When Apple Watch first launched, it was allowed for 12 contacts to be set as favorites. Now with the release of WatchOS 2, Apple allows you to create different groups of contacts, complete with a title. Each circle is still limited 10 12 people.
Parts of process can be accomplished on the watch itself, but it’s far easier to do on your iPhone. To begin editing and creating groups, launch the watch app on your iPhone then scroll down and tap on friends. The standard friend circle is presented only when you can swipe to the left to create a new group.
Additionally you can drag and drop a contact from one group to another. Small dots just above the blocked title indicate how many groups you have and which on you’ve currently viewing. On the top of the screen you find text field where you can label the group. The label is presented on your watch’s screen when you scroll to group after it is replaced by the contact name