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On Chinese Parts in Swiss Watches...

On June 01, 1999, Richard Paige (formerly of the best known watch forum) conducted an interview with Ralph Furter, head of product development for R o a m e r Watch Company. Here is an exerpt:

RP: Do many Swiss companies produce components in China?

RF: Yes, many, at least in the mid price range. There's quite a substantial number of companies which do their sourcing in Hong Kong.

RP: What well known companies produce in China?

RF: Well I don't want to mention names. But a big part of the mid range watches are produced in the far east. The industry really hasn't changed much over the years, it's still an old fashioned industry. That's why I appreciate the new way of distribution through the internet like what you're doing. As far as producing outside of the Switzerland, this is not an important issue. What does it really mean "made in American", does it mean that all of the product has to be made in the states? Look at American bicycles, the components are all made in Asia. You have to utilize the technology or possibilities from everywhere to produce a high quality product, not just by one country. It's more important to find manufacturers all over the world who can produce something good, it doesn't matter where it's made.

RP: Most Watch aficionados would have a heart attack if they realized that their Expensive Swiss watches were made up of parts from everywhere, we have this image of the little old watchmaker making watches like the old days. Is labor price the reason for seeking new manufacturing markets?

RF: The cost of living in Switzerland is so high that it's not possible to produce at adequate price levels. But for Roamer, since we're tied up with the Hong Kong company, we have this great opportunity , and we can produce higher quality goods by using the advantages that China offers today in production techniques.
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The ‘Swiss Made’ label -- an empty shell?
 
The following was written by world reknowned Pierre Maillard, editor in chief of Europastar, the watch industry's major news resource:
 
"However, this [Swiss Made] label is no longer a guarantee of origin worthy of the name because, as we know only too well, it covers all kind of practices and allows the label ‘Swiss’ to be placed on watches that are essentially Chinese. Let’s admit it. The ‘Swiss Made’ appellation is largely a masquerade."
Mr. Maillard knows the industry and is well respected.  His comments have held a great deal of weight in the industry.
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From the Federation of the Swiss Watch Industry's official website:
A Swiss watch movement

As we have seen, to be Swiss, a watch must use a Swiss movement. According to Section 2 OSM, a movement is considered to be Swiss if:

it has been assembled in Switzerland;
it has been inspected by the manufacturer in Switzerland; and
the components of Swiss manufacture account for at least 50 percent of the total value, without taking into account the cost of assembly.  (editor's note - This means that 99% of the components by quantity could be manufactured in China and if the cost of those components equals the cost of only one Swiss manufactured component, as long as the components are assembled in Switzerland -- even by imported Chinese workers, the term Swiss Made can legally be used on the watch).
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Europa Star: "I will begin by asking the inevitable question: what percentage of component parts in a T i s s o t timepiece are made in China?"

François Thiébaud (CEO of Swiss Brand T i s s o t): "I would not be telling the truth if I said there were no Chinese parts in a T i s s o t watch..."

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excerpt from an interview, conducted by Philippe Le Bé, for Bilan

Bilan: What are the main component parts of a Swiss Made watch manufactured in China?

Nick Hayek (CEO of the S w a t c h Group): "Certain bracelets, sometimes hands and dials, also packaging..."

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Interview with the president of movement maker E T A, Anton Bally
Exerpts of an interview with the former president E T A, Anton Bally from the magazine Armbanduhren:

How many mechanical movements do you produce every year ?
A bit less than five million

Does that mean that parts come from the Far East and are used in Switzerland ?
"Swiss Made" is an exactly defined term. It means that apart from the assembly, at least 50 percent of the parts (editor's note - 50% of the parts by value - not quantity - see the fhs official website for confirmation) are made here.

When you say that 80 percent of Swiss watches are fit with an ETA movement then most Swiss watches are actually ETA watches.

That would be overdoing it a bit. The usual watch buyer is only mildly interested in that, they mostly only see the design of the watch. Our job is to assure that the customer is satisfied with the movement, that it runs precisely, has enough power-reserve and that it winds well.

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There you have it - The head of the S w a t c h Group, the head of E T A, and others in the Swiss watch industry admitting that they use Chinese components in Swiss Made watches.

The Chinese have been producing quality products for Swiss watch brands for many years, now.  Don't you think it's time they get the credit they deserve?  Give the Chinese a chance.  You will undoubtedly be impressed.