The story of MVMT has become a legend for millennials when we talk about crowdfunding and the success of start-ups, so that it recently made them on 2017 Forbes 30 under 30 list. Since then, their continued growth has been based on their ability to take advantage of today’s social media driven start-up culture, which ultimately guides other aspiring future entrepreneurs who want to start their own watches business.
Generating the Idea
“MVMT started with a simple problem,” LaPlant recalls when the company was founded in 2013. “Jack and I can’t find a stylish, well-made and affordable watch that anyone like us or a friend just out of the school. Most millennials can’t spend $500 or $1000 on a single watch. Although Jack and I are not watch nerds, we see watches as a great crowd funding space, and we said “we can do this”.
Their brainstorming took them to the timepieces industry. They honed the fashion of the millennial generation and the demand of their generation for an affordable watch that could be more like a fashion watch than a traditional watch.
Recognizing that direct to consumer retail has proven successful in other industries, they regarded this as a great opportunity to sell high-end watches at affordable prices.
Many watches on the market cost around $300, but if they are sold directly from watch manufacturers to consumers, they can reduce the price by two-thirds by removing the mark-up from distributors and the traditional retail models.
Start to Launch Their Watches Through Crowdfounding
Crowdfunding isn’t a social media per se, but it’s an important channel in MVMT’s story and the way it happened is important both in the early success of the company, but also in the way they handled other social media platforms later on.
Without any cash or external investment to launch their new product, Kassan and LaPlante turned to crowdfund with their new concept: beautiful, high-quality watches at an affordable price.
However, the most common crowdfunding website, Kickstarter, refused their pitch. And they didn’t just refuse it once, they refused it TWO TIMES…
They applied twice to launch on Kickstarter, but were denied both times. So they decided to turn to Indiegogo.
They fixed their initial goal at $15,000. Within 50 days of launching the campaign, they had raised over $200,000 from around 3000 backers, becoming the second most-funded fashion brand on Indiegogo in 2013.
What’s very important to understand here is that MVMT’s founders were not a bad crowdfunding product as Kickstarter had suggested with their refusals, but they simply needed to find the right platform with the right audience for their product. Following the tips from MVMT founder:
- Reach out to family and friends from the start. Don’t be afraid to talk to your great aunt’s dentist — even the most far-reaching contacts are often willing to help, whether by donating or sharing the project.
- Start with a small goal so you can achieve it quickly. Seeing a goal that is complete or almost complete gives social proof to others considering donating because they can see that many others believed in the project.
- Understand the landscape of the platform (whether Kickstarter, IndieGoGo, or another). Each varies and it’s important to understand the structure so you can maximize your campaign.
Finding the Right Watch Manufacturers
Now that Jake and Kramer had enough budget to start their own watch brand MVMT, they have to find a watches manufacturer to bring their watch design idea to real.
They found the right one they are happy to work with from 30 watch manufacturers. “Once you do find a watch manufacturer that works and you gain momentum, other manufacturers will reach out to you.”
Here also some suggestions from MVMT founders on how to find reliable watch manufacturers:
- Do not work with a watch factory which is poor on communication. Make sure you can understand each other clearly.
- Check how long the manufacturer has been in the watch business and ask for prototypes.
- Find the right one from many different watch manufacturers.
Spreading by Instagram
With a million followers, MVMT’s Instagram account is a Millennial hotspot.
On MVMT’s Instagram, most of these pictures are featuring MVMT products, with some of the posts amassing up to 20k likes, although lacking some engagement in the comments section compared to the original posts on the influencer pages.
The Instagram pictures are also featured directly on the website with an amazing feature allowing users to directly buy the products that they see. This feature is also available on a few of the pictures directly on Instagram, which is an amazing way of showcasing the products in a new environment every day.
As MVMT’s founders recently told The New York Times, the brand’s ethos is “Dress with intent, live with purpose,” and it’s clear that the content they create, curate from customers, and share reflects that.
The Subsequent Development
Fast-forward seven years later and the watch brand has made over $150m without any external venture capital or business angel funding. Today, the company has sold over 1.5 million watches, sunglasses, and other accessories in over 160+ countries worldwide. In August 2018, Movado Group decided to acquire the brand for $300 million with a net benefit of $170 million for the 27 and 26-year-olds.