Norqain's vision for winning in the highly competitive mid-range market

While many watch brands are entering the e-commerce market, Norqain, a young Swiss brand founded in 2018, has expanded its sales to retail stores around the world. Currently, Norqain is primarily successful in the United States and Japan. In 2020, it announced a long-term partnership with Swiss movement manufacturer Kenissi. We spoke with CEO Ben Kaffer about the outlook for this remarkable brand.

Entering the highly competitive mid-range market

　In the highly competitive niche market of mechanical Swiss watches in the 2000 CHF price range, dominated by the Swatch Group and crowded with powerhouses like TAG Heuer and Frederique Constant, a brand with a rather unusual name, Norqain, has gradually emerged and caught our attention. Now, when Norqain announces a movement supply partnership with the well-known Kenissi, we're convinced this new brand is one to keep an eye on.

　Founded in 2018, Norqain is the brainchild of entrepreneur Ben Kaffer and a number of high-profile investors, including ice hockey star Mark Streit and Ted Schneider, son of Breitling's former owner. Mark Kaffer, CEO Ben Kaffer's father and former director of private-label specialist Loventa Hennex, serves as chairman of the board. The cooperation of such prominent figures could open doors that have been closed for the Swiss watch industry, which has been in a cold spell due to the coronavirus pandemic, especially for risk-averse retailers.

"We initially considered buying dormant brand names and relaunching them, as so many have done in recent years," says Ben Kaffer, "which might have been easier. But ultimately we decided to stick to our story as a passionate, independent company in a business environment that is increasingly dominated by large groups."

　This self-funded brand was poised to take the industry by storm. At a time when most startups (and many established brands) are abandoning traditional distribution in favor of e-commerce and crowdfunding, Norqain was hitting retailers with competitively priced mechanical models. The profile of its founders helped.

"In our segment, retail prices were rising significantly, so we came up with an alternative solution," Kaffer says. This alternative solution proved particularly successful in two markets: Japan and the U.S. Norqain has launched e-commerce platforms outside of Japan, but online sales account for only a small portion of its overall profits.

　Norqain's appeal seems to have resonated particularly well in discerning Japan, where its reputation as an independent Swiss mechanical watch brand has enabled it to open 35 retail outlets in its first year. In the United States, the popularity of ice hockey star Mark Streit has helped raise awareness of the brand's sports watches, and a partnership with major American retailer Tourneau has led to plans to expand into several more retail outlets.

A powerful alliance with Kenissi

　Norqain currently employs around 15 people in Tavannes and Nidau, Switzerland, and has around 70 points of sale around the world. The company aims to increase the number of watches it produces. "We want to be a brand that continues to sell out, without falling into the trap of selling out," Ben Kaffer emphasizes.

　One of the key features of the Norqain is the optional engraving service on the case side plate. This option was first proven and popular in the United States, and is now increasingly being requested by models purchased in Switzerland and Japan.

　In February 2020, NORQAIN entered into a long-term partnership with Swiss movement manufacturer Kenissi. The two companies have completed two chronometer-certified movements: the three-hand NN20/1 with a power reserve of approximately 70 hours, and the NN20/2 with a jumping hour GMT mechanism. NORQAIN has released models equipped with each movement. Kenissi does not speak to the press and is often mysterious. Ben Kaffer did not say much about Kenissi.

　However, it seems certain that Kenissi was "attracted to Norqain's design and profile." Ben Kaffer explained, "For us, it is essential to build a long-term strategy that is not dependent on a single movement supplier, given the risk of delivery delays. Also, integrating Kenissi calibers will allow us to further differentiate ourselves."

　Norqain's Adventure, Freedom, and Independence collections will continue to feature models equipped with Kenissi movements. Models priced under CHF 2000 will continue to be equipped with ETA movements. The average price of a Norqain watch is CHF 2800. Ben Kaffer adds, "There's still a huge amount of work to do to convince people to wear mechanical watches. We believe that with our size and presence, we can play a part in this industry-wide goal."