The most specialized luxury goods company Swatch empire ladder
The second round of integration, manufacturing is king, monopoly, the Swiss manufacturer
in addition to the Happy Valley area of luxury table enclosure, the Swatch Group in the manufacture of watches, accessories are also gradually expand the acquisition, from 1993 to the present, one after another to buy the accessories 8 Factory. As of 2006, Swatch Group, a total of 14 factory parts, accessories manufacturing accounted for revenue of the Group's total revenue ratio reached 27.58 percent. In fact, the development of accessories for the Swatch Group is not just revenue growth, but will also affect the entire Swiss watch industry.
stressed the need for the background is that for centuries, the Swiss watch manufacturer has been the division of labor – a small workshop in the form of co-operation, that is, the movement manufacturers and assemblers independent division of labor, to complete the production of watches. In recent decades, despite the development of technology-related manufacturing industries, but the gap movement, dial, Case and other parts manufacturing and assembly, distribution of the brand is still another theory. In fact, apart from the Swatch Group, Rolex, Richemont Group and other large watches, Swiss watch industry there are very few companies able to produce a watch from beginning to end. Most of the brands are to the movement of professional companies to buy movement, and then design their own devices in the watchcase, the specialized division of labor that the mode of production can be significantly reduced production costs. However, this loose approach has a fatal weakness, that is, if the upper reaches of movement restrictions on the supply companies, small and medium-sized manufacturers assembly will face a very passive situation, for centuries, the Swiss watch industry to ensure that any enterprise demand for watches accessories The rules guarantee the continuation of such a loose alliance.
Therefore, the Swatch Group for the acquisition of spare parts for factories, but also watch the company's other suppliers, including ETA, PredericPiguet, NivaroxFAR three crucial. ETA in 1926 by the then major gaps in the merger movement manufacturers, and in 1934 was the predecessor of the Swatch Group ASUAG acquisition, it is Switzerland's largest watch movement maker, almost 80% of the Swiss watch manufacturers The use of their movement. ETA supply to the market more than 30 kinds of electronic and mechanical movement, the movement of the major suppliers of electronic Swatch, and the mechanical movement of the supply of a wide variety of manufacturers, including high-end brands Athens (UlysseNardin), mid-range brands Tudor, Hoya, Bulgari, Longines, Tissot, as well as low-end brands, the United States, such as when Howley. 1993 was the acquisition of the Swatch Group Prederic Piguet, Switzerland is the most high-end manufacturer of the movement, whose clients include Po Po, Audemars Piguet, Breguet, Vacheron Constantin, des Nations, the mainstream luxury brands such as the Count. In 2004 and was acquired by the Swatch NivaroxFAR, a virtual monopoly on the manufacture of gossamer spring, not only to Omega, Breguet, Po Po, and other brands within the Group of suppliers, Rolex, Patek Philippe, their love is Their customers. In fact, through the ETA, PredericPiguet, NivaroxFAR three companies, Swatch Group of Switzerland took control of movement of 75% of the production, and in some key parts on the formation of monopolies.
this point, the Swatch Group to create a virtual monopoly on the upper reaches of the clocks. If the Swatch Group to play a sneeze, all Swiss watch industry will be cold. For example, once the Swatch Group, announced the movement to stop the supply, will watch the other manufacturers have a great impact. In fact, the Swatch Group since 2001, the two groups gradually reduce or even stop outside the group's supply movements.
First of all, stop the supply of luxury table movement, Lemania in February 2001 announced the cessation of external suppliers, only to the supplier Omega and Breguet, in September 2001 into effect, Daniel Hoya and are subject to a considerable impact. PredericPiguet for most of the original Po Po, but at the same time some of the highest-level gap is also to the movement of the Group's external suppliers, after its restructuring into three departments, one of which will continue for the Po Po, a small point of post-secondary sector For Omega, the smallest movement will be completed in the supply of other groups outside the company. In addition, the use of outside companies in the PredericPiguet movement, must be specified in the ad. Since then, the luxury giant movement to another table, Richemont's product family also announced that it would reduce the external supply, the luxury watch industry collaboration is therefore totally disrupted our plans. Independent manufacturers
part of the early start similar to the Swatch Group's vertically integrated industries, such as Rolex purchase successively strap manufacturer GayFrres, dial manufacturers Beyeler

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