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Practical Guide to Creating Your Own Micro Watch Brand

Are you currently planning to create your own watch brand as you read this blog post? However, are you feeling overwhelmed when you think about the multitude of watch brands in the market? Not sure how to go about implementing your brand plan? I hope that today, this brand-building guide you're reading can help you.

 

There's an undeniable fact that the watch industry is highly competitive, but with the right business strategies, you too can successfully establish your own popular watch brand. Currently, MVMT sells over 2 million watches in more than 160 countries/regions worldwide, with annual revenues exceeding a hundred million dollars and a peak annual growth rate of 400%. In 2018, the Movado Group acquired the brand for $300 million, and in that same year, MVMT generated a net income of $170 million.

 

Find out more about the case study of MVMT's business development, and I believe that after reading it, you'll be as inspired as I am! So, learning from your competitors is a good idea—finding out what makes them successful instead of feeling discouraged!

 

According to statistics, the global wristwatch market is expected to grow from $62.8 billion in 2021 to $78.2 billion by 2026, with a compound annual growth rate of 4.8% from 2021 to 2026. The market can be segmented into the low-end, mid-range, and high-end markets based on the price range of watches.

 

With globalization, the continuous development of e-commerce, and the improvement of global logistics systems, the market is now more conducive to the growth and development of micro watch brands, rather than being dominated by top luxury brands. Why do I say this?

 

Innovation and Uniqueness: In the watch market, innovation and uniqueness are crucial competitive advantages. Microbrands are often more agile and can more easily introduce watches with unique designs, features, or styles, attracting consumers looking for something different from mainstream brands.

 

Personalized Demand: Increasingly, consumers seek personalized products, including watches. Microbrands have the opportunity to better meet this demand, as customized and limited edition watches can attract consumers who want something distinct, especially the younger Generation Z, the driving force of watch consumption in the future!

 

Online Sales and Social Media: Microbrands can effectively promote and sell their watches through online sales and social media. This lowers the barrier to market entry, helping microbrands establish connections with potential customers.

 

Storytelling and Brand Values: Telling a brand story and emphasizing brand values are crucial for microbrands. Consumers are increasingly concerned about the story behind a brand and its values, which can help microbrands build a loyal customer base.

 

Perseverance: Microbrands still face fierce competition from large mainstream watch brands. They may need to overcome challenges such as resource limitations, lower brand recognition, and market penetration.

 

Market Segmentation: The watch market is a segmented market, with different types of watches catering to different types of consumers. Microbrands can choose to focus on specific market segments, such as sports watches, luxury watches, vintage watches, etc., to meet the specific needs of their target audience.

 

Starting Your Own Watch Brand

 

Once you decide to venture into the watch industry, it's essential to create a plan for establishing your own watch company from scratch.

 

Outline Your Watch Business

This will guide you throughout your journey as a watch brand founder. Ask yourself: What is the ultimate goal of my brand? Do I want to be a brand sold on Amazon and Macy's? Do I want to create a watch brand like Daniel Wellington or MVMT? Do I want to create a high-end watch brand sold in boutique stores in Los Angeles? Here, I also recommend you to study the case of the young watch brand MVMT's co-founders, Kramer and LaPlante, in-depth. When building your own watch brand, be clear about your goals and keep them in mind.

Once you've determined that you want to build your own watch brand, several key points to consider are:

 

Budget

Target market

Watch design

Profit margins

 

Here, we'll talk about the two points you're most concerned about: budget and profit.

 

Budget: Typically, it includes the following costs for establishing your own watch brand.

Prototyping and inventory procurement for watch production

Building a team

Creating a website

Marketing campaigns

Profit:

Most new watch startups price their watches at around $60. This price point may not be highly profitable initially, but it will help you attract a broader audience. To build a customer base, you can offer both lower and higher-priced watches for diversity. With an expanding customer base, watch companies can still achieve substantial profits in their first year. Within the first year of operation, Watch Outfitters generated monthly sales of $13,500, resulting in an annual revenue of $162,000, with a significant portion as profit.

 

To increase your profits, you can design and manufacture your own OEM watches. This requires more work but can offer truly unique watches for sale. Additionally, when watches differ from common designs in the market, profit margins tend to be higher.

 

Set a Price Range for Your Watches

When founding a watch company, the style and pricing strategy of your watches are crucial. They will set the tone for your brand and help you find your ideal customers.

