CITIZEN watch and Fossil Group have announcedΒ that the two companies have entered into a global strategic technology licensing partnership designed to expand the worldwide reach and scale of hybrid smartwatches. The partnership leverages CITIZENβs globally-respected watch movement expertise while providing CITIZEN access to Fossil Groupβs hybrid smartwatch technology.
Specifically, as part of the agreement:
- CITIZEN will manufacture hybrid smartwatch movements incorporating Fossil Groupβs technology.
- CITIZEN will sell hybrid smartwatch movements and complete watches to the broader watch industry.
- CITIZEN and Fossil Group will collaborate in bringing future innovation to the smartwatch category.
Since 2016, the growing hybrid smartwatch category has been defined by Fossil Group and its portfolio of watch brands as timepieces that retain the classic aesthetic of analog watches, but also offer discreet notification and tracking capabilities without the need for charging. Hybrid smartwatches are projected to make up a significant percentage of smartwatch shipments by 2022, according to Juniper Research.
CITIZEN has worked in the technology category for many years, and in 2006, it introduced the worldβs first Bluetooth-enabled watch. In 2012, it revealed the first Bluetooth-enabled, solar powered watch, the Eco-Drive, which does not require the battery to be replaced. In 2016, Citizen expanded its distribution globally and added new SKUs to its portfolio. CITIZEN will launch the worldβs smallest and thinnest Eco-Drive Bluetooth watch in 2018. Citizen also has a dedicated analog watch which use solar powered hands.
βGiven the size and growth of the smartwatch market, CITIZEN is going seriously into the smartwatch market,β said Mr. Tokura, president and chief executive officer of CITIZEN. βIt is with strong determination that we trigger this partnership and enter this category. We, CITIZEN and Fossil Group, will maximize our combined strengths to become leading companies in the smartwatch category.β
βOur partnership with CITIZEN, the worldβs largest watch and movement manufacturer, will enable us to broaden and accelerate the awareness and adoption of hybrid smartwatches,β said Kosta Kartsotis, chief executive officer at Fossil Group. βThis transaction is the result of our technology investments and demonstrates the capabilities weβve developed in the wearables category and the larger watch industry. Together with CITIZEN, weβll leverage the technology to drive scale in the hybrid smartwatch market that will bring innovative and compelling new products to the watch market and improve our product costs.β