Danny Govberg, CEO of Watchbox, has given his team a target of growing the company’s total inventory value to $120 million from around $70 million today.
If that inventory turns three times per year, around the industry average for traditional luxury watch retailers, sales would nudge towards half a billion dollars — figures that Mr Govberg declined to confirm.
The secondary market is notoriously opaque, so assumptions about the size and structure of the sector should always be treated with care, but it is widely assumed that half of the value of watches sold on the secondary market are from Rolex.
Interestingly, Watchbox’s inventory mix is nowhere near as skewed towards Rolex, which Mr Govberg says is because margins are thinner due to much greater competition to buy key models, particularly the steel sports watches that have been red hot over the past year in the United States.
“We are more like 15% Rolex,” Mr Govberg told WatchPro on a visit this week to the company’s Philadelphia headquarters. “We have more money tied up in F.P. Journe today than Rolex because we have made a market for F.P. Journe and make better margins,” he adds.
Despite ever-rising competition to buy pre-owned and ex-stock Rolexes, Watchbox hopes that around one third of his inventory will be from the brand, taking the company’s stock value for Rolex from around $10 million today to $40 million.