engleski

WHEN IMPOSSIBLE BECOMES POSSIBLE: THE ATYPICAL COBRANDING STRATEGY OF SWATCH AND OMEGA

As an untypical co-branding strategy, the recent launch of the Omega x Swatch MoonSwatch collection created significant hype among customers. Bringing together Swatch, a brand that helped save the Swiss watch industry during the quartz crisis, and Omega, a legacy Swiss brand with a long tradition, Swatch Group initiated an unexpected collaboration between two brands with significantly different price points. On the day of the product launch, the MoonSwatch collection was available only at selected Swatch stores that were stormed by customers keen to get their hands on the novelty. This paper aims to provide strategic insight into the co-branding partnering between Swatch and Omega. Furthermore, this paper intends to shed some light on the potential strategic implications of this bold strategic move, specifically, how a collaboration of two brands within the same product category can affect the partnering brands. With Swatch profiting from this co-branding, it is questionable how it will affect Omega's image. There is a risk that the plastic watch bearing an Omega logo can harm the image of a brand positioned to compete with high-end brands such as Rolex. However, MoonSwatch can also act as an intermediary to introduce Omega to younger generations and as an Omega entry point for aspirational consumers who cannot afford the authentic Omega Seamaster. Additionally, this strategic partnering can also be examined from the perspective of the emerging smartwatch crisis that has already caused the Swiss watchmaking industry sales to decline.

co-branding, asymmetrical co-branding, unexpected collaborations, branding strategy, business strategy, Swiss watch industry, Swatch, Omega, MoonSwatch, smartwatch crisis

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