The growing popularity of high-end timepieces is fueling new sponsorship activity for luxury watch brands, while a slow market for inexpensive models has limited deals from most mass marketers. New deals from the upper bracket range from The Swatch Group Ltd.'s first-time partnership with the Los Angeles Philharmonic on behalf of its Breguet line, to Rolex Watch U.S.A., Inc.'s three-year deal with the PGA Tour. For the most part, watchmakers focus on one or two types of properties that support their brand positioning and provide access to niche audiences. For example, Swatch's Tissot brand is using motorsports to build its presence in the U.S., Vestal Watch Co. focuses on alternative bands and action sports, while Movado Group, Inc. supports arts-related properties on behalf of its eponymous brand. Even properties not traditionally associated with watch sponsorship have received interest from timepiece manufacturers. Case in point: Swiss watch company Parmigiani Fleurier S.A. this year aligned with the Albuquerque Int'l Balloon Fiesta presented by Wells Fargo. Apart from Timex Corp., sponsorship activity for watches priced below $100 has hit a lull, as younger consumers' increasing reliance on their mobile phones, MP3 players and other electronic devices to display the time has pressured sales of lower-end watches.

The Swatch Group (U.S.) Inc.
1200 Harbor Blvd.
Weehawken, NJ 07086

Joseph Panetta, vice president of communication
201/271-1400

Targets / Objectives / Key Activations: U.S. subsidiary of Swiss giant The Swatch Group Ltd. uses sponsorship to engage and establish a dialogue with consumers. Focuses activity on behalf of four brands, each of which aligns with a specific property type matching its brand positioning. Omega's USA Swimming deal supports brand's global TOP VI Olympic sponsorship. Brands activate ties with customer hospitality, PR campaigns and property-themed limited-edition watches. Contacts: Breguet: Jean-Marc Bories, general manager, Breguet U.S. Omega: Gregory Swift, general manager, Omega U.S. Tissot: Oliver Cosandier, U.S. brand manager. Rado: Bob Brennan, brand president.

Current Sponsorships: Breguet: Los Angeles Philharmonic. Omega: USA Swimming. Rado: Susan G. Komen for the Cure. Tissot: NASCAR.

Additional Comments: Tissot, which aligned with NASCAR in '06 to build its brand in the U.S., attributes the partnership to generating incremental sales. Brand has an endorsement deal with IndyCar Series driver Danica Patrick. Tissot last month hired Velocity Sports & Entertainment to manage its NASCAR sponsorship. Parent company transferred its ATP sponsorship from Rado to the Longines brand; Longines also sponsors the Australian Open, French Open and Shanghai Open.

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