The Swatch Group and the evolving world

Recently I have read an article about how a new business approach is changing the current, traditional and obsolete business approach. Right after I have read that article, I came across a piece of news about The Swatch Group not joining Baselworld in 2019.

The Swatch Group and the symbol of Swiss-made

When it comes to big brands in the market of premium watches, people usually think of Swatch Group. Through the time, Swatch Group has acquired several premium brands of watches, ranging from popular to high-class or ultra-high-class watch. Let's have a look at the small chart provided by Monochrome to have a clearer image:

How many brands that you can recognize?

From the chart, you can see that Swatch Group owns so many high-end brands, such as Blancpain, Harry Winston or even the famous Omega. The group has supported dramatically for Swiss-made brands during the heavy competition with Japanese brands such as Seiko in the 80s.

Baselworld and the showcase of most beautiful watches

Source: Watchpro

One of the most popular events for watch collectors is the BaselWorld, in which top brands of the world are coming and showcase their most excellent piece of arts to the collectors. Every year, the BaselWorld was organized with the participation of brands in the world.

Omega usually brings out the best of the best of their collection, in which they sell for one time only.

For instance, this Seamaster Railmaster edition:

Source: Chrono24

This beautiful piece of art is selling for $5800, in which I suspect the price may be higher eventually due to the uniqueness.

Swatch Group not joining Baselword anymore

It was shocking news that Swatch Group has decided to stay out of BaselWorld from 2019. The company reportedly said the total fee to join was nearly $50m while the results were not as expected. Swatch Group was not the first group to leave the yearly event, but there were also many brands decided not to participate in BaselWorld

An evolving world of business

Same as a smartphone, the watch industries need a disruptive innovation to reach out to more people. Instead of targeting a small group of people, many companies have decided to make a sub-brand to sell lower-end watch. Furthermore, they have decided to cut cost and reduce the selling price to reach more customers than the traditional approach.

Worldwide event is the key

No matter how prestigious the BaselWorld is, it may never reach a broad audience like Apple new product event or Samsung, recently. In my opinion, the watch industry should consider that approach when they announce new products to reach to a broader audience than just joining one event of a year. The customers may not be ready to purchase a high-end watch, but how about the future? I was influenced dramatically by Patek Phillippe, I have planned to buy one, maybe once in my life to own a Patek Phillipe.

Yes, I do love to learn about watches and have some watches for my minor collection.