Watch Groups

[schoolboy]

Hello TRF members

Bear with me on this one please, it might be long.

I was reading online the other day, about different brands in watches, then I became aware of watch groups. I had read of Swatch on here before, but I guess I hadn't taken it too seriously.

It looks like there is the Swatch group and the Richemont Group.

It kind of blew my mind to realize that A LOT of brands are owned by the same group.

So here are my questions...

#1)How do two brands that start off independently, and at different times, one day come to be part of the same watch group? (I can imagine answers, but I appreciate feedback).

#2)And, how independent from each other are two different watch brands that are owned by the same group?

For example, say we have two brands: Brand X and Brand Y.

#3) How does X invent something new that Y doesn't if they are owned by the same group?

#4) Wouldn't you think that two brands owned by the same group share their research and innovations?

#5) Or, even though they are owned by the same group is X still good ol' X, and Y still good ol' Y, both working independently, and in a way being each others competition, as far as movements, complications, craftsmanship and all?

Thanks friends

[MorningTundra]

You might want to google “business conglomerate”... this practice isn’t unique to the watch industry.


Sent from my cracked, broken hand wound phone. IG @morning_tundra

[schoolboy]

Originally Posted by MorningTundra

You might want to google “business conglomerate”... this practice isn’t unique to the watch industry.


Sent from my cracked, broken hand wound phone. IG @morning_tundra

Hi Colin, thanks for the reply. I will surely look into this.

What do you think about question #5???

[MorningTundra]

Swatch own ETA, who provide ebouche to many of the corporate subsidiaries which differentiate themselves through case and dial design and movement finishing.


Sent from my cracked, broken hand wound phone. IG @morning_tundra

[asiparks]

As mentioned it's not unique to watches, SEAT, Skoda, VW, Audi, Lamborghini, Bentley and Bugatti are all owned by the Volkswagen Group

[Fredrik]

One reason for #1 is that a lot of the old watch manufactures basically went bankrupt and were bought by these groups in the late 70s and early 80s. Omega is an example of this.
Breitling is an example of a manufacturer were the right to the names and trademarks were bought when they had to shut down but are not owned by the groups.

The groups have formed over the years and the Swatch group was built up slowly by acquiring different brands.

Oh, and LVMH is another example of these groups.

[tyler1980]

when you are a large company in any industry you need growth to please shareholders. Sometimes the easiest way to achieve growth is by acquisitions. Look to the oil industry or the airline industry for an example.

[schoolboy]

Thank you all for your replies. I feel like I understand why these companies were bought out, if that’s what happened.

Maybe during the Quartz crisis, their losses forced them into being part of a watch group,.

[schoolboy]

Originally Posted by asiparks

As mentioned it's not unique to watches, SEAT, Skoda, VW, Audi, Lamborghini, Bentley and Bugatti are all owned by the Volkswagen Group

Thanks for your comment Asiparks.

Here is my question...

Assuming that Bentley was bought out by VW (I don’t know that this is true), is it safe to say that Bentley is still Bentley and not just a fancy VW?

[Fredrik]

Originally Posted by schoolboy

Thanks for your comment Asiparks.

Here is my question...

Assuming that Bentley was bought out by VW (I don’t know that this is true), is it safe to say that Bentley is still Bentley and not just a fancy VW?

This is different between all of the groups and within the groups themselves too. They usually do not want to talk a lot about it, but it is obvious that they do take advantage of it. I do know that ALS is operating quite independently but the rest of the brands in the three large groups? I do no know. Swatch definitely wants everyone to believe that Omega for instance is not just part of a large group. Is this the case? Well, you probably have to start working there to figure it out.

[Andad]

Originally Posted by asiparks

As mentioned it's not unique to watches, SEAT, Skoda, VW, Audi, Lamborghini, Bentley and Bugatti are all owned by the Volkswagen Group

You missed the best brand in that group.


DUCATI

[nick c]

Originally Posted by directioneng

You missed the best brand in that group.


DUCATI

He forgot Porsche as well LOL

[schoolboy]

Originally Posted by Fredrik

This is different between all of the groups and within the groups themselves too. They usually do not want to talk a lot about it, but it is obvious that they do take advantage of it. I do know that ALS is operating quite independently but the rest of the brands in the three large groups? I do no know. Swatch definitely wants everyone to believe that Omega for instance is not just part of a large group. Is this the case? Well, you probably have to start working there to figure it out.

I see what you mean.

Thanks for your feedback