The UK’s leading Rolex dealer expects a surge in the sale of second-hand luxury timepieces as inflation squeezes wealthy consumers’ spending.
Watches of Switzerland, a retailer of upmarket watches, said Tuesday that used timepieces will make up a large part of its sales in the next five year after pre-owned watch sales rose by 80pc over the past six months.
Brian Duffy, the chief executive of the company, stated that the company is “excited” by the opportunities available in the used market.
He said that by 2028, sales of used Rolex watch via the Swiss watchmaker’s “certified Pre-owned” program are expected to account for around 20pc and 10pc respectively of the new Rolex sales.
Watches of Switzerland has insisted that demand for luxury watches is “stronger” than ever, despite fears of the slowdown of the luxury goods industry.
Luxury goods sellers have been faced with the possibility of a economic slowdown in China, a market that is a major source of expensive products. In the West, high interest rates have also caused wealthy consumers to tighten their purse strings due to the rising cost of mortgages.
Alistair Hughes, director of Savoir Beds which sells handmade mattresses and beds costing thousands of pounds said, “It is those who work instead of investing.”
There’s no doubt that those professionals are affected. They are also a significant part of our business.
Watches of Switzerland also has to scramble to reassure investors, after Rolex bought Switzerland’s largest Rolex retailer Bucherer. This sparked fears that Rolex might favour Bucherer when allocating stocks.
The shares of Watches Of Switzerland have dropped by nearly 35pc in the past year.
The company reported on Tuesday that its revenues for the six-month period ending Oct. 29 were the same as the previous year.
It said that it wants to expand its luxury jewelry business. As markets opened, shares in Watches of Switzerland rose more than 12pc.
“We’re now in a perfect position to use our luxury watch model, and our expertise to elevate luxury brands into this growing category,” Mr Duffy said.
Porsche has also said that the high cost of borrowing, as well as rising prices, have started to affect its wealthy customers.
Lutz Meschke said that last month, drivers had become more “reluctant to buy” luxury cars since “governments raised interest rates heavily”.
He said: “It also hits the luxury industry. You can follow it by looking at share price developments of all luxury retail stores worldwide.”