industry_consolidation
Table of Contents
Industry consolidation
The watch industry has dramatically consolidated during the 20th century to just a few watch groups. There were waves of consolidation in the 1930s, 1960s, 1970s, 1980s, and 1990s, all of which resulted in a few companies (Swatch Group, Richemont, LVMH, Kering, and so on) controlling most of the Swiss and European watch industry. Similar consolidation occurred in Japan, where Seiko Group and Citizen Holdings own much of the industry, and in America, which is dominated by Movado Group.
Early Watchmaking Unions
1857
- The Société des Fabricants et Négociants d'Horlogerie (“Society of Watch Manufacturers and Traders”) is founded in Saint-Imier
1869
- September 2 - The Association Boîtes de Montres (“Association of Watch Case Assemblers”) is established in La Chaux-de-Fonds, serving Neuchâtel, La Chaux-de-Fonds, Le Locle, Tramelan, Franches-Montagnes, Bienne, La Neuveville, and the Saint-Imier valley
- Société des Repasseurs, Remonteurs, Faiseurs d'Échappements Visiteurs en Horlogerie (“Society of Ironers, Reassemblers, and Adjusters of Escapements”) is founded in Saint-Imier
- Société des Graveurs et Guillocheurs (“Society of Engravers and Guillocheurs”) is founded in Saint-Imier
- Société des Faiseurs de Ressorts (“Society of Springmakers”) is founded in Saint-Imier
1871
- Société des Monteurs de Boîtes de Montres (“Society of Watch Case Assemblers”) is founded in Courtelary
1874
- Association Monteurs de Boîtes (“Association of Watch Case Assemblers”) is established in Saint-Imier
- November 22 - Société des Ouvriers Faiseurs d'Échappements (“Society of Escapement Adjustment Workers”)
1876
- October 15 - Union des Ouvriers Monteurs de Boîtes (“Union of Watch Case Assembly Workers”) is established in Porrentruy
1877
- Société des Émailleurs (“Society of Enamelers”) is established in Courtelary
1886
- October 31 - Fédération des Sociétés d'Horlogerie du Jura Bernois (“Horology Federation of the Bernese Jura”)
- November 6 - Fédération des Ouvriers Horlogers (“Federation of Horology Workers”) in Moutier
1887
- January 23 - The Assembly of Watch Manufacturers meets in Biel decides to found the FH
- March 20 - Fédération des Ouvriers Repasseurs et Rémonteurs du Jura
- June 5 - The Assembly of Watch Manufacturers meets in Saint-Imier
- September 11 - Porrentruy watchmakers join the FH
- December 20 - Syndicat des Fabriques d'Ébauches Suisses & Françaises (“Syndicate of Ebauche Makers in Switzerland and France”) is founded in Moutier
1888
- Syndicat des Fabricants de Montres (“Syndicate of Watch Makers”) is established
1888
- December 14 - Syndicat des Fabriques d'Ébauches Suisses & Françaises (“Syndicate of Ebauche Makers in Switzerland and France”) is founded in Moutier
1891
- Syndicat des Fabricants d'Horlogerie (“Syndicate of Watch Makers”)
- August 27 - Syndicat des Fabriques d'Ébauches des cantons de Berne et Soleure (“Syndicate of Ebauche Makers in Berne and Soleure”)
The Rise of Brands
1889
- May 27 - The Longines brand is registered in Switzerland by Ernest Francillon & Co. of Saint-Imier, establishing the first “marque de fabrique déposée” in watchmaking. Francillon had marked movements with “Longines” since at least 1869.
1890
- The Diana brand is registered by Alb. Jeanneret & Frères, making this the first two-marque company. They would add Pigeon later that year and Excelsior in 1894.
