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Swatch Group Anticipates Record Sales in 2011

Swatch Group SA CEO Nick Hayek just announced that his luxury watch conglomerate is increasing production by hiring up to 1500 more employees in its watch-making facilities to account for large demand. The Swatch Group sales goal this year is $7.5 billion- which would be a record year.

The Omega brand followed by Longines, Breguet and Tissot have increased profitability for Swatch Group, which is the largest luxury watch brand in the world.

This news is quite significant for us watch enthusiasts as well as economists because it tells us that the main luxury watch brand is making a healthy comeback and perhaps looking past the last global economic recession. For watch collectors and buyers, this can signify higher paid prices for watches, as supply seems to be outpaced by demand. It also suggests that prices for used watches will hold strong- which a great relief after the watch sell-off of 2008 and 2009, where used watches seemed to have flooded the market.

We will follow other watchmakers' production and profitability numbers closely during 2011- especially since the market has been quite erratic and once again challenged due to the unrest in the Middle East, particularly the ongoing troubles in Iran and Libya, the Chinese economy slowdown, and unemployment and real estate concerns in the US, and the European economy deep challenges- especially with Spain, Iceland, England, and Greece.