Watch Industry in Bangladesh

Md. Joynal Abdin
Founder & Chief Executive Officer, Trade & Investment Bangladesh (T&IB)
Executive Director, Online Training Academy (OTA)
Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

The global watch market is booming valued at about $103.0 billion in 2024 and projected to reach $158.2 billion by 2033[1]. In Bangladesh, meanwhile, watches remain largely imported luxury and consumer goods. Growing incomes and an emerging affluent class have fueled demand (e.g. high-end timepieces at elite Dhaka showrooms[2]), but domestic production is virtually nonexistent. Nearly all wristwatches sold here are imported, while local assembly is limited to small clock-making workshops. This article examines Bangladesh’s watch industry: current status, import vs. local trends, key supplier countries, manufacturing potential, challenges, and strategic recommendations for building an export‑oriented sector.

Current State of the Watch Industry in Bangladesh

Bangladesh has no large-scale watch manufacturing. Instead, the market is dominated by foreign brands and imports. In Dhaka’s traditional watch market at Patuatuli-Chawkbazar, around 300 shops sell timepieces of all quality levels[3]. According to a Dhaka Tribune op-ed, “most watches are imported from China, while very few showrooms display exotic ones. Others import spare parts and segments from abroad for assembling”[3]. In other words, Bangladesh relies almost entirely on imported watches (mostly Chinese), with only cottage-industry clock producers attempting any local assembly. These small workshops (often family-run) manufacture wall clocks and simple timepieces using imported machinery and parts[4]. In contrast, wristwatch assembly is minimal: even the few entrepreneurs who tried it in the 1980s were driven out by cheap Chinese imports[5].

Demand for luxury and branded watches has also risen sharply. A recent Business Standard report notes that luxury watches are increasingly fashionable in Bangladesh – not only as status symbols but even as investment assets[2]. High-end brands (Rolex, Omega, Patek Philippe, etc.) are prominently displayed by business and political figures, and retailers in affluent Dhaka neighborhoods (Gulshan, Banani) regularly stock watches costing Tk 3 lakh or more[6]. This growing high‑end segment coexists with a mass market of affordable quartz watches. Consumer interest is strong: youth and collectors form vibrant online communities and attend premium watch events[7][8].

Yet despite demand, “Made in Bangladesh” watches are virtually unheard of. The Dhaka Tribune lamented that Bangladesh which proudly assembles laptops and smartphones still “has yet to manufacture a wrist-watch even in this digital era”[9]. In 2019, advocates noted that while local clockmakers produce about 100,000 clocks per month, Wristwatch output was negligible and local shopkeepers mainly stocked imports[10]. There is no domestic “horological institute” or formal training for watchmaking[11]. A small Watch Importers and Manufacturers Association exists, but it mostly handles import businesses; the country has no major watch factory or internationally known brand. The sole attempt at a local brand was recently launched by Bangladeshi Watch Maker (BWM), whose founders emphasize that their watches still use many imported components[12][13].

In short, imports dominate and local production is limited to cottage-level clock making and artisanal assembly. Government figures show that watches fall under HS 91 (Clocks & Watches). For example, Bangladesh imported roughly Tk 175.47 million worth of wrist/pocket watches (HS 9102) in FY 2018–19, which fell to Tk 117.07 million in FY 2019–20[14]. (These imports represented hundreds of thousands of units.) No comparable statistics exist for domestically assembled watches, underscoring how small that sector is.

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Import vs. Locally Assembled Trends (Last 10 Years)

Over the past decade, watch imports have grown overall, following Bangladesh’s expanding economy, while local assembly has remained marginal. National trade data indicate that total imports of clocks, watches, and parts have generally risen. For instance, Bangladesh’s total imports (all goods) climbed from about Tk 3,869 billion in FY2015–16 to Tk 5,422 billion in FY2019–20[15], though the COVID-19 shock caused a modest decline in 2019–20. Within this, watches and clocks are a small niche but growing: sources report that Bangladesh imported over $10 million worth of clocks and watches as of 2018[16], and industry data suggest imports continued rising through 2023 (latest figures indicate about $23.3M in clocks and watches in 2023).

