A superb article by Ariel Adams

[tribe125]

http://www.ablogtowatch.com/push-in-...BLOGTOWATCH%29


One thing he doesn't directly mention is that there is now a massive over-supply of movements, largely because Swatch has opened the tap again. Having reduced supply, encouraging other companies to make huge investments, often with borrowed money, they have now come back to compete against them. Ronda, for example, spent CHF 25 million on developing a mechanical movement. Reportedly, Swatch salesmen are now actively pursuing sales to companies who had switched to Sellita, Soprod, etc. I doubt if it was all a pre-planned manoeuvre by Swatch, but it's not good.

The in-house movement trend was always a bit of a nonsense.

[Seriously]

I doubt if it was all a pre-planned manoeuvre by Swatch, but it's not good.

Nooooo, they wouldn't do that ................

[tribe125]

Nooooo, they wouldn't do that ................

They couldn't have predicted the downturn in sales, especially in Asia, back in 2001.

[watchdaddy1]

Nice post very insightful. Thanks for sharing it love these type of articles.

Sent from Galaxy S6 Edge via Tapacrap

[geoffbot]

It's such a massively complex issue. I always cite when people would complain about the 5k cost of an IWC Portuguese chrono with an Eta - base movement. Then they released one with an in-house movement at 10k, and people complained at the cost increase. Frederique constant's strapline is 'affordable luxury' - they have some gorgeous in house pieces at 1k on the gray market, but they don't appear that popular. They share movements with alpina - their sister company, still considered in house. Whereas Hamilton and longines get an 'exclusive movement' tag because they're in the swatch group (omega too sometimes!) And seiko is seiko. Rolex makes an absolute shed load of watches but is still considered rare, I think?

I dunno.

[tribe125]

Just in passing, I think Frederique Constant sell more than we know.

I once took an Aqua Terra to Watchfinder, taking along a Frederique Constant quartz almost as an afterthought. They gave me more or less what I paid for the FC and had it in their London showroom within a couple of days. They sold it within a week.

It was a nice discontinued model, but I thought I'd have to more or less give it away.

[CFR]

Interesting, but unconvincing. I can only guess the effect of the highly speculative prices driven by the emergent markets - Russia and China - now clearly lacking a solid customer base...

[Seriously]

I want an FC.......

That moon phase one I posted a week ago, or any 700/710 movement based version

[mlcor]

I don't think any of the conclusions in the meandering article (he could do with an editor, methinks) are surprising or earth-shaking. The dead hand of Adam Smith is at work here, and I think it will continue to dictate results. Companies that wish to source movements will vote with their pocketbooks, and go with whoever they think is the best deal. Now, if I were Sellita, I would be trying to tie some folks up with longer term supply agreements, arguing that ETA may have come back for the moment, but who's to say they won't jerk the rug out again down the road.

I think the canaries in the watch coal mine will be smaller companies that are trying to move up the ladder with their own in house movements, like MeisterSinger. We shall see.

[ck1109]

Interesting article, but as mlcor said, he could use a good editor. I don't think anything he said was surprising or shocking, but kudos to him for calling out the brands on the bullshit.