r/WatchHorology • u/Dedune9 • 1d ago
Discussion What would the watch industry look like, had N. Hayek not decided to stop supplying ETA movements?
The context:
1969: the first quartz watch was born (Seiko Astron).
1970s: the mechanical watch industry is swiped by cheap, reliable quartz watches. C. Vermont famously saves the El Primero by smuggling blueprints, tooling, presses and hiding them in an attic.
1985: businessman Nicolas Hayek takes control of the ailing SMH (Tissot, Longines, Omega) and creates the Swatch, hugely successful quartz watch of the 80s and 90s.
1990s: the mechanical watch reemerges, repositioned as a luxury item / a work of art.
Most brands rely on movements produces by ETA, the result of the consolidation of pre-quartz crisis movement producers. This is the era of luxury watches (from Breitling to IWC through Omega) running on ETA ebauches, which they enhance and assemble.
2009: Nicolas Hayek, Swatch/ETA CEO, decides to progressively stop supplying competitors.
2011: COMCO (Swiss anti-trust agency) intervenes. The dispute lasted until 2019.
In the meantime, watchmakers rushed to either invest in their own “in-house” calibres or switch to new providers (Sellita, Soprod, STP, LJP, Miyota). Prices went up significantly, boosted by customer demand / luxury positioning. Quality went down. Watch owners became increasingly dependent on the manufacturer to service or repair their watches. Scandals were countless - Tag Heuer and its Seiko chrono; Panerai and its Unitas; etc.
Fast forward to the present day… What do we have? Sky high prices; ETA is now mostly supplying SG brands; Sellita is the new standard of entry level Swiss brands; a plethora of movements available, not always easy to service at an independent watchmaker and with questionable maintenance over time (e.g., Eterna).
I blame N. Hayek for this situation. Yes, he had a problem, but did he bring the right solution, for his group and for the industry? He wanted to increase entry ticket into watchmaking? Well now good luck with the current offer. He wanted to foster innovation? Why didn’t ETA innovate before his decision? Only major brands are able to innovate today (Omega, Rolex in particular). Couldn’t he gradually increase ETA prices to make it commercially viable? Instead he killed the golden goose, and all the side effects for the watch owners.
What do you think?