Community Stories

Are omega (swatch group) struggling?

gatorcpa
Posts
13,122
Likes
17,996
H Hicksmat
https://www.businessoffashion.com/n...watch-prices-as-other-swatch-brands-struggle/
You are aware that the US dollar has depreciated almost 20% against the Swiss franc from 2020 to 2024, right?

https://www.exchange-rates.org/exchange-rate-history/chf-usd#history-table

It is no wonder that less well-known Swatch brands are struggling, along with other marginal Swiss brands. When your largest market's prices have to go up 20% just to return the same amount of francs to the mother ship, there are going to be issues. Currency hedging can only go so far.
gatorcpa
 
texasmade
Posts
2,586
Likes
2,870
gatorcpa gatorcpa
You are aware that the US dollar has depreciated almost 20% against the Swiss franc from 2020 to 2024, right?

https://www.exchange-rates.org/exchange-rate-history/chf-usd#history-table

It is no wonder that less well-known Swatch brands are struggling, along with other marginal Swiss brands. When your largest market's prices have to go up 20% just to return the same amount of francs to the mother ship, there are going to be issues. Currency hedging can only go so far.
gatorcpa
Probably explains a decent portion of the price increases besides just inflation.
 
pdxleaf
Posts
6,016
Likes
20,688
gatorcpa gatorcpa
You are aware that the US dollar has depreciated almost 20% against the Swiss franc from 2020 to 2024, right?

https://www.exchange-rates.org/exchange-rate-history/chf-usd#history-table

It is no wonder that less well-known Swatch brands are struggling, along with other marginal Swiss brands. When your largest market's prices have to go up 20% just to return the same amount of francs to the mother ship, there are going to be issues. Currency hedging can only go so far.
gatorcpa

While the value of the CHF is not in Omega's control, the exchange rate is much controlled by the Swiss government. Switzerland has a large import market so likes a strong currency to lower those costs. They know that their big exports of watches will be more costly, which is also a good thing provided they don't tip the scale so much that purchases of watches decrease.

I don't believe Omega has a seat at the Swiss Treasury but I don't believe that Omega or any Swiss manufacturer is without influence.
 
RevZMan123
Posts
2,067
Likes
4,210
Archer Archer
I'm sure they would. Still doesn't mean it's mystical/mythical...

I too can pretend to always have something to say to make me look profound. I just don't have fanbois clicking the like button on all my posts. 🙄

MY OBVIOUS POINT (maybe only to me) is that Rolex WANTS people to think it's this way. Not that it really is this way.
 
gatorcpa
Posts
13,122
Likes
17,996
pdxleaf pdxleaf
... provided they don't tip the scale so much that purchases of watches decrease.
Which is exactly what is happening to smaller brands.

The depreciation on these are so high, that you'd be much better served putting more money into a Rolex regardless of the relative quality of the watches. At least you'll have something of value because of the superior financial support that Rolex marketing provides.
gatorcpa
 
Mark020
Posts
6,327
Likes
9,917
H Hicksmat
Wow this is a cliquey forum. Very unwelcoming.
Don’t edit like this.
 
Archer
Posts
29,218
Likes
75,506
RevZMan123 RevZMan123
I too can pretend to always have something to say to make me look profound. I just don't have fanbois clicking the like button on all my posts. 🙄

MY OBVIOUS POINT (maybe only to me) is that Rolex WANTS people to think it's this way. Not that it really is this way.

Of course that's what they want - otherwise they wouldn't spend millions telling people it's special.

 
ErichPryde
Posts
3,652
Likes
7,721
RevZMan123 RevZMan123
MY OBVIOUS POINT (maybe only to me) is that Rolex WANTS people to think it's this way. Not that it really is this way.

I think most of us see it, or the discussion wouldn't have come up at all. I have literally had casual, uneducated people tell me that Rolex uses the BEST steel that exists.
 
pdxleaf
Posts
6,016
Likes
20,688
RevZMan123 RevZMan123
I just don't have fanbois clicking the like button on all my posts. 🙄

....

Can't I like both of you? 😁
 
Archer
Posts
29,218
Likes
75,506
ErichPryde ErichPryde
I think most of us see it, or the discussion wouldn't have come up at all. I have literally had casual, uneducated people tell me that Rolex uses the BEST steel that exists.

Before I was "into" watches, just being a regular old engineer, I worked with a lot of different materials including stainless steels. When I first heard of the magical 904L being used on Rolex watches, the first thought was "so what?"

Couple of years ago I visited a fabrication shop where one of my former engineering colleagues now works. They make fittings and seals for piping - they use a lot of 904L. There are bars of it laying outside in their yard - not locked up or protected in any way. Rolex would have you think it's a precious metal, but that just bullshit. They prey on uneducated people...and it works.
 
Syrte
Posts
7,635
Likes
21,906
H Hicksmat
https://www.businessoffashion.com/n...watch-prices-as-other-swatch-brands-struggle/

This is an interesting article. While it’s clear a strong Swiss franc must increase prices overseas, it’s also true that Swatch is much more vulnerable to world economic downturns than other watchmakers because it has a very broad portfolio of brands which cater to the « regular people » and not just to luxury buyers.

