The Swatch Group

For other uses, see Swatch (disambiguation).

The Swatch Group Ltd.

Type	Publicly traded limited company
Traded as	SIX: UHR, UHRN
Industry	Luxury goods, accessories
Founded	1983
Founder(s)	Nicolas Hayek
Headquarters	Biel, Switzerland
Key people	Nayla Hayek (Chairman), Nick Hayek, Jr. (CEO)
Products	Watches, jewellery, electronic systems for timekeeping
Revenue	CHF 6.108 billion (2010)
Operating income	CHF 1.436 billion (2010)
Profit	CHF 1.074 billion (2010)
Total assets	CHF 8.614 billion (end 2010)
Total equity	CHF 7.101 billion (end 2010)
Employees	24,240 (average, 2010)
Website	www.swatchgroup.com

The Swatch Group Ltd. is a Swiss company and watch manufacturer. It was formed in 1983 through the merging of the two Swiss watch manufacturers ASUAG and SSIH, and took its present name in 1998 (formerly SMH Swiss Corporation for Microelectronics and Watchmaking Industries Ltd). The company is led by G. Nicolas (Nick) Hayek, Jr., son of the late co-founder and chairman Nicolas Hayek.

In 2007, gross sales were 5.94 billion CHF. The Swatch Group has around 23,600 employees.

History

The Swatch Group formed from two financially troubled predecessor companies:

• 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 introduced in 1961 presaged increasing high technology 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 brand in 1972 into a sub holding company, General Watch Co.

ASUAG failed similarly in 1982.

Both groups were reorganized and merged into 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, it was renamed SMH in 1986, and ultimately Swatch Group Ltd in 1998.

The launch of the new Swatch brand "Swatch" 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.

Brands

Hamilton Khaki Field Officer H70615133

Swatch Once Again

Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Calvin Klein Watches + Jewelry, Balmain, Certina, Mido, Hamilton, Swatch, Flik Flak, Endura and Tourbillon.

Electronic Systems

The Swatch Group Electronic System provides complete solutions by integrating the individual expertise of the following companies:

• 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.
• Oscilloquartz SA : Produces and designs high precision frequency control products, including Cesium PRS, quartz crystal oscillator, OCXO, BVA & PRC, SSU (also called SASE, TSG or BITS), GPS based synchronisation products for the wireless and wired telecommunication infrastructure.
• Micro Crystal: Produces miniature low power quartz crystals and small low power oscillators. Focus is 32.768 kHz SMD and through hole crystals in miniature metal and ceramic package.
• Renata: Develops and produces micro batteries. Product lines include button cells and rechargeable (Lithium Polymer) batteries. Primary batteries include Silver Oxide Lithium and Zinc-Air technologies.
• Lasag: Offers solid-state lasers for precision welding, cutting, drilling and ablating of metals.

The Nicolas G. Hayek Watchmaking School

The Swatch Group started offering their first class for aspiring watchmakers in September 2005. This school is based out of Miami, Florida. Another school is located in Okmulgee, Oklahoma. Other watchmaker schools outside the US are situated in Glashütte (Germany), Pforzheim (Germany), Kuala Lumpur (Malaysia) and Shanghai (China).

Internet Time and new technologies

In 1998, Swatch invented "Swatch Internet Time", intended as a global time system, which divides the day into 1000 "beats" in a single worldwide time zone.

In October 2004, Swatch introduced its first smart watch, the Paparazzi, based on Microsoft Corporation's SPOT (Smart Personal Objects Technology) technology.

Oscilloquartz SA, a company of the Swatch Group Electronic Systems, also produces NTP time server products.

Ventures

In 1994, Swatch entered into a joint venture with Germany's Daimler AG to produce the Smart, but they later withdrew from this project.

See also

• Pierre Jaquet-Droz

Further reading

• 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"

Citations

• Lewin, Tony. Smart thinking: the little car that made it big. St. Paul, Minnesota: MBI Publishing. ISBN 076031943X. 

External links

• Official website
• The Nicolas G. Hayek Watchmaking Schools Official Website
• Yahoo! - The Swatch Group Ltd. Company Profile
• The Swatch Group History