What is your Opinion on watchbrands jumping in the pre-owned and vintage Market? What will be the effects on our hobby, and which Business opportunities you see for the Brands?

I saw as an exemple in the Oris Boutique in Zürich that the had a little corner where they sold serviced vintage Oris Watches, I also saw Mercedes doing that in their Museum and other Car Companies too. What do you think about this trend?
Thank you for your Input!

 

As our UK members know: https://www.somlo.com/omega-vintage-boutique/

 

But isn't it quite knew in the watch world? Also isn't there a risk to compete with current offerings by allowing people into a brand for cheaper than buying new? I get that they could be used as an gateway drug, and also a way to pour overstock into the market as pre-owned (like Richemont). But it doesn't solve the problem that a lot of Watch companies are sitting on pile of stocks, it would saturate the market even more. I think the advantages could be that for inexperienced buyers, to have the certainty that their Vintage piece is genuine and well serviced. But to me the hole move seems to have negative effects on current issues of the industry. Or I'm seeing it from the wrong perspective? Thank you

 

Many of the watches in the Somlo Vintage Omega Boutique are more expensive than the equivalent modern watch, so it is not cheaper, or a gateway. Newer pre-owned models would be cheaper than new, and perhaps a given franchise might sell both.

But in either case, the pre-owned and vintage watches are already being sold by somebody, and the brand isn't making a penny from it. This way, the brand can license a franchise to sell "officially certified" pre-owned/vintage watches and have a regular revenue stream, with little risk.

 

Thank you very much for the insights. In that case it's just companies taking in parts of the market they didn't served before and crowding out current players. If this practice of selling vintage from the bigger brands increase, will we see finally see the big brands improving their restoration process to make it more collector friendly? Or will they just continue replacing parts like they please?
And isn't there also the risk of those companies emptying the market with their buying power, making vintage pieces more expensive (for collectors)?

 

CPO on cars while worth it IMHO, is just a way to make more money on lease returns.

 

I have no concerns.

 

Mercedes has a pretty incredible in-house vintage restoration practice that’s centred in Irvine, CA and Stuttgart.

I could see a major watch brand do something similar soon.

 

Since most of the big name watch brands are now refusing to sell parts to many watch material suppliers (and thereby most watch repair people), they pretty much have control over what happens with older watches that are prospects for restoration. Knowing the appetites of many on the OMB for “factory” restored watches (ruined for originality), I doubt collectors who take a dim view of factory “restorations” will be candidates for these watches. Then there is Rolex who is sitting on millions of dollars worth of antique and vintage watch material, won’t sell vintage parts, and isn’t interested in catering to such collectors. Sigh!

 

It is an important part of the dealership model as it is where the bigger gross margins sit as very few new car buyers pay list price if they have any acumen