Study: Communicating 'Made in Switzerland' in Swiss Watchmaking: Strategies and Impact
In August of this year an article was released under the title: How Swiss Watchmaking Brands are Communicating, written by Alina Rech, Alice Noris and Nadzeya Sabatini. The article was published in Springer Proceedings in Business and Economics. Associating the quality of a product with its country of origin can be a recipe for increasing sales.
This study also highlights the importance of authenticity and heritage in the communication of luxury brands. Brands that manage to communicate these characteristics effectively can strengthen their reputation and attract a wider audience. Finally, the study suggests that, despite the prevalence of the term 'Swiss made' and of the positive attributes associated with it, there is still room for brands to explore authenticity and other unique elements more deeply in their digital communication. The results and conclusions of this study should serve only as a starting point for further thought on these matters or for other studies, since the sample is small and data collection was limited to English-language websites of just 30 watch brands. This is cumulative knowledge, but generalising the conclusions is not advisable.
Here we offer a translation of some sections of the article; the original version, in English, can be consulted here: open.
ABSTRACT
Country-of-origin indications, also known as "made in" labelling, are used in marketing strategies by companies to set themselves apart from others, seeking to associate their products with positive characteristics.
Swiss watchmaking companies have an iconic status that is essential to their reputation - mainly owing to their high quality, precision, innovation and artisans' work. They are also using country-of-origin information as a competitive advantage in their communication strategies. Although people have become familiar with the "Swiss-made" label and numerous studies have been devoted to various topics in the field of Swiss watchmaking, there is a significant research gap as regards understanding what "made in Switzerland" communication strategies are and how Swiss watch brands are using them. This study aims to examine how country-of-origin symbols - considering terms related to Swiss manufacture - and watchmaking-related words are used, by analysing the official communication of thirty Swiss watch brands.
Introduction
Country-of-origin symbols, also known as "made in" labels, are used in brands' marketing strategies to distinguish themselves and to associate the goods they produce with positive characteristics. They are considered a competitive advantage, especially if the region or country associated with the brand is recognised for a particular product or skill. Owing to artisans' work, high quality, precision and innovation, Swiss watchmaking companies hold an iconic status that is fundamental to their reputation and a competitive advantage in their communication strategies.
After an extensive literature review, it was found that numerous studies have addressed different topics concerning the "Swiss-made brand". However, nobody has studied the "made in Switzerland" communication strategies used by Swiss watch brands.
The aim of this study is therefore to analyse how country-of-origin symbols - words related to Swiss manufacture - and watchmaking-related words are used in Swiss watchmaking.
Literature review
The literature review examines three aspects related to the "made in" theme in the Swiss watch industry, namely country of origin and made in, made in Switzerland, and the communication of made in Switzerland in the Swiss watch industry.
2.1 Country of origin and made in
The concept of country of origin is among the most examined issues in international trade and marketing. Various investigations have considered the impact of country of origin on customers' assessment of goods, on their impression and on their willingness to buy products. These studies date back to the 1960s. There are many definitions available for the term "country of origin". Zhang describes it as "information concerning the place where a product is manufactured". The "made-in" label is essential in fashion consumption, above all when it comes to luxury consumption. Country of origin generally assures consumers of artisans' work and quality and is a source of trust regarding manufacturing status. Places of origin can be used as a competitive advantage, especially if the brand's country or region is recognised for a specific skill or product. In the fashion industry, the values linked to the country of origin are embedded in a country's image and in the origin effect. Luxury labels such as "Made in Italy" or "Made in France" represent the heritage of the local fashion industry and the related experienced skills, conveying great prestige. The "Swiss-made" label legitimises "the image of regional tradition and know-how in watchmaking", governing the entry of watches into the luxury domain of Swiss products throughout the world.
The Made-In-Country Index.
According to Statista, the value of the "made-in" label is more significant than ever. In 2017, the company presented the Made-In-Country Index, which illustrates how individuals perceive "Made in..." products. This index indicates the prestige of products worldwide.
