Rolex remains the king of Swiss watches, with more than a 30 per cent share of the market in 2023, according to new research by the investment bank Morgan Stanley and consultants LuxeConsult.
“No other luxury brand can claim such a dominant position in its respective sector,” they say in a new report.
Rolex’s market share is more than next five biggest brands combined: Cartier (8 per cent), Omega (7 per cent), Patek Philippe (6 per cent) Audemars Piguet (5 per cent) and Richard Mille (3 per cent).
Rolex’s revenue for the year are estimated at $11.43bn (CHF 10.1bn). It sold an estimated 1.24m watches last year, at an average cost of $13,832 (CHF 12,218). Second-placed Cartier sold 660,00 watches at an average cost of $6,467 (CHF 5,712).
Total sales of Swiss watches last year returned to pre-Covid levels, up 7.6 per cent year-on-year to $30.23bn (CHF 26.7bn).
Royal Oak Selfwinding 34 and Royal Oak Selfwinding 37, both available in 18k white gold or 18k pink gold and both entirely set with brilliant-cut diamonds ranging from 0.5mm to 2.2mm in diameter. The 34mm versions have 2,255 brilliant-cut diamonds (approximately 6.6 carats) whereas the 37mm models include 2,123 brilliant-cut diamonds (approximately 7.2 carats), spread across the case, crown, bezel, dial, and bracelet. What’s more, the dials of all four pieces are also home to 13 baguette-cut diamond hour markers.
Snow setting is the method of taking different-sized diamonds to create an irregular, yet cohesive, pattern. Think different-shaped snowflakes all coming together to cover the ground in glorious bright white. It sounds simple in theory, but managing to blanket a surface with a mosaic of diamonds in varying sizes is no easy feat. However, when done right, it results in a dramatic display that, if I may argue, is more visually interesting than uniformly diamond-paved surfaces. To be clear, this isn’t the first time Audemars Piguet has used snow-set diamonds — the 2015 Diamond Punk and 2017 Diamond Outrage high jewelry pieces already showcased the arduous technique. However, these are the first Royal Oaks to get this dazzling treatment.
Watches of Switzerland’s group revenue soared 25% for the full fiscal year as it expanded its store network and demand for luxury timepieces rose.
The UK-based retailer achieved sales of GBP 1.54 billion ($2.02 billion) for the 52 weeks that ended April 30, the company said last week. That amount is a record for the firm and has placed it “significantly ahead” of where it expected to be when it released a long-term strategic plan in 2021, it explained.
Sales grew 10% in the UK and Europe to GBP 890 million ($1.17 billion), driven by the opening of 15 new UK showrooms, as well as its first in Germany. In the US, revenue jumped 52% to GBP 653 million ($855 million), with the company opening six mono-brand shops and a Rolex store. The US now represents 42% of total group revenue, the company noted. The rise was also the result of increased appetite for luxury watches, which continues to outpace supply. Watches of Switzerland’s client registration for timepieces is growing, as is the average selling price per piece, it said.
Profit for the period advanced 21% year on year to GBP 121.8 million ($159.5 million).
“Luxury watch sales grew 28% year on year, representing 87% of group revenue,” said Watches of Switzerland CEO Brian Duffy. “Luxury jewelry sales increased at a more modest 10% in the year, reflecting a tougher macroeconomic backdrop and focus on full-price sales. Following two years of exceptional performance, sales are significantly ahead of plan, by over GBP 200 million [$261.9 million].”
During the year, Watches of Switzerland also opened five shops in Sweden and Denmark, and a boutique in Ireland. In fiscal 2024, it will debut a flagship Rolex store on London’s Old Bond Street and a shop in Manchester, UK, as well as a joint venture with watch brand Audemars Piguet. The company expects revenue of between GBP 1.65 billion ($2.16 billion) and GBP 1.7 billion ($2.23 billion) for the full year.
Pre-owned timepieces are beating jewelry at auction and outselling hard-to-get newer models.
