Swiss Watch Brands – Assets for a new investment class?
Updated: Nov 2, 2022
The Boston Consulting Group (BCG) stated in their expertise of October 2020*, that “the market for secondhand hard luxury items—primarily watches and jewelry—is worth about €21 billion worldwide and growing at 8% a year, faster than the luxury industry overall. Moreover, this market is still in the early stages, creating an opportunity for brands and retailers to take proactive steps in order to shape demand and stake their claim.”
In our point of view, the appealing for environment and social issues are the main drivers for the increase of the secondhand market. Sustainability and lifestyle experiences are in favor especially from the upcoming younger generations, resulting in a lasting change of consumer preferences.
Vintage watch brands, their trademarks and legacy are increasingly being seen as an investment class in their own right. In the field of horology and watch making, there is considerable value to be gained from stories, brand equity and old watch designs. It’s the rare and captivating nature of these watch brands that makes it all worth it.
A growing demand for Alternative assets
“...the market for secondhand hard luxury goods is large, growing, and dynamic—and it is here to stay in the new luxury reality.”
With an increasing inflation at the horizon, political uncertainty as well as other factors such as the current pandemic encouraged wealth managers to diversify clients’ portfolio to the class of alternative assets. Swiss vintage watch brands protected with intellectual property rights in major markets create a basis for scaling business quickly and extensively.
Limited by history, the rarity of high-quality watch brands promise an increasing value in a strong growing market for secondhand watches – and are certainly something out of the ordinary.
To end with another quote: (…) “but the market for secondhand hard luxury goods is large, growing, and dynamic—and it is here to stay in the new luxury reality."*