Why Is the NH35 Watch Movement Becoming More Expensive?

For years, watch brands have relied on a custom watch model: combining well-designed cases with reliable Japanese automatic movements, unique design combined with performance to rapidly expand the market.

The core of this strategy is the NH35 movement - a sturdy and highly reliable main movement produced by Time Module Inc. (TMI) under Seiko.

Obtaining the NH35 movement starting from 2026 is no longer as easy or cost-effective as it used to be. The price of the movement has continued to rise and the supply cycle has lengthened from weeks to months, causing the founders of watch brands to re-examine their watchmaking strategies.

What has caused this sharp increase in movement prices? How is the watch industry responding? What alternative solutions are there for brands that hope to maintain a healthy profit margin?

ⅰ. Global movement shortage: Costs in Japan and Switzerland keep rising

The increase in the price of the NH35 movement is not an isolated event; it is a reflection of the overall structural changes in the global watchmaking industry.

In the past few quarters, major manufacturers of mechanical movements in Japan and Switzerland have raised wholesale prices and tightened factory supply quotas.

Including Seiko NH series (NH35, NH36, NH38), Citizen Miyota 8 series and 9 series (such as 8215 and 9015), as well as Swiss benchmark brand Sellita SW200-1 and other popular entry-level and mid-range movement series, There have been significant price increases and supply constraints.

1. Explosion of micro brands and Kickstarter projects: Global direct-to-consumer (DTC) watch brands, almost all of which have chosen these brands due to the widespread trust of the NH35 movement among consumers.

2. Factory allocation priorities: The manufacturing group prioritises the allocation of movement for its own watch series, limiting the volume of third-party supply, resulting in shortages on the open market.

3. B2B bidding and snap buying: To meet production lead times and fulfill pre-sale orders, brand managers often pay premium spot market prices to lock in remaining physical inventory and accelerate price inflation.

ⅱ. Impact on Direct Sellers, Custom Brands and Retailers

Rising costs have brought great pressure to independent watch companies with thin operating margins. When the cost of the movement nh35 increased significantly, the brand faced difficult choices in the operation of the whole chain.

1. Retail price adjustments

Many custom watch brands are forced to raise retail prices. Raising prices can deter price-sensitive consumers and reduce conversion rates for marketing campaigns.

2. Extended delivery cycles

Production delays from Japanese movement suppliers, which often take months to deliver, have crimped product launches, delayed orders and put cash flow pressure on expanding companies.

3. Exploration of alternative solutions

To maintain profit margins and avoid stock shortages, the product team is actively investigating alternative movement options, including evaluating other Japanese models as well as high-precision Chinese machine movements.

 ⅲ. Evaluation of alternative Options: Japanese upgrade and high-precision Chinese movement

Brands that want to diversify their supply chains can choose from a variety of options based on their target market positioning.

Japanese alternative movement options

If the brand's marketing strategy strictly relies on Japanese tradition, the following alternative movements can be considered:

• Miyota 8215/8N24:Its specifications are similar to those of the nh35 watch movement, with reliable performance, stable performance in daily use, and a slightly wider market coverage.

• Miyota 9015/9039: A high-end, high-frequency ultra-thin movement that helps brands elevate their products into the entry-level luxury category despite a higher price.

The rise of high-precision Chinese movements

Models such as the HKPT PT5000 and the Seagull ST2130 have always been cited by professional watchmakers and disassembly evaluators when disassembling movements under a microscope.

These movements adopt verified Swiss design architectures (ETA 2824-2 design standards), featuring stable structural tolerances, robust gear systems, and high-frequency adjustment capabilities. For custom brands that aim to optimize production costs, using high-quality Chinese movements not only offers excellent cost performance but also ensures stable supply from the factory.

ⅳ. Market Prospects and Financial Data Trends

The public financial reports released by major movement manufacturers confirm the sustained strong demand in the global mechanical watch industry.

In its latest financial report, Seiko Group Corporation reported that its watch business sales reached 203 billion yen (approximately 1.35 billion US dollars), and it expects to further expand its market share in the future due to the steady growth of international sales.

Similarly, Citizen Watch Co., Ltd. reported strong sales growth in its watches and parts segment, highlighting a significant rise in net sales in its movement business due to strong global demand for mechanical movements.

These industry data indicate that two key trends will emerge in the future:

• Continued High demand

The global popularity of mechanical watches will keep Japanese original movement prices high for the foreseeable future.

• Dual engine sourcing strategy

Successful independent brands will increasingly adopt a multi-movement strategy -- offering a Japanese movement version while offering a cost-optimized version to maximize market coverage and protect profit margins.

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ⅴ. Common Questions

Q: Will the price of the nh35 movement return to previous levels?

A: Not likely in the short term, strong global demand combined with the control of factory production quotas means that the price of nh35 is likely to remain at a high level.

Q: How will replacing the movement affect the structure of the model?

A: Different watch items need to be evaluated, and experienced OEM watch factories will adjust the inner shell ring to adapt to different movements to achieve reasonable performance.

Q: How should one view watches equipped with Chinese mechanical movements?

A: Acceptance is growing rapidly. When combined with professional factory manufacturing and strict quality control, watch models are cost-effective.