Orient Watches

Orient Watches traces its origins back to 1901, when a wholesale watch shop called Yoshida Watch Shop, opened in Tokyo. Forty-nine years later, Orient Watches was established in as Toyo Tokei. The company adopted the Orient name in 1951. Seiko Epson acquired a majority stake in Orient in 2001, and owned the entirety of Orient Watches by 2009. Many YouTube watch reviewers and those new to the watch hobby incorrectly believe that Orient is a subsidiary of Seiko Watches.

Seiko Group is a Japanese conglomerate known as a Keiretsu. Orient is actually controlled by Seiko Epson, which itself a collection of companies that collectively market and manufacture Orient watches and electronics under the Epson brand. This complex structure creates an odd relationship in which the main parent company owns two competing watchmakers that do not share resources while still creating a hierarchy that seeks to avoid cannibalizing sales of the much larger Seiko Watches.

It would certainly seem like this type of arrangement would stifle Orient’s capacity to flourish, but I think it creates a very interesting opportunity. Over the past 5 years, Seiko has embarked on a journey further upmarket, leaving many of its value-focused enthusiasts behind. Ultimately, watches are a want, not a need. As such, enthusiasts are a very large part of the market and must feel represented by the product.

The interesting opportunity for Orient here is to replace it’s “high end” brand, Orient Star, with new brand, called Yoshida Tokiwa. A name that is new and old at the same time. It could launch the brand with two dress pieces in 36MM and 38MM, in both small seconds and a simple three hander. This new brand could utilize existing movement platforms, finished to a much higher degree of detail, offering a round and rectangle case also finished to a higher standard that mainstream Orient products.

The market is showing a lot of interest in Japanese micro-brands. The market is also very interested in dressier style pieces. Yoshida Tokei would represent a convergence of these two market forces, and due to Orient’s size and manufacturing capacity, it could offer these pieces in the $400-$1250 USD range. Under cutting competitors, allowing Orient and ultimately Seiko to capitalize on a trend without disturbing the existing business of either family of brands. Over the next few years, Orient should expand the Yoshida Tokiwa line to include sports, tool and dive pieces, all with higher level finishes at very reasonable prices, less than that of Seiko Luxe products. But it would always be a very focused, small collection.

But what will become of the great Orient Star? That will become an enthusiast driven, e-commerce only brand that sells, pre-ordered, limited run watches based on the user generated concepts, and community participation. Orient Star will become a direct link to the portion of the market the feels left behind by Seiko Watches new direction. The data gathered by Orient Star will act as a barometer that benefits Orient and its cousins at Seiko Watches.

Under Jean Claude Biver, Tag Heuer experimented with this type of business model with the Autavia Cup. This is something daring and uncharacteristic for most established brands. It is also and very difficult for a microbrand to copy due to Orient’s vertical integration and manufacturing prowess.

Microbrands are collectively the biggest competition to Orient’s current market position. Orient Star can plan and produce new models in rapid succession, and only manufacture pieces in quantities that have been presold. The consumers in this segment of the market are very familiar with the pre-order model, so it will not require any education or adjustment. This new business model for Orient Star makes the entire company far more competitive with microbrands and utilizes efficiencies that only a large watch company can deploy.

By deploying a new brand, Yoshida Tokiwa, and repurposing Orient Star, Orient can become the first few rungs on the watch collecting ladder, that were previously occupied by Seiko. It can gain new ground and become a household name in two separate niches that it otherwise is absent from.