SWATCH

Another danger to the conventional watch industry occurred when cellphones became more of a necessity for consumers than a luxury item. This isn't the first time a disruptive element has led people to reconsider their connection with the age-old manner of keeping time, and it won't be the last. In reality, the challenge posed by technology is beneficial to watchmakers. Whereas an iPhone XI or Galaxy S10 speaks to our desire to have the most up-to-date technology from Apple and Samsung, watches (whether analog or digital) allow individuals to express their individuality.

Swatch — the company that started the technicolor wristwatch revolution in the early 1980s and continues to be a diversified design brand — deserves and probably always will be credited with that notion.

A watch was solely a mechanical instrument long before Swatch entered the pop culture vernacular. For the layperson, this meant that the user had to either manually wind the crown or use a self-winding automatic that was driven by the wearer's movement in order for it to operate effectively.

On Christmas Day, 1969, in Tokyo, this long-standing practice was called into question. Seiko, which had been founded 88 years before by upstart 22-year-old entrepreneur Kintaro Hattori, released the Astron model, the world's first quartz wristwatch powered by a small battery rather than the aforementioned techniques. It could operate for a year without stopping (250 times longer than the typical mechanical watch) and was 100 times more accurate than other timepieces at the time. When the original Astron's cover was removed, the region allotted for the battery resembled a crop circle made by extraterrestrials.

The quartz revolution did not happen in a vacuum. It was a symphony orchestra, rather. Eventually, all Japanese businesses would follow suit.

Seiko, a Japanese watchmaker, was the top in terms of revenue by 1977. Switzerland, which had long been regarded as the industry's leader, was experiencing an identity crisis. The market has obviously changed away from historical appreciation and toward convenience. As a result, between 1977 and 1983, the number of items created in Switzerland plummeted from 43 percent to fewer than 15 percent.

The two largest Swiss watch companies at the time, ASUAG (Allgemeine Schweizerische Uhrenindustrie AG) and SSIH (Société Suisse pour l'Industrie Horlogére SA), were left to assess the damage; more of the same might win a few battles but lose the war, while admitting defeat might cause the entire Swiss watch industry to collapse under the weight of a tiny watch battery. A merger between the two corporations in 1983 foreshadowed a battle.

Dr. Nicolas G. Hayek, a distinguished consultant who started his own business in Zurich in the 1960s and subsequently joined ASUAG-SSIH after the merger, seemed to see that dismissing Seiko's achievements would be a mistake. They just required a product that could meet the demands of the entry-level consumer while still being seen as a game-changer.

When Hayek moved from consultant to captain of the ship, the Swatch Watch (then known as the "Popularis") had already been on the market since 1981, but without the joie de vivre that would eventually define the product. When Ernst Thomke, the director general of the company's business that produced the Swatch in 300,000 units, presented Hayek with a fresh vision, the product would undergo a dramatic makeover.

The Swatch would be reasonably priced, at around 50 Swiss francs. Quartz would be used to power it. Finally, it would become a genuine fashion statement if it still used an analog display. This last goal would allow ASUAG-SSIH to stay true to the strong design principles that have come to characterize its historical pieces.

They thought that they could utilize the pattern from a previous model, the Delirium Vulgare — the world's thinnest watch with the movement mounted in the back — and manufacture the complete watch out of plastic to make the wristwatch less costly. The original version met Hayek's vision for the future by utilizing less costly material and lowering the number of pieces to 51 instead of 91.

However, there was a snag. "Delirium Vulgare" and "Popularis," for example, don't exactly scream "tough," "water-resistant," or "able to operate for three years on a single charge." They sought a new name that was a little more '80s sassy. They came up with the concept of the "second watch" after approaching a New York City advertising firm. While it was maybe a little demoralizing to think of oneself as a silver medallist, the newly coined "Swatch" had a nice ring to it.

On March 1, 1983, the world was presented to what had been dubbed "the impossible watch" in Switzerland, Germany, and the United Kingdom. One million "Gent" or "Lady" models were produced, with prices ranging from 39.90 to 49.90 Swiss francs. By the end of 1984, the plan was to ship 2.5 million Swatch watches.

