All investors receive the below (extras if over 1.000 SEK invested)
• 25% discount on Octon products until April 2019 (equates to 600-800 SEK discount/watch)
• 5% lifetime discount
• Vote for new Octon products
• Get free strap with first purchase*
• 5% more discount
• Invitations to special events and trips
• Additional free strap with first purchase*
• Get free watch of equivalent value with first watch purchase*
15.000 SEK or more:
• Get free NH35 movement watch (instead of buy one watch, get one free above)
The problem this product solves
The current makers of high quality sports watches offer limited customisability and charge high prices. However watches at a more affordable price point often have lower technical specifications, less robust materials and offer little or no water or impact resistance.
Furthermore, high end automatic movements are a rare luxury in most watch brands, with many manufacturers favouring the cheaper mass produced battery operated quartz movements, which require batteries changing every few years. This battery usage is not only damaging for the environment, but is also a deviation from traditional high quality mechanical watch making.
How the product solves it
Octon seeks to address the gap in the market by offering precision engineered automatic sports watches at a very competitive price point.
Furthermore Octon has created a watch builder application, where prospective owners can customise many aspects of their watch including dial, bezel and strap, as well as which automatic movement they want to power their watch.
Not only do Octon watches have premium automatic movements similar to more expensive luxury brands. They also have many high quality technical features, such as a 300m depth rating to enable owners to swim and dive with their Octon watch.
Octon watches are precision tools that can be used in some of the most extreme environments; from deep diving the world's oceans to the extreme sub-zero temperatures encountered climbing and skiing some of its highest peaks.
• 316L surgical grade stainless steel, which is highly corrosion resistant
• Anti-reflective (AR) coated sapphire crystal; durable and minimises glass reflection in sunny conditions
• Lumed with Swiss Super-LumiNova so dials can be easily viewed in dark conditions
• Versatility; whilst designed for the outdoor enthusiast and marine conditions, their classic styling means they are equally at home in the city
Product use cases
From the beach to the mountain tops, the office and back again - Octon watches are built to come with you on all life's adventures. They can be used when swimming or diving, are built to withstand heavy water impacts when kitesurfing or doing other high impact sports and can withstand extreme sub-zero conditions, so you will always know what time it is no matter how high you trek into the mountains.
Robb Abercrombie Simpson CEO & Founder
MSc Business & Economics at The University of Edinburgh, Masters in Finance at Heriot-Watt University Edinburgh, PADI certified diver, adventure sports and watch enthusiast. A background in finance, business development and fund management. Firm belief in things being built to last, and driven to combine classic vintage sports watch styling, ... See more
MSc Business & Economics at The University of Edinburgh, Masters in Finance at Heriot-Watt University Edinburgh, PADI certified diver, adventure sports and watch enthusiast. A background in finance, business development and fund management. Firm belief in things being built to last, and driven to combine classic vintage sports watch styling, with a modern feel and precision engineered components, to bring a customisable and competitively priced watch to the market. See less
Valentin Kretz Media & Adventure Planner
Graduated from Engineering School Leonard de Vinci (ESILV) in Paris, as well as having an MBA from University of Hong Kong, Valentin is a kitesurfer based in Paris and does a lot of our media and videography work. He has successfully started Skyness, a drone filming company. And Valentin is ... See more
Graduated from Engineering School Leonard de Vinci (ESILV) in Paris, as well as having an MBA from University of Hong Kong, Valentin is a kitesurfer based in Paris and does a lot of our media and videography work. He has successfully started Skyness, a drone filming company. And Valentin is also responsible for planning Octon’s adventure series trips and film shoots. See less
Chris Higham Production Adviser
Msc in Integrated Product Design from Heriot-Watt University Edinburgh and a diploma in cinematography from Columbia Academy. Co-founder of Flyte, the floating light bulb sensation, Chris is now lending some of his well-honed production and product design experience to Octon. He is also very environmentally conscious, and a qualified snowboard ... See more
Msc in Integrated Product Design from Heriot-Watt University Edinburgh and a diploma in cinematography from Columbia Academy. Co-founder of Flyte, the floating light bulb sensation, Chris is now lending some of his well-honed production and product design experience to Octon. He is also very environmentally conscious, and a qualified snowboard instructor with an adventurous spirit, which is a big help with our adventure series campaigns and charitable involvement with Sea Legacy. See less
Octon watches are built for adventure, and are just as comfortable diving the world's deepest oceans as they are helping you explore some of the world's biggest cities. Designed for all environments, Octon is a global brand with no geographical or demographic boundaries.
