 15, 2014. Retrieved 2014-05-16.
- "Swatch fire seen affecting other watch makers" Reuters G+M Dec 30 2013
- Company profile Benelos Clean Power
- René Lorenceau. "Swiss Timing - Swatch Group". Retrieved 22 March 2015.
- Lewin, p 132
- "Joint-Venture between Belenos Clean Power AG and the Paul Scherrer Institute PSI". The Swatch Group. Retrieved 30 March 2012.
- Galli, Hans. "Swatch gibt Wasserstoffauto auf, Freiburger Groupe E uebernimmt". Der Bund. Retrieved 3 July 2015.
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