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Swiss Watchmaking Industry: the World as Market
October 2, 2008

Geneva, 1541. Jean Calvin’s reforms prohibiting wearing jewellery forced goldsmiths and other jewellers to master new craft – watchmaking.

Heads of Gold of the Past.

By the time the first pocket watch with a minute hand was designed watchmaking had become one of the principal crafts in Geneva. Religious pursuits in other European countries made Switzerland a sanctuary for watchmakers from Italy, France and Germany. In 1601, when watches made in Geneva had already been famous for their quality, more than 500 watchmakers created a Watchmaking Guild – the world’s first professional association for watchmakers. As there were too many watchmakers in Geneva part of them decided to move to other quieter towns.

Owing to Daniel JeanRichard (1665-1741), a goldsmith who was the first to come up with the idea of division of labour in watchmaking, many craftsmen moved to live and work in the area in northern valleys of the Jura mountains which stretch from Geneva to Rhain. In 1770 Abraham-Louis Perrelet (1729-1826) created in Le Lockle an “eternal watch” which was wound in the pocket from any move and which became the first ancestor of the contemporary self-winding modles. More than 50 years later in Valle de Joux one of the founders of the famous Patek Philippe brand Adrian Philippe (1815-1894) invented a clock with a pendulum winding.

Discoveries and inventions resulted in creation of complicated models with additional functions of chronograph, perpetual calendar, and countdown. In the beginning of the 20th century in the result of introduction of new technology the mass production appeared: Pierre-Frederique Ingold (1787-1878) invented the machine for accurate and quick carving of plates and gear wheels, and Georges-Auguste Leschot (1800-1884) introduced the principle of interchangebility of spare parts as a basis for standardization.

In that period the boost in production lead to the superiority of Swiss made watches in the global market. The period after the World War I was notable for the appearance and quick growth of popularity of wrist watches. In the mid 1920s in Grenchen the first self-winding wrist watch was created.

In 1967 specialists from the Centre Electronique Horlogerie in Neuchatel designed the world’s first quartz wrist watch – the famous Beta 21. Since that time the novelites changed one another without a break: LED- and LCD- displays, Swatch, quartz wrist watches without batteries on so on and so forth. For more than 400 years already craftsmanship, advanced technology and continuous innovations allow Swiss industry to hold complete control of world market of watches.

Today

After mechanical engineering and chemical industry Swiss watchmaking is the country’s third biggest exporter which has only one market – the whole world. Swiss watches are sold in all parts of the world. And what is more surprising they are affordable practically for everyone: from fashionable quartz watches at moderate prices to mechanical masterpieces made of gold decorated with precious stones at the prices of several million dollars. Wide diversity and professionalism guarantee the strong position of this business in all times.

Compact and Flexible

Historically Swiss watch industry has always had a structure based on the strict division of labour. Craftsmen provided assemblers with movements, and assemblers provided people with ready made watches.

Technological revolutions (e.g. beginning of the quartz era) and difficulties in economic situation in the 1970s and 1980s lead to redundancy in the watchmaking industry: by 1984 the number of employees dropped by more than 30%. During the last 15 years this number remains stable. The number of companies in the industry also reduced from 1600 in 1970 to 600 in 2000.

The average number of employees in the companies is more or less stable: about 60 people. Most watchmaking companies are small in size (less than 100 workers), and only about 10 companies employ more than 500 people.

Problem of Choice

One of the main advantages of Swiss watchmaking industry as against foreign competitors is its ability to supply the customers with the wide range of products.

Whatever you want, among the products of Swiss watchmakers there will be just the watch you need. The only problem of choice here is the vast number of various models.

Tomorrow

According to data provided by economy experts Swiss watchmaking industry was dying in the mid 1970s when it was vulnerable due to the economic crisis.

What the situation is now? A successful restructurisation made watchmaking industry one of the brightest stars at the Swiss economic sky. Moreover, it has been one of the most successfully developing branches of economy for the last 7-9 years. It annually breaks its own records in export – the figures are absolutely incredible.

Technorati tags:watch, wrist watch, Swiss watch, chronograph, tourbillion, Armitron, Cartier, Casio, Citizen, Longines, Omega, Seiko, Swatch, Tag Heuer, Tissot, news

Filed under: Industry News, Watches General — Ann @ 8:30 am

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