If you lack familiarity with the current state of the Swiss watch industry in 2016, then we can inform you that Swiss companies brought the sector into a negative financial spiral. One might assume Swiss watch manufacturers failed to remember the last time they ignored reality. They went bankrupt beginning in 1974 when Japan emerged as the leading global watch producer. Now, China has become the chief competitor.
China sold 98% of the world's watches and related components in 2016, yet only reaped 46% of the income. China's largest customer, Switzerland, sold 2% of all timepieces and realized 54% of the income. Metaphorically, the Swiss stood on a tree branch while someone else cut off the limb at the trunk. Selling only 2% of industry product does not leave much room for contraction.
With 98% of sales, Chinese companies could contract, and their industry would not fail. In 1974, the Japanese did not buy any of the 100s of bankrupt Swiss watchmakers. In 2015, Beijing and Hong Kong purchased several Swiss firms such as Corum, Eterna, Rotary, Dreyfuss & Co., and J&T Windmills and others. Citations Below
Focus Switches to East Asia
On April 8, 2016, tariff regulations in China went into effect with the price of Swiss watches doubling. The government passed the tax to encourage the purchase of products made in China. The policy worked.
A focus on sales of Chinese made watches, as opposed to Swiss, began before the tariff went into effect.
In September 2016, The Business Insiders wrote:
Swiss watch exports have taken a battering in Hong Kong and mainland China since the government cracked down on gift-giving in a drive to reduce corruption.
New research from UBS shows that the luxury industry has come a long way from the time where it enjoyed double-digit annual growth figures.
Swiss growth in exports to China went from 60% in 2012 to a negative 50% in 2016.
Comparing Chinese Watches to Each Other
Product comparisons can produce knee jerk comments from readers like those after a Presidential debate. In this comparison, no one will ask for a vote. I start with a look at the craftsmanship involved in the various parts such as the dials, hands, case, glass and then the movement.
In my opinion, the Swiss have a small production advantage over many good Chinese watches: Perception. When a company like the Swatch Group purchases 50% of its parts from East Asia, one has to wonder what the benefit of a French or German name.
Let's Look at Two Watches Made in the People's Republic
In this post, I compare a Parnis copy of a Sea-Gull 819.317 to a custom made Nakzen. You can purchase the Parnis for about $100, the Sea-Gull for $229 and the Nakzen for $125. You can find examples of the watches on eBay.
Nakzen |
Seagull |
On eBay, Amazon, and DHGate, sellers price Nakzen and Parnis comparably. As a gauge for both watches, a Sea-Gull with an ST2505 movement runs about twice as much the others.
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About Parnis
Parnis is a watch brand owned, manufactured and distributed by Xiao Jian Hong. His companies produce and distribute a line of better Chinese quality men's watches from his factory in Guangzhou, China. Xiao Jian Hong (Avi) founded Parnis around 2005-06. He is the Parnis registered trademark owner in the EU, Hong Kong, Australia and in the International pool.
The initial start-up of Parnis is Suntime Watch Co. Ltd. Suntime's headquarters in Guangzhou Guangdong 51000 China. Pa Jie, a separately registered trading company, handles large business accounts and governs the manufacturing facilities. Xiao owns the factory, which assembles parts from various suppliers. For example, they do not make cases, bands, movements, hands or faces.
Technical Comparison
| Brand | Parnis | Nakzen |
| Movement | ST-2505 | 8247 |
| Jewels | 38 | 21 |
| Configuration | Date/Power Reserve | 24 hr |
| Flywheel (Open Heart) | 6 o'clock | 7 o'clock |
| Case Material | 316L Marine | 316L Surgical |
| Case Diameter | 43 | 42 |
| Water Resistant | 3 ATM | 5 ATM |
| Watch Band (Leather) | Flat | Padded |
| Clasp | Tang | Dual Butterfly |
| Warranty | Not Stated | 1 year |
| Strap Width (mm) | 22 | 20 |
| Signed | Dial | 4 points |
| Crystal | Mineral | Sapphire |
About Nakzen
Shenzhen-Meigeer Watch Company Ltd. Guangdong manufactured watches under the Megir brand. These were high-quality watches with mechanical movements. They marketed their watches in China through brick and mortar jewelry and department stores. An experiment using Miyota mechanical movements gave Meigeer a significant bump in unit sales and revenue.
