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Newsletter came in with link to Stowa‘s latest announcement:

Dear STOWA customer,

Unfortunately we have to increase our prices for almost all models, effective Monday, February 3, 2020.

The tense movement situation, which was mainly caused by a fatal decision of the Swiss Competition Commission, harms all watch manufacturers, because in 2020 and probably also 2021 ETA will not be allowed to supply movements to other companies.

Since this has already caused the acquisition of movements to deteriorate in recent months (the decision of Weko took many months) and other components have also increased in price, we are now forced to raise our prices slightly.

Here you can go directly to the website of ETA/Swatch Group with an explanation of the situation: https://www.swatchgroup.com/en/serv...nts-comcos-dictate-harms-swiss-watch-industry

We will increase prices between 3 - 8%.

Despite this increase, we still have one of the best price-performance ratios in the entire watch market.

Through our direct distribution we avoid the middlemen and can therefore offer you unbeatable quality at still very fair prices! ;-)



Your STOWA Team from the Black Forest.
 

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I completely understand the reasons behind the price hike. What is still unclear to me is what direction Stowa will be taking to source movements from here on forward. Take for example the Peseux/ETA 7001, are there any quality alternatives available now?
 

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I completely understand the reasons behind the price hike. What is still unclear to me is what direction Stowa will be taking to source movements from here on forward. Take for example the Peseux/ETA 7001, are there any quality alternatives available now?
I suspect that most brands will move to Sellita who will be the de facto monopoly for brands that don't manufacture their own movements.


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I suspect that most brands will move to Sellita who will be the de facto monopoly for brands that don't manufacture their own movements.


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Unlikely. Currently Sellita wouldn‘t be able to boost production ro a level which could answer the increasing demand. The Sellita movements you order tomorrow will be delivered in 2021 if you are lucky.
 

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Unlikely. Currently Sellita wouldn‘t be able to boost production ro a level which could answer the increasing demand. The Sellita movements you order tomorrow will be delivered in 2021 if you are lucky.
Oh really? So if that's the case who in the world can supply that many movements? China? I assumed Sellita was producing far more than that.


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Unlikely. Currently Sellita wouldn‘t be able to boost production ro a level which could answer the increasing demand. The Sellita movements you order tomorrow will be delivered in 2021 if you are lucky.
So what would the other options be for companies like Stowa, etc?

Just curious as to who/what will fill this void.

Thank you.
 

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Well, the disaster was foreseeable. According to Hayek ETA could neither accept nor confirm orders already in 2019. This will continue until mid-2020. Since ETA will need nine up to twelve months in advance, which means that ETA will not be able to deliver movements to third parties until autumn of 2021 at the earliest.
Prudent manufacturers might have already contacted Sellita, Soprod, STP or Ronda last year or the year before. However, it seems questionable whether there is a real supply shortage. There is also a gray market and clever brands have built up inventory. Rumors say that wholesalers have built up their inventories as well. So you know somebody who knows somebody. Nevertheless, one is for sure, prices will go up.

According to the Neue Züricher Zeitung ETA supplied 2 million movements to third parties in 2013, compared to 500.000 in 2019.
Sellita already supplies around 1.200.000 mechanical movements. This corresponds to a market share of at least 60%. Questionable if they can increase production without a huge investment.
 

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I suspect that most brands will move to Sellita who will be the de facto monopoly for brands that don't manufacture their own movements.
That presupposes Sellita can increase capacity to cover them. Perhaps so, but not at the drop of a hat. And this means supplies for Sellitas will simply be that much tighter...so prices will rise.

I can see where the Competition Commission doesn't trust Swatch, but Swatch was right here; even if you assert the action taken was reasonable, the timing was RIDICULOUS. And everyone's gonna pay. It also informs the other side of their idiocy...that all they may accomplish is to make Sellita the next monopoly.
 

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That presupposes Sellita can increase capacity to cover them. Perhaps so, but not at the drop of a hat. And this means supplies for Sellitas will simply be that much tighter...so prices will rise.
I doubt they can increase capacity at the drop of a hat. The cost and time to do so would make it extremely difficult. Even if they could I worry about QC.
We’ll have to see how this affects prices. I’m sure most of us here have plenty enough watches to survive this crisis.


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I doubt they can increase capacity at the drop of a hat. The cost and time to do so would make it extremely difficult. Even if they could I worry about QC.
We’ll have to see how this affects prices. I’m sure most of us here have plenty enough watches to survive this crisis.


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Yeah most likely. It'll be interesting to watch....no pun intended.


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This price hike is palatable in my opinion. It’ll just add a sense of urgency to purchase a Stowa before any further increases occur as ETA movements dry up.
 

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Guess im pulling the trigger on that 2nd Stowa watch before the price hike.

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I know it won't get to say "Swiss Made" on the dials, but this is an opportunity for Asian manufacturers with established QC practices for movements (long winded way to say Seiko and Citizen) and ability to invest to step in. There are some German brands (Laco) who use Miyota movements...
Citizen isn't manufacturing a refined automatic movement, but certainly could. They have a history of high quality hand wound movements and also automatic chronographs - so they're clearly capable. Obviously, Seiko could step up to fill a void as well.
Hopefully in the long run, consumers will benefit somehow, even though right now it sure seems like the opposite!
 

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Stowa doesn’t say “Swiss made” anywhere. It mostly doesn’t say anything on the dial, but when it does, it certainly isn’t Swiss.

Next, Laco uses Miyota only on their low end models.

Third, I have nothing against Seiko, but they are far worse than ETA. Accuracy typically in the +/- 35 seconds, their low end movements are far from great, whereas ETA movements are typically in the +/-10 seconds per day, and can be cosc calibrated. That isn’t to say Seiko isn’t capable - it certainly is, their Spring Drive movements are world class, but their lower end movements are not that great.
 

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I usually don't feel bad for Swatch as they're the big kid on the block, but this can't be what they had in mind as they invested in & developed ETA's capabilities.
 

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I was wondering when this whole ETA issue would blow up. While I can see some obvious replacements for the eta 2824, the Peseux 7001 is more difficult to find an equally sized and thin replacement for.

In other words, what will happen to the antea ks series? To prevent that whole issue I pulled the trigger on the antea ks rose. Ive been eying it for over a year now and combined with a 100 euro voucher I still had, this puts the price just under 1000. Pictures etc will happen when I get my hands on it.

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I was wondering when this whole ETA issue would blow up. While I can see some obvious replacements for the eta 2824, the Peseux 7001 is more difficult to find an equally sized and thin replacement for.

In other words, what will happen to the antea ks series? To prevent that whole issue I pulled the trigger on the antea ks rose. Ive been eying it for over a year now and combined with a 100 euro voucher I still had, this puts the price just under 1000. Pictures etc will happen when I get my hands on it.

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I recently mentioned my desire for an Antea KS to my wife and last night we had this short conversation:

Me: I just learned that Stowa will be raising the prices for all of their watches on Monday.
Wife: You just got a watch for Christmas.
Me:.....................dammit.:-(o|
 
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I recently mentioned my desire for an Antea KS to my wife and last night we had this short conversation:

Me: I just learned that Stowa will be raising the prices for all of their watches on Monday.
Wife: You just got a watch for Christmas.
Me:.....................dammit.:-(o|
I'm also in the same corner. I'm considering a Stowa but I just purchased my Nomos in December. lol, o|
 
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