The market for second-hand watches - France

1.2 A global market with the wind in its sails

The market for pre-owned watches has grown considerably in recent years. More specifically, the pre-owned luxury watch segment is booming and helping to boost the market. In addition, the arrival of reconditioned connected watches has also led to renewed interest in the sector, which is diversifying and catering to an increasingly younger clientele.

Estimated at around $** billion in ****, the pre-owned luxury watch market will be worth $** billion by ****, according to BCG, representing average annual growth of *.*%. Furthermore, estimates predict sustained growth over the next few years, reaching $** billion in ****.

Luxury watch market World, **** - ****, in billions of dollars Source: ****

Another market approximation is offered by LuxeConsult, a Swiss consulting firm specializing in fine jewelry. According to the latter, in ****, sales of pre-owned luxury watches will amount to ** billion euros, compared with ** billion euros for new watches. But pre-owned watches would grow by **% that year, twice as fast as new watches. According to specialists, by ****, vintage watches will overtake new watches in sales[***].

The market is largely dominated by luxury models from the great Swiss houses, which are the most coveted and often the most expensive.

1.4 The domestic market

The following graph illustrates the evolution of the market value of the watch industry in France between **** and ****. It shows that the market is growing, rising from *.*** billion euros in **** to *.*** billion euros in ****. The French watch market has therefore still not recovered its **** level of *.*** billion euros. *.* million watches were sold in ****, compared with **.* in ****, a drop of **%.

The French watch market France, **** - ****, in millions of euros Source: ****

Let's take a look at the French luxury watch market. According to Alioze estimates, watches costing more than *,*** euros account for around *% of sales by volume, but **% of sales by value. Thus, the market size for new luxury watches in France in **** can be calculated as follows: *.** * *.** = ***.* million euros.

Assuming that the market split between new and second-hand watches is the same in France as worldwide, we can therefore obtain an approximation of the market. The two global market estimates are as follows:

BCG: $** billion for pre-owned - $** billion for new; for a total market value of $** billion. In this configuration, pre-owned represents **.*% of the market and new **.*%. In France, for example, new vehicles are worth ***.* million euros, representing **.*% of the market. The total market can therefore be estimated at ***.* * *** / **.* = ***.* million ...

2.1 Demand driven by younger generations

In France, * out of ** people regularly wear a watch on their wrist. The penetration rate of this fashion accessory is therefore among the highest. Nevertheless, the diversity of watches on offer leads to a multitude of practices concerning their use. For many people, the watch is an aesthetic accessory. It is also considered a luxury accessory, ostentatious and therefore often associated with a well-known brand. This is true of luxury watches (***) are now attracting new generations looking for greater connectivity.

While the market for new watches is strong, demand is also strong on the second-hand market. Indeed, *% of buyers are motivated by resale, while **% consider the purchase of a watch to be a long-term investment.

If you plan to buy a watch in the next ** months, what will be the purpose? World, ****, in Source: ****

Alongside the boom in connected watches, which are riding the wave of digital and new technologies, another segment has seen considerable growth: pre-owned watches. The latter respond to an increasingly pressing demand for objects that are normally financially unattainable, but are also rarer, more vintage and more respectful of the environment.

As a result, the proportion of people planning to buy a pre-owned luxury watch within the ...

2.2 Environmental concerns and declining purchasing power drive second-hand boom

The second-hand market has been booming in recent years. In fact, the reasons for turning to second-hand and reconditioned products are multiplying, leading to an increase in demand. While the main criterion remains the lower price (***), other factors are also driving people to opt for second-hand products. The opportunity to own an appliance that has proven its longevity, as well as the possibility of acting responsibly towards the environment, are now among the priorities of the French.

Criteria for buying refurbished products France, ****, in % Source: ****

This last criterion is all the more important as the watch industry is particularly polluting. Watches, especially luxury ones, require a variety of imported materials, which inevitably lead to pollution due to extraction in the countries of production and transport during the shipment of parts.

What is the most important element in terms of sustainability for the watch industry? World, ****, as % of total Source: ****

The growing interest in sustainability is driving customers (***).

Have you ever bought a second-hand product in this category? France, ****, in Source: ****

Nevertheless, while the trend is towards second-hand products, a number of obstacles still stand in the way of second-hand purchases. In more than half of all cases, the discounts are not ...

2.3 Collectors and auction houses, historical claimants

Watch collectors and auction houses in search of rare gems are two categories that fuel the demand for pre-owned watches. Indeed, watches are "classic" items in French collections, due to the variety of vintage models and the age of the discipline. In ****, they will be the eighth most collectible category, with *% of French people currently collecting them.

In the course of your life, have you ever collected the following objects? France, ****, in Source: ****

There is no typical collector profile. However, it can be noted that the over-**s form the largest category among those who have already undertaken a collection in their lifetime (***)[***].

These collectors generally turn to auction houses or surf auction sites in search of new objects to add to their collections. Auctions thus attract many French people. Auction sales will generate a record * billion euros in **** (***), putting France in fourth place in the world auction rankings.

2.4 Counterfeiting, a deterrent to second-hand purchases

Many consumers refrain from making second-hand purchases because of the risk of counterfeiting. This phenomenon is particularly marked in the luxury sector, where counterfeits are very numerous and very difficult to detect. Rolex counterfeits are among the most numerous, and this is one of the reasons why the brand has launched its own second-hand program(***). A general lack of confidence in the sector is leading to a reduction in the number of customers. In fact, **% of French people believe that the watch and clock sector is affected by counterfeiting, compared with **% for the food sector[***].

In your opinion, are the following categories concerned by counterfeiting? France, ****, in Source: ****

While counterfeit products lead to a drop in second-hand purchases due to a lack of trust, they also constitute a competing market. Indeed, **% of French people have already bought or are considering buying counterfeit watches; thus constituting competition for the second-hand market. Counterfeits are generally much cheaper, and very faithful to the original model. As a result, the price criterion can easily influence a potential consumer who is not a particular connoisseur of a house.

Have you ever bought counterfeit watches or watchmaking products? France, ****, in % Source: ****

2.6 Audience analysis

Audience breakdown by age France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

audience analysis for the market studied shows a predominance of men, with **.**% of the total. Women represent **.**% of the total audience. This overall trend indicates a clear inclination towards a predominantly male audience in the market studied.Analysis of the data shows that the audience in the market studied is mainly made up of people aged **-** (***). The **-** and **-** age groups are also well represented, with **.**% and **.**% of the audience respectively, but these proportions remain close to those of the French population. On the other hand, people aged ** and over are under-represented in the audience compared to the French population, in particular the over-**s who represent only *.**% of the audience versus **.**% of the French population.

Audience breakdown by gender France, ****, % of total audience Source : Semrush Analysis of the audience in the market studied shows a clear male predominance, with **.**% of participants, while women represent **.**%. This overall trend indicates a strong attraction of the market to the male gender, while leaving a significant share for women. Audience breakdown by gender and age France, ****, % of total audience Source : Semrush The study of the market audience reveals that, overall, men are more present than women ...

3.1 Watchmakers face competition from new players

While historic watchmakers and major luxury houses reign supreme on the new watch market, the pre-owned market is much more fragmented, involving a multitude of players. These include specialist second-hand retailers, digital and reconditioning platforms, as well as private individuals.

Specialized distributors

Several companies specialize in the sale of pre-owned and collector's watches. This is particularly true of Mostra Store, a French company offering a rigorous selection of vintage and modern collector's watches. The selection of over ** brands is listed according to product origin and heritage, then divided according to their universe. Each item is examined by an expert watchmaker before purchase to certify its authenticity and state of preservation. This ensures a high level of confidence. Mostra Store also offers a restoration service to ensure the longevity of the timepiece. To bring the occasion to the fore, Mostra Strore plays on the exclusive experience provided by rare or authentic luxury watches, conveying the emotion of a lived experience and thus symbolizing durability[***].

Watchmakers fight back

But watchmakers don't seem to be giving up on this increasingly buoyant segment of the market. In December ****, Rolex entered the pre-owned market with its"Rolex Certified Pre-Owned" program. This label guarantees the authenticity of ...

3.2 The rise of digital platforms, a lever for the second-hand market

Although watchmakers seem to have understood the importance of the second-hand market, they have been overtaken by online platforms and specialist retailers, who still account for the vast majority of sales today. Since the ****s, online sales sites have taken over the market, encouraging online purchases.

Which channel do you prefer for second-hand purchases? France, ****, in Source: ****

Today, online distribution channels account for a large majority of purchases. The most famous platform today is Chrono **, a German platform created in ****. With a catalog of over ***,*** new and used watches, and around **,*** sales per month, the company's turnover is around * billion euros. The platform brings buyers and sellers together. Other platforms, such as Chronext since ****, have specialized in selling their own stock. In ****, the latter exceeded *** million euros in sales. In ****, Watchfinder was created, offering reconditioned watches online. Since it was acquired by Richemont, the platform also offers a physical showroom in Paris[***].

However, the lack of a guarantee as to the authenticity, quality and proper functioning of a watch remains a major obstacle to online purchases. Aware of this problem, some platforms are trying to offer more guarantees to win the trust of users. One example iseBay, which now offers a ...

3.3 Luxury watch auctions

Like many other luxury goods, watches are considered a good investment in times of uncertainty. For example, watch auctions exploded during the pandemic. In ****, the Drouot auction house recorded sales of *,*** million euros in the Art & Collectibles category, up +**.*% on ****. In ****, growth slowed but maintained an interesting pace for the sector: **.*% growth for **** million euros of sales in the category.

The "jewelry & silverware" sub-category also accounts for an increasingly large share of Drouot'sArt & Collectables sales. In one year, it increased by * points, from ** to **% of sales[***].

Breakdown of "Art & Collectibles" auction sales value France, ****, in Source : Gazette Drouot *Collector's cars, comic books, books and manuscripts, numismatics, militaria...

As of May *, ****, there were **** results on Drouot for "Watches", including *** in France (***). The proportion of online auctions is growing fast. By ****, more than half of all luxury watch auctions will have taken place online, bringing with it new, often younger, customers[***].

