Reviving Swatch: Innovation, Governance, and a Call for Reform

Swatch, the iconic Swiss watchmaker, is under pressure to breathe new life into its brand as profits and market value continue to lag. With the recent proposal to add Swiss businessman Andreas Rickenbacher to its board, Swatch is taking steps towards revamping its governance structure, crucial for restoring investor faith.

Analysts argue that Swatch's current offerings lack relevance, emphasizing the need for reform. Steven Wood of GreenWood, an activist investor, criticized the brand for its outdated appeal despite its once pioneering status with tech-forward plastic watches in the 1980s.

Swatch's operational inefficiencies are also in the spotlight. Maintaining high production levels amid soft demand has inflated inventories and pressured margins. Experts urge Swatch to focus on high-margin luxury watches and potentially offload struggling mid-market brands to bolster long-term profitability.