Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
Swatch Group Warns of ‘Massive’ Price Hikes
The company said it might have to up movement prices after its request to alter the 2013 agreement that regulates its deliveries of components to other watchmakers was rejected.
Biel/Bienne, Switzerland--Swatch Group issued a statement Thursday warning of “massive” price hikes to come in the wake of the Swiss Competition Commission’s rejection of its proposal for moving non-purchased movements.
Back in 2013, Swatch Group reached what it described as an “amicable settlement” with the Competition Commission (Comco) that allowed it to begin dialing back the volume of finished movements and movement parts that movement maker ETA supplies to third-party customers, companies like Tudor and Sellita. A complete stoppage in supply is set for the end of 2019.
Until then, Swatch Group is obligated to maintain movement production at a certain level despite the fact that many of its customers have drastically reduced the size of their orders, with some major customers not placing any orders for 2017.
Because of this, Swatch Group asked Comco to allow ETA to try to sell the non-purchased movements to all its third-party customers, not just those covered under the 2013 agreement.
Comco rejected this request.
In a statement issued Thursday, the commission said, “The difficult economic environment in which the watch industry is currently located is … not a sufficient reason to modify the scheme adopted in 2013.”
Swatch Group called the decision “utterly unrealistic.”
“The Swatch Group proposal never intended to deviate from the amicable settlement but rather to supplement it in order to take the abusive customer behavior into account,” the company said.
“With this decision, ETA and Swatch Group must once again assume their customers’ economic risk … ETA must maintain the determined capacities for the coming years in order to meet its supply obligation as defined by Comco.”
Swatch Group added that it will have to consider “massive price hikes” in order to cover the additional costs associated with producing these movements that it’s not able to sell.
Jon Cox, a Switzerland-based Kepler Cheuvreux analyst who covers Swatch, said the threat “isn’t really serious” because Comco can reject any price increases it views as unreasonable.
But he added, “Of course this could be another reason it [Comco] rejected Swatch Group. It may have indicated that, given Swatch Group’s situation, it won’t stand in the way of price hikes.”
It’s an ironic turn in a case that dates back to 2011, when Swatch Group first approached Comco about a reduction in supply.
At that time, many companies bemoaned Swatch’s request, which was called a “bombshell” that would surely force smaller watchmakers that were unable to find alternative movement sources out of business.
Now,
Swatch Group said Friday that it has no further comment on Comco’s ruling.
The Latest
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
May’s birthstone is beloved for its rich green hue and its versatility.
Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
Tim Schlick has been promoted from his previous position as COO.
It’s the second year for the event, slated to take place in October in Toronto.
Supplier Spotlight Sponsored by GIA
Sales will be paused while the relocation takes place over the next few months.
“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
The retailer is moving to a newly designed space in the same shopping center.
Gifts that are unique and thoughtful are top of mind this year, according to the annual survey.
The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
The two organizations will host a joint event, “Converge,” in September 2025.