DIY Watch Club Faces Trade War Challenges with U.S. Tariffs

Washington's announcement of higher tariffs and the removal of a de minimis rule on low-value packages from Hong Kong and mainland China to the United States has significantly impacted Quinn Lai, the founder of DIY Watch Club. His brand, which predominately exports to the U.S., now grapples with a formidable 90% duty or a $75 flat fee on shipments.

DIY Watch Club, known for its do-it-yourself watchmaking kits, estimated that its U.S. revenue could drop by 20% to 30% due to the punitive tariffs linked to the ongoing trade tension between Washington and Beijing. In response, Lai ramped up marketing efforts in Europe, enhancing social media advertising and collaborating with online influencers for promotional unboxing experiences.

Lai's strategy has yielded results, with the company's European market share expanding from 6% to 30%. Despite the U.S. still being a substantial source of revenue, this shift allows the brand to be less reliant on the American market. As Hongkong Post suspends U.S. mail services and other couriers demand prepayment of tariffs, Lai aims to penetrate Japan and further solidify DIY Watch Club's presence in alternative markets.

(With inputs from agencies.)