Outsourcing watch production is not a new phenomenon. It has been happening for decades in the watch industry. It started with major brands outsourcing their manufacturing to regional suppliers and then to China.
Outsourcing watch manufacturing is not just about cost-cutting, but also about brand building and marketing strategies. Microbrands are more able to produce watches on a much larger scale and at a faster time to market than they could ever do on their own. They can also test new models more quickly and efficiently, which in turn helps them be more innovative and agile in this competitive market.
Why should I outsource my watch manufacturing?
Without any doubt, outsourcing your watch manufacturing can help you save a lot of money and time. However, it should be done with caution. It is important to select a reliable company that has the necessary expertise in this field.
There are many ways to outsource your watch manufacturing without compromising on quality or experience. You can choose to outsource the work to an experienced manufacturer, but still keep some control over your product by taking care of the design, marketing, and distribution of it.
The key is to find a good balance between outsourcing and maintaining control over your product.
Below are some benefits of outsourcing your watch production:
- Lower costs
Watch manufacturing is a very expensive process, so most watch companies including microbrands have to outsource their manufacturing to other low-cost countries in order to keep their prices affordable. Outsourcing their production enables you to reduce your costs by as much as 30%.
- Access to newest technologies
You do not have to wait for new materials and technology from the manufacturer, as you can order them yourself and these resources will be available when needed. There are a number of watch materials and watch movements that are only available when you use them.
- Faster product development
Faster product development allows you to test and launch new models faster. This concept is referred to as “speed-to-market.” The idea behind speed-to-market is to create more products faster, test and launch them more, and thus be able to stay ahead of the competition.
- Better quality
Watch manufacturers usually make watches of better quality than you can create yourself. They have the equipment they need, while you do not. Also, they are more experienced as compared to a DIY enthusiast. Always choose quality-minded manufacturing partners for your watches!
- More profitability
Outsourcing manufacturing to lower-cost countries has become the new norm, allowing businesses big and small to reap the economies of scale and cheap labor at a cheaper cost. This means you can produce the same product for a much lower cost per unit. Did you know that it costs over 4 times less to produce a watch in China than it does in Switzerland? Outsourcing production will allow for increased profitability of your business which means more money left over for marketing and advertising.
How do you know which manufacturing company to choose?
There are many watch companies you outsource to out there and it can be difficult to choose which one is best for you. It all depends on your needs and what you want to achieve.
When it comes to choosing the right watch manufacturing partner, here are seven pointers you should be aware of.
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You need to identify your budget. How much are you willing to spend on the quality you’re looking for. Can the partner meet your needs and goals?
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Decide what type of watch you want or need to produce. Is the manufacturer capable of producing the design and quality that you are looking for? Not all companies manufacturing goods are created equally. Some focus on delivering quality while others focus on quantity. The mindsets are different.
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Verify whether they can communicate with you and understand what you need to be done. If you cannot communicate with them effectively (obviously in English) or they do not understand your needs accurately, then either of you is going to waste a lot of time repeatedly explaining and solving problems due to misunderstandings and assumptions either of you have made. You don’t want to waste time doing it.
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Check if they have done watch designs and specifications similar to yours in their past experience. Check to see their quality. Seeing is believing.
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Check if the manufacturer respects intellectual property. Your design is your intellectual property! This is something that should not be shared with anyone else without your permission. Check to see if they are willing to sign and respect the non-disclosure agreement that you may need to sign with them.
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Check how they handle quality issues and how capable and fast they are of providing solutions.
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Check if the company offers a warranty or guarantee for their watches. If not, why not? What happens when the watch needs to be repaired, returned, or replaced in the case of a manufacturing defect?
In summary, you want to work with a partner that is capable of producing the quality at the budget you want in order for your brand to compete in the market. It is important to select a manufacturer that offers the right industrial experience and expertise, can produce high-quality products with reasonably low manufacturing costs and has the capacity to meet future demands. In choosing a manufacturing partner, these seven points would be a good place to consider when making a decision.
Conclusion
In conclusion, as you can see, outsourcing watch manufacturing has many benefits as well as challenges. The obvious benefits are cost savings, better quality, access to the newest technologies, faster time to market, more profitability, faster product development, less production headache, etc. In the short term, outsourcing watch manufacturing allows you to focus on your core competencies while also having more time available to develop your brand business. Good luck with your business!