Watches

Pre-Owned Luxury Watch Market Growing Quickly, Says McKinsey

WatchesJun 21, 2021

Pre-Owned Luxury Watch Market Growing Quickly, Says McKinsey

A new report outlines the customers most likely to buy a secondhand watch, the most popular brands, and more.

The new Rolex Oyster Perpetual Datejust 36 with a green palm motif dial on an Oystersteel bracelet ($7,050). Research firm McKinsey, with the help of data from Chrono24, published its “State of Fashion, Jewellery and Watches” report, including statistics about the pre-owned luxury watch market.
Karlsruhe, Germany—Demand for pre-owned luxury watches is on the rise, according to a recent report from McKinsey.

In its “State of Fashion, Jewellery and Watches” report, the research firm said it expects sales of secondhand fine watches to reach $30 billion by 2025, making it one of the fastest- growing segments in the luxury industry.

“As brands forge closer relationships with their customers, they will also find opportunities to double-dip in the revenue pool by engaging in pre-owned sales,” said the report, with sales driven by younger consumers as well as collectors and cost-conscious shoppers.

The online share of the secondhand market is projected to reach 30 percent, six times larger than the firsthand market, which sits at 5 percent, with both categories expected to grow proportionally in the next few years.

Direct-to-consumer watch company Chrono24 shared its data with McKinsey for the report.

In 2020, Chrono24 saw transaction volume rise 30 percent year-over-year with pre-owned watches accounting for two-thirds of sales.

The site sees about 9 million unique visitors per month.

“There’s no longer any choice for watch brands but to adapt their businesses to be amenable to D2C,” said Chrono24 co-CEO Tim Stracke in a press release about the report.

The online shopping experience expands the market to welcome new and old buyers.

“The now even wider-spread embrace of the luxury pre-owned watch market creates a major paradigm shift,” said Stracke. 

“Collectors can ‘trade up’ faster. Watch novices can enter the market more quickly. Impatient shoppers no longer have to put their lust on a near-endless waiting list due to watchmaker limited supply. And the most passionate watch market-watchers follow the ebb and flow of industry rumors, always on the lookout for an exceptional value or a grail watch.”

According to Chrono24’s data, men account for about 95 percent of requests for pre-owned watches.

Consumers are shifting away from the “more is more” behavior, said the company, opting for pre-owned luxury items instead. This is reflected in the shopping habits of younger consumers in particular.

Millennial and Gen Z shoppers, defined as ages 18-39, account for 61 percent of all pre-owned watch requests on Chrono24. 

Customers under the age of 30 are 14 percent more likely to request a pre-owned watch over a new watch when compared with customers between the ages of 50-60.

“The luxury watch marketplace suggests this is a result of a younger-skewing, changing consumer ethos that celebrates not only value, but lifespan as well,” said the company.

Younger shoppers’ openness to pre-owned luxury items “exploded” during pandemic-related lockdowns in 2020.

In the 18-34 age group, requests for pre-owned watches grew 70 percent year-over-year in 2020. In the United States, buyer requests were up 81 percent.

 Related stories will be right here … 

By region, the United States comes in ninth when ranking the number of pre-owned watch requests on Chrono24, with about 62 percent of shoppers looking for secondhand watches.

The top five spots for the 2018-2020 period were: Denmark, Italy, Sweden, the Netherlands, and the United Kingdom.

By brand, Rolex watches are the most frequently asked for overall, accounting for 37 percent of all requests sent to Chrono24. 

Of all Rolex requests, 71 percent of customers ask for pre-owned watches from the brand.

In second place is Omega, accounting for 11 percent of all requests. When customers ask for this brand, 68 percent look for secondhand watches.

Cartier saw the highest volume of pre-owned requests, with 82 percent of customers who want a Cartier watch looking for one that’s pre-owned. 

The company noted a rise in popularity of the vintage Cartier models.

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

AuctionsMar 21, 2023
Marlene Dietrich’s Van Cleef & Arpels Bracelet Going Up for Auction

Expected to earn up to $4.5 million, the “Jarretière” bracelet is the star of Christie’s “The Magnificent Jewels of Anne Eisenhower” sale.

ColumnistsMar 21, 2023
Squirrel Spotting: Customer Retention Mindset—The New CRM

With jewelry sales coming down from their pandemic highs, retailers need to do all they can to retain existing customers, Peter Smith says.

