The Rise of Japanese Watches (& How the Swiss Lost)

The video explores the history of Japanese watchmaking, starting with the influence and dominance of Swiss and American watch industries in the late 19th century. It highlights how Japan began importing Western clocks and watches as part of its modernization, leading to the establishment of its own clock manufacturing industry. Pioneers like Kintaro Hattori played crucial roles by establishing factories and acquiring watch components from Switzerland to build Japanese watches, despite initial challenges competing in quality and cost against Western imports. Government policies like high tariffs helped protect and grow the domestic industry.

By the early 20th century, the Japanese watch industry began showing significant growth, driven by local production and export strategies. With government support through tariffs, firms like Hattori's Seiko captured significant market share. The growth was marked by learning and adapting Swiss watchmaking techniques, while also importing watch movements to assemble and refine locally. The development and expansion of companies like Citizen further marked Japan's ascension in the watch market, directly challenging Swiss dominance as the country aimed for self-reliance and international export capabilities.

The Swiss watch industry's complacency and adherence to mechanical tradition faced disruption with the advent of quartz technology, primarily led by Japanese companies such as Seiko. By reducing reliance on precision artisanal skills and leveraging semiconductor advancements, Seiko and other Japanese firms pioneered the quartz watch revolution, which offered higher accuracy and lower production costs. This technological shift coincided with global market changes post-World War II, highlighting Japan's ability to innovate and effectively capture substantial market share, particularly in the United States.