Shinola Watch Company is a luxury design brand that sells timepieces, leather goods, jewelry, and more. The Shinola brand dates back to 1877 when it was a shoe polish company in Rochester, New York. It operated for nearly 100 years before going out of business in 1960. Tom Kartsotis, the founder of Fossil Group, a multi-billion-dollar watch company, decided to create Shinola Watch Company in 2011 with investment group Bedrock Manufacturing. Kartsotis’s goal was to create a high-quality American watch brand that could compete with Swiss watchmakers at a lower price point. The company introduced its first watch in 2013, producing 2,500 watches and selling them for $550 each. The watches sold out in two weeks. Shinola was creating timepieces in a way that hadn’t been done in the United States since the 1960s.
The company’s watch and leather factory is located in Detroit, Michigan. Inside, artisans assemble Shinola’s timepieces and other products by hand. The company employs more than 500 people and is committed to delivering the highest quality products. Shinola creates opportunities for its employees with extensive training. Employees meticulously assemble watches by hand. The Shinola team assembles between 500 and 700 watches per day and cuts and sews up to 550 leather watch straps per day. From start to finish, each watch may touch the hands of more than 30 people.
A commitment to quality is at the core of Shinola Watch Company. For example, its watches and leather straps that are produced in-house are done so using labor-intensive methods and custom Italian machinery. For its other leather goods, Shinola partnered with hand-selected manufacturers to scale production. The watchmaker creates products that last and stands behind its craftsmanship with industry-leading guarantees. Shinola offers a limited lifetime warranty of its core watch styles and a best-in-class three-year-limited warranty on its Detrola Watch Collection.
Shinola has promoted itself as an American-made brand and a supporter of Detroit. Its watches are even labeled “Detroit.” However, the company’s American pride was called into question when the Federal Trade Commission (FTC) discovered that some of its watches were made almost entirely out of foreign parts. The FTC is charged with protecting consumers from deceptive advertising. In response, Shinola changed its labeling to read “built in Detroit” and “Swiss & imported parts.”
The company has also been criticized for using Detroit as a marketing tool and exploiting the city’s hardships to sell watches. Supporters of the company say this is not the case and highlight the fact that Shinola has supported the local economy by adding jobs and helping to make Detroit a cleaner and safer place. However, recently, the company laid off several employees and announced plans to outsource leather design and product development to keep costs down, remain competitive in the watch industry, and clear a path to profitable growth.
Shinola’s customers are its top supporters. Notable customers include former Michigan governor Rick Snyder, Oscar-winning director Peter Farrelly, and former presidents Bill Clinton and Barack Obama. Today, Shinola continues to match its high-quality timepieces along with a variety of other luxury goods. The company operates boutiques in 14 cities in the United States, Canada, and the United Kingdom along with its own boutique hotel in downtown Detroit.

 Questions
1. How does Shinola Watch Company back up its commitment to quality?
2. What measures has Shinola taken to keep its prices lower than Swiss competitors?
3. Why do you think Shinola advertises itself as being an American brand?