How Nationwide Chinese language Watch Model Rework its Gross sales Mannequin underneath New Ecommerce Period

Tianjin Seagull Watch Group is a watchmaking firm situated in Tianjin, China. Based in 1955, it’s the producer of the primary made-in-China watch. Now it’s the world’s largest producer of mechanical watch actions, producing one-quarter of complete world manufacturing by quantity.

In 1973, Seagull model was accepted by the State Council. Within the 1990s, digital watches appeared, and Seagull additionally joined the wave, however because the market regularly turned saturated, China’s digital watch trade started to shrink.

China’s first made-in-china watch. (Supply: An Shun)

Wang Deming, then the final supervisor of Seagull, determined to cease the manufacturing of digital watches, and return to rent masters to provide mechanical watches. In 2007, Seagull produced the “three classic watches in the world”: tourbillon, repeater and perpetual calendar.

Since then, Seagull began to make a revenue. Components manufacturing additionally improved: 1 / 4 of the actions on the earth come from Seagull, and lots of high-end watch manufacturers use elements manufactured by Seagull.

Seagull began its foray into e-commerce in 2008. Nevertheless, with rising visitors prices and fee bills, the corporate’s on-line enterprise turned increasingly difficult.

What’s extra, with rising market penetration from mechanical watch makers, Seagull’s common worth additionally declined. As recalled by one Seagull supervisor, the typical unit worth was 2,400, 1,700, and 1,000 yuan in 2008, 2014 and 2019, respectively.

The COVID-19 pandemic additional attributed to this development. Because of the pandemic, shoppers turned extra cautious of their spending habits. Seagull started to push decrease priced gadgets to shoppers whereas additionally contemplating new distribution channels.

Beginning this April, Seagull distributor began to open Pinduoduo Retailer. Within the first two months, month-to-month orders have been solely round 50. Since June, the service provider started to allocate extra sources to Pinduoduo and joined the 10 billion yuan Subsidy Marketing campaign.

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In keeping with Wang Zelong, one Seagull distributor, visitors exploded in June, with the variety of orders near 650 and the unit worth rising to 880 yuan. Wang believed that presently, Pinduoduo’s month-to-month gross sales started to meet up with Taobao. A males’s watch priced at 795 yuan has grow to be the second-best vendor of mechanical watches on the platform. The offline worth of this watch is 1,200 yuan, whereas on different e-commerce platforms it ranges from 618 to 819 yuan.

Wang mentioned he has by no means seen the quantity of recent shops rise so quick in his 10 yr e-commerce expertise. “The purpose of offering such low prices is to try new models and support new stores, and the results are way better than expected,” he mentioned.

”I believed it might be good to promote 5 to 6 items at 800 yuan every day, however I didn’t anticipate to promote 20-30 items per day.”

Zhao Guangchen, accountable for Seagull’s e-commerce platform enterprise, mentioned that final yr, Seagull’s on-line gross sales surpassed offline for the primary time. However after Covid-19 on-line gross sales began to say no. Pinduoduo will assist to spice up with the gross sales within the second half of the yr.

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