The COVID-19 pandemic focused more eyes on the luxury watch market from female, millennial and Gen Z consumers.Zorica Nastasic/Getty Images
If it feels like everyone in your orbit is talking about luxury watches — like the Bulgari Serpenti or the latest Cartier Panthère — it’s probably because they are.
“[Watches] are definitely having a moment,” says Brynn Wallner, who knows the ins and outs of luxury watch-collecting all too well.
The founder of Dimepiece, an online community that educates and celebrates women and watches, has had a front-row seat to the market’s evolution over the past five years.
Luxury watches have long had a die-hard collector fanbase, but the COVID-19 pandemic put more eyes on the market. Those with more time on their hands scrolling Instagram and TikTok took notice of celebrities such as Zendaya and Hailey Bieber rocking Cartier Panthère and Patek Philippe Nautilus’ watches, respectively.
“That’s helped showcase the way watches are actually worn outside of the bubble of the very niche collecting community,” Ms. Wallner adds.
The luxury watch market has gained traction from millennials and Gen Z consumers who are interested in buying in. Another addition to the demo is women.
“In a commodity that has traditionally been quite male-centric, watchmakers are adapting to attract the female consumer, creating collections as well as activating through eventing to attract them,” says Carolyn Wright, a senior vice-president of product at Holt Renfrew. She points to brands’ use of celebrities and fashion influencers — for example, Ryan Gosling for TAG Heuer — to appeal to the younger demographics.
While watches are having a moment online, the trick is in getting this new consumer base to make the transition to purchasing. After a surge during the pandemic, the past two years have seen brands such as Rolex, Patek Philippe and Audemars Piguet experience declines in sales.
At Watchfinder Canada, a Toronto-based luxury watch retailer, manager Joey Cichello and his team have seen the effects first hand. Mr. Cichello says his team recently took a two-week summer break at the store’s Yorkville location. When they returned, there were more than 2,000 inquiries from people trying to sell their luxury watches.
“Right now, we’re seeing a bit of a downward trend,” Mr. Cichello says. “A lot of people are selling big time.”
The reason, he says, has a lot to do with the current state of the economy, a still-tumultuous housing market, continued job insecurity and the untenable cost of living. When unexpected bills or mortgage payments arise, “usually the luxury is first to sell off,” Mr. Cichello explains.
It also means more consumers are turning to vintage watches and pursuing the second-hand market, which Mr. Wallner says has been growing in recent years.
Luxury-watch pricing varies between brands and models, with some being more exclusive than others. While watch brands typically increase their prices yearly, Mr. Cichello says retail watch prices won’t necessarily be affected by exclusivity alone, though this could drive up the prices of watches sold in the second-hand market.
As of May, watch market tracker WatchCharts found prices on the second-hand market have fallen 40 per cent from 2022, meaning it’s currently a buyers’ market.
Certain brands hold more weight and appreciate over time. An increase in value is based on several factors, such as brand quality, rarity and brand name. But the real indicator of whether a watch will appreciate has everything to do with the current market and what’s been deemed as trendy.
“The only thing really driving [appreciation] is the market and people saying, ‘This is what’s hot right now,’” Mr. Cichello says. “It’s not the brands themselves that are doing anything special to make one watch worth more than the other. The more the market is interested in it, the more the actual investment of the watch goes up.”
If appreciation is important to you, Ms. Wright suggests investing in a watch “icon,” such as a Rolex or a Patek Philippe, since it’s more likely to hold its value and be attractive in the resale market. Ms. Wallner also recommends taking time to figure out what style you like, what works for your lifestyle and trying on as many watches as possible.
In addition to reaching out to professional watch dealers, resale options such as Watchfinders Canada, Toronto’s NoahNoahNoah and The RealReal are an accessible place to start your luxury watch-collecting journey.
Ms. Wallner says buyers should not make purchasing decisions based solely on what’s currently trendy or what watch will best sell on the market. She says investors should choose what they like.
“I always tell people that it’s not an investment in the watch, it’s an investment in yourself,” she explains. “So if you’re buying your very first watch, buy something that you like and know you want to wear.”