PARIS — The secondhand watch market will not be proof against the sector’s total downturn.
In response to a brand new report from Morgan Stanley and WatchCharts, costs fell 5.7 p.c year-on-year in 2024, affecting the “large three” — Rolex, Patek Philippe and Audemars Piguet — in addition to different luxurious watchmakers.
The fourth quarter of the 12 months marked the eleventh consecutive quarter of lower since Could 2022’s peak costs for secondhand watches, based on the report revealed on Tuesday.
Total, costs tumbled much less severely however on a broader base in 2024 than in 2023, with 28 out the 35 Swiss watchmakers tracked seeing decreases of their secondhand market costs.
Solely a handful of names noticed constructive performances this 12 months, together with Certina, Frédérique Fixed, Montblanc and Longines.
Manufacturers that struggled probably the most had been these priced above $10,000 in common resale value that rely closely on sports activities fashions, whereas all manufacturers above $3,000 carried out negatively, the information discovered. Entry-level watchmakers fared higher, even monitoring positively for the 12 months in a handful of circumstances.
Rolex, Patek Philippe and Audemars Piguet noticed their mixed market share shrink 2 p.c for the 12 months, stemming from the mix of diminished urge for food for high-end fashions and elevated demand for different manufacturers.
The three manufacturers had been down 5 p.c, 5.7 p.c and seven.3 p.c, respectively, whereas fewer of their fashions traded above retail.
Costs for Rolex have hit a four-year low, falling 3 p.c beneath their January 2021 stage. Its licensed pre-owned program gross sales are estimated to have greater than tripled year-on-year in 2024, reaching $300 million.
In the meantime Patek Philippe and Audemars Piguet stay up 22 p.c and 28 p.c, respectively, for a similar interval, however are at their lowest level previously three-and-a-half years.
Cartier continued to be a vivid spot for Richemont, regardless of a weaker fourth quarter. Whereas its costs shrank 2.5 p.c year-on-year, it carried out greatest out of the Swiss watchmakers within the over-$3,000 class.
The report estimated the model’s secondary market gross sales grew 18 p.c year-on-year.
In the meantime, its stablemates additionally noticed a slight uptick in secondhand gross sales, attributed to a greater worth proposition stemming from falling resale costs.
Though it outperformed within the fourth quarter, LVMH Moët Hennessy Louis Vuitton’s secondhand costs declined by 6.4 p.c in 2024 throughout its watchmakers, who all fell greater than 5 p.c year-on-year. Hublot was the worst affected, whereas Tag Heuer, Bulgari and Zenith had been according to the market.
Swatch Group was the strongest performing group in 2024, with its entry-level manufacturers posting constructive performances, whereas Swatch was severely dragged down by the MoonSwatch, the report stated.
For 2025, the report expects secondary costs will proceed to fall, because the hole between retail and secondary market costs continues to widen. It names CPO applications as a doable answer for manufacturers.
Major market gross sales are additionally anticipated to contract within the first half of the 12 months, with LVMH, Compagnie Financière Richemont and Swatch Group “probably persevering with to underperform the market.”
