Zilos Capital Provides Seed Funding to Niche Watch Brand

With dozens of well-established watch brands, and several new micro-brands being launched each year, is there truly any room left in the industry for yet another watch brand?

We think so.

At Zilos, we employ simple investment tenets – and one of those is to look for mature market segmentation ventures.

Despite the maturity and vastness of brand options in the watch market, there still exists at least one segment of prospective benefactors that is (a) in the hundreds of millions in size and (b) hasn’t authentically been offered a product that embodies who they are as people.

Established watch brands, despite being years for centuries and on the forefront of innovation, are committing the rookie mistake of being just another provider of another product. Most are representing the same core value; vanity and boastfulness. Although it works, and although a ten figure empire can be built from it; it’s kind of empty (and boring), right? By trying to appeal to buyers broadly, they’re essentially appealing to no one precisely. This creates opportunity for niche brands, because niche brands are content with focusing on their respective benefactor segments.

Most watch brands are part of a group owned by a parent company now – and this only perpetuates the dynamic; because the values of the parent company preside over the subsidiaries. The predominant motive behind inter-industry acquisitions is sadly first and foremost to only serve economic interests. We are in staunch opposition to this approach, and will only pursue ventures where there is mutual and authentic alignment.

Fortunately for our new portfolio company (name to be released soon), the current watch industry dynamics have abandoned a seismic opportunity for a brand that authentically (critical aspect) aligns with the desires and needs of their respective segments.

Watch brands would be wise to learn from Roger Smith, a product that not only aligns (and with uncanny authenticity), but screams out to the purist watch collectors of the world. We’re big fans of Roger’s methodology, skill, an authenticity. Roger found his benefactor segment by doing what he’s passionate about; making handmade watches to the purest extent. Although no doubt ambitious, value congruence appears more important to Roger than money – and as an interesting consequence, his business appears to be thriving.

Our investment methodology tends to lean toward contrarianism. We see the watch industry’s greatest flaw today, the lack of authentic benefactor focus and segmentation, as an incredible opportunity. Our new portfolio watch company will generate value with a niche brand that is born to authentically serve a specific benefactor segment that’s otherwise been overlooked.

What’s even better is the fact that not only does the watch brand share our values at Zilos Capital, but so does the benefactor segment. This makes for a truly congruent venture where everyone is committed to the same goal – and it’s not to get . .(yawn) . . rich.

Hundreds of people have asked us, “What should I invest in?” Most gurus would try and steer people towards a specific asset class based on the historic return profile. We disagree with this shortsighted approach. Our perspective is to invest in things that interest us and are aligned with our personal values first; then we talk numbers.

More details about our niche watch company will be released soon. For the right person, the product will be a perfect fit. For others, it will not – and we find much solace in that. In fact, we’re elated about it.

Blessings.