1886
1893
- March 27 - The Longines brand is registered worldwide
1893
- The Zenith brand is registered
1920
- Indicateur Davoine lists 58 Swiss watch brands
The Great Depression
1924
- January 17 - Foundation of the Swiss Watch Federation
1927
- The LeCoultre family form Société Anonyme de Produits Industriels et Commerciaux (SAPIC) as a holding company for their watch interests, including the Le Sentier watchmaking operation that would become Jaeger-LeCoultre
1929
1930
- Indicateur Davoine lists 77 Swiss watch brands
1931
1932
- Gebrüder Schild & Co is divided into two parts within ASUAG Watch production was reorganized as Eterna SA under General Watch Co., while the movement manufacture ETA SA Fabrique d'Ebauches (ETA) became part of Ebauches SA
- Fleurier Watch Co. is split, with movements going to Ebauches SA
- Atlantic becomes part of ASUAG
1933
- Peseux SA becomes part of Ebauches SA
1937
- SAPIC and Vacheron & Constantin swap shares, effectively merging the companies
1938
- Champagne becomes part of ASUAG
1940
- Indicateur Davoine lists 93 Swiss watch brands
1941
- Derby becomes part of Ebauches SA
1942
- Glycine becomes part of ASUAG
1944
- Valljoux SA becomes part of Ebauches SA
1950
- Indicateur Davoine lists 177 Swiss watch brands
From Watchmakers to Corporations
1959
1960
- April 4 - The Coopérative de Fabricants Suisses d'Horlogerie is formed to help smaller watch producers compete with ASUAG and Ebauches SA
- Indicateur Davoine lists nearly 200 European watch brands
1961
- Manufactures d'Horlogerie Suisses Réunies SA (MSR) is founded by Roland Straumann of Revue Thommen and includes Vulcain, Buser, and Phenix
1965
- Georges Ketterer trades his shares in SAPIC for control of subsidiary Vacheron & Constantin, leaving just a small stake connecting the company to Jaeger-LeCoultre, with the remaining holding company called SAPHIR
- The Coopérative de Fabricants Suisses d'Horlogerie launches the shared brand Jaquet-Droz, featuring watches produced by all 150 members
1966
- ASUAG creates Chronos Holding SA, which took over the newly-defunct Cyma and Tavannes brands, as well as taking a stake in Gruen
- Société Horlogeère de Production et de Participation SA (Sagiter) is formed, containing brands like Camy, Invicta, and Sandoz
1967
- Ebauches SA creates Ebauches Electronic SA and begins production of quartz crystals, integrated circuits, and other electronic watch components
- Economic Swiss Time Holding is formed as a federation of lower-priced Swiss watch manufacturers, including Agon, Basis, Buler, and Ferex
1968
- Société des Garde-Temps SA (SGT) is founded, containing Elgin, Fleurier Watch, Invicta, Sandoz, and Waltham
1969
- The Favre family purchases SAPHIR, bringing Jaeger-LeCoultre and Favre-Leuba together under SAPHIR Group
- The Coopérative de Fabricants Suisses d'Horlogerie is converted into Parsicor Holding, with 135 small watch makers as members, many producing watches under the shared Jaquet-Droz brand
1970
- Indicateur Davoine lists over 1,400 European watch brands
1971
- Economic Swiss Time Holding is integrated into the SSIH, including AGON, Buler, Continental, and Ferex
The Quartz Crisis
1972
- June - Zenith Radio Corp. purchases Movado-Zenith-Mondia
1974
- ASUAG's General Watch Co. expands with five more brands acquired
1978
- Dixi Group purchases Movado-Zenith-Mondia from Zenith Radio Corp. Zenith and Movado become Zenith Movado Le Locle SA and Mondia is merged into Dixi
- VDO acquires a 55% or 65% stake in Jaeger-LeCoultre from the SAPHIR Group; In the 1980s, Günter Blümlein purchases the 20% of Jaeger-LeCoultre owned by a Swiss bank and the 25% owned by Vacheron Constantin
1979
- Cartier Monde is formed as a holding company for the various Cartier businesses
- ETA SA and A. Schild (AS) are merged to become the modern ETA (Fabrique d'Ebauches ETA. SA) and movement production is focused from 136 to just 40
- ASUAG becomes a majority shareholder in Statek Corporation USA, which produces quartz crystals and electronic components
1980
- Management consultant Nicolas G. Hayek recommends that ASUAG and SSIH be combined and redundant components be spun out or shut down
1981
- SAPHIR Group, owner of Jaeger-LeCoultre and part of VDO, purchases the watch and distribution rights of Jaeger of France
1982
1983
- February - Zenith Movado Le Locle SA (part of Dixi Group) sells Movado to North American Watch Company
- July 29 - Swiss banks take expand their stake in ASUAG from 38% to 97.5%
1984
- Arnault Group purchases Dior
- Auguste Reymond is spun out of ASUAG-SSIH in a management buy-out
- Investcorp acquires Tiffany for $95 million
The Rise of Modern Groups
1985
- A massive reorganization of the Swiss watch industry results in the creation of SMH (Swiss Corporation for Microelectronics and Watchmaking Industries Ltd) as a holding company for ASUAG-SSIH and all of its components
1986
- VDO sells 40% of SAPHIR Group (owner of Jaeger-LeCoultre) to Audemars Piguet to raise money and strengthen ties with that brand
1987
- LVMH is formed as Louis Vuitton and Moët Hennessy are combined
