In the world luxury market, Rolex is undoubtedly a very famous company, Rolex watches are well-known at home and abroad, but just recently Rolex second-hand watches have seen a large-scale dive in the market, why high-end watches do not retain their value, what should we think about this matter?
1. Rolex second-hand market diving?
According to a report by Drive House, high-end brands such as Rolex are in the second-hand market"Diving"。A watchmaker said that he sold the Audemars Piguet Royal Oak Series 26585 for 3.85 million yuan in 2022 and 2.35 million yuan in 2023, losing 1.5 million yuan. Industry insiders pointed out that with the iteration of consumer groups, the trend of sports watches replacing formal watches has impacted the ** of some formal watches.
At the same time, consumers are returning to rationality, looking at the global luxury market, high-end watch consumption in recent years has shown some rational trends, which is mainly due to the change of consumer consumption behavior, some consumers pay more attention to practicality, rather than just the pursuit of brand and **.
In addition, the watch itself is an industrial product, and its wearing attributes are the essence of the watch, but due to excessive marketing, high-end brands will advertise mechanical watches as works of art, and its ** is far more than itself. The combination of various factors has made high-end brands such as Rolex in the second-hand market"Fall out of favor"。
According to a previous report by Sino-Singapore Jingwei, the ** of used Rolex and Patek Philippe watches in the secondary market fell to a two-year low, due to the increase in ** and the continuous decline in market demand for expensive watches. Kunpeng Project
2. Why don't high-end watches maintain their value?
In recent years, with the volatility of the global economy and the change of consumer preferences, the high-end luxury market has encountered unprecedented challenges. As a leader in luxury goods, Rolex has always been a symbol of status and status, and its watches are highly sought after not only in the new market, but also in the second-hand market. However, there has been an obvious phenomenon in the second-hand market of Rolex recently, how should we analyze and look at this matter?
First, irrational exuberance in the face of market volatility. In the past few years, due to the complex and volatile global economic situation, monetary easing, asset allocation demand and social consumption psychology and other factors are intertwined, resulting in an unprecedented boom in the luxury market, especially the high-end watch industry. Investors and consumers are turning to brands such as Rolex as an investment that can preserve or even increase in value. The scarcity marketing strategy coupled with the hype of social media on individual popular styles has further exacerbated the rush to buy in the market.
Second, high-end luxury is actually in the process of returning. Although luxury goods may be affected by supply and demand in the short term, they are not intrinsically stable and liquid in value like money or money. The value of luxury goods is largely determined by changes in consumer preferences, the maintenance of the brand's market position, and the impact of the overall economic environment. When demand suddenly wanes, especially in times of economic downturn or financial crisis, luxury consumption is often the first to be hit. At this time, the demand for the second-hand market has shrunk sharply, and the once high second-hand luxury goods** are naturally difficult to maintain a high level.
Third, the pragmatist trend is also influencing Rolex. In addition to economic factors, changes in consumer preferences are also an important reason for the decrease in demand for Rolex. With the development of society, people's consumption concept gradually tends to be pragmatic. More and more consumers are looking for cost-effective, practical products, rather than simply brands and luxury. Under the influence of this consumption concept, even high-end brands such as Rolex cannot avoid the fate of reduced demand. Although Rolex watches remain of a very high standard in terms of design, quality and craftsmanship, they are no longer as attractive as they once were in the current market environment.
Fourth, investment risks are always worth paying attention to. Investment always comes with risk, and the plunge in the Rolex second-hand market is a striking example of this. In the past, many consumers and investors saw Rolex as a stable investment channel, believing that its value would grow over time. However, the reality is that the value of any investment is affected by market supply and demand. The Rolex second-hand market is a reminder to investors that not everything is worth investing in, especially those that are expensive and less liquid. The volatility and unavoidability of the market means that even the most popular brands and products can face a significant drop in value.
Therefore, this case is yet another reminder that there are risks involved in any investment, even in the high-end luxury market, which is considered to be relatively valuable. Investors should make prudent judgments based on the actual market situation, avoid blindly following the trend, and ensure that investment decisions are based on rational analysis and a full understanding of market dynamics.