Interview with Watchfinder CEO Reveals Rising Concerns about Fake Rolex Watches
In an interview with Bloomberg Radio, Argen van de Waal, the CEO of British used watch retailer Watchfinder, shed light on the growing issue of counterfeit luxury watches flooding the market. According to van de Waal, a staggering 80% of the watches being sold as genuine are actually clever replicas that are virtually indistinguishable from the real thing. Among these fake timepieces, more than half are imitations of the iconic Swiss brand, Rolex.
The surge in counterfeit watch production can be attributed to the booming popularity of the used luxury watch market. As replica manufacturing technology advances at an unprecedented pace, distinguishing authentic timepieces from their imitation counterparts has become an increasingly daunting task. The rise in demand for luxury watches, coupled with the ever-expanding market size, has created a fertile ground for the proliferation of these deceitful replicas.
The CEO highlighted Rolex as the most sought-after luxury watch brand, a sentiment echoed by the Rolex Market Index, which tracks the average transaction prices of the top 30 Rolex models in the used market. Over the past five years, the selling prices of Rolex watches have skyrocketed, experiencing a remarkable 60% increase. The average annual growth rate stands at an impressive 13.4%. Despite a slight dip earlier this year due to the impact of the COVID-19 pandemic, revenge consumption in the luxury watch market has since surged, resulting in an upward price trend.
Van de Waal emphasized the mounting difficulty in differentiating fake luxury watches from genuine ones. Last year, a startling revelation surfaced when 10% of the watches that watch dealers had unknowingly purchased were discovered to be counterfeits. With the advancement of fake watchmaking technology, the visual identification rate of fake watches has plummeted from 8 out of 10 to a mere 2 out of 10.
To combat this issue, Rolex introduced a second-hand certification program in December 2020. This program enables authorized dealers to verify the authenticity of used watches, boosting customer confidence and subsequently driving up prices. Certified products reportedly command an average price that is 25% higher than uncertified ones in the used market.
The CEO pointed out that Rolex is not the sole target of counterfeiters. Almost every major luxury brand falls victim to replica production as the demand for luxury watches continues to surge. As a result, it has become paramount for retailers like Watchfinder to conduct thorough inspections and examinations before purchasing used luxury timepieces.
According to the Boston Consulting Group (BCG), the global luxury watch market has surpassed $100 billion. In 2021 alone, the market expanded from $75 billion and is projected to reach $101 billion by 2026. The used luxury watch market currently stands at an estimated $27.3 billion, showcasing the immense scale and economic impact of this thriving industry.
As the battle against fake watches rages on, it is crucial for consumers and retailers alike to remain vigilant and exercise caution when dealing with the purchase and sale of luxury timepieces.
Reporter: Jeong Hyun-jin | Contact: 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
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