Report From BCG Says, “Luxury Pre-Owned Watches, Your Time Has Come”

<h4 style="text-align: center;">Correction notwithstanding, pre-owned watches continue show impressive performance as investments.</h4>

This won’t be news to anyone who has been following, and investing in, pre-owned watches for the last few years, but despite recent downward corrections this year in prices for the most desirable pre-owned models from brands like Audemars Piguet, Patek Philippe and Rolex, pre-owned watches continue to represent an asset class that has grown in value ahead of others – and, moreover, which are expected to continue to grow in value in the future.
In a study published this month, Boston Consulting Group, in collaboration with WatchBox, looked at the performance of watches in the pre-owned market and found, among other things, that from mid-2018 through January of this year, the market for pre-owned watches has grown about 20% annually, outpacing the S&P index’s yearly growth rate of 8%. The study has been cited by, among others, <a href="https://www.wsj.com/articles/used-rolexes-are-beating-the-stock-market-16b3b13b" target="_blank" rel="noopener">The Wall Street Journal</a> and <a href="https://usa.watchpro.com/rolex-audemars-piguet-and-patek-philippe-drive-watch-market-towards-100-billion/" target="_blank" rel="noopener">WatchPro.</a>
<div id="attachment_1166588" style="width: 1410px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-1166588" decoding="async" loading="lazy" class="wp-image-1166588 size-full" src="https://watchbox-blog.imgix.net/wp-content/uploads/2023/03/Screen-Shot-2023-03-15-at-10.43.48-AM.png?max-w=1024&q=50&auto=format,compress&usm=10&usmrad=3" alt="Luxury Watch Performance vs. S&P 500" width="1400" height="1189" />Graph: Boston Consulting Group</div>
Pre-owned watches have exploded in popularity in recent years, fueled by increasing demand for and interest in luxury watches overall. Once a very niche collectible with limited perceived investment value, pre-owned watches have become highly coveted not only as collectibles, but as an alternative asset class for investors looking for hedges against inflation. While some alternative assets have lost some of their luster recently – notably, cryptocurrency – pre-owned watches appear to offer, if not guaranteed growth, at least a solid longer-term category.
Part of the engine driving increased demand is the lack of availability of key models from top performers Rolex, AP and Patek in recent years. Especially for stainless steel sports models like the Nautilus, Royal Oak, and Rolex Daytona, Submariner and GMT Masters, interest has been so high that manufacturers have been unable to keep pace. The result, as any enthusiast is aware, are years-long wait lists at retailers, and prices two to three times retail in the pre-owned market.
<div id="attachment_1166589" style="width: 1410px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-1166589" decoding="async" loading="lazy" class="wp-image-1166589 size-full" src="https://watchbox-blog.imgix.net/wp-content/uploads/2023/03/Screen-Shot-2023-03-15-at-10.45.23-AM.png?max-w=1024&q=50&auto=format,compress&usm=10&usmrad=3" alt="Price Premiums on Second Hand Market vs. Retail" width="1400" height="1256" />Graph: Boston Consulting Group</div>
According to BCG, watches in the pre-owned market from 2005 through 2022 performed comparably to, and in some cases better than, other collectibles, including jewelry, handbags, furniture and, of course, the stock market, and growth in the value of pre-owned watches 2021-2022 outperformed cars, wine and art in growth (though not in total value). According to the report, “Buyers regard the category as a stable investment built on reputable brands and supported by a consumer base of high-net-worth individuals. In the ten-year period from 2013 to 2022, watches outperformed collectible assets such as jewelry, handbags, wine, art, and furniture, growing in value at an average annual rate of 7%—and by 27% from 2020 to 2022—according to indices that track these categories.”
The growth of reputable, trustworthy sellers of pre-owned watches, has done much to turbocharge the growth of the pre-owned market as well. In an interview in <a href="https://robbreport.com/style/watch-collector/watchbox-ceo-justin-reis-interview-acquisitions-new-stores-1234656645/">January of 2022 with Robb Report</a>, WatchBox co-CEO Justin Reis remarked, “It’s true that people are not distinguishing as much between new and pre-owned, because the standards are getting much better. Our standard is to offer watches that are in near-new condition … we buy watches we believe in, and in that sense, we are also collectors.”
BCG’s report says that pre-owned watches now represent 30% of the worldwide $75 billion market for luxury watches. Increasingly, independent brands are an essential part of the equation as well: “Several independent brands and models—especially those seen as high value, unique, or hard to find—are performing strongly, too, including F.P.Journe, De Bethune, and H. Moser & Cie.”
For the full report, <a href="https://web-assets.bcg.com/d9/2c/54d07ddd411aae9a095519930101/bcg-luxury-preowned-watches-your-time-has-come-mar-2023.pdf">visit BCG.com.</a>
WatchBox partnered with BCG on the report, which included data from other sources and experts as well.

Audemars Piguet Patek Philippe Rolex

Written By

Jack Forster

WatchBox Global Editorial Director Jack Forster has been fascinated by every aspect of watches, clocks, and watchmaking for his entire life. He began systematically studying and learning about watches over 20 years ago, and during the first explosion of watch enthusiast forums, he became a moderator on thepurists.com. Jack became a full-time watch writer in 2007, when he joined Revolution Magazine, first as group technical and features editor, and then as editor in chief of Revolution Magazine USA. He joined the enthusiast website Hodinkee in 2015 as managing editor and then as Editor in Chief. In 2022, Jack joined WatchBox as the Global Editorial Director. He is the author of Cartier Time Art: Mechanics of Passion, and has written about watches, and other subjects, for many other venues including CNN, American Express Departures, and Vanity Fair.

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