Swatch Group Ltd. designs, manufactures, distributes and sells finished watches,
watch movements, prestige watch components, electronic systems and
luxury jewelry. Based in Biel, Switzerland, The Swatch Group was formed
in 1983 through merger of two Swiss watch manufacturers: ASUAG and SSIH.
Formerly SMH Swiss Corporation for Microelectronics and Watchmaking
Industries Ltd, the company took its present name in 1998. The Swatch Group
is led by G. Nicolas Hayek, Jr., son of the late co-founder and chairman Nicolas
Hayek. In 2014, gross sales were CHF 9.219
billion, up 4.6% on 2013 results. Worldwide, The Swatch Group employs over
35,600 people in 50 countries. History
The Swatch Group formed from two financially troubled predecessor
companies, SSIH and ASUAG. = SSIH=
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 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=
ASUAG, formed in 1931, was the world’s largest producer of watch movements and
the parts thereof, assortments, watch stones. ASUAG had also integrated an
array of watch brands in 1972 into a sub holding company, General Watch Co.
ASUAG failed similarly in 1982. = Reorganisation=
Both groups were reorganised 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 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.
= Important Acquisitions= Over the years, the Swatch Group has
acquired several watchmaker companies such as Blancpain S. A., Breguet S. A.
and Glashütter Uhrenbetrieb GmbH. 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 well-known
jewelry 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 May 15, 2014.
Brands = Watches and Jewelry=
Prestige & Luxury Range Breguet
Harry Winston Blancpain
Glashütte Original Jaquet Droz
Léon Hatot Omega
High Range Longines
Rado Union Glashütte
Middle Range Hamilton
Certina Mido
Tissot Entry Range
Balmain CK Watch and Jewelry co.
Basic Range Swatch
Flik Flak Private label
Endura = Sports timing=
Swiss Timing Movement and Component Sales
Swatch subsidiary ETA Manufacture Horlogere, 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. Electronic Systems
The Swatch Group Electronic System provides solutions by integrating the
individual expertise of the following companies not only for quartz
wristwatches, but also Sports and Events Timing as well as high-tech Ventures
such as 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. 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 batteries.
Primary batteries include Silver Oxide Lithium and Zinc-Air technologies.
Sports and Events Timing Swiss Timing under brands such as Omega
and Longines provide Timing services for Sporting events such as Formula One,
Olympic Games and Equestrian events. 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, Pforzheim, Kuala Lumpur and Shanghai.
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 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.
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. 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" Notes and References
Citations Lewin, Tony. Smart thinking: the little
car that made it big. St. Paul, Minnesota: MBI Publishing. ISBN
0-7603-1943-X. External links
Official website The Nicolas G. Hayek Watchmaking Schools
Official Website Yahoo! - The Swatch Group Ltd. Company
Profile The Swatch Group History