Interview with CEO of British Used Watch Retailer
Amidst the soaring popularity of used luxury watches, the proliferation of counterfeit timepieces is rapidly increasing. More than half of the replicas currently in circulation are copies of the renowned Swiss luxury watch brand, Rolex. With advancements in replica manufacturing technology, distinguishing between genuine and counterfeit products has become a formidable challenge.
In an interview with Bloomberg Radio, the CEO of Watchfinder, a prominent British used watch retailer, Argen van de Waal, emphasized Rolex’s position as the most coveted luxury watch brand.
According to the Rolex Market Index, which reflects the average transaction price of the top 30 Rolex models in the used market, prices have surged by 60% compared to five years ago. The average annual growth rate over this period stands at 13.4%. While there has been a minor decline since the start of this year, revenge consumption in the luxury watch market following the COVID-19 pandemic has propelled prices upwards.
As the market expands and demand intensifies, the prevalence of counterfeit second-hand luxury watches is also on the rise.
CEO Van de Waal expressed the growing difficulty in identifying fake luxury watches. Alarming statistics reveal that 10% of the watches purchased by dealers from stolen sources last year turned out to be counterfeit. Furthermore, the development of fake watchmaking technology has made visual identification significantly harder. In the past, approximately 8 out of 10 fake watches could be spotted by eye, but now only 2 out of 10 can be discerned. Consequently, Watchfinder employees meticulously inspect used luxury watches to ascertain their genuineness before making any purchases.
To combat the issue of fake watches, Rolex introduced a second-hand certification program in December last year. Authorized dealers now verify the authenticity of used watches. As a result, certified products trade in the used market at an average price 25% higher than non-certified ones.
This problem extends beyond Rolex. According to Van de Waal, replicas of almost every major luxury brand can be found. As interest in luxury watches continues to grow, various renowned brands have fallen victim to counterfeiting.
A report by Boston Consulting Group (BCG) in April revealed that the global luxury watch market has surpassed $100 billion and is expected to reach $101 billion by 2026. The current size of the used luxury watch market is estimated at $27.3 billion.
Reporter: Jeong Hyun-jin, jhj48@asiae.co.kr
Interview with the CEO of a British used watch retailer
“80% → 20% fakes that can be identified by eye”
Amidst the popularity of used luxury watches, the production of so-called ‘fake’ watches is increasing rapidly, and more than half of the copies currently in circulation are known to be replicas of the Swiss luxury watch brand ‘Rolex’ . Recently, with the rapid development of replica manufacturing technology, it is becoming very difficult to distinguish between genuine products.
According to Bloomberg News on the 4th (local time), Argen van de Waal, CEO of Watchfinder, a British used watch retailer, said in an interview with Bloomberg Radio that “Rolex is the most sought-after luxury watch brand. “
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According to the ‘Rolex Market Index’, which shows the average transaction price of the world’s top 30 Rolex models in the used market, from the 3rd, the selling price of Rolex rose by 60% compared to 5 years ago. The average annual growth rate is 13.4% compared to five years ago. Although there has been a slight decrease since the beginning of this year, revenge consumption in the luxury watch market after Corona 19 has led to an upward trend in prices.
As the market size grows and demand increases, fake second-hand luxury watches are also on the rise.
CEO Van de Waal said it is increasingly difficult to identify fake second-hand luxury watches. In fact, he explained, 10% of the watches used by watch dealers that were stolen for purchase last year were identified as fake.
In particular, with the development of fake watchmaking technology, in the past, only about 8 out of 10 watches could be visually identified as fake, but now only 2 out of 10, he said. Accordingly, Watchfinder employees say they conduct a detailed inspection to determine whether a used luxury watch is fake or not before purchasing.
As the problem of fake watches increases, Rolex launched a second-hand certification program in December last year where authorized dealers check that used watches are genuine. As Rolex formally certifies its authenticity, certified products are reported to be traded in the used market at an average price of 25% higher than non-certified products.
This is not just a Rolex problem. “You’ll be able to see replicas of almost every major luxury brand,” says Van de Waal. This means that as interest in the luxury watch itself increases, not only Rolex but also other famous brands produce replicas one after the other.
According to Boston Consulting Group (BCG) in April, the current global luxury watch market has exceeded 100 trillion won. It expanded from $75 billion in 2021 (about 98.4 trillion won) to $79 billion last year. It is expected to grow to $101 billion by 2026. The current size of the used luxury watch market is estimated at US $27.3 billion.
Reporter Jeong Hyun-jin jhj48@asiae.co.kr
Big news that must be seen “There is nothing left even after sale” Villa and detached houses are ignored… Mask area
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