The state of today’s luxury market

Mr. Dufour’s rather sharp retort makes sense, even though it sounds counterintuitive. After all, a major reason why certain luxury goods are more popular than others is simply because they are not only able to retain their value both financially and as status symbols, but they are also highly sought after years after their original release. Having such a product as part of their portfolio is also partly what keeps legacy brands in business.

But as Jean-Frédéric has pointed out, there are ‘dangerous’ consequences when consumers treat luxury items as an important part of their successful investment portfolios.

Between 2020 to 2022, the luxury market was riding on a ridiculous high. Nearly every business, from auto to fashion, lifestyle and timepiece brands, was reporting unprecedented profits, while eager buyers, unable to get their hands on newer releases, turned squarely to the secondary market. This in turn caused the prices of pre-owned goods to skyrocket, and ‘smart investors’, realising there was quick profit to be made, turned the whole situation into a Ponzi affair, buying and selling on the secondary market rapidly and driving prices even further upwards.

By 2023 however, the story began to change. Economic downturns, geopolitical turmoil from warring nations in Europe and more recently, the Middle East, and political instability among other issues caused aspirational customers and the affluent to slow down on luxury spending. Luxury retail stores that had increased their stock to accommodate the increased demand are now stuck with excess merchandise, and as for consumers who had accumulated luxury goods in the hopes of making a quick profit? Well, like the businesses, they now have to deal with products they may or may not be able to sell for a profit.

The rise of superfake luxury goods

Imitation luxury goods have existed as long as there has been a demand among consumers to flaunt a lifestyle they cannot afford. And while there is no official correlation yet, it appears that superfake luxury items – imitation luxury goods that are so close to the original that it is hard to detect at first glance – began to increase in popularity at the same time as demand for luxury goods exploded.

It does not come as a surprise. Wherever there is a high demand, there are always opportunists waiting to take advantage of those who do not know better.

Have Rolex and other luxury watches now lost their investment value?

Short answer? No.

In a recently concluded sale in Hong Kong, Sotheby’s reported that it had set two new sales records in its Important Watches I category. The first was the Patek Philippe Reference 2526 – the brand’s first self-winding wristwatch made especially for renowned collector J.B. Champion – that sold at US$729,977, while the second, a Cartier ‘Paris Cloche’, No. 1/1 quadrupled estimates to sell at US$210,882.

And this is not a standalone event. Luxury timepieces continue to sell on the secondary market at a higher value than their brand-new counterparts, just not at the same frenzied pace as during the pandemic, and definitely not at the outrageously high markup prices as two years ago.

Should you take Jean-Frédéric Dufour’s advice and not treat the Rolex – and other luxury timepieces – as a luxury investment?

Yes and no.

Yes, because, unlike stocks, they are products that have been created for everyday use, not just to have and to hold until there is a high demand for them on the secondary market.

And no, because at the end of the day, true, high-quality luxury items — if they are treated right — make great alternative investment portfolios, regardless of how the brands feel about this.

The post CEO Says The Rolex is Not A Luxury Investement. The Market says Otherwise first appeared on Aspire Luxury Magazine.

The post CEO Says The Rolex is Not A Luxury Investement. The Market says Otherwise appeared first on Aspire Luxury Magazine.

Not only has it reported that counterfeits in circulation in the UK have surpassed one million, but its research has also revealed that theft of luxury watches is on the rise. As of last year, the pre-owned luxury watch brand recorded about 6,815 pieces missing, a 60% increase from the previous year.

This is not surprising. Although prices of luxury timepieