Abstract
Country-of-origin indications, also called “made in” labeling [35], are utilized in marketing strategies by companies to distinguish themselves from others, trying to associate their products with positive characteristics [9].
Swiss watchmaking companies have an iconic status that is essential to their reputation - mainly due to their high quality, precision, innovation, and craftsmanship [7]. They are also using country-of-origin information as a competitive advantage in their communication strategies [11].
Although people have become acquainted with the “Swiss-made” label, and numerous studies have been dedicated to diverse Swiss watchmaking field topics [26], a significant research gap exists regarding the understanding of what are the “made in Switzerland” communication strategies and how Swiss watchmaking brands are using them. This study aims to examine how country-of-origin symbols - considering Swiss made related terms - and watchmaking-related words are employed by analyzing the official communication of thirty Swiss watchmaking brands.
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1 Introduction
Country-of-origin symbols, also named “made in” labeling [35], are used in marketing strategies for brands to distinguish themselves, as well as associate the goods they produce with positive features [9]. They are considered a competitive advantage [12], mainly if the region or country associated with the brand is recognized for a particular product or expertise [11]. Because of craftsmanship, high quality, precision, and innovation, Swiss watchmaking companies own an iconic status that is fundamental to their reputation [7] and a competitive edge in their communication strategies [11].
After an extensive literature review, it has been observed that numerous studies have addressed different topics concerning the “Swiss-made label” [26]. However, no one has studied the communication strategies of “made in Switzerland” utilized by Swiss watchmaking brands.
Thus, the goal of this study is to analyze how the country-of-origin symbols - Swiss made related words - and watchmaking-related words are used in the Swiss watchmaking communication strategies, considering official communication of Swiss watchmaking brands online. Thirty websites of Swiss watchmaking companies were studied.
2 Literature Review
The literature review examines three aspects related to the topic of “made in” within the Swiss watchmaking industry, including country of origin & made in, made in Switzerland, and the communication of made in Switzerland in the Swiss watchmaking industry.
2.1 Country of Origin and Made in
The country-of-origin concept is amongst the most examined issues in international business and marketing [33]. Various research has considered the country-of-origin impact on customers’ goods evaluation, impression, along with eagerness to buy products [13, 21]. These studies date back to the 1960s. Many definitions are available regarding the term “country of origin”. Zhang describes it as “information pertaining to where a product is made” [3] (p.51). The “made-in” label is essential in fashion consumption, mainly when discussing luxury consumption. The country of origin generally guarantees craftsmanship and quality to consumers and is a source of trust concerning the manufacturing status [27]. Places of origin can be used as a competitive advantage, especially if the brand’s country or region is recognized for specific expertise or a product [11]. In the fashion industry, the values connected to the country of origin are embodied within a country’s image and origin effect. Luxury labels such as “Made in Italy” or “Made in France” represent the local fashion industry heritage and related experienced skills, transmitting great prestige [26]. The Swiss-made label legitimizes “the image of the regional tradition and know-how for watchmaking” (p.38), regulating the entrance of timepieces within the luxury field of Swiss products worldwide [22].
Made-In-Country Index.
According to Statista [31], the value of the “made-in” label is more significant than ever. In 2017 the company presented the Made-In-Country Index, which illustrates how individuals perceive goods “Made in…”. This index indicates the prestige of goods worldwide [31]. By looking at the Made-In-Country Index ranking (Table 1), we can see that Switzerland’s position comes in second place (98), right after Germany (100), and followed by the European Union (92). During the Statista surveys run in 2017, respondents were asked about characteristics related to made-in-Switzerland goods (Table 2). 43% of respondents claimed that they relate “high quality” with goods made in Switzerland, followed by “advanced technology” (28%) and “excellent design” (26%) [32]. “High quality” seems to be the most crucial product characteristic when describing a Swiss-made product by the consumers.
2.2 Made in Switzerland
Swiss goods have an exceptional reputation in Switzerland and foreign countries [10], and “Swiss made” is able to sell well [30]. Several studies have demonstrated that “the value-added generated by the Swiss brand can represent as much as 20% of the sale price for certain products – and as much as 50% for luxury items – compared to comparable goods from other origins” [30].
