Frederique Constant response to the reduction of mechanisms supply from Swatch Group

The watch company Frederique Constant CEO Peter Stas has published a treatment, commenting on Swatch Group plans to reduce supplies of the movements to the third parties. The situation is really catastrophic for many companies - we need only recall how many watches are equipped with caliber ETA and how expensive to create in-housed mechanisms.

Peter Stas marks that after the Swatch have being served as a supplier of watch movements for as long as 20-30 years, the holding’s decision to reduce supplies is made in Swiss industry the effect of the bombshell. For a long time of collaboration, many companies have developed historic relations with Swatch. However, in spite of that the anti-trust agency Comco, which should protect the rights of small businesses, is already allowed to reduce supplies by 30%. This means a slow approach to the collapse of some of Swiss watches creators, since they simply have nothing to put in them as a mechanism. Unless of course in the near future there will be no alternative calibers to Swatch Group.

As Peter Stas says, many independent watch producers have just to give up and go out of business. It's a lot of people who have lost their jobs simply by the will of one watch tycoon. Of course, another option is possible - the most valuable of these watch companies will be forced to adhere to the holding, unless of course receive such an offer, just to be able to continue the usage their supply of movements.

The watchmaker Frederique Constant itself creates manufactory calibers from 2001 on-site, which occupies 3 200 square meters in Geneva. However, even under these circumstances the company will need about five years to begin producing their own necessary components for the movement. At the moment, the development of oscillatory system Frederique Constant is fulfilling. By 2015, the company is planning to increase their independence, leaving only two suppliers of details.

At this point in the trial the nine watch companies dispute the decision of the antimonopoly authority Comco. A final court decision will be made before the end of this year and yet still hope for a successful course of the affairs.

The watch company Frederique Constant was founded in 1988. In the outgoing year, it issued 120 000 watches, which are presented in the 2700 retail outlets over 100 countries. Frederique Constant is positioned primarily as a producer of the "affordable luxury" segment. The retail price for its watches is varied from 1 to 5000 francs.