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ANALYSIS-Swatch move could force watchmakers to turn to Asia
Feb 22, 2010* Swatch Group threatens to stop supplying Swiss watchmakers
* Temptation to source from Asia will grow
By Astrid Wendlandt and Katie Reid
PARIS/ZURICH, Feb 22 (Reuters) - Swatch Group's plan to stop supplying rivals with key components threatens the "Swiss made" seal on which the industry rests and could force watchmakers to source from Asia or simply go out of business.
Industry experts believe Switzerland's watch brands have become too dependent on Swatch Group and have not invested enough in engineering, preferring instead to splash out on fancy marketing campaigns featuring famous sports stars and actors.
"It is clear that a tightening of the supply market coupled with the need to redefine the business model could turn a few brands to quick and cheap sourcing alternatives in East Asia," said Pierre Landolt, Chairman of the Sandoz Family Foundation, which is behind high-end watchbrand Parmigiani Fleurier.
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ANALYSIS-Swatch move could force watchmakers to turn to Asia
Some experts say the threat from Swatch group, which owns brands such as Omega, Breguet and Blancpain, is aimed in part at large rivals like Tag Heuer, and more »Replica Watches Directory
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