The words “Swiss” and “Swiss made” are “geographical indications denoting the place of origin of high-quality watches, clocks, and alarm clocks manufactured in Switzerland” [24] (p.944). “Swissness” is the word related to the modification of the Federal Law on the protection of indications of origin and trademarks [17]. Since conditions regulating the utilization of these clues, usually and concerning the term “Swiss” mainly, were not yet thoroughly regulated, the Swiss parliament advanced the revision on 21 June 2013 [17]. The “Swissness” legislation proposed new criteria making it possible to establish more precisely the geographical origin of goods or services; namely, the law imposed the point at which goods can legitimately declare to be of Swiss origin [17]. It has been established “a minimum rate of Swiss value of 60% for industrial goods, including watches” [17].
2.3 Communication of Made in Switzerland in the Swiss Watchmaking Industry
Fine watchmaking is defined as “excellence in watchmaking, the techniques of watchmaking in symbiosis with the applied arts” (p.14) by the Fondation de la Haute Horlogerie [18]. The watchmaking industry is regulated mainly by Swiss brands renowned for their expertise [28]. The Swiss watchmaking industry emerged in Geneva, Switzerland, in the middle of the 16th century, soon securing a prestige for excellence [16]; and now, for over two decades, it has experienced undisputed supremacy in the worldwide market [14]. The two most relevant Swiss watchmaking regions were and still are the Jura region and Geneva [28]. In 2020, the craftsmanship of art mechanics and mechanical watchmaking was added to UNESCO’s List of the Intangible Cultural Heritage of Humanity [23, 25] while confirming its universal value.
To gain an advantage over their competitors, Swiss watchmakers concentrate on unique features [26], for instance, storytelling about tradition and heritage. Brand heritage is a driver of brand identity and an essential part of Swiss watch brand equity [1]. Storytelling is a crucial characteristic of the communication strategies of luxury companies [8]. The content has to inspire, inform and, ultimately, engage the customers [11]. The association with the place of origin is fundamental and, thus, is advertised because it serves as a solid and compelling competitive advantage [12].
Anholt [4] introduces the concept of competitive identity as a new representation of amplified national competitiveness worldwide, which is advantageous for various cities, regions, and countries. Every place with a positive and effective reputation notices that nearly everything they launch at a global level is effortless compared to one with a negative reputation [5]. However, others suggest that excessively emphasizing the country of origin might be counterproductive since luxury companies want to attract consumers worldwide, indicating that being too ethnocentric might undermine the company [34]. Therefore, an adequate balance should be maintained. Some authors have examined marketing strategies, especially in the luxury watchmaking industry [11, 28]. Philippe et al. [28] displayed how fine watchmaking companies utilize their printed commercials to establish an exclusive social position in the watch industry. Historical brands can adequately use the image of authenticity [19] to gradually underline their expertise and originality [6]. However, a considerable research gap exists regarding the precise official communication strategy of “made in Switzerland” that Swiss watchmaking brands use in the digital environment. The research gap will be addressed to determine how Swiss watchmaking companies communicate their made-in-Switzerland authenticity, particularly concerning the digital communication of Swiss made and watchmaking-related words on their corporate brands’ websites.
3 Methodology
3.1 Step 1 – Literature Review and Research Questions
Through the literature review, a list of characteristics related to “made in Switzerland” watchmaking was created. Table 3 concerns the Swiss made keywords and Table 4 includes the Swiss watchmaking associated terms. The keywords in Table 3 were chosen when conducting the literature review, selecting terms used to express the origin of Swiss watches. While the words in Table 4 were selected since they relate to watchmaking characteristics, identity, or craftsmanship. According to Philippe et al. [28], the essential significance of fine watchmaking contains identity (referring to geography and history), mastery, and authenticity. This terminology has become the starting point for the analysis section.
As the aim of the study is to understand how Swiss watchmaking brands are communicating made in Switzerland digitally, the decision has been to analyze the official websites of a series of Swiss watchmaking brands.
The following research questions are proposed: How is Swiss made communicated (both from a verbal and visual perspective) on the websites? Which is the most frequent terminology used?
The brands were chosen from the Federation of the Swiss Watch Industry (FH) website [15], the Swiss watchmaking industry's leading organization, which unites more than 300 Swiss watchmaking brands.
3.2 Step 2 – Data Collection
The first thirty Swiss watchmaking brands were chosen from the alphabetical list of the Federation of the Swiss Watch Industry (FH) website to generalize the results further. Their official websites were analyzed from March 31 to July 31, 2022.
