One of the hottest topics in the industry lately is the announcement that the famous Swiss watch movement manufacturer ETA (now owned by Swatch) was going to stop making “ébauche” movements for third parties. From what I understand, this rumor has been going around for a while. But now it seems to be a done deal, and by the end of 2010, if you’re not under the Swatch umbrella, no more blank ETA movements for you. Period. Marvin CEO Cécile Maye was interviewed by Swiss TV on the topic during the GTE show last month where she said:
“Any entrepreneur these days needs to ensure the long-term survival of his business by diversifying his supply sources. There are plenty of alternatives today on the market.”
Thewatchlounge.com’s Tom Mulraney penned a really good article about this lately. In it he asks “do consumers really care?” Reading some of the comments, the answer seems to be “yes, but a very small percentage.” Which I guess is a good thing. My gut feeling is that the watch vendors care a whole lot more than the end consumer (in a given price range of course). Why? Because something this major is likely to disrupt manufacturing and cost structures for companies who use ETA – and that’s pretty much most of them.
Luckily, there are plenty of other movement providers around. Marvin uses a wide range of such suppliers in its models. Manufacturers like like Sellita for example, who will surely pick up where ETA leaves off. Marvin uses ETA, Sellita, Soprod, and a bunch of other providers. Our new Malton 160 will actually sport four different movements (depending on the version) including Dubois-Dépraz, ETA, Sellita, and Ronda. I suspect most other companies have not put all their eggs in one basket either (at least, I hope not!).
What I also find interesting is the impact this issue is likely to have on Chinese movements. From their perspective, ETA cutting off supply is likely a good opportunity to grab more market share. Why not. Chinese movements seem to be improving in quality over time – even as carbon copes of ETAs (Seagull?). Positive perception isn’t there yet, and from what I read, many are still highly dismissive of Chinese movements (and watches – Longio?), but it pays to cover your six (as they say in military aviation). I would love to hear your perspective on this!
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Hi there ! We add an article two days ago, with an exclusive interview from ETA. The fact is that ETA won’t sell any blanks to any company in any way, including companies within the Swatch Group.
Check this out : http://thewatchlounge.com/eta-withdrawal-the-fake-revolution/
Thanks for your great article !
Yes I saw the article as well it was awesome and very insightful no doubt. This is a big deal going on. I’ll be interested to see how it plays out.
Well, I think we can see that ETAs decision is very good for the watch industry. More watch houses are becoming more self sufficient which will, in the end, add to the prestige of their timepieces. I think the Chinese are already starting to clean up. I’ve picked up some watches with Chinese movements and so far, no duds. They’re workhorse even if they don’t photograph well. Start up watch companies could use them and develop a decent reputation for value. Also it’s an affordable option for the budding horologist and watch enthusiast to get them started on the road to Patek
The Russians purchased Swiss machines to make old swiss mov’ts years ago, while Japan easily stands toe-to-toe with the swiss (yes my opinion but I’m sure shared by many). So how do I see it?
ETAs decision will make the Swiss watchmaking legacy stronger (which I think was Mr. Hayeks intention). Their status and prestige will grow (along with prices)and remain secure. My hope is that there will be growth at all the other levels of watch production because others will enter to compete for marketshare. From entry level first time buyers, to enthusiast, to WIS, and upper echelons.