Swatch Group will inevitably reduce the supply of watch movements

Swatch Group has quite a long time carefully, legally, within the legal rules attempts to reduce the amount supplied to other instruments manufacturers. Which mechanisms do you mean? For many years Swatch Group is a supplier of watch movements ETA for many companies that are not part of the Swatch Group.

Recently, nine Swiss watch companies are suing the permission of the antimonopoly authority Comco to allow the Swiss Swatch Group cut the number of available mechanisms. However, the hopes of independent watch manufacturers were not justified - the Swiss Federal Administrative Court has permitted the decision of Comco. Accordingly, the reduction of movement supply by Swatch Group has accepted at the highest level. And now Swatch Group Holding has the right to reduce its third-party companies supply mechanisms as much as 85% of the previous year's volumes.

For some watch companies not only of Switzerland but all over the world, it means an imminent collapse. Unless of course they will not be invited into the Swatch Group, which can only expect a very respected and popular watch companies. The magnitude of changes can be appreciated, remembering, for example, how many watches work on the mechanisms of ETA, or created based on ETA. And the creation of a continuous production of its own caliber requires very large investments that can provide not every watch company. In addition, such reorganization is not quick - the average full production of its own tuning mechanism requires several years. That is, the only solution would be for these watch companies just go out of business. Back in August of this year, for example, the company Louis Erard said that its supply of watch movements came to an end.

Recently, on this occasion, Peter Stas, the CEO of the watch company Frederique Constant made a statement. He said that despite the fact that Frederique Constant owns a manufactory in Geneva from 2001 for the creating absolutely every detail of the movement the company will take another 5 years of development.

Anyway, many manufacturers now have to contend with declining supplies of mechanism and details for them from the Swatch Group. Not included into the Swatch Group the watch companies, for example, will not be able to use spring Nivarox, but which has no analogues. The first steps to reduce the supply of their details and mechanisms of Swatch Group will take from the beginning of the 2012. Plans to limit stated by the Swatch Group in 2002 - from the mouth of Nicolas Hayek. However, since then because of pressure from antitrust authorities until 2010, was installed a "transition period".

Swatch Group currently has more than 70% of the parts and movement in the luxury segment. However, the Swatch Group itself is not a small company - 60% goes to the watch's own brands.