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Fashion Value Chain

'The Billion-Dollar Shift: Inside the Booming Pre-Owned Luxury Watch Market'

Ms. Purva Patel, Fashion Management Scholar, National Institute of Fashion Technology The secondary luxury watch market refers to the buying and selling of pre-owned luxury watches, typically through channels other than authorized dealers. Platforms such as internet marketplaces, auction houses, and specialty pre-owned watch merchants are included in this sector. The demand for rare or discontinued models, the allure of used watches at possibly reduced costs, and the expansion of e-commerce, which facilitates communication between buyers and sellers, are some of the causes driving it. The secondary market thrives on the high demand for certain luxury watch models, especially those that are difficult to obtain at retail due to limited production or controlled distribution and this market is experiencing significant growth and transformation, with increasing interest from both consumers and brands. While the primary (new) luxury watch market in India is valued at USD 1.6 Billion in 2024, the secondary market's growth is estimated to be faster, with a CAGR of +9%. It's becoming a major force, potentially rivalling the primary market within the next decade. This growth is fuelled by factors like affordability, access to rare models, and the rise of online platforms. The pre-owned luxury watch market is witnessing strong and sustained growth, according to Second Movement. This surge is not merely supplementary to the primary market but shows potential to rival it in scale. Various reports indicate that the secondary market could match or even surpass the primary market within the next decade, driven by increasing consumer interest and a rapidly expanding ecosystem around resale, authentication, and digital commerce. One of the most notable trends driving this growth is a shift in consumer behaviour. Many buyers are now actively considering pre-owned luxury watches, with a growing number even preferring to buy directly from brand-certified channels. According to The Hour Markers, this behaviour reflects a broader change in attitudes toward ownership, sustainability, and value retention. Online platforms and digital auction houses have further accelerated this trend by making luxury resale more accessible and transparent, reaching a global audience and creating new touchpoints for both collectors and first-time buyers. The appeal of pre-owned watches also lies in their investment potential. For some buyers, especially collectors, these timepieces represent more than just style—they are seen as tangible assets. Limited editions or discontinued models are particularly attractive for their potential price appreciation over time. Moreover, affordability remains a key driver, as the pre-owned market allows access to luxury at a lower price point, making high-end brands more approachable for a wider audience. Beyond price, the secondary market offers access to rare models that are no longer available through official retail. This includes discontinued editions or watches with unique provenance, which can carry high emotional and collectible value. Additionally, immediate availability of products—unlike the often long waitlists in the primary market—adds to the convenience and appeal of purchasing pre-owned. Despite being second-hand, luxury watches retain their status appeal. Buyers still view them as markers of taste, exclusivity, and achievement. As a result, brands are increasingly recognizing the importance of this space and have started to integrate into the secondary market. Many luxury watchmakers are launching their own Certified Pre-Owned (CPO) programs, offering authenticated watches with warranties to ensure customer confidence. This strategy also helps brands gain insights into consumer preferences, informing future designs and releases. Trust and authenticity remain critical concerns, as the secondary market is not immune to counterfeit products. However, ongoing efforts in authentication and verification—especially through brand partnerships and blockchain-backed certificates—are helping to mitigate these risks. That said, the market is not without volatility. There have been price fluctuations, particularly during the pandemic, when some models saw inflated values followed by sharp corrections, indicating that investment value can vary. The secondary luxury watch market, though growing rapidly, does not pose a direct threat to established or emerging luxury brands. Instead, it presents a mix of challenges and opportunities. While it may influence brand exclusivity and pricing strategies, it also opens up new possibilities for brand positioning, customer engagement, and sustainability efforts. Challenges like Impact on Exclusivity, Potential for Grey Markets, Price Volatility, Counterfeiting are likely to arise. Impact on Exclusivity Luxury brands thrive on the perception of exclusivity, scarcity, and prestige. The emergence of a robust secondary market, while beneficial in many ways, can pose a threat to this exclusivity. When high-end timepieces become widely available through third-party resale platforms, they may begin to lose some of their elite appeal. If consumers can easily access rare or limited-edition models second-hand—sometimes even below retail prices—it may dilute the brand's carefully cultivated image. Brands must therefore strike a delicate balance between embracing the resale economy and preserving their aura of exclusivity. Potential for Grey Markets The growth of the secondary watch market also increases the risk of grey market activities. Grey markets involve the sale of authentic products through unauthorized