Looking at the Made-In-Country Index ranking (Table 1), we can see that Switzerland comes second (98), just behind Germany (100) and followed by the European Union (92). During the Statista surveys carried out in 2017, respondents were asked about the characteristics related to products made in Switzerland (Table 2).
43% of respondents said they relate "high quality" to products made in Switzerland, followed by "advanced technology" (28%) and "excellent design" (26%). "High quality" appears to be the most important product characteristic in consumers' descriptions of a product made in Switzerland.
2.2 Made in Switzerland
Swiss products enjoy an exceptional reputation in Switzerland and abroad, and "Swiss made" sells well. Several studies have shown that "the added value generated by the Swiss brand can account for up to 20% of the sale price of certain products - and up to 50% for luxury items - compared with comparable products of other origins". The words "Swiss" and "Swiss made" are "geographical indications denoting the place of origin of high-quality watches, clocks and alarm clocks made in Switzerland". "Swissness" is the word related to the amendment of the federal law on the protection of indications of origin and trademarks. Since the conditions governing the use of these signs, generally and with regard to the term "Swiss" in particular, were not yet fully regulated, the Swiss parliament went ahead with the revision on 21 June 2013. The "Swissness" legislation proposed new criteria that make it possible to establish the geographical origin of goods or services more precisely; namely, the law imposed the point from which goods may legitimately claim to be of Swiss origin. "A minimum rate of Swiss value of 60% for industrial goods, including watches" was established.
2.3 Communication of Made in Switzerland in the Swiss watch industry
Haute horlogerie is defined as "excellence in watchmaking, watchmaking techniques in symbiosis with the applied arts" by the Fondation de la Haute Horlogerie. The watch industry is governed mainly by Swiss brands recognised for their know-how. The Swiss watch industry arose in Geneva, Switzerland, in the mid-16th century and quickly earned prestige for excellence; and today, for more than two decades, it has enjoyed undisputed supremacy on the world market. The two most relevant Swiss watchmaking regions were and remain the Jura region and Geneva. In 2020, the craftsmanship of mechanical art and mechanical watchmaking was added to UNESCO's list of the Intangible Cultural Heritage of Humanity, confirming its universal value. To gain an edge over their competitors, Swiss watchmakers focus on unique characteristics, for example, telling stories about tradition and heritage. Brand heritage is a driver of brand identity and an essential part of the value of the Swiss watch brand. Storytelling is a crucial characteristic of luxury companies' communication strategies. Content has to inspire, inform and, ultimately, engage customers. The association with the place of origin is fundamental and is therefore publicised, because it serves as a solid and convincing competitive advantage.
Anholt introduces the concept of competitive identity as a new representation of national competitiveness amplified at world level, which is advantageous for various cities, regions and countries. All places with a positive and effective reputation notice that almost everything they launch globally is easy compared with a place with a negative reputation. However, others suggest that overemphasising the country of origin can be counterproductive, since luxury companies want to attract consumers from all over the world, indicating that being too ethnocentric can harm the company. A suitable balance must therefore be maintained. Some authors have examined marketing strategies, especially in the luxury watch sector. Philippe et al. showed how luxury watch companies use their print advertisements to establish an exclusive social position in the watch industry. Historic brands can suitably use the image of authenticity to gradually underline their expertise and originality. However, there is a considerable research gap regarding the exact official "made in Switzerland" communication strategy that Swiss watch brands use in the digital environment. The research gap will be addressed in order to determine how Swiss watchmaking companies communicate their made-in-Switzerland authenticity, particularly with regard to the digital communication of words related to Swiss manufacture and watchmaking on their corporate brand websites.
Methodology
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3.2 Stage 2 - Data collection
The first thirty Swiss watch brands were chosen from the alphabetical list on the website of the Federation of the Swiss Watch Industry (FH) so as to further generalise the results. Their official websites were analysed from 31 March to 31 July 2022.
The final sample was built according to these criteria: (a) only the English version of the websites was considered; (b) unavailable links were discarded; (c) only companies founded in Switzerland were analysed; (d) only brands that focus entirely on watchmaking were considered, eliminating those that sell other products (for example, jewellery and high jewellery).
