We all have a clock on our mobile lock screen, and our smart devices are happy to tell us the time if we ask, but that hasn’t stopped our enduring love affair with wearing watches. If you’ve dreamed of carving out a niche in the watch market, our guide will steer you through the world of selling timepieces. Whether you want to start your watch brand or open a company that sells watches, we have tips and advice to help you succeed.
Before starting a watch brand, it’s essential to ask whether time is running out for the watch industry. While it is true that luxury watch prices are falling and the titans of the timepieces, the Swiss watches, are seeing slower sales, it would be remiss to label the watch industry as a dying trade.
There are plenty of glowing embers within the watch landscape, ready for the keen horologist and businessperson to nurture. For example, while new high-end watches aren’t as popular as they used to be, the pre-owned timepiece market is growing. From the old to the new, micro brands are perfect for making a punchy impact on the industry, as proven by the likes of Holzkern, Lorier, and Marin. They tap into consumers’ cravings for individual timepieces that align with their unique fashion or lifestyle sensibilities.
There are three main avenues you could explore when starting a watch business – you become a watch designer, you could launch your own brand, or you could set up a retail company that sells other brand’s watches. If you’re not sure which is right for you, consider the following:
Watch designers:
Watch brands:
Watch companies:
From starting a watch company to growing your brand, plotting your path to success is essential. For a watch to be reliable, it must be crafted with meticulous precision, and for your business to be successful, you need to embrace the same fastidiousness in the planning stages.
You may have a good idea about the type of watch business you want to set up, but before you start laying your foundations and investing money – check out the competition. If you’re launching a microbrand, look at other successful microbrands and see what they’re doing well. Is there a gap in this market you could tap into in terms of style, materials, or price point? If you want to sell watches, how do other businesses make their brand stand out? How are they advertising and who do they advertise to? What is their selection like, and how can you make your selection unique? To start your own watch brand, you need to understand how you can stand out alongside your competitors, and this will shape everything you do next.
2. Identify your target audience
After swatting up on your competitors, you’ll understand who your target audience is, based upon the most profitable gaps or opportunities in the market. Now it’s time for even more research. Find out what this demographic wants from a watch – never assume. You may be surprised to learn what factors they rank above others when choosing a watch. For example, they may place sustainability and eco-credentials above the price point. Importantly, you need to look at what their average spend on a watch is and use this data to shape your production costs or the value of the watches you source for sale.
3.Define your USP
You now know what your competitors do well and what your target audience wants from a timepiece, and together, this information will help you devise a USP. A unique selling point differentiates you from other watch brands or businesses, enabling you to build a strong brand identity and market your company clearly and effectively. Your USP may be the style of watch you sell, the type of materials you use (from luxury to recycled or ethically sourced), the quality of your pre-owned pieces, the competitive prices you offer, or the overall user experience. If you can’t readily communicate your USP in one concise sentence, it’s time to have a re-think.
4. Finding your brand name and logo
Naming your business and designing a logo may have been at the top of your to-do list, but completing the other three steps first gives you a better idea of how to position your brand. Now that you know who you’re trying to appeal to, make the right first impression. If you’re starting a watch brand, choose a name that embodies the brand; for example, a sophisticated-sounding surname can work well for a luxury brand, while something a little outside the box and fresh is a better fit for a dynamic microbrand. If you’re selling watches, think about whether you’d like to include the word “watches” in the company name to make it crystal clear what your business is all about.
5. Design your watches or select your product line
If you want to create your own watch brand, one of the most exciting steps is the design process. You’ll be able to make decisions such as:
The materials used for the case and strap
You could select hardy stainless steel or titanium, affordable aluminium, or a luxury precious metal like gold for the case. The strap could also be crafted from metal, or you may prefer leather or a durable fabric (which offers plenty of scope for bold, colourful designs). You could use recycled and ethically sourced textiles, metals, or precious stones, and if this is one of your USPs, be sure to be meticulous with the provenance of these materials.
The type of mechanism
Enthusiasts covet mechanical watches because they offer a classic aesthetic; however, they are more expensive to build and require maintenance. Quartz mechanisms are cheaper to manufacture but are still durable and reliable and require less maintenance. They’re also a more practical choice if you’re creating a slimline watch design, as they’re less bulky than mechanical movements.
The shape of the case
Round, square, and rectangular cases have universal appeal and are found across a range of watch styles. An oval or tonneau (rectangular with rounded corners) case can add a unique air to your timepiece.
The design of the face and any added complications
This is where small choices can make a big impact on a watch’s overall look. You can choose between analogue and digital dials, Roman Numerals, and numbers, and then you’ll need to choose your typeface. What colour do you want your face, hands, and numbers to be, and will your watch have complications like a stopwatch or the lunar cycle? If you’re creating a smartwatch, what functions do you want, and what tech do you need to measure and interpret these functions?
The colourway
From classic metallic hues and elegant leathers to neon brights and patterns, your colourway will help define each design.
These decisions will help you determine the overall style of the timepiece, from a rugged sports watch or elegant dress watch to a trendy fashion watch or body-responsive smartwatch for collecting the wearer’s metrics.
If you plan to sell watches, you’ll need to create appealing product lines, choosing the type of brands you want to work with and price brackets you’d like to offer. Think about creating a streamlined experience for the consumer, helping them find the right kind of watch with ease. You want to offer choice, but start slowly and build your product lines. Notice which designs or brands sell well, then use that to guide your next additions.
6. Manufacturing your watches
If you’re starting a watch brand, once you’ve signed off on your first collection of designs, the next step is to bring them to life. The location of manufacture matters for many reasons. It will be a major factor in your pricing strategy and will shape your profit margin on each piece. If you want to work with a smaller budget, you may prefer to manufacture in China. Meanwhile, for a luxury brand, you may like the prestige of being able to say made in Switzerland or made in Britain – though the costs of doing so will be substantially higher.
7. Branding and marketing
There’s no escaping the fact that starting a watch business involves stiff competition. A high-value luxury watch must be branded and marketed differently from a fashion-forward timepiece. From the colour schemes and language you use in your marketing to the retailers and influencers you choose to introduce your pieces to the wider public, there needs to be congruence throughout.
Microbrands, in particular, can greatly benefit from online platforms, as they allow for clear and concise storytelling. It has been popular among new brands to share their journey from conception to launch and beyond online, which can prove to be an effective marketing tool for growing their customer base.
If you’re selling other brands’ watches or preowned pieces, your marketing needs to focus on telling potential customers why they should choose to shop with you over another retailer. Quality, price, choice, and customer service should be front and centre as you market your new venture. There are many places customers can buy watches, you need to leave them in no doubt that you’re a better option.
8. Protect your investment
As soon as you start channelling your time and any money into starting a watch company, consider protecting that investment with insurance. There are many moving parts to a startup business, and the best way to protect yourself against the risks associated with each is to speak to an insurer skilled in tailoring specialist business policies.
TH March is an authority on insuring jewellery businesses and can help you find the comprehensive cover you need for your watch company within your individual business budget. Whether you’re selling six-figure Omegas or launching a disruptive new watch brand, TH March understands how to protect every corner of your enterprise, from high-value stock to third-party claims and unpaid invoices. Request a callback from TH March today to discuss your unique watch business needs.