Tiffany & Swatch
Tiffany & Co and The Swatch Group have announced they have agreed to team up together to develop, produce and distribute watches by Swatch under the Tiffany brand. A sort of Tiffany & Swatch.
A new watch making company, based in Switzerland, will be established and will have the Tiffany trademark. Directors will include tiffany as well as Swatch and others representing the best of market and product design committees.
With this alliance Tiffany will discontinue some existing watch collections, probably making the existing collections even more collectors items.
No announcement of any financial transactions, as a result of this alliance, has been announced, instead the companies refer their agreement to be one of ’shared resources.”
â??This alliance will place Tiffany & Co. within the distinguished collection of luxury watch brands manufactured and distributed by the Swatch Group,” said Tiffany & Co. chairman and chief executive, Michael Kowalski.
Kowalski said the two companies had been in discussions regarding the collaboration for over a year, adding that “the Swatch Group is the best conceivable strategic partner for Tiffanyâ??s long-planned re-entry into watch distribution.”
“[Swatch] is the leader in the high-end watch business with unparalleled distribution capabilities and experience in the luxury segment of the watch business,â? he said.
This will mean a new line of Tiffany & Co watches produced in Switzerland.
Rapaport, the premier Diamond company has quoted, “The new company will create a complete line of Tiffany & Co. watches in Switzerland, creating both new Tiffany-designed watches, as well as incorporating existing Tiffany designs. Distribution channels will be inclusive of Tiffany & Co. stores as well as Swatch Group affiliates, retail facilities, and third party distributors. The Swatch Group will also have the right to operate Tiffany & Co. branded watch stores outside the United States which will include a targeted inventory of other Tiffany jewelry.”
“The two companies will collaborate on design, engineering, manufacturing, marketing, distribution and service,” said Swatch Group CEO and president Nick Hayek Jr. “In consequence, we fully expect to see Tiffany & Co. strengthen its position among the best known and most respected watch brands worldwide.â?
A 20-year partnership between the companies has been set , with the possibility of a further 10-year extension.
The new year is going to be an interesting one for Tiffany & Swatch.