The challenge posed by the smart watch makers and companies like Apple Inc is finally accepted by the Swiss watchmakers after ignoring it for years. It is a marketing tactic where they have ignored to embrace the wearable revolution.
Deloitte reported that 44% of the Swiss watch company executives have understood that the nest big thing would be smartwatches.
To compete with Apple’s smart watch the Swiss smartwatch project and TAG Heuer are collaborating with Google Inc and Intel.
Apple is setting its legs in more expensive ranges like the gold watches where they are priced at more than $1000 and this is potentially not a risk to small watchmakers.
According to Deloitte, Swiss watch makers have explained that watch of 2015 is a steel chronograph which is prized at 5,000 francs. If the customer behavior is seen in the past few years it came out that they prefer steel over the gold.
The main problem is not that they are facing any loss in the low cost category watches. Swiss is using the quartz time watches to attract the first time buyers, like the student or the young professional who will go with this, but the real problem is when their income increases the probability of them going for a costlier watch increases.