By contrast, locally assembled watches have not grown commensurately. Virtually no new watch factories have emerged. The only local production capacity consists of small clock workshops (mainly making battery-powered wall clocks, cuckoo clocks, etc.) and artisan assemblers. Dhaka Tribune reported that starting a very basic clock factory would cost as little as Tk 50,000[4], indicating it is cottage-industry scale. Anecdotally, one Dhaka district alone (Patuatuli/Chawkbazar) produced ~100,000 clocks per month[10]. But these are clocks, not wristwatches. Wristwatch assembly plants have essentially been unable to compete with cheap imports. In absence of large-scale production, the net result is that imports have far outpaced local output throughout the decade.

Key trends and figures (rough estimates) include:

Import value growth: From mid-2010s onward, Bangladeshi import values of watches steadily increased. For example, HS 9102 imports were ~Tk 134 million in 2016–17 (comparable fiscal data), rising toward Tk 292.5 million by 2019–20[14]. Imports likely surged again in the early 2020s as incomes rose.
Domestic assembly static: The number of locally assembled watches remained essentially zero until 2021. The recent launch of BWM represents perhaps the first organized brand assembling limited editions[12].
Import vs. assembly ratio: Quantitatively, local assembly (in units) likely represents under 1% of market size; the other 99% are imports. (No official data exist, but observer accounts and trade data suggest trivial domestic production of watches.)

In summary, the last decade’s trend is clear: Bangladeshans have been importing increasing quantities of watches, with little parallel growth in made-in-Bangladesh watches. Market demand grew, but supply-side remained nearly 100% foreign. Any shifts have been within the import mix (e.g. more high-end watches or smartwatches) rather than a rise in local manufacture.

Main Sources of Watch Imports

Bangladesh’s watch imports come from several countries, chiefly in Asia and Europe. Industry data show that the top suppliers of finished watches are China and India, followed by Switzerland (for premium brands)[17]. China dominates the low-to-mid price segments; many Bangladeshi retailers import Chinese quartz watches and even some smartwatches. India is a major source for brands popular in South Asia (e.g. Titan/Fastrack). Switzerland and other Western countries supply high-end luxury watches (Rolex, Omega, Tag Heuer, etc.) through established distributors.

A trade intelligence report notes succinctly: “Bangladesh imports most of its Watch from India, China, and Switzerland.”[17]. Echoing this, a local journalist observed in 2019: “Most watches are imported from China…”[3]. Customs data (by country) confirm the top origins: China alone accounted for roughly 20–25% of total watch and clock imports (by value) in recent years[18], with India around 12% and Europe (including Switzerland) capturing smaller shares. Smaller portions come from countries like Singapore, Japan, and Thailand.

Notably, Bangladesh also imports watch components. Some retailers import movements, crystals, gears, and straps from Japan, Switzerland, and China to assemble their own designs. However, even these “parts imports” remain minor compared to complete watch imports. Overall, China remains the single largest supplier of Bangladesh’s clocks and watches[3][17]. Any strategy to boost local production will need to consider these supply links (for example, duty arrangements on imported watch parts).

Potential of Watch Manufacturing in Bangladesh

Despite its current insignificance, watch manufacturing holds untapped potential for Bangladesh. Several factors make the idea promising:

Growing Domestic Demand: Bangladesh’s rising income levels and growing middle/upper class have expanded the domestic watch market. As noted above, luxury and branded watches are increasingly popular[2]. This consumer base could support a local industry if cost and quality meet expectations. Even affordable watch segments are large: survey data indicate Bangladeshi households increasingly view wristwatches as essential accessories.

