What's Happening?
The market for used luxury watches has shown significant growth, marking its best half-year performance since early 2022. 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. Notable performers include Rolex's gold Daytona 116508 and Patek Philippe's Aquanaut 5167A. This growth contrasts with the challenges faced by new watch sales, which are impacted by U.S. tariffs, including a 39 percent levy on Swiss exports, and low demand in Asia. The secondhand market benefits from record gold prices, which increase the cost of new watches, and from immediate availability on secondary platforms, as opposed to the long wait times for new models.
AD
Why It's Important?
The growth in the used luxury watch market highlights a shift in consumer behavior towards more accessible and immediate purchasing options. This trend is significant for the luxury watch industry, which is facing challenges such as tariffs and decreased demand in key markets like the U.S., Japan, and Hong Kong. The preference for secondhand watches may indicate a broader trend towards 'quiet luxury,' where consumers opt for understated opulence. This shift could impact the strategies of major watchmakers like Rolex, Patek Philippe, and Audemars Piguet, who are already dealing with the effects of a stronger Swiss franc and weakened luxury demand.
What's Next?
Swiss watchmakers are likely to continue negotiating with the U.S. to address the 39 percent tariff, which poses a significant threat to their export market. The ongoing trade tensions and economic factors may lead to strategic adjustments in pricing, marketing, and distribution channels. Watchmakers might also explore expanding their presence in emerging markets or enhancing their secondhand offerings to capitalize on the growing demand for used luxury timepieces.
Beyond the Headlines
The rise in the secondhand luxury watch market could signal a long-term shift in consumer values, emphasizing sustainability and the circular economy. As consumers become more informed and discerning, luxury brands may need to adapt by offering more transparent and ethical practices in their production and sales processes. This trend could also influence other sectors within the luxury industry, prompting a reevaluation of how luxury is defined and marketed.
