As we all know, the Swatch Group and the jewelry brand Tiffany have terminated their cooperation. The Swatch Group has accused Tiffany of violating the contract, saying that it ‘systematically blocks and delays the development of cooperative business. The Swatch Group said in a statement that it would claim Tiffany for business losses resulting from this. Now that the dispute has come to fruition, Tiffany will pay 402 million francs to the Swatch Group as compensation.
In 2008, the Swatch Group and Tiffany established a partnership. At that time, the two parties agreed that the Swatch Group, which specializes in watchmaking, would be responsible for the production and marketing of Tiffany’s watches. In-store sales are also sold in watch store channels that have global cooperation with the Swatch Group. In September 2011, the Swatch Group refused to continue further cooperation with Tiffany Jewellery Company, citing ‘systematically preventing and delaying the development of cooperative business’.
Swatch Group’s satisfaction with this ruling will be determined by the final loss after the cooperation ends, and is now in the process of analysis. Tiffany & Co. was disappointed with the arbitration and said it had sufficient funds to pay the compensation. For more brand news, stay tuned for Watch House. (House of watches / text Ruan Ruan)