Although there are a lot of gadgets that can help you tell the time nowadays, luxury watches continue to be popular and in-demand. In 2017, a total of $8 billion of luxury watch sales was recorded in the United States alone. Moreover, the luxury watch market has seen a consistent annual growth of 12.3 percent in the last five years.
Even companies like Apple, which is originally a smartphone maker, are now tapping into this market with their smart versions of luxury watches. Business-wise, starting a watch business looks a profitable endeavor nowadays.
Some business-minded individuals are now asking questions related to starting a watch business. Here are some frequently asked questions that you need to know if you’re also planning to open a watch business.
What are the Initial Costs?
Anyone who has the capital can manage the initial expenses in starting this type of business. To give you an idea of how much it will cost, here are some things that you need to spend your money on at the beginning of your business endeavor.
- Advertising campaigns
If you have limited capital, you can start your business with a limited inventory. You can also minimize the startup expenses by building your website yourself or doing organic advertising campaigns.
Who Will Buy Luxury Watches?
When starting any business, it’s good to know who will be your target market. In the case of luxury watches, adults who have excellent income and have a sense of style tend to purchase such products. Some people use luxury timepieces as fashion statements, while others consider watches as investments because of their value.
What Type of People Should Run a Watch Business?
If you have a passion for luxury timepieces, your chances are high to becoming successful in running a watch business. Getting to the height of success in selling watches requires understanding why there are folks out there who love luxury watches. If you’re a watch enthusiast yourself, acquiring this knowledge will be easy for you.
What are the Things a Watch Business Do?
It’s essential to know the things that typically happen inside a watch store to at least visualize yourself if this business is right for you or not.
Well, a watch business usually creates the inventory that they have to sell, fulfills customer orders, and communicate with customers. It also needs to develop and execute advertising campaigns to attract more people to buy what it has to offer. Some watch businesses may also build the watches themselves or perform repairs.
However, most watch stores make profits by reselling luxury timepieces from top brands around the world. They typically sell the items individually, but sometimes they also curate collections and encourage watch enthusiasts to buy them in bulk.
Does a Watch Business Have a High Potential for Growth?
You can build a watch business with limited inventory with just yourself running it or with the assistance of a few people. This kind of business setup typically caters to a small number of customers. But, with the right knowledge and skills, you can grow your business to serve a large number of watch enthusiasts.
One successful brand which started small is Omega. Louis Brandt established the company in a small workshop in La Chaux de Fonds, Switzerland in 1848. But look at how big the company is now. Omega watches are among the most sought-after luxury timepieces in the world today.
What are the Skills to Make Such Business Successful?
Of course, you need to have knowledge of both luxury watches and managing a business. Your practical understanding of luxury watches will help you select an excellent inventory and properly communicate with customers. Your knowledge of running a business, on the other hand, will help you make sure that you make profits out of it.
If you look at successful owners of watch brands, you will know that their knowledge about luxury timepieces is their stepping stone in growing their business. Even if you plan on selling watches and not making them, you must know how a timepiece works. There’s a watchmaking course that will provide you with some knowledge for that purpose.
You should also learn the fundamentals of managing a business. Some online courses will teach you how to run a business and make it profitable. After learning the fundamentals, you can learn advanced business courses to help you grow or expand your business.
It’s also an excellent option to find a mentor that can assist you in running your watch store. When you’re visualizing your business plans, you can connect with a business support network that will help you have the necessary resources that you need for your business endeavor.
Having a quality mentorship or support network is also essential in dealing with problems that will emerge when you’re just starting your business.
Should I Opt for a Physical Store or an Online Store?
Actually, you can go for both. But if your capital is limited, you can start with an online watch store. An online store comes with limited risk and offers more flexibility. It’s an excellent choice nowadays, given the fact that more people are going online to buy stuff.
A brick-and-mortar store, on the other hand, provides your business with credibility. If you go for this option, make sure to build your physical store in a high-traffic area so that more people can see it. However, you must consider the expenses such as rent that comes with building a physical watch store.
How to Promote a Watch Business?
There are a lot of approaches to marketing your watch business. The most effective method is online advertising. You should see to it that you have a website or social media pages to promote what you have to offer. Email marketing is also a useful way to market your business and generate sales.
Starting a watch business requires knowledge, passion, and dedication to make it successful. Of course, you also need the capital to build such a business. If you want to make it happen, you can study the information discussed above for that purpose.