The global luxury watch elite class vouch for pre-owned watch market big time and even go a step further to give it a point more than the largest watch retailers. Now the question is why they are in favor of this pre-owned watch market and how this market is rapidly taking over the watch market. Over the years, there has been a significant rise in the sales of used watches, both online and offline.
Pre-owned timepieces have made a strong fight back as the global luxury watch industry always shunned these not due to their supremacy but due to the fear that such sales will one day take over their market and cannibalize new watch sales.
However, luxury watch manufacturing industry was always lenient on the auction of rare vintage and limited edition collectible watches. This also had significant reason. The industry believed that such auctions reinforced the idea that luxury watches are always a good investment.
However, used watches always had its own market, though it is termed as a ‘secondhand market.’ Over time, this market grew in popularity and now you can even see a few big generic sites such as Amazon, eBay and others handful of smaller sites that are dedicated to such resale of watches. Though the primary market of these sites is the US but people from all over the world are turning on to this so called secondhand market to sell, buy, upgrade or enhance their collection of luxury watches.
Stats to impress you more
Knowing the stats will impress you more about this pre-owned watch market in which you will get a classic Rolex Presidential with a deep blue face and gold bracelet and diamond index or the most exquisite watch with a transparent dial and casing to see the clock ticking inside.
- The secondary inventory is often too large and widely varied making it difficult for the auction houses to handle it efficiently. In comes these pre-owned watch stores that has contributed more than $300 million to the watch industry in the terms of sale. Mind you, this figure is just a meager fraction of the new inventory. With such a surprising and impressive figure it is but natural that the luxury watches veterans will vouch for these pre-owned timepieces.
- There are a number of experts in luxury watch industry that have teamed up with these shops and online platforms along with some of the most renowned SEO experts to further boost up the sales of used watches. They are here to help build this market an international market and following in bigger markets such as Asia which is one of the most important watch markets in the world apart from Europe.
Developing the sites that have been around for several years, the SEOs are ensuring a higher rank in the search engines so that these are easily found and reached by people to result in an increased traffic. This in turn will raise the prospects of a sale with an improved rate of conversion.
More opportunities online
With the advancement and development in information and technology and easy and fast access to internet through mobile devices such as the smartphones, the opportunities to sell your watch have increased manifolds as compared to the sales opportunities through a brick and mortar store.
- The local shops have crossed the geographical boundaries of the market and have become global and have increased their reach to the international market. With the ease in transaction, shopping and payment over the digital platform, the process of sales is simpler, faster and more effective. All these have resulted in a considerable hike in the sales figures.
- Large pre-owned shops and online stores are fuelling the global expansion even more to make the best use of the ever increasing market of used watches which is already significantly big.
- According to experts and different study reports the used watch market is estimated to be $5 billion a year which is about 10% of the sales of new luxury watches estimated to be $45 billion a year.
- The functioning of the web portal is also different as compared with the traditional days. Now they take physical possession of all watches, restore them and then list them in their sites. All repairs are done by qualified and highly trained in-house service technicians using only original and branded parts.
- You can get a warranty for authenticity on these refurbished luxury watches as well. Buying these used watches at an average price of $10,000 a piece and then reselling them through a dedicated network at a spread of 15% to 20%, these pre-used shops can easily tout more than $200 million in total revenue. This signifies about a total compounded growth of 40%.
Providing local office support to the customers these online shops can easily relate to the concept of time and at the same time can serve as a meeting ground for all the watch aficionados.
Offered a new revenue stream
It is a well-accepted fact that the luxury watch manufacturing industry has suffered a serious setback after the global recession due to slowdown in sales industry-wide. It is for this reason that the watchmakers were looking for a new and better revenue streams which this online sources have provided through their second-hand sales. These sales are made at a discount of 25% roughly.
Several such watchmakers are queuing up and following the footsteps of the larger brands to set up a useful platform to buy and sell used watches online as well as offline. With such an influx in these distributive channels several analysts of luxury watches estimate that this pre-owned watch market will surpass the new sales in about five years.
It is all due to wide and expansive market of Asia that the luxury watchmakers are making up for the loss time. Therefore, this surprising benefit of the secondhand market can be rightfully said is the result of the financial crisis aftermath of 2009 that has benefited the manufacturing brands as well as the luxury watch lovers alike.