Step by Step Guide: Start Your Own Microbrand Watch Company

Have you ever wondered what it takes to start a microbrand watch company? This article will share the crucial steps to guide you and help you build your microbrand watch business seamlessly. Learn more at an online session.

Building your watch brand is a remarkable journey. It takes hard work, grit, and perseverance. The journey for our own microbrand watch business started in a year ago. We have so far released three collections with good sales and reception. Our watches have been sold to customers in the US, Spain, the UK, China, Turkey, India, Italy and Turkey.

Along the way, we have had a few challenges, taken the wrong turns, and right now have been able to build a brand we are proud of. Of course, it is still a work in progress, but oh, what progress we have made in just one year since our products were officially launched in the market. Our watches are sold to customers all over the US, Turkey, Italy, China, India, Spain, Scotland, the UK, and Ireland.

Now, you may wonder, why should you build your own microbrand Watch business? Indeed, you already know it is a crowded market. However, there is an excellent chance for you to rise above the crowd and build a prominent microbrand. Are you in doubt? Here are the reasons why?

According to industry experts, most people will not wear a watch they do not find esthetically pleasing. Therefore, a good number of people are out there and will most certainly fall in love with your unique concepts.

Sure, mainstream high-end and luxury watches seem to have great followership. That is one reason they stick to conservative designs (except for a few exotic mixes). Great design also costs a lot of money. Many people cannot afford most watches they find in the luxury watch world.

So, there is your market prime and ready – the people eager for artistic watches that are still affordable. These people want the best microbrands, and you can become one of the best. All you must do is take that first step.

Secondly, although there are many other microbrands out there, you have lots of opportunities for yourself too. Why? People still want those gorgeous watches; they are right there and waiting for them. But you cannot reach them if you do not begin today. The marketplace is already shrinking, so the right time to start your microbrand watch is now.

To help you get started, I have put together the most critical steps to build a successful microwatch brand from scratch.

Finding the Right Factory

China is one of the main places where most microbrand watches are assembled either with Japanese or Swiss movements, some even with China's Sea Gull movements.

However, finding the right microbrand watch manufacturer might be the most challenging part of your journey. You need to research, make many visits, and painstakingly go through the prototyping stage. Ultimately, all your hard work will be worth it. Never forget that building a successful business means you must focus on your customers. It's about delivering the best to them, so you want to make sure you have the right manufacturer behind you. Here are a few tips to get the right one:

▪ Technical department

Ensure you ask your manufacturer if they have a technical department. Next, ask if their technical department speaks a common language. Your goal is to make sure you can communicate your needs effectively.

Surely, they might have salespeople. However, the common practice with those suppliers is hiring salespeople with no knowledge of watches. So, your best luck is working with their technical department. When the technical director speaks a common language, you can easily communicate your designs and concepts.

▪ Consider different factories

Some suppliers can handle all parts of your watch. Others have a few specialties. Be sure what yours can actually do. Is it the casing, strap, finishing, or any other component? If they are not masters of every area, don't be disappointed, that might still work in your factor. Overall, if you choose different factories, your costs may add up. So your budget should help you pick the best choice.

▪ Service center

What's going to happen if you receive a defective watch? Because you don't have technically skilled people in-house, you need to rely on a fully working after-sales service offered by your manufacturer. However, there's one small risk. Also, consider the cost of returning defective products to China. China has awful regulations that make it very hard to return defective items. They charge you 40% or more on taxes for all kinds of imports, even temporary returns, making it highly costly for you. The solution? Make your visits before your watches are shipped. Ensure that they offer a full working after-sales service. By doing both, you can reduce the likelihood of receiving defective products.

▪ References

You need a company with real references that you can contact directly. Be wary of microbrand watch manufacturing companies claiming that they are real manufacturers of top-rated brands.

No matter how popular the brand they talk about, make sure you reach out to them to confirm their tale. If they can't, then be rest assured, they haven't worked for the said company.

So, ensure you confirm every reference they give to you. Contact the brands directly and ask about their experiences working with your potential supplier. You need a supplier that has a great relationship with its customers. They must also have strong business ethics.

▪ NDA

Most businesses sign a non-disclosure agreement before starting production. That is a great business principle, but it might not amount to much when dealing with the Chinese. The likelihood of keeping your models secret depends on their core business ethics. You can decipher by how fast they are going to show you their models. From the way, they flaunt other people's models. If they show their top-secret products to you, chances are they will show yours to someone else.

Now, you may wonder – if they do so, you could sue them to court? Yes, you can, but that means you've got millions to spend on court cases, with no sign of it ever going in your favor.

No matter how airtight your NDA, they can still violate your rights, and you will never be able to prove it in their courts. The best way? Use your intuition. Like I said earlier, make sure they have strong work ethics and principles.

