Bursting Bubble: The Cooling Pre-Owned Watch Market and Survival Strategies of Four Key Brands

The pre-owned watch market, which experienced explosive growth in recent years, is now facing a sharp downturn, leaving investors with a bitter taste. As speculative fervor and price inflation subside, the market is shifting towards a focus on realistic valuations. The bursting of the bubble in the high-end watch market underscores the need for careful selection and a deep understanding of brand value. This article analyzes the current state of the pre-owned watch market based on reports from Hankyung, and examines the survival strategies of four key brands poised to weather the storm.

The Bursting Bubble: Shifts in Investor Sentiment and Market Overview

The pre-owned watch market experienced rapid growth in recent years, fueled by a combination of scarcity, investment potential, and appeal as a fashion item. The pandemic further accelerated this trend, as limited outdoor activities led to increased interest in watches and subsequent price spikes. However, this overheated market was unsustainable, and a downturn has been accelerated by factors such as rising interest rates, concerns about economic recession, and a weakening of investor sentiment. According to Hankyung, many investors who purchased high-end watches are now facing losses, indicating that the market’s previous boom was excessive.

Key Drivers of Market Downturn

• Rising Interest Rates and Recession Concerns: Investors are shifting towards safe-haven assets and reducing investments in riskier assets.


• Excessive Price Increases: Many watches have lost their rational investment value due to past price surges.


• Diminished Speculative Sentiment: The decline of ‘blind investment’ is driving the market back towards value-based investing.

Survival Strategies of Four Key Brands: Value, Scarcity, and Differentiation

Not all brands are equally affected by the downturn. Hankyung has identified four key brands poised to weather the storm, analyzing their survival strategies. These brands are leveraging strong brand recognition, rare models, and differentiated marketing strategies to adapt to market changes.

Rolex: Unwavering Value

Rolex benefits from a long history, tradition, and exceptional technical expertise, earning it recognition for its unwavering value. Scarce models continue to command high prices, and Rolex’s strong brand image maintains stable demand despite the market downturn.

Patek Philippe: Scarcity and Artistry

Patek Philippe is renowned for its complex movements and beautiful designs, and rare models attract significant attention from collectors. Patek Philippe emphasizes artistic value, targeting customers who prioritize collectibility over investment potential.

Audemars Piguet: Innovation and Design

Audemars Piguet has gained popularity among younger audiences through innovative designs and technology. The Royal Oak model, in particular, maintains consistent demand in the pre-owned market thanks to its high recognition. Audemars Piguet is strengthening marketing activities aimed at younger audiences, maintaining a youthful and dynamic brand image.

Vacheron Constantin: Craftsmanship and History

Vacheron Constantin is one of the oldest watch manufacturers in the world, emphasizing craftsmanship and historical value. Vacheron Constantin is attempting to differentiate itself from competitors through a luxurious image and distinctive design.