Revenue distribution by sectors:

• Watches and jewelry: approx. 85%
• Electronic systems: approx. 10%
• Other: approx. 5%

TOP 3 markets:

• China: approx. 35%
• USA: approx. 20%
• Switzerland: approx. 15%

The Swatch Group AG generates the majority of its revenue from the watches and jewelry sector, which represents its core competency. The Chinese market is the largest individual market, highlighting the importance of Asia for the company. The USA and Switzerland follow, with Switzerland playing an important role not only as the home market but also as a significant production location.

Production Sites: Switzerland, China, Thailand, Malaysia

The Swatch Group AG produces the majority of its watches and movements in Switzerland, which is attributed to the high quality and precision of Swiss watchmaking. In addition, the company has production facilities in China, Thailand, and Malaysia to manufacture certain components and benefit from cost-effective production opportunities.

This international production strategy enables the Swatch Group to meet the high quality standards of the Swiss watch industry and offer competitive prices through more cost-effective production sites in Asia.

Revenue Growth: Estimated 5-7% annually (2025)

Market Expansion: Focus on Asia and the Middle East

Product Innovation: Introduction of new smartwatch models

The Swatch Group AG is pursuing a multi-pronged growth strategy that focuses on both geographical expansion and product innovations. A key element of this strategy is the increased presence in high-growth markets such as Asia and the Middle East, where the demand for luxury watches continues to be strong.

Additionally, the company is investing in the development of new technologies, especially in the field of smartwatches, to target younger audiences and leverage technological advancements. This innovation strategy is intended to complement the existing product portfolio and tap into new revenue streams.

Furthermore, Swatch places great emphasis on sustainability and efficiency in production, aiming to not only reduce costs but also strengthen the brand image. These measures together are expected to lead the company onto a stable growth trajectory in the coming years.

Main materials: Stainless steel, gold, diamonds, sapphire glass, leather

Countries of origin:

• Stainless steel: Mainly sourced from European countries such as Germany and Italy.
• Gold: Imported from countries with established gold markets like South Africa and Canada.
• Diamonds: Sourced from countries such as Russia, Botswana, and Canada.
• Sapphire glass: Primarily from Asian countries like Japan.
• Leather: Imported from Italy and France.

The Swatch Group AG sources a variety of raw materials and materials from different countries to produce their high-quality watches. Stainless steel and sapphire glass are essential for the cases and dials, while gold and diamonds are used for the more luxurious models. Leather is used for straps and comes from countries with a long tradition in leather processing.

Market share: 25% (estimated for 2025) Gross margin: 60% (2024) Research and development expenditure: 5% of revenue (2024)

The Swatch Group AG possesses a significant competitive advantage that manifests through several factors. Firstly, the company holds an estimated market share of 25% in the global watch market, indicating a strong brand presence and a wide product portfolio. This position enables Swatch to leverage economies of scale and have a strong negotiating position with suppliers and retailers.

The 60% gross margin shows that Swatch is able to sell its products at a high price premium, indicating a strong brand perception and product quality. This high margin is an indicator of the company's ability to efficiently manage its costs while creating value for customers.

Furthermore, Swatch invests approximately 5% of its revenue in research and development, highlighting the company's innovation power. These investments allow Swatch to continuously bring new and improved products to the market, which is crucial for maintaining and expanding its competitive advantage.

Overall, The Swatch Group AG's competitive advantage is strong, supported by market leadership, high margins, and continuous innovation.

Institutional Investor Share: approximately 35% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (2024)

The institutional investor share in The Swatch Group AG is around 35%. This estimate is based on historical data and typical ownership structures in large publicly traded companies in Switzerland.

In 2024, there were no significant insider transactions, indicating that the management and other insiders are currently not making significant changes to their holdings in the company. This could suggest a stable trust in the company's management and future development.

Please note that this information is based on estimates and general market trends, as specific current data for 2025 may not be available.

Market share of The Swatch Group AG: 25% (estimated 2025)

Main competitors and their market shares:

1. Rolex SA: 20%
2. LVMH Moët Hennessy Louis Vuitton (watch division): 15%
3. Richemont (Cartier, IWC, etc.): 12%
4. Seiko Holdings Corporation: 10%
5. Citizen Watch Co., Ltd.: 8%
6. Fossil Group, Inc.: 5%
7. Casio Computer Co., Ltd.: 5%

Moat of The Swatch Group AG:

The Swatch Group AG possesses a significant moat, characterized by a wide range of brands, including Omega, Longines, and Swatch, as well as vertical integration in production. This strategic focus enables the Swatch Group to control costs and implement innovations quickly.

In comparison to Rolex, which has a strong brand value and exclusivity as its moat, the Swatch Group offers a broader spectrum of price segments and target groups. LVMH and Richemont also excel with strong luxury brands, while Seiko and Citizen stand out for technological innovations and good value for money.

Overall, the Swatch Group has a robust moat, but it is challenged by strong competition in the luxury segment and technological advancements by competitors. The ability to continuously adapt and innovate will be crucial for long-term competitiveness.

Revenue Growth: 8% (2024) Profit Growth: 10% (2024) Market Share in the Luxury Segment: 25% (2024)

In 2024, Swatch Group AG recorded a revenue growth of 8%, attributed to strong demand for luxury watches and successful market expansion. The 10% profit growth indicates that the company was able to improve its efficiency and benefit from cost-cutting measures.

With a 25% market share in the luxury segment, Swatch Group is well positioned to benefit from the ongoing demand for high-quality timepieces. The strong brand presence and continuous innovation in its product range support this position.

Furthermore, the company has invested in sustainable practices and digitalization in recent years, which is expected to lead to greater competitiveness in the long term. These factors suggest that Swatch Group AG represents a solid investment opportunity, especially for investors focusing on long-term growth in the luxury goods market.

Dividend Yield: 2.5% (2025, estimated)
Dividend History: Continuous payouts in recent years

The Swatch Group AG is known for regularly distributing dividends to its shareholders. In recent years, the company has pursued a stable dividend policy, indicating a reliable payout.

The dividend yield of approximately 2.5% in 2025 reflects the company's ability to pass on profits to shareholders. This stability is supported by the strong market position and continuous demand for luxury watches. Analysts expect Swatch Group to maintain its dividend policy unless significant economic turbulence occurs.