A closer look at CODE41 watches
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I stumbled across CODE41 reasonably recently, as one does while searching for exciting watches online. And while the watches themselves are very distinctive, what really drew me to what they are doing is the business model they use to create them. Generally, in the watch manufacturing industry, there is a very traditional approach to both manufacture and pricing. And whilst that has been the norm for decades, CODE41 arrived on the scene in 2016, intending to disrupt the industry and show that there may be a better, more customer-focused way of doing things.
So who is CODE41? They are a Swiss watch brand founded in 2016 by Swiss-born ItalianClaudio D’Amore, whose aim was and still is to produce high-quality mechanical watches. But rather than only start his own Watch brand Claudio wanted to go a different route. The difference with CODE41 was the business model that surrounds this endeavour. CODE41 doesn't just design and manufacture these watches. They involve the watch community in a way that I haven't really seen before. Currently, more than 400,000 watch enthusiasts signed up with CODE41, and these people contribute and have the power to guide the watch design process from an aesthetic point of view, right down to the complications used.
With this community approach to the watch design process, CODE41 operates total transparency of cost and origin model, which is somewhat unheard of in the watch manufacturing world. The cost of their pieces is broken down and laid bare for all to see, which I must say when you look at this on their website is quite refreshing to see and certainly makes you wonder about the costs from other watch manufacturers. Finally, CODE41 adopts a preorder system for sales through direct sales or its online site, which allows it to take a more sensible approach to order fulfilment without the need for stock.
So from a business point of view, this all seems to be an excellent direction for the customer! Watch enthusiasts essentially design high-quality watches for watch enthusiasts. Clarity on pricing, parts, and manufacturing means customers should get the watch they really enjoy at a price that is certainly very competitive in the marketplace.
So how does this all fit together in the real world? How do the members get involved in this process? Well, CODE41 starts with their initial design, which is treated as an individual project. Everything about the watch is shared with the members, and the community is allowed to vote on the design and push the design in the direction they want after all these members, as well as all of us, would and could be potential customers. Through each stage of the design phase, the community is kept up to date and consulted on what they would like to see.
Following the design phase, there is prototyping, and this again gives the community the chance to handle the watch, weigh in on the details and vote on changes or critical features of the watch. All of these changes may impact the final version and cost of the watch, which is shared by CODE41 with the community. But this drives the ownership of the project, ensures that everyone has their say in the final piece and is clear on how the cost of the finished watch has been reached.
Once everything has been agreed and finalised, the design can go into production. Although the community is not required to vote on anything, they are still communicated with and kept up to date on all the stages right up to the point the watch is released. At that point, the watch is available for preorder, and you would assume the community as a whole is very happy with it and preorders the watch they personally had a hand in designing! And this does seem to be the case as the first two iterations of their NB24 model were very successful, selling more than 5 million pounds in just these first two projects alone.
Moving forward, it’s hard not to see CODE41 going from strength to strength. The whole concept, although more complex than the standard watch industry process of design, manufacture, market, and sell, has some undeniable benefits for both CODE41 and its members and customers. For many watch enthusiasts, being involved and having a voice in a project like this is a bit of a dream come true. How many of us have wished specific watch models had done something slightly different regarding the design or movement decisions? Now that’s not to say you will always get your way, but you have a voice and can help steer things in both a design and cost way that is just absent with any other manufacturer. This on its own makes CODE41 watches worth it to the enthusiast or watch lover.
CODE41 have ensured that they end up with a watch that people will enjoy and are happy to purchase. They have essentially combined the design, marketing and pricing and placed it firmly in the community. No one can question the pricing because they have played a role in the design that resulted in the end price, and it is all seen and explained. And in terms of pricing CODE41 does seem very competitive with watches starting at just over £1000 and climbing higher for more complicated pieces using more exotic materials. It’s pretty ingenious compared to the smaller-scale focus groups and market research that other manufacturers carry out. This business model is more of an agile approach to watch design, manufacture and sales, and this really does have benefits for both parties.
This was just my initial look at what CODE41 has been up to and why I think this is a very clever and customer-focused way of approaching the watch market. I will be keeping my eye on CODE41 in the future and will try and get one of their models in hand to give you a review of the finished product. If you’re interested in learning more about CODE41 and their operating model, or you just want to check out some more of their very striking collection, you can check them out through the link below.
The CODE41 X41 6th edition pre-order will begin in less than 3 weeks! April 12th pre-orders will be open and there is a short window of 3 weeks to pre-order this model. With no two editions being the same if your interested in this latest edition of the X41 then ensure you remember to get in on the pre-order here!
