The recent announcement that Rolex has added a certified pre-owned offering is a defining moment for the industry. This is according to Michael Zahariev, Co-Founder of Luxity, South Africa’s largest luxury reseller who says that this move signifies the value of the preowned sector and legitimises the market to the rest of the world.
“Rolex is the first luxury brand entering into the pre-owned industry under its own brand,” he explains. “This move is a no brainer for the company as its watches continue to offer the highest resell value when compared to new purchases, achieving an average of 82.65% of the current retail price. By limiting supply and access to rarer models, the brand has been able to sustain increasing demand year on year for its products which has led to boosted prices in the second-hand market where some models can trade at a premium of more than 100% compared to new.”
With this in mind Zahariev believes this is the start of a pre-owned luxury revolution that will skyrocket demand for not only watches but all items within the category. This sentiment is shared by Oliver Müller, founder of LuxeConsult, Swiss watch advisory who predicts the secondary market will triple in value within a decade and by 2033, and will be worth 79 billion euros (around $83.2 billion), outperforming the primary market.
“Following the record-level demand for pre-owned luxury in 2022, luxury brands are increasingly recognising the value of resale since it not only presents an additional revenue generation opportunity, but also increases brand desirability, especially when it comes to rarer pieces. This is the start of a new era in fashion,” concludes Zahariev.
Should you wish to set up an interview with Zahariev, he is is available for an interview to discuss:
- How Rolex’s programme will impact the pre-owned luxury watch market going forward;
- What it means for the luxury resale market as a whole; and
- His predictions for the market in the new year
