In a surprising turn of events, Rolex prices have experienced a drop as cheaper rivals outperform the luxury watch brand. According to the Bloomberg Subdial Watch Index, prices for pre-owned Rolex watches fell by 2.2 percent in September, while entry-level models from brands like Cartier and Omega fared comparatively better. This decline in Rolex prices suggests that collectors and enthusiasts are becoming more cautious after a surge in prices in 2021 and 2022. On the other hand, lower-priced, entry-level timepieces have been outperforming the market, indicating a shift in consumer preferences. Despite this dip, the majority of watches from Rolex and other top Swiss brands still fetch prices on the secondary market above their listed retail price. It remains to be seen how this shift in market dynamics will impact the luxury watch industry.
Pre-owned Rolex Prices Decline
According to the Bloomberg Subdial Watch Index, prices for pre-owned Rolex watches experienced a 2.2 percent decline on the secondary market in September. This decline comes after a surge in prices in 2021 and into 2022. However, entry-level models from brands like Cartier and Omega performed better in September, with an index of 100 entry-level watches falling by only 0.8 percent over the same period.
Cheaper Rivals Outperform
Collectors and enthusiasts are showing some hesitation when it comes to buying the most-hyped models from top Swiss brands. This is evident by the fact that an index of 100 entry-level watches fell by 0.8 percent in September, while the index for Rolex timepieces declined by 2.2 percent. However, brands like Cartier and Omega were among the best-performing brands in terms of price changes. On the other hand, Tudor, which is Rolex’s sister brand, saw a decline in prices.
Lower-Priced Timepieces Outperform
In the past six months, lower-priced, entry-level timepieces have actually outperformed the overall market, as well as the Rolex and Patek Philippe indexes. While the Bloomberg Subdial Watch Index, which includes a group of the 50 most traded watches by value from Rolex, Patek Philippe, and Audemars Piguet, declined by 5 percent in six months, the Entry-Level 100 index fell by only 0.7 percent in the same period. Additionally, the Cartier index gained 2 percent in six months. However, an exception to this trend is Tudor’s entry-level priced watches, which saw a decline of 4.8 percent in six months.
Retail Prices vs. Secondary Market Prices
It is worth noting that most watches from Rolex, Patek Philippe, and Audemars Piguet sell above their retail price on the secondary market. However, when it comes to entry-level priced models, they tend to trade below their retail price on the secondary market. This may be due to the fact that collectors and enthusiasts are more willing to invest in higher-end, luxury timepieces.
Yearly Price Changes
Looking at the yearly price changes, the Bloomberg Subdial Watch Index has declined by 12 percent in a year, while the Entry Level 100 index has actually gained 1.2 percent in the same period. These numbers suggest that entry-level priced watches have been more resilient in the face of market fluctuations compared to higher-end models.
Rolex’s Acquisition of Bucherer
Rolex SA, the biggest Swiss watch brand, is making a significant move in the retail space by acquiring luxury retailer Bucherer AG. This acquisition will give Rolex a major presence in consumer sales for the first time. It will be interesting to see how this acquisition shapes the brand’s strategy and distribution channels moving forward.
Other Luxury News
The luxury sector, both in Europe and beyond, is experiencing rapid change. Traditional luxury brands are having to adapt to shifting consumer behaviors and expectations. In light of this, executives in the industry should consider rethinking the queuing experience outside luxury stores to enhance the overall customer experience. Additionally, LVMH, one of the leading luxury conglomerates, has seen a slowdown in sales growth as global luxury demand cools.
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LVMH Sales Growth
Organic revenue at LVMH’s fashion and leather goods unit rose 9 percent, which is slightly below analyst expectations. This indicates a slight slowdown in sales growth for the French luxury group. It will be important to monitor how LVMH adapts to the evolving luxury market and seeks to maintain its position as a leader in the industry.
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Overall, the pre-owned Rolex market has seen a decline in prices, while entry-level models from brands like Cartier and Omega have performed relatively well. The luxury sector as a whole is undergoing significant changes, and brands are having to adapt to shifting consumer behaviors and demands. The acquisition of Bucherer by Rolex indicates a strategic move to expand consumer sales. Meanwhile, LVMH is experiencing a slight slowdown in sales growth, highlighting the need for adaptation in a cooling luxury market. Collectors and enthusiasts are showing some hesitation when it comes to highly hyped models, and lower-priced timepieces have outperformed the market in recent months. It will be interesting to see how these trends continue to shape the luxury industry moving forward.