The pre-owned watch market is having a banner year. The five top auction houses for the category — Phillips, Sotheby’s, Christie’s, Antiquorum and Bonhams — finished 2021 with a combined total of CHF 634 million ($646 million) in watch sales, according to The Mercury Project, a study by auction-focused consulting firm Hammertrack. In the first half of 2022, the five houses sold CHF 379 million ($386 million) worth of watches — 47% more year on year than 2021 and 133% more than the first half of 2019.
This year is likely to set a new record, surpassing the $900 million mark, the study says — and that doesn’t include sales by non-auction dealers. Secondhand-timepiece vendor WatchBox, for example, posted sales of $310 million in 2021. Its tally for the first half of 2022 was $200 million, and the projected figure for the full year is $400 million.
A collector’s market The boom is partly due to organic growth from a steadily burgeoning community of collectors with no qualms about buying pre-owned watches. Over the past five years, online resale platforms for luxury timepieces have evolved from bulletin-board-style marketplaces run by largely anonymous sellers, to organized professional dealers who own, authenticate, restore and service their inventory. And the scale of that inventory has exploded: A 2021 study by McKinsey & Company valued the secondhand watch market at $18 billion in 2019, predicting a jump to $32 billion by 2025.
In fact, watches now outpace jewelry at auction: Auction sales of pre-owned jewelry rose 55% in 2021, while watch sales doubled, according to Hammertrack. In 2022’s first half, jewelry sales were up only 8% year on year against watches’ 47%.
The other main factor driving the boom in pre-owned timepieces is the shrinking number of new ones at retail. Brands are producing fewer watches, mainly offering limited editions at premium prices, and that puts many new models beyond the reach of most collectors. Hot commodities like the Rolex Daytona are obtainable only through waiting lists, which can be decades long. In contrast, a buyer could get a nice secondhand Rolex Daytona or other coveted model right now, online or at auction.
Outrageous prices The Rolex Daytona and Patek Philippe Nautilus are prime examples of how some watches have become commoditized. Patek discontinued the Nautilus Ref. 5711-1A with blue dial in 2021 — partly because it was overshadowing the rest of Patek’s collection, including the company’s elite complications, and partly because the hype was elevating prices to absurd levels, many times beyond retail. While the Daytona is still in production, it has been selling for up to five times its retail price, which makes it ripe for speculators.
That said, the Daytona and the Nautilus are exceptions, and over the past year, prices for these models have retreated from the all-time highs they reached in early spring 2022.
Some dealers welcome the correction.
“It’s been a wild ride the last few years, and I, for one, am looking forward to the watch market getting back to normal,” says Ken DeVaul, director of timepiece operations for retailer International Diamond Center (IDC) in Clearwater, Florida. “I got tired of talking about watches through the financial-commodity lens of resale value. I got into this business because I really enjoy watches, not because it outpaced the stock market.”
The era when a “few flippers” could buy a watch at list price “and make an easy $20,000 or more by selling to us dealers is pretty much over,” he continues. “In fact, all Rolex sports models have come down in price over the past year, inching back to [the manufacturer suggested retail price (MSRP)], where they typically lived in the past.”
Dealer Eric Wind of Florida-based Wind Vintage describes “the pre-owned hysteria” as “not much different than people paying crazy amounts for cryptocurrencies and non-fungible tokens (NFTs). The speculators were mainly active in the primary retail market, and they aren’t true collectors. The real collectors are in the vintage and independent markets.” His advice to consumers: “I personally would not recommend paying huge premiums over retail price for modern, currently produced watches right now. I am not bullish [about the value of goods on the secondary market].”
Steel and small brands The Daytona and Nautilus hype may have subsided, but it’s left its mark: a lingering preference for stainless steel sports watches.
“Steel sports models have been super popular for several years now,” says Leigh Zagoory, a watch specialist at Sotheby’s. “But trends are cyclical, and true collectors covet watches for different qualities. They’re looking for more rare examples of specific models, and those vintage pieces can only be sourced on the secondary market.”
The recent surge also shed some light on a hitherto more niche corner of the pre-owned market: independents and smaller brands. More collectors are discovering these watchmakers’ superior technical prowess and craftsmanship, especially compared to the hype models. As a result, interest in brands that were almost unheard of 10 years ago is soaring.
