In the crowded market for cheap fashion watches, Swatch has a big advantage: touting its watches as collectibles. Swatch introduces about 125 watches a year, and once they sell out, they’re never resurrected. Swatch timepieces are marketed as limited edition collectibles. The manufacturer promises that once the edition is sold, no more will be offered. The company has discovered that selling collectibles is much more profitable than selling inexpensive novelty timepieces.
Ever since Swatch watches first came on the scene in 1983, Nicholas Hayek, chairman of SMH Group, the company that makes them, has pushed the idea that his customers should own not one Swatch but many. As Swatch churned out more and more different models to catch different fashion trends, Swatch watches began to attract collectors. There are now close to 1, 000 different kinds of Swatches, and roughly 125 new ones are created every year. Old Swatch designs are never resurrected. SMH began making limited-edition Swatches for retail sale in 1985, and hiring well-known artists to design limited edition watches soon followed.
There are two primary reasons for the success of Swatch: one is the effective marketing strategy which the company uses by satisfying its target market well; the other is high quality and various design. Due to its high quality, Swatch watch is no longer just a simple everyday watch but one of the hot collectible items in the world. Additionally, they also have series of watches for every season, every special occasion and every event in the world (Thinking made easy, 2008). Not just selling a consumer product, they were selling an emotional product.
It is an important part of yourself image. A social statement Many of these customers were young people who had never before shown much interest in the watch category They see it as a collectable Consumers who bought one swatch from one collection often found themselves buying another swatch from a different collection several months later Swatch customers are always on the lookout for intriguing new designs As Swatch churned out more and more different models to catch different fashion trends, Swatch watches began to attract collectors