Unusual global demand for elite watches, in the face of limited manufacturing by manufacturers, has led to $ 30 billion in second-hand market growth, and an onslaught of startups wanting to be the leading virtual store.
The corona plague brought with it another surprise: demand is rising for luxury watches. But the four big brands hold on to their limited manufacturing policy, which preserves the prestigious status of their product over the years. Consumers have found a creative solution to the limited supply – second-hand online stores.
The new stock and crypto enrichers, who want to flaunt status symbols like a luxury watch in their Instagram photos, have ignited the vintage watch market. According to estimates by the McKenzie Research and Consulting Corporation, second-hand luxury watch online sales reached $ 18 billion in 2019, and may rise to $ 30 billion by 2025, with a jump of more than 50% in just five years.
To illustrate – Petek-Philip’s second-hand watch was sold at auction this year for $ 490,000, more than 10 times its original value; A second-hand Rolex watch jumped by almost 80% in five years, to a price of $ 50,000.
Those who understand say that the market for second-hand luxury watches is still hacked and unsupervised, which means that there are many platforms for such transactions and customers do not always know with whom they are making the transaction, and whether the product is authentic and working properly.
Now that the market is gaining momentum and the potential for profits is growing, online stores and start-ups are in a hurry to adapt, to become the leaders in the online market. For example, this week the Hudinky company launched its online store and recruited investors such as football player Tom Brady, singer John Mayer and more, and in total managed to raise $ 40 million.
The German company Chrono-24 also recently raised 100 million euros to realize its ambitious intentions. The company reported that it would trade in half a million watches, of more than 3,000 merchants worldwide, and another 30,000 private sellers. And even eBay is already targeting itself in this market, especially for the elite consumers of Rolex watches, with the launch of a special track for buying and selling, which will ensure originality.
The exceptional growth of the second-hand market is influenced by the four leading brands – Rolex, Patek Phillip, Odmer Peugeot and Richard Mila – which maintain limited output, to ensure the rarity of their watches and thus their prestige. The question is whether the big manufacturers will join the surprising growth of the market, or whether they will remain restrained in the face of the tempting profit potential. For now, according to research and advisory group Morgan Stanley, they appear to be fortified in their position.