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Restriction of Supply of Spares

903 views 6 replies 7 participants last post by  RTM Boy 
#1 ·
The Swatch Group in 2015 decided to stop the supply of spare parts to non-accredited dealers / repairers, this meant that long-time suppliers like Otto Frei (85 years supplying Omega parts) in the USA and presumably Cousins in UK are pretty much out of stock.

I have used Otto Frei many times for bracelet links, end pieces, clasps and old Speedmaster bracelets great service and always helpful and much better than taking a watch to an Omega dealer and wait weeks to get a link ordered and fitted.

In 2017 the Swiss competitions authority (WEKO) threatened an investigation into restrictive practices by Swatch Group but it never happened or if it did nothing came of it.

Maybe one for the watch repairers how it is affecting them and which other brands restrict supply?
 
#2 · (Edited by Moderator)
Cousins have an on going courtcase with Swatch over this very thing. It seems to keep batting back and forth...first one party wins a point, then the other will claw one back. It's been going on for a fair while, now, and as a customer of Cousins, I get an email every now and then appraising me of the latest situation. Several months ago, Cousins were on the up, but the last report said there'd been a bit of a setback if I recall correctly.

Edit: In fact, if you go to Cousins site and tap the 'news' button on the header, you can see the latest developments in chronological order.
 
#3 ·
It a bit like certain car manufactures restricting parts to only their AD's which in my (cynical) view achieves the same thing - forcing the customer back into their service chain and having to suck up the increased price that comes with it. I'm sure swatch have their own angle on it mind you!
 
#4 · (Edited by Moderator)
Not cynical at all , I think you are spot on , I did my apprenticeship on Renault cars back in the 70's and they were awful to work on needing all manner of special tools just to carry out some of the simplest tasks , making it near impossible for anyone other than the main dealer to repair.
This was intentional as Renault had an obligation to their dealers as the dealers had an obligation to Renault (having to have X amount of cars a month regardless of whether they sold them)

I think the same is happening in the Swatch group , they have an obligation to their AD's and authorised repairers after the thousands they have spent on equipment tools etc.

The thing is as we all know that the special tools for Renault can now be bought anywhere as can the parts (in the 70s you couldn't go into Halfords etc and get Renault parts)

I think that the same will happen here , if Cousins don't win their case then it will open up the market for pattern parts , the Chinese are already making clones of ETA movements as we all know , and their movements are comparable to the ETA and I believe the parts are interchangeable , I have posted a youtube video comparing a real and a clone Eta 2824-2 on here before .

Thats my sort of take on it based on what I've seen happen in the motor trade

By the way i'm totally against what Swatch group are doing , but can see why they're doing it . Sort Of !!
 
#5 ·
On the other hand, a lot of companies are now producing their own movements as a consequence, which in turn raises prices and so it goes on. I thought sellita were the first off the block in copying ETA after the copyrights run out and now there is a new swiss generic movement that is creeping into cheaper models, so as one door closes.....

The problem for Cousins is that Swatch can drag this out until eternity.
 
#6 ·
On the other hand, a lot of companies are now producing their own movements as a consequence, which in turn raises prices and so it goes on.
Which is why I don't really like "in house" movements" in some applications. It's nothing to do with excellence.

I've been reading up on this,

https://masterhorologer.com/2018/05/07/depa-swiss-movements-presents-mechanical-watch-calibers-under-landeron-brand-name/

http://forums.timezone.com/index.php?t=tree&goto=6045519&rid=0

The problem for Cousins is that Swatch can drag this out until eternity.
He who has the biggest bank account wins. :yes:
 
#7 ·
Swatch wants to make as much CHF as possible. Perfectly valid. It is a company, not a charity. Swatch has to invest to innovate and to build brands and compete. This starts with its new watch pricing. You don't need to be an economist to see where the margins lie.

Take a non-specfic Omega. SRP is say £4,500 and let's assume it sells at SRP (it's an Omega and perhaps more sought after). The VAT is £750, which leaves £3,750 (excl VAT). Retailer margin varies, but lets say it's £1,750 (discounts come out of this). That takes the bought-in price down to say £2,000. By the time you strip out other business costs that are either specific to the watch or spread across all products like shipping, freight insurance, packaging, below-the-line promotion (eg sponsorship, ambassadors, launch events, solus boutiques, etc.), above-the-line promotion (eg magazine ads, etc.), currency fluctuation hedging, Swatch UK business costs, head office costs and so on and so forth...and the actual physical costs of parts and manufacture. Well you get the idea.

So, yes, Swatch wants to push as many people through their AD network for aftersales service and repair as possible to increase retailer and their own margins.

In the end it's like everything else; companies charge what people are prepared to pay. If a substantial proportion of Omega owners decided to not get their watches serviced because the cost was too high because they had to go via the AD/Omega and just shoved the watch in a draw, or sold it (eg second hand prices fall sharply), and the company saw a noticeable fall in the volume of service work, it might rethink its approach... On the other hand...
 
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