If you want to start a watch company or sell your brand-name own watches, you need to do your homework beforehand. A thorough market study may disclose important information about your competition, customer behavior, and industry trends.
Between 2019 and 2024, the watch industry is predicted to increase at a compound annual growth rate of 9.9 percent.
The digital watch brand is popular among younger customers, with prominent watch brands such as Timex, G-Shock, and Casio dominating the market.
The rise of wearable technology is driving up demand for a smartwatch brand. However, luxury items continue to be viewed as a status signal, particularly among watch business people.
We’ll guide you through the stages to start a watch company even if you don’t know anything about the watch brand, throughout this article.
Overview of the Watch Industry
It is not an exaggeration to say that over 60% of people in the United States of America, both male and female, and a significant number of youngsters, own at least one wristwatch brand.
This demonstrates that there is a sizable demand for wristwatches; as a result, a slew of investors and ambitious entrepreneurs are setting up shop in the watch brand and clock manufacturing sector, with luxury wristwatch manufacturing being one of the most promising watch business prospects.
Wristwatch companies and clock manufacturing companies are recognized for producing many types of smart watches, clocks, and accessories.
According to IBISWorld market research, the Wristwatch and Clock Manufacturing industry is in a transition era. Following years of offshore and outsourcing, several industry players are considering moving production back to the United States to avoid rising Chinese pricing and the high overhead business expenses associated with manufacturing abroad.
According to the paper, reshoring would also result in a shorter period between manufacturing and supply, as well as improved control over manufacturing processes.
However, huge firms and certain specialized market players are replacing failing entrepreneurs that are no longer able to remain financially in this industry.
As a result, the real impact of reshoring remains unknown, although IBISWorld anticipates that the repercussions of reshoring will become increasingly apparent over the next five years.
If you look at the luxury watch brand and Clock Manufacturing industry over the last five years, you will observe that it has shrunk.
Import competition has been a key role in this industry’s decreasing performance, with many manufacturers turning from mass-producing wristwatches to obtaining them from low-cost Asian nations or third-party contractors.
So, Here Is How To Start A Watch Company :
- Step 1. Understanding the Industry
- Step 2. Create a Business Plan to start a watch company
- Step 3. Choose Your Own Watch Brand Type and Price Structure
- Step 4. Select a Name for Your Watch Company Or Own Watch Brand
- Step 5. Find Funding Sources for Your Watch Company and Open a Business Bank Account.
- Step 6. Locate Suppliers and Manufacturers
- Step 7. Form An Employee Team
- Step 8. Locate A Business Place
- Step 9. Start Creating Your Own Watches
- Step 10. Create a Website
- Step 11. Join Social Media
- Step 12. Create a Marketing Strategy For Your Own Watch Company
Step 1. Understanding the Industry
Some of the aspects that drive entrepreneurs to establish their watch company manufacturing include the fact that the industry is booming and the products may be marketed not only in your nation but all over the world.
The own watch brand and clock manufacturing sector is a successful one, and it welcomes any prospective entrepreneur to join in and set up shop.
You may begin on a small or large scale using a regular wristwatch business in the United States of America and in Asian nations where labor and raw materials are less expensive.
Many wristwatches and clockmakers have left the watch business, unable to maintain operations in a price-pressured climate. The remaining players have shifted their operations to focus on design and marketing processes rather than product production.
For example, the Clock and Watch business in China is expected to grow by 5.0 percent to $13.5 billion in 2018.
In the five years through 2018, the industry increased at a 5.5 percent yearly pace. The two major engines driving the industry’s expansion are China’s vast local market and rising overseas demand for watch brands.
Because the sector is heavily focused on exports, the majority of operators are concentrated in coastal locations like Guangdong, Fujian, Zhejiang, Shandong, and Tianjin. In 2018, exports are expected to account for 34.8 percent of industry income.
China produces more than 80% of the world’s own watches and clocks by volume, but just a modest portion by value.
Between 2019 and 2024, the watch brand industry is predicted to increase at a compound annual growth rate of 9.9 percent. Digital watches are popular among younger customers, with prominent watch brands such as Timex, G-Shock, and Casio dominating the market.
The rise of wearable technology is driving up demand for a smartwatch brands. However, luxury items continue to be viewed as a status symbol, particularly among watch business people.
Step 2. Create a Business Plan to start a watch company
If you want to understand how to start a watch company, you need to start with a clear watch business strategy. Describe the most significant features of your new firm, such as the business plan, goods, marketing plan, budget, and monthly goals.
A great watch business strategy will keep you on track with your objectives and focused on gaining clients. You can modify the strategy as you progress, but it should always serve as a guide to success.
Put everything together and build a business plan once you’ve settled on a watch company model and specialty. Begin with a market study, then identify your rivals before describing your firm, its goods, and what makes them unique.
