The watch industry has been growing rapidly in recent years. While many luxury brands still produce their own watches, most mass-market brands outsource production to OEMs (original equipment manufacturers). OEMs are companies that specialize in designing and manufacturing components for other companies. In the watch industry, OEMs typically produce movements, cases, and straps for multiple brands. This system allows brands to focus on marketing and selling their products, while leaving the manufacturing to specialists.

The watch industry is a highly competitive and rapidly changing market. In order to succeed, watch companies need to be able to produce high-quality products at a lower cost than their competitors. OEMs play an important role in this process by providing components and materials that meet the required specifications. OEMs also have the ability to scale production quickly to meet demand, which is essential for successful watch companies. By working with an OEM, watch companies can focus on their core competencies and reduce their costs, leading to a more competitive product.

However, there is an increasing trend towards watches that are "Made in China" or "Designed in China". These watches are often of very good quality, but are significantly cheaper than their Swiss-made counterparts. As a result, many companies are now looking to China as a source of high-quality watch components.

The watch industry is also becoming more reliant on China. In recent years, Chinese consumers have become some of the biggest buyers of luxury goods, and they are increasingly interested in high-end watches. As a result, many brands are setting up production facilities in China or partnering with Chinese OEMs. The Chinese market is now crucial for the watch industry, and it is likely to play an even bigger role in the years to come.

OEM (original equipment manufacturer) suppliers in China are able to provide a wide range of components, from simple hand movements to complete watch assemblies. This has allowed Chinese watch manufacturers to quickly increase their production capacities and enter the global market. Thanks to the relatively low cost of labor and materials in China, these companies are able to offer their products at very competitive prices. As a result, the watch industry is likely to see further growth in the coming years.