The Swatch Watch had succeeded in going beyond the typical "jewelry" label. Both young and elderly might color coordinate their timepieces with their apparel as a "fashion statement," similar to how one would match one's belt to one's shoes. Because there were fewer mechanical elements within the watch, Swatch was able to respond swiftly to shifting sartorial trends. Swatch was essentially one of the earliest known examples of both "quick fashion" and cutting out the middlemen by shipping straight to the merchant.

The decision to pursue a career in fashion paid off. "[They] have become the trendiest new fashion item on the market," The Los Angeles Times said in 1985 about Swatch's impact outside of the field of horology.

Swatch's ties to the arts should not be disregarded. Since 1985, they've collaborated with artists such as Kiki Picasso, Alfred Hofkunst, Keith Haring, Vivienne Westwood, and Damien Hirst on the Swatch Art Special.

Working with masters in their professions allowed us to develop limited edition/small quantity runs for things, which was a big benefit. While this is now a regular strategy for big shoe makers like Nike and adidas, the idea of making smaller runs on purpose was rather innovative at the time. Swatch also launched immersive, pop-up type activations in grocery stores, similar to Alfred Hofkunst's 1991 food-themed collaboration "One More Time," which we now see as very regular for businesses trying to challenge standard retail tactics.

These partnerships, as one might guess, are among the most sought after and expensive for Swatch collectors. According to Frank Edwards' 1998 book, Swatch: A Guide for Connoisseurs and Collectors, Picasso's Swatch was reselling for between $25,000 and $40,000 at the time, and Haring's for between $60,000 and $80,000.

The company could have easily sat on its laurels and just continued to collaborate with more and more artists. Swatch, on the other hand, has always been devoted to pushing the frontiers of what is possible in the watch industry.

The first multifunctional Swatch Watch was the Swatch Chronograph. The 1/10 second timer (with stop and reset facility), subsidiary dials for recording hours, minutes, and seconds, and the capacity to measure intervals for up to 12 hours demonstrated that the technical team was just as adventurous as the design team when it debuted in 1990.

In Grenchen, Switzerland, on April 7, 1992, the 100 millionth Swatch was made. While the plastic watch had virtually single-handedly saved the Swiss industry, the company recognized it needed to broaden its reach — and compete with inexpensive companies like Fossil and Guess, who both succeeded in the use of metal casings and advertised their products with a heavy dependence on Americana. As a result, in 1993, Swatch launched the steel Irony line, which included the first metal casings. Swatch was maturing, and it was also recognizing the environmental implications of utilizing plastic.

Swatch's current environmental position contains teachings such as "conservation of the natural environment and its resources," "production of ecologically sound products by the most efficient means," "moderation in the use of raw materials, energy resources, and water," and the avoidance of unnecessary waste.

Swatch is one of the few brands that appeals to both young and old people. Perhaps that is the allure of a timepiece: deciphering the hours in a day doesn't have to be difficult. Those who gave or received a Swatch as a present have all grown older since the inception of the concept that helped save the Swiss watch industry. As a result, there is an unavoidable affection.

Nicolas G. Hayek's initial vision for the company, which included recognizing past success while also acknowledging that today's consumers need items with more story aspects, is still a basic component. They've continued to rely on the power of teamwork in this scenario. The appeal of a Swatch is that each collaboration feels genuine, whether it's with individuals like Jeremy Scott or entities/brands like Hodinkee.

"His turnaround strategy violated almost every piece of standard-issue advice peddled by highly paid consultants and Wall Street titans — not because he was reluctant to break from the past, but because his radical changes were built on a genuine appreciation for the past," the Harvard Business Review wrote after Hayek's death.

Swatch may have expanded in size beyond anyone's expectations. Despite this, it keeps the lovely simplicity that exists between the maker and the wearer. It's a monument to Hayek's 20/20 perspective on the past and future.

(Above picture of the late co-founder and CEO Nicolas Hayek)