Swatch: How to become a world-class brand watch (Figure)

For consumers, a Swatch is a souvenir, a history, a craftsmanship, an emotional sustenance.

In the global watchmaking industry, Switzerland can be called a veteran. The Swiss watch industry has an ancient tradition of 300 years of history. The watchmaking industry is a symbol of the Swiss nation. Its industry's target customers are those conservative and affluent consumers. In the 1970s, a storm engulfed the Swiss watch industry and the entire industry was severely damaged. The Japanese watchmaking industry represented by Casio, Seiko, and Citizen is aimed at low- and middle-income consumption. The use of digital technology and the focus on low-cost manufacturing, popular sales, and large-scale marketing have led to a surge in sales of watches, which has directly caused heavy losses to the Swiss watch industry. In less than 10 years, the number of Swiss watchmakers has dropped from 900,000 to 300,000. In 1982, two Swiss watch manufacturers, O.S.-owned SSAH and Rado and Longines ASUAG, lost a total of US$120 million a year, and the two companies’ annual revenues Only 1.1 billion U.S. dollars.

In the face of difficulties, Hayek, a German entrepreneur who is engaged in consulting, puts forward: "We can once again be the world's first." In order to revitalize the Swiss watchmaking industry, Hayek and investors acquired 51% of all assets of the two companies in 1985. After gaining control, Haye did not start the story of creating a brand myth.