For a special edition, Swatch is teaming up with the luxury label Omega. How the “Moonswatch” marketing coup came about and why long-term success is by no means assured.
The manufacturer, who made the wristwatch popular with everyone, has recently scored with exclusivity. The reinterpretation of the legendary Omega model “Moon Watch” from Swatch wows the masses. The start of sales of a new issue again draws crowds to the shops.
But it all started very differently. With low prices and flashy designs, Swatch revolutionized the watch business 50 years ago. So how did the move away from mass-produced products towards status symbols come about?
Back to the Future
For a long time, Swiss watches were primarily associated with the luxury segment and names such as Rolex, IWC and Patek Philippe. Swatch, on the other hand, started out in 1983 with exactly the opposite goal: to be the timepiece of the masses. With eye-catching designs or the children’s line “Flik Flak” she conquered hearts all over the world. ll
The launch came at exactly the right time. Because the Swiss watch industry was in crisis in the 1980s.
Looking back, Benjamin Gilgen, head of the Leadership course at the Zurich School of Economics (HWZ), calls the Swatch launch in 1983 “a real disruption of the watch market in the form of a plastic watch for 50 francs Made in Switzerland.”
The keyword is scarcity
Despite the challenge posed by new smartwatches, it became clear during the corona pandemic at the latest: the classic wristwatch in the high-price segment is more popular than ever. Many see the mechanical masterpieces as a worthwhile investment. Manufacturers even have to introduce limits to prevent secondary trade.
It was precisely in this environment that the huge success of “Moonswatch” began a year ago. Marketing expert Gilgen calls the launch of the Omega copy a “breaking of a taboo” and another “act of disruption” from Swatch. “Until now, premium and luxury brands have tried to preserve their exclusivity for better or for worse, then Swatch comes along and makes the iconic design of the Omega Moonwatch a 250-franc watch available.”
Not only the design and the story are copied, but also the distribution has been adapted. The decision to only sell in selected shops and only limited quantities is “a classic act of scarcity”. The limited availability explains a real paradox: although the watch is probably affordable for many, queues form in front of the shops.
Swatch can’t rest on its laurels
However, Swatch still does its business with the masses. The costs are correspondingly high. “The advertising measures at the start of the Moonswatch were well orchestrated,” says Gilgen, who also advises brands in addition to his teaching activities. A “host of influencers” have contributed to the fact that the hype has not leveled off for a year now.
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«The success of the Moonswatch surprised even the makers. But now Swatch has to confirm that.” In the past few days there has already been negative feedback on the new “MoonshineTM” on social media. Expectations were high, but the innovations turned out to be too small for many.
“The younger target group in particular spends hours on TikTok or Instagram these days”. Winners would form quickly on the platforms, but they can crash again just as quickly. “So the big question with the Moonswatch is: What’s next?”