Comments:
AP & Swatch, taking the watch out of the discussion...
One of the things I like to do when I can't figure things out is throw out everything and start over.
What do we know?
We have some "givens":
- APs new CEO is not a watch industry insider
- Swatch is a conglomerate that knows how to make money
I'll tack on some US perspective based on non-watch "environmentals".
- I live in the DC metro area
- Mass layoffs, DOGE + tech downsizing (and no, not all AI related)
- lots of "early retirements" (including yours truly)
- trend towards increasing college debt, even for people with "good" college majors
The typical young engineer I encountered at work, if they had something on their wrist it was an Apple Watch or Android equivalent, or a Garmin at best. The vast majority were more worried about college loans or figuring out how to add a gym membership to their monthly budget.
If they had disposable income, the younger generation is thinking more in terms of "experience" vs. "goods".
Watches, as a whole, simply do not have mindshare. Swatch, and AP by extension, aren't doing this for "us", and we don't even factor into the equation. Either we've bought already, or already can't afford to buy. This is a long term play to capture that mindshare to prevent the next crisis of the 2030s/2040s when the current generation(s) are no longer purchasing.
Heavily US centric, I know, but after having some discussions with younger and impacted engineers lately, some of their random thoughts and concerns about life issues are echoing in my mind.
I will counter your premise
I wore my RO to a cafe I frequent, a 21year old barista was completely aware of my watch and was looking at me with amazed envy. Mindshare is not something AP lacks, many big names known to young people wear ROs.
The USA is kicking the butt of the other G7 nations economies. Some DC job losses are a minuscule blip in the potential buyer pool.
AP is as big a money making machine as Swatch already. A look at the industry data in revenue from sales and price per unit shows AP is an extremely profitable company.
So, why AP is doing anything with Swatch remains a mystery to me but, yes, the concept of growing brand presence by allowing some a taste of AP ownership isn’t ridiculous.
I run a portfolio of consumer brands
We do low 9 figures in revenue for color...
I would think of something like this as a cheap top-of-funnel marketing tool.
I basically get to make money while driving awareness for the brand without impairing the value of my brand (hopefully!)
My first reaction is I am glad some of these kids are actually accepting their responsibility to pay back college loans
I graduated with 5 different loans over 4 years and paid back every dime with interest. Took me 7 years. When the "pause" on loan payments was removed a while back, these kids were on TV saying "are you kidding? I have to pay back my loans? How am I going to do that?"
Only in America.
As for this partnership, I am sure it will be massive for AP. It has nothing to do with "watches", AP's history, etc. And it really has nothing to do with us on this forum either. But many of the conversations have been amusing to follow.
Thanks for the post.
The kids should not compare themselves to the too big to fail companies that needed bailouts.
And the PPP / SBA loan taking companies.
It’s OK for the youth to fail but the stock market needs to grow at any cost.
It’s OK for the youth to fail but the stock market needs to grow at any cost.
Agreed. They should focus instead on their obligations. If they sign their name to a loan for college, they have to pay it back.
The environments I worked in, the "kids" were VERY conscious about paying back loans...
Explain Labubu.... AP / Swatch making to a neck, or purse, hangable is brilliant! On a personal note the bedside / desk clock 'option' greatly warms my heart.
Not sure about pocketwatch, tho nice option. Of course OPTIONS AND ACCESSORIES is something MANY brands could offer, but SORELY LACK.
Note: I have five very thick multi-page books filled with "extra' straps, bracelets, clasps, pinbuckles..... the kids today love accessorizing.
jmho
PS: We need more mechanical WALL CLOCK options.