Time flies for posh watches

Geneva – Swiss luxury watchmaker Audemars Piguet said it would launch a second-hand business this year, becoming the first big brand to announce plans to tap into a fast-growing market for pre-owned premium watches.

The company has carried out a test run in one Geneva store and would launch the business more widely at its outlets in Switzerland this year. If this was successful, it said it would roll out the operation in the US and Japan.

“Second-hand is the next big thing in the watch industry,” chief executive Francois-Henry Bennahmias said at the SIHH watch fair in Geneva this week.

Luxury watchmakers have hitherto eschewed the second-hand trade, ceding the ground to third-party dealers. But some are now looking to change tack, driven by an industry-wide sales slowdown, combined with a second-hand market that is expanding rapidly, fuelled by online platforms like Chrono24 and The RealReal.

Bennahmias, whose company is known for its octagonal Royal Oak timepieces that sell for 40 000 Swiss francs (R509 159) on average, said: “Anybody but the brands is selling second-hand.. It’s an aberration, commercially speaking.”

Several smaller brands, including H Moser & Cie and MB&F, have signalled interest in the second-hand trade. MB&F, which plans to launch second-hand sales via its website this year, expected to give a 20%-30% discount on second-hand watches.

Bigger brands Rolex, Patek Philippe, Swatch Group, Richemont and Breitling all declined to comment when asked whether they planned to enter the second-hand market, while LVMH’s watch division was not immediately available.

Audemars Piguet said it would launch its second-hand business in several of its 26 Swiss outlets.

Experts say the second-hand luxury watches business, mostly done via online platforms or specialised retailers, is growing rapidly as a new generation of customers that values variety more than permanent ownership enters the luxury world.

The US is the top market for pre-owned watches, followed by Britain and Japan, said US retailer Danny Govberg, who sells new watches for Rolex and other brands, but also second-hand timepieces. His company’s second-hand sales grew 37%40% year-on-year over the past five years.