High-end brands such as Rolex and Patek Philippe are losing their appeal in the second-hand market, which is undoubtedly a huge problem for second-hand watchmakers and leveraged speculators. According to observations, many popular watches have been nearly 40% higher than their previous highs
Many new players who have previously entered the market through leverage have suffered huge losses as a result of this decline. Today, watch consumers are returning to rationality, and they are beginning to realize that watches are essentially an industrial good, with a greater focus on wearing attributes. However, due to over-marketing, high-end brands have branded mechanical watches as works of art, resulting in their ** far exceeding their actual value.
* Volume growth also had a negative impact on the pre-owned watch market. Not only are some watch collectors starting to sell on the second-hand market for their own financial reasons to cash out, but brands in the primary market are also increasing production.
Rolex once told **: "Scarcity is not our strategy. Last year, the company announced the establishment of three temporary production sites in Switzerland to increase watch production. At the same time, Audemars Piguet opened a new factory in Switzerland. Then-CEO Fran Ois-Henry Bennahmias told ** that the brand was increasing production by a double-digit percentage each year.