“I think we’re alone now.  There doesn’t seem to be anyone around.”

When it comes to watches, that’s what the Tiffany executives will be singing for the foreseeable future.

Back in 2007, luxury jeweler Tiffany entered into a joint agreement with Swatch Group.  According to the Swatch Group website, the agreement was a “strategic alliance to further the development, production and worldwide distribution of Tiffany & Co. brand watches. Under the agreement, the new watch company, known as Tiffany Watch Co. Ltd and wholly owned by Swatch Group, will design and manufacture in Switzerland a complete range of high-end luxury watches.”

In other words, Swatch makes watches for Tiffany.  Swatch pays Tiffany royalties for the use of the brand.  Unfortunately, the relationship appears to be over.  According to the Wall Street Journal, “The world’s largest watchmaker said the long-term partnership was being terminated following Tiffany & Co.’s systematic efforts to block and delay development of the business.”

Of course, Tiffany had a few parting shots: “Despite assurances to contrary made in 2007, Swatch has failed to provide appropriate distribution for Tiffany & Co. brand watches, with the result that our current business forecasts do not include any meaningful increase in watch sales or royalty income.”

The relationship was set to last 20 years with an option for another 10.

A couple of interesting questions to ask:

1. Will any of the Swatch-made Tiffany watches become collectors’ items?

2. Are there good examples of jewelers successfully entering the watch world?  There are probably a few success stories, however, my feeling is that watches tend to be a bit more male-centric, making it difficult for jewelers to make a huge splash.

Tiffany is now single.  It will be interesting to see if any new kids on the watch block will be interested in courting her.