It’s become quite clear that the top 0.1% in our world now have accumulated so much cash that their buying power in the luxury segment is immune from crisis. Contrary to the middle class buyers of Swatches mid and low tier brands.

It is worth remembering the history of Swatch. it was formed through the merger of two major Swiss watchmaking conglomerates, and the launch of a cheap and quirky watch designed to beat the Japanese competition on the segment for cheaper watches.
That plan to save a vast array of Swiss brands was sponsored by the Swiss government and the Swiss banking industry.

So indeed the fate of Swatch group has broad stakes for the Swiss economy at large, goes way beyond lining the pockets of some wealthy stakeholders, and preserving it is a much complex affair than to save manufactures which only cater to the most wealthy people on earth.

It’s also why I kind of like the Swatch group. They saved an entire industry through extreme ingenuity, and they did it with the public interest in mind. They had to create strategies for very different brands. And I also like that Nick Hayek had the guts to slam the door on the extremely arrogant Basel World.
Edited:
 
ErichPryde
Posts
3,652
Likes
7,721
Archer Archer
Before I was "into" watches, just being a regular old engineer, I worked with a lot of different materials including stainless steels. When I first heard of the magical 904L being used on Rolex watches, the first thought was "so what?"

Couple of years ago I visited a fabrication shop where one of my former engineering colleagues now works. They make fittings and seals for piping - they use a lot of 904L. There are bars of it laying outside in their yard - not locked up or protected in any way. Rolex would have you think it's a precious metal, but that just bullshit. They prey on uneducated people...and it works.

Exactly. And I think this is where the root of this disagreement came from, you're stating the fact that it isn't special and @RevZMan123 is stating what the marketing is. We all agree that the marketing is BS.

Especially the instagram, reddit, Twitter, cryptocurrency Rolex fans, eat that stuff up like it's fact. Ignorance is an amazing and sometimes untreatable malady.
Edited:
 
gatorcpa
Posts
13,122
Likes
17,996
ErichPryde ErichPryde
Ignorance is an amazing and sometimes untreatable malady.
Ain’t that the truth!

All I have to do is watch the nightly news to see that in action.
gatorcpa
 
Pastorbottle
Posts
2,674
Likes
4,529
dstfno dstfno
So quality would be the only factor that decides on the tier? Then Seiko, Tudor, Omega, Rolex, Longiness, … are all in the same playing field?

I’m not saying that brand equity is the only criterium worth considering, but it’s definitely an important one.
Only to plastic posers and investor wankers!
 
peatnick
Posts
3,048
Likes
32,391
Nick Hyack tells investors “my way or the highway”

https://www.bloomberg.com/news/arti...yst-call-pits-ceo-against-financial-community

Today Swatch Group said investors were seeking privileged information from a company that argues it’s in the business of selling “watches, not shares.”

The Swiss watchmaker told Bloomberg that investors who complained about its level of disclosure on a heated call Tuesday did so because they want “confidential information just for themselves,” saying, “that’s an absolute no-go for us.”

During the call Hyack told the analysts that if they didn’t like his management style they were free to sell UHR SW and invest elsewhere.
 
ErichPryde
Posts
3,652
Likes
7,721
Looks like investors did exactly this several days ago judging from the chart; vs prior day avol, ran 23X volume, and was a big enough move that it DOUBLED the 28 day average volume. Next day ran 10X the new average volume- down. I don't think I've ever looked at Swatch group, very thinly traded and I'd guess it's trading on a European exchange in addition to an American one (looks OTC here, data from SWGAY. I'm guessing it----v looks like it trades on SWX/SIX as ticker UHR).

I'm trying to figure out why Niedzielski had ~120,000USD position, even being as small as 0.11% of his 109M AUM. Definitely a case where I want to own the watch, not the chart.

peatnick peatnick
During the call Hyack told the analysts that if they didn’t like his management style they were free to sell UHR SW and invest elsewhere.
Edited:
 
48 More Posts...
Sign up or log in to reply...

Similar threads

TheChosen1!

Disappointed with Omega QC and Swatch Group Support - Misaligned Hand Brushed Off

TheChosen1! Modern Omega Watches
padders
padders
Posts
160
Views
6K
W

Has anyone purchased leather straps directly from Omega/Swatch?

watchguy172 Open Discussion
W
watchguy172
Posts
0
Views
435
Paradaz

Info request: struggling to find any information

Paradaz Vintage Omega Watches Help, Discussion and Advice
Paradaz
Paradaz
Posts
14
Views
3K
kaplan

As a vintage Omega collector how do you feel about Omega / Swatch Group?

kaplan Open Discussion
J
jmgorman
Posts
57
Views
6K
georgiadawgger

Preference: independent "certified" watchmaker for service or Omega/Swatch?

georgiadawgger Modern Omega Watches
georgiadawgger
georgiadawgger
Posts
3
Views
2K
S

Why are Omega OEM accessories so hard to come by?

Sluggo Modern Omega Watches
ILeicaWatches
ILeicaWatches
Posts
10
Views
2K