Not only known for their banking discretions and chocolates, the Swiss companies have also been famous for their watches. For decades, they have managed to stay ahead by sheer strength of quality and superior work, staving off threats from far cheaper varieties flooding the market. And now Tag Heuer is ready to take the next step by introducing the smartwatch, by entering into a partnership with Google (GOOG, Financial) and Intel (INTC, Financial).
The latest news flash
Last Thursday, Tag Heuer announced its collaboration with Intel and Google to develop a luxury smartwatch which will run Google’s Android Wear OS. Swatch Group AG (XSWX:UHRN, Financial) has also jumped onto the bandwagon. Although the market for smartwatches is still nascent and growing, the Swiss maker can be relied upon to keep an eye on the trend, and to take sound business decisions. The other competitors in Android Wear watches include Lenovo (LNVHY, Financial), Asus, Sony (SNE, Financial) and Samsung (SSNLF, Financial) which have cheaper varieties than the upcoming Apple Watch that would have a price range from $349 up to $17,000. It will be interesting to watch the competition between Apple’s (AAPL, Financial) technology and the Swiss watchmaker, Tag Heuer.
Swiss watches have often become family heirlooms, passed from one generation to another, for their precision and craft. They are revered and worshipped, some becoming a collector’s item. However, it is a case to be studied how they have retained their exclusivity and patronage over the decades. Sixties brought quartz watches and seventies saw low-cost ones from Asia capture part of their market. But the Swiss makers quickly adapted to the changing times and kept improving their products, thus retaining their exclusivity and favour among many of its customers. A Swiss watch is not to be trifled with, they are a work of art, bringing a sense of superiority to the wearer – something no one else could successfully manufacture or tap into.
The next wrinkle in time is the age of smartwatches, and except for Rolex, most of the Swiss companies are keeping a close watch on it. A good collaboration which fuses the best of both the worlds seems to be irresistible and a sure-shot winning combination. For Google, to have a Swiss brand like Tag Heuer, improves their chances of beating Apple watch since people will automatically attribute superior quality to it. For Tag Heuer, Google was a safe choice since they have rarely gone wrong and have public respect, as Apple products have a history of delayed releases because of trying to achieve perfection. Hence, for both the companies, the collaboration can turn out to be extremely lucrative.
Parting word
The race will for sure heat up once Apple Watch is out. What needs to be seen is whether Apple can bring the finesse and mechanical excellence that a Swiss company can bring to the table. The leader may be one who has the right combinations of both good designs and technology. Smartwatches provide more than just time, they notify the user about his reminders, health, appointments other than allowing social network activities and web browsing. But will they also provide precision and handsome features, exclusive looks and a collector’s worth mechanisms? That will be the deciding factor in the race to be a market leader.
