Facts about Swiss watches confirming their status
In 1541, the French king Louis XIV banned residents of European countries from wearing precious metals. In response to his actions, the Guild of Watchmakers was formed in Switzerland, which began to produce watches of extraordinary beauty. The community includes the best masters of their craft. And their work could rival any jewelry made of precious metals.
The clocks of the Geneva Clockmakers Guild were works of art. Such a high level of craftsmanship has been preserved to this day. Swiss watches have been and remain the standard of watchmaking art.
Several years ago, the largest Swiss financial conglomerate, Credit Suisse, presented to the public a report on the Swiss watch industry. Although some information from this document is already outdated, it allows us to form a general opinion about this direction of the country’s economy. Below are some points from the Credit Suisse report.
- The global watch market is dominated by only two countries: Switzerland and China.
The Federation of the Swiss Watch Industry estimates that approximately 1.2 billion watches are produced worldwide each year.
Facts about watches indicate that China is the leader in the number of manufactured products. However, for the most part, 99%, these are cheap quartz models. But in the premium watch segment, Switzerland is practically a monopolist. She has no competitors. Moreover, 95% of the products produced are exported.
It is noteworthy that China is one of the major buyers of luxury watches, and Hong Kong is a major transit center through which trade routes to Asia pass.
- In the 1970s, the Swiss watch industry suffered such a severe decline that it was declared “dead”, but then began a period of recovery
The decline was explained by the lack of demand for luxury goods. Since the mid-1990s, the need for expensive accessories has once again begun to gain momentum. Switzerland followed the beaten path and focused on the production of premium watches. Soon the demand for the goods of Genevan craftsmen became enormous.
However, not only expensive models are produced in Switzerland. There are many brands that make affordable quartz watches. This technique allows you to capture a large share of the market, satisfying the needs of a wide variety of audiences.
- The rise of the Swiss watch industry has been fueled by demand in China
The last few decades have seen tremendous demand for luxury goods in China. This interest also affected Switzerland. Profits from watch exports to the Middle Kingdom increased from 16.8 million Swiss francs in 2000 to 1.6 billion in 2012.
Tourists from China also contributed to the growth in sales of luxury accessories. Audit firm KPMG estimated that in 2012, about 37% of Chinese tourists visiting Switzerland bought a watch there.
In 2012, exports of premium watches to China fell sharply. The reason was the anti-corruption policy pursued in the Middle Kingdom, as well as a slowdown in economic growth.
- The Swiss watch industry is dominated by vertically integrated conglomerates
Here is a list of the largest companies: Swatch Group (unites brands such as Swatch, Omega, Harry Winston and Tissot), Richemont (Montblanc, Piaget, Cartier, Alfred Dunhill brands), LVMH (Tag Heuer, Hublot, Zenith brands) and Rolex ( brands Rolex and Tudor).
As stated in the Credit Suisse report, to build and maintain vertical integration, the listed . Large holdings “get their hands on” suppliers of components: hands, straps, mechanisms, cases, etc. In addition, they increase sales of their products by selling licenses.
- The inscription “Swiss made” on the watch is placed only under certain conditions
There are many watches with the inscription “Made in Switzerland”, but few people know that this is not done on every model produced in this country. To receive the “ Swiss made” mark, the watch movement must be Swiss. 50% (minimum) of its parts must be manufactured in this country. It must be assembled, placed in a case and tested in Switzerland.
- The Swiss watch industry is safe for now
At the moment, the Swiss watch industry is not in danger due to stable demand from countries such as Vietnam, India, Russia, Ukraine, Malaysia, South Korea and Mexico.
The fact that interest in watches does not wane can be explained by the fact that this is practically the only jewelry that men can wear. In addition, you can never have too many watches: you can have a separate model for each style of clothing. And you don’t need garages or fortified premises to store them. A compact safe is enough.
Models such as the Apple Watch smartwatch are not direct competitors to premium Swiss watches. However, with the advent of the smartphone era, watches have almost lost their main function - to show the time. Now, with their help, people indicate their status and social position, or use them as decoration that complements a certain image.
Another significant difference between modern smart watches and premium Swiss watches is that the value of the latter is timeless. On the contrary, a true work of watchmaking will only become more expensive over the years, which cannot be said about mass-produced digital models, even such popular ones as the Apple Watch.
Why do you need a watch?
Why do we need a clock? What do you think would happen if no one had a watch? If it is difficult for a child to answer a question, start thinking out loud yourself - fantasize (Here is what children can answer: “Dad wouldn’t know when to go to work”, “We would go to Misha’s birthday, but wouldn’t know the time. Come - and there’s no one there anymore. And we’d be upset,” “We’d go to the toy store, but it’s closed,” “We’d be late everywhere,” “We could miss the train or plane”)
How do you think people used to live without watches? How did people determine time? (Give your child the opportunity to think, think for yourself. After all, there was a time when there were no clocks. How did people get by without them?)
It turns out that there were clocks before, but in those ancient times they were different -... alive!!! Guess what a “live clock” is? What could they be? After asking a question, always pause to think and answer. If your baby is shy or at a loss, start thinking out loud and asking yourself questions. The child will gradually listen to you and reason with you. And then he will join the discussion and express his opinion. Let the child express the most fantastic assumptions, encourage him for them - he thinks and he expresses HIS OPINION, and this is VERY VALUABLE! It is much easier to retell someone else’s opinion to a preschool child than to have your own and express it in words. And in our modern life, the ability to formulate one’s point of view is the basis for success in many matters. After your child has dreamed up his imagination, tell him about a real live clock.
