I wouldn't approach them. You're trying to sell them their business name, which is non-generic.
Additionally, their phone number is in Hong Kong. So I don't think you'll have an easy time communicating with them.
Also, something's up about these people. I tried to have a look at their watches (and yes, I'm on a casual hunt for a watch now), and it seems you need a password to so much as view their password.
If I were you, I'd hold onto it with a "for sale" page. You registered this domain name this morning, so you've got a year for your investment to pay off. Don't bother renewing it.
Mind you, they've had their name since 2003. So if you're convinced that they might see value in it, one way to go about it might be to, under an invented or otherwise unclear identity, approach them and say "So your site is madisonwatches.com, right? Hmm, it seems that site doesn't work. You should do something about that." as somewhat of a nudge factor.
In any event, I don't think you have very much to gain, This is a $1,500 name at best, in my opinion. I wouldn't make a point to put a great deal of time into the sale of this one.
