Salesxit, On The Limitations Of Traditional Distribution And A Possible Exit Plan

In our post-industrial era, watchmaking CEO’s have increased profit through intensive distribution, but the decline in sales that started around 2013 might be an indication that this model has spread too thin. Now that brands count more than performance or place of origin, watchmakers are playing against designer watches and pop watches, while having to inflate the price to meet high marketing costs and middlemen commission. We explore an unconventional idea that could be a way out for all parties involved and reap benefits for the consumer.

Inflated prices, generational shift and opportunities

Over the last 20 years, the traditional watch distribution model has slowly been inflating prices and breaking the customer’s expectation that a watch should not cost more than 2 to 4 days of wages. By retreating to safe but boring designs, established brands have left a void in the creative field and in price segments that watch startups have started to fill in.