Pre-owned watch market normalises after the speculative boom

Zurich – The frenzied demand for pre-owned watches has subsided, but the market continues to organise itself and grow faster than that of new watches, according to a study published on Thursday by Deloitte.

The pre-owned watch market had accelerated in the wake of the Covid-19 pandemic before experiencing a sharp reversal, but remains poised for a bright future, according to the study.

“Over the next decade, the secondary market will be equivalent in size to the primary market,” predicts the study, led by Karine Szegedi, a partner specialising in consumer and luxury goods at the audit and consulting firm.

Pre-owned watch markets witnesses a surge during Covid

“The speculative bubble has burst” and “the pre-owned watch market has normalised in recent months”, creating conditions in which buyers can access “with greater peace of mind” a market that continues to structure itself, according to the report.

For several years, pre-owned watches have been considered a high-potential segment. As early as 2018, the Swiss luxury giant Richemont, owner of watch brands Piaget and IWC, among others, took an interest by acquiring the British platform Watchfinder. Other brands from major groups had also developed their offerings, such as Zenith, owned by French luxury conglomerate LVMH, the world leader in the sector, with a certified pre-owned watch programme for rare models.

But the market went into overdrive with the Covid-19 pandemic. Between reduced supply due to production disruptions, the explosion of online sales when stores were closed and lengthening waiting lists for the most sought-after models, some consumers turned to pre-owned models, giving a boost to this market.

The surge in prices attracted buyers “eager for the quick profit opportunities offered by this rapidly growing market” and encouraged the creation of online sales platforms, which multiplied.

“This explosive growth peaked in March 2022,” the study outlines, before the market reversed, leading to two years of falling prices in the pre-owned market before stabilising in 2024 “at a level slightly higher than that recorded before the pandemic.” Several platforms have since gone bankrupt, and speculators are now “less active” since the bubble has “faded,” the study adds.

Pre-owned watch market gets organised

With the period of frenzy over, this market is finding its footing with a growing clientele. According to consumer surveys conducted by Deloitte, which publishes an annual watch industry study, the number of people who say they are likely to buy a pre-owned watch doubled between 2020 and 2024.

The offering is also becoming more structured, with watch brands themselves continuing to invest in this segment so as “not to leave the field open” to other players in the market.

In 2023, the watchmaking giant Rolex acquired the Swiss retailer Bucherer to launch a certified pre-owned programme with them, first in Europe and then in the United States. At the end of November 2024, Rolex took a further step by opening “its first boutique dedicated exclusively” to the sale of its pre-owned models with the largest distributor in the Middle East in Dubai, the study notes. (AFP)