One of the most controversial issues that will arise in the watch industry in the next 5 to 10 years will be the definition and meaning of "Swiss Made". I think it will become controversial because of the expanding use of outsourced services. In particular the potential outsourcing of manufacturing and assembling of movements from China in the near future.In my online research I discovered that the Federation of the Swiss Watch Industry has published their definition. To read it, click on the photo on the left. Interestingly, the Swiss legislation has a statute that specifically regulating the use of "Swiss" in watches.
A watch is considered to be Swiss if:
- its movement is Swiss;
- its movement is cased up in Switzerland; and
- the manufacturer carries out the final inspection in Switzerland.
A movement is considered to be Swiss if:
- it has been assembled in Switzerland;
- it has been inspected by the manufacturer in Switzerland; and
- the components of Swiss manufacture account for at least 50 percent of the total value, without taking into account the cost of assembly.
Also for the case of a watch, it is considered to be Swiss if:
- it has undergone an essential manufacturing operation in Switzerland (stamping, turning, or polishing);
- it has been assembled and inspected in Switzerland; and
- over 50 percent of the manufacturing costs (excluding the value of the material) are due to operations carried out in Switzerland.
What is interesting and an eye opener is how the requirement for the watch movement and case needs only to reach 50% of total value and the watch is still deemed Swiss.
Theoretically, you can still have a "Swiss" made watch even though almost half of it may not be from Switzerland!
That was good, thanks Harry.
ReplyDeleteyou don't mean Omega, Zeno, Frank Muller... by any chance? ;-)
ReplyDeleteNot at all. I do not know how you came to these three brands. Personally I have no knowledge whatsoever about the possibility of swiss brands using non swiss parts and funds.
ReplyDeleteMy comment must be taken as it appears and not read between the lines. The definition does leave the possibility of Swiss Watches having nearly 50% non-swiss.
HarryTan
Hi Harry
ReplyDeleteWas reading your blog about "Swiss Made"... a thought flashed by.
Its the word Silicium & massive battery recall.
I think it is very similar to wafer-fab processes and it may not need the latest DRIE machine (as in the research labs) to fabricate those wheels & springs (key organs of a watch).
Who is the biggest wafer-fab in the world? What are their strengths? Mass-production, and reduce the unit price ( as compare to lab prototyping pieces).
Is the barrier to produce silicium parts as high as many think? If the motivation or incentives are high....
So far we have not heard anything about the material ability to withstand shock & fatique, only knows that it is very hard and amagnetic.
Think it quite fortunate till now with current alloy, there are no single component (in a mechanical watch) which could cause field recall (of product like the batteries in the notebooks) hurting the reputation of several companies.
Hopefully with the progress of more new technological material into the watches applictions, the industry considers the tightening of the 'Swiss Made' criterias to prevent any unforseen incidents which is detrimental to the industry.
By then, will the Swiss control the horological world?
Kong