Reports released this week by Watchfinder & Co. throw starkly into focus the difficulties faced by all pre-owned watch specialists following the upswing in prices in 2021 and subsequent plunge into the summer of 2022.
Ownered by Richemont since 2017, the UK-based company was a trailblazer in bringing the world of secondhand watch trading out of the shadows and into the open. It is even possible that this helped pave the way for Rolex's 2017 launch of its Certified Pre-Owned program.
Without a doubt, Richemont's embrace of the pre-owned market and Rolex's embrace of it provide the strongest evidence of the gentrification of this industry.
Stars poured in along the way, with footballer Ronaldo supporting Chrono24, Grammy Award winner John Mayer and quarterback Tom Brady participating in a 2020 funding round that enabled Hodinkee to purchase Crown & Caliber in the US.
However, flippers exchanging watches at constantly rising prices between themselves was the driving force behind the bubble that burst before collapsing in 2022.
The market froze when it became apparent that prices were turning, with no one wanting to buy today when the watch would be less expensive tomorrow—be it a consumer, seasoned trader, or inexperienced flipper.
This snapshot of the market at the beginning of the 2023 fiscal year, as recently disclosed by Watchfinder, offers crucial background information for the findings.
During the fiscal year that ran from April 2022 to March 2023, turnover fell by 19.3%. During this time, the value of pre-owned watches fell precipitously, almost to zero.
It was difficult to own and maintain stock at this time, which is the Watchfinder model. In its fiscal year 2023, Watchfinder's stock saw a 23.6% decline in value despite a decline in sales and transaction volumes.
An important operating loss of £12 million was caused by a decrease in the volume of transactions, a decline in the average value of each transaction, and an increase in costs.
It is noteworthy that the 2023 accounts have been in place for nearly a year, and Watchfinder has been aggressively expanding its business to include the US and Continental Europe in addition to its primary UK market.
The company acknowledges that 2023 was a difficult fiscal year to manage, with outside factors significantly driving down prices, in a statement shared with WatchPro today. However, since the accounts were released, circumstances and performance have improved.
The company reports that since the beginning of the new fiscal year [in May 2023], prices have started to stabilize and there has been a rise in consumer interest, as evidenced by the increase in the number of clients it serves.
"The additional 2,500 authenticated watches that are now available to customers thanks to the launch of our UK marketplace have helped with this acceleration, increasing both our volume of sales and supporting our inventory management goals. More generally, our network of boutiques has seen a rise in customer interest both online and in person since its opening in November 2022. Watchfinder Bicester Village has been a valuable addition to this network," the statement continues.
Watchfinder says, "Looking beyond the UK we're also seeing positive momentum with continued investments in our local partnerships, including Nordstrom and Printemps, generating incremental momentum."
It appears that Google Keep is developing a tool t..
The Google Meet auto-framing feature is likely rec..