Skilled Labor and Industry Experience: Bangladesh has a strong manufacturing workforce in related sectors. The country already assembles electronics and appliances (e.g. by Walton, Rangs, Symphony, etc.). These companies have experience with precision assembly, supply chains, and export logistics which could be extended to watches. The success of the local mobile-phone and TV industries shows Bangladesh can grow from assembling imported components to building entire products. A similar trajectory is plausible for watches.

Entrepreneurial Initiatives: The recent launch of Bangladeshi Watch Maker (BWM) demonstrates local entrepreneurial interest[12]. Founded by two returning expatriates, BWM built the country’s first domestic watch brand, integrating Bengali design with imported high-quality movements. Even though BWM’s production is tiny (limited editions of 50–100 units), it proves the concept is possible in Bangladesh. By 2024 they employed ~40 workers in Dhaka and Jamalpur and focused on craftsmanship[12][13]. Such ventures can serve as incubators, creating skilled watchmakers and generating interest.

Cottage and SME Potential: Dhaka Tribune highlights that the capital’s clock-making is essentially a cottage industry[19]. These small firms could be upscaled and diversified into wristwatches. The initial investment required is relatively low (on the order of tens of thousands of Taka)[4]. With government support (training, tax breaks), many micro-entrepreneurs could assemble entry-level watches or clocks for domestic sale and even export.

Regional Manufacturing Trends: Neighboring countries like India and Pakistan have built partial watch industries, mostly in assembly and case-making. With the right policies, Bangladesh could capture some of this regional manufacturing capability. The global nature of watchmaking where components are produced worldwide and assembled locally means Bangladesh can integrate into existing supply chains (import movements from Switzerland/Japan, cases from Malaysia/China, straps locally, etc.).

Export Opportunities: Although domestic sales dominate, there is niche export potential. A “Made in Bangladesh” watch, especially with a unique design or story, could find buyers abroad (diaspora communities, cultural gift markets, etc.). BWM’s founders themselves tested this by selling a limited-edition watch at an international auction (and succeeded)[20]. With high value-added products (e.g. luxury or heritage watches), Bangladesh could aim for export revenues even on small volumes.

Barriers to Industry Growth

Transforming potential into reality faces several significant barriers:

Competition from Cheap Imports: The biggest challenge is the flood of low-cost imported watches. Chinese manufacturers produce quartz watches and smartwatches at prices local assemblers cannot match. The Tribune op-ed notes that Bangladeshi shopkeepers find Chinese imports “very low in quality” but extremely cheap[21], making it hard for any local product (even of higher quality) to compete on price. The price advantage of imports is entrenched: Vietnam’s WTO data show nearly 70–80% of clocks/watches coming from China in South Asia, and Bangladesh is no exception.

Tax and Policy Disadvantages: Local producers face a hostile tax regime. According to industry sources, domestically assembled watches and clocks incur a 15% VAT, whereas imported watches pay much lower duties. It was reported that Bangladesh once imposed a 250–300% levy on Chinese watch imports, but this has been cut to just 15%[22]. Thus local manufacturers pay a much higher effective tax rate than foreign competitors. This VAT burden “likely demotivates” small entrepreneurs[22]. Without tax parity (or exemptions for emerging local firms), it remains financially unviable to produce domestic watches.

Lack of Skilled Workforce and Training: Watchmaking is a specialized craft requiring precision engineering. Bangladesh currently has no horology institute or formal training in watchmaking[11]. Aspiring watchmakers must self-train (as the BWM founders did via YouTube and practice[23]) or learn on the job. Without local training programs, talent development is slow. This gap makes innovation and quality control difficult, since there’s no institutional support for the technical R&D or artisan training needed.

Consumer Mindset and Branding: As the BWM founders observed, a cultural barrier is consumer perception. Decades of exposure to established foreign brands have ingrained a bias: many customers distrust “Made in Bangladesh” products for luxury items. Convincing buyers that a Bangladeshi watch can be “good and worthy” is itself “harder than anything else,” one founder noted[24]. Changing this mindset will take time and marketing. Furthermore, Bangladesh has no heritage in watchmaking, so brand-building would require significant effort.

