Why swiss watchmakers have such good reputation if in the past it took British watchmakers to get enough precision to calculate longitude and nowadays Japanese companies are the ones doing the best digital watches?

Is it just vanity brands? or are they really good?

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Swiss is mostly overpriced vanity brands, sadly. There is a company or two that produces movements sold for other watch brands, but for a good watch for small money just buy a Timex.

If you want a very tough military endurance watch check out LÜMTEC.

If you want a pretty dress watch for reasonable money, look for AV8.