The two main manufacturers were on the verge of bankruptcy when Swiss banks commissioned a report from Hayek's consultancy.
Hayek maintained the venerable firms could compete with digital
watches made in the Far East by making less expensive products and charging a premium for top-of-the-range timepieces that were "Made in Switzerland."
The companies merged to form SMH, in which Hayek took a controlling interest. It was renamed the Swatch Group in 1998. "A watch is something people carry on their bare skin, sometimes 24 hours a day," Hayek once told the Sunday Times. "We have to convince every individual that this particular watch fits his or her personal style and lifestyle to the best."
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