channels, often bypassing official retail networks and brand controls. These transactions can undercut authorized dealers and create inconsistencies in pricing, warranty, and service standards. When luxury watches circulate in grey markets, it can erode the brand's control over customer experience and harm its reputation for reliability and quality assurance. Price Volatility One of the major challenges posed by the secondary market is price volatility. While some watch models gain value over time—particularly limited editions or models from sought-after brands—others can depreciate significantly. This fluctuation in resale value can impact consumer confidence, especially for buyers who view luxury watches as long-term investments. Inconsistent pricing may also affect how consumers perceive a brand's long-term value proposition, which in turn can influence future purchasing decisions in both the primary and secondary markets. Counterfeiting As the pre-owned watch market expands, so too does the risk of counterfeiting. Unscrupulous sellers may attempt to pass off fake or modified watches as authentic, preying on unsuspecting buyers. This not only undermines consumer trust but also damages brand credibility. The presence of counterfeit products in the resale market can lead to increased scepticism, even toward legitimate pre-owned goods, thereby forcing brands and marketplaces to invest heavily in authentication and certification processes to maintain consumer confidence. In response to these challenges, many luxuries watch brands are beginning to engage directly with the secondary market through certified pre-owned programs, enhanced authentication protocols, and stricter regulation of resale channels. By doing so, they aim to protect their brand equity while adapting to evolving consumer behaviours. While the industry might face challenges, there will be scope for new opportunities such as new revenue streams, enhanced brand image, market insights, reaching new customers, investment potential that will arise with the industry. New Revenue Streams The secondary luxury watch market offers a significant opportunity for brands to create new and sustainable revenue streams. By entering the pre-owned space directly—through Certified Pre-Owned (CPO) programs or brand-operated resale platforms—brands can take control of the resale process while monetizing watches that would otherwise be traded through third parties. These programs allow brands to earn revenue not just at the point of first sale, but also in resale cycles, thereby extending the commercial life of each product. Additionally, offering pre-owned watches with brand-backed authentication and warranties enhances consumer trust and deepens brand loyalty. Enhanced Brand Image Actively managing the resale ecosystem also enables brands to reinforce a positive brand image cantered on responsibility and longevity. By promoting certified pre-owned models, brands signal that their products are made to last—supporting both quality craftsmanship and sustainable consumption. This resonates strongly with environmentally and ethically conscious consumers, particularly younger buyers who are increasingly prioritizing sustainability in their purchasing decisions. By aligning with circular economy principles, luxury brands can modernize their identity and demonstrate relevance in today's values-driven market. Market Insights The secondary market provides a valuable data source that can offer insights into shifting consumer preferences, emerging trends, and fluctuating demand. By analysing resale patterns—such as which models retain value, which designs see the most demand, or which regions lead in second-hand purchases—brands can optimize product development, adjust production volumes, and refine pricing strategies. These insights can also help in crafting better marketing campaigns and making informed decisions about which styles to revive, discontinue, or evolve. Reaching New Customers Another key advantage of participating in the secondary market is the ability to reach a broader audience. Pre-owned luxury watches are often more affordable than brand-new ones, making them more accessible to aspirational buyers or first-time luxury consumers. For these customers, the secondary market offers a lower entry barrier into the world of luxury timepieces. This accessibility can help brands build relationships with new segments, potentially converting resale buyers into loyal customers who later purchase new products as their purchasing power grows. Investment Potential Beyond personal style, many consumers now view luxury watches as a form of alternative investment. Certain models, especially limited editions or iconic releases from prestigious brands, have shown consistent appreciation over time. By supporting a transparent and secure resale environment, brands can enhance this perception and attract a new class of buyer—those looking for tangible assets with both emotional and financial value. Promoting watches as long-term investments can reinforce their desirability, positioning them as not just timepieces, but legacy items with lasting worth. Together, these opportunities reflect how the secondary market—once viewed as an external threat—is now becoming a strategic extension of the luxury watch industry, offering forward-thinking brands new ways to grow, engage, and evolve. The pre-owned luxury watch market is rapidly evolving into a central force within the broader luxury industry. It is reshaping how consumers view ownership, value, and brand loyalty. As more players—both brands and platforms—commit to professionalizing and expanding the secondary watch market, its role in defining the future of luxury consumption will only grow stronger.