What makes a microbrand, a microbrand?

This question fascinates me as someone who likes to collect ”microbrands”. While I think size is important I do feel that there are a number of other things to take into account and for me one of the main ones is distribution methods. This is why I think the three brands you’ve named can still be classed as micros. While there are some AD’s that stock Baltic watches, generally speaking if you want to buy one of these brands new you have to go directly to the source. This limits access to their products as a lot of the non-watch public won’t even get to hear of these brands let alone purchase them. I think if they start getting big enough that they can supply a fair number of AD’s with their products then maybe the microbrand label no longer applies. 

Does that make Rolex a microbrand now? They can't stock their ADs... 😜

On a more serious note, that is a reasonable definition, but not one that I personally use. CW sells something like 20K watches a year, that's hardly microbrand territory to my mind. Particularly when you have an in-house movement, multiple in-house modules, and a manufacturing facility. 

I would define a microbrand as a company that sells small batches of limited production run watches and does not hold stock. So, something like Zelos, despite being popular, is still a microbrand because they don't stock/warehouse watch models. 

Here is a good thread on this topic. My summary C&P below with modifications:

Very long discussion on it here.  You will see lots of debate on the topic, but there is no one clear answer. 

• Independent watchmakers who carefully source/make their own supplies, perhaps make their movements or use high-end movements as bases. They are watchmakers at heart and perhaps This can run the range from brands like Atelier Wen, Dornbluth and Sohne, up to the likes of MB&F. Do independents count as micro? Much debated topic. 
• Private Label disguised as Micro - I do not know what else to call it, but these are brands that one person or a group of folks with money get together and decide they want to own a watch company. Sometimes they revive an old brand, but more often than not they start their own named brand. They enlist the help of a private label manufacturer (Walca, Xantia, and Roventa for example) who leverages existing vendors to build a watch. Most micro brands we know today fall in this realm. The challenge is, there are genuine enthusiast brands that start this way where the owners get further involved as they mature and perhaps take back part of the process. A more critical take is some of these brands could also be hedge fund bros looking to make a quick buck. They do very little but front the cash. There is a TON of grey in this space. 
• Speaking of private labels, many of those private labels also make their own watches and disguise them as Micro. 
• Crowdfunded brands - These are similar to the above, but they lack the funding or refuse to take the risk of self-funding. So they start a Kickstarter, or do a limited launch to raise capital and then seek out a private label manufacturer, or partner with an independent. Not all private labels are made equally and they made decide to use the lowest cost manufacturer to make the most, or they could use a higher quality Swiss PL to help. Sadly, most tend to use the same few Chinese companies. Other times, you may get higher-end players in this space as well, but they are the exception. 
• The veterans - Not sure what else to call this either. But these may be a former large brand or private label employee(s) who decide to start their own brand. They already have the connections, they know the best vendors, and perhaps even have their own watchmakers. They cut out the private label companies and manage everything in-house. In our hearts we all want to support brands like this. Some of these "micro brands" grow into some of the larger independent brands we know and love.  
• The homages - I personally do not consider any of these micro companies, be it Steinhart, Parnis, Pagani Designs, etc micro. They design nothing, or the vast majority of their watches are someone else's IP. They all likely use the same couple of Chinese companies to make their watches. Homage companies have their place, I am not bashing them, but they only exist to sell a "not quite replica" version of another product. 

As a result, many people will plant their flag in one or all of these types of companies as "true micro brands."  I have no issues with most of them and consider all of them micro, but to each their own definition-wise. 

Actually I like that veterans you’re right calling a brand that dels around 20k watches a year a micro doesn’t seem right.