The Replica Watch Industry Demystified

Today to give you a demystification of the replica watches industry, I believe that most people will be very curious about how this industry works.

The First question: What is a "factory"?

First of all, what exactly is a 'factory'? It might be more appropriate to call it a 'studio.' Their primary role isn't to create new products but to assemble them from existing parts. Most legitimate factories in China produce separate components such as crystals, cases, crowns, backs, bracelets, and crucially, movements. In China, it’s legal to produce watch parts, but it becomes illegal when a brand logo is affixed to an assembled watch. To sidestep these legal issues, various entities are formed—often these are small projects led by a few individuals—who buy genuine watches, dismantle them, and meticulously study each component. Decisions are then made whether to replace or manufacture them from scratch. This process also involves designing specialized tools, threading for screws, and detailed metalwork to sculpt movements that mirror the originals. However, to an experienced watchmaker, these replicas are easily identifiable by their movements. Typically, these operations are small, with only a few workers who specialize solely in assembly. Notably, many distinguished watche repair experts in Guangzhou have contributed to creating these clones at some point.

Understanding "Factory" Operations

Meeting the criteria to be called a 'factory' involves several stringent requirements. While there are approximately 1,000 such entities in China, only notable ones like VS, Clean F, PPF, ZF, and AF truly stand out. These factories are not only adept at assembling watches but also excel in meticulously restoring them, paying attention to even the smallest details such as biometric instrument markings and movement modifications. The high prices of these watches are a testament to the extensive effort and expertise invested in their replication, making them almost identical to the original models.

These operations occur under challenging conditions, often in undisclosed locations to sidestep legal complications. Once assembled, the products are transported to a secure, isolated warehouse. This detailed and secretive process is what makes these replicas both expensive and highly sought after.

Second question: What is a warehouse?

What exactly is a warehouse? Essentially, it's a storage space where factories send their products once they have produced enough. The process then restarts, and the warehouse quickly fills up with products. Each warehouse gathers items from various factories. The owners and managers of these warehouses face significant risks. They not only risk law enforcement interventions but also have to manage large sums of money. In China, where financial transactions are tightly monitored, this is particularly perilous, as high rewards typically come with high risks. Additionally, warehouse owners often rely on 'factory agents' who handle sales, manage inventory, and relay market demands back to the factories. Access to these warehouses, and certainly to the factories themselves, is nearly impossible for outsiders, ensuring the operations remain confidential and secure.

Third question: What are sales (TD)?

In this industry, sales roles are quite strategic and form the third tier of the business hierarchy. Sales strategies involve maximizing product exposure while maintaining the anonymity of the sellers. Salespeople typically reveal themselves only during the actual transaction. There are several distinct types of sales roles in China:

Low-Cost Imitations: Sellers stock up on cheap clones, like watches with quartz movements and alloy bracelets. These items are inexpensive to produce, costing between $10 and $20 each. Sellers typically offer these at night markets, where they can sell for around $100 each. The risk is low; if caught, they might only face a minor fine. This type of sale is quite common in the lower tiers of the market.

Backpackers: These sellers specialize in high-quality replicas, often referred to as super clones. A prominent place to find them is in Guangzhou Watch City. They approach potential customers, usually tourists, with basic English and propose transactions in private spots like alleyways, hotels, or even restrooms. Profits can range from $150 to $300 per item.

Online Sales: With the rise of the internet and social media, the traditional "backpacker" is now moving towards online sales. This transition reflects the broader industry shift as sellers adapt to new technologies to reach a wider audience while enhancing their stealth.

The third kind: at present, there are many ways to sell network sales, live broadcast, community media, and even packaged as a second-hand seller to sell, in short, a variety of methods, the price is also very confusing, I believe that everyone is familiar with their sales, this kind of business, the most important thing is: how to obtain the trust of the customer.

Replica watches are a testament to China's advanced production technology. It's easy to underestimate the skill involved in assembling these tiny parts, but the craftsmanship in replicas like VSF and CF’s Submariner, BTF’s Daytona, or PPF’s 5711 is nothing short of impressive. These watches are so well-made that they could even baffle an expert appraiser.

For most of us, spending a hundred thousand dollars on a watch is out of reach. However, purchasing a replica that is 99% similar for just one-twentieth of the price and of course, if I could afford it, I'd buy the genuine article, but alas, I don't have enough right now, lmao.

The above article was created by Time-mimic, thanks to Reddit #Chinatime Dandan for making the changes, if reproduced, please cite the source of the reproduction.