Those looking to get their hands on a Rolex, Patek Philippe or Omega would find themselves being placed on a waiting list. Such is the current state of affairs in the luxury watch sector, where the demand far outweighs its supply capabilities. While some collectors are willing to wait out for their turn, others are adamant on getting their desired watch as soon as possible.
To satisfy this thirst for owning a “unicorn” timepiece, watch collectors are increasingly turning to the secondhand market to locate that dream model. With close to 20 years of experience, Chrono24 has been the go-to platform that specialises in the trading of luxury watches. At its core, the company places safety, security and trust as top priorities. It has more than 3,000 pre-vetted dealers in over 100 countries and a sizable 30,000 private sellers. The business takes pride in its extensive, in-house online security precautions, which were crucial in persuading the watch industry — a sector known for being famously sluggish to adopt new technologies — to embrace e-commerce.
The market for pre-owned luxury watches has always been in a “grey area” as many sellers are not officially authorised by brands to sell the watches. Buyers could be looking at paying more than the suggested retail price or even risk paying a premium price for a counterfeit model. Even with these additional costs and risks, the “get it before it’s gone” mentality pushes watch collectors to gamble for a chance of getting their prized watches.
In recent years, the luxury resale market has seen a surge in interest, starting with handbags like Birkins and Kellys. This has trickled down to luxury watches, and coupled with evolving consumer values where more are buying with the intention of extending the life cycle of a product, a marketplace like Chrono24 fits the gap perfectly.
Commenting on the current luxury resale market, Tim Stracke, Co-CEO of Chrono24 says: “Pre-owned watches are perhaps the best example of the staying power of luxury resale. Watch lovers are undeniably one of the most passionate collector groups on the planet. Now we see luxury brands playing into the chatter, teasing rumors and both discontinuations and novelties. More than ever, watches can be looked at as a financial commodity — where rumours perpetuate fluctuations in value, and skyrocketing demand immediately impacts valuation, especially in the pre-owned marketplace.”
In contrast to other similar online marketplaces, Chrono24’s “Buyer Protection” includes pre-vetted dealers and sellers, a 14-day money-back guarantee, and free escrow service on practically every watch sold, regardless of pricepoint. This is a mechanism developed to completely safeguard purchasers and make sure that transactions go without a hitch.
In the past, buying from the secondhand market was akin to gambling as one would never know of the quality of the product until it was seen physically. The chances of getting a bad deal are drastically reduced with Chrono24, for the company has a dedicated “Quality and Security” team. Pulling feedback from hundreds of thousands of buyers since the company’s inception has played a pertinent role in ensuring top-notch security and is displayed through the “Buyer Protection” icon.
Both buyers and sellers benefit from the added protection of the aforementioned Escrow Service for all of these roughly 450,000 watches. Besides that, the watch is insured for its full value. If the buyer wants extra assurance, a “Worldwide 14 Day Right of Withdrawal” can be added to inspect the watch personally or via a professional appraiser.
Today’s consumers have become savvier, value-conscious and comfortable with their liquidity as a result of the luxury resale boom. These buyers can transact with confidence knowing that many watches will grow in value and that they have a company like Chrono24 to provide reliable tools and services on their side. Prior to the pandemic, the market for luxury resale reached a value of US$24 billion and it is expected to balloon to US$51 billion by 2023. This is a powerful business segment with tremendous potential that can outpace the growth rate of e-commerce.
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