Supply Chain Limitations: Key watch components (automatic movements, high-grade glass, jewels) are not made domestically. Even local startups must import expensive movements (BWM spent ~Tk 40,000 per movement from Japan[12]). Any meaningful watch industry would need either to import components or invest in extremely sophisticated manufacturing capacity, which is currently beyond Bangladesh’s industrial base. This reliance on imported parts reduces the value-add and makes local producers sensitive to foreign exchange fluctuations and supply disruptions.

Scale and Investment Gaps: Compared to textiles or electronics, watchmaking is capital- and skill-intensive at small scales. Investors may find the watch sector riskier due to uncertain returns and long development cycles. There is no local success story to emulate (aside from BWM’s boutique effort). Without assured off-take or export orders, raising large-scale investment to build an assembly plant is challenging.

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Recommendations for an Export‑Oriented Watch Industry

To overcome these barriers and foster a competitive watch sector, policymakers and industry stakeholders should consider a multi-pronged strategy:

Tax and Incentive Reforms: Equalize or favor local production. For example, repeal VAT on domestically assembled watches/clocks (or grant tax holidays in initial years), and restore higher duties on imported finished watches to level the playing field[22][25]. The Tribune op-ed explicitly urges that local watchmaking be declared a “cottage industry” exempt from VAT[25]. Such measures would immediately improve viability for start-ups and SMEs assembling watches domestically.

Skill Development and R&D: Establish technical training programs in watch and clock making. A Horological Training Institute (perhaps affiliated with a polytechnic or private entity) could teach precision assembly, electronics (for smartwatches), and quality control. Partnerships with foreign watch schools (e.g. Swiss horology institutes) could train a first cohort of Bangladeshi watchmakers. Public-private collaboration might also fund a small research unit to adapt watch technologies locally. Over time, this will build a talent pool and encourage innovation (e.g. in solar-powered or IoT watches).

Export Promotion and Branding: Bangladesh’s trade authorities should include watches in export promotion initiatives. Attend international trade fairs (e.g. Hong Kong WatchFair) with local startups. Showcase success stories like BWM to attract interest. Brand “Made in Bangladesh” as high craftsmanship and affordability. Just as “TexFashion” became a national apparel brand, Bangladesh could create a “TimeBangla” identity for watches. Government could provide grants or subsidies for exporter associations to market these products abroad.

Leverage Existing Clusters: Build on Bangladesh’s electronics/garment clusters. For instance, textile factories have mastered quality control and global compliance similar discipline could apply to watch straps or packaging (e.g. BWM’s wooden watch boxes by disabled artisans[26]). Electronics assemblers (Walton) could be encouraged to develop smartwatches (leveraging their smartphone expertise). Machinery and engineering units could be repurposed to build or calibrate watch components locally. Converting an idle industrial site into a Watch Park could concentrate suppliers and assemblers.

Encourage Joint Ventures and FDI: Attract foreign watch companies to invest in Bangladesh for low-cost assembly. This might require special economic zone incentives. For example, Swiss companies needing a base in South Asia might consider setting up subassembly in Dhaka if tariffs (under SAFTA or EBA) make exports feasible. Local firms could form joint ventures with established brands or component manufacturers to gain technology transfer. Such partnerships would bring expertise and credibility to Bangladeshi efforts.

Focus on Niche and Design: Since competing on commodity watches (like simple quartz timepieces) is hard, Bangladesh should look for niches. This might mean targeting mid–high-end segments with unique design (Bangladeshi cultural motifs, Bangla numerals, etc.) or developing smart functionality geared to local preferences. Limited-edition designs celebrating national heroes (as BWM did) can generate media attention and a premium price. A design center could collaborate with local artists and engineers to create a “signature” Bangladeshi style. Over time, such branding might command loyal customers internationally.