The final sample was built according to these criteria: (a) only the English version of the websites have been considered; (b) unavailable links have been discarded; (c) only companies founded in Switzerland have been analyzed; (d) only brands that focus entirely on watchmaking have been taken into account, eliminating the ones selling other products (e.g., jewelry and high jewelry).
The final list of companies were the following: Adriatica, Advolat, Aerowatch, Andersen Genève, André Mouche, Armin Strom, Audemars Piguet, Balco, Baume & Mercier, Baumgartner, Bedat & Co., Bijoumontre, Blancpain, Bovet, Breitling, Candino, Carl F. Bucherer, Catena, Catorex, Century, Certina, Charles Girardier, Chrono AG, Cimier, Claude Meylan, Concord, Corum, Cover, Cyma, and Czapek Genève.
Per each Swiss watchmaking brand’s website, the following data was gathered:
-
(a)
Date and place of foundation and headquarters.
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(b)
Swiss-related terms on the homepage, history page, and eventually, Swiss-made section and their frequency.
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(c)
Swiss-related terms inside the logo and their frequency.
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(d)
Swiss-related terms and visual cues on a randomly chosen watch image and description website’s page and relative frequency.
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(e)
Made-In-Country Index product attributes developed by Statista [32] and presented in Table 2 on all the analyzed website pages and their frequency.
3.3 Step 3 – Content Analysis
Content analysis was chosen as a methodology, combining qualitative and quantitative study, the latter employed to establish the frequency of phenomena [20]. The content analysis has been divided into six parts. For each website, (1) homepage, (2) history page, (3) eventual Swiss-made dedicated section, (4) logo, (5) watch image and description, (6) Made-In-Country Index Swiss goods product attributes were examined.
An example of Swiss-made section analysis is the following. Below is an extract of the brand Advolat Swiss-made website section [2]. Swiss-related words relevant to the content analysis have been underlined.
“What exactly does SWISS MADE mean for watches?
The rules of the Association of the Swiss Watch Industry (FH) have been in effect since 1971 and define exactly when a watch may bear the words SWISS MADE on its dial and case back. These criteria were revised again in 2013 according to new, even stricter Swissness rules, stated as follows:
The movement must have been made in Switzerland (as before), “Swiss Parts" is not enough, it must be genuinely Swiss Made.” [2].
In addition, all the data analyzed has been compared to the list of characteristics related to Swiss made and watchmaking industry derived from the literature review (Tables 3 & 4).
3.4 Step 4 – Coding Process
One researcher developed the codes, while the coding schema has been double-checked and approved. The terminology was selected as follows:
-
(a)
A term might be composed only of one word or a combination of words (two or more), and therefore during the quantitative analysis (frequency) is just counted once.
-
(b)
Terms should be strictly related to Swiss-made labels, places of origin, or Swiss watchmaking characteristics. Words concerning the brand’s heritage and craftsmanship were also coded as pertaining to the “Swiss-related” terms (Swiss made + watchmaking).
-
(c)
“Swiss watches” (plural) and “Swiss watch/timepiece” (singular) have been considered distinct categories in frequency counting, purely as a matter of semantics.
4 Results
This section introduces the sample examined and the analysis’ findings, responding to the research questions.
More than half of the companies analyzed were founded and still have headquarters in the French-Swiss part of Switzerland. In specific, 17 out of 30 companies are French-Swiss, 11 out of 30 are Swiss-German, and 2 out of 30 are Swiss-Italian.
(RQ) How is Swiss made communicated (both from a verbal and visual perspective) on the websites? Which is the most frequent terminology used?
Regarding the communication words used within the homepage, history page, and Swiss-made section of the thirty websites, the results have underlined that the most used ones are “place of origin” (42), “Swiss made” (31), and “fine watchmaking” (27) (Table 5). It is relevant to note that only 4 out of 30 brands had a Swiss-made section on their website.
Concerning the logo, within the sample examined, 11 out of 30 have the foundation date within it. The most frequent Swiss-related word is “Swiss Watches” (4/30), and the most frequent place-related term is “Genève” (3/30) (Table 6).
The findings have then highlighted that the most used word in the watch image and description study is “Swiss made”. For the visual part, cues were examined primarily on the frontal image of the watch itself, while for the textual one, cues were analyzed in the description of the chosen watch.
