Taking full advantage of the technological expertise and manufacturing capacities of the Swatch Group, the new watch company will produce a full line of TIFFANY & CO watches, all made in Switzerland. Many of the watch designs for which Tiffany is noted will be continued and new designs will be added.
The distribution of TIFFANY & CO. watches will be made through the Swatch Group distribution network (Swatch Group affiliates, Swatch Group retail facilities and third party distributors), as well as through Tiffany stores.
In addition, Swatch Group affiliates will have the right to establish and operate TIFFANY & CO watch stores in certain markets outside the U. S. The watch stores may also offer a targeted selection of TIFFANY & CO jewelry.
The watch company will support distribution with a significant marketing campaign. According to Tiffany's Mr. Kowalski, “Our advertising and that of the new watch company will be fully integrated and support a common objective.”
The initial term of the arrangement announced is 20 years; the term may be extended for an additional ten years if certain conditions are met.
Nicolas G. Hayek, chairman and co-founder of The Swatch GroupLtd, said that "this agreement is a pathbreaking strategic move.
The Swatch Group Ltd and Tiffany & Co are again setting trends. It allows without any financial capital transaction the maximum utilization of manufacturing and distribution resources of both partners."
Upcoming press conference: The two companies will host a press conference in Tiffany's flagship New York store at 727 Fifth Avenue on Wednesday, December 5th at 11:00 a.m. to provide additional details about this arrangement. Participating in person will be Nick Hayek Jr. and Michael Kowalski, and, via videolink, Mr. Nicolas G. Hayek.
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