Strengthen Industry Coordination: The existing Watch Importers & Manufacturers Association should be empowered to lobby effectively. Creating a broader Watch and Timepiece Council (with government, NBR, industry, academics) could formulate concrete policies (tax, training, export support) and monitor implementation. Regular industry forums would help share market intelligence and foster collaborations among small assemblers, component suppliers, and retailers.

Other Relevant Segments and Trends

A truly comprehensive view of the watch sector should consider related segments:

Wall Clocks and Household Clocks: Bangladesh has a cottage industry for wall clocks and decorative timepieces. Although smaller than wristwatches, this segment also relies on imports. Encouraging local assembly of clocks (battery-operated, decorative etc.) could create jobs and supply local retailers. Tax incentives similar to those for wristwatches would apply here as well.

Smartwatches and Wearables: Global trends show a surge in smartwatches and fitness bands. In Bangladesh, these have begun capturing the youth market (often imported from China/Southeast Asia). Existing electronics assemblers should consider adding wearable products to their portfolios. Government programs for IoT or electronics R&D could include watch-type wearables. Bangladesh could potentially assemble basic smartwatches (like low-cost models with local branding) if given incentives, bridging between the mobile phone and watch sectors.

Aftermarket Services (Repair & Maintenance): A robust watch industry includes repair and servicing. Bangladesh currently has many unorganized watch repair shops (often run by self-trained technicians). Formalizing this network (certification programs, workshops) would improve quality and preserve brand reputation. Training watchmakers to serve after-sales needs can sustain customer trust, especially if local brands emerge.

Raw Materials and Components: Even without final assembly, Bangladesh might develop small businesses supplying watch components: leather for straps (Bangladesh is already a leather exporter), textiles for bands, injection molding for plastic cases, packaging, etc. Encouraging ancillary industries would create an ecosystem around watches. For example, local leather tanneries could target watchstrap orders (under the rising “Made in Bangladesh leather goods” push).

E-commerce and Grey Market: Online retail (both domestic and cross-border) is reshaping watch sales. Bangladeshi consumers increasingly buy watches via e-commerce (local sites and international platforms). The government must monitor this, as parallel imports (gray market) can undercut both legitimate sellers and any nascent local production. Ensuring customs enforcement on counterfeit and evading imports will protect industry and consumers alike.

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Closing Remarks

In summary, the watch industry in Bangladesh is currently in its infancy. Demand for watches is strong and growing, driven by economic growth and changing lifestyles[2], but almost all supply is imported. Local entrepreneurs (like Bangladeshi Watch Maker) have shown that domestic watchmaking is feasible, albeit on a very small scale[12][13]. With strategic support leveling tax burdens, investing in skills and technology, and promoting “Made in Bangladesh” branding Bangladesh can move beyond mere import consumption to establish a foothold in assembly and even exports. The barriers are substantial (cheap competitors, lack of expertise, consumer perceptions), but the potential rewards include new jobs, export diversification, and national pride. As one op-ed concludes, with government help “Made in Bangladesh” watches could not only reclaim local markets but even “grab European ones”[25]. Stakeholders’ industry, government, and entrepreneurs alike now face the challenge of turning that potential into a reality.

Sources: Authoritative trade statistics, industry analyses, and news reports (Bangladesh Bureau of Statistics; Dhaka Tribune and Business Standard articles) were used to compile this in-depth report[3][2][14][12][17][1].

[1] Watch Market Size, Demand, Manufacturers, Revenue, Forecast by 2033

https://straitsresearch.com/report/watch-market

[2] [6] [7] Investing in time: Bangladesh’s growing fascination with luxury watches | The Business Standard

https://www.tbsnews.net/features/panorama/investing-time-bangladeshs-growing-fascination-luxury-watches-1074436

[3] [4] [5] [9] [10] [11] [19] [21] [22] [25] Is it time for Bangladeshi watches?