The top 10 watch brands that sold at auction in 2021 were a mix of established elite and smaller independents, according to the Mercury Project study. Patek Philippe was the clear leader, with 378 lots netting a total of CHF 338.8 million ($350.8 million). Next came Audemars Piguet, Rolex, F.P. Journe, A. Lange & Söhne, Richard Mille, Cartier, Greubel Forsey, Omega, and Vacheron Constantin.
Uptick in demand Bidders are interested in rare, top-quality watches, especially those with private-collection provenance, and they’re still willing to pay top dollar. Last year at auction, 29 lots surpassed the $1 million mark — a result that would have been rare 10 years ago. Phillips, Christie’s and Sotheby’s saw record sales in 2021. Among the auction houses, Phillips in Association with Bacs & Russo is leading the pack with a 33% market share, followed by Christie’s, Sotheby’s, Antiquorum and Bonhams.
“Over the last number of years, everything was seemingly on fire, with unprecedented demand across the board for both the primary and secondary markets,” says WatchBox CEO Justin Reis. “But we have witnessed a substantial increase in activity across the $50,000 to $100,000-plus spectrum. Consumer interest has markedly increased for high-end independent brands, with no signs of a forthcoming slowdown.”
Paul Boutros, head of watches for the Americas at Phillips, has found that “demand continues to be extremely strong for rare, best-quality collectors’ watches — especially in vintage and independents. For modern-production watches, prices achieved in our spring 2022 auction season were in line with the results we saw a year earlier.” Indeed, he adds, “those prices were more realistic than the peaks seen on the secondary market in early 2022 — though still significantly above retail in most cases.”
For dealers, the only downside of the surging secondhand market is keeping up with demand. There are rumors that retailers are training their staff in how to let customers down gently when their choice of model is not available.
“More people are interested in watches than ever before,” says Wind. “So my challenge is just continuing to engage with current and prospective clients. I get thousands of emails and messages each day, wanting to speak about watches.”
Rolex remains king We asked three dealers to name their Holy Grail watches for collectors right now, and all of them chose models by Rolex, proving that the brand with the crown on the dial still reigns supreme.
“I predict the Rolex James Cameron Deepsea will be discontinued. When this happens, it will become an instant collectible.”
Ken DeVaul Director of timepiece operations, IDC In 2012, a special Deepsea model, the Deepsea Challenge, accompanied filmmaker and explorer James Cameron on his 10,908-meter dive in the Mariana Trench. The commemorative D-Blue version of the Deepsea was introduced in 2014 to mark the event. It goes for $14,500 at retail, while models on the pre-owned market sell for up to $16,000.
“2023 will be the 60th anniversary of the Rolex Daytona, so this model is my pick as the one to watch next year.”
Paul Boutros Head of watches for the Americas, Phillips in Association With Bacs & Russo Introduced in 1963 to mark Rolex’s sponsorship of the Daytona Speedway, the Oyster Perpetual Cosmograph Daytona has become the world’s most coveted sports watch. The latest model has a black Cerachrom (ceramic) bezel, a state-of-the-art movement and a black Oysterflex rubber strap. It sells for about $46,000 at retail, and up to high six figures on the pre-owned market, depending on the model and provenance.
“Whatever Rolex comes out with will be hot, especially this year’s new left-hand GMT-Master II.”
Justin Reis CEO, WatchBox The new GMT-Master II is ideal for lefties, with the crown and the date window on the left of the case so it’s comfortable to wear on the right wrist. The green and black color combo is exclusive to this line, with the option of either a Jubilee or Oyster bracelet. It’s $10,500 at retail, or up to $40,000 on the secondary market.
New models in Harry Winston’s Ocean Biretrograde collection reaffirm the brand’s status as one of the world’s most important purveyors of diamonds. Before the Swatch Group acquired Harry Winston in 2013, it was owned by Dominion Diamond company, the joint venture partner in Canada’s first diamond mine, Ekati, which entitled the company to first pick of run-of-mine gems.
Previous to that, it was owned by the Winston family. It was founded by Harry Winston, whose nickname, “the King of Diamonds,” resulted from his having acquired and sold some of the world’s top diamonds: the 726-carat Jonker; the 94.80-carat Star of the East (which he later sold to the Duchess of Windsor); and the storied 45.52-carat fancy blue Hope Diamond.
