The market for second-hand watches - France

The second-hand luxury watch market has experienced significant growth lately, thriving despite a global pandemic, with an increase in demand buoyed by consumers seeking safe-haven assets such as pre-owned luxury watches. A notable dip in the prices of the top fifty most resold luxury watches occurred between May and October 2022, falling by 18%, yet the market is still expected to expand by 75% by 2030. In France, the market mirrors this positive trend, registering 1.7 million searches by French consumers in 2022 for just five types of vintage luxury watches. The luxury watch market globally was valued at $24 billion in 2022 and is projected to reach $35 billion by 2026, growing at an 8.3% annual rate.

On the other hand, the French watch industry's market value decreased from 1.760 billion euros in 2014 to 1.530 billion euros in 2021, struggling to regain its 2019 level of 1.879 billion euros. The demand is largely driven by younger consumers, with an 11-point increase in interest in second-hand luxury watches from 2020 to 2021. Environmental concerns and lower purchasing power significantly contribute to the popularity of second-hand watches. Moreover, the auction market for luxury watches remains robust, with Drouot's Art & Collectibles category seeing a 40% rise in 2021, hitting a record €4 billion in sales. Despite new challenges, traditional watchmakers like Rolex have entered the certified pre-owned segment, providing authenticity guarantees to compete with the growing dominance of online platforms like Chrono24. Counterfeiting remains an issue, affecting consumer trust and directly competing with the legitimate market due to cheaper, high-quality replicas.

The Rising Popularity of Pre-Owned Luxury Timepieces in France

The French market for second-hand luxury watches has seen considerable growth over recent years, a trend reflecting global market dynamics but with local nuances. Especially noteworthy is the amplifying role of younger consumers in driving demand within this niche.

Key Trends in Second-Hand Luxury Watch Demand

The younger generation, affluent yet environmentally conscious, is progressively turning to the pre-owned luxury watch market, as highlighted by the substantial increase—from 21% to 32%—in the number of people considering purchasing a second-hand luxury watch between 2020 and 2021. These consumers are not only driven by the acquisition of status symbols but also by the desire for sustainable consumption practices.

The French market seems to have bucked the trend of declining sales in new luxury watches. While there was a drop in overall watch sales by about 14% from 2020 to 2021, with only between 9 and 10 million watches sold in 2021, the luxury segment maintains its allure. It represents approximately 1% in volume but commands around 42% in market value, indicating the premium placed on such items. The pre-owned market for luxury watches in France, estimated by proportionality with global markets, could range between approximately 200 and 280 million euros. This growth points to a robust demand for second-hand luxury timepieces, driven by young consumers under the age of 40 and diminishing purchasing power which makes the affordability of second-hand items an attractive prospect.

Additionally, a significant portion of demand stems from watch collectors and enthusiasts who frequent auction houses, contributing to the vibrancy of this segment. Collectors form a diverse group but notably include a significant percentage of seniors over 65 years old and a vibrant current of active young collectors, particularly those between the ages of 18 and 24.

A Market Bolstered by Digitalization and Environmental Awareness

The digitalization of sales has played a significant role in the accessibility of pre-owned luxury watches, with specialized websites gaining popularity as platforms of choice for both experienced and new buyers. The preference for online channels is ever-increasing, encouraging the expansion and success of international and French online platforms. Environmentally-driven purchases are also on the rise. Consumers are increasingly aware of the ecological footprint of new watches and their production processes, encompassing the mining of materials and associated transportation pollution.

The Titans of Time: Profiling the Dominant Forces in the Luxury Watch Market

As we delve into the inner workings of the luxury watch market, several prominent conglomerates stand out, their names synonymous with quality, heritage, and opulence. Three international groups in particular - LVMH, Richemont, and the Swatch Group - command significant respect and revenue, both within the traditional new luxury watch sphere as well as the burgeoning pre-owned and vintage watch markets.

LVMH (Moët Hennessy Louis Vuitton) is a global titan in luxury goods, with an empire that extends beyond haute horlogerie to include fashion, leather goods, wine, and spirits. Reported to possess an extensive portfolio of prestigious watchmakers, LVMH is home to brands like TAG Heuer, Hublot, and Zenith, each exuding their own distinctive style and mechanical prowess. Their impressive versatility and reach across different luxury sectors allow them to continuously adapt to market trends, including the shifts towards digital retail platforms and the increased demand for certified pre-owned watches.

Richemont is renowned for its high-end jewelry and luxury watches, with a roster that includes some of the most venerable names in watchmaking such as Cartier, IWC Schaffhausen, and Panerai. The Swiss-based conglomerate is an embodiment of craftsmanship and timeless elegance, attributes highly sought-after in the vintage watch market. Its active participation in the second-hand watch segment is reflected in its acquisition of Watchfinder, which has helped Richemont tap into the fast-growing certified pre-owned market.

The Swatch Group is the behemoth behind many of the world's most famous watch brands, such as Omega, Longines, and Breguet. They sit at a unique position between mass-market appeal and exclusive luxury, with a varied portfolio that appeals to a diverse clientele. The Swatch Group's impact on the luxury watch market stretches further still, as they supply crucial movements and components to numerous other brands, thereby influencing the industry from the ground up.

While these groups have a stronghold on the industry, the landscape is becoming increasingly competitive due to the infusion of digital platforms that are democratizing the watch-acquiring process. Platforms such as Chrono24 and eBay are challenging traditional retail models, introducing new ways for collectors and enthusiasts to purchase and sell luxury timepieces worldwide. Through strategic maneuvers - including launching their own second-hand certification programs and embracing e-commerce - these juggernauts have shown adaptability in a market that is rapidly evolving

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 05/05/2023

Summary and extracts

List of charts

• Luxury watch market
• The French watch market
• How likely is it that you will buy a second-hand luxury wristwatch in the next 12 months?
• Do you plan to buy a used watch in the next 12 months?
• If you are considering buying a watch in the next 12 months, what will be the purpose?
• What is the most important element in terms of sustainability for the watch industry?
• Have you ever bought a used product in this category?
• Criteria for buying refurbished products
• Barriers to the purchase of second-hand products
• In your lifetime, have you ever collected the following items?
• What strategy do you plan* to implement for the certified pre-owned market?
• Which channel do you prefer for second-hand purchases
• Breakdown of auction sales in "Art & collectibles"
• How actively do you manage the value of your watches on the secondary/second-hand market?
• Evolution of the Subdial50 price index
• Evolution of the average prices of 12 popular models*
• In your opinion, are the following categories affected by counterfeiting?
• Have you ever bought counterfeit watches or watch products?
• Décomposition de l'audience par âge
• Décomposition de l'audience par sexe
• Décomposition de l'audience par sexe et âge
• Décomposition de l'audience selon le niveau de revenu
• Décomposition de l'audience par niveau de formation
• Décomposition de l'audience selon la taille du ménage