Used Luxury Watch Market Thrives Amid Swiss Export Decline

What's Happening?

The market for used luxury watches, including brands like Rolex and Patek Philippe, has shown significant growth despite a downturn in the primary watch market. The Bloomberg Subdial Watch Index, which tracks the 50 most-traded timepieces by transaction value, reported a 5.3 percent increase in the first half of 2025, continuing its recovery into the third quarter. This growth contrasts with a 5.6 percent decline in Swiss watch exports in June, marking a year-long decrease in shipments to major markets such as the U.S., Japan, and Hong Kong. The secondhand market benefits from high gold prices and immediate availability of watches, as opposed to the delays often experienced with new models.

Why It's Important?

The thriving secondhand luxury watch market highlights a shift in consumer behavior towards more accessible and immediate purchasing options. This trend is significant for the U.S. market, which is the largest export destination for Swiss watches. The increase in tariffs, including a 39 percent levy on Swiss exports, has further complicated the landscape for new watch sales, making the secondhand market more appealing. This development could impact luxury brands' strategies, as they may need to adapt to changing consumer preferences and economic conditions.

What's Next?

Swiss watchmakers are facing challenges due to the U.S. tariffs and a stronger Swiss franc, which may lead to strategic adjustments in their export and pricing strategies. The ongoing negotiations between Switzerland and the U.S. could potentially alter the tariff situation, affecting future market dynamics. Watchmakers might also explore expanding their presence in the secondhand market to capitalize on its growth.

Beyond the Headlines

The shift towards secondhand luxury watches reflects broader trends in consumer preferences for 'quiet luxury,' where understated elegance is favored over conspicuous consumption. This could signal a long-term change in the luxury market, influencing how brands position their products and engage with consumers.