Business Overview

Despite the prevalence of smartphones that easily display the time, watches continue to be popular. In particular, there remains a steady demand for high-end, luxury watches. Online watch and jewelry sales in the United States alone totaled $8 billion during 2017, and the segment has seen sustained annual growth of 12.3 percent over the past five years. Even smartphone makers (most notably Apple) can’t ignore the demand for watches and are producing smart versions of luxury watches.

A watch business sells watches to consumers who are interested in wearable timepieces. Thanks to sustained demand and a large market, this is an industry that’s ripe with opportunity.

Who is this business right for?

Anyone who has a passion for chronometers may be well-suited for running a watch store. Successfully running a store requires understanding why people want watches. People who themselves love and want watches already have this knowledge, which is knowledge that can’t easily be learned.

What happens during a typical day at a watch business?

A typical day at a watch business consists of:

  • Fulfilling orders
  • Ordering more inventory
  • Responding to customer inquiries
  • Running advertising campaigns

Some business owners may also perform repairs related to warranty claims, but business owners who don’t have technical repair skills can outsource this work.

What is the target market?

The target market for watches tends to be adults who have discretionary income and appreciate style. These customers will use watches to make fashion statements, and they have money to spend on watches.

How does a watch business make money?

A watch business makes money by selling watches. Watches are normally sold individually, but collections can be curated to encourage customers toward buying multiple watches.

What is the growth potential for a watch business?

A watch business can be a small one-person operation that serves a relatively small number of customers, or it can grow to have lots of sales and fulfill large orders for many watches. One company that started small but then grew is Modify Watches. Modify Watches’ first few sales were only to family and friends. The company eventually has since then fulfilled corporate orders for Google and Sega, both of which gave the watches to employees.