The Breitling Watch Source Forums

Geneva Time Exhibition or GTE was the independent watchmaker fair that took place at the same time as SIHH in January. it grew rapidly in the first three years and seemed to be enjoying a lot of success as a showcase for smaller and independent brands. However, GTE just announced that they are postponing the 2014 event to 2015 due to a lack of exhibitor interest.

A little surprising given the growth that has occurred, but maybe an indication that the independents aren't doing quite so well as the big brands now that the economic recovery is slowing a little for the watch industry.

Disappointing news.

Agreed.

Long term do you see more consolidation in the industry as the behemoths continue to acquire independents. Or the opposite where the recovery leads to a greater number of smaller players?

How's your project coming along by the way?

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Happines is Good Health and a Bad Memory.
"Ingrid Bergman"

Project is on hold for some mental readjustment - don't want an ego piece and can't think how it wouldn't be an ego piece - it's still there in the background though.

I think that there will always be room for independents, but the challenge will be when those independents grow more into the mainstream. The single houses like Breitling are becoming rarer and rarer simply because it's tough to compete with the economies of scale that come from being part of a larger company. It's OK in boom times (although Breitling aren't doing as well as some), but in a down market the big guys can squeeze margins, maintain advertising, etc, and push people out - we saw it all over the place in 2008 / 2009 although because that was short lived it was only very small groups that suffered.

The niche players will do well - Hautlence, Greubel Forsey, MB&F because they don't need to sell in huge numbers, the more sensibly priced small independents probably need to plan for acquisition as an exit strategy - and there's nothing wrong with that.