Give a summary of the watch company ownership, including who is in charge of what. A pricing strategy, objectives, financial concerns, and legal business entity for beginning a watch company should all be included in your watch business plan.
Take into account your target audience, and watch the business model, and marketing plan. It’s also critical to estimate beginning costs as well as any ongoing business expenses, such as monthly rent, shipping fees, personnel pay, and utilities.
Make a list of potential suppliers and buy merchandise to sell. Everything should be included in your watch company strategy.
Create a list of ideas to help your watch company expand and profit. Even if you’re not a bespoke watch company, you may build personalized own watches on demand.
Many customers want their timepieces engraved with their initials, so you might provide this service as a selling feature to attract customers.
Another thing to think about is how you’ll create your distribution network, what dangers and hurdles you could encounter, and whether you’ll require outside finance while making a business plan.
Step 3. Choose Your Own Watch Brand Type and Price Structure
When starting an own watch company, the own watch brand style and price model are critical. They will help you locate your target consumer and create the tone for your brand.
If your business plan to offer high-end, pricey watches, you should conduct market research on the most popular luxury watch brands.
This will allow you to examine what they sell, how much they charge, their marketing approach, and who their suppliers are.
Determine what your target demographic and consumers would wear if you want to offer more cheap watches. Are you looking for minimal, clothing, or a sports watch brand?
You might begin by offering a variety of designs and pricing ranges to observe how your consumers react and what they prefer. Then you may tailor your offer to their specific requirements.
Here are some examples of various watch brand
- Mechanical watches, as opposed to battery-powered watches, employ clockwork movements to track time.
- Quartz Watches: These watches are powered by batteries.
- Digital watches, as opposed to traditional clock faces, show the time as decimal digits.
- Solar Timepieces: These quartz watches are powered by the sun.
- Dive Watches: These are waterproof watches.
- Luxury Watches: These watches are designed with style, longevity, and their own brand legacy in mind, and are frequently constructed of precious metals and/or gemstones. They are also frequently mechanical watches, which means that the movement is not battery driven, as is the case with Quartz watch brand movements.
- Smart Watches: These watches often feature a screen as the watch’s face and perform tasks similar to smartphones.
Step 4. Select a Name for Your Watch Company Or Own Watch Brand
The foremost step in beginning a watch company is deciding on a name.
This is a critical decision since your company name represents your own brand and will endure the life of your firm. Ideally, you should select a name that is both significant and memorable. Here are some suggestions for naming your own watch company:
Check to see whether the name is available. Check trademark databases and your state’s list of registered watch business names to discover whether your preferred name is available.
Check to see whether an appropriate domain name is available as well.
Maintain simplicity. The finest names are those that are simple to remember, pronounce, and spell.
Consider marketing. Create a name for your watch company that matches the intended brand and/or emphasis
Step 5. Find Funding Sources for Your Watch Company and Open a Business Bank Account.
There are various approaches to obtaining funding for your successful watch business, but it is critical to consider each one carefully because each selection may have long-term financial ramifications for you and your company.
Some new entrepreneurs may find themselves in a scenario where their successful watch business needs only a few hundred dollars to get started, but we felt it was vital to provide the ways below in case you have ideas along the line as a reason to open a watch business bank account.
Here are five funding possibilities for your watch company:
- Obtaining funds from relatives and family
- Bootstrapping through your own savings account
- Obtaining financing from other sources
- Getting a bank loan
- Obtaining funds from a hard money lender
Of course, there are many additional choices for funding your watch business, but these are just a few that spring to mind from which you can get funding if you have a business bank account.
It is also critical to emphasize the significance of decisions and to make just the option that you feel is the greatest match for your present scenario.
When deciding how much money to put into starting your own company, there is no right or wrong answer, and there may be some guidelines from below concerning what type of financing will indeed work best for somebody like yourself or other watch brands.
So take note before making a final decision as to which path will suit both yourself and your watch brand business best! We strongly advise you to consult with your accountant prior to making a final decision.
Step 6. Locate Suppliers and Manufacturers
Finding a producer for your watches is perhaps the most difficult aspect, but it will be worth all of the market research of other watch brands and the work you will put in to find the greatest one.
If you decide to design and manufacture your own timepieces, be certain that the factory, supplier, and manufacturer are authentic and have the necessary abilities, expertise, and licenses.
Remember that if you pick a manufacturer in China, you may not have been able to regulate the production process, quality, or labor conditions. If, on the other hand, you’re a watch reseller who doesn’t manufacture watches, you’ll need to discover reputable firms to acquire watches from.
Before you identify the perfect firm to work with, the vetting process might take months or even years. It may also be expensive, so be sure you’re prepared to put in the effort before launching a watch business.
Step 7. Form An Employee Team
Regardless of your watch business strategy or size, you will almost certainly want assistance in creating your company from the bottom up.
Aside from administrative duties, you’ll also need personnel to handle social media, your website, operations, and accountancy.
