Marketing report - Swatch watches in China

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Introduction:

  • History: The Swatch Group Ltd. is the number one manufacturer of finished watches in the world.The Group is active in the manufacture of finished watches, jewelry, and watch movements and components. The Swatch Group takes its name from the extraordinarily successful story of Swatch, one of the world’s most widely recognized consumer brand names. Less than 30 years ago, the Swiss watchmaking industry was battling a serious crisis. The first Swatch watches were released in 1983. The years since then have seen the recovery of the Swiss watchmaking industry as a whole, and the establishment of The Swatch Group as a strong, diversified industrial holding. This solid foundation has allowed the Group to broaden its reach and extend its range of brands. (Swatch Group History, today, 2011)

  • Products: So far, there are 14 brands under the Swatch Group have entered the Chinese market. The headquarter is in Shanghai, also established the branch offices in Guangzhou, Shenyang and Beijing. Swatch designes the products which are occasion some Chinese festivals constantly so that Swatch can design the watches more and more suitable for the Chinese people.

  • Competitor: As the number one in the world, of course there have many competitors. G-Shock is one of the good examples. No matter pricing, positioning, market share or stylish, G-Shock is similar with the Swatch. However, these two are definitely not totally the same, Swatch is more fashionable, G-Shock is more durable. That is the reason why they are loved by their own loyal customers.  
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  • Market share: From the information, Swatch Group occupied 70% of Chinese market. In a general way, the market share of a single brand is hard to more than 30%, however, if each brand have different percent of market share, all the brands of Swatch can achieve 50%. With China been the current emerging markets now, many business has moved to China and expand their business there as consumption level will be high due to its large market size. Moreover, imported watches accounts for 45 percent of the watch sales (europastar, 2005) in China. Its huge potential market will increase ...

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