From offloading unwanted watches to finding that grail watch you’ve been coveting, the secondary market has a lot going for it. With resale values rising, luxury second-hand watches are becoming increasingly popular as both lifestyle accessories and alternative investments.
This accelerated growth has led to the prediction that pre-owned watch sales will overtake new watch sales within five years.
It’s thriving
The secondary market for luxury watches is thriving, and this is good news for buyers and sellers alike. This market is a great way to get a watch that you would have had trouble getting new or at a reasonable price, and it’s also a great way to build relationships with people who share your interests and can help you find the watches you want.
This market has been propelled by third-party online platforms such as MIO, Chrono24, and Watchfinder, which make it easier for consumers to shop and sell online. This is especially helpful for younger consumers who are more comfortable buying on a digital platform. These online marketplaces have promoted the resale of luxury watches by helping educate consumers, encouraging price transparency, and connecting buyers and sellers.
Luxury watches are a popular investment option for many investors, as they provide a steady return on their investment over time. In addition, luxury watches are a desirable status symbol for many consumers. This booming market has led to more investment in luxury watches, which will continue to drive growth.
Some of the factors driving the secondary market for luxury watches include consumer demand and supply dynamics. Consumers are seeking luxury watches that offer a high level of craftsmanship and quality, and they are willing to pay a premium for these products. In addition, supply has increased as more consumers are purchasing secondhand watches from online marketplaces.
Another factor driving the resale of luxury watches is the COVID-19 pandemic. During the pandemic, consumers shifted their spending habits and sought out quality, value, and convenience in their purchases. This has resulted in higher resale prices for luxury watches.
The resale of luxury watches is an important component of the luxury industry and will continue to grow in the coming years. This is largely due to the fact that resale offers better price transparency and liquidity for sellers. Additionally, resale allows sellers to avoid the high markups associated with traditional retail sales.
While the secondary market is thriving, it is important to keep in mind that this is not a sustainable model for luxury brands. For this reason, it is crucial for luxury brands to focus on building a strong brand story and engaging with Gen Z consumers. If they fail to do this, they may face challenges in the future.
It’s more diverse
The luxury watch secondary market is growing as more buyers are seeking alternative investments. A recent BCG study found that luxury watches are increasingly being considered by younger buyers as stylish accessories for their status-conscious lifestyles and also as viable investments, compared to traditional asset classes such as stocks or real estate. As a result, the market for pre-owned luxury timepieces is experiencing strong demand and short supply, driving prices up and creating waiting lists. Fortunately for sellers, this is creating an opportunity for them to capitalize on this trend.
It is standard for authorized dealers of high-end watch brands to carry only the latest models. However, they typically do not have vintage models, limited editions, or one-off pieces in their inventory (unless they also run a pre-owned watch business). This means that if you are looking for a rare watch, or one that is no longer produced, it’s more likely you will find it in the secondhand market.
Aside from the rarity factor, there are other reasons why the secondary market is booming. For instance, the pandemic has encouraged people to sell their luxury watches as a way of raising cash, which has made the available selection more diverse and affordable. This is especially true for older models of popular luxury watch brands, such as Rolex and Patek Philippe.
Another reason for the growth of the secondhand watch market is that it offers a much more convenient shopping experience than purchasing a new watch. Instead of visiting a physical store, customers can access the secondary market through online marketplaces that make it easy to shop and compare prices. This is an excellent way to ensure that you’re getting the best price for your money.
As the market for luxury watches continues to grow, it’s important for sellers to understand the dynamics of this industry and how to best serve their customers. By focusing on customer needs and providing exceptional service, they can increase their chances of success. As a result, they can take advantage of the thriving secondary market for luxury watches and grow their sales and revenue.
It’s easier to find
Unlike some new items, which drop in value immediately after leaving the showroom, luxury watches tend to hold their value or even increase in price when they go into the secondary market. This is due to their perceived investment value and enduring appeal. The popularity of the secondhand watch market means that prospective buyers can find the right model for their needs at a more affordable price. This makes the market a great option for those who want to start building a collection but can’t afford to purchase a high-end watch outright.
Furthermore, the secondhand watch market offers a more diverse selection than traditional new-market outlets. Authorized retailers typically only carry current models, unless they also run a pre-owned business. This means that the secondary watch market is a great place to shop for discontinued watches, rare timepieces, or even vintage pieces. It is also a good alternative for those who don’t like the style of a particular watch or are looking to get more bang for their buck.
It’s worth noting that the secondary market for luxury watches is growing faster than the primary markets. This is likely because of the increase in investment-minded buyers, particularly Gen Z and younger millennials who are eager to acquire pre-owned watches that can be sold or passed down later on.
The global secondary market for luxury watches is highly fragmented, with a large share held by multi brand stores. This is largely because these types of stores offer a wide range of different models from multiple brands, making it easy for consumers to explore their options. These types of stores are expected to continue to dominate the market in the coming years.
Moreover, the secondary watch market is also a growing hub for people who are looking to sell their watches. With the rise of online marketplaces, people are able to find more opportunities to sell their watches. This is especially beneficial for people who have unused watches lying around their house. These people can now easily sell them for a good price on online marketplaces.
It’s more affordable
If you’re looking to buy a luxury watch and aren’t ready to commit to full retail, the secondary market offers a more affordable option. This is particularly true for pre-owned timepieces from top brands like Rolex, Patek, and Audemars Piguet, which all saw their number of models selling above retail this year fall. In fact, the total for all three brands fell more than 20 percent this year compared to last.
Whether it’s to justify the latest splurge or to make a quick buck, some watch buyers are using the secondary market as an avenue for buying and selling vintage watches. For this reason, the resale value of luxury watches has become more prevalent and many collectors are considering secondhand pieces alongside new ones in their collections.
The growing interest in secondhand luxury watches has helped drive demand and fueled growth for the industry. In particular, the secondary market has grown rapidly in Asia Pacific, as consumers there are more likely to purchase used watches due to a combination of factors including shifts in consumer behavior and rising disposable income.
In addition, the secondary market has become a powerful platform for engaging with new customers. For example, online marketplaces have helped to increase visibility and allow watch dealers to reach a broader audience. These platforms also allow buyers to easily compare prices and features, and they can even request a personalized consultation with a dealer.
Luxury watch brands have also been leveraging the secondary market to reach younger audiences. They are partnering with young influencers to promote their products and use social media channels to interact with fans. This helps to create a sense of community and encourages engagement, which in turn leads to brand loyalty.
In addition, the secondary market is a place for collectors and investors to find deals on rare and limited edition watches. These rare pieces often sell for a significant premium over the original list price and can offer a good return on investment. Lastly, the secondary market has given investors a way to diversify their portfolios and hedge against inflation.
