Knowledge & History

Rolex’s ‘Certified Pre-Owned Watch’ program.

explorer
05
Aug

Rolex Enters the Vast Secondary Market for Watches

With the expansion of the luxury goods market, the demand for second-hand watches has gradually increased. Consumers are becoming more interested in second-hand products from high-end brands, especially Rolex, which has a high value retention. However, the second-hand market also faces many challenges, including rampant counterfeits and issues with unclear provenance, causing consumers to feel uneasy when making purchases. In response, Rolex launched the “Certified Pre-Owned Program” in December 2022, allowing authorized dealers (AD) to sell Rolex-certified pre-owned watches, along with a global two-year warranty, which will enhance consumer confidence in purchasing second-hand Rolex watches.

Contents of the Certified Pre-Owned Program


The core of this program is official certification. The pre-owned watches sold by authorized dealers must have at least three years of legitimate sales records and be verified by Rolex as genuine. All Rolex-certified second-hand watches will come with an official certification stamp in cream and green, along with a warranty card. They will be inspected and restored by a professional team to ensure the quality and value of each watch. This not only provides assurance to consumers but also gives new life to second-hand watches.

Pricing in the Second-Hand Market


This program aims to enhance consumer confidence in pre-owned Rolex watches, ensuring that what they purchase is genuine. Initially, the program has been implemented at Bucherer in Switzerland, Austria, Germany, France, Denmark, and the UK, and it will expand to the US in 2023.

  • According to data from WatchCharts, certified Rolex watches in the North American market have prices that are 37% higher for the Air-King series, and 36% higher for the Milgauss and Explorer series.
  • In the European market, certified Rolex prices are on average 27% higher, with the Datejust series even priced 81% higher than typical second-hand offerings.

This data shows that there is a huge demand for “certified” watches, and the market has responded enthusiastically to Rolex’s certification program.

Acquisition of Pre-Owned Watch Leader Bucherer


Since its establishment in 1888, Bucherer has been a chain of watch and jewelry businesses, collaborating with Rolex over a century ago. In addition to representing multiple brands, the founders’ sons learned watchmaking and jewelry craftsmanship personally, combining the two to create their own luxury watch brand. It is also the company with the most retail locations globally and expanded its market influence by acquiring the largest watch retailer in the US, Tourneau.
 
However, Bucherer faces a significant challenge: “Swiss companies must be operated by Swiss people.” In the absence of heirs, Rolex used this as a reason for the acquisition.
 
From the perspective of watch manufacturers, there are certain popular models in the market while others serve merely as complements. This has led to a system of pairing watches, increasing consumer costs, and many watches flowing into the secondary market before they are fully appreciated. Under these industry rules, the profits obtained by dealers often limit the earnings of brand owners. Additionally, PATEK PHILIPPE has recently begun to reclaim its distribution rights and shift towards direct management.
 
These phenomena raise questions about whether Rolex will follow PP’s lead and gradually implement direct management through Bucherer. Overall, Rolex’s formal entry into the sales channel not only gains operational expertise but also collects data on Bucherer’s other represented brands in both primary and secondary markets, gradually enhancing its control over the market.
 
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