The final list of companies was as follows:
Adriatica,
Advolat,
Aerowatch,
Andersen Genève,
André Mouche,
Armin Strom,
Audemars Piguet,
Balco,
Baume & Mercier,
Baumgartner,
Bedat & Co,
Bijoumontre,
Blancpain,
Bovet,
Breitling,
Candino,
Carl F. Bucherer,
Catena,
Catorex,
Century,
Certina,
Charles Girardier,
Chrono AG, Cimier,
Claude Meylan,
Concord,
Corum,
Cover,
Cyma,
Czapek Genève.
On the website of each Swiss watch brand, the following data were collected:
(a) Date and place of foundation and headquarters.
(b) Switzerland-related terms on the home page, on the history page and, where applicable, in the Swiss-made section, and their frequency.
(c) Switzerland-related terms in the logo and their frequency.
(d) Switzerland-related terms and visual cues on a website page with the image and description of a randomly chosen watch, and their frequency.
(e) Product attributes of the Made-In-Country Index developed by Statista [32] and shown in Table 2, on all the website pages analysed, and their frequency.
5 Discussion
We can observe that the communication terms most used on the entry page, on the history page and in the "Swiss-made" section of the thirty websites are "place of origin", "Swiss made" and "fine watchmaking".
This terminology is pertinent and related to the analysis of the literature. Places of origin are used as a competitive advantage, particularly if the company's region or country is known for a distinct type of product or specialisation. In the present study, "place of origin" refers to specific places or villages where the watch brand's manufacture is located, for example, Vallée de Joux or Le Brassus (Tables 5 and 6). The second most used word is "Swiss made". Swiss products have a remarkable reputation at home and abroad. As already mentioned, according to Statista's Made-In-Country Index, made in Switzerland ranks second worldwide (Table 1). Without a doubt, "Swiss made" has the power to sell.
The third most used term is "fine watchmaking". The Fondation de la Haute Horlogerie defines it as "excellence in watchmaking, watchmaking techniques in symbiosis with the applied arts". The watchmaking sector is dominated mainly by Swiss companies that stand out for their know-how. Swiss watchmaking companies enjoy an image of exclusivity that is essential to their reputation, thanks to their artisanal character, precision, high quality, high standards and innovation. Moreover, Swiss cultural heritage is a significant advantage for watchmaking companies.
As for the logo analysis, of the 30 items analysed, 11 have the foundation date in the logo.
Next, the most frequent Switzerland-related term is "Swiss watches" (4/30), and the most frequent place-related word is "Genève" (3/30).
The logo underlines the foundation date, since it is directly linked to a brand's history, heritage and tradition. As Aaker states, a company's heritage is a driver of brand identity and a fundamental part of the value of the Swiss watch brand.
In addition, the Swiss watch industry uses storytelling about tradition and heritage as a competitive advantage.
The most repeated Switzerland-related term in the logo is "Swiss watches". The term "Swiss" highlights the information about the country of origin of the "watches", that is, the products sold by the brand.
Next, the most common place-related word is "Genève". As illustrated in the literature review, the Swiss watch industry was established in Geneva in the mid-16th century and quickly acquired a reputation for excellence.
Furthermore, the results indicated that the term most used in the analysis of the image and description of the watch is "Swiss made". As already mentioned, "Swiss made" sells, and Swiss products have a remarkable reputation both in Switzerland and in foreign countries. According to Jeannerat and Crevoisier, the "Swiss made" label encodes "the image of regional tradition and watchmaking know-how".
It is thus understandable that it is used both on the product (image of the watch) and in the description of the watch.
A comparison can be made regarding the analysis of the product attributes of Swiss goods in the Made-In-Country Index, linking the literature review on Statista's Made-In-Country Index and the study in progress.
