You might be thinking that you can achieve your goal by starting your own luxury watch brand. But getting into the fashion industry might be somewhat tedious. Because there is a huge competition in the industry. Therefore, we love to share this article How to Start a Luxury Watch Brand with you in order to help you.
For many of us, needless to say, the time on our wrists. Mobile phones have played that role for us. So why do those people still wear watches and what is the reason for watch brands still exist? Well, nowadays it is more about fashion, style and social alignment. So if you are looking for a business to start a place where you can really focus on creating a memorable brand that can engage your audience, consider starting a watch brand.
If you know nothing about watches other than what they say about time, you should dig deep before starting your brand.
Why Start a Watch Brand
All most all people don’t buy a watch because they need a watch. People buy watches because they want to wear something to complete their outfits. They know and appreciate about modern, classic, attractive, sporty and/or high-quality products. This means that you are selling a product to customers who have an income that you can afford and that you value high-quality products that are a lucrative market to sell them.
However, this does not mean that your watches should be super expensive like Rolex or that you should only serve the consumer luxury market, it should appeal to people who want to be luxurious. And also this business idea gives you a lot of freedom to build a vivid variety of brands. Therefore, It obtests something to you. Therefore it might be a good reason for you to start a luxurious watch brand.
On the other hand, if you are interested in watches and have a strong passion for their technical capabilities, this may be another good reason to start a luxury watch brand. Most watch brands are started by people who have a personal interest in watches. So as that you also can start such kind of a business.
Finally, the watch industry is a lucrative one. According to Statista, the luxury watch industry has revenues of more than $23 million and the market is expected to grow 6.2% annually. So if flexibility is not enough to create a premium brand or a love for watches, know that it is a stable and growing market.
Things to Know Before Starting a Luxurious Watch Brand
Of course, you may know the styles of watches you like or dislike, you know some basic terminology, you may have a little more knowledge than the average person. But that does not mean you really know how to make or manufacture watches, so where are you get started??
So as the first step all the watches are made up of different parts. Therefore, learn the basics before going further.
- Case– This goes to the bezel and keeps the watch face, dial and all other internal functions together
- Bezel– Outer edge of the watch around the face. of the watch
- Case Back– The back of the watch can be removed to access the internal functionality of the watch. It can sometimes be engraved or stamped.
- Crown– Generally sits on the outside of the watch. it is used to wind the watch
- Crystal– Transparent cover that lays on top of the watch face. It is for protecting it.
- Hands– Usually there are two. One to show an hour and another to show minutes. But sometimes even a third
- Face/Dial– It is the part that marks the time. It is made with different colours, patterns, or materials to make decorative
- Movement– This is called the interior of a watch.
- Lugs– These are the outer parts of the watch and are used to attach the entire watch case to the watch straps
- Signature– This is the brand name or name that is usually marked on the face of the watch to indicate the brand that made the watch
- Strap– These are the straps that are tied around the wrist to attach the watch case to the wrist. These can be made of various materials such as metal, precious metals, ceramics, leather, canvas or wood.
- Subdial– Some watches have small dials on the face of the watch that is used for extra purposes. It can use to tell the time in other time zones, others can display the seconds, or they can be a stopwatch
- Digital Watches
- Smart Watches
- Quartz Watches
- Mechanical Watches
- Solar Watches
- Luxury Watches
- Dive Watches
Start Your Own Watch Brand
Once you have some knowledge of the watches, you are ready to take the next step. Therefore, you need to follow some steps.
#1. Overview of the Watch Market
As the very first step you need to identify the watch market that you are going to operate in. It doesn’t matter what you wish to start it is important to do market research. An in-depth market analysis can reveal a key understanding of your competitors, customer behaviour and industry trends.
The advent of wearable accessories is increasing the demand for smart watches. However, luxury pieces are still considered a symbol of status, especially among business professionals.
#2. Find Your Niche
Every product comes in all shapes and colours to hack the customer’s mind. Of course, you can sell all kinds of watch models for the customers who have different tastes, it may better to select one niche in order to fill the gap in the market. So, find out how you can meet your customer’s expectations.
If you broad your selections, it will be easier for you to find which models are worth the price. Also, you can better target your audience and promote your business. Do research on different types of watches and how they work. Consider their design and features, including vision, style, movement, power source, functionality, and price range.