The Swatch Group has been careful to honor the legacy of Harry Winston, setting most ladies’ models, and some men’s, with diamonds new pieces in the Ocean Biretrograde Automatic 36mm collection and the more petite Emerald collection.
The Emerald collection is named after the shape of founder Harry Winston’s favorite diamond cut, the emerald. New 18k yellow and white gold models are ideal cocktail watches, at 18mm wide. They come with either a flexible Milanese woven bracelet or a classic satin double tour strap.
And now for the finale of the 2020 lineup: the Precious Cluster, set using Mr. Winston’s signature clustering technique with over seven carats of pear and trillion-cut diamonds, and the Winston Cluster, the high jewelry version with brilliant, marquise, and pear-cut diamonds totaling over 25 carats. The Cluster is a perfect response to the line, “Talk To Me Harry Winston!” from the 1953 song “Diamonds Are A Girl’s Best Friend.”
New models in Harry Winston’s Ocean Biretrograde collection reaffirm the brand’s status as one of the world’s most important purveyors of diamonds. Before the Swatch Group acquired Harry Winston in 2013, it was owned by Dominion Diamond company, the joint venture partner in Canada’s first diamond mine, Ekati, which entitled the company to first pick of run-of-mine gems.
Previous to that, it was owned by the Winston family. It was founded by Harry Winston, whose nickname, “the King of Diamonds,” resulted from his having acquired and sold some of the world’s top diamonds: the 726-carat Jonker; the 94.80-carat Star of the East (which he later sold to the Duchess of Windsor); and the storied 45.52-carat fancy blue Hope Diamond.
The Swatch Group has been careful to honor the legacy of Harry Winston, setting most ladies’ models, and some men’s, with diamonds new pieces in the Ocean Biretrograde Automatic 36mm collection and the more petite Emerald collection.
The Emerald collection is named after the shape of founder Harry Winston’s favorite diamond cut, the emerald. New 18k yellow and white gold models are ideal cocktail watches, at 18mm wide. They come with either a flexible Milanese woven bracelet or a classic satin double tour strap.
And now for the finale of the 2020 lineup: the Precious Cluster, set using Mr. Winston’s signature clustering technique with over seven carats of pear and trillion-cut diamonds, and the Winston Cluster, the high jewelry version with brilliant, marquise, and pear-cut diamonds totaling over 25 carats. The Cluster is a perfect response to the line, “Talk To Me Harry Winston!” from the 1953 song “Diamonds Are A Girl’s Best Friend.”
Never mind the bollards, this is the Bremont ‘English Tour’ of America.
Bremont have relied on old-fashioned techniques to build their business. Firstly, they made a pretty great product. Anyone who’s held a Bremont in their hands will attest to that. They put their watch in a movie. They make watches for the military. And when it came to spreading the word in America, co-founders of Bremont, Nick and Giles English, literally hit the road on an ‘English Tour’ of the country. Starting on the 12th September this year, Nick drove a 1970 E-Type Series 2 Jaguar, restored by their late father, while Giles was at the wheel of a 1973 Porsche 911T, over 5300km from New York to San Antonio.
The ‘English Tour’ took in some of Bremont’s Authorised Dealers, watch clubs and iconic landmarks. And who was the better driver out of the two brothers? “I am not sure either one of us is any good,” says Giles, “so I would say equally bad, but very enthusiastic.” Look out bollards, look out road-hogging SUVs, look out crazy American wildlife (I’m looking at you, huge bear), here come the Bremont brothers with their two cars that have a combined age of 90 years. I emailed Giles midway through the tour and asked how it was going, and in the most pure English-toned email I’ve ever received, he replied as follows.
Why did you launch an ‘English Tour’ of America and what did it involve? Nick and I had originally been planning a flying trip in two vintage biplanes, but I badly injured myself in an old DH Gipsy Moth a few years ago, so to get it past my wife we opted for the safer vintage car option! We thought if we could combine work and play then that would work for everyone. Most of the planning was getting the cars ready and shipping them out to New York, with Dad’s old E-Type requiring more work than my old 1973 911T.