- All watchmaking components under Ebauches SA are reorganized under ETA
- Investcorp floats Tiffany shares in an IPO
- Investcorp purchases Chaumet out of bankruptcy amid a fraud case involving the Chaumet brothers
1988
- SMH divests its stake in France Ebauches
- Investcorp acquires half of Gucci
- Sowind Group is established by Luigi Macaluso as a distributor for Breitling, Girard-Perregaux, and Hamilton in Italy and soon purchased a minority stake in Girard-Perregaux
1990
- Günter Blümlein and IWC begin working with Walter Lange to re-launch A. Lange & Söhne
1991
- VDO's three watch companies (IWC, Jaeger-LeCoultre, and A. Lange & Söhne) are organized as Les Manufactures Horologes (LMH) under Blümlein
- VDO is acquired by Mannesmann, which also owns Jaeger
1992
- Sowind Group acquires a majority stake in Lorane Holding SA, owner of Girard-Perregaux
1993
- Cartier Monde is renamed Vendôme Luxury Group and IPOs
- October - Richemont separates its tobacco interests into Rothmans International and its luxury goods business into Vendôme, including Baume & Mercier, Cartier, Alfred Dunhill, Montblanc, Piaget, Karl Lagerfeld, Chloé, Sulka, Hackett, and Seeger
- Investcorp acquires the remainder of Gucci
1994
- Investcorp acquires Ebel from the founding family
- Investcorp renews the Gucci manufacturing license amid much public drama
1995
- Investcorp lists 48.2% of Gucci on the New York Stock Exchange
1996
- April 15 - North American Watch Company is renamed Movado Group; the group owns the Concord, Esquire/ESQ, and Movado brands and controls distribution of Piaget and Corum
- December 12 - Vendôme acquires Vacheron Constantin
- Investcorp sells most of their shares in Gucci to the public
1997
- Q1 - An internal audit recommends that Audemars Piguet divest of the 40% of Jaeger-LeCoultre it holds; Stephen Urquhart leaves Georges-Henri Meylan as sole CEO
- Vendôme acquires Officine Panerai and Lancel
- November 26 - Richemont announces that it will the remaining 30% of Vendôme
- Movado Group begins producing Coach brand watches under license
1998
- Richemont completes a 2-year plan to purchase the remainder of Vendôme and dissolves it
- Sowind Group's Lorane Holding, owner of Girard-Perregaux, buys the 45% of GP Manufacture owned by Bulgari
1999
- February 4 - Vodafone acquires Mannesmann for $190 billion (the largest merger in history) and soon puts VDO (and LMH) up for sale
- Richemont negotiates with Audemars Piguet to purchase their 40% share of Jaeger-LeCoultre for CHF 280 million
- September 14 - Swatch Group acquires Breguet and Nouvelle Lemania from Investcorp as they exit the watch business
- Swatch Group acquires Léon Hatot
- Richemont acquires part of Van Cleef & Arpels
- Richemont begins divesting of Rothmans (tobacco)
- Movado Group begins producing Tommy Hilfiger brand watches under license
2000
- April 25 - Swatch Group acquires Jaquet Droz
- July - MSR, one of the longest-lasting independent groups, declares bankruptcy and puts the Marvin, Revue Thommen, and Vulcain brands up for sale
International Industrial Groups
2001
- November 12 - Fossil Group acquires Zodiac from Dixi, along with Synergies Horlogères, Meliga Habillement Horloger, and Montres Antima
- July - Gucci acquires 91% of Balenciaga
2002
- August 31 - LVMH launches Luis Vuitton Watches at its new Tokyo office
2003
- March - LVMH sells the Favre-Leuba brand to Valentin; rumors suggest LVMH will exit the watch business completely
- December 23 - LVMH sells the Ebel brand to Movado Group for $47.3 million, keeping Ebel's “Private Label Development” arm and renaming it Les Ateliers Horlogers, a developer of high-end watch movements for Dior and others
- Richemont acquires the rest of Van Cleef & Arpels
2004
2006
- Richemont acquires the manufacture Minerva
2007
- October 4 - Citizen Group acquires Bulova and Wittnauer for $250 million, their first acquisition outside Japan
- September 17 - Richemont acquires the manufacturing assets of Roger Dubuis; it would acquire majority control of the brand the following year
2008
- August 11 - Richemont acquires 60% of the Roger Dubuis brand
- April 24 - LVMH re-commits to the luxury watch industry by purchasing Hublot for est. CHF 490 million, bringing Jean-Claude Biver to the company
2009
2010
2011
- June 29 - China Haidian acquires Eterna, including the Porsche Design brand license, for $23 million
- LVMH's Louis Vuitton acquires La Fabrique du Temps, successor to high-end movement specialist BNB Concept, which was purchased by the company a year earlier
2012
- October 25 - MELB Holding is formed to acquire Hautlence
- Fossil Group acquires 51% of movement maker STP
2013
- January 14 - Swatch Group acquires Harry Winston
- April 24 - China Haidian acquires Corum for CHF 86 million
2014
- July 2 - Synergies Horlogères, part owned by Fossil Group, merges with Christopher Ward to become Christopher Ward London Holdings
- July 7 - China Haidian is renamed Citychamp
2016
- January 22 - Richemont acquires the remaining 40% of the Roger Dubuis brand it did not purchase in 2008
2019
2021
industry_consolidation.txt · Last modified: 04.07.2022 02:55 by stephen