Wristwatches will always have a special place in my heart. It is in fact the first product I imported from China.
Watches make for a good product to start with as the price/volume ratio is quite good (i.e. you can earn significant amounts without having to import a ton of watches), they are easily customizable and quite suitable for importers who are starting out as there is no excessive budget required to get started.
Product Specifications
I like to say a lot that there is no universal definition of “good quality.” It depends on the context. A watch judged to be of “good quality” in Vietnam will probably be seen with a very different eye in Switzerland. A buyer in Via Monte Napoleone, Milan, will have a different concept of “quality” from someone who is buying the same watch from a street vendor who sells along the Romagna coast.
What is important to keep in mind is that a product is a system made up of materials and components. It is the quality of the latter that defines the quality of the watch. In addition, the supplier expects you, the importer, to offer a detailed list of specifications that define materials and components. So let’s see how to build such a list.
Watch case
The watch case is the most important component when it comes to quality. There are two most common options: zinc alloy or stainless steel.
A steel case will cost you four or five times more than a zinc alloy case. The choice will depend on the type of customers you intend to offer your product to. Keep in mind that if you prefer to work with large profit margins, and thus sell each watch for 70 Euros or more, a steel case becomes an essential requirement.
In recent years, it is thin speakers that have established themselves on the market. Most Chinese suppliers have the capacity to produce cases that are only six millimeters thick. The lower limit is dictated by the thickness of the watch’s gear (watch movement , this is the mechanism that allows the watch to “count” the hours, minutes and seconds) located inside the case.
To get a six-millimeter case you will have to buy Japanese or Swiss gears since the Chinese ones require a case that has a minimum thickness of eight millimeters. This is a good investment since the price difference is minimal (about one euro per gear) and most Chinese suppliers have no problem offering you Japanese or Swiss gears.
As for the design, you will have two options available:
- ODM = This means that you are going to use a design offered by the supplier;
- OEM = This means that you will be using an “original” design, for which a new injection molding machine will be required.
Watch suppliers usually provide a wide range of ODM designs, which can be modified (custom logo, engraving on the case, etc.). However, if you intend to opt for an OEM design, then you will need to provide the necessary information, which may include:
- CAD files;
- 2D design files (ISO or ANSI standard);
- Physical prototype (e.g. a 3D replica).
Gear
It is, as already mentioned, the internal mechanism that makes the watch work. Most Chinese suppliers can offer gears of different origin and quality. I personally recommend that customers invest an extra euro and opt for a high-quality gear (Japanese or Swiss) so that they can resell the watch at a much higher price.
Although the term “gear” (or movement, in English) originally referred to mechanical parts, nowadays it is also commonly used to refer to the electronic circuits that make electronic watches work.
If you intend to import watches into a country that is part of the European Union, then you will need to make sure that the watch movement complies with the EC RoHS Directive, which regulates the use of heavy metals in electroc components.
Most of the well-known movement brands (e.g. Miyota) are RoHS compliant. If, on the other hand, you opt for a Chinese brand, or in any case a “lower” quality brand, remember to make sure that the product is RoHS compliant.
Quadrant
The dial (dial or watch face in English) can be easily customized both in terms of colors and materials (often metallic). The vast majority of suppliers will also have no difficulty printing your brand on the dial for a more than reasonable price (20-30 cents per watch).
Strap
Unless you’re thinking of selling pocket watches – it could perhaps work in Berlin’s bohemian suburbs – you’ll need one or more straps to match the watch cases. As for the materials, you have the option to choose from various options: zinc alloy, stainless steel, leather, leather-like (synthetic) or nylon.
Product packaging
The packaging of the product is usually subcontracted to a third-party company, which specializes in the production of packaging. Even in the case of packaging, it is possible to buy both ODM (i.e. ready-made, perhaps to be modified with your logo) or OEM products, i.e. completely customized.
Minimum Order Quantities
Most suppliers accept minimum orders of 300 pieces. The price per unit will obviously depend on the quality of the materials and components you choose. However, the watch sector is, unlike electronics, one of those fields where even small and medium-sized importers can do well.
A few tips for watch importers
The most important advice I would like to give you is to specialize in mid-range buyers. The reason is that it is difficult to compete with Rolex or “take everything away from me but not my Breil” in terms of marketing and quality.
At the same time, by betting on watches that sell for five euros a piece, you will have to compete on price with the Chinese wholesalers already present in Italy in a downward game that will reduce your profit margins to zero. It is a game of slaughter where the winner is the one who manages to achieve an economy of scale before everyone else, don’t fall for it!
So aim to position yourself on the mid-range of the market, say 50-70 Euros per piece. Here’s what I would do if I were to start importing watches again:
1. Create a brand instead of selling an anonymous product or, worse, one that exhibits your supplier’s Chinese branding. You could hire a professional designer or create it yourself with Photoshop. A brand doesn’t have to be already famous to make an impact. It is also like good wine: over time it increases in value, allowing you to create a competitive advantage over any competitors.
2. Invest a few dollars in good quality materials and components (e.g. a Japanese gear instead of a Chinese one or a stainless steel case instead of zinc alloy). Investing 50% more could guarantee you a 400 or 500 times higher profit margin (as long as you have a brand).
European Certification Standards
Watches that have electronic components, such as a quartz movement, as mentioned above, must comply with the EC RoHS Directive . It is also possible that they must also comply with the EC EMC Directive. In addition, children’s watches must comply with the EC Toy Safety Directive.
In addition, the product will have to comply with the REACH regulation, which regulates the use of chemicals.
For example, if you make a query on the UK search engine Alibaba.com you will get more than two million results for the term “RoHS watch”. However, you will have to be careful because, from experience, I know that many providers have the nice habit of offering fake certificates.
Trade fairs in China and Hong Kong
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