What is the English ‘style’ of road trip, if any? (Aussies take ‘travellers’, which are drinks for the road — a highly irresponsible practice, to be honest). Damn, I love Aussies. The old drinks for the road is not really a British thing; we did have lots of “wine gum sweets”, however. The English style is to be totally unprepared but soldier on through any difficulties. What did you learn about America on the tour? How watch-literate is the average American? We learnt that the US is a massive place and each State is so individual, something that you never really understand until you have travelled through it. We had lots of watch interest, which was wonderful, and huge appreciation that we made the effort to visit them. What were some behind-the-scenes highlights of the tour? Going to Graceland to see Elvis’s home on my birthday was really quite special. Also, seeing Nick getting stressed about his car breaking down the whole time, whereas the only issue I had was cleaning the flies off my windscreen! Who is the better driver, you or Nick? I am not sure either one of us is any good, so I would say equally bad, but very enthusiastic. Will there ever be an English tour of Australia? Now you have got me thinking. Nick did an Australian tour on his year off, my sister is married to a man from Brisbane, and we have some great retailers, so why not! Perhaps we will get Nick a different car for that one! Source: timeandtidewatches
Never mind the bollards, this is the Bremont ‘English Tour’ of America.
Bremont have relied on old-fashioned techniques
to build their business. Firstly, they made a pretty great product.
Anyone who’s held a Bremont in their hands will attest to that. They put
their watch in a movie. They make watches for the military. And when it
came to spreading the word in America, co-founders of Bremont, Nick and
Giles English, literally hit the road on an ‘English Tour’ of the
country. Starting on the 12th September this year, Nick drove a 1970
E-Type Series 2 Jaguar, restored by their late father, while Giles was
at the wheel of a 1973 Porsche 911T, over 5300km from New York to San
Antonio.
The ‘English Tour’ took in some of Bremont’s
Authorised Dealers, watch clubs and iconic landmarks. And who was the
better driver out of the two brothers? “I am not sure either one of us
is any good,” says Giles, “so I would say equally bad, but very
enthusiastic.” Look out bollards, look out road-hogging SUVs, look out
crazy American wildlife (I’m looking at you, huge bear), here come the
Bremont brothers with their two cars that have a combined age of 90
years. I emailed Giles midway through the tour and asked how it was
going, and in the most pure English-toned email I’ve ever received, he
replied as follows.
Why did you launch an ‘English Tour’ of America and what did it involve?
Nick and I had originally been planning a flying trip in two vintage
biplanes, but I badly injured myself in an old DH Gipsy Moth a few years
ago, so to get it past my wife we opted for the safer vintage car
option! We thought if we could combine work and play then that would
work for everyone. Most of the planning was getting the cars ready and
shipping them out to New York, with Dad’s old E-Type requiring more work
than my old 1973 911T.
What is the English ‘style’ of road trip, if any? (Aussies
take ‘travellers’, which are drinks for the road — a highly
irresponsible practice, to be honest).
Damn, I love Aussies. The old drinks for the road is not really a
British thing; we did have lots of “wine gum sweets”, however. The
English style is to be totally unprepared but soldier on through any
difficulties. What did you learn about America on the tour? How watch-literate is the average American?
We learnt that the US is a massive place and each State is so
individual, something that you never really understand until you have
travelled through it. We had lots of watch interest, which was
wonderful, and huge appreciation that we made the effort to visit them. What were some behind-the-scenes highlights of the tour?
Going to Graceland to see Elvis’s home on my birthday was really
quite special. Also, seeing Nick getting stressed about his car breaking
down the whole time, whereas the only issue I had was cleaning the
flies off my windscreen! Who is the better driver, you or Nick?
I am not sure either one of us is any good, so I would say equally bad, but very enthusiastic. Will there ever be an English tour of Australia?
Now you have got me thinking. Nick did an Australian tour on his year
off, my sister is married to a man from Brisbane, and we have some
great retailers, so why not! Perhaps we will get Nick a different car
for that one!
Source: timeandtidewatches
