Why are luxury watch manufacturers concentrated in Switzerland? Historical background
Posted by WATANABETAIGA

When you hear the words "luxury watches," what country comes to mind?
Most people would probably answer "Switzerland."
Most of the world's most famous watch brands today, such as Patek Philippe, Rolex, and Omega, are based in Switzerland.
However, if we look back at the long history of watches, we can see that Switzerland was not the absolute king of the watch industry from the beginning.
In the past, Britain, France, and the United States were all "watchmaking powerhouses" that rivaled or even surpassed Switzerland.
So why has Switzerland remained the only country to survive as the mecca of the watch industry for so long? The answer lies not just in technological superiority, but also in the major trends of world history, such as religion, war, and the Industrial Revolution.
This time, I would like to trace the changes in the watch industry from a global historical perspective.
1. History of the Swiss watch industry
There are three main turning points that led to Switzerland becoming a watchmaking powerhouse: the influx of technology due to religious persecution, its status as a permanently neutral country, and its recovery from the quartz crisis.

Influx of technology and religious background
The area around Geneva in Switzerland was originally a region with a thriving jewelry manufacturing industry, but it was during the 16th and 17th centuries that watchmaking technology made a dramatic advance.
The trigger was the Protestant Reformation in France, where conflict between Catholics and Protestants was intensifying and the oppression of French Protestants, known as "Huguenots," was increasing.
The Huguenots included many skilled artisans and wealthy people, who fled to Switzerland (especially Geneva) to escape persecution, as this was a place of religious tolerance.
The advanced watchmaking techniques they brought with them were combined with the jewelry processing techniques already present in Switzerland, and became the foundation of the Swiss watch industry.
Benefits of being a permanently neutral country
As the 20th century began, the world experienced two major world wars, and once again Switzerland's political position helped protect its industry.
During World War I and World War II, while the whole of Europe was ravaged by war, Switzerland maintained its position as a "permanently neutral country."
While watch factories in other countries were bombed or converted into munitions factories for the production of weapons and went into decline, the Swiss watch industry escaped the ravages of war and was able to continue producing watches.
The Quartz Shock and Revival
The Swiss watch industry seemed to be doing well, but the 1970s saw its biggest crisis.
This was the introduction of the "quartz wristwatch" developed by a Japanese watch manufacturer.
*Quartz watches are battery-powered watches that use the vibrations of a quartz crystal to keep time. They were far more accurate than the previous mechanical watches (watches that were wound up with a mainspring and driven by gears), and could be mass-produced at low cost.
This technological innovation was called the "Quartz Shock," and it forced many Swiss manufacturers that produced expensive, inaccurate mechanical watches to go out of business.
But the Swiss didn't stop there: in the 1980s, the tide turned with the arrival of Swatch.
The Swiss watch industry underwent a restructuring based on the profits from Swatch, which was a huge hit worldwide as an inexpensive, stylish plastic fashion watch.
By establishing a new value system that mechanical watches are not just tools, but also works of art and status symbols, the company was able to regain its leading position in the luxury watch market.
2. The watch industry in Britain and France and the reasons for its decline
Before the rise of Switzerland, the watch industry was dominated by Britain and France. Why were these countries unable to maintain the positions they hold today?
France: Talent outflow and political instability

France was once a leading country in watchmaking, producing genius watchmakers such as Abraham-Louis Breguet.
However, as mentioned above, the first blow came when many talented watchmakers left for Switzerland due to the persecution of Huguenots (Protestants).
Furthermore, long periods of political instability, such as the French Revolution and the Napoleonic Wars, also hindered industrial development.
The environment in which craftsmen could calmly pass on their skills has been lost.
Britain: Sticking to craftsmanship

Until the 18th century, Britain was the world's leading clock-making power.
He had an outstanding passion for precision, particularly in developing the marine chronometer (a precision clock for navigation) necessary to determine the position of a ship.
However, British watchmaking still had a strong tendency to be "one-of-a-kind pieces made by hand by artisans."
As the Industrial Revolution progressed from the 19th century onwards, Switzerland and the United States began to produce watches more efficiently by standardising parts and adopting a division of labour, and Japan was no longer able to compete on cost.
The strong power of traditional guilds (artisan associations) is also said to have been a factor in delaying the transition to modernization.
3. The American watch industry and reasons for its decline
America has evolved differently from Europe.
In the second half of the 19th century, manufacturers such as Waltham and Elgin emerged, and America became a watchmaking powerhouse that briefly threatened Switzerland.

Establishment of a mass production system
America's strength was industrialization.
Until then, watch parts had been assembled by craftsmen, with each part having to be finely adjusted individually. However, by standardizing these parts using machines, a "mass production system" was established that ensured the same quality regardless of who assembled the parts.
This enabled them to successfully supply high-quality watches at low prices, marking an era.
Changes in industrial structure due to war
However, ironically, it was the war that brought about the decline of the American watch industry.
During World War II, at the request of the government, American watchmakers utilized their precision machining technology to focus on manufacturing military equipment such as fuses (detonators for bombs) and aircraft instruments.
As a result of shifting all production lines to military use, the return to civilian (general-use) watchmaking was delayed after the end of the war.
Switzerland overtakes Japan
While American manufacturers focused on the military industry, neutral Switzerland continued to supply the world with watches featuring the latest designs and features.
After the war, when American manufacturers finally returned to making watches, they had already lost market share to Swiss-made watches and watches made with cheaper Swiss parts.
As a result, many prestigious American brands have disappeared or been acquired by companies from Switzerland or other countries.
summary
The current association of "luxury watches = Swiss" was not established from the beginning.
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France lost its engineers due to religious persecution.
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Britain lost out in the cost competition due to its emphasis on handicrafts.
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The United States lost its market due to the shift to military demand caused by the war.
On the other hand, Switzerland has a culture that welcomes artisans who have fled from other countries, has avoided war as a permanent neutral country, and has overcome the devastating crisis of the quartz crisis through clever branding strategies and marketing.
When you pick up an antique or vintage watch that still exists today, try to find out the country and era in which it was made.
"Why does a clock from this country exist in this era?" By learning about the historical background, you can more deeply appreciate the romance packed into these small clocks.










