The Birth of Swatch
The Birth of Swatch
The continuous decline in demand for the prestigious watches made in Switzerland in the 1970s and early 1980s made the time period devastating for the Swiss watch industry. Before the decline, it was master of the watch market, shining with its high-end image. However, with the evolution of technology in watch making, the market began changing rapidly where low-end watches were becoming more accessible and evasive. Nicholas Hayek became the CEO of Societe Suisse de Microelectronique et d’Horlogerie (SMH) when he merged the SSIH and ASUAG. He revived and made the Swiss watch industry flourish through the introduction of Swatch, which became the best-selling watch in history. This success was driven by innovation in product and price strategies, as well as SMH’s attention to the surrounding market.
Product and Pricing Strategy – Wise Decisions
The unexpected introduction of an affordable and trendy Swiss-made watch – Swatch – took the watch industry by storm in 1983. It is believed that the company’s tradition-breaking product and pricing strategies are the factors that led to their phenomenal success, these strategies were highly agreeable for several reasons.
First, Swatch’s unique strategic approach to the product design was innovative unlike anything that customers have ever seen. Consequently, this contributed to the regain of a huge portion of SMH’s market share in the watch industry. In order to compete with the fast growing Asian competitors, the birth of Swatch penetrated the stereotypical image of a “Swiss-made” luxury time-keeping instrument. Introduced with a sense of style, Swatch offered a wide range of collections. Encased in plastic, Swatches featured groundbreaking designs that were “youthful, provocative, stylish and yet unpredictable”. Like a stream of fresh air, the pioneering designs successfully drew customers’ interest and love for Swatch.
Second, Swatch ensured that the designs attracted a
The continuous decline in demand for the prestigious watches made in Switzerland in the 1970s and early 1980s made the time period devastating for the Swiss watch industry. Before the decline, it was master of the watch market, shining with its high-end image. However, with the evolution of technology in watch making, the market began changing rapidly where low-end watches were becoming more accessible and evasive. Nicholas Hayek became the CEO of Societe Suisse de Microelectronique et d’Horlogerie (SMH) when he merged the SSIH and ASUAG. He revived and made the Swiss watch industry flourish through the introduction of Swatch, which became the best-selling watch in history. This success was driven by innovation in product and price strategies, as well as SMH’s attention to the surrounding market.
Product and Pricing Strategy – Wise Decisions
The unexpected introduction of an affordable and trendy Swiss-made watch – Swatch – took the watch industry by storm in 1983. It is believed that the company’s tradition-breaking product and pricing strategies are the factors that led to their phenomenal success, these strategies were highly agreeable for several reasons.
First, Swatch’s unique strategic approach to the product design was innovative unlike anything that customers have ever seen. Consequently, this contributed to the regain of a huge portion of SMH’s market share in the watch industry. In order to compete with the fast growing Asian competitors, the birth of Swatch penetrated the stereotypical image of a “Swiss-made” luxury time-keeping instrument. Introduced with a sense of style, Swatch offered a wide range of collections. Encased in plastic, Swatches featured groundbreaking designs that were “youthful, provocative, stylish and yet unpredictable”. Like a stream of fresh air, the pioneering designs successfully drew customers’ interest and love for Swatch.
Second, Swatch ensured that the designs attracted a