#3. Decide On The Watch Style and Pricing Model
The watch style and pricing model are essential when starting your own luxury watch brand. Because they will set the tone for your brand and help you find your ideal customer. This step doesn’t become tedious if you have done effective research on the market. Because your market research will provide you with the details about the luxurious watches, who sell them, prices, suppliers and marketing strategies.
If you want to sell more affordable watches, find out what your audience and customers are wearing. So you can decide whether you going for a minimalist style, a fashion-forward style or a sports watch? In the beginning, you can start by offering different designs and prices and see how your customers behave and what they like. You can then reduce your allowance to suit their demand.
#4. Plan Your Business
As you decided your niche as the luxury watch brand and the styles and prices put everything together make your plan. Therefore, start with market analysis, list your competitors and describe your company, its products and what makes you stand out. Provide an overview of company ownership and specify who is responsible for what. And also your business plan should include pricing strategy, objectives, financial and legal requirements for starting a watch brand.
Not only that, consider your target market, business model, and marketing strategy. It is important to estimate start-up costs as well as ongoing costs such as monthly rent, shipping, staff salaries and other utilities. Make a list of suppliers and buy inventory for sale. Likewise include everything in your business plan.
Before starting your luxury watch brand you need money for various things. Launching a luxury brand needs more funds in order to get more people. This really depends on the type of watch you are planning to make and also depends on the mechanics and technology used in your watch. It is important to know as much as possible about how to assemble a watch and the different options available for each part of the watch so that you can choose the best options for you and your desired product.
The main cost of making a luxury watch brand is to make it work. If you want to build a watch brand based on premium values and luxury, you will most likely want to take your own mechanical step or take mechanical steps from a reputable supplier. Otherwise, if you are more focused on selling your watches at an accessible price.
Apart from the above mentioned costs there are some things that you need to know.
- Cost of making other parts like strap
- Making cleaning kits
- Creating display cases and boxes
- Costs of shipping packaging
- Cost of replacing any defective watches or watch parts
- The cost of yearly or lifetime warranty
- The cost of setting up your online store
#6. Cover the Legal Aspects
All most all the business plan should include the company name, legal structure, licenses and licenses, insurance requirements and other legal matters. Decide what kind of legal entity you want to use for your business. As your company grows, you can form a relevant entity for your state. And also before you can start a business, you must be registered for various state and federal taxes. Then you need to open a business bank account and credit card.
#7. Find Suppliers or Manufacturers
Finding a manufacturer for your watch can be the hardest part but it is worth all the research and time you spend to choose the best one. If you decide to design and manufacture your own watches, make sure the factory, supplier, and manufacturer are legal, have the skills, experience, and license to work. Make sure to remember that if you choose a factory to manufacture watches, You may not be able to control the manufacturing process, quality, and conditions.
#8. Find A Store Location
Your store location may be a significant element of your brand and the clients that you want to attract. There are somethings that you need to consider when selecting a location for your business.
- Style of operation
- Accessibility and parking
- Foot traffic
#9. Develop a Marketing Strategy
All most all the businesses need to market their products, but there are a few specific ways you can use your watch brand to stand out from the crowd and attract more customers.
- Offer Personalization– Watches often provide personalization services such as post carvings because they have been passed down from generation to generation as a piece or as a gift, or purchased to mark an unforgettable moment in someone’s life. Wear a suit or watch straps to make your watch more specific.
- Offer both Low & High Priced Watches– This helps you to attract customers from one end of the price spectrum. You may not be able to meet all the prices when you start your watch brand, but as you grow, develop additions to suit different types of customers, then you can attract different customers.
- Create Limited-Edition Watches– This is a marketing ploy that encourages consumers to buy quickly and let them know they only have a certain stock and when they lose it they lose it.
- Create More than Just Watches– The watch can be easily layered with other items such as bracelets and cuffs, so make full additions so customers have more options and can increase your average order values.
The industry you are going to enter is very competitive. If you are starting a luxury watch brand, be prepared to compete against Richmond, Mano, Fossil, Rolex and other major manufacturers. As a distributor or retailer, you will compete with chain stores, jewellery stores and supermarkets. So it is important to have a strong marketing plan.
#10. Set Up A Website
A business website allows customers to learn more about your luxury watch brand or services you offer. Therefore, you can use social media in order to attract new customers. Website is a necessary item for all businesses. Include quality product images, descriptions, contact information. If you are selling online, create a blog that writes valuable articles on how to make watches with any style, technique and movement variations, fashion guides and gift guides for boys and girls. Then this will help you rank search engines and find the right watch for their budget and lifestyle.