Second Hour Updates

Hello all

Wow, It has been an incredible couple of months since the Gin Clear Diver campaign launched on Kickstarter and was fully funded in 33 minutes. Between finalisation of our production order nearly four weeks ago, to the ongoing success of our pre-order service at indemand and the positiveresponse to the design renders of our next watch - the Giant Stride - our hard work is finally paying off in ways that exceed our expectations.

We’re extremely grateful for and humbled by the positive response we’ve received and are working around the clock to honour the commitment of our supporters by delivering the Gin Clear on time and according to the quality standards we all demand. Second Hour Watches has now come to life as a fully fledged watch business and this means our future releases, service and support of existing models can continue and flourish.

2020 has been a year of incredibly mixed fortunes, around the world and close to home. I know we each have stories of being impacted by the global pandemic, and I have some of my own. I for one remain hopeful that we will begin to see an uplift in both the personal and economic well being of our friends and colleagues around the world before this year is out. Even now, here in Australia, we’re seeing signs that a turn around is beginning to emerge.

We’ve witnessed, in the watch industry, some fairly major shifts in priority due to the virus - from the cancellation of Baselworld and Watches & Wonders 2020, to delays in new product releases from some major Swiss players. It’s reassuring that our trusted friends at Seiko continue to push forward despite the current troubles and pump out a number of intriguing and attractive models and ranges. While sales volumes may have been lower than planned, these releases have nonetheless seen great success, with some models (new Seiko 5 fixed bezels) selling out in days.

And crowdfunding continues to be a source of interesting and affordable designs, with the enthusiasm of watch lovers not significantly dampened by global and local forces. Supply chains in the primary source countries for watch components, specifically China, appear to have stabilised relatively quickly, due in large part to that nation’s assertive measures in containing the spread of the virus.

On the surface this would seem to bode well for watch makers reliant upon Chinese production capabilities (pretty much every brand to some degree). However, with demand falling in the west and many brands downsizing or cancelling orders there will be a secondary and doubtless more dramatic round of plant closures and rationalisations in China, the exact depth of which won’t be known for some time. We may see watch brands who survive having to source new suppliers in the attempt to revitalise injured supply chains.

What is telling is the number of manufacturing operations making direct contact with brand owners offering free design, prototyping and low MOQ production services in the hope of attracting new business to offset lost, delayed or downgraded orders. Some of these manufacturers have sophisticated and technologically advanced manufacturing capabilities, which leads me to believe they have been the victims of Swiss order downgrades (Swiss watch exports dropped ~22% in March - directly due to the Chinese lock down). This situation won’t last, with many Swiss companies already preparing for a more positive future.

For many this is not the first time they have faced major drops in demand. Certainly, for major conglomerate players such as Swatch, Fossil and Richemont, who have a diverse range of offerings covering multiple price points, ripples of this scale can be more readily absorbed. Self preservation through scaling up or down in an agile manner is another key facet of these multi-product operators that guards against volatility in demand. It will be some of the smaller scale, less efficiency focused family owned / independent brands who struggle to remain competitive in the face of these forces. The next twelve months will be very telling in this regard.

The Giant Stride
What is certain is that now, more than ever, affordability is critical for watch lovers. At Second Hour Watches affordability is the mainstay of our approach to watchmaking. we have just completed the designs and begun second round prototype production on our second watch, the Giant Stride: a dual crown compressor style diver into which we have poured our heart and soul this past year. With some amazing specifications and four captivating dial options this is going to be one hell of a release.

The prototypes are due for completion in early August and, as we did with the Gin Clear Diver, we will reveal the complete watches first to our subscribers. While we would love to launch late this year we remain cautious and plan to assess the situation in a couple of months. At this stage it’s looking like an early 2021 Kickstarter launch. in the event we can launch earlier we most definitely will.

Gin Clear Diver Winter Sale
Pre-orders for the Gin Clear Diver are still available, but numbers are now becoming very limited. We’re currently running a sale to celebrate Winter down under and you can pick up the Gin Clear at a massive 20% off - here.

In addition, we have two future releases currently being built as prototypes, with early indications these are going to blow everyone away with their unique designs, quality and, of course, affordability.
We’re currently rebuilding our website to feature a store front for pre-order of watches and purchase of our watch straps. Stay tuned for that one, it’s going to be fantastic.

We look forward with cautious optimism to the coming six to eight months knowing, as you do, that a calm and caring approach is critical in these uncertain times. Get in touch with us if you need information and assistance with anything relating to our watches. Stay safe and healthy, and let’s all work towards getting this amazing world back on its feet.

Best regards

Peter Sargison
Second Hour Watches