This post is a part of a full analysis of Swatch.Swatch is in the business of making and selling watches. After determining its investment thesis and valuation, we must dive deeper into understanding its business better. So is watchmaking a good business? In the 1980s, most people would argue that mechanical watchmaking sucks. Who needs watches that require winding, maintenance and yet not as accurate as battery operated once? The story of the demise and revival of the Swiss watchmaking industry is a fascinating one. I suppose you can find a much better version using Google, but for your convenience, let me just briefly summarize here. About 40-50 years ago, there were no battery operated watches and the Swiss dominated the watchmaking industry. But the Japanese came along, with quartz watches (Seiko and Citizen) and pure battery digital ones (Casio) and virtually wiped out the Swiss watchmakers. Export volume ...