A Business History of the Swatch Group: The Rebirth of Swiss by Pierre-Yves Donzé (auth.)

By Pierre-Yves Donzé (auth.)

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By Pierre-Yves Donzé (auth.)

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Extra resources for A Business History of the Swatch Group: The Rebirth of Swiss Watchmaking and the Globalization of the Luxury Industry

Example text

Thus, the launch of metal Swatches offset to a certain extent the sharp drop in sales of plastic watches. However, overall sales of Swatch watches did not continue on the same level as during the first ten years of the brand’s existence. According to the evaluations performed by certain financial establishments for their investor base, total Swatch sales (both plastic and metal watches) came to CHF640 million in 2006 (Helvea SA) and CHF710 million in 2010 (Vontobel). So it is clear that ever since the mid-1990s, the Swatch Group’s growth has been powered by other brands in its portfolio.

Quartz watches developed 24 A Business History of the Swatch Group along with very effective organizational capabilities, allowing the Japanese watch industry to keep growing on world markets. Despite the quartz watch boom, however, Japan did not move out of mechanical watches until the mid-1980s. 0 million in 1995). 3 The Creation of the Swatch Group and the “Swatch Legend” At the beginning of the 1980s, the main measure adopted by Swiss watchmakers to pull themselves out of recession was the merger of the two biggest Swiss watch groups, namely ASUAG and SSIH (1983).

Starting in 1997, annual reports began to provide more details, making it possible to differentiate the category “plants and machinery” included under fixed assets. 6 per cent). 3 per cent in 1998). 5 per cent in 1998. Accordingly, the modernization and expansion of production machinery is to be seen as part of a financial strategy aimed at decreasing dependency on banks. 1 billion in 1990) and consider developing (equipment modernization, business acquisitions) without relying on banks or financial markets.

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