Why Nick Hayek Pulled The Swatch Group Out Of Baselworld

[GradyPhilpott]

Nick Hayek explains why Swatch pulled out of Baselworld.

Hayek told CNBC that in May he met with chairman and vice-chairman of MCH, the parent company of the Baselworld show. (It's not clear which executives he met; MCH has a board of directors and an executive board.) "I invited them to see me." He noted that they never asked to see him, which he said he found strange, considering that the Swatch Group is the biggest watch company in the show.

Hayek said he wanted to be "constructive." "I told them 'Look, guys, there is a big opportunity. The Swiss watch industry is booming. Now you have to make the changes. We are there to help. All of us. Not only the Swatch Group. Also, the other players of the Swiss watch industry and of the international industry. But you must open up. You must do something now. You don't have to act like you have been acting in the past: a little bit arrogant, a little bit snobby and not able to do something new.'

"And they promised me, they said 'We [will] do this' and 'We [will] do this.' And then, what happened? They just continued the same way."

https://www.hodinkee.com/articles/wh...-of-baselworld

[SG56]

He's right! I would have done the same.

[Art 1]

Can't get much more arrogant then Rolex is right now.

[beshannon]

Over the last two years 850 exhibitors have left the show. Attendance has dropped from 150,000 to 100,000 over the last three years.

Good for him! Clearly this show is no longer reaching buyers and seems to be more of a vanity event for the manufacturers and a photo op for the attendees.

I stopped paying attention years ago when it became obvious that few companies could even deliver the products they were showing in the same year.

[Chewbacca]

I’ve always liked the way the Hayek’s offer an unfiltered window into their companies, and the industry.

If it weren’t for Swatch and Hayek Sr. there wouldn’t be a Swiss industry today.

Thanks for sharing GP.

[GradyPhilpott]

Originally Posted by Chewbacca

If it weren’t for Swatch and Hayek Sr. there wouldn’t be a Swiss industry today.

That's an absolute verity.

You're most welcome.

[imperio]

Great read... I was going through the article when this watch caught my eye. Off topic, but anyone know what model/reference this is? It looks amazing!

[Baco Noir]

Originally Posted by imperio

Great read... I was going through the article when this watch caught my eye. Off topic, but anyone know what model/reference this is? It looks amazing!

It is the new Apollo 8 model coming out in a few months. Ceramic case, but std Speedy moonwatch dimensions. It’s on my wish list.

[ArtNouveau]

Originally Posted by Baco Noir

It is the new Apollo 8 model coming out in a few months. Ceramic case, but std Speedy moonwatch dimensions. It’s on my wish list.

It's actually a larger case, here are the specs from Omega: 44.25mm diameter, 21mm lugsize.

[subtona]

Originally Posted by Chewbacca

I’ve always liked the way the Hayek’s offer an unfiltered window into their companies, and the industry.

If it weren’t for Swatch and Hayek Sr. there wouldn’t be a Swiss industry today.

Thanks for sharing GP.

They swatch group continues to revolutionize the industry
*Swatch watches saved industry from quartz revolution
*Purchase of ETA resulting in a slew of new in-house movments
*Telling Basel to step up their game.

I’m sure I left very much out and look forward to any additional points.

[Etschell]

and then he thought, how can i reduce expenses and increase the profit and loss to increase the FMV of the company on the open market.....

[Star Ferry]

Originally Posted by Etschell

and then he thought, how can i reduce expenses and increase the profit and loss to increase the FMV of the company on the open market.....

That's his job. It'd be wrong for him to take a salary and not think that. Baselworld was supposed to be helping him do his job -- instead it seems like an overpriced party where the "customers" foot the bill.

[Etschell]

Originally Posted by Star Ferry

That's his job. It'd be wrong for him to take a salary and not think that. Baselworld was supposed to be helping him do his job -- instead it seems like an overpriced party where the "customers" foot the bill.

shareholder's foot the bill. but i digress - it is probably a good decision. their model is switching from traditional B&M to online for many brands. no reason to use a trade show when they don't need to.

[tyler1980]

no one gets excited about their basel releases. Not so with Rolex, Patek, or even Tudor. They were right to leave as i wouldn't want to play second or third or fourth fiddle either.

Nothing against the Swatch brands as i quite like some of them a lot, but there is no denying it has to be embarrassing for them.

They are moving online a lot more as well so good for them but bruised egos has to be a factor. I said it before, but thats also the reason they pulled out of Harrods. They wanted to be featured in more premier areas and were told no.

[superstarmar]

Is he related to Salma Hayek?

[Etschell]

Originally Posted by tyler1980

no one gets excited about their basel releases. Not so with Rolex, Patek, or even Tudor. They were right to leave as i wouldn't want to play second or third or fourth fiddle either.

Nothing against the Swatch brands as i quite like some of them a lot, but there is no denying it has to be embarrassing for them.

They are moving online a lot more as well so good for them but bruised egos has to be a factor. I said it before, but thats also the reason they pulled out of Harrods. They wanted to be featured in more premier areas and were told no.

stop making 100 versions of the same watch. it is their own fault.

[tyler1980]

Originally Posted by Etschell

stop making 100 versions of the same watch. it is their own fault.

I do have to admit I was overwhelmed with the volume of Omega releases. There were some good ones too and they get buried in the coverage with a bunch of other watches that don’t matter.


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[Baco Noir]

Originally Posted by ArtNouveau

It's actually a larger case, here are the specs from Omega: 44.25mm diameter, 21mm lugsize.

Dang, you are spot on. Thought I read it was the same.

[superdog]

Originally Posted by tyler1980

no one gets excited about their basel releases.

I do.

And I’ve got an SMP 300 on order. That I was just told is late. Not too thrilled about that.

But I love the brand and their watches.

I very much look forward to what they release.

[tyler1980]

Originally Posted by superdog

I do.

And I’ve got an SMP 300 on order. That I was just told is late. Not too thrilled about that.

But I love the brand and their watches.

I very much look forward to what they release.

my point was its not the same as the tudor, rolex, or patek buzz that gets generated. That doesnt mean they didn't have good stuff but the excitement was many levels lower in the blogs, on the forum, from the coverage at the event, etc.

On a side note, Tudor got a ton more coverage and buzz this year than i remember in the past so they did a great job in particular so they are an example of getting a really good bump from their launch.

[superdog]

FWIW, I agree with Swatch.

And this is the biggest waves they have made in a while.

Good for them.

[superdog]

Originally Posted by tyler1980

my point was its not the same as the tudor, rolex, or patek buzz that gets generated. That doesnt mean they didn't have good stuff but the excitement was many levels lower in the blogs, on the forum, from the coverage at the event, etc.

Fair enough.

[Etschell]

Originally Posted by superdog

Fair enough.

panerai has a similar problem.

[Star Ferry]

Originally Posted by Etschell

shareholder's foot the bill. but i digress - it is probably a good decision. their model is switching from traditional B&M to online for many brands. no reason to use a trade show when they don't need to.

How do shareholders compensate the CEO? Options tied to the stock price. Their interests are aligned.

[imperio]

Originally Posted by Baco Noir

It is the new Apollo 8 model coming out in a few months. Ceramic case, but std Speedy moonwatch dimensions. It’s on my wish list.

[fskywalker]

Originally Posted by Baco Noir

It is the new Apollo 8 model coming out in a few months. Ceramic case, but std Speedy moonwatch dimensions. It’s on my wish list.

Sent from my iPhone using Tapatalk Pro

[Spartacus]

The recent Patek museum event in New York City was incredible. I bet a Baselworld type event with retailers would be absolutely epic.

[77T]

Methinks the Hayek doth protesteth too much...

Are his brands are doing so well financially?

When one day they say “yes” - and then later “no”- my thoughts go to expense reduction. Swatch makes its money in many ways - like movements and parts. Those don’t require the marquis level exposure of an expensive trade fair.

Withdrawal saves a lot of expense


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[tyler1980]

Originally Posted by superdog

FWIW, I agree with Swatch.

And this is the biggest waves they have made in a while.

Good for them.

i agree as well. Arguably their speedy tuesday release(s) made as big of a wave as their basel. Its effective and their level of customer engagement is on a different level with embracing the whole speedy tuesday thing for example.

Good or bad long term i have no idea, but they engage with their customers in an entirely different way. I tend to see that as a positive.

Patek just got instagram this year and its pretty bad and they clearly dont know how to do it. They dont post anything and then about once a month they flood my stream with 20 consecutive posts that are neither eye catching or in a format an experienced social media savvy company would do.

[SearChart]

Originally Posted by imperio

Great read... I was going through the article when this watch caught my eye. Off topic, but anyone know what model/reference this is? It looks amazing!

That looks good!