The document discusses terms related to watches, including chronographs, movements, and retail prices. It identifies opportunities and challenges for finding an affordable, reliable automatic chronograph watch under $350 by sourcing production from China for under $80 per piece and keeping selling costs under $50 per piece. Key details include using a Seagull ST25 movement, producing an attractive design, and dealing with minimum order quantities from Chinese factories.

1. Janis Trading Company
Watch Importers &
Distributors

2. Terms
 Chronograph: A wristwatch with a
stopwatch function.
 Movement: Internal Watch Mechanism
 Quartz: Battery-powered
 Mechanical: Automatic or Hand-wind
 Autoquartz: Semi-automatics, Mostly
Japanese

3. Chronographs
 Functions may include
date, rotating bezel,
luminous hands &
markers, slide rule,
tachymeter & more.
 Attractive casual,
sporting & high-end
dress watch designs.

4. Movements
 Most watch brands do NOT make their
own movements, especially automatic
movements.
 Most movements come from Switzerland,
Japan or China.
 ETA, the largest supplier of Swiss
movements began cutting production &
sales to non-Swiss brands in 2010.

5. Made in China
 Most watches are now made in
China, where quality has steadily
improved for years.
 Experts agree Asian movements are
just as reliable as Swiss movements
at a fraction of the price.

6. Retail Prices
 ETA auto-chronos now >$750
 Lower-cost Swiss auto-chronos >$450
 Prices for Quartz & non-Swiss watches can
also run very high.
 “Good Value” in attractive & reliable auto-
chronos, especially casual and sporting
watches, is hard to find.

7. Watch e-Tailing
 Most watches, especially sub-
premium brands, are sold online.
 Online selling & fulfillment costs are
incredibly low.
 Markups are huge, from 300% to
1000% of dealer cost (retail is 4x to
11x factory prices).

8. Watch Buyers
 Millions of watch enthusiasts, many who
collect multiple pieces.
 Hundreds of online forums where
enthusiasts share information.
 Many hate sub-premium brands for ugly
designs, fake Swiss names & huge
markups.
 Chinese brands are winning fans with their
handsome dress-watch designs, solid
construction & low prices.

9. Auto-Chrono Choices
 Expensive Swiss-Made Brand
 Ugly & Over-Priced Fake-Swiss Brand
 Japanese Semi-Automatic Copycat
 Up & Coming Chinese Dress-Watch
 Cheap, Ugly & Unreliable Garbage

10. Challenge
 Find a reliable & attractive casual
automatic chronograph for <$350.
 Source production for <$80 per piece.
 Keep selling costs <$50 per piece

11. Opportunity
 Attractive auto-chronos w/ the best
movements can be sourced for $40-
$70/piece, including escrow, 3rd party
inspection & shipment.
 Online selling costs are between $25 and
$50 per piece including storage,
fulfillment, customer service & returns.
 With retail prices of $300-$330, gross
profit per piece is >$200

12. What $300-$330 Buys

13. Features
 Seagull’s Premier 38-Jewel ST25 MVT
 Stainless Steel Case
 Sapphire Glass
 Ultra-bright Hands and Markers
 Water Resistant to 20 ATM
 Leather or Silicon Rubber Strap
 Distinctive & Stylish Packaging
 Custom Logo & Branding

14. Hurdles
 Chinese factories have large
Minimum Order Quantities (MOQ),
often 100-200 pieces per design.
 They demand 30% paid pre-
production upon sample approval,
with remainder paid pre-shipment.
 Production takes 60-70 days.