The demand for Swiss watches is soaring, but a new trend is emerging in the market for second-hand timepieces. Generation Z, young individuals born between 1997 and 2010, is spearheading this movement, driven by their desire for luxury goods and sustainable choices.
According to Deloitte, the global second-hand watch market is currently valued at approximately 20 billion Swiss francs ($21.7 billion) and is expected to reach 35 billion francs by 2030. Previously, this market was predominantly fueled by collectors seeking rare watches at auctions. However, with the rise of online sales platforms that authenticate the authenticity of the products, the second-hand watch market has evolved into a more professional industry. Even watch manufacturers themselves are entering the second-hand market.
In November, Fabienne Lupo, the former head of the Foundation High Horology, organized a second-hand luxury watch salon in Geneva. The event attracted major players in the industry, including eBay, Watchbox, and Zenith. Lupo believes that the growing popularity of second-hand watches can be attributed to the consumer choices of Millennials and Generation Z, who prioritize sustainability and are no longer interested in purchasing brand new items. There is also increasing fascination with vintage objects that are unique and not easily found elsewhere. Additionally, acquiring certain Swiss luxury watches brand new has become challenging due to high demand and extended waiting lists.
The expansion of the pre-owned watch market has sparked the development of new online platforms. Subdial, a British platform, has created an index to track the 50 most-traded models. Deloitte’s study also revealed a decrease in average prices, dropping from a record high of 45,000 Swiss francs in February 2022 to 35,000 francs in September. However, this price correction does not indicate a shrinking market, but rather a shift in consumer behavior.
The emergence of certified pre-owned (CPO) watch sales platforms continues to attract new entrants to the market. One noteworthy example is the US site Bezel, which has received investments from prominent figures such as former Disney president Michael Ovitz, comedian Kevin Hart, and singer John Legend. Luxury conglomerate Richemont, which owns renowned brands like Cartier, IWC, and Piaget, entered the pre-owned watch market in 2018 by acquiring the British platform Watchfinder. Rolex also recently launched a CPO program in collaboration with Swiss retailer Bucherer, aiming to authenticate their pre-owned watches. The program is already operational in six countries, with plans for future expansion into the United States.
Historically, watch manufacturers have been wary of the secondary market, as it was associated with the grey market where discounted watches could be found. However, they now recognize the positive impact of strong secondary prices, which enhance the brand value of their primary watches. Some luxury brands, like Richard Mille, view second-hand timepieces as a means to enhance their image. Alexandre Mille, the current head of Richard Mille, shared an anecdote about a customer who had always dreamt of owning a limited edition watch that is no longer in production. With a dedicated team, Richard Mille can track down the coveted timepiece.
Deloitte’s study revealed that 44 percent of respondents were motivated to purchase second-hand watches as they offered a more affordable option. However, second-hand watches also serve as a “store of wealth,” capable of being worn and showcased for years while retaining their value for resale to fund the purchase of another watch.
The growing appetite for second-hand luxury watches among Generation Z is paving the way for a thriving market. As sustainability and uniqueness gain increasing importance among younger consumers, the second-hand watch market is expected to continue its growth trajectory. Watch manufacturers are adapting to this evolving landscape by embracing the secondary market and providing opportunities for buyers to acquire authentic pre-owned timepieces. With the expansion and professionalization of online sales platforms, finding a coveted luxury watch has become more accessible than ever before.
Useful links:
1. The Business of Fashion – Pre-Owned Watches Are About More Than Just Price
2. Revolution – The Second-Hand Watch Market Party Begins!
