Distribution Channel

To complement the information below, please proceed to the payment gateway to access our Report on Sales Breakdown, which shows the industry markup breakdown for Zero, One and Two Level Distribution Channels.

Zero Level Channel

Reward Crowdfunding: Zero Level Channel is one of the oldest form of sales that goes back to master watchmaker Abraham-Louis Beguet’s souscription watches of the early 19th century. Similar to post-2004 online, Breguet would collect enough deposits allowing him to source raw materials and manufacture watches. A compelling example of Reward Crowdfunding is the US-based brand Helgray, which succefully ran four consecutive campaigns on Kickstarter and generated consolidated sales of more than USD 680,000.
Direct Marketing: One of the oldest uninterrupted watch companies that met success with Direct Marketing is Sinn Spezialuhren GmbH, which was started in 1961 by German flight instructor Helmut Sinn and eventually sold to Lothar Schmidt. British brand Christopher Ward has successfully implemented this distribution model, allowing them to develop and release proprietary movements at extremely competitive prices.

One Level Channel

The One Level Channel is the least popular because it requires heavy investment into representation, in order to reach retailers.

Two Level Channel

The Two Level Channel is the most common in the established watch industry, and it is understandably the lease attractive to micro-brand owners because of the very low ROI. However, thanks to the professional middlemen, a brand is able to gain a much broader visibility. Successful examples include : Alpina, Bremont, Louis Erard, Shinola.

Dual Level Channel

Most post-Subprimes brands have adopted a Dual Level Channel consisting of Zero Level sales through their own online store, and Two Level Channels with professional salesforces. Examples are Corniche, Daniel Wellington and SEVENFRIDAY.