SWATCH GROUP

Analysis of Swatch Group share price

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To help you invest in the Swatch Group share price, we have devoted this article entirely to this stock in order to help you carry out the various analyses of this stock on the market. You will find in particular precise data concerning this company, its activities and sources of profit, a presentation of its principal competitors on the market or its recent partners, its strengths and weaknesses as well as the elements of the current events and the publications to be taken into account at the time of your fundamental analyses.

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will have to carefully monitor the group's operations aimed at positioning itself more in emerging markets, particularly in Asia with India and China being prime targets for its expansion and distribution strategy.

Analysis N°2

As a relatively young brand, the Swatch Group could also try to further diversify its product portfolio, so the strategy for doing so should also be monitored.

Analysis N°3

It is also possible that the Swatch Group will implement various strategic operations with the aim of increasing its revenues from online trade, particularly in the luxury watch sector.

Analysis N°4

It will also be necessary to consult manufacturing costs and their impact on the production of the group's watches, which lead to an increase in final sales prices and may cause the group to lose market share.

Analysis N°5

It is important to keep an eye on Swatch's competition with the publications, results and news of the main players in this sector.

Analysis N°6

Finally, you should also take into account the financial results of this company, which are published every year and every quarter.

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General presentation of Swatch Group

Let's move on to the information you need to know about the Swatch Group company. We are going to help you to better approach this stock on the stock market and to analyze it at best thanks to a good knowledge of its activities and its main sources of income.

The Swatch Group is a Swiss company specializing in the watch and clock industry. More specifically, the group is currently the world leader in the manufacture of Swiss watches.

To better understand the Swatch Group's activities, it is possible to divide them into different divisions according to the share of sales they generate, as follows:

  • Watches and jewelry represent the major part of Swatch's activities and generate more than 96.6% of the company's turnover, with high-end watches from the Breguet, Omega, Longines, Jaquet Droz and other brands, mid-range watches from the Hamilton, Certina, Mido and Tissot brands, and consumer watches from the Swatch, Flik Flak and Endura brands.
  • Next come electronic systems, which account for almost 3.3% of the company's turnover, with oscillators, microelectronic components, display systems for the textile and industrial sectors and watchmaking products such as watch mechanisms, cases and hands.
  • Finally, the remaining 0.1% of turnover comes from ancillary activities.

It is also important to know the geographical distribution of the Swatch Group's revenues. The group generates 9.1% of its turnover in Switzerland, 19% in Europe, 61.5% in Asia, 8.6% in the Americas, 1.1% in Oceania and 0.7% in Africa.

Analysis of Swatch Group share price
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The major competitors of Swatch Group

Let us now turn to the sectoral environment of the Swatch group and more precisely to its competition. Indeed, this company has to face different adversaries in its sector of activity, some of which may take market share in the more or less long term.

Casio

First of all and on the entry-level segment, the Casio Computer Company, which is a Japanese multinational created in 1946, is a direct competitor of the Swatch group. It is notably known for its calculators, watches, PDAs and digital cameras.

Nixon

The American company Nixon is also a competitor of the Swatch Group in the very specific segment of surf watches. It also offers fashion accessories and equipment for surfing, snowboarding and skateboarding.

Timex

The Timex Group is an American company specializing in the manufacture of watches and was founded in 1854 as the Waterbury Clock Company. It was reformed in 1944 as Timex Corporation and then acquired in 2008 by the Timex Group BV. Timex is also a world famous watch brand.

TAHG Heuer

In the luxury brand segment, there is the Swiss manufacturer TAG Heuer, which specializes in sports watches, luxury watches and precision chronographs. This company has been part of the LVMH group since 1999 and is therefore no longer affiliated with the TAG group although its name remains in the brand.

Rolex

Finally and still in the high-end segment, we find the Rolex brand which is a Swiss company specializing in the manufacture, distribution and sale of luxury watches. It is also the leading luxury watch brand in the world. It is currently owned by the Wilsdorf Foundation which is a private family trust company.


The major partners of Swatch Group

As indicated in the introduction, we are now going to tell you about the strategic allies of the Swatch Group. The latter regularly sets up partnerships with other companies in order to boost its growth, as in the following examples.

Tmall

In 2020, Swatch partnered with the Tmall Group to offer Swatch Tmall Super Brand Day, an event that links online and offline activities for Chinese fans. A unique exhibition was held at the Swatch Art Peace Hotel in Shanghai to welcome customers and introduce them to the exciting world of Swatch. Tmall is the shopping mall of Chinese e-commerce giant Alibaba, which is also the country's largest third-party platform for retailers and brands. Tmall has more than 100 million users and functions as a virtual shopping mall with a customizable and unique experience.

Tiffany & Co

Recently, the Swatch Group also entered into a strategic alliance with Tiffany & Co to optimize the development, production and worldwide sale of Tiffany watches. This alliance placed Tiffany & Co in the select circle of luxury watch brands produced and distributed by the Swatch Group. The two companies had already been considering collaboration for some time and Swatch was recognized by Tiffany & Co as the best strategic partner to organize the brand's return to the watch market, thanks to its leading position and distribution capabilities.

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The factors in favour of a rise in the Swatch Group share price:

In order to know how the Swatch group can evolve in the medium or long term in its market, it is also necessary to know its main strengths and weaknesses. We therefore suggest that you discover them without further ado.

As far as the strengths of the Swatch Group are concerned, the following elements stand out:

  • First of all, Swatch's brand identity gives it a strong reputation in the watch market, particularly among a young public.
  • We also appreciate the diversity of models and brands of watches offered by the group, which allows it to reach a wide target of customers.
  • The size of the group is also one of its main strengths. The Swatch Group currently employs more than 30,000 people in some fifty countries around the world. Swatch also operates 900 boutiques around the world.
  • Swatch's marketing strategy is also one of its strengths, as it has managed to become popular around the world through its association with sporting events and competitions and through excellent advertising. The group has also often associated with celebrities as brand ambassadors and has sponsored world events on several occasions such as the Olympic Games.
The factors in favour of a drop in the Swatch Group share price:

Let's now look at the different weak points of this company:

  • First of all, the Swatch group is a victim of the sale of numerous counterfeit watches, which is having a negative impact on its profitability and image.
  • The very strong competition in this market is also a real brake on its development and its market share gains.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the most important shareholders of the Swatch Group today?

At present, the Swatch Group has a significant portion of its capital owned by large private shareholders, including Hayek Pool with 40.5%, Gardner Russo & Gardner with 3.76%, Marathon Asset Management with 3.53%, Fidelity Research & Management with 3.28%, Norges bank Investment Management with 3.11%, UBS Asset Management Switzerland with 2.79%, The Vanguard Group with 2.76%, Invesco Advisers with 2.64%, Dimensional Fund Advisor with 2.40%, Flossbach Von Storch with 2.32% and FIL Investment Advisors with 2.09%.

When and how was the Swatch Group founded?

The Swatch Group was created in 1983 following the merger of two major groups in the Swiss watchmaking sector, namely ASUAG, which was founded in 1931 and owns the Longines brand, and SSIH, which was founded in 1930 and owns the Omega, Tissot and Lemania Watch brands. Its first name was then Société de microélectronique et d'horlogerie or SMH. The company took its current name of The Swatch Group in 1998.

How to follow the Swatch Group share price?

To follow the Swatch Group share price and its evolution live and in real time, the best thing to do is to refer to a stock market chart provided by your broker or online broker. You can indeed, in addition to knowing the quotation of this value, display various indicators that will help you to perform technical analysis of its price.

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