▪ Business type

Now here's the tricky part. A good number of Chinese suppliers are simply a trading company. This means they are just middlemen. Run far from those. You need to deal directly with a manufacturing company. That's the only way you can be sure your gorgeous watch designs will make it to the hands of your customers. Secondly, the fewer people between you and the manufacturing, the cheaper your production and the fewer risks of having your sensitive information spread to a significant number of people. To find out, first, ask if they are a trading company or a manufacturing company. In many scenarios, you can immediately know from their name. Many have their company's names with the Trading Company Limited attached. Others have a manufacturing company LTD.

▪ Company history

How long has the company been in existence? You need a company that has a good reputation and many years of service. Do note that in China, it is relatively easy to open and close a factory. So, you don't want to be caught with your foot in the mouth. Always stick to brands with a great portfolio and years of experience.

Your ideal microbrand watch manufacturing company must have skills. Do careful research, make visits, and discuss with the right people. In no time, you shall have a great factory to work with. However, do bear in mind that the pandemic has made factories and logistics a lot slower for now. If you plan on starting now, you must make preparations to accommodate this.

Creating Concept
 

The microbrand watch business might seem like an overcrowded niche, but there are all sorts of sub-niches out there for you. Sure, it might mean dealing with a smaller group of consumers, but it makes your work easier.

You shouldn't position yourself to compete with the bigger conglomerates with deep pockets. By sticking to the unique niches, you can easily reach out to people who will buy from you. It will also make your advertising and marketing costs go down. It becomes a lot easier to build a loyal customer base for your second and third releases.

But you must find the niche first. That means finding what your audience will love. However, you must find the right niche. If you take a good look out there, you will find that many microbrand watches do not follow these steps. They simply look for something they love and go with it. Sure, you shouldn't be selling what you don't like. But I believe in finding the right balance. Here are some steps you should consider:

▪ Research

Talk to people about their pains with the current watch brands. Consult the experts too. They always have a wealth of information to share that will be beneficial to your

Do ensure that you do proper research on the different watch categories to figure out the right space for you.

If you want to sell expensive high-end watches, check out popular luxury watch brands. Assess their suppliers, marketing strategy, prices, and unique designs. However, always bear in mind that you want to stand out and not blend in.

If you want to build affordable watches, consider what your customers will love to wear. Consider surveys and even creating prototypes for feedback. Answer these questions:

Your goal should be positioning your product in a way that your specific target group cannot overlook. Overall, I recommend combining your visions with the right "forgotten" target group, so it becomes easier to build a brand people are crazy about.

Product Design
 

There is no other industry where customers reign supreme like the watch industry. You must strive to deliver the best quality to get their attention. Still in doubt? Think about this; the market is already overflowing with low-quality, mediocre watch designs. Many of such brands have colossal dominance.

So how do you rise above the crowd? Easy, do something different. Take a step further in quality, design, and functionality.

However, Your budget and profit outlook will ultimately determine your profit and should include these costs :

Most new watch startups aim for $50-$70 as retail price allowing for a reasonable profit margin without being awfully expensive. However, the kind of watch quality you have in mind will determine these areas. Do bear in mind that your profit increases if you handle the design for your watches. Additionally, your profit margin can be higher if you consider the market.

Now here's a thing about pricing and budgeting: you should also consider – degree of customization. How far do you want to go with your distinctive design without breaking the bank?

If you don't want to make your watches too pricey, then the Miyota or Seiko movement has some things you can learn from. Consider customizing the face, bezel or bezel insert, hands, crown, and back. Remember that the more parts you choose from the catalog, the cheaper the watch will be.

That said, avoid going for the cheapest watches because most microbrands are already doing that. Your goal should be standing out from the crowd.

Like I said earlier, it’s about the degree of customization you can allow.

Raising Funds
 

Raising funds for new startup brands is tricky. Many brands use Kickstarter (but require a product prototype ready), but it has risks of not getting enough backers. Often, it is because only a few people know about their brands. Many of these people rely on their funding platform to do all the marketing for them. You must always remember that your products won't sell themselves. Of course, your personal Facebook, Instagram, or other social media platforms won't reach enough people. You need to expand your marketing horizons beyond just a few people. Never invest all your money in your watch. Keep a generous amount aside to market your watch effectively. I recommend that before you start overthinking about your watch, you should think about your marketing. That's where you will consider your target group. It's also how you will learn to market your watch. Here are a few pointers:

I also recommend that you look for other ways to raise funds for your new startup. Relying solely on a crowdfunding platform like Kickstarter or Indiegogo is not good enough. Consider getting a partner or trading equity or services for startup help. You can also join a startup incubator or accelerator.

There might be local investor groups around you too. Consider applying to receive funding from them. You can also solicit a small business grant or pitch out your needs to your family and friends. Overall, make sure you spread your wings in the quest for funds. I believe that your marketing and funding journey will go together. Doing both at the same time can set you up tremendously.

Please note: during the funding stage, your prototypes should be ready alongside. It's a win-win situation for you. By getting your prototypes out there, you can receive feedback. That way, you already know there is a real market for your designs.

