PARIS — The secondhand watch market is not immune to the sector’s overall downturn.
According to a new report from Morgan Stanley and WatchCharts, prices fell 5.7 percent year-on-year in 2024, affecting the “big three” — Rolex, Patek Philippe and Audemars Piguet — as well as other luxury watchmakers.
The fourth quarter of the year marked the 11th consecutive quarter of decrease since May 2022’s peak prices for secondhand watches, according to the report published on Tuesday.
Overall, prices tumbled less severely but on a broader base in 2024 than in 2023, with 28 out the 35 Swiss watchmakers tracked seeing decreases of their secondhand market prices.
Only a handful of names saw positive performances this year, including Certina, Frédérique Constant, Montblanc and Longines.
Brands that struggled the most were those priced above $10,000 in average resale price that rely heavily on sports models, while all brands above $3,000 performed negatively, the data found. Entry-level watchmakers fared better, even tracking positively for the year in a handful of cases.
Rolex, Patek Philippe and Audemars Piguet saw their combined market share shrink 2 percent for the year, stemming from the combination of reduced appetite for high-end models and increased demand for other brands.
The three brands were down 5 percent, 5.7 percent and 7.3 percent, respectively, while fewer of their models traded above retail.
Prices for Rolex have hit a four-year low, falling 3 percent below their January 2021 level. Its certified pre-owned program sales are estimated to have more than tripled year-on-year in 2024, reaching $300 million.
Meanwhile Patek Philippe and Audemars Piguet remain up 22 percent and 28 percent, respectively, for the same period, but are at their lowest point in the past three-and-a-half years.
Cartier continued to be a bright spot for Richemont, despite a weaker fourth quarter. While its prices shrank 2.5 percent year-on-year, it performed best out of the Swiss watchmakers in the over-$3,000 category.
The report estimated the brand’s secondary market sales grew 18 percent year-on-year.
Meanwhile, its stablemates also saw a slight uptick in secondhand sales, attributed to a better value proposition stemming from falling resale prices.
Although it outperformed in the fourth quarter, LVMH Moët Hennessy Louis Vuitton’s secondhand prices declined by 6.4 percent in 2024 across its watchmakers, who all fell more than 5 percent year-on-year. Hublot was the worst affected, while Tag Heuer, Bulgari and Zenith were in line with the market.
Swatch Group was the strongest performing group in 2024, with its entry-level brands posting positive performances, while Swatch was severely dragged down by the MoonSwatch, the report said.
For 2025, the report expects secondary prices will continue to fall, as the gap between retail and secondary market prices continues to widen. It names CPO programs as a possible solution for brands.
Primary market sales are also expected to contract in the first half of the year, with LVMH, Compagnie Financière Richemont and Swatch Group “likely continuing to underperform the market.”
