The market for luxury watches is experiencing a shift, with Rolex and Patek Philippe seeing a decline in prices for their higher-end timepieces. Conversely, mid-tier watches from Cartier are performing well. This trend is mirrored in the Bloomberg Subdial Watch Index, which tracks the prices of the 50 most traded watches on the secondary market.
In the past month alone, the index has dropped by 1.1%. This can be attributed to a variety of factors, including higher interest rates, slowing economies, and the crash in cryptocurrency values. As a result, pre-owned models from Rolex, Patek Philippe, and Audemars Piguet have seen a significant decrease in prices. Over the course of the past year, the index has fallen by an estimated 14%.
Despite the decline in values, trading volumes for luxury watches remain relatively high. Additionally, the rate of price declines is slowing, suggesting a possible stabilization in the market. While renowned Swiss brands like Rolex, Patek Philippe, and Audemars Piguet continue to face challenges, more affordable brands like Cartier are displaying signs of strength and stability.
The Subdial Cartier Index, which focuses on 25 of the most popular and frequently purchased Cartier watches, has only experienced a 2.5% decline since the start of the year. Furthermore, it even recorded a 1.6% gain in the last month. This performance is remarkable when compared to the Bloomberg Subdial Watch Index, which has seen a 7.4% decrease since the beginning of the year.
One of the reasons for Cartier’s relative success is the availability of their watches. While Rolex, Patek Philippe, and Audemars Piguet timepieces are primarily sold above their retail price on the secondary market, Cartier watches are more accessible, allowing customers to purchase them new in stores. Moreover, Cartier watches generally sell for less than their retail price when resold.
Cartier, which is owned by Swiss luxury goods conglomerate Richemont, has been able to maintain demand and price stability despite the challenges faced by the luxury watch market as a whole. As the industry continues to evolve, it will be interesting to observe how these trends develop and whether other brands can replicate Cartier’s success.
Useful links:
1. Rolex Official Website
2. Patek Philippe Official Website
