GEO Company Launches High-end Pre-owned Watch Auction in Hong Kong, Including ROLEX

The GEO HOLDINGS Group, a Japanese company that operates multiple second-hand stores and auction houses, plans to establish a joint venture company specializing in auctioning high-end watches in Hong Kong in July. This company will collaborate with a local Hong Kong retail enterprise, aiming for an annual sales target of 6 billion yen. Given the excellent quality of second-hand goods in Japan, GEO HOLDINGS hopes to expand its international business by entering the Hong Kong market.

GEO HOLDINGS’ subsidiary OKURA HOLDINGS will partner with Hong Kong watch trade development and brand trading company PRICING DATA to co-establish the “World Watch Auction” new company, with a registered capital of 2 million Hong Kong dollars.

OKURA HK SHOP

Auction Plan and Market Advantages

The new company plans to hold an auction in Hong Kong once a month, auctioning about 500 high-end watches, including “Rolex”. The target sales amount for each auction is 500 million yen, and the minimum transaction price for a single item is 500,000 yen. Since Hong Kong is duty-free and has a refundable consumption tax, the profits are expected to be 10-20% higher than domestic sales in Japan.

The watches to be auctioned will be acquired from GEO HOLDINGS’ auction operators in Japan. GEO HOLDINGS’ 1,000 partner companies can also participate in the Hong Kong auctions, which will help Japanese companies expand into overseas markets.

Future Expansion and Overseas Business Growth

In the future, the company plans to expand the auction product categories to include branded bags and others. Specialized auctions for the watch industry are not common outside of Japan, and transactions are usually conducted in a non-bidding format. The adoption of the auction format will help increase the transaction prices and promote sales growth.

GEO’s Origins

GEO Holdings Corporation was established in 1989, initially as a simple video rental store, and has since developed into an outstanding nationwide network with more than 1,500 GEO stores. The company now operates GEO stores, providing a range of home entertainment software products, including DVDs, CDs, games, and books, through rental, resale of used items, and direct sales. In addition, GEO has many registered subsidiaries that deal with various recycled items related to daily life, such as clothing, furniture, electronics, home appliances, hobbies, and other lifestyle products; it also sells second-hand branded apparel and watches. GEO MOBILE stores also sell used mobile devices; it operates entertainment-themed theme park facilities, including game centers, pool halls, and prize games; engages in e-commerce; and provides delivery rental services, operating a total of 1,805 stores.