Business Idea

Start A Luxury Watch Business

About

Starting a luxury watch business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell luxury watch, or selling luxury watch online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$7.48B
revenue (monthly)
$330K
starting costs
$26.6K
gross margin
45%
avg product price
$4500
time to build
9 months
growth
SEO
business model
E-Commerce
time investment
Full time

About

Starting a luxury watch business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell luxury watch, or selling luxury watch online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$7.48B
revenue (monthly)
$330K
starting costs
$26.6K
gross margin
45%
avg product price
$4500

 

time to build
9 months
growth
SEO
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $600 $4,700
Equipment & Supply Expenses $63 $200
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $4,786
Software Expenses $150 $2,420
Total Startup Costs $2,862 $53,073

Successful Businesses

Business URL Rank
Crown & Caliber crownandcaliber.com #36,013
Patek Philippe Geneve patek.com #48,044
Swiss luxury watches iwc.com #78,835
JCK jckonline.com #79,002
tudorwatch tudorwatch.com #89,307
WatchMaxx watchmaxx.com #97,688
Exquisite Timepieces exquisitetimepieces.com #102,639
Jaeger-LeCoultre jaeger-lecoultre.com #109,553
The Hour Glass Official thehourglass.com #131,253
Paul Rich Group LLC paul-rich.com #141,572
Luxury Watches on Chrono24 chrono24.in #159,610

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a luxury watch business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a luxury watch business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the luxury watch business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A luxury watch business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your luxury watch business are typically around 45%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the luxury watch business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a luxury watch business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.