by Tom Adelstein
Famous Swiss watch companies seem content to remain oblivious to threats from which they cannot recover. While trying to increase profit margins by producing watches with lower labor costs, economies of scale and off-the-shelf parts, the prideful Swiss have nothing to protect them from competition other than their trademarks and denial of warranty service. That’s not enough.
Off-the-shelf or generic watch manufacturing leads to counterfeiting. It slices big pieces of the market away from the innovators. Eventually, the buying public will fail to recognize a replica from an original . Think what would happen if the US government began selling currency paper through Walmart. That would be an open invitation to counterfeiting.
When the Swiss increase the retail prices of their watches, it has emboldens normally legitimate foreign manufacturers to “cash-in” on replicas. The brand becomes irrelevant to the manufacturer. The replica manufacturer can flood the market and make legal action ineffective.
It’s possible and perhaps likely that counterfeiting has led Hamilton’s parent, the Swatch Group Limited, to announce a policy of discontinuing the sale of ETA movements to other companies not owned by Swatch. Those “other” Swiss companies will have to purchase their movements from someone else and many “someone elses” do exist. Expired patents and weak trademark enforcement allow replica manufacturers to sell what one can call “the real thing”.
Hamilton’s success has much to do with marketing perception. On their web page, they write:
The Hamilton History is a 120 years long and eventful travel from Lancaster in the US to Biel the world capital of watchmaking in Switzerland. Today highlights from Hamilton pioneering role in the worlds of aviation, cinema, electric and digital technology shape the collection. The Hamilton watches have unique shapes, personality and design combining the American spirit with Swiss technologies.
When you look at the above paragraph, try to remember that many generations of management existed during that 120 year history. All companies change over time and the move from the US to Switzerland represents another chapter in the history of a “trademark”.
I don’t mind any company claiming a 120 year history. Do you think it applies to the current manufacturer? That’s a question every consumer should ask before they purchase a product. Of course, if it’s appealing to you, then that’s all that matters.
What About Replicas?
True Replica makers produce generic versions of existing watch brands.They “job” those timepieces out to sellers who may or may not know the difference. The retailers have no other means to purchase the original brands and must provide their own service and,or warranty. The Replica makers often claim that a foreign company “over-bought” and needs to liquid inventory at a discount.
The watches may look like Hamilton brand, but the company has this to say:
The Hamilton Warranty is exclusively for customers who bought their Hamilton watches through an authorized Hamilton retailer or through this official Hamilton e-commerce store. Any Hamilton watch bought from a non-authorized dealer, particularly over the internet, may be counterfeit, stolen, or defective. Therefore Hamilton declines all responsibility.
If you look at the last sentence – “Hamilton declines all responsibility” – then the company is implying that they are doing nothing to rid the market of replicas; they just won’t honor the warranty. If it’s me reading the signs, it’s as if they’ve given up.
That’s the cost of using generic parts to make a watch, especially when those parts don’t break down. It’s as if you don’t need a warranty.
Can the Replica Makers Really Fool US?
Yes. Emphatically.
Four years ago, I published an article about Fake Khaki Field Chronos in the market. I found them at a website known as Buy-Replicas and on eBay. The former company asked $228 for the one pictured below, while Hamilton asked $1750 for the one they shipped from Switzerland. Retailers did sell the replicas for close to Hamilton’s MSRP.
| Model : | H71556557 |
| Gender : | Mens |
| Case Material : | Stainless Steel |
| Case Diameter : | 42mm |
| Dial Color : | Silver |
| Movement : | Automatic |
| Clasp : | Brown Leather |
| Crystal : | Scratch Resistant Sapphire |
| Water Resistant : | 100m/330ft |
Two thousand dollars later, I found slight differences in the watches. An inexperienced buyer or retailer, cannot see a difference. All I might notice is the lack of a proper finish on the blank side of the dial or the shape of the hour hand. Next, I would begin to disassemble the movement.
Hamilton no longer sells the model above. Hamilton‘s offering evolved and the Field Chrono has become either the “H76566351 // Cal. ETA H21 X-Patrol Auto Chrono” or the “Jazzmaster Lord Hamilton“. They have similar movements based on the ETA 7750.
What About Fakes?
It doesn’t take much to tell a fake from a generic. It’s a clear forgery. It’s cheap – looks cheap, feels cheap and you know it’s cheap.
Generics, however, are products made by sophisticated manufacturers. The look like good watches. The quartz movements are often made by the same company as the originals.
Economics
I believe this is the subject no one wants me to touch. You don’t want to know that the $5,700 watch your grandfather bought in New York City for your grandmother cost about $150 to make. I’ve told people this and I cannot recall one who didn’t pay the high price for the “name brand”. I don’t know why.
Hamilton sells an economical automatic mechanical watch called the Khaki Field Auto 42. I love this watch. They offer it for $575 and that’s a legitimate and reasonable price.
The Auto 42 challenges the economics of generic replicas. A non-authorized, Internet based watch retailer would have to offer a generic replica for the same price to make money. Why bother?
With a bit of an ironic touch, Hamilton has created a challenger to some serious competitors like Invicta, Bulova, Michael Kors, Chanel to name a few. That sounds and feels like the Hamilton of old when they came out with the “popularly priced” line of 987A models in 1936. They took on all comers back then.
How did Hamilton make a $575 competitor? First, they put a 2824 ETA movement in their watch. That’s the movement the competition uses to take Hamilton and others head on. It’s similar to the Miyota 8205/15 used in the $250-$500 watches other brands sell.
Granted, the Miyota and ETA have grown old together during the last 40 years, but today’s versions are better. Improvements in manufacturing have led to better performance. Generic applies to both movements since they are off-the-shelf.
I’m just happy Hamilton’s management decided to fight back.
What About Other Generics?
We don’t have the column inches to write about those. Perhaps we can cover the subject on another web site.
I do have some take-aways for you:
- Check the Hamilton site and make sure any purchase you’re considering is authentic.
- If you’re buying over the Internet, consider buying from Hamilton.
- Don’t let a “big name” on-line seller lure you in. Just because that seller is big, doesn’t mean he or she is authorized. (Search eBay for this watch
)
- If you want a great watch and you can’t afford what Hamilton is offering, look at other brands. Sometimes you can get a quality watch with a different name on the dial that will make you happy.
- Don’t take anyone’s advice – including mine.
Search Hamilton wristwatches on eBay
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