How a luxury watch company expanded into the Chinese market
Watch Co.* is a medium-sized producer of luxury timepieces. The company focuses on traditional styles of wrist and pocket watches, currently selling in several high-income countries, Hong Kong, and wealthy urban areas in Mainland China.
The company was already present in Hong Kong and, having found success there, wanted to expand into Mainland China, a neighboring market. However, it was unsure if it was financially feasible to enter Mainland China and, if so, how to successfully expand their business into the market.
We first applied a multi-step approach to assessing the feasibility of the company entering the Mainland China market. This included analysis of their existing business and prevailing market conditions in Mainland China, among other important factors. We concluded it was feasible for Watch Co. to enter the market under specific conditions and helped the company develop a practical strategy for entering the market and laying the groundwork for steady long-term expansion.
Working with Mersol & Luo, Watch Co. successfully expanded their business into the Mainland China market, establishing a presence in wealthy coastal urban markets. Sales from these markets are now enjoying double-digit year-on-year growth and contributing a steadily growing share of the company’s annual revenue. Our team continues to help them adapt their strategy to changing conditions in the local market and increase brand awareness and value among consumers.
Impact in 16 months
*We protect the confidentiality of our clients. Although the name has been changed, the results are real.