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The biggest watchmaker in the world Swatch are looking into aquiring watch component makers in order to help them reach their sales targets of over 10 billion Swiss francs within the next 4 years. Swatch Group, based in Switzerland and the makers of brands like Omega and Breguet could spend up to 300 million Swiss francs to increase production and another 150 million Swiss francs to improve distribution said Swatch Chief Executive Office Nick Hayek and he added that the company can easily finance this growth with its huge cash reserves. By the end of the year 2010, Swatch Groups cash reserves had increased to over 1.83 billion Swiss francs on the back of a 42% rise in profits for the same year. These figures were higher than estimated and were mainly due to increased sales across Asia and because of demand for luxury watches in places like Hong Kong and China and the Middle East. This comes as the Swiss franc rose substantially against the Euro and the US Dollar in 2010 which squeezed profit margins on exports and despite many industry analysts expecting Swiss watch companies to raise their prices this year Swatch Group said that the outlook for 2011 was 'positive despite the unfavorable currency constellation at present'

The Tourbillon Boutique is a chain of retail stores operated by the Swatch Group that offers its most exclusive watch brands (and Swatch). While most of the shops are located in Switzerland, the US is about to see its second Tourbillon Boutique store, due to open in New York City sometime in May, located in the Financial District on Wall St. Recently, Swatch owned Omega opened up its flagship store on 5th Avenue, and this second new opening indicates a distinct focus on the US market for the Swatch Group watch brands. Until now, the only Tourbillon store in the US was located in Costa Mesa, just south of Los Angeles. The purpose of the store is to house the most luxurious brands and timepieces that the Swatch Group offers. This includes Breguet, Jaquet Droz, Blancpain, Glashutte Original, Leon Hatot, Omega, and Swatch (though I am not sure how the Swatch branded watches fit in as they are mainstream as opposed to luxury watches for the most part). The Tourbillon Boutique stores are not limited to watches with the expensive and complex tourbillon complications, but any of the firm's best timepiece offerings. Questions arise as to why the Swatch Group is currently expanding during difficult economic times. My guess is that the US market has more promise in terms of expansion than Europe, while at the same time the Swatch Group is investing in the future when the economy will eventually bounce back. Lower real estate prices and the availability of labor makes it an enticing environment for market positioning once the demand for fine timepieces edges its way back up, once again. Ariel Adams publishes the popular watch review site aBlogtoRead.com.