Ornatus-Mundi
[Zenith]
7136
Costs and reliability… and the ETA acclimatisation
are big issues. While almost any watch lover would appreciate increased choice from more in-house movements or a greater availability of standard movements, few are willing to pay the price for this. ETA has a great reputation for providing the industry with proven and reliable workhorse movement that just do that - work.
Since the construction is decades old as are the tools, the production equipment can be considered to be written off. ETA makes significant profits from supplying these movements (even if they declare otherwise).
However, for any new player in the market the hurdles are considerable. Customers (end customers as third party watch brands) are used to both: ETA reliability and prices. Now an ETA price can only be achieved through the really ow cost of production I mentioned plus the decades of experience and optimisation that went into each and every ETA movement.
Any new entry into the market would have to pay a high prices for construction, tooling and testing which somehow will reflect itself into the finally price.
I talked to quite a lot industry people (those who could potentially assist in developing ETA alternatives) who all say the same - people want ETA quality and prices.
This somehow will not pay out.
Cheers,
Magnus
Breaking news: Swatch Group and Swiss Competition Commission agree on movement deliveries!
The Swatch Group still holds a market-dominating position* for mechanical movements (70% market share) and key movement components (90% market share), respectively, with its daughter companies ETA and Nivarox being the main players. In 2009 Swatch Group a...
Any move that reduces ...
... dependence on one company must be good for diversity and longevity of the industry. There will be some short term pain however, but the companies that look forward and invest appropriately should benefit in the long term. This 'timetable' to change sh...
I like the solution...
I certainly see the importance of Swatch not suddenly cutting off other watch companies from their movement supply, though I can't imagine how the executives of the other companies didn't see that such a move would be possible and made arrangements. With ...
Costs and reliability… and the ETA acclimatisation
are big issues. While almost any watch lover would appreciate increased choice from more in-house movements or a greater availability of standard movements, few are willing to pay the price for this. ETA has a great reputation for providing the industry w...
Eta really has that much advantage?
Magnus, You certainly know much more about the topic than I do, so I believe you when you say that Eta can produce quality at a price others can't match. Nonetheless, I find it remarkable that a company such as Sellita wouldn't be more competitive. Also, ...
