Revealing how the replica watch industry operates

Store Manager Cody Updated on 7 12, 2013

(This article is relatively long and is currently the most comprehensive and detailed introduction to the replica watch industry on the internet. If you are interested, please read it patiently)

I have always wanted to spend time writing a detailed analytical article for honest clients about how the “ replica watch industry operates ”. Writing this article will help you better understand our work and the process a replica watch goes through when processing an order.
 

Over the past two years, the replica watch market and online watch shopping have undergone tremendous changes. The most important points can be summarised as two:
1, Replica quality is difficult to distinguish from genuine——So-called perfect editions, Noob versions, and ultimate editions emerge endlessly, priced from thousands to hundreds, flooding the entire internet. Friends who genuinely wish to buy replicas are left at a loss, looking at flowers through the fog, separated by a layer.
2, Genuine and replica websites are hard to tell apart— — antivirus software, 360 Security Guard, and others strictly block replica websites. A large number of replica websites (including ours) trigger risk warnings in browsers regarding false transaction information, leading to a massive loss of users and decreased customer confidence. *According to surveys by major replica site administrators, it was found that some competitors who failed to make money maliciously destroyed the market. It can be said that today's netizens find it harder to buy their favourite replica watches than 2 years ago. Fortunately, having experienced many ups and downs on the internet, we have always focused on our business while accumulating a large customer base, deeply winning the trust of consumers.

These articles are mainly to give back to customers who have supported us for years, preventing them from being blinded by hyped-up information on the internet. Its main viewpoints are unprecedented, so whether you buy our watches or not, it is worth a read.
 

What on earth do we do?
We are a replica watch supplier, not a manufacturer or factory. Although we work closely with the Noob manufacturer and some other manufacturers—such as having a high degree of involvement in watch production and prototype quality inspection before mass production—other dealers may or may not establish close cooperative relationships with manufacturers. However, our relationship with many manufacturers is quite close, and the one we work with most closely is the Noob manufacturer (regarding the specific names of the bosses, let's stop the insider details there).
 

Our sourcing channels come from manufacturers, other suppliers, and even factories, including complete watches as well as components.
 

Right, with the above relationships understood, more things can be explained below.
 

Regarding watch refunds
We do not have a factory, but we do have a physical retail shop in Zhanxi Watch City, Guangzhou.

We do not hold stock, except for some currently popular models. The reasons for not keeping stock include reducing unnecessary capital tie-up and inventory losses, as well as potential search risks. Therefore, once we obtain complete watches or components from manufacturers, payment must be made immediately and is generally non-refundable.

As we mentioned in our second point above, once we receive the watches from the manufacturer and pay for them, refunds are not possible. The best we can do is exchange the watch, provided that the new watch you want comes from the same manufacturer (since issues are easier to negotiate with the same source); of course, if it is a quality issue, we will certainly take responsibility for returns and exchanges.

Therefore, sometimes when customers request a refund, we are unable to process it.
 

Why does it sometimes take so long to receive a watch? The staff also find it difficult to tell me exactly when the watch will be delivered.

Because every manufacturer has their own way of operating, which is something we cannot interfere with. Therefore, our scope of control is very limited. Commercially speaking, we do not have formal contracts, which means it is difficult for us to demand specific outcomes from manufacturers (whereas authorised manufacturers might be bound by contracts). Ultimately, a smooth partnership depends entirely on mutual trust, rapport, and a shared professional consciousness. As suppliers, we are actually in the most difficult position; manufacturers deal with us, while we have to deal with thousands of customers. Why don't many factories handle their own distribution? Because it is difficult and frustrating, haha.
 

In fact, when you place an order with us, some can be processed immediately, while others require a long time to coordinate with the manufacturer. This is important. Please remember that our scope of control is truly limited, as this affects the time it takes for us to receive the watch you ordered. If your watch has defects, returning it to the supplier after our quality inspection will further delay the process (they need to inspect the watch again after we return it to them). Frankly speaking, many watches from manufacturers do not meet our standards (therefore, we must inspect the quality of the watches ourselves before shipping).
 