Nakzen is a company and a brand registered in Japan. Nakzen markets their watches through Amazon, DHGate, Aliexpress, and other on-line stores as well as Megir's retail distributors in China. Nakzen appears as the successor brand in China to Megir.
You can find the Nakzen watch site under Meigeerwatch.com. The website shows up as Shenzhen Meigeer Watch. Meigeer claims to have started their business in 1998. However, they registered their trademark on January 10, 2014. Use of the name or first use occurred on January 10, 2013.
Office: 11 Floor Building B, Baogang Center, Baoyuan Road, Gushu Village, Xixiang Town, Baoan District, Shenzhen China
Factory: No 98, Nanchang Road, Gushu Village, Xixiang Town, Baoan District, Shenzhen China
Opinion & Conclusion
Aside from the comparison made here, I examined 20 Parnis and 11 Nakzen models. I like both watches and will sell both brands. Differences exist, and my comments follow:Cases
- Advantage Nakzen
Nakzen makes their cases, while Parnis buys cases from third parties. The Nakzen cases have a superior detailed finish. Parnis claims their third party manufacturers provide 316L marine grade stainless steel. In my opinion, Parnis uses 312-grade steel, while Nakzen uses surgical (marine) grade steel.
Crystals
- Advantage Nakzen
Nakzen uses sapphire crystals, whereas Parnis uses hardened mineral glass. Sapphire provide scratch-proof surfaces, while mineral-glass provides a shatter-proof surface. Aside from the composition, Nakzen finishes their crystals in a superior finish. Scratches occur at a greater frequency that those that shatter.
Bands and Clasps
- Advantage Nakzen
Nakzen ships a superior strap or band. Parnis uses a single strip leather band with a tang buckle. Nakzen includes a high-quality dual strip padded band with a double butterfly deployment clasp. Nakzen also forms their bands to fit one's wrist comfortably.
Movements
- No Advantage
To function competitively, Parnis buys refurbished movements. Seagull bases its ST-25 premium line on Swiss movements, whose patents expired between 1974 -1992. The watch industry judges Seagull movements on par with the better Swiss products. Unfortunately, Parnis does not employ watchmakers to clean, oil and adjustment the movements. Parnis does add quality-control to their manufacturing process.
Nakzen and Parnis use third party movements in their watches. Both use Miyota and Seagull brands. However, Parnis only uses Miyota quartz movements. I evaluated their favored mechanical calibers. I prefer Seagull, but only if the buyer has the movement serviced.
Price
- No advantage
Nakzen and Parnis price their watches similarly. Configurations differ, but both companies make excellent timepieces. I perform my service, so I don't experience costs associated with keeping movements functioning optimally.
If you wish to compare Nakzen or Parnis to similar Swiss models, a price advantage rests with the Chinese in the area of an 80% discount. I will make that argument in another post. For now, you'll just need to take my work on it.
Citations:
Swiss Watch Industry Woes Continue
This May Be the End of the Swiss Watch as We Know It
Hard Times for Luxury Watch Dealers
Watch Industry Statistics 2016
JCK
Miyota 8247
Center hour/ minute/ small second
Pendulum, automatic winding (no hacking)
Technical parameters:
Movement diameter: φ25.9 mm; movement thickness: H5.67mm;
Frequency: 21,600 times / hour; drill number: 38 drill.
Seagull 2505
Center hour / minute / second pointer instructions, 9.5 points to fly back to the calendar, 2.5 point indication, 6 point flywheel (small seconds) / naked
Pendulum, automatic winding, stop seconds (hacking)
Technical parameters:
Movement diameter: φ30.4mm; movement thickness: H7.4mm;
Frequency: 21,600 times / hour; drill number: 38 drill.