ARE THEY USE A DIFERENT STRATEGY?

 

Swiss watch industry is the No. 1 in the world. In fact, nearly 54% of the world sales are the result of Swiss companies, which represent 18.8 billion on 35 billion $. Even if a Chinese watch cost on average 2$, a Swiss watch is sold on average 688$, a sharp rise mainly due to the strong Swiss franc. In other words, 95 % of watches worth more than 1,000 francs are “Made in Switzerland”! Third largest export behind pharm (60.7 billion Swiss francs in 2010) and machine tools industry (21.6 billion Swiss francs in 2010), it must be the only one to have such a dynamism. Offering a job almost 53’000 people in 573 companies, the watch industry even plans to recruit further 3’200 production’s employees until 2016. Swatch has a strong demand since 2009 and Rolex continues to be the No. 1 in sales of luxury watches. It is therefore interesting to ask what the strategies are that each one use for such a success. 

 

1. PRODUCTION STRATEGY

1.1 Rolex

                                                                        

Models are usually:

  • Classical
  • Sophisticated
  • Refined
  • Upscale                                                                                                    


1.2 Swatch

Models are usually:

  • Fashion
  • Sports
  • Design
  • Midrange

 

2. DISTRIBUTION STRATEGY

2.1 Rolex

Same strategy since the creation: a selective stretegy

  • Rolex Store
  • Some legal representatives as Bucherer in Switzerland or Emperor Watch & Jewellery in China.

 

2.2 Swatch                                                                            

Since 2008, Swatch has renewed its distribution strategy:
Nowadays it leds a selective strategy:

  • Swatch Store
  • Some legal representatives as Shop-in-shop store
  • Hour Passion in Swiss Airports 

 

3. COMMUNICATION STRATEGY

3.1 Rolex

  • Sponsoring (cultural & sports events)

Ex. Top 10 Rolex IJRC, Shanghai Rolex Master, World Golf Championships HSBC Champions, 2013 Formula 1 - Great Prêmio do Brasil, Philaromnique orchestra in Vienna, the Teatro della scala in Milan or the Royal Opera House in London 

  • Selection of ambassadors who represent the brand

Ex. Roger Federer, Tiger Woods, Jo-Wilfried Tsonga, Eric Lamaze

3.2 Swatch

  • Advertising 
  • Sponsoring (sports events)

Ex. Red Bull X-Fighters, Free4Style Swatch, Swatch Freeride World Tour, Swatch Skier's Cup Swatch Rocket Air, or The North Face Back Styler by Swatch

 

4. PRICE STRATEGY

4.1 Rolex

  • Upscale watches so high price (the brand want to transmit a successful image; that's mean that people who have a Rolex, have succeeded in life)
  • Price vary between 4'100 euros and approximately 1'200'000 euros

4.2 Swatch

  • Prices available to the public
  • Price vary between 70 and a few hundred euros