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Luxury Watch Boom Over: What's Next?
18 Jan
Summary
- Luxury watch market has cooled significantly post-pandemic.
- Secondhand watch prices dropped 33% from pandemic highs.
- Quiet luxury trends and economic factors dampen demand.
The luxury watch market is experiencing a significant downturn after an unprecedented boom during the pandemic. Analysts suggest that the "once-in-a-lifetime event" driving watch prices sky-high is unlikely to repeat, with the market predicted to see only low single-digit growth for years to come.
The sharpest decline has been in the secondhand market, where prices have dropped 33% from their post-pandemic peak. This cooling is attributed to a combination of factors, including reduced consumer spending power and the rise of "quiet luxury" fashion trends that favor understated aesthetics over ostentatious displays.
Industry insiders believe the market reached its zenith in 2022, fueled by a unique confluence of circumstances like increased leisure time and speculative trading from crypto markets. While dominant brands like Rolex may see some growth, most other high-end watchmakers are facing stagnation, with a return to the previous speculative frenzy unlikely for decades.