We are not intentionally slow, lazy, or inattentive to our work. As I mentioned, while suppliers improve their own efficiency and capabilities, we can only urge them and try our best to strengthen cooperation; our ability to intervene is truly limited.
 

Why am I told an item is out of stock after I have ordered and even paid for a watch?

In the replica watch industry, it is almost impossible to notify you in advance whether a watch is in stock. We can only do our best to collect and report stock shortages. Manufacturers produce watches on a large scale based on which models are currently the best-sellers. It is not surprising if the model you have your eye on is not a best-seller and is out of stock. We are trying to constantly update the products on our website to inform everyone about stock availability, and we have added staff to handle this issue. *Note: Other dealers will not add staff for this purpose.
 

What does the daily work of our team actually involve?

We might as well share our daily work. On average, we handle 100 emails and dozens of online customer service enquiries every day (including our days off on —— Sundays). In addition to handling these sales issues, people in our different departments perform their other functions (quality inspection, photography, videography, product descriptions, forum posting, repairs, working with manufacturers like Noob, etc.).
 

I can tell you with certainty that, currently, in the replica watch industry, only we have such a complete distribution, technical, and operational system. Generally, they are individuals or 2-3-person operations. When the volume of orders and repairs increases, they cannot guarantee the quality of the watches or the level of service they promised. You can understand this logic.
 

I want to buy many watches; I am a long-term customer. Can you give me a bigger discount or a lower price?
As mentioned in the previous point, to keep our business running normally and maintain our quality and service standards, we have to put in a lot of effort, even more difficult work than in ordinary industries. Honestly, the hiring process alone gives us a headache. The more orders we have, the more people we need to hire, and management becomes more difficult.
 

In any business, merchant profit and customer service are the most important things. This means we have to strike a balance; we must provide high-quality customer service while also having corresponding profits. We have hired over 10 people (more than other suppliers), with higher office expenses, promotion costs, manufacturer public relations costs, etc. We must maintain a balance, not just focus on the success of a single transaction.
 

You may not have noticed, but in order to close a deal, customer service often sells at a low price, and as a result, our profit margins are getting lower and lower.
 

Honestly, we are already at wholesale prices. The reason some people have lower prices than us is largely because the products they sell may look the same in description and appearance, but the workmanship, materials, and even the movement are inferior products. *I will explain this in detail later.
 

For long-term customers and those with large orders, we are very grateful for your continued purchases and attention. If possible, we will certainly appreciate your repeat business, and we will reflect this in other ways.
 

However, we hope you understand that we are not the money-making machines that some people claim, with high profits; this completely ignores our actual situation. From the perspective of mutual understanding, many dealers in this industry are very pragmatic; besides profit, they are also driven by the desire to survive. Therefore, we have long preferred to sell products at lower profit margins, continuously accumulating loyal customers and facilitating more transactions. I think you will understand that the cost of acquiring a new customer is much higher than the cost of maintaining an old one.
 

About the Manufacturers

By now I believe you have some understanding of the dealer's work. In your mind, you should have some interesting mental images of the manufacturers and factories.
 

Manufacturers come from diverse backgrounds, including Chinese, Swiss, American, Hong Kong, and Taiwanese business people, amongst others. Generally speaking, the production cost of a replica watch typically exceeds 50 ten thousand. Aside from market risks, the risks associated with piracy are also immense. Domestic businessmen generally do not dare to invest rashly; instead, overseas businessmen typically bring in substantial capital for mass production, distributing across multiple watch brands. The largest market for replicas has always been overseas, followed closely by the domestic market. It is fair to say that the vast majority of top-tier watches are exported overseas and command higher prices. Only a very small fraction actually flows into the domestic market. Furthermore, the items entering the domestic market tend to be mid-to-low grade, which relates to national conditions, purchasing power, and the watch styles favoured by locals.
 

The main manufacturers include the Noob factory, H factory, and Hbbv6 factory.

We exclusively partner with top overseas manufacturers (including the so-called Noob factory).
 

How Typical Replica Watch Manufacturers Operate

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The various factors above will directly affect us.
1, when we ask the manufacturer if an item is in stock, their factory may not have finished production yet and it will take some time to provide it to us.

