Budget Omega Watch Lures Mobs of Shoppers, Buoys Swatch Stock

Budget Omega Watch Lures Mobs of Shoppers, Buoys Swatch Stock

Swatch Group AG shares gained Monday after the release of a low-priced Swatch version of the Omega Speedmaster timepiece caused stores to be mobbed over the weekend.

From Melbourne to Hong Kong to Geneva, thousands of shoppers queued for the new timepieces, a collaboration between the Swiss watchmaker’s luxury Omega brand and its entry-level Swatch marque. Called the MoonSwatch, the $260 timepiece resembles the iconic Speedmaster Professional, known as the “Moon Watch” because it was worn by U.S. astronauts. 

Swatch shares rose as much as 5.3% in early trading.  

Reminiscent of H&M’s 2004 collaboration with luxury designer Karl Lagerfeld, the MoonSwatch represents an unusual strategy by Swatch Group, driving new interest in its watches by offering a taste of luxury at a budget price. The firm is hoping to reverse a recent trend of lower-priced watches lagging behind a sharp rebound in high-priced timepieces.

A Swatch Group spokesman said the company was “delighted” with the surge in interest and that even though stores ran out of their stock over the weekend, they aren’t sold out.   

“The watches are neither limited nor numbered and are available in a selection of Swatch stores,” the spokesman said by email. “There will be more opportunities to buy your favorite in the weeks to come.” 

The Omega MoonSwatch costs a fraction of Omega Speedmaster Professional prices, which start at about 6,300 Swiss francs ($6,700). The new model has already appeared on online auction site Ebay as buyers try to resell them.

In Geneva on Saturday, hundreds of people snaked around the block in a line at the flagship Swatch store on Rue du Marche. The crowds prompted a significant police presence and at least one person was arrested. A central London store had to close when crowds tried to get inside, the Press Association reported.

Singapore’s Minister of Home Affairs and Law, K. Shanmugam, took to Facebook to chastise poor behavior by some shoppers in the city-state.

“We have to have a sense of perspective,” the politician wrote. “There is a war going on, people are suffering in many places. We don’t need to lose our minds over these situations.” 

©2022 Bloomberg L.P.

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