Why Outsourced Movements Can be Better Than In-House

The dichotomy between in-house and third-party movements is like many binaries, an oversimplification of a complex situation. But here’s why this detail shouldn’t really influence your watch purchase

The greatest trick the Swiss watch industry ever pulled was convincing an entire generation that the 'in-house' movement was superior to a third-party option. Before we find out why this is, we need to look at why 'in-house' became so significant, especially considering that for most of the history of the watch, it has been standard practice to buy from an external movement maker rather than do it yourself. This shift began in the late 90s and early 2000s when the watch industry underwent significant consolidation. The Swatch Group, Richemont and LVMH emerged as the powerhouse conglomerates of the luxury watch world. In addition to the big names we're all familiar with, these groups were acquiring vital, if less well-known companies; parts suppliers, movement makers and the like.

This restructuring was destabilizing the long-established supply chains of the Swiss industry, and nowhere was that more notable than ETA, the Swatch-owned movement maker that was the product of a series of mergers in the 1980s is the dominant supplier of ready-made ebauches that were proven and reliable. Against this backdrop of increasing corporate competition, there was anxiety and uncertainty about the ongoing availability of ETA and other third-party movements, which led many brands down the path of developing their own calibers, which would be free from the vagaries of external supply and demand.

In addition, the concept of in-house became a very important marketing tool, a point of difference for brands, and a way to communicate a sense of quality, prestige and authenticity. All this aside, are in-house calibers superior to mass-produced, third-party options?

Are In-house Movements Better?

The short answer is; sometimes. For larger brands with deep pockets, the investment required to bring even a simple time and date caliber to market can pay off. Rolex, Omega and Breitling are great examples of high volume brands that have worked hard and invested in their own calibers. Not only do these proprietary mechanisms allow them to build a modern caliber that suits their needs exactly, it also (and perhaps more importantly) gives them full control over their supply chain.

These are the very real upsides of an in-house movement, but there are other, less concrete benefits. For many, in-house calibers are seen as markers of authenticity, prestigious value-adds that set the watches they power apart from their ebauche-powered competitors and go a long way to justifying a premium price tag. Take Panerai, for example. The brand rose to fame in the late 90s primarily on the back of manually wound Unitas workhorse calibers. Robust, no-fuss movements that were a perfect fit for the up-and-coming brand. But as Panerai scaled-up production, the premium they were placing on what was essentially a very simple movement started to raise eyebrows. So, in 2005 the brand debuted its first in-house caliber, the P.2002, a big 8-day manual winder that offered a clear value add over the outsourced mechanisms and conferred the coveted status of 'manufacture' on the brand. Panerai isn't an outlier here either; their story will be familiar to the majority of mainstream luxury watch brands.

When Do Outsourced Calibers Work? 

While a movement made just for you has clear benefits from both mechanical and marketing perspectives, the reality is that it's not the right choice for every brand. Conservatively it takes at least three years and a million dollars to get a simple in house caliber ready for the market. And for young or smaller brands, that sort of investment or runway just isn't possible or practical.

Far better then, to buy a base caliber from a company like ETA, Sellita Works or Seiko, or, if you're looking for something a little higher concept, try Schwarz-Etienne or La Joux-Perret. These established platforms are capable, proven and immediately alleviate significant uncertainty and costs when it comes to aftermarket servicing and repairs.

More importantly, outsourcing the fundamentals of timekeeping allows smaller brands to invest time and energy into what makes them special. Artisanal dials, ingenious modular complications and on-point design; far from leading to homogeneity in watches, the safety net provided by third-party ebauches allows creativity to shine, as these brands demonstrate. 

Konstantin Chaykin's Whimsical Wristmons

In 2018, Russian watchmaker Konstantin Chaykin won the Audacity Prize at the prestigious Grand Prix d'Horlogerie de Geneve for his Pennyworth-inspired 'Clown' watch. With a moon phase display for the mouth, and an unconventional regulator layout where the hours and minutes resemble eyes, Clown was one installment in his phenomenally popular 'Wristmons' collection, a journey which started with the Joker and has proved surprisingly versatile, with Dracula, Santa, animals of the zodiac and even the loveably irritating minions being released in watch form.

The Clown, The Joker and other characters in the Wristmons world were given their distinct face thanks to a module designed by Chaykin, fitted on top of a base 2824 caliber from ETA. 

The Wristmons are not about high chronometric precision, they're about fun design and a clever implementation of complication, and for these purposes the ETA ebauche provides the perfect base for Chaykin's creativity. 

Hajime Asaoka And The Accessible Independent

Japanese watchmaker Hajime Asaoka is undoubtedly talented. The self-taught watchmaker has made his own calibers like the time-only Tsunami with its oversized balance wheel, or the starkly impressive project T tourbillon that secures the cage with ball-bearings.

While these watches are impressive works of passion-driven artisanal horology, they're not what Asaoka is predominantly famous for today. That would be his diffusion line, Kurono Tokyo. By the very nature of their production, Hajime Asaoka's eponymous watches would be highly limited in production and equally high in price. This can be a frustrating position for people who want to experience the vision of the watchmaker, but cannot. Kurono Tokyo goes a long way to solving these issues. Powered by unassuming Miyota movements, the appeal of these timepieces, the design sensibility, the details of the case, the beauty and treatment of the dial, and of course, the achievable price. 

It turns out that this approach has been wildly successful for Asaoka. The pedestrian calibers haven't been questioned as the premise of the brand is quite clear. Rather Kurono Tokyo has had to deal with particularly modern problems around supply and allocation.

Richard Habring Elevating Valjoux

It's hard to have a conversation about the power and utility of third-party movements without discussing the Austrian watchmaker Richard Habring. Today Richard and his wife Maria are the people behind the critically acclaimed, award-winning Habring². But in the 90s, Richard Habring worked at IWC as a watch designer, where he democratized one of the most fiddly of watch complications; the rattrapante, or split-second chronograph. At IWC, Habring took the industry's most ubiquitous automatic chronograph, the Valjoux 7750, and through clever and economical engineering, converted it into a split-second chronograph, known in Schaffhausen as the Doppelchronograph. Habring, once the IWC patent expired, has continued to develop his design under his own name. 

The dichotomy between in-house and outsourced is, like many binaries, an oversimplification of a complex situation. But the reliable supply of established, quality movements is vital to fostering creativity in watchmaking. Humble ETA or Valjoux calibers underpin the works of some of the greatest watchmakers working today.