Post-pandemic Prospects for the Pre-owned Luxury Watch Market
We contacted the founders and CEOs of Oliver & Clarke, SwissWatchExpo, and Bob’s Watches for their opinions on this year’s discontinued Rolex models as well as overall market trends.
The market for pre-owned luxury watches experienced a surge in demand and attention during the pandemic. Many are curious about how the second-hand luxury watch market may be affected when life returns to normal in the post-pandemic era. To gain insight into market trends, opinions on this year’s discontinued Rolex models, and projections for the pre-owned luxury watch market, Hypebeast spoke with Paul Altieri, the founder and CEO of Bob’s Watches, Eugene Tutunikov, the CEO of SwissWatchExpo, and Linden Lazarus, the founder and CEO of Oliver & Clarke.
Altieri tells Hypebeast that he is still optimistic about the pre-owned luxury industry. “Reliable vendors and knowledgeable customers, bolstered by online information exchange, transparency, and authentication services, comprise today’s market. The second-hand market is vital for collectors looking for uncommon, vintage, or discontinued watches — nearly 95% of watches are no longer manufactured. Pre-owned watches are expected to grow at a faster rate than the main market, according to Altieri, and account for about 30% of the $75 billion luxury watch industry in 2021 with sales expected to reach over $22 billion.
The pre-owned watch industry is also expected to contribute to about half of the overall watch market by the end of the decade, according to reports, according to Tutunikov of SwissWatchExpo. Because of this positive result, he predicts confidently, that “brands will capitalize on the pre-owned watch market” and that we’ll probably see more participants in the categories. To bolster his claims, Tutunikov lists the following examples: the Richemont Group’s and Audemars Piguet’s market participation, as well as Rolex’s dealer-only certified pre-owned program. “These advancements are expected to increase competition and diversify the pre-owned watch market,” the CEO declared.
In 10 years, how has the perception of pre-owned luxury watches changed?
Paul Altieri (Bob’s Watches)
Pre-owned luxury timepieces have seen a substantial change in perspective since we introduced Bob’s timepieces in 2010. When compared to a similar new watch at retail, pre-owned Rolex watches were valued or priced at 25% less back then. These days, their price difference over retail is between 20% and 3000%. Numerous causes are responsible for this transition. Above all, most things are easily accessible exclusively on the secondary market because demand far outpaces supply. Customers may now buy and sell pre-owned items with confidence and trust because to this, the growth of the internet, social media, and online marketplaces.
Eugene Tutunikov (SwissWatchExpo)
Today’s consumers are undoubtedly more willing to purchase pre-owned luxury timepieces, and their view of them has significantly improved. In the watch industry, pre-owned watches were hardly recognized a decade ago. According to a BCG survey, it currently represents almost one-third of the luxury watch market. While price transparency is currently offered by online models, ten years ago it was typical for dealers of pre-owned timepieces to market their watches with the phrase “inquire for price.” Customers can now view high-resolution photos and comprehensive details about the watch, including which parts are original or replacement, in addition to the costs shown for the watch. This provides them with more comprehensive knowledge about the watch they are purchasing.
Linden Lazarus (Oliver & Clarke)
The watch industry ten years ago is hardly recognized in today’s market. During that time, watches have evolved from a highly specialized pastime to a widely accepted symbol of taste and prestige. Prices have increased in line with this significant increase in desirability and awareness. In the past, you could assume that someone was an enthusiast if they recognized your watch. In contrast, today’s understanding of specs and intrinsic value has become so commonplace that even the “lay” person may be able to tell what kind of heartbeat an item has.
Which brands and models are most in demand in the pre-owned luxury watch market?
Paul Altieri (Bob’s Watches)
Virtually all official Rolex dealers haven’t had any stock to show in their stores for the last five years or so. The most sought-after sport models, such as the Submariner and Daytona, are neither available nor have relatively short waiting lists. Still, the Daytona, Submariner, GMT Master, and Datejust models are experiencing and commanding the highest premiums on the pre-owned market. For instance, a pre-owned Rolex Daytona retails for $15,100 USD, but it currently sells for roughly $35,000 USD on the secondary market.
Eugene Tutunikov (SwissWatchExpo)
The three most sought-after watch brands, in my opinion, are Audemars Piguet, Patek Philippe, and Rolex. These companies are very identifiable, have classic designs, and are often considered to be synonymous with luxury. Numerous models from them are wise long-term investments. With regard to specific models, Rolex leads the market with the Submariner, Daytona, GMT Master, Datejust, Yachtmaster, and Explorer. Not to be overlooked is the Rolex Oyster Perpetual, which received a makeover in 2020 and features a colorful dial that has been spotted on celebrities’ wrists. The likes of Lebron James, Roger Federer, and Mark Wahlberg would never have been thought to sport an entry-level Rolex a few years ago. The steel Rolex Oyster Perpetual is now available in a variety of colors.
Linden Lazarus (Oliver & Clarke)
Since they surprised no one, the most sought-after timepieces are the typical suspects. The pre-owned market is dominated by Rolex, Patek Philippe, and Audemars Piguet, with the majority of the market share going to their signature models. The independent watchmakers have been a pleasant surprise during the past few months. Some of the most prized and attractive timepieces made today were formerly part of a relatively fragmented industry. With companies like Laurent Ferrier, MB&F, and F.P. Journey following in the swift footsteps of their iconic founders, this segment of the market is expanding daily in terms of both price and recognition.
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