Samples Production

Samples matter tremendously. If the samples are awful, the chances of getting the right products will be awful. Avoid brands with ready-made excuses like "this is just a sample, we will make it better in mass production" "Take this as now, and for reorder, we will correct mistakes." Without getting the first stages right, you run a high risk of spending your advance payment on defective or ugly products. Your ideal supplier must be able to deliver exceptional samples. That way, you can confidently look forward to beautiful products.

Some suppliers may even send you a watch they purchased from a competitor as samples. This can be disheartening. So, you need to also talk to them about the quality of their products. No one ever talks about this until you ask.

And simply prescribing to "we deliver superior or premium quality' doesn't fly. Talk about the complete details of the quality of each step. You should primarily focus on the quality of the finishing. You should ensure you can set a great stand.

▪ Build your prototypes

The best way? Design prototypes. Get your designs out of your head and onto a pad. The best way to start is paper, a pencil, and a scanner. Build in the textures and color codes that you want to use. Next, find a graphics specialist, especially a 3D artist, to help you put it all together.

3D helps you offer a realistic image of your projections so that you can communicate your desires effectively with your microbrand watch manufacturing company. Once you have started garnering sales or can afford it, consider using an established design brand. They can help you take a step further with your watch, including the functions, features, styles. They will also walk you through hundreds of textures, finishes, and designs, helping you create stunning prototypes you will be proud of.

▪ Refine your prototypes
 

Just because it appeals to you doesn't mean your audience will love it. To make sure you are on the right path, especially for your first watch series, compare your watch to the famous brands. Get a few bench-mark watches from other established micro-brands and compare the quality of your prototypes. You can also get out a few of your prototypes to the press before production. Ensure they make comparisons and give you real and accurate feedbacks. In the end, you want to make sure you are genuinely competing with your competition.

In the end, communication matters a lot. Ensure you have all the details spread out for them, beyond size, colors, and components. You need to explain your ideas and follow-up aggressively carefully so they get it right.

Final Production

The final production and finishing stages are one of the most critical aspects. To ensure you won't receive decrepit mass-produced versions of your gorgeous designs,

If your potential supplier has passed all of the points, I listed, out, great!. Now you need to consider what's the delivery going to look like. You need to make sure they will deliver what you have ordered. You can ask them to send you several samples of the mass productions. That way, you avoid receiving a batch of watches entirely different from your order. I recommend visiting your factory to monitor the process. That way, you can save yourself the heartaches of trying to make returns.

Your finished watch should undergo different tests to assess its performance. Always remember that every part of your watch deserves careful attention, and off-course, the finishing stands out. But, you want to get it right in terms of functionality.

Before you and I forget, your straps also need all that care and attention. I have seen many micro-brands carefully design their watches without considering the strap. Your customers want quality on all sides, so you need to invest in great straps.

That's how you greatly influence your customers to return for more. The more comfortable and superior your straps, the higher the pleasure your customers will experience. In turn, they will talk about your brand to their friends and help you spread to gain more customers.

▪ Shipping
 

Many who start a microbrand watch company forget to plan for shipping and distribution of their products. Your microbrand watch business isn't going to survive if you place this critical step on the back burner. Here's what you should do:

▪ Decide on delivery services

There are hundreds of delivery options, but they depend on where you want to sell your watches. Do you want to go global? Or perhaps stick to a specific country? I recommend the latter, so you can keep your shipping and delivery options straightforward. Also, you need to go with the most efficient routes of delivery. Nowadays, customers expect same-day delivery or 3-day shipping options. Luckily, there are great shipping brands out there to choose from. You should also consider talking to your microbrand watch manufacturing company about your shipping needs. However, realize that your shipping might be in two phases: shipping to your location for inventory storage and then finally delivering to your customers (last-mile delivery). Some companies provide both options, which means you also pay for storage. Others can handle the shipping to your destination and then your last-mile delivery while you handle storage. In the end, your research will help you figure out the right step.

▪ Returns

Like I said earlier, returns are a tricky business with the Chinese. So it's better to get the production right. Also, talk to your factory about their after-sales service. You need to evaluate the best approach for you. Don't be afraid to consult the experts, particularly on this aspect.

▪ Customs

Although delays are expected right now due to the pandemic, you need to understand the customs expertise for the different shipping routes you will access. Get familiar with local customs, terms of service, fees, and regulations. All of these will, in turn, affect how you satisfy your customers' needs and, of course, the price of your watches.

Concluding Thoughts

By now, you know how to start a microbrand watch company. The next step is yours. Your ideas will never become a reality if you don't take the next step. Avoid overthinking your brand and start moving to make it a reality.

Don't be afraid to make mistakes. Think of them as part of your journey. Remember that perseverance, grit, and hard work are crucial to building a successful microbrand watch business. Now go out there and spread your wings.