Editor’s Note
This article examines Swatch Group’s aggressive expansion under CEO Nick Hayek, highlighted by its landmark $750 million acquisition of Harry Winston in early 2013. It explores the strategic ambitions behind the watchmaker’s “thunderous” growth.
The group led by Nick Hayek is posting thunderous results and multiplying acquisitions.
Early January 2013: Swatch Group announces a considerable turnover, and most importantly, one that is clearly on the rise. A few days later, the group led by Nick Hayek makes public the acquisition of Harry Winston Inc. These are thunderous announcements in the world of luxury, watchmaking, and finance.
Swatch Group, which is battling other luxury giants (the Richemont group and LVMH), is growing visibly, so it is no surprise that the final figure has been released: 8.143 billion Swiss francs in turnover, or 1 billion more than last year… The forecasted 8-billion mark has therefore been largely exceeded, and in just one decade, the group’s sales have doubled; the Watches and Jewelry division is in considerable competitive form.
The more time passes, the more Swatch Group brands perform. Whether it’s brands in the luxury segment (Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega), high-end (Longines, Rado, Union Glashütte), or mid-range (Tissot, ck watch & jewelry, Balmain, Certina, Mido, Hamilton). Knowing that Longines, Tissot, Breguet, and Omega have particularly stood out:
The Omega brand, a very good performance indicator for the group, alone would have approached 2.5 billion Swiss francs.
To achieve such turnover and progress, it must be said that Swatch Group invests enormously in terms of novelties and innovation. The group had never filed so many patents: there was one every two days for this year 2012!
After experiencing a +15.6% growth in gross turnover, the Watches and Jewelry branch of Swatch Group truly sets an example. And given that production capacities are still increasing, that the group is still gaining market share, that good growth is expected, notably due to the London Olympic Games which were an undeniable driver alongside the Omega brand, the results for 2013 are very promising; something the first days of the year corroborate.
Furthermore, the Group has just announced the acquisition of 100% of the shares of HW Holdings Inc., owner of Harry Winston Inc. Swatch Group SA thus acquires the brand and all activities related to jewelry and watchmaking, including the 535 employees worldwide and the production company based in Geneva. Acquisition amount: 750 million dollars; and new prospects, oh so interesting….
The Harry Winston brand, a century old, is a fine house of high jewelry and watchmaking, whose renown and boutiques spread worldwide.
The best welcome is therefore reserved for it by the Luxury giant:
And Nayla Hayek, Chairwoman of the Board of Directors of Swatch Group SA, adds:
New innovations, novelties, acquisition, and even a forthcoming surprise with the flagship brand Omega… One feels that the year 2013 is going to keep its promises…but how far will Swatch Group go?