Overall, the visual cues are the most present in the watch image and description analysis of all the thirty websites examined. They are 47, including mainly the Swiss-made term inscribed within the watch (image) and four Swiss crosses (symbols) present in the watch description (Table 7). Instead, the textual cues - Swiss-related words included in the watch description - are 28 in total (Table 7), and the most frequently used one is “Swiss made” (14).
Finally, regarding the Made-In-Country Index Swiss goods product attributes analysis found on all the analyzed websites pages, the results have shown that the most frequent product attributes used are “high quality” (79), “excellent design” (69), and “uniqueness” (44). Followed by “advanced technology” (19) and “status symbol” (2). Instead, “high security standards” and “authenticity” were never used on all the different pages of the websites (Table 8).
To wrap up, “place of origin” (particularly “Genève”), “Swiss made”, and “Swiss watches” are among the most used terms concerning the overall words used within the various website pages (homepage, history page, and Swiss-made section) and the logo. “Swiss made” and “Genève” are also the most used in the watch image and description analysis.
5 Discussion
It can be observed that the most used communication terms within the homepage, history page, and Swiss-made section of the thirty websites are “place of origin” (42), “Swiss made” (31), and “fine watchmaking” (27).
This terminology is relevant and connects to the literature review. Places of origin are used as a competitive advantage, particularly if the region or the country of the company is known for a distinct kind of product or expertise [11]. “Place of origin” in the present study refers to specific places or villages where the manufacture of the watchmaking brand is located, for instance, Vallée de Joux or Le Brassus (Tables 5 & 6.).
The second most used word is “Swiss made”. Swiss products have a remarkable reputation at home and abroad [10]. As previously stated, according to Statista’s [31] Made-In-Country Index, made in Switzerland comes in second place globally (Table 1). Undoubtedly, “Swiss made” has the power to sell [30].
The third most used term is “fine watchmaking”. Fondation de la Haute Horlogerie defines it as being “excellence in watchmaking, the techniques of watchmaking in symbiosis with the applied arts” [18] (p.14). The watchmaking industry is dominated primarily by Swiss companies distinguished for their know-how [28]. Swiss watch companies enjoy an exclusive image that is essential for their reputation as a result of craftsmanship, precision, high quality, high standards, and innovation [7]. Furthermore, the Swiss cultural heritage is a significant advantage for watch companies [29].
Regarding the logo analysis (Table 6), out of analysis, out of 30 analyzed items, 11 have the foundation date within the logo. Then, the most frequent Swiss-related term is “Swiss watches” (4/30), and the most frequent place-related word is “Genève” (3/30).
The logo underlines the foundation date since it is directly linked to a brand’s history, heritage, and tradition. As stated by Aeker [1], a company’s heritage is a driver of brand identity and a fundamental part of Swiss watch brand equity. In addition, the Swiss watch industry uses storytelling about tradition and heritage as a competitive advantage [14].
The most repeated Swiss-related term in the logo is “Swiss watches”. The term “Swiss” highlights the country-of-origin information about the “watches”, i.e., the products sold by the brand.
Then, the most common place-related word is “Genève”. As illustrated in the literature review, the Swiss watchmaking industry was established in Geneva in the middle of the 16th century and soon acquired a reputation for excellence [16].
The findings have additionally pointed out that the most used term in the watch image and description analysis is “Swiss made”. As already mentioned, “Swiss made” sells [30], and Swiss goods have an outstanding reputation both in Switzerland and in foreign countries [10]. In line with Jeannerat and Crevoisier [22], the Swiss-made label codifies “the image of the regional tradition and know-how for watchmaking” (p.38).
Thus, it is understandable why it is used both on the product (watch image) and in the watch’s description.
A comparison can be made regarding the Made-In-Country Index Swiss goods product attributes analysis, linking the literature review on the Made-In-Country Index by Statista [32] and the undergoing study (Tables 9 & 10).
Only “high quality” is in both tables’ first and exact position. Nevertheless, also “excellent design”, “uniqueness”, and “advanced technology” seem to be quite popular as communication terms to transmit the features of Swiss goods to the websites’ customers. An additional comparison can be made by examining the list of characteristics related to Swiss made and watchmaking extracted from the literature review (Tables 3 & 4) and the data gathered in the various analysis tables. Among the Swiss made related keywords, all the terms - made in Switzerland, Swiss, Swiss made, Swissness, and Switzerland - are used on the websites, except for “Swiss origin”. On the websites examined, Swissness is the least used one (2). An explanation might be that “Swissness” is not so common and refers more to the legislation than to official communication by the brands.
