Beaufort Watches founder on growing the ‘untouched’ Kiwi market

Robert Kwok, 25, was still a business student at AUT when he decided to start Beaufort Watches. After a successful Kickstarter campaign, he went to Hong Kong to explore the global craft.

The online retail
business took off in the United States, Asia and Europe, and opened its first New Zealand store in Ponsonby last month. Kwok says a drop in demand for luxury watches has led to major staff cuts for overseas manufacturers.

Where is Beaufort Watches based?

I’ve opened a physical shop here in New Zealand, but I started internationally and am now moving domestically.

When I launched, it was to a predominantly United States market, so 40 to 50 per cent of my customers for the past few years have been based in the US because I’ve been operating online.

About 30 per cent [of customers] are spread over Europe, then the rest in New Zealand, Australia and Asia.

How did you raise enough capital to start the business?

I launched the business on Kickstarter, where I got the funding and traction. Many watch enthusiasts are based in the US, so that’s where I got started.

The second campaign ran last year and raised $148,000.

I was working with a few pretty well-regarded watch reviewers. They gave me really good reviews. .

How did you get into business?

My goal was to graduate university having started a business. I started uni in 2016, and 2018 is when I put it on hold. I was studying business at AUT.

I chose watches because I was working at a start-up. I had made a little bit of money and wanted to treat myself to a watch, but I couldn’t afford anything I liked.

Then, as you do, I started looking at more expensive watches and what it would be like to make a watch.

How did you start making your product?

I studied watchmaking online and took a course to learn how everything works. Then I pulled my money together and bought a one-way ticket to Hong Kong.

I have an uncle who lives there – that helped me afford to stay for about six months.

The first month, I was meeting with as many manufacturers as I could to understand the landscape – it was a bit of a learning curve.

I had to figure out how to negotiate with pretty seasoned businesspeople. It was a big information dump in that first month. Then, I found a manufacturer I was happy with.

I started with the components produced and assembled in Hong Kong, and the movements came from Swiss manufacturers.

I spent the next five months refining my watch design. My first few designs were pretty ugly. But I’m pretty happy with what I ended up creating, and that’s what I have today, which is the Aerotimer.

That was the very first watch I designed back in 2018 – then I launched the business in 2019.

How much did it cost to start the company?

It’s pretty surprising, but it cost me about $5000.

That was enough to make the first prototype.

They’re all still manufactured in Hong Kong. The movements are still from Switzerland, and they are now assembled in New Zealand.

How are the current economic conditions affecting the industry?

Sales have dropped a fair bit this year. That’s the same with everyone else in the industry, besides a few brands that are killing it.

I went to Hong Kong earlier this year and met with quite a few manufacturers, and everyone kind of had the same story.

Manufacturers that work with really large clients have been hit the hardest.

I met a couple of manufacturers that have taken a 50 per cent hit in revenue. Brands have a lot of leftover stock that hasn’t sold, so they’re not putting in orders for 2024.

Late last year was when [watch brands] slowed down orders, so I’m seeing a lot of manufacturers having layoffs.

The main thing that I’ve been hit with is that people have less disposable income. One of the first things that goes is luxury products.

How does the New Zealand market compare to the overseas market?

A lot of people are into watches, but they don’t know about the ins and outs of how a watch is made, what makes it run and what makes it fascinating.

The showroom is a hub where people can get together and share their passion for watches, especially in Auckland.

I don’t think we’ve had that in the past, so there’s probably a lot of room to expand here. My overarching goal is to share my passion and educate the market about watches.

Alka Prasad is an Auckland-based business reporter covering small business and retail.