During the years of Gorbachov's perestroika the former USSR's watch industry, which had supplied a country with a population of 260 million and exported a considerable part of its products, seemed to be destroyed. However, today, several Russian watch manufactures are eager to enter the world market. What are their needs and what can they offer to foreign partners?

At the best of times, i.e. at the end of the 80s – beginning of the 90s, fifteen Soviet watch manufactures produced over 60 million watches and movements, one third of which went for export. In the 90s the Russian watch industry survived a crisis the scale of which is comparable to that of the quartz crisis of the 70s in Switzerland. The consequences of the crisis turned out to be dramatic for the whole Russian watch industry. By 1998 the output had dropped more than ten times, at some Russian watch manufactures it had decreased by 95%. But today, after the devaluation of the Russian rouble in 1998 and several years of hard work, the Russian watch industry is beginning to revive. Those watch manufactures that managed to survive are facing many problems such as deterioration of equipment, obsolescence of most calibres and lack of skilled personnel.

Despite difficult times, last year Russian watch manufactures produced 3.7 million watches and 2.3 million clocks, approximately the same amount of watches was produced in a former republic of the USSR, Belorussia. The figures are rather impressive as they reflect not the number of assembled movements but the number of mechanical movements actually produced. It is worth remembering that each Russian watch manufacture produces and assembles movements, components of movements, as well as cases, dials, hands, etc.

Illustrative of this is the example of the leading Russian watch manufacture Vostok, famous for its military watches Komandirskie. Founded in 1942, at the best of times Vostok produced about 3 million mechanical watches a year. Though last year only 900,000 watches were produced, the figure can be easily doubled during a year as Vostok has a spacious production area, modernized equipment and skilled personnel. During the last years over 5 million dollars were invested in re-equipping Vostok. On its own the manufacture produces all the necessary components, i.e. balance-springs, mainsprings, balances, stone jewels, etc. As Vostok is the biggest factory in the town, skilled specialists are in abundance. That's why Vostok's own calibres, as well as any movements or components produced by Vostok according to a customer's specifications, are inexpensive and of acceptable quality.

Vostok has already experienced joint ventures with foreign companies. It has been successfully cooperating with Siemens for five years, producing tachographs and car panel devices.

Like other Russian manufactures, naturally, Vostok has some difficulties. Its old-fashioned collections are no longer in demand on the home market. Lack of designers hampers their renovation. These two factors are encouraging Vostok to actively search for both new partners and markets.

Today, cooperation between Russian watch manufactures and European watch companies promises to be mutually beneficial. Familiarity with modern production and marketing techniques, experience of leading companies in the world watch market, opening up new markets can foster technological development of Russian watch manufactures. At the same time Russia has certain traditions in watchmaking. Production facilities together with inexpensive qualified personnel can attract European watch companies striving to increase the competitiveness of their products.