ETA Movement Sales Halted

[Ryeguy]

Re: Sinn......if they are below the 250 employee threshold then why would they use SW and not keep using ETA?

That’s an interesting question. I thought they used a mix of SW and ETA depending upon the model. I see the U1 uses the SW, but the U2 uses the ETA 2892-2. Other models use the 2893-2.

That said, all this uncertainty (whether self induced or government induced) around ETA’s ability to supply movements would make any brand owner want to seek alternative vendors.

[93 Turbo]

I vaguely remember a few years back Swatch bitching because they were suffering a lack of movement sales, this was after they announced they would stop supplying their movements, then they (Swatch) were told to keep supplying movements (by Swiss regulators) allowing time for other makers to adjust to their decision.

Hence Tudor making their own movements and doing a deal with Breitling. Obviously reducing the need for ETA movements, and cutting out the middle man...

[Cabaiguan]

Too much money to be made by Swatch here. They may cut off immediate competitors but I’m guessing smaller brands will still be able to buy ebauches.

If you read the article you’ll see that Swatch wants to continue selling the movements, it’s essentially the Swiss government limiting the sales as an anti-monopoly action. Swatch’s position is now 180 degrees from where it was 10 years ago.


Sent from my iPhone using Tapatalk

Thanks. I guess reading the actual article would help.

[logan2z]

More information on the subject...

https://www.hodinkee.com/articles/swatc ... o-analysis

[JP Chestnut]

"Today, if you want to make watches called Joe Thompson, you go to any one of the several ètablisseurs [i.e., private-label watch companies] and they make them for you. You say, I need 10,000 Joe Thompson watches, and they order the movements from us, from ETA. And they take hairsprings from Nivarox-FAR [another Swatch Group subsidiary]. And they make a Joe Thompson watch for you. I cannot stop them. We are forced to deliver to them."

"What I am saying now," he continued, "is that I am not going to deliver anything – no movements, no èbauches, no hairsprings, nothing – except to people who are real watchmakers and manufacturers. I am free to do it."

I find it hard to argue with that logic, given the proliferation of catalog bullshit internet watches.

[Ryeguy]

"Today, if you want to make watches called Joe Thompson, you go to any one of the several ètablisseurs [i.e., private-label watch companies] and they make them for you. You say, I need 10,000 Joe Thompson watches, and they order the movements from us, from ETA. And they take hairsprings from Nivarox-FAR [another Swatch Group subsidiary]. And they make a Joe Thompson watch for you. I cannot stop them. We are forced to deliver to them."

"What I am saying now," he continued, "is that I am not going to deliver anything – no movements, no èbauches, no hairsprings, nothing – except to people who are real watchmakers and manufacturers. I am free to do it."

I find it hard to argue with that logic, given the proliferation of catalog bullshit internet watches.

I think the gamble is will Swatch Group ultimately gain revenue through their brands being the only source for ETA movements, or will Swatch Group suffer due to the loss of movement sales revenue and the consumer being willing to accept ETA clones from companies such as Sellita?

My scientific wild ass guess is the suppliers to B/S internet "Swiss Made" watch brands will simply switch to Sellita and consumers will continue to buy them (if the Sellita movements are available).

The way to really impact the proliferation of catalog bullshit internet watches would be to coordinate the end of the supply of the ETA movements to a time when you know Sellita simply does not have the manufacturing capacity to make up the 500,000 movement demand.

That would put 500,000 less B/S brand "Swiss Made" watches on the market, and might encourage consumers to look toward Swatch brand alternatives.

[pbj204]

Stowa has prices going up tomorrow.

"The tense movement situation, which was mainly caused by a fatal decision of the Swiss Competition Commission, harms all watch manufacturers, because in 2020 and probably also 2021 ETA will not be allowed to supply movements to other companies.

Since this has already caused the acquisition of movements to deteriorate in recent months (the decision of Weko took many months) and other components have also increased in price, we are now forced to raise our prices slightly.

Here you can go directly to the website of ETA/Swatch Group with an explanation of the situation: https://www.swatchgroup.com/en/servi...watch-industry"