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Swatch (stylized as swatch) is a Swiss watchmaker founded in 1983 by Nicolas Hayek and a flagship subsidiary of The Swatch Group. The Swatch product line was developed as a response to the "quartz crisis" of the 1970s and 1980s, in which Asian-made digital watches were competing against traditional European-made mechanical watches.

The name Swatch is a contraction of "second watch", as the watches were intended as casual, disposable accessories.

History

Swatch began development in the early 1980s, under the leadership of the then ETA SA"s CEO, Ernst Thomke with a small team of watch engineers led by Elmar Mock and Jacques Müller.

Conceived as a standard timekeeper in plastic, Franz Sprecher, a marketing consultant hired by Thomke to give the project an outsider"s consideration, sought to create a fashionable line of watches.

Swatch was originally intended to re-capture entry level market share lost by Swiss manufacturers during the quartz crisis and the subsequent growth of Japanese companies such as Seiko and Citizen in the 1960s and 1970s, and to re-popularize analog watches at a time when digital watches had achieved wide popularity.

In 1983, the group hired Jacques Irniger—who formerly served as the marketing executive for Colgate, Nestlé—to launch the swatch.

In 1997, the Swatch group opened about 60 stores worldwide.

The first collection of twelve Swatch models was introduced on 1 March 1983 in Zürich, Switzerland. Initially the price ranged from CHF 39.90 to CHF 49.90 but was standardized to CHF 50.00 in autumn of the same year. Sales targets were set to one million timepieces for 1983 and 2.5 million the year after. With an aggressive marketing campaign and relatively low price for a Swiss-made watch, it gained instant popularity in its home market. Compared to conventional watches, a Swatch was 80% cheaper to produce by fully automating assembly and reducing the number of parts from the usual 91 or more to 51 components, with no loss of accuracy.

Lebanese entrepreneur, Nicolas G. Hayek together with a group of Swiss investors took over a majority shareholding of Swatch during 1985 in the newly consolidated group under the name Societe Suisse de Microelectronique et d"Horlogerie, or SMH. He became Chairman of the board of directors, and CEO in 1986. Later he changed company’s name to Swatch Group.

This combination of marketing and manufacturing expertise restored Switzerland as a major player in the world wristwatch market. Synthetic materials were used for the watchcases as well as a new ultra-sonic welding process and assembly technology.