Secondhand luxurious watches have become increasingly fashionable in recent years especially among younger buyers, a recent report claims.
One of the most sought-after item for collectors these days is a used high-end watch.
Secondhand luxury watches from brands like Rolex as well as Patek Philippe have become increasingly popular in recent years, especially for younger buyers, as per an article published in the month of March from Boston Consulting Group. Secondhand luxury watches were becoming more expensive as demand increased however supply was still limited, BCG said.
These watches are now popular that the demand for them has outpaced general stock market, increasing approximately 20% per year from mid-2018 until 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.
Many collectors have embraced watches as not only accessories, but as investment tools that help to be used to hedge against the effects of inflation and diversify their portfolios. In recent years, some of the most prominent alternatives to investing have included the art market baseball cards, as well as the presently-struggle cryptocurrency.
Collectors typically pay twice or even triple the cost of an old watch, or one that recently left the shop according to 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 have recently been were auctioned off on secondhand sites up to $38,500 in accordance with BCG. One of these platforms, WatchBox, helped fund BCG’s most recent research into watches.
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The latest luxury watches are more difficult to find as usual due to the fact that prior to the outbreak, manufacturers shut down their factories or cut production. Collectors are more likely to locate the watches they’re looking for on secondhand websites that have been more sophisticated in recent times, according to BCG.
Certain people prefer expensive watches as a reflection of their individual style. Others view the watches as precious heirlooms that outlast other items of collector’s value. BCG found a box of used watches that has performed better than indexes that track handbags art and wine in the past 10 years.
Researchers from BCG believe there are two motives why that people are spending thousands of dollars on used watches Secondhand marketplaces are becoming increasingly viable options to purchase watches and social media platforms have created buzz around watches as an investment piece.
Bryan Ang, 31 years old is a part of a rapidly growing community on Instagram of used luxury watches followers. 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 consider secondhand watches as rentals,” said Mr. Ang an agent of a fruit distributor in Manila. “You use it for time then you’re enjoying it, and find yourself thinking, ‘I don’t think I’m wearing it.'”
The Mr. Llinas from BCG said the younger generation is more likely to purchase pre-owned luxury watches while older buyers tend to purchase timepieces brand new. The millennials take a more business-oriented approach when it comes to building collections.
“They aren’t as associated with certain timepieces,” said Mr. Llinas. “Sometimes they’ll even resell watches to acquire one that’s more sought-after.”
In 2021, used watches comprised almost a third of the $75 billion market for luxury watches around the world as per BCG. Watch sales for preowned models increased by 3% in 2020, after the pandemic began, even though the number of new watches sold dropped 17% the year before.
Collectors are more likely to turn to watch buying websites that sell secondhand watches rather than visit the store to buy a watch or at auctions as per BCG. Sellers post 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 models comprise those from the Patek Philippe Nautilus, Audemars Piguet Royal Oak and the Rolex Daytona, according to BCG. Certain models are available for sale at hundreds or even hundreds of thousands on secondhand marketplaces.
The most vibrant models that were sold on secondhand sites this week included the Rose gold Audemars Piguet watch with rainbow sapphires for sale at $315,000. For just $3700, a collector can purchase an Richard Mille watch that is decorated with a smiling face and an oversized pineapple.
Mr. Llinas stated that collectors are attempting to make a profit by purchasing secondhand watches instead of waiting many years for watchmakers’ to sell their most sought-after models.
“If you truly want a watch and are extremely obsessed regarding it” He said that “the most effective way for you to acquire the watch is via the second-hand market.”