In Zhenting Du’s blog, he argues that the Apple Watch will challenge the Swiss Watch since the practical value of iWatch outweighs the collection value of luxury watches. I agree with his idea and want to talk more about why Apple can win the battle as well as how can the Swiss Watch industry react to the challenge.
Apple has a reason for developing the watch division while recogonizing the dominate role of the Swiss Watch in the industry. Considering the value proposition of iWatch, it not only shows accurate time, but also allows customers to check emails, messages and make phone calls on this garget. By introducing a new, technical lifestyle to its customers, iWatch can reach a larger market and attract more potential customers. Additionally, being the leader among technology companies, Apple has a great strength in developing electronic products. Its another strength is that Apple has been well known for its fashion tastes and has a lot of loyal fans. The relative cheaper price and cute outlook also cater to customers’ needs.
Although the Swiss Watch is a symbol of class and status, the whole industry cannot only depend on collectors. With the launch of iWatch, customers will expect more on watches, thus challenging the Swiss Watch industry. Facing the external threat, it should keep developing its strength of being a status symbol but also cooperate with other technology firms and develop smart watches to expand value proposition and attract customers in the meanwhile.