4.1 Typology of pre-owned watches

There are different types of watches, which can be categorized as follows:

Mechanical watches : Automatic watches : Quartz watches : Radio-controlled watches : Connected watches :

The vast majority of second-hand watches are luxury watches. So, let's take a look at the different categories of luxury watches. These are very diverse, but we can draw up a non-exhaustive list as follows:

Classic watches such as the Montblanc Tradition Automatic Date; Products with horological complications, such as the Piaget Emperador Coussin; Antique watches such as the Patek "Asprey "; Military watches like the Hamilton Khaki Field Auto or pilot watches like the Hamilton Khaki Pilot Auto Day Date; Ladies' watches such as the Bvlgari Bvlgari Bvlgari; Connected watches such as the TAG Heuer Connected Modular.

You can also take a look at the best-selling models on the Chrono ** website. Among the pre-owned offerings, the most popular models are as follows:

Source: ****

4.2 The paradox of second-hand prices

Like many other products, second-hand watches have seen a sharp rise in prices since the beginning of ****, due to the energy crisis and the resulting inflationary context. The Subdial** price index is of particular interest. This index groups together the top ** used models traded on the market, representing **% of total expenditure. At the end of **** - beginning of ****, the index rose by almost ** points in just a few months. The index then falls back to the levels of June ****, or even slightly lower.

Evolution of the Subdial** price index World, **** - ****, in thousands of $ Source: ****

While the used market generally follows the same trends as the new market, it is interesting to note that, paradoxically, average used prices are sometimes much higher than new prices. Indeed, while second-hand products are often praised for their affordability, pre-owned watches seem to escape this trend. There are several reasons for this. Firstly, because the models traded in are often luxury models, from finished collections and produced in small quantities. As with all products of this kind, their value increases over time, making them rare and highly coveted collector's items.In January ****, prices on the second-hand market were around * times higher than those on the ...

4.3 The democratization of refurbished connected watches

Connected watches have been booming for several years now. They offer undeniable advantages in terms of communication, information sharing and convenience. Shortly after the democratization of this new accessory, a second market emerged: that of refurbished watches. As with smartphones, connected watches are not always affordable, so many potential consumers are turning to refurbished products. In addition to financial considerations, there are also moral issues relating to respect for the environment that are driving people to take an interest in refurbished products.

For some years now, several platforms have been offering reconditioned watches. These include Back Market, currently the most popular site for the sale of refurbished watches;Amazon, which has set up a system for the sale of refurbished watches either through third-party sellers or via Amazon customer returns; Darty, which offers refurbished products in partnership with specialist sellers; Boulanger, reBuy, Rakuten, Cdiscount and As Good as New.

Unlike pre-owned luxury watches, which are often even more expensive than new ones, reconditioned watches are subject to substantial discounts, even up to -**%.

Source: ****

5.1 Watch market regulations

Watchmaking companies are affected by numerous regulations concerning the following products:

Nickel: restrictions on items in direct and prolonged contact with the skin. Cadmium: restrictions in metal parts of articles. Lead: restrictions in accessible parts of watches. PAHs: restrictions in plastic materials (***). Chrome VI: restrictions in leather (***).

In addition, the use of * hazardous materials (***). Since ****, this regulation has aimed to secure the use of chemical substances, whether for manufacturers, importers or users. In particular, the regulation lays down communication and notification obligations for the following substances:

Substances classified as Carcinogenic, Mutagenic or Toxic forReproduction (***) class * or *, i.e. those for which the degree of certainty regarding their toxicological effects is the highest. Substances classified as Persistent, Bioaccumulative and Toxic (***). Substances classified as Very Persistent and Very Bioaccumulative (***). These substances share certain characteristics with PBT substances and pose the same type of long-term problem.

In addition, the regulations governing precious metals meet two objectives: on the one hand, to guarantee precious metals and products made from them, and on the other hand, to ensure traceability and reduce the risk of trafficking and fencing. Among the regulations concerning precious metals are the following declaratory obligations:

Declaration of existence: Any person who holds precious ...

5.2 Regulatory framework for counterfeiting

Luxury watches are particularly affected by counterfeiting and smuggling. The Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes(***) is the authority in charge of fighting these frauds, as specified in the Code de la Propriété Intellectuelle and article L. ***-**. * of the French Consumer Code.

Furthermore,article L***-* of the French Intellectual Property Code provides for :

Four years' imprisonment and a fine of ***,*** euros for any person with a view to :

Sell, supply, offer for sale or hire goods presented under a counterfeit trademark. Import, export, re-export or transship goods bearing a counterfeit trademark. Produce goods industrially under a counterfeit trademark. Produce goods industrially under a counterfeit trademark. Giving instructions or orders for the commission of the acts referred to in the first * points.

When the offences in question have been committed as part of an organized gang or via an online public communication network, or when the facts concern goods dangerous to human or animal health or safety, the penalties are increased to * years' imprisonment and a fine of ***,*** euros.

6.1 Segmentation

• Richemont Group
• Swatch Group
• Rolex
• Patek Philippe
• Audemars Piguet
• eBay
• Back Market
• Drouot L’Hotel
• Interenchères