Generation Z, born between 1997 and 2012, are estimated to account for around 15% of today’s UK population – that is approximately 10 million people.
With an anticipated spending power of £353 billion globally, their economic influence is only going to get bigger.
And with Gen Z known for making informed purchasing decisions, alongside their desire for unique styles; their impact on the luxury watch market is set to be significant.
In fact, new research from certified pre-owned watch specialist Watchfinder & Co., looking into the purchasing habits of Gen Z in the UK, reveals that this generation is already making waves in the pre-owned luxury watch sector.
Over a third (35%) of Gen Z state they are likely to purchase a luxury watch within the next year. Research also shows Gen Z are spending more on luxury watches than other demographics – over 10% of Gen Z already own a luxury timepiece valued between £1,000-£7,500, 2% more than the market average (8%).
It will come as no surprise that social media is cited as the number one resource for Gen Z when it comes to watch shopping. 71% of Gen Z’ers said they turn to social media for inspiration, and over a tenth (14%) said they refer to influencer content when conducting watch research.
In addition, 13% admitted to being influenced by influencers or celebrities when it came to selecting a luxury timepiece for themselves.
GEN Z AND THE PRE-OWNED MARKET
However, despite their strong affinity with all things digital, Watchfinder’s research shows that Gen Zers still value traditional research methods and shopping experiences too.
Over a fifth (21%) of those surveyed said they seek opinions from friends and family, and almost a quarter (22%) reveal that visiting a brick-and-mortar jewellers or watch specialist is a crucial part of their purchase process.
This dual approach — embracing both the online and physical worlds — defines Gen Z’s unique relationship with consumer choices; they seamlessly navigate between digital platforms and face-to-face interactions, recognising the value of both realms.
Despite 54% of Gen Z’ers in the UK already owning a luxury timepiece and 15% of that group already beginning to build up a watch portfolio — a whopping 60% of Gen Z’ers agree that rising costs in the luxury watch market make new luxury timepieces unattainable.
This is creating huge opportunity for the pre-owned watch market. In fact, over 80% of Gen Z who have purchased a luxury watch purchased it pre-owned. And over half (58%) stated their primary reason for purchasing pre-owned was the better affordability.
But cost isn’t the only factor driving this generation’s purchasing decisions, choice is also increasingly important to them, with over a fifth (22%) revealing that having access to so many unique, rare and discontinued timepieces is a strong driving force behind shopping pre-owned.
So much so, linking to this — 16% state that the pre-owned market better helps them access timepieces that reflect their own personal look and style.
WHAT MAKES GEN Z TICK?
Gen Z is also proving to be more investment minded when it comes to luxury watches compared to their cross generational peers — 45% of under 20s consider luxury watches to be a good investment.
And over half of Gen Z respondents (51%) stated that cashing out to make a profit on a timepiece would be one of their primary motivations for selling a watch.
However, Gen Z aren’t just looking to cash in on timepieces – 15% stated that building a personal watch portfolio was one of their key reasons for purchasing a luxury watch.
Sustainability is also a key factor in Gen Z’s decision to purchase pre-owned. 54% of under 20’s agree that sustainability is an important factor in their fashion choices and 30% choose to purchase pre-owned as it is a more sustainable way to shop.
As a generation that has grown up alongside the internet, Gen Z is proving to be extremely vigilant when it comes to the potential risks of purchasing high value items online.
Concerns about the authenticity of watches (47%) and feeling vulnerable to being scammed (41%) topped their list of concerns.
With this in mind Gen Z are more likely to purchase pre-owned timepieces from established retailers and accredited specialists who authenticate their stock.
THE GEN Z HOT LIST
Brand prestige is a key theme for Gen Z — over a third (34%) of Gen Z’ers stated that owning a well-known, luxury brand is the driving force when it comes to purchasing a watch.
While it comes as no surprise that Rolex tops their list of most desired brands (with 58% of all Gen Z’ers aspiring to own Rolex), Omega (44%), Tag (39%) and Cartier (29%) are also experiencing real momentum in 2024.
The Cartier craze is unsurprising when you consider the wave of red carpet sightings including Dune’s Timothée Chalamet, Saltburn’s Jacob Elordi and Mr and Mrs Smith’s Donald Glover all spotted sporting small and discreet models such as the Crash or the Tank.
Gen Z’s growing affinity for independent watch makers is also notable with 12% of this generation looking at purchasing a Breitling.
Commenting on the findings, Watchfinder’s Ben Staniforth says: “Gen Z have made an explosive entry into the luxury watch market and with 35% looking to purchase a luxury watch in the next year, their impact is only going to grow. This demographic has already proven to have a really pragmatic approach to buying luxury watches — they seek authenticity and long-term value but, at the same time, they refuse to compromise on their own personal look and style. It’s an exciting time for us as the pre-owned sector is proving to be the preferred space for Gen Z to do their luxury watch shopping. With value, huge choice and guaranteed authenticity on offer it makes sense that as much as 80% of Gen Z purchased their first luxury watch pre-owned”.