Not selling ebauches/movement anymore?

[ExtraExtra]

I picked up a watch magazine at a book store and there is this big article on the CEO or head of swatch group. He (forgot his name) has been telling everyone for years that they (swatch) will stop providing movements to anyone except the big watch houses. Apparently it will come into effect in the next 2 years unless the court stops it...something to that effect. Well there's a lot of thing that can happen here and one is that there would be less watches in the market and may drive the price high...i doubt this would affect the rep world though....or does it? Anybody hear about this story?

[Coeuss]

I picked up a watch magazine at a book store and there is this big article on the CEO or head of swatch group. He (forgot his name) has been telling everyone for years that they (swatch) will stop providing movements to anyone except the big watch houses. Apparently it will come into effect in the next 2 years unless the court stops it...something to that effect. Well there's a lot of thing that can happen here and one is that there would be less watches in the market and may drive the price high...i doubt this would affect the rep world though....or does it? Anybody hear about this story?

Yes the article was in IW magazine. This has been going on for quite sometime. The guy saying it was Nicholas Hayek, a real pioneer in the watch world. He was the CEO of ETA and the swatch group. Yeah the giant company that owns Omega, and several other brands and yes the $30 plastic watch that profited from the quartz revolution. Notice I said he was. He passed away two weeks after the article was written. I didn't agree with him but I, like most of the watch industry mourn his passing as he had great vision.

Edited August 15, 2010 by Coeuss

[Jkay]

ExtraExtra: Chinese ETA clones are better and better every day. ETA will cut their own throat when they withhold their movements from the OEM and 3rd parties.

Every time I see a clone ETA movement, one more "tell" that it's false has been resolved. Now I'm seeing clones with the proper number of reversing wheel holes.

[panerai153]

Not only are the Chinese movements better, there are several other alternatives to ETA. Ocean 7 is already using the Sellita movements, others are using myiota and some Soprod. So it's not going to be the end of the world if ETA stops selling movements. What it may end up being is a really bad business decision for ETA, as they are probably geared up to produce X number of movements. If all the smaller watch companies start using other movemednts, it will seriously cut into the total numbers that ETA produces every year. I think Nicholas Hayek was a business genius. He took Swatch from a obscure plastic "throwaway" watch company to a mega billion dollar watch conglomerate, but he was obsessed with the idea that he could control the watch industry by controlling the movements. He should have learned a lesson from the Hunt brothers from Texas who thought they could corner and control the Silver market a couple of decades ago.What he failed to grasp was one of the most common tenents of business, When there is a need, someone will step up and fill that need. Obviously, the Chinese as well as others are prepared to do just that.

[ExtraExtra]

@coeuss - that's too bad he passed away. that push to stop selling may just lose steam...but maybe good to everyone else.

@jkay - indeed. the eta movement reps have been around a while and gets better and better. do you guys remember the first A7750 version? and when this was modified to work in the daytona?

[crystalcranium]

I doubt we will ever see this happen. It was supposed to have happened already...we've been hearing this "end of the ETA world" stuff for years.

[Ronin]

I read the article in IW yesterday actually.

My impression was he has become anti-fashion plate, anti-little guy/boutique guy. There was one part in the article where he mentions his suit maker wanting to make watches with his help. He refused. I also think he is against the "assemblers". Guys who just buy a bunch of Swiss parts, assemble a watch and sell it as some high end watch. (Like a Debaufre' and possibly down to a Kobold level.).

There was also a great quote in the article where he compares to the auto industry. It went something like "Image Joe Thompson wants to make a car. He goes to GM to buy the engine for his Joe Thomson car. GM would be like 'Hell NO!'."

I am not saying I agree with him, but I see where he is coming from.

My worries is about parts availability down the road. Do the Offrei's / Cousins get "cut-off"???? That is the ONE question they article never answers.

I also wonder what his definition of "Big Watch maker" is that they will continue supplying to. Does this mean the Doxa's, Ball, Sinn, Kobold, Bremont, and other small to mid-range companies will be cut off?

We shall see...