In order to understand the attractiveness of the brands, we need to have a look at the points of differentiation as well as the points of parity. The brands are usually trying to be innovative when they enter a competitive market, however in some cases they are just trying to catch up with the leader... 


 Points of Differentiation


Swatch:

Swatch is different from its competitors thanks to their innovation: With new collections and design launched twice a year (like the Haute Couture is launching their collections) they are able to create desirability, ad differentiate from the competition.

Swiss made watches: When all its competitors have their manufactures in Asia, Swatch creates its watches in Swiss. Synonym of quality for the clients, this is still today a strong added value for the brand.  

Another important asset for Swatch is that they are world’s leader in the manufacturers market. Whereas other brands use suppliers to create parts of their watches (or even all the pieces of it), Swatch on the contrary is manufacturing every single component of its watches for all the 18 brands of the group.

Ice Watch:

The Packaging: Where other brands are putting an emphasis on the quality of the product, Ice Watch focus on the all package. "We sell watches, but the difference from other brands is that we also sell a packaging, an identity, an influence that owe much to design", explains Jean-Pierre Lutgen.

Communication and product placement: Ice watch as an aggressive communication strategy. They use many trendy and international celebrities (Jennifer Lopez, David Guetta, Jason Derulo, DJ Tiesto, No Doubt…) to promote their products. It is not a direct communication about the product as they include their watches (with more or less subtlety!) into video clips, but it is incredibly powerful to reach their target customers as it make their watches very desirable.

Points of Parity



Affordable watches would be the man point of parity for these competitors. Swatch was the first company to launch good quality watches at an affordable price (Originally, it was for them to survive the Swiss watches crisis, when the Japanese brands became strong on the market). Since then many other brands including Ice watch, are offering affordable watches to the public.

Fun watches is the second point of parity of the competitors. Created to break the codes of the classical and luxurious brands. Those watches are created for the people who wants to wear their watch like any other fashion accessory. The products remains simple but customers can find products that are adapted to any situation of the day.

FP.

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