Secondhand luxurious watches have become increasingly popular in recent times particularly among younger buyers, according to a new report states.
One of the most sought-after collectibles of the moment is a second-hand high-end watch.
The expensive secondhand watches of brands like Rolex as well as Patek Philippe have become increasingly popular in recent times, particularly among younger buyers, as per an article published in the month of March from Boston Consulting Group. Used luxury watches became more expensive as demand increased however, supply was scarce, BCG said.
These watches are now so sought-after that the market for them has surpassed the general market by approximately 20% per year between mid-2018 and the beginning of January, in contrast to that of the S&P 500 index’s yearly growth rate of 8% over the same time frame, BCG said.
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Watches are now seen by more collectors as more than just accessories, but as investment pieces that help to protect against rising inflation and diversify their investments. In recent years, prominent alternatives to investing have included the art market as well as baseball cards, and the current frenzied cryptocurrency.
Collectors usually pay twice or even triple the cost of an old watch, or one that recently left the shop as per Nicolas Llinas, a principal consultant at BCG’s consumer practice division who contributed to the report. For instance, Rolex Cosmograph Daytona watches with a retail value of $14,800 were recently were sold on secondhand websites up to $38,500 in accordance with BCG. One of these platforms, WatchBox, helped fund BCG’s most recent research into watches.
The latest luxury watches are harder to come across more than usual, due to prior to the outbreak, factories were shut down or reduced production. Collectors tend to find the watches they’re searching for on secondhand sites that have been more sophisticated in recent years, as per BCG.
Certain people prefer expensive watches as a reflection of their individual style. Some view them as precious heirlooms that outlast other items of collector’s value. BCG found a box of used watches that has performed better than indexes tracking handbags, art, and wine in the past 10 years.
Researchers from BCG believe there are two motives why consumers are spending thousands on used watches Secondhand marketplaces have become increasingly attractive options to purchase watches and social media communities have created buzz around watches as investments.
Bryan Ang, 31 years old is a part of a rapidly growing community on Instagram of luxury preowned watch enthusiasts. He frequently shares photos of the watches that he has in his collection, such as his personal favorite that is his Rolex Datejust with a special white dial.
“I am interested in second-hand watches as rental items,” said Mr. Ang who is a distributor of fruit in Manila. “You use it for few minutes then you’re enjoying it, and find yourself thinking, ‘I don’t think I’m wearing it.'”
Monsieur. Llinas from BCG said that millennials are more likely purchase pre-owned luxury watches while older buyers tend to purchase timepieces brand new. According to him, millennials take a more business-oriented approach when it comes to building collections.
“They aren’t as connected to certain timepieces,” said Mr. Llinas. “Sometimes they’ll sell a watch to purchase one that is more sought-after.”
In 2021, used watches made up almost a third of the $75 billion market for luxury watches around the world According to BCG. Preowned watches sales grew by 3 percent in 2020 following the pandemic began, even though the sales of new watches dropped 17% the year before.
Collectors are more likely to turn to buying secondhand watches on platforms other instead of visiting an online store for watches or at auctions according to BCG. Sellers advertise their watches on websites that sell secondhand watches where buyers look for the most sought-after models and coolest models.
The most sought-after secondhand watches are those from the Patek Philippe Nautilus, Audemars Piguet Royal Oak and the Rolex Daytona, according to BCG. Some of these models are sold for hundreds or even millions of dollars through secondhand marketplaces.
The most vibrant models available on secondhand marketplaces this week included the pink gold Audemars Piguet watch with rainbow sapphires for sale at $315,000. A collector for $3,700 could own the Richard Mille model, which is adorned with a smiling face and the pineapple.
Mr. Llinas claimed that collectors are attempting to make a profit by purchasing secondhand watches instead of waiting many years for watchmakers’ to sell their preferred models.
“If you really want to own a watch and are extremely obsessed in it” He said that “the best way to purchase the watch is via the second-hand market.”