Timepieces tell the Hong Kong story

Watchmakers have come together to build a brand identity and take SAR brands to the world with better innovation and designs. Liu Yifan reports from Hong Kong.

Walking into an industrial building in Chai Wan, you would never think you'd find a boutique watch store like this - the brightly-lit room abounds with self-designed tourbillon timepieces, many of which feature traditional Chinese symbolism, from swirling dragons and phoenixes to blue and white porcelain.

The owner, Memorigin, is one of a few Hong Kong watchmakers that have brought its brand name to the world stage.
"The recipe is to tell our own stories by bringing together fine Chinese craftsmanship and precise Western tourbillon watchmaking techniques," says Memorigin's 37-year-old founder, William Shum Wai-lam.

Shum, born and raised in Hong Kong - a city known as the No 1 market for Swiss watches - saw "originality" as the centerpiece of Memorigin. He founded the brand in 2011 as an iteration of his father's factory in Hangzhou that began making tourbillon movements in 2000.

An 18th century invention, the tourbillon is a complex gravity-countering mechanism considered to be one of the most-valued features of premium-priced timepieces.

Like many Chinese manufacturers, Shum's father mastered the technical expertise to produce sophisticated collectible watches, but has no experience in designing and marketing his own creations.

The idea that bonds luxury watch designs with Chinese characteristics struck Shum after witnessing overseas watch brands selling their models at sky-high prices, with some priced in millions of Hong Kong dollars. "Given that we boast world-class craftsmanship, why don't we just make our own watches?" he asks.

Memorigin now offers around 70 tourbillon models priced from tens of thousands to more than HK$3 million ($385,727) each, that can translate into a far bigger profit than labor-intensive manufacturing work would do. The inspiration for its best-seller Stellar Series Imperial, which sells for HK$49,800, came from the traditional Chinese philosophy tian yuan di fang, which literally means that heaven is round and the earth is square, deriving from the Chinese yin and yang theory.
"Since its first release in 2017, more than 5,000 of those watches have been sold," says Ivy Kung, business development manager of Memorigin.

Over the past decade, Memorigin has become emblematic of Hong Kong's innovative watch industry that is keen to move upmarket, spurring a cohort of local watchmakers to join the chorus of those building a brand identity. For instance, EONIQ, among other watch brands, is adapting to the growing demand for customization experiences.

"Customers can gain a deeper understanding of the craftsmanship of watchmaking through these hands-on experiences which, in turn, help brands and retailers breed customer loyalty," says Nicholas Fu, an economist at the Hong Kong Trade Development Council.
Apart from citing other local companies selling their own brand watches in the mid-to-high-range market like Infantry and Maven, Fu says there are also cases where Hong Kong companies have acquired some Swiss watch brand names.
"That's a good try for Hong Kong brands to extend their marketing and distribution network, or get access to better technology and designs," he says.

Young watch brands' original designs and branding strategies have rejuvenated the industry by conquering many of the problems that held back older generations of local watchmakers. However, running luxury businesses is not always plain sailing.
The special administrative region, once a tax-free haven for shopping, has witnessed a sharp decline in inbound tourists and sales of watches as the COVID-19 pandemic battered the tourism and retail industries.
"It has been a rough patch for watch companies in the city," notes Shum. "Even some Swiss big names have reduced their presence in Hong Kong in the past three years."

According to Hong Kong Census and Statistics Department data, the total value of retail sales of watches, jewelry and valuable gifts plunged by more than half from HK$85.33 billion in 2018 to HK$38.78 billion last year.
"You can't just wait about and get fixated on local watch buyers. It's high time to take the initiative to explore markets outside Hong Kong," says Shum.

Only a few days before the interview with China Daily, Shum attended a forum to discuss how Hong Kong businesses can reap the benefits of the Belt and Road Initiative - a policy proposed in 2013, under which China has signed cooperation documents with more than 180 countries, regions and international organizations, with its main goals being unimpeded trade, policy coordination, and closer people-to-people ties.

To promote the internationalization of Hong Kong-made watches, the SAR government has introduced subsidy programs like the SME Export Marketing Fund to provide financial assistance to Memorigin and other enterprises that allow them to participate in export promotion activities.

The tourbillon watchmaker has established sales points in more than a dozen economies involved in the Belt and Road Initiative.
"On top of the Belt and Road economies, we also see strong sales performance in Japan and Germany," notes Shum. "The total sales volume of tourbillon watches could range from thousands to tens of thousands every year."

In his view, what should also be a priority for Hong Kong watchmakers today is to tap the Guangdong-Hong Kong-Macao Greater Bay Area. Businesses normally see the sweet spot of the Greater Bay Area as the social, cultural, and linguistic ties through which cities are closely bonded: Cantonese is widely spoken, while a sense of group identity is shaped by the love of Cantopop, Hong Kong movies and television series.

This is clearly shown by Memorigin's crossover designs that found an echo in the Greater Bay Area, featuring kung fu star Bruce Lee Siu-loong and Hong Kong sci-fi action thriller Warriors of Future.

These creative marketing approaches alongside a foray into the global arena, Shum adds, have afforded Memorigin a first-mover advantage that merits other indigenous brands' attention.

He said he believes Hong Kong's watch industry has plenty of room to grow, just as the spectacular run of Chinese high-end manufacturers has been part of the country's economic miracle.

Many of those created in China have raised their international standing, such as telecoms equipment giant Huawei Technologies' mobile phones and China FAW Group's luxury car marque Hongqi.

"It's fair to say the rise of our watch industry is gaining pace, but it will definitely not be easy," Shum says. "To grow bigger, patience is one thing. And what's more important is to keep designing original works and embracing an innovative mindset."

Contact the writer at evanliu@chinadailyhk.com