The benefits of mythmaking For many decades, Swiss watchmakers have been investing efforts and resources not only in promotion of individual brands, but also the notion of ?Swiss watches? as such. Investments were repaid a hundredfold. At the turn of centuries, the marking Swiss Made turned into a great way to get money for nothing. Even some 6-8 years ago, the presentation of almost any Swiss brand was begun with the words: ?Our watches are 100% Swiss Made!?,Rolex, that from manufacturer’s standpoint meant: this only inscription is quite enough reason to buy our products , everything else is second. And this confidence was based on corresponding buyers’ beliefs.

The seventies of the last century – the time of famous quartz crisis – became a turning-point for the notion ?made in Switzerland?. Then it seemed that the industry would not survive. With the advent of new technologies, Swiss watches gave a pedestal of most precise devices to quartz novelties from Japan. Following this, prestige of watches made in the Alps was also shaken. However, the industry managed to not only endure, but even regain the palm of supremacy. And Swiss Made marking played a great role in this, as it started moving purposefully since the seventies. Actually, the lion’s share of all the efforts of Swiss watchmakers in the area of communication for the past 30 years, was to convince buyers: the only precise watches are Swiss, everything else – pathetic copy.

Patek Philippe solved the issue in its own way: simply refused from use of labels. It may seem strange that such a drastic step to destruction of Carthage belongs to this company. However, if you consider the company’s policy, its steps over the past few years and the situation in the market, it becomes clear that events had to develop in such a manner.

The first led to the fact that, instead of plants-monsters, which received almost ore at the inlet, and issued ready watches at the output, there appeared dozens of highly tailored firms. Some of them produced billets for cases or mechanisms, others – finished those intermediates, others produced glass and gaskets, fourths produced a narrow range of drive gears, fifths assembled everything together.

For several years, Patek Philippe is, so to speak, going its own way. In terms of technological developments and brand’s image, Patek is far ahead all the nearest competitors. This allows them not to follow general trends, and work on their own program.

beginning of the end

Note that we do not say that watches became worse. Details of machinery, manufactured under the supervision of same ETA engineers on same machines in Switzerland and China, do not differ among themselves. However, the status of Swiss Made labeling was really significantly hurt.

So nothing prevents a newly formed company XXX to agree with a known expert on design of the collection, order cases received from YYY company in accordance with drawings, buy ETA arrangements from the same and assemble finished watches from all this in ZZZ factory. These result in a watch. Not just watches, but Swiss Made watches, since all companies and factories, involved in the chain, are Swiss!

End of sweet times Patek Philippe’s statement about refusal from Swiss Made labeling does not mean the end of Swiss watch industry, it means only the end of free ride. Until now Stern’s words did not receive enough resonance, but it is just a matter of time. Probably, there will be similar steps of other status manufacturers, and faith in Swiss watches will fall. ?Can I buy a product or XXX brand, or it is also made in China?? – These thoughts will necessary occur in buyers.

Being first among manufacturers, Patek ?hid? tourbillon within watch, saying that it is not important for watch, and in recent years, the company generally refrained from models with tourbillons. Instead of effective complications, Patek began improving details of the mechanism and development of new technologies. They offered a new profile of wheel gearing teeth, new balance, trigger wheel, a new spiral.

This situation created a surge of OEM marks, where the head office is no more than sales department, which deals with marketing, and all other operations, including development of models, are divided between contractors. The case came to funny: there are companies which, having a state of 5-8 persons, report on the level of tens thousands watches release each year. And in terms of Swiss law, there is nothing to find fault with.

Of course, the marking made a magical effect not on all. In some countries it turned into a cult, in some – not. For example, in Russia and many other emerging markets, brand is not so important, as an inscription Swiss Made on a face. But for buyers in the UK or Germany, it is not so important. There, a consumer takes a closer look at the price and objective characteristics of goods. Therefore, many Swiss companies that supply products to these markets refuse from labels in favor of lower costs. For example, Rotary delivers in Russia only models assembled in Switzerland, but not avoids ordering watch manufacture for English market (by the way, main to Rotary) to well-known Asian companies.

Thanks to the highest image of all watch brands, Patek Philippe in general may refuse any marks on watches, except for its logo. So Stern’s words that Geneva Seal marking all Patek Philippe watches have is a more powerful signal of quality than Swiss Made, is no more than a nice gesture. Being the first to declare about refusal of Swiss Made marking, Patek only further consolidated its image.

Those who are at least somewhat experienced in customs matters, are also aware of ?country of origin? concept’s existence and rules, on which it is defined. Usually, these rules are common to all products. Swiss Made – the rarest case where such rules are established for specific types of goods. Under Swiss law ?On protection of brand names and appellations of manufacture?, there exist fixed requirements watches should comply with, so that to be marked Swiss Made on a face. And Federation of Swiss watch industry executes more than a serious fight against companies that violate those rules. Legal definition of requirements for watches to be considered Swiss played a significant role in raising the prestige and the very marking, and the entire industry.

In order to attract attention of consumers or sale their watches $ 100 more expensive, companies from France, Italy, or, God forbid, Hong Kong had to invent a new design, technology, give the product some unique properties. In other words – to improve the product. Swiss had no need to strain: treasured inscription guaranteed that even the most primitive product would be sold at a price not less than $ 200. And if watch had sapphire glass or was able to provide more or less tolerable watertightness through trifling expenses on rubber compressors, the price grew at least twice.

Same seventies,iwc watches, when targeted construction of ?Made in Switzerland? concept started, can be regarded as the beginning of the end for prestige of Swiss Made marking. This concept was led to today’s crisis due to ideas, on which the recovery of the industry was based 30 years ago. In terms of the article’s subject, two of them are most important: transition to a specialized enterprise, in which each company has a limited range of operations, but does so with great efficiency, and positioning of Swiss watches as a special, perfect product.