Pre-owned watch traders and marketplaces are celebrating news that Rolex is legitimising the buying and selling of second hand watches.
Once seen as pariahs and parasites of the saintly Swiss luxury watch scene, the likes of Chrono24, WatchBox, Chronext and Bob’s Watches can barely conceal their excitement at their industry being called in from the cold.
Not that Rolex was in any mood to welcome these operators, insisting: “Rolex watches – new or second-hand – should only be bought from Official Rolex Retailers, who are authorized to sell and care for Rolex watches”.
Tim Stracke, CEO of Chrono24, is more magnanimous. “Welcome to the party,” he posts on LinkedIn, as Rolex joins the pre-owned watch market.
“We expect this announcement will give the secondary market an even deeper legitimisation as it acknowledges its relevance further,” Mr Stracke adds.
He also draws battle lines as Rolex’s authorised dealers enter the fray with Rolex-certified second hand watches to trade, suggesting there will be a price to pay for customers choosing the Rolex-proscribed route.
“We expect a 15-25% price premium [for Rolex CPO watches] versus a comparable Chrono24 offer. Would you be willing to pay that?” he asks.
Rolex already accounts for 40% of Chrono24’s transaction volume, according to Mr Stracke, and he expects that to rise.
Once seen as pariahs and parasites of the saintly Swiss luxury watch scene, the likes of Chrono24, WatchBox, Chronext and Bob’s Watches can barely conceal their excitement at their industry being called in from the cold.
“There are an estimated 30 million Rolex watches in global circulation. This move will incentivise even more first time buyers to try to get their hands on their first Swiss trophy timepiece. Already we see Rolex making up 44%+ of all purchase requests from our 18-34 yrs old users. I anticipate this announcement will only fan the flames of demand for Rolex on our platform, and we’re very excited to see how Geneva’s other luxury brands will respond,” he concludes.
Danny Govberg, co-founder of WatchBox, a specialist in trading collectible watches, and also CEO of Govberg Jewelers in Philadelphia, a Rolex authorized dealer, believes we are only at the beginning of the Rolex journey into pre-owned.
“They will have been thinking about this for years, and taking their time to get it right. They were late to the internet, and now do an amazing job; they were late to social media, and look at them now. It is unusual that Rolex is so early into pre-owned, compared to the rest of the Swiss watchmakers. They will build it up, they will learn, and they will become the best,” Mr Govberg predicts.
Paul Altieri, founder and CEO of Bob’s Watches, a major American specialist in trading pre-owned and vintage Rolex watches, was stunned by the news that Rolex was taking a direct stake in trading second hand watches.
“It is like waking up and hearing that the United States bought Canada,” he joked on a call with WATCHPRO. “It is kind of shocking for Rolex to do something like this.”
Like Mr Stracke, Mr Altieri is seeing Rolex’s plan as a fillip for the pre-owned industry. “I think it is an endorsement, a validation, it is good news,” he suggests.
Phillip Mann, CEO of Chronext, agrees. “Its a great thing for the industry, making pre-owned even more top of mind and making the market larger for everyone! Just like the car manufacturers who have for instance Porsche Approved – it brings pre-owned into focus as a real alternative for more people,” he says.