Our typical customer is 18 to 55, which represents a large portion of the €65bn of watch sales during 2017 (75% of which was generated through sales of automatic mechanical battery free watches). Octon also has a strong appeal within the outdoor and action sports sector, which has seen over 340% growth in the past decade.
There is a growing appetite in the market for custom made boutique brand watches, and in Sweden some of the most popular of these new brands are Daniel Wellington, Triwa, Mockberg and Boom Watches.
It is common that brands like these are more fashion accessory watches as opposed to high spec mechanically powered watches. They tend to be battery operated with a water resistance of "rain proof" and a focus more on external appearance.
In addition there is also competition from some of the more long standing brands such as Casio and Rotary.
Unique differentiator from competitors
Octon offers a forward thinking boutique brand with a high level of customisation and customer service, with customers able to design their own watch using our watch builder software. This helps to distinguish Octon from more old fashioned large scale brands.
At Octon the importance of external appearance is mirrored by the high quality inner workings of the watch. With fully automatic movements and precision engineered components, Octon watches are dive proof with 300m depth rating, 316L surgical grade stainless steel and highly scratch resistant sapphire crystal complete with anti-reflective coatings. Furthermore we donate 10% of profits to Sea Legacy.
Company revenue streams
Revenue streams are predominantly generated through the sales of watches, but Octon also offers tools and accessories with a strong after sales service.
Customers can use the Octon online watch builder feature to test different straps and colour combinations for the watches they own, and buy straps and accessories from our website which they can trust will be the perfect fit for their timepiece.
At Octon our main focus is direct distribution; which enables us to cut out middlemen and offer great value timepieces to our customers.
Octon watches are assembled in Sweden and shipped direct to the customer. This also helps us to reduce wasteful steps such as onward shipping to distributors and retailers where possible.
Watches will be available at selected stores which we feel fit with the brand and our principles, but during initial stages this will be limited to 20% of sales.
2016: initial design phase began, involving market analysis and extensive CAD modelling, as well as the formation of the company.
2017: after finalising the design phase with completed CAD models, screening of various production partners was carried out, with the selected partner completing finished prototype in late 2017.
2018 Q1-2: awarded a start up loan from Almi and successful completion of the prototyping phase, planning begins for full scale manufacture with decisions on model line up and production timing.
2018 Q3: full scale production underway and completed watches delivered during Q3, launch campaign strategy work with marketing and branding partner.
Next key objectives
Octon has a structured approach for expansion plans, with a focus on the following:
• Expand influencer and brand ambassador numbers, to achieve access to combined follower base in excess of 20 million during 2019.
• Further develop and execute marketing strategies with the budgeted marketing spend of approximately 400.000 SEK during the course of 2019.
• Progress design work on new model, in order to expand range in time for Christmas 2019.
• Ensure an EBITDA level at or above 30% for 2019.
The company has been financed predominantly by the owners up until this point without any venture capital, and were successfully awarded a 200.000 SEK start up loan through Swedish state owned Almi group in early 2018 (to be amortised over 4 years starting in 2019).
Use of funds
Predominantly funds will be used for brand marketing and range expansion; detailed in the operational budget breakdown within the financial information provided, and an overview of key expenditures are shown below.
Any shortfall in investment can be supplemented with a combination of self-finance and debt, should this be required to cover working capital demands for intensive marketing during this ramp up phase (but much of this will be generated through sale of existing stock).
Brand marketing, PR and advertising campaigns: circa 400.000 SEK
Employee costs: circa 150.000 SEK
Office and administration: circa 30.000 SEK
Website updates: circa 30.000 SEK
Investors will be entitled to dividends based on their individual ownership levels (with projections of 5,6% dividend return in 2019 and 21,6% in 2020; return being based on invested amount).
A further return on investment can be generated through the private sale of individual shares, or as part of a future sale of the entire company. A sale of the company may be an option from year four onwards, at which point the value is projected to be in excess of 50 million SEK.
As the company grows it will be important to ensure production keeps pace with this growth. Screening of a large number of production partners has ensured the right selections have been made, resulting in secure large scale production capacity and short lead times.
There are other boutique watch brands in the market, however there is a distinct lack of Swedish boutique watch brands offering such high specification timepieces at this price point. This combined with a highly customisable product offering, and strong brand image, means Octon is well differentiated from competitors.