The challenges dealing with all pre-owned watch specialists after costs skyrocketed in 2021 earlier than collapsing in the summertime of 2022 are highlighted by experiences revealed this week by Watchfinder & Co.
The UK-based firm, owned by Richemont since 2017, is a pioneer that introduced the pre-owned watch commerce from the murky shadows into the mainstream, arguably paving the best way that ultimately led to Rolex turning into Licensed Pre-Owned program launched final 12 months.
There might be no stronger proof of the gentrification of second-hand items than the takeover by Richemont, adopted by the takeover of the sector by Rolex.
Investments poured in alongside the best way: Stars like footballer Ronaldo backed Chrono24, Grammy winner John Mayer and quarterback Tom Brady took half in a funding spherical in 2020 that helped Hodinkee purchase Crown & Caliber within the US.
However the bubble that exploded earlier than collapsing in 2022 was fueled by flippers buying and selling watches with one another at ever-increasing costs.
This is what the market seemed like at first of fiscal 2023, Watchfinder simply reported, offering vital context for the outcomes.
Gross sales fell 19.3% within the fiscal 12 months from April 2022 to March 2023, a interval throughout which costs for used watches fell inexorably, dropping virtually half of their worth.
It has been a troublesome time to personal shares, specifically the Watchfinder mannequin. The worth of Watchfinder shares fell by 23.6% within the 2023 monetary 12 months.
You will need to be aware that the 2023 monetary statements are virtually a 12 months previous and Watchfinder has been actively increasing its operations to develop past its core market of the UK into the USA and continental Europe.
In an announcement shared with WatchPro right now, the corporate admits that 2023 was a troublesome monetary 12 months as exterior elements positioned vital downward stress on costs, however circumstances and efficiency have improved.
“For the reason that begin of the brand new fiscal 12 months, we now have seen costs start to stabilize and shopper curiosity to select up once more, with the variety of clients we served rising once more,” the corporate says.
“The launch of our UK market has contributed to this acceleration, with an extra 2,500 authenticated watches now obtainable to clients, each rising our gross sales quantity and supporting our stock administration goals. “Extra broadly, the resurgence of shopper curiosity has been seen each on-line and in particular person throughout our boutique community, with Watchfinder Bicester Village a worthwhile addition since our launch in November 2022,” the assertion continued.
“Past the UK, we’re additionally seeing optimistic momentum with continued funding in our native partnerships, together with Nordstrom and Printemps, producing rising momentum,” Watchfinder concludes.