2, some people at the manufacturing company might confirm that it is in stock, thinking there is no problem, but once they assemble it and find a part missing, they will reply to us that the watch is out of stock, and then we can only apologetically inform you that it is out of stock.

3, as for when it will be back in stock, this is also difficult to control. For example, all factories are currently finishing x number of hands, dials, or cases for the manufacturer's order, and need to schedule production for the parts of this watch. This is why it is sometimes difficult to estimate. There are many such problems.

4, if a watch is discontinued, the manufacturer cannot have the watch or parts. We all need to understand that the parts produced by the factory have a minimum order quantity, meaning that the accessory can no longer be obtained. In another case, even if the manufacturer has spare parts, they cannot sell them all because they may have just ordered new parts to complete the assembly of a whole batch of watches.

5, because it is mass production, there is no percentage guarantee for the quality of the parts (even for authorised manufacturers, it is the same). This is why we need to perform quality inspections ourselves. Imagine a worker in a factory feeling tired or depressed, causing a mistake (none of us are perfect, you should know what that feels like), and the watch may have problems. An example is that some workers might scratch the case back of the watch.

6, are there no solutions to these problems? No. Because many different manufacturers have produced the same watch, it is necessary to search for this part or this watch among many manufacturers. (This is what customer service usually calls 'looking for stock in the market'.) Usually, we sell popular or high-circulation, high-quality models. Generally, we can get the parts, but if there are no parts for this reason, I hope you can understand.
 

As you can see, the birth of a watch depends on different factories commissioned by many manufacturers.The manufacturer is the originator of the concept; they anticipate high sales for the watch and then liaise with various factories to determine feasibility and quality standards. By addressing these issues, they evaluate whether the watch can be brought to market. The manufacturer then faces the risks of profitability and the continuation of the project. In a best-case scenario, the watch sells well, and they continue to place orders with the factory. Otherwise, if hundreds of watches fail to sell, the project ends in failure.
 

One aspect involves the assembly of the watch after the components leave the factory, which will be explained in detail later. Simply put, this concerns the roles of the watchmaking studio and the watchmaker. They can be partnered with or employed by the manufacturer, or alternatively, by the supplier. In reality, suppliers, manufacturers, watchmakers, and even factories are often in collaborative or joint-venture relationships.
 

Regarding the Noob Edition, N Factory, and H Factory ……
In the market, the so-called Noob and H factories function as manufacturers. They are not physical factories themselves; rather, they act as the financial backers for watch production—selecting models, contacting workshops, verifying prototypes, and funding the factories for mass production. In reality, they provide the capital to produce the watches, but they do not participate in the subsequent sales and marketing stages. For instance: watches are distributed to various parts of the world in the form of individual components, where they are then assembled and retailed through local channels (thereby bypassing customs inspections). Because of this, the replica watch industry has been able to flourish worldwide with continuous demand. Yet many watches marketed as Swiss-imported or Hong Kong-assembled are actually manufactured in China and then imported back by us Chinese. Do you find that ironic? It is rather like when I was on a business trip to Switzerland, bought a shirt, and upon checking the label, saw it was Made in China. I had a chuckle at the time.*Naturally, this is not the case in every instance.
 

We can simply summarise the relationship as follows: the Noob factory (Noob edition) acts as a hardware producer, and suppliers worldwide procure their watch components, handing them over to watchmaking studios or watchmakers for assembly before suppliers officially release them for sale.
 

*Note: Because suppliers (such as Bialiurui) cater to different target audiences and employ varied sales methods, differences arise in the assembled components. Consequently, situations occur where the dial, hands, and strap are sourced from top-tier manufacturers (such as the Noob factory), while the movement is genuine Swiss stock. This combination constitutes a truly top-tier replica watch. Therefore, numerous factors determine the price of a timepiece. You must exercise discernment when making a purchase.
 

Deep Dive into the Noob Edition

Today's Noob factory is no longer the Noob factory in the true sense of the word.The so-called Noob factory at the beginning referred to the watch models funded and produced by those few bosses, and the components provided by them could be called Noob factory or Noob version. However, ever since various masters and bosses of all sizes began to find those few factories to produce components, the Noob version is no longer the exclusive property of those few bosses. That is to say, if you want to produce a Noob version of a Panerai, you just need to bring 50 ten thousand and find those manufacturing plants, and you can also supply a Noob version of a Panerai, or even call it a Noob+ version of a Panerai, an upgraded Noob version of a Panerai, or the ultimate of the ultimate Noob version of a Panerai.
 

Reading this, you might understand that the high-sounding Noob versions turn out to be so complex and mixed with so much exaggeration. The v3 version popular in the market at the beginning of the year has now become the v6 version by the end of the year, which means that the replica watch market is constantly improving, or based on different component customisations, everyone is shouting different names to sell their own products.
 

Top-tier replicas, ultimate editions, and perfect editions are actually the result of large and small manufacturers flocking in: everyone produces components in the same factories, purchases movements from other factories, and assembles them independently. Meanwhile, crucially, the assembled components—even from the same factory (even the Noob factory)—vary in quality across different batches, and many suppliers even choose substandard or defective components from factories to assemble into watches.
 

Finally, the seniority of the watch assembler also affects the final price of the watch. At this point, you should understand why replica watch prices vary.
 

The watchmaker and the watchmaking studio have a significant impact on the longevity of the watch.

The assembly of top-tier watches requires a high level of expertise and technical skill from the watchmaker, which cannot be achieved by an average worker. It requires a region with a deep-rooted watch culture and supporting industrial infrastructure. Relatively mature environments include Switzerland, Germany, Hong Kong, and Japan. It can be said that 80% of the world's authentic watches are assembled in Switzerland; for instance, French brands like Cartier and Chanel are assembled there.
 

Take a personal example from my life: my iPhone broke, so I took it to a repair shop where the technicians were young men. The interior of an iPhone is quite precise, yet the technician just tinkered with it, replaced a part, and considered it repaired. The most frustrating problem followed: after the repair, various issues arose, such as the microphone not picking up sound clearly and the need to plug and unplug the charger multiple times to get it to work—presumably because the charging component was not installed securely. This example shows that even for something not as precise as a watch, such issues occur. Imagine the level of skill required from a watchmaker to maintain the quality of a precision instrument you intend to wear for many years.
 

Different manufacturers work with or employ different assembly watchmakers and studios from all over the world, divided according to their customer base or local market demand (which is why watches assembled in Switzerland or Hong Kong are more expensive than those from average online shops). Manufacturers and sales terminals like ours drive the constant improvement in the quality and accuracy of replica watches. We are familiar with watchmaking studios and watchmakers in various regions, maintaining frequent business dealings and honest, close cooperative relationships. (It is worth noting that few practitioners can communicate with international personnel in English.)
 

The assembly stage is often overlooked. However, regardless of how high the production standards of factories like N-factory or H-factory are, or how excellent their craftsmanship is, the final stage must always be carried out by a watchmaker to assemble the complete watch. We can summarise two points: movement assembly and complete watch assembly are the core elements of top-tier replicas. The movement determines timekeeping accuracy and is the heart of the watch, while assembly ensures water resistance, shock resistance, and more. (Currently, there are only a few major factories; as long as the materials and manufacturing processes come from these factories, the quality is similar.)
 

The watch models we procure are primarily for the European and American markets, and are generally produced and assembled in regions with mature watch industries. This ensures your watch is authentic in its production. Can you imagine your Rolex Submariner being finished by a young technician in a dirty, chaotic basement with no quality control and no pursuit of craftsmanship?
 

Conclusion:
We hope this helps you understand the replica watch industry and our work. We believe it is worth taking the time to explain this in detail. We understand that the replica watch industry can sometimes be frustrating, and both customers and suppliers have moments of disappointment. Even many in the industry go through difficult times (whether it is us or other manufacturers), but I hope this information provides you with a better understanding of the replica industry. If this can foster a more harmonious relationship between individual customers, procurement clients, and us, that would be ideal.
 

Thank you!