Swatch Group and US jewelery and silverware company Tiffany & Co announced a strategic alliance for the development, production and worldwide distribution of Tiffany brand watches.
The Swiss watch maker will incorporate a new watch-making company that will be authorized to use Tiffany's trademark and operate under the Tiffany name. The new entity will be wholly owned by the Swatch Group but Tiffany will share in its profit and have one seat on its five-member board.
rnUnder the agreement, Swatch will produce existing Tiffany watch designs and add new ones. It will also have the right to establish Tiffany & Co watch stores in certain markets outside the United States. These stores could also sell some Tiffany jewelry, the companies have said.
rnThe initial term of the arrangement is for 20 years, with an option to extend it for another 10 years if certain conditions are met.
rnThe picture is of curtain made entirely of Swatch watches.