Events & AwardsMar 21, 2023
ASJRA’s May Conference Examines ‘Iconic’ Jewelry Companies

Jewelry historians, authors, and experts will explore the works of Tiffany & Co., Oscar Heyman, Verdura, and more.

Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

IndependentsMar 21, 2023
Borsheims Executive Jennifer Johnson Retires

Johnson joined the retailer in 1987, establishing its first human resources department.

Weekly QuizMar 17, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Recorded WebinarsMar 20, 2023
Watch: Lab Grown Diamonds: What's Now? What's New? What's Next?

Supplier Spotlight Presented by IGI

Events & AwardsMar 20, 2023
Gem Awards Shine Spotlight on Design, Dedication, and Family

The industry gathered to celebrate those who elevate the jewelry and watch industries.

Brought to you by
Bringing Over 130 Years of Diamond Expertise to Modern Grading

De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.

CrimeMar 20, 2023
Jewelry Crime Reached Record Level in 2022, JSA Says

At JSA’s annual luncheon, President John J. Kennedy said the organization recorded more than 2,000 cases last year.

CollectionsMar 20, 2023
A New Book on Chanel Is a High Jewelry Lover’s Dream

It highlights Gabrielle “Coco” Chanel’s lasting influence on modern design.

Recorded WebinarsMar 17, 2023
Watch: Lessons From Gems

Jewelers of America’s Amanda Gizzi explores the qualities and accomplishments that make this year’s Gem Award nominees shine.

Events & AwardsMar 17, 2023
JCK Industry Fund Announces Grant Recipients

Here’s what the nine chosen organizations plan to do with the funds.

TrendsMar 17, 2023
Piece of the Week: Anita Ko’s Award-Ready Earrings

The designer is nominated for a Gem Award for Jewelry Design.

FinancialsMar 16, 2023
Winter Weather, Declining Engagements Weigh on Signet’s Results

The jewelry giant’s full-year sales were essentially flat, brought down by fourth-quarter declines.

FinancialsMar 16, 2023
Brilliant Earth Took a Record Number of Orders in 2022

In its recent results, the company highlighted non-bridal jewelry sales and said its “inventory-light” showroom model may change.

Events & AwardsMar 16, 2023
Amanda’s Style File: Sparkling Gems

See 15 fabulous pieces from the 2023 Gem Award for Jewelry Design nominees: Anita Ko, Kirsty Stone, and Ron Anderson and David Rees.

SourcingMar 15, 2023
Amid Uncertainties, India’s Diamond Industry Continues to Adjust

The mood among diamantaires is fairly optimistic despite the challenges brought about by sanctions and a cloudy economic outlook.

Lab-GrownMar 15, 2023
India’s Lab-Grown Diamond Industry Is Growing Up

The mood is bullish as more companies get into the business despite the dramatic drop in lab-grown diamond prices.

SourcingMar 15, 2023
Q&A: GJEPC Chairman Vipul Shah

Shah talks with National Jeweler about diamond demand, lab-grown, and why it’s difficult to make predictions about the U.S. market.

Policies & IssuesMar 15, 2023
When Diamonds Replenish the Earth

Hari Krishna Exports and the Dholakia Foundation’s “Mission 100 Sarovar” aims to create 100 lakes to help revive an area of Gujarat.

TechnologyMar 15, 2023
Sarine’s New Website Schools Consumers on Traceability

The educational resource will highlight the positive impact diamonds can make on their journey from mine to market.

SourcingMar 15, 2023
Canada’s Ekati Diamond Mine to Get a New Owner

Australian mining company Burgundy Diamond Mines announced plans to buy the mine in a deal valued at $136 million.

AuctionsMar 15, 2023
Antique Rings Discovered by Retirees Perform Well at Auction

A 17th-century gold seal ring and an 18th-century memento mori ring met or exceeded estimates at a recent Noonans auction.

Events & AwardsMar 15, 2023
JSA Announces Award Recipients

They will be recognized at the organization’s annual luncheon this weekend in New York City.

ColumnistsMar 14, 2023
On Data: How Did Independent Jewelers Do in January and February?

Sherry Smith breaks down the results so far this year, including which categories are the sales standouts and which are struggling.

MajorsMar 14, 2023
Dutch Historian Discovers Medieval Jewels

The 1,000-year-old find is now on display in the Dutch National Museum of Antiquities.

Events & AwardsMar 14, 2023
GemGenève Is Gearing Up for Its Biggest Show Yet

More than 200 exhibitors are scheduled for the May 11-14 event.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy