We Talk To Swatch Group CEO Nick Hayek About The MoonSwatch

It’s a Thursday morning, and I am waiting in the lobby of the Swatch Group building in Biel, Switzerland. I am a few minutes early for my meeting with CEO Nick Hayek, so I have time to look around in the large lobby. On a shelf, there are brochures of every Swatch Group brand… except […]

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"It becomes apparent to me that Hayek knows what he is doing..," Regardless how a person may feel about the MoonSwatch, this comes across clearly from the interview. Very interesting to get a view into the thinking of a CEO that I would never otherwise hope to speak with. Thanks for sharing this conversation and for asking great questions.

"When asked (and I also asked Omega, as well as an independent third-party selling watches), Mr. Hayek informs me that another effect of the MoonSwatch is that more Speedmaster Professional Moonwatches are being sold. The MoonSwatch gets people into buying Swiss watches, whether that’s another Swatch model (non-MoonSwatch) or the original Moonwatch by Omega. Whichever Mission you pick from the 11 models, Swatch’s mission has been more than accomplished."

But wait, wasn't this supposed to kill Omega as a brand?!? 😉

Okay, this is worthy of a 😬 and a 😟.
You are justified in handing out a .

But it doesn't mean we all 🥰 MoonSwatch.

It does prove that Swatch is run by ☕

Please, no more


😀

“especially because it was clearly communicated that this collection would not be limited. It was a strong contrast to all these collaborations between brands that count on creating hype by pushing limited editions.”

What contrast? Maybe a contrast to companies doing collaborations in 2005 who hadn’t yet perfected modern hype marketing.

“It’s not limited” has become the go to slight-of-hand by Swatch group, which is a bit annoying. Are watch people so dense that this slight-of-hand fools someone?

Unlike 2005, today the most collectible hype items in the world are also not “limited” in the sense Swatch is referring to, in that they are either numbered editions, or otherwise restricted to a pre-determined run of units. Those approaches were maybe still being taken by Omega more recently, but long after more savvy retailers realized that such an approach to “limited” releases were not the way to best generate hype. Instead, other more savvy retailers simply produced in quantities of an open-ended amount and duration never to be expressed to the buying public, though always throttled or point-of-sale constrained in a way to not fully satiate demand or ease of acquisition. This latter approach, of creating a mystique around availability or difficulty of acquisition, Omega perhaps only finally came to with the Snoopy, the NEW321, etc., and now the MoonSwatch. But the world of hype collaborations has been there for going on a decade.

So this regurgitation by Swatch (and it’s media coverage) of “but don’t worry they’re not limited” is baffling, if not nearing sort of rude. Especially when the article then goes on to in wink-wink-nudge-nudge ways describe how Swatch is intentionally restricting access and availability.

“Don’t worry, we’re no longer clumsily attempting to create hype in the 2005 numbered-edition sort of way, we’re instead now joining the modern world by creating hype through more mysterious unavailability and difficulty of acquisition, in the 2015 sort of way!”

Ok cool, thanks Swatch group!

Well, trial and halo effect can be an objective…Hopefully this becomes a marketing case study. Having spent the bulk of my career in Consumer Goods, I’m very cynical about “corporate events” like this or co-branding. What impresses me and irritates at the same time is that Swatch is NOT making these in China. Massive kudos and should be a shot across the bow/inspiration to the folks trapped in supply chain hell, doing business with brutal dictators.

Sometimes a cigar is just a cigar...

My cynicism …usually an expensive effort that results in pantry loading, cannibalization or equity decay. Does not really move the needle. If it’s driving steady INCREMENTAL Omega sales well …cool.

If one is interested in getting one or more of these MoonSwatch's I wouldn't wait too long. Hayek may say this a standard issue item and it will be around for awhile, but once they see sales lagging a bit, or their next event Swatch is ready, they will cut production. Buy 'em while you can.

Yesterday, a few hours after writing my post above, I was in a meeting with a manufacturer of products for Hermès.

Speaking with the manufacturer, about a line of products that he makes for Hermès in “seasonal” colors, he says: “they call it ‘maintaining frustration’ in the client - they want the client to feel they may never have another chance to buy one in this color, to have to search for it, and maybe never find it.”

Those Hermès products also aren’t numbered or “limited” editions.

“maintaining frustration” is a cute accident where a clumsy French translation results in some additional truth

The only people celebrating this news are the profiteers that camp out in front of the Swatch stores every morning and buy up any available MoonSwatch. Hasn't Mr Hayek noticed those on-line sells?

A dozen Krispy Kreems to Robert-Jan Broer for puff piece of the year.

I have followed the MoonSwatch discussion threads here on the Forum with interest, mostly because I am having a hard time grasping the significance and the lure of the MoonSwatch.

In some respect it is reminiscent of the Cabbage Patch Kids or Beanie Babies. ""Collect them all, in all the colors," or else Hans Christian Andersen's "The Emperor's New Clothes." Everyone ooos and ahhhs, but there is less there than meets the eye.

Homage watches aren't tremendously popular here on the Forum, yet this one gets a pass. Perhaps because it emanates from the Swatch group?