The Swatch Group

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The Swatch Group Ltd
Aktiengesellschaft
Traded as
IndustryManufacturing
PredecessorASUAG and SSIH
Founded1983; 36 years ago (1983)
FounderNicolas Hayek
Headquarters,
Area served
Worldwide
Key people
RevenueCHF 7.553 billion (2016)[1]
CHF 0.805bn[1] (2016)
CHF 0.593bn[1] (2016)
Total assetsCHF 13.106bn[1] (2016)
Total equityCHF 11.073bn[1] (2016)
Number of employees
35,700 (2016)
Subsidiaries
Websiteswatchgroup.com

The Swatch Group Ltd is a Swiss manufacturer of watches and jewellery. 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), in order to cope with the quartz crisis and save the Swiss watchmaking industry.[2][3][4]

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. Besides its own product line Swatch, the Swatch group also owns other brands including Blancpain, Breguet, Glashütte Original, Harry Winston, Longines, Omega, Tissot, and so on.[5][6]

History[edit]

SSIH[edit]

SSIH (Société Suisse pour l'Industrie Horlogère), 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[edit]

ASUAG (Société Générale de l'Horlogerie Suisse SA), 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.

The Swatch Group[edit]

The Swatch Group was formed in 1983 as ASUAG/SSIH from the two financially-troubled predecessor companies, ASUAG and SSIH.[7][8] 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 (Société de Microélectronique et d'Horlogerie) in 1986, and ultimately Swatch Group Ltd in 1998.[7]

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.

Brands[edit]

Blancpain watch with 8-day power reserve.

Over the years, the Swatch Group has acquired several watchmaker companies, such as Blancpain S. A. (founded 1735, bought by Swatch in 1992),[9] Breguet S. A. (founded 1775, bought in 1999),[10] and Glashütte Original (Germany, bought in 2000). All three brands are prominent members of its range of products today[citation needed].

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.[11] Nayla Hayek became CEO. The company bought the world's biggest flawless blue diamond, The Winston Blue, on 15 May 2014.[12]

The following list includes the brands owned by the Swatch Group.[5][6]

Watch manufacturing[edit]

ETA movement[edit]

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, Montblanc, Officine Panerai, Piaget SA and Vacheron Constantin).[13]

Electronic systems[edit]

The Swatch Group Electronic System includes:

  • Belenos Clean Power AG.[14]
  • 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.

Swatch Internet Time[edit]

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.[15]

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

Watchmaking school[edit]

The Swatch Group started offering their first class in the Nicolas G. Hayek Watchmaking School 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.

Sponsorship[edit]

Sports and events timing[edit]

Swiss Timing, under brands such as Omega, Longines, and Tissot, provide timing services for sporting events such as Formula One, Olympic Games, Tour de France, and Equestrian events.[16]

Ventures[edit]

In 1994, Swatch entered into a joint venture with Germany's Daimler AG to produce the Smart car, but they later withdrew from this project.[17]

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.[18] 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.[19]

See also[edit]

References[edit]

  1. ^ a b c d e "Annual Report 2016". Swatch Group. Retrieved 12 August 2017.
  2. ^ October 10, Joe Thompson; 2017. "Four Revolutions: Part 1: A Concise History Of The Quartz Revolution". HODINKEE. Retrieved 2019-03-05.
  3. ^ "The Quartz Crisis and Recovery of Swiss Watches | Relation between Timepieces and Society". THE SEIKO MUSEUM. Retrieved 2019-03-05.
  4. ^ "The Quartz Crisis". Crown & Caliber Blog. 2018-04-12. Retrieved 2019-03-05.
  5. ^ a b "Brands & Companies - Swatch Group". www.swatchgroup.com. Retrieved 2019-03-05.
  6. ^ a b Adams, Ariel. "The Few Big Companies That Own Most Of The Major Luxury Watch Brands". Forbes. Retrieved 2019-03-05.
  7. ^ a b "History of The Swatch Group SA – FundingUniverse". www.fundinguniverse.com. Retrieved 2019-03-05.
  8. ^ Avery, Gayle C. (2004-01-13). Understanding Leadership: Paradigms and Cases. SAGE. ISBN 9781446266199.
  9. ^ Levine, Joshua. "Time Is Money". Forbes. Retrieved 2018-11-26.
  10. ^ Journal, Margaret StuderSpecial to The Wall Street. "Swatch Agrees to Acquire Breguet From Investcorp". WSJ. Retrieved 2018-11-26.
  11. ^ Lorenceau, René. "Financial reports and development". The Swatch Group. Retrieved 22 March 2015.
  12. ^ "Harry Winston Renames World's Largest Flawless Vivid Blue Diamond, 'The Winston Blue'". Forbes. May 15, 2014. Retrieved 2014-05-16.
  13. ^ "Swatch fire seen affecting other watch makers" Reuters G+M Dec 30 2013
  14. ^ Company profile Benelos Clean Power
  15. ^ Consalvo, Mia (2005). Internet Research Annual. Peter Lang. ISBN 9780820468419.
  16. ^ René Lorenceau. "Swiss Timing - Swatch Group". Retrieved 22 March 2015.
  17. ^ Lewin, p 132
  18. ^ "Joint-Venture between Belenos Clean Power AG and the Paul Scherrer Institute PSI". The Swatch Group. Retrieved 30 March 2012.
  19. ^ Galli, Hans. "Swatch gibt Wasserstoffauto auf, Freiburger Groupe E uebernimmt". Der Bund. Retrieved 3 July 2015.
  • Lewin, Tony. Smart thinking: the little car that made it big. St. Paul, Minnesota: MBI Publishing. ISBN 0-7603-1943-X.


Further reading[edit]

External links[edit]