Only "high quality" is in the first and exact position in both tables. However, "excellent design", "exclusivity" and "advanced technology" also appear to be quite popular as communication terms for conveying the characteristics of Swiss products to website customers. A further comparison can be made by examining the list of characteristics related to Swiss manufacture and watchmaking drawn from the literature review and the data collected in the various analysis tables. Among the keywords related to Swiss manufacture, all the terms - made in Switzerland, Swiss, Swiss made, Swissness and Switzerland - are used on the websites, with the exception of "Swiss origin". On the websites examined, Swissness is the least used term. One explanation may be the fact that "Swissness" is not so common and refers more to legislation than to brands' official communication.
Among the keywords related to Swiss watchmaking, these are the terms used both in the literature review and in the analysis in progress: atelier, craftsmanship, brand heritage, high quality/quality, iconic status, innovation/product innovation, luxury value, manufacture, master watchmaker, savoir-faire, tradition and watchmaking know-how. One of the most recurrent keywords observed in the literature review is authenticity, together with tradition and craftsmanship. It is surprising to recognise that authenticity was never used among the thirty websites examined, as already established in the analysis of the product attributes of Swiss goods in the Made-In-Country Index (Table 10). As for fine watchmaking terminology, "manufacture", "master watchmaker" and "watchmaking know-how" are some of the words used, most probably because they reinforce the idea of artisanal work, expertise and high quality behind the watch.
It can be observed that many terms used on the thirty websites examined are a combination of the word "Swiss" or "Swiss made" with other terms related to the watch industry. For example, "Swiss movement" is composed of "Swiss", which designates the country of origin, and "movement", which refers to a specific characteristic of a watch. Another example is "Swiss made quality", which contains "Swiss made" as a geographical indication of the country of origin and "quality", which highlights the high-quality characteristic of Swiss watches.
However, the literature review revealed that excessive emphasis on the country of origin can be counterproductive.
A balance should therefore be preferred. The analysis pointed out that the brand with the highest number of Switzerland-related words is "Advolat", while the brand with the least frequent terms on the home page, the history page and the Swiss manufacture section is "Concord".
6 Conclusion
The theoretical contribution made by this article relates mainly to the specific terminology used by Swiss watchmaking companies on their websites to communicate the fact that they produce high-quality products made in Switzerland. To answer the main research question, the terms most used by Swiss watch brands to communicate their manufacture in Switzerland through official online communication on their websites are "place of origin", especially "Genève", "Swiss made", "Swiss watches" and "high quality". Accompanied by "excellent design", "uniqueness" and "advanced technology". The article therefore contributes to the continuation of studies on made in Switzerland in the watch industry, considering digital communication in particular.
The study provides managerial suggestions to marketing and communication strategists or to brand managers in the Swiss watch industry.
The importance of underlining the tradition, craftsmanship, high quality and origin of the watch itself is highlighted by the analysis.
The sample analysed presents a wide spectrum of Switzerland-related words, which are those used on the websites. Managers can take advantage of this, regarding the terms to use or how to use them. Swiss made is the term most used to designate the country of origin of Swiss watches. "Authenticity" is highly relevant in the literature review and in consumers' perception, as indicated by Statista, but it is not used on the websites analysed. This may be something that historic watch brands can improve in the future.
Some limitations and other research opportunities should be considered. First, the websites were examined in their English version. A further research opportunity could be to consider the language of the country of origin to determine whether the specific terms are used only in the original language of the website. Second, the chosen sample consists of thirty brand websites, in alphabetical order, out of more than 300. A larger sample could produce different results. Third, the websites were not analysed in their entirety, only certain specific pages and sections. A complete analysis, including them all, could give other results. Fourth, only brand websites were considered for the study; in future, other media platforms, such as social networks, could be considered. An analysis of the visual merchandising of the brands' shop windows could also be carried out.
A further step could be taken by contacting the brands' various marketing and communication managers with the most frequent and least frequent words related to "made in Switzerland" found through the analysis, in order to understand their communication practices and the strategic decisions related to their corporate communication. In conclusion, through a broader sample, future studies could assess the extent to which the communication strategy used by brands is successful, for example, by comparing the result with brand reputation or profits.
Linking communication research to the effectiveness of strategy may indeed draw companies' attention to the importance of having a successful communication strategy.
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