 

If you decide to sell high-end, expensive watches, conduct appropriate research on the most popular luxury watch brands. This will help you understand the products they sell, pricing, marketing strategies, and suppliers.

 

If you want to sell more affordable watches, figure out what your target audience and customers would wear. Do you want a minimalist style, a trendy and avant-garde look, or sports watches?

 

You can start by offering several different styles and price ranges initially and then learn how your customers behave and what they prefer. Afterward, you can narrow down your offerings to cater to their needs.

 

When it comes to brand positioning, market research, and marketing strategies, among other early preparation work, the next step is to find the right watch manufacturer that suits your brand's identity.

 

Finding a watch factory that aligns with your brand's identity is not an easy task. This supplier must be patient, understand you, trust you, and be proficient. While it can be challenging, it's worth investing all the research and time to choose the best one. If you decide to manufacture and produce your watches in China, make sure the watch manufacturer is legitimate, skilled, experienced, and easy to work with.

 

Watch Factory

Attend Trade Workshops

Dylawell is a watch manufacturer with its own factory, collaborating with some world-renowned watch brands. We also offer custom watches for personal use, so you can order just one to check the quality without a minimum order quantity. If you choose a foreign watch factory, keep in mind that you may not have control over the manufacturing process. On the other hand, if you don't produce the watches yourself, you'll need to find a reliable watch manufacturer to purchase from.

 

Before you find the best-suited partner company, the review process may take several months. It can also be quite expensive.

 

Build a Team

Whether you're starting a watch business from home or in an office, you may need some assistance in establishing the business from scratch. Besides managing tasks, you'll need someone to handle your social media, website, operations, and bookkeeping.

 

If you're working with a factory, you'll need someone to oversee that process and ensure the products are impeccable. If you decide to manufacture your own watches, you'll need a team of experienced watchmakers to turn your ideas into reality.

 

Avoid going it alone when starting a watch company, as you'll quickly become overwhelmed. Also, set aside a significant amount of funding so that when you need to hire someone, you have enough money to cover several months' worth of salaries and benefits.

 

Build a Website

In today's business environment, having a company website is essential even if you don't sell watches online. It's the first place your customers will look for your brand, so you must meet them there.

 

Your website should include high-quality product images, detailed product descriptions, an "About Us" page, contact information, and other essential information about your business (we have our own design team, and if needed, we can provide related support services).

 

If you're selling online, create a blog where you can write valuable posts about how to pair watches with different fashion styles, differences in craftsmanship and movements, style guides for men and women, and gift guides. This will help you rank on search engines and assist customers in finding watches that fit their budget and lifestyle.

 

If your budget is limited, you can try building the website yourself with Shopify, which is one of the most popular ways to start a small business. Even if you have zero coding knowledge, it's less hassle to set up, and you can simply drag and drop images into templates.

 

Develop a Marketing Strategy

The watch industry is highly competitive. If you're starting a micro watch brand, be prepared to compete with DW, Cluse, MVMT, Paul Hewitt, and other major brands. As a distributor or retailer, you'll be competing with chain stores, jewelry stores, and even supermarkets. Therefore, having a reliable marketing plan in place is crucial.

 

From online advertising and influencer marketing to local events and trade shows, there are countless ways to promote your watch company. The key is to show customers how your brand provides value and what makes it stand out. Create a story around your business and how everything began.

 

Join Social Media

Social media is one of the best and most cost-effective ways to reach a large audience and increase brand awareness. In addition to social media profiles, you'll also need a reliable marketing and advertising strategy to help grow your business.

 

You should post high-quality content that provides value to your audience, allowing them to connect with your brand. Posting product photos isn't enough – you need to engage with followers and answer questions about your products.

 

Instagram, in particular, has become a popular platform, and many Instagram influencers are willing to promote new fashion brands in exchange for products. Share behind-the-scenes photos and videos on Instagram, YouTube, Facebook, TikTok, and other social networks.

 

Set Realistic Sales and Distribution Goals

Don't be afraid to take this step with the help of business professionals. Just because you have a fashion vision doesn't mean you understand clothing distribution. If you can meet your sales goals, you can continue to grow according to your business plan.

 

Now, create your own remarkable watch brand!

Starting a watch company is both exciting and challenging, but with some business acumen, the right products, and an excellent business plan, anything is possible. These tips will help you build a well-known, successful watch brand that keeps customers coming back and telling their friends. I hope my insights are helpful to you! If you have any questions, feel free to contact me.