making and Bucherer’s expansive retail presence across several countries, the union promises to strengthen the symbiotic relationship that has grown since 1924.  A balanced perspective According to Nathan Birch, Interbrand’s AUNZ CEO, the two brands have stated they will remain separate and operate independently.  “While they share a long history – Jörg Bucherer is the last person alive to have worked with Hand Wilsdorf, the founder of Rolex – I don’t think this acquisition is in any way about a repositioning of the Rolex positioning in the luxury space,” he told Inside Retail. While Rolex is an internationally recognised brand, Bucherer isn’t as well known outside of Europe and the US, and operates in a highly homogenised luxury and jewellery retail market.   “I think the acquisition means more for the brand positioning of the relatively lesser-known Bucherer brand than the Rolex brand,” he added. Birch thinks the ‘distribution’ factor may have been a key driver for the acquisition. He also mentioned that vertical integration would also bring greater efficiencies, reduced costs and more control along the distribution channels. “Rolex has been recently plagued by ‘authorised dealers’ supplying the in-demand watch brand through the grey market, and selling watches for an inflated cost; just try to go into a store and walk out with a Rolex, you’ll struggle,” he noted. He believes the benefit to Rolex of the acquisition may be the opening salvo against this practice, a loud wake-up call to authorised detailers to cease this behaviour that is damaging the Rolex brand.  “It’s driving customers into a dark secondary market, where they risk buying a lemon, or, worse, a fake,” he stressed. Earlier in the year, Rolex announced Bucherer was its partner in rolling out a ‘certified pre-owned’ program in the US and Europe, and Birch thinks selling authenticated, guaranteed pre-owned watches will eat into the murky grey market threat. At the moment, he feels it’s unlikely that Bucherer will become the exclusive retailer for Rolex.  “It’s far more likely, and cost effective, to cut out the retailer entirely and employ a direct-to-consumer model online, like we’ve seen automotive brands employing. If customers are willing to buy a $180,000 Tesla online, why wouldn’t they buy a $30,000 watch too?,” he said. The pre-owned marketplace A report from Boston Consulting Group revealed that the pre-owned watch sector is gaining unprecedented attention due to rising consumer interest and limited availability of premier models. Interestingly, the surge in interest isn’t driven by aesthetics, but by financial potential. These high-end timepieces are now being viewed as promising alternative investment avenues.  Top brands such as Rolex, Patek Philippe, and Audemars Piguet, along with esteemed independent brands like F.P.Journe and De Bethune, are seeing pre-owned models fetch hefty premiums. Many buyers believe that the value of these watches will only ascend over time. Between August 2018 and January 2023, second hand luxury watches from major brands like Rolex, Patek Philippe, and Audemars Piguet saw their average prices soar by 20 per cent annually.  This robust performance persisted even during pandemic-induced market slumps, dwarfing the S&P 500 index’s annual growth of eight per cent. Pre-owned watch sales reached US$22 billion in 2021, accounting for nearly one-third of the overall US$75 billion luxury watch market. Gen Z customers The allure of luxury watches’ investment returns is attracting younger consumers to the market. Platforms like Reddit are buzzing with discussions, while Instagram and TikTok serve as showcases for their latest acquisitions. Digital third-party platforms, such as WatchBox, Chrono24, and Watchfinder, have played pivotal roles in expanding the market’s reach, particularly among Gen Z and millennials. These platforms not only inform potential buyers but also foster price clarity. The study reveals that online transactions have outpaced both auction and in-store sales. It’s projected that by 2026, online platforms will dominate nearly 60 per cent of the pre-owned luxury watch market. Historically, the second-hand market was a hotspot for deals. However, in the wake of post-pandemic challenges, which have strained supply while amplifying demand, certain new watch models have become elusive in regular retail outlets.  Notably, models like the Patek Philippe Nautilus, Audemars Piguet Royal Oak, Rolex Daytona, and GMT-Master II, are now commanding prices that are up to double their original retail value.