Among the Swiss watchmaking related keywords, these are the terms used both in the literature review and the undergoing analysis: atelier, craftsmanship, heritage/brand heritage, high quality/quality, iconic status, innovation/product innovation, luxury value, manufacture, master watchmaker, savoir-faire, tradition, and watchmaking know-how. One of the most recurring keywords noticed in the literature review is authenticity, together with tradition and craftsmanship. It is surprising to acknowledge that authenticity was never used among the thirty websites examined, as already established in the Made-In-Country Index Swiss goods product attributes analysis (Table 10). Concerning the fine watchmaking terminology, “manufacture”, “master watchmaker”, and “watchmaking know-how” are some of the words utilized, most probably because they enhance the idea of craftsmanship, expertise, and high quality behind the timepiece. It can be observed that many terms used in the thirty websites examined are a combination of the word “Swiss” or “Swiss made” and other terms related to the watchmaking industry. For instance, “Swiss movement” is composed of “Swiss”, designating the country of origin, and “movement”, referring to a specific feature of a watch. Another example is “Swiss made quality”, containing “Swiss made” as a geographical indication of the country of origin and “quality” emphasizing the high-quality characteristic of Swiss watches. However, from the literature review, it has been discovered that an excessive emphasis on the country of origin might be counter-productive [34]. Thus, a balance should be preferred. The analysis stressed that the brand with the most Swiss-related words is “Advolat”, while the brand with the least frequent terms on the homepage, history page, and Swiss-made section is “Concord”.
6 Conclusion
The theoretical contribution given by this paper mainly refers to the specific terminology used by Swiss watchmaking companies on their websites to communicate the fact that they are producing high-quality Swiss-made goods. To respond to the main research question, the most used terms by the Swiss watchmaking brands to communicate their made in Switzerland through their official online communication on their websites are the “place of origin”, especially “Genève”, “Swiss made”, “Swiss watches”, and “high quality”. Accompanied by “excellent design”, “uniqueness”, and “advanced technology”. The paper, therefore, contributes to the continuation of studies regarding made in Switzerland in the watchmaking industry by considering digital communication in particular.
The study provides managerial suggestions to marketing and communication strategists or brand managers within the Swiss watchmaking industry. The importance of underlining the tradition, craftsmanship, high quality, and origin of the watch itself is highlighted by the analysis. The sample analyzed gives a broad spectrum of Swiss-related words, which are the ones used in the websites. Managers can benefit from this, related to the terms to use or how to use them. Swiss made is the most used term concerning the country of origin of Swiss watches. “Authenticity” is highly relevant in the literature review and the consumers’ perception, as indicated by Statista, but not used in the analyzed websites. This could be something that historical watch brands might improve in the future.
Some limitations and further research opportunities should be considered. First, the websites were examined in their English version. An additional research opportunity might be to consider the country-of-origin language to further determine if specific terms are only used in the original language on the website. Second, the chosen sample is composed by thirty brands’ websites in alphabetical order out of more than 300. A more extensive sample might create different results. Third, the websites have not been completely analyzed, just some specific pages and sections. A full analysis, comprising all, might give other outputs. Fourth, only the brand websites have been considered for the study; in the future, other media platforms like social media might be considered. A visual merchandising analysis of the brands’ window shops could also be conducted. A further step might be taken by contacting the brands’ various marketing and communication managers with the most frequent and least frequent “made in Switzerland” related words found through the analysis to understand their communication practices and related strategic decisions in their corporate communication. In conclusion, through a broader sample, future studies could evaluate to what degree the communication strategy used by the brands is successful, for instance, by comparing the outcome to brand reputation or profits. Associating communication research with the strategy’s efficiency might, in fact, motivate companies’ attention toward the relevance of having a successful communication strategy.
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Rech, A., Noris, A., Sabatini, N. (2023). How Swiss Watchmaking Brands are Communicating Made in Switzerland. In: Sabatini, N., Sádaba, T., Tosi, A., Neri, V., Cantoni, L. (eds) Fashion Communication in the Digital Age. FACTUM 2023. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-38541-4_10
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