Do you have watches? I’d bet the majority of us is “yes” (we’ll forget for one second those kids who do not wear watches since they use their phones to do everything!) What kind of watch do you have? Is it a Patek Philippe? I suspect not. There is however an industry for high-priced Swiss watches. This market is struggling and it’s in no way the responsibility of Swiss watch manufacturers. What can they do?
What Happened To The Market For Swiss Watches
As product managers, we are prepared to handle the changes that occur in our markets. There will always be new competition, new features that customers should have, and similar. However, in the instance of the Swiss watch industry’s product managers, they have seen events happen within their industry which they have no control over. Actually, there was no way to predict the events that would occur and they now are in a very extremely difficult and unpopular situation.
The event that caused the market to turn for Swiss watches upside down came about in the event that the Swiss government made a decision to modify the restrictions on exchange rates that were in place. Without making it too complicated financially for you, what the Swiss authorities did was cease ensuring it would be 1.20 Swiss francs to a euro. The exchange rate is free to move upwards and downwards. The result will be that Swiss watches are now significantly more expensive over the weekend.
As if that wasn’t enough the fact is that the recent turmoil in the political scene that has erupted in Hong Kong didn’t do the Swiss watch producers any favors neither. For three months, protesters closed off parts of Hong Kong’s central area. For Swiss watchmakers, this is a major route that their watches follow in order to be purchased by wealthy Chinese customers. It was evident that there were no sales on watches during the demonstrations, which were being held on outside of the shops.
How Swiss Watch Product Managers Can Survive
Check out your definition of product development, and you’ll see that it doesn’t mention how to manage any of these changing market circumstances. It’s all too easy to relax and think “there is nothing that I can do about this” which is a sort of taking on an “act of God” type of mental attitude. But, we must always think about our resumes for product managers which means that no matter what happens you must be prepared to respond.
The shift in the rate at which the Swiss Franc will immediately impact the profits of Swiss manufacturers of watches. One thought is to transfer certain or all manufacturing of watches to a country with the labor costs are lower than Switzerland. It turns out that if a company that makes watches is looking to get the highly sought-after “Swiss Made” label on their watches, they must be able to show at minimum 60% of the watch made in Switzerland.
What Swiss product managers of watches will likely do is to increase the price of their watches. The more popular a brand can be, the more feasible this approach is. But for smaller brands or brands that have fallen out of popularity with their customers and are not gaining popularity, will be forced to seek alternative options. This could include joining with a different watchmaker to form one brand that is better able to protect its position in the market.
What All Of This Means For You
Though I’ve heard Switzerland is an extremely gorgeous place to live but I’m not sure whether I’d like to work as a product manager at the current time. It is the Swiss government’s decision to permit the currency of their country to “float” in relation to other currencies that have created an abundance of confusion in the highly-priced world of Swiss watches.
It is believed that the Swiss Product Managers have faced two major market changes The bottom line of the company has been impacted negatively due to the floating Swiss franc. Protesters from Hong Kong shut down a crucial selling route for three months. To deal with these problems, Swiss watch product managers have to look at raising the price of their products. If they aren’t able to do so then they might need to look for other companies to join.
Product managers believe that we are in charge of our product as well as our market. But, as the Swiss watch industry’s product managers have demonstrated that this isn’t always the situation. What we have in order to swiftly adjust to changes in our marketplaces. The ability to adapt quickly should be part of every job description. The Swiss watch managers are in a position to take this on today. Let’s look (so to say) and find out how it will turn into…!
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