s one of the largest watchmakers in the world, Timex Group has deftly defended against the threats posed by the rise of smartwatches and recent market volatility. Its resilient recovery has surpassed pre-pandemic performance, distinguishing itself in an industry grappling with diminishing lower-end segments. Notably, the Group is flourishing, particularly as the United States fortifies its status as a prime market for Swiss watch exports.

From its headquarters in Middlebury, Connecticut, Timex Group commands a remarkable global presence, boasting five regional hubs and over 22,000 points of sale. In an illuminating conversation, Tobias Reiss-Schmidt, CEO and President since 2015, delves into the company’s ’elevation strategy’ and an executional approach that positions Timex at the forefront amid seismic global market shifts.

An article on the hundredth anniversary of Timex in a vintage copy of Europa Star

Europa Star: In the wake of the pandemic and the subsequent geopolitical and economic uncertainties, how has Timex Group’s trading performance been?

Tobias Reiss-Schmidt: Pre-Covid we were on a growth path. When the world stopped, it was obviously a very disruptive period for everyone. We were fortunate in that we have very longstanding and trusted relationships with both our vendors and customers, and we were all supporting each other. We made a strategic decision to not slow down, but to continue to invest in our brands and launch exciting new products throughout the pandemic. We even introduced some new brands such as adidas, Furla and Missoni. I believe our customers and consumers really appreciated this approach and we have seen a very strong recovery of our business and today we are well ahead of pre-pandemic levels.

Tobias Reiss-Schmidt, CEO of Timex Group

And how are you steering the Group in these changing times?

Change is constant and seems to be ever accelerating, and at Timex Group we are always working to anticipate what is next. Good planning, paired with a willingness to experiment and try new things is essential during these times. We always try to drive innovation and look to surprise and delight our consumers with new exciting designs. Brands that do that successfully will do well, even in a challenging economic environment.

We also have built an operational platform that allows us to quickly adjust to changes in the retail and consumer landscape, and in recent years we have been getting better in using data to accelerate learning and make more informed and faster decisions. [Notes: Timex has fully integrated capabilities across the globe to ensure control, innovation, and quality at every step. Its five regional hubs include movement production in France, research & development in Germany, watchmaking in Switzerland, as well as manufacturing in the Philippines and India.]

Our business is well diversified, which reduces the exposure to any single geography, channel and price segment. In recent years we have heavily invested in our executional capabilities across all offline and online channels. Today, to succeed, you must be a true expert in every channel you play in, as opposed to being an omni-channel generalist. There will always be segments of our business that are difficult, but in total we are still doing well.

Q Timex Reissue 38mm: The 1979 classic reborn, featuring original diver design, its woven stainless-steel bracelet, powered by a modern quartz movement.

You have been quoted as saying India is now Timex Group’s second largest market. Where do you see the real opportunities for the Group? Where do you perceive gaps in the market?

I don’t think there are any gaps or true white spaces in the watch market. In fact, I think our industry, across price segments, has really stepped up its game in recent years in response to challenges such as smartwatches or the large number of digitally native brands that at some point took a lot of share from the incumbents.

But yes, there are opportunities. The number one priority and biggest growth driver for Timex Group will always be making amazing watches and jewellery with rich storytelling, and building an emotional connection with consumers around the world. Right now, global consumer markets are challenging, but in the long term we are very optimistic. Research shows us again and again that the next generation of consumers loves analogue watches. They are materially more engaged with the category than older age cohorts.

We are very happy with the development of our Luxury Division, and we do see continued outsized growth opportunities in that segment. We have an amazing portfolio of luxury brands such as Versace, Ferragamo and Philipp Plein that are competing in a higher price segment which is a lot less busy than the traditional fashion watch segment. We are also very excited about the elevation strategy of the Guess brand. Our Guess watch designs have been going from strength to strength for multiple seasons in a row.

Finally, we are seeing an ever-growing watch enthusiast segment. These are consumers with a true passion for watches who have a great interest in the brand stories and how the watches are made. We are a true watchmaker with a 170-year history in horology, and the Timex brand has a large and growing fan base in this segment.

“Research shows us again and again that the next generation of consumers loves analogue watches. They are materially more engaged with the category than older age cohorts.”

Versace was the first licensing deal that launched Timex Group’s Luxury Division in 2004 to exclusively manufacture and distribute its Swiss-made timepieces. The Italian fashion house remains the Division’s flagship brand, with a ten-year renewal agreement signed in 2022.

With mechanical watches currently making up 10-percent of the Timex brand’s men’s line-up, is America’s fashion watch giant also boosting the watch enthusiast segment?

Clearly, with its exceptional value for money, Timex is a great entry into watch collecting, and we like to think that we have a role in the growth we observe in the watch enthusiast segment. Many Timex watches are much more than just a timepiece. Key franchises of ours such as Marlin, Q Timex or Expedition North have a long history and make for great conversation pieces. Not to mention our Reissues and Collabs, with which we reach new consumers and hopefully help create a new generation of collectors.

You are entering the higher-end market with the Giorgio Galli line, which debuted in 2019 and just released the GGS2. As the only Timex product produced at the Lugano Atelier in Switzerland today, what is the brand strategy behind these top-of-the-line automatic watches?

Giorgio Galli is a distinguished figure with an impressive career spanning over 30 years in the watch industry. He oversees design for many of the Timex Group brands, but when asked what his favourite brand is, he will tell you, Timex. It was Giorgio’s idea to bring his vision of Timex to life, without compromise and the need to hit a certain price point or fit-in with the seasonal strategy. This is why we called the first iteration of this line “The most Timex Timex ever made”.

The timeless design with its thoughtful simplicity, the innovative case and attachment construction, and the use of top-of-the-line materials offered at incredible value and executed with great attention to detail is what the Timex brand is all about. Sharing our passion for watchmaking by making great timepieces that are accessible to many is the very promise our company was founded upon, and the Giorgio Galli line tells this story better than any other of our collections.

Giorgio Galli, the Design Director for Timex Group since 2013 and a member of the Executive Leadership team, entered the watch industry in the 1990s with Swatch Lab. He has also worked extensively with notable companies like Movado Group, Seiko, and Citizen.

It sounds like a branding manoeuvre to elevate your horological credentials and “step up the game”, to quote your earlier comment. Is a spin-off into a standalone brand on the cards?

I’m sure Giorgio will be happy to hear this question. We have not thought about it that way, as the work of Giorgio is inspired by what the Timex brand is all about and what it means to him. But it might be worth considering.

The USA was the top country for Swiss watch exports in 2022 (and 2023, so far). Being the most significant single-country market for Swiss watches, do you think American consumers are becoming more discerning in their watch preferences?

That has been the case (although post-Covid, we are seeing a reduction across Asia) for years, driven by wealthy American consumers who consider Swiss watches as a status symbol and an investment. I think globally the interest in watches is increasing, and the formerly niche segment of true watch enthusiasts is experiencing solid growth. This is a trend we observe in many markets across the globe, and very evident in in markets with a lot of buying power such as the US.

Now, Swiss watches are more and more becoming a pop culture trend that is also driving sales in the US. Celebrities like John Mayer, Jay-Z, Ed Sheeran, David Beckham, and Rihanna all have a passion for watches and are frequently showing off their timepieces on their wrists and in social media. This fuels the interest in watches and is one of the reasons why the younger generation of consumers is highly engaged with this category.

The Marlin Chronograph Tachymeter is the first quartz-powered chronograph model in the mid-century Marlin line, featuring a tachymeter index on a dial that evokes the look of a vintage dashboard.

Besides the Giorgio Galli line, 2019 also marked the launch of the American Documents series. After establishing a domestic supply network and assembly site, what happened to the initiative to bring watch manufacturing back to the US?

American Documents was a true passion project of ours. As a company that has been for so long at the forefront of American watchmaking, we wanted to explore the possibility of bringing it back at scale. And you are right, we had to build the supply network from scratch. Our engineers and watchmakers worked with eleven different vendors – who made, for example, parts for dentist tools or parachute buckles – and taught them how to make a case, a crown, or the hands from scratch. It took almost two years before we were satisfied with the quality.

However, making watches is not easy, and definitely much more complex than other categories that have started to make a comeback in US manufacturing such as footwear or apparel. With watches, the devil lies in the detail, and to achieve great finishing takes years and years of training.

Once we went to market, we learned that while consumers appreciate the concept of American-made products, and that is also true for watches, few watch aficionados are willing to compromise on the quality and value-for-money they are used to for the idea of American-made. I don’t think this was our last attempt at making watches in the US, but I’m not sure that this will ever happen at relevant scale. Right now, I would think American watchmaking works as a niche, but not at a commercial scale.

“While consumers appreciate the concept of American-made products, and that is also true for watches, few watch aficionados are willing to compromise on the quality and value-for-money they are used to for the idea of American-made.”

After upholding its legacy while making significant strides in design and manufacturing, retail and distribution, Swiss-made watches, and even rebooting American watchmaking, where does Timex go next?

Timex is a true watchmaker that in 2024 will celebrate its 170th anniversary. It’s not only a watch brand, but a true American icon. In the US, when you tell somebody that you work for Timex, they will more often than not tell some story about their first Timex or a family heirloom. It’s such an important part of culture.

And Timex has always played an important role in horology with countless stories and firsts such as flying to the moon with NASA, the first Smart Watch with Microsoft, or the first Sports Watch with Timex Ironman. To this day we make our very own movements to support our legendary Indiglo functionality.

With its incredible heritage and authenticity Timex enjoys great appreciation among watch enthusiasts, while also being able to reach a larger audience with its unmatched value proposition and timeless designs. This makes Timex truly unique in the watch industry.

Timex will continue to innovate... we have a great passion for what we do, and we are working on a number of exciting projects. Stay tuned.

“In the US, when you tell somebody that you work for Timex, they will more often than not tell some story about their first Timex or a family heirloom. It’s such an important part of culture.”