If you deal with a manufacturer, you’ll need someone to oversee this procedure and ensure that the result is flawless. If you decide to create your own timepieces, you’ll need a team of skilled craftspeople to help you realize your vision.
Avoid starting a business on your own since you will rapidly feel overwhelmed. Set away a considerable amount of money so that when the time comes to recruit someone, you’ll have enough money to pay several months’ wages and benefits.
Step 8. Locate A Business Place
The location of your shop is critical to your brand and the sort of audience you want to attract.
A physical store might be beneficial if you have a nice location and an existing client or audience base. However, if you’re just starting out, selling online can be a better option.
You won’t have to keep the merchandise, pay rent, or wait for customers to locate your business if you operate an online store.
If, on the other hand, you’re renting timepieces, having a physical location where consumers can browse and test several models before renting is preferable.
You may also manage an online business and a physical store at the same time, catering to two distinct groups of customers. It all comes down to your vision, money, and long-term strategy.
Step 9. Start Creating Your Own Watches
Producing your own wristwatch is certainly conceivable; but, depending on the style of watch you’re making, it might be fairly complex.
Because watches are tiny and their separate parts are temperamental, putting one together requires skill and finesse.
As a result, it’s advisable to learn from a specialist and take your time studying the art of watchmaking before selling any of your creations to clients.
The above-mentioned Learn Watchmaking course concentrates primarily on making watches yourself, so if you want to produce your own watch items, that’s an excellent place to start.
The biggest advantage of creating your own watches is that they will be unique to your brand, which is important to new watch brand wearers and collectors who respect workmanship. The main disadvantage is that learning how to create watches has a steep learning curve.
Step 10. Create a Website
Even if you don’t sell watches online, having a company website is a necessity in today’s business climate. Because this is the first place your clients will go for your brand, you must meet them where they are.
Your website should have high-quality product photographs, full product descriptions, an About Us page, contact information, and other critical information about your company.
If you sell watches online, start a blog where you’ll publish informative entries about how to wear watches with any fashion style, the differences in artistry and movement, and style and gift guides for men and women.
This will help you rank higher in search engines and will assist clients in finding the best watch brand for their budget and lifestyle.
Step 11. Join Social Media
Social media is among the most effective and cost-effective strategies to reach a large audience and create brand recognition.
Aside from social media accounts, robust marketing and advertising business plan will be required to assist your business development.
You should share valuable material with your audience so that they can engage with your brand.
Posting images of your items isn’t enough; you’ll also need to interact with your followers and respond to queries regarding your stuff according to market research. It’s very important for new business owners.
Step 12. Create a Marketing Strategy For Your Own Watch Company
The successful watch brand business is extremely competitive so you need to do market research.
Prepare to compete against DW, Cluse, MVMT, Paul Hewitt, and other significant competitors if you launch a tiny watch company.
You compete with chain stores, jewelry stores, and even supermarkets as a distributor or retailer. As a result, having a sound marketing strategy is critical.
There are several ways to advertise a watch company, ranging from the internet advertising and influencer marketing to local events and trade exhibits.
The idea is to demonstrate to customers how your brand adds value and what makes it unique. Make a tale about your company and how it all started and maintain customer relationship management.
Why Start a Watch Company?
People don’t purchase watches because they need them as personal assets. That is a nice thing.
People purchase watches because they want to show others that they are smart watches, stylish, fashionable, sporty, and/or informed and appreciative of high-quality items.
This suggests you’re offering a product to people with discretionary income who appreciate high-quality items, which is a profitable market to sell to.
This does not imply that your watches must be as expensive as Rolexes or that you must solely cater to a luxury market of consumers; it just means that your items must appeal to those who aspire to be that type of person.
This allows you a lot of leeway to create a dynamic brand, so if that appeals to you, starting a successful watch business is a wonderful idea.
Another fantastic reason to establish a successful watch brand company is if you have an interest in timepieces and a passion for their workmanship as a business owner.
Many successful watch brand businesses were formed by persons who had a personal interest in watches before starting their own brand, demonstrating that it is feasible to run a business powered by your passion.
Finally, the watch industry is profitable. According to Statista, revenue in the luxury watches business will exceed $23 million in 2020, with the market predicted to rise by 6.2 percent yearly.
If having the freedom to establish a luxury brand or having a passion for timepieces wasn’t enough, knowing that it’s a stable and expanding market should be.
Starting a watch company is a complicated enterprise since watches may be quite technical to create; yet, there are many various types of watches and suppliers available, so it’s surely doable no matter how you want to start a watch company.
Selling watches, on the other hand, has the potential to be incredibly profitable because clients value workmanship and brand legacy, thus developing a watch brand does have a lot to do about building a vibrant brand that tells a narrative.
Although the industry is saturated, there is still potential for more, and it is still a rising market. So, don’t get panic take the initiative, and start a watch company.