If we lose 200 manufacturers is that really a BAD thing?

[TheVTCGuy]

Someone posted a thread recently about the article in WatchTime Magazine, describing how the industry was in serious trouble and some estimates are that 200 of the 600 timepiece manufacturers might be going away within the next year. I guess my question for everyone here is:

Is that a bad thing?

I'm an Engineer, and always go for the most efficient-cost effective procedure of acomplishing the job; that's just the way I think. So, for us as customers, would it really hurt us if our choices of watches were reduced by one third? I say NO. I expect some to disagree but hear me out.

IMHO, the market is awash these days with countless brands. Of course we all know the Rolex, Hublot, Brietling, Omega, but there are SO many, I get a headache reading the WatchTime Magazine trying to cover all the makes. I submit, that by reducing the number by one-third, the products will actually IMPROVE for the remaining two-thirds. The brain trust of the industry, is spread out over 600 houses. If 200 of those were to dissapear, that knowledge, those resources of experts will have to go somewhere, and I submit they will go to the remaining 400 manufacturers making them better. Also, theoretically, the sales of the remaining brands would benefit from a smaller market, since our choices are diminished, more purchases would be made of the manufacturers that are still in business after the reduction. Increased sales for those equals a stronger company and (theoretically) a better product.

I'm not an Economist, or knowledgable in marketing, or honestly know much about running a business, but I think my argument kind of makes sense.

That's just MHO, what does everyone else think?

[allanofcalifornia]

x2! And better products possibly from better competition if the companies that survive are stronger!


Allan

[metal man]

Bottom line is that's people lossing jobs and the ability to take care of thier family. In the USA or overseas, the only ones I want out of buisness are the crooks and the counterfitters. I'm in the steel industry and it's BAD. There are alot of great mills in BIG trouble. I understand what your saying, the cream will rise to the top and only the strong survive but I would much rather be able to keep buying the fine time pcs of my choice than not be able to because there sucking my accounts dry to pay for someone else to stay home and play Wi.

[C. Davidson]

Many good points Paul, well said.

I dont think that the 200 "soon to be out of business" companies will be absorbed by the other 400. True, some of these employees with get jobs in the other 400, but this would be the exception not the general rule. The employess of those 200 some odd companies would most likely get jobs in other fields, other industries.

I see this as the end of a mini golden age. We saw countless complications, great strides in material technology, and a wide array of unique designs. The best and brightest of the Swiss were attracted to the Watch Industry, and it showed. The end of fantastically creative era.