Secondary watch market in 2023.
As the world’s premier watch trading auction platform for secondary luxury watches, Klockchain has a unique perspective on the luxury watch market. Based on our data and analysis, we predict that the secondary luxury watch market at auction in 2023 will be incredibly strong.
One major factor driving this growth is the increasing popularity of luxury watches as a form of investment. This increase in demand started in 2018 when the growing waiting lists of retailers became unrealistic. This was mainly driven by the strained primary market for brands like Rolex, Patek Philippe, and Audemars Piguet, whose iconic models have long enjoyed excess demand, leading to a booming secondary market where prices exploded, reaching stratospheric levels.
The pandemic also played a role in this trend, as many began using their crypto profits to purchase luxury watches, driving up the watch prices in the secondary market. Some were understandably concerned that the rather explosive price increase was not sustainable.
In November 2021, Morgan Stanley published a report entitled “Swiss Watches as a Play on Crypto Wealth”, which estimated that if only 0.5% of cryptocurrency revenues were invested in luxury watches, this would lead to an additional €10 billion in demand. , which would disrupt the entire watch market, then 2 billion euros at the primary level and another 20.8 billion euros at the secondary level.
As we all know, the crypto bubble burst, leading to some well-known watch models taking big hits on the secondary market since April 2022. Iconic watches that enjoyed the most publicity in the previous two years saw the most significant drop.
However, to put things into perspective, today’s steel Rolex Daytona still sells on the secondary market for nearly double the retail price. As a result, the increase in Daytona’s aftermarket value over the past five years has been impressive.
More broadly, watches have proven more resilient than most other asset classes, including stocks and crypto, during the recent downturn. Last but not least, Gen Z consumers are still entering the market, and many are starting to see watches as a value class, giving the market even more fuel.
Overall, the secondary luxury watch market in 2023 will be incredibly robust, with high demand driven by a growing appreciation for the value of luxury watches as an investment. Klockchain is well-positioned to take advantage of this trend, and we look forward to providing our users with unparalleled access to the world’s most sought-after watches.