WATCH ANALYTICS WEDNESDAYS: How the MoonSwatch impacted Swatch
Zach BlassEditor’s Note: We have partnered with @watchanalytics to crunch the numbers and dig into the horological market trends and value fluctuations for the references that matter. Last time, we delved into the market status of the Girard-Perregaux Laureato Skeleton that is rocketing in value. Today we are going to dive into how the MoonSwatch collaboration with Omega has impacted Swatch.
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March 26th, 2022 was a landmark day for watchmaking. No, it was not the day a new escapement was born or a new material realised. It was the day a monumental collaboration, unlike anything we have seen before, debuted for sale. And it was not just the product itself that was monumental. Sure, seeing two brands at opposite ends of the price spectrum within the same conglomerate come together for a team effort was a novel moment. But, the yield of the collaboration, and the attention and traffic it commanded, clearly displayed the potential for bringing more and more people into watch buying.
Around the world, unprecedented queues formed to try and buy a Omega x Swatch MoonSwatch. Lines normally associated with Supreme drops formed outside Swatch boutiques hours and hours before the stores even opened – people camping outside as if they were waiting to purchase a Playstation 5 on launch day. The collaboration was far more than just a watch release, it was a cultural moment where two worlds were intertwined. People of all ages, genders, levels of watch enthusiasm, and, for better or worse, motivation to purchase, rushed to stores across the world. Never before had we seen such a physical response to a debut in the world of watchmaking so, understandably, the MoonSwatch drop has had quite an impact.
The market analysis
As I said before, in regard to the MoonSwatch collaboration, it was not just the watch community that took notice. The whole world tuned in and, with such attention, the digital and physical response to the team-up resulted in a fiscal response as well. According to @watchanalytics, just three days after the MoonSwatch drop the Swatch Group AG share price rose from CHF 236.80 to CHF 273. But, since the 29th share prices have begun to dip back down. So, is this a moment of fleeting success for the brand and group? Or will Swatch be poised to regain the momentum again?
The takeaways
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As @watchanalytics comments in their post, this cultural touchpoint was sorely needed for the Swatch brand. They explain: “Among the 19 brands owned, Omega, Longines and Tissot represent 65% of the group’s sales while the remaining brands cover only a minority part. In particular, Swatch went from being the 18th brand in terms of sales in 2017 to 27th place in 2021, covering now only 0.6% of the market.”
This is due to the fact the price segment Swatch sits in directly competes with the price points of smartwatches, which, like it or not, represent the highest volume of sales in terms of watches. At the end of the day, Apple sells more watches than anyone else in the world. So, with a device that offers seemingly limitless functionalities and endless aesthetic customisation it becomes harder and harder for Swatch products to resonate with those who are not emotionally driven by more traditional watchmaking.
The MoonSwatch collaboration, however, opened a door that most had never been able to walk through. Sure, some may dismiss the MoonSwatch as a consented plastic knockoff or homage. For others, this was a moment to own a faithful yet fun interpretation of one of Swiss watchmaking’s most beloved icons. A moment to connect, at a far lower price, with the Omega name and the story of space exploration the Speedmaster is tied to. Swatch also clearly brought something to the table as well, with their proprietary BioCeramic material and an abundance of colour that Swatch, whose mission is to spark joy, fun, and passion for watchmaking. It speaks to those who love Swatch, who love Omega, and especially to those who have been sidelined from luxury by fiscal constraints. So, my own personal takeaway: Swatch, you better be working on the next collaboration because the people are hungry for it.