Only Time Will Tell If Swatch's Comeback Continues

Posted by Ben Berkon on February 9, 2010 04:45 PM

Even in an economic downturn, people are still checking to see what time it is. Swatch Group, the world’s largest selling watchmaker, is on-pace to post its most successful year to date. Granted, its lofty expectations are based on just two months of sales, but its encouraging January and February numbers are hard to ignore.

However, it’s not the United States and Japan – the usual suspects – that are fueling the watch company's resurgence. The United Kingdom, Russia, Australia, Scandinavia, Canada, and Mexico have all contributed to Swatch’s impressive sales numbers.

Despite a decade-long slump for watchmakers, many market analysts claim that Swatch’s success in 2010 is hardly surprising.

“I like the stock – the management turn every penny, the company has a dominant position in the watch industry and an excellent position in China," said Kepler Capital Markets analyst, Jon Cox. “The company always does an excellent job in managing costs and if it can keep hold of a lot of them in 2010 it bodes very very well for the group as watch sales rebound."

Additionally, Swatch is hopeful that their Omega watches, which are the official timekeeper for the Vancouver 2010 Olympics, will only help its case. The Canada-red Omega Seamaster Professional 300m special addition watch is expected to sell out despite the exorbitant $3,800 price tag. Regardless of the Olympics results, Swatch is certainly expecting to take home the gold.

More about: Swatch, Retail, Kepler Capital Markets, Omega Watches, Vancouver Winter Olympics

Femi says:

That'll be interesting. Been wearing swatch for about a decade and they are solid but have never bought one in the US as I can't find anywhere where they are sold. You'd have thought that somewhere like a Macy's that has a wide collection of watch brands would sell the brand but it doesnt. So I'm wondering if the US is on their radar for brand equity at all.

I'm only just finding out from this article that they make Omega watches. How come such knowledge is not leveraged upon???

February 10, 2010 07:20 AM #

Mark says:

I would have thought the watch would be on the decline when everyone has a mobile phone.
Why do people still wear watches?

February 10, 2010 08:37 AM #

Tracy says:

Why wear watches? At least we know athletes still have a use for them. I can't imagine one checking his phone in mid-whatever. Why else? As jewelry, for status, because some still appreciate the mechanics of a classic timepiece... because sometimes phones are impractical. Because your wrist feels naked and odd without -- I say this having worn two Swatches at once as a kid in the 80s.

Now wishing I hadn't just sold one on eBay not too long ago. I discovered that there is an amazing affection, nostalgia and indeed a whole community of collectors that has spring up around Swatch. Which rather floored me when I was doing a little research prior to selling that Pop Swatch. Actually, I thought they might even be out of business, so that as a surprise, too.

Not as much of a surprise as learning Omega is theirs, though.

February 10, 2010 09:19 AM #

RitaSUe Siegel says:

There's a big Swatch store in the 42 St and Bway area in New York City. I always stop buy to pick up one or two when I am in the mood for something new. In the last 2 years, in my opinion, none of the designs were appealing. Instead I bought two really smashing looking watches, one German, one Japanese for a lot of money because I liked them.

February 10, 2010 09:44 AM #