The battle for the future of Swiss watch industry is now at a critical round. What many of the manufacturers fear is that the Swatch Group, that has been the main supplier of mechanical movements to the industry, could critically reduce their supply starting from 2012.
“In no other industry do you have one company supply all critical parts to the people who then compete directly with it”, said Nick Hayek, Swatch’s chief executive. Obviously, this sounds reasonable, but what are the consequences of cutting the supplies? If you think about it for a moment you’ll realize that a number of independent watchmakers and smaller manufacturers, who do not have large enough capacities to produce their own movements, will be forced out of business.
The decision may endanger even the larger players such as Frederique Constant. This famous Swiss brand began to develop its first manufacture caliber in 2001. However, they estimate that full independence from third-party suppliers cannot be ensured before 2015.
In most of the economies of the developed world, when monopolistic stakeholders decide to cut supply antitrust authorities are entering the game to protect all of the parties involved. However, in the case of Swiss industry, this didn’t happen. The Swiss Competition Commission known as the Comico has granted the Swatch Group an ability to immediately reduce supplies by 30%, though a final decision is still pending. The reason behind this decision is the fact that the third-party companies have become compulsively dependent on Swatch for movements. If Swatch wins this round, the company will be allowed to cut movement supplies to 85% of 2010 levels, and for the regulating mechanisms to 95%.
Swiss ETA movement
As I write this, nine companies are challenging the approval by the Comco and three judges at Switzerland’s Federal Administrative Court are preparing to decide whether Swatch Group should be allowed to cut the supplies. The final decision is expected by the end of December 2011, but even then the dissatisfied party would be able to launch an appeal to Switzerland’s Federal court, which the highest tribunal – we’re not even close to the final resolution.
Author: Marina Milojević
If you use one of my articles on your own website or blog, then please credit me and provide a link back to the original.
Frederique Constant collections
Latest News from Frederique Constant
Frederique Constant Perpetual Calendar Tourbillon Manufacture
The house of Frederique Constant celebrates its 30th anniversary. To mark the occasion, the Swiss brand introduces a special Perpetual Calendar Tourbillon Manufacture, available in a limited run of 30 pieces and four distinct variants. The Perpetual Calendar Tourbillon Manufacture is a highly complicated timepiece that still manages to fall into the Maison’s signature “Accessible Luxury” segment. It features a brand new movement, a combination of the first in-house manufacture Tourbillon based on the Heart Beat Manufacture from 2008, and the...
Frederique Constant Vintage Rally Healey Chronograph
Since 2004, Federique Constant has been the official sponsor of vintage car rallies worldwide. Each year, the famous Swiss watchmaker launches limited Vintage Rally timepieces inspired by Austin Healey automobiles and its own passion for the world of racing. This year, the collaboration between two prestigious brands celebrates its 14th anniversary. To mark the occasion, Frederique Constant is introducing three limited edition Vintage Rally Healey Chronographs, inspired by the aesthetics of classic cars. The watches will be officially unveil...
Frederique Constant Classic Carrée Automatic
The house of Frederique Constant has just released the Classic Carrée Automatic, a retro-inspired timepiece distinguished by its elegant square shape. Square watches were particularly popular during the 1920s, when men shifted from their round pocket watches and started wearing wristwatches. For practical reasons, the first wristwatches were square-shaped, so they would easily accommodate the leather strap. Frederique Constant Classic Carrée Automatic stainless steel FC-310MC4S36 Today, the house of Frederique Constant introduces the retro-el...
Frederique Constant Classics Automatic GMT
The house of Frederique Constant introduces a new timepiece intended for modern-day globetrotters. The brand’s recognizable philosophy of “accessible luxury” is infused within this collection, as traveling the world with a stylish timepiece is made possible at under 2’000 USD. The Classics Automatic GMT, a watch designed to keep travelers on time and in style, features a handy function that allows travelers to quickly find out what time it is all over the world, as long as they know what the GMT (Greenwich Mean Time) is. Like most GMT wat...
Frederique Constant Classic Worldtimer Manufacture for BaselWorld 2017
Ahead of the BaselWorld 2017, the house of Frederique Constant introduces a new member to its Classic Manufacture Collection. This time, a new Worldtimer, designed for tracking time in 24 of the world’s cities, joins Frederique Constant’s exclusive collection of watches powered by its in-house Manufacture Calibers. The Classic Worldtimer Manufacture has been redesigned and tailored to the needs of the modern man. In its latest iteration, the utterly practical model arrives with a sophisticated new brown color pattern, complete with the rose...
Frederique Constant presents a new look for the Classic Manufacture
The house of Frederique Constant introduces two new dial options to its Manufacture Classic collection. This renowned range of classically elegant timepieces is powered by in-house automatic movements, which Frederique Constant started to develop in 2004. Ever since then, the brand has been producing in-house Manufacture Calibers first for the Heart Beat Manufacture collection, and, since 2008, for its more affordable timepieces. In 2012, Frederique Constant introduced the FC-710 caliber, as the entry piece for the Manufacture Collection. In...
Frederique Constant Slimline Moonphase Manufacture
The famous Swiss manufacture introduces the Slimline Moonphase Manufacture, a model endowed with one of the most romantic horological complications. The Manufacture Collection, which now includes more than 20 in-house calibers, welcomes the ultra-flat Slimline Moonphase Manufacture, a watch designed with the attention-to-details, and finished according to the standards of fine watchmaking. The new Moonphase model is both simple and elegant, thanks to its streamlined, vintage-inspired design. The watch features a new ivory-colored dial with sunr...
Frederique Constant Classics Index Automatic GMT
In addition the main hour hand, GMT watches have a second hand that completes a full rotation in 24 hours, thus providing an alternate time zone reference at a glance. The watches are aimed at frequent revelers and executives, who need to know the time in two places at the same moment. They allow their wearer to stay connected with the home time, while traveling away. The dedicated GMT hand features an eye-catching red triangle, which points to the hour marker shown on the 24hour scale. In addition to the Frederique Constant's in-house made...
Frederique Constant Manufacture Pocket Watch
The house of Frederique Constant pays a tribute to the historical and traditional Lépine watch, with the launch of a Manufacture Pocket watch. For many years, pocket watches have been the masterpieces of precision and true examples of Swiss finest watchmaking traditions. The pocket watch, characterized by a winding stem at 12 o’clock position, unites the craftsmanship with the most progressive of modern watchmaking technologies. The Frederique Constant Pocket Watch is powered by the new in-house FC-700 caliber, which is completely developed...
Frederique Constant Vintage Rally Healey Chronograph Automatic
The house of Frederique Constant presents its new Vintage Rally Healey Chronograph Automatic, a watch inspired by the world of classical motorsports and vintage car rallies. As you may already know, Frederique Constant is a longstanding partner of the Austin Healey car brand, and the "Healey Challenge" race in the UK. The brand has been producing Austin Healey themed timepieces for some time now, and this year, the brand new Vintage Rally Healey Chronograph Automatic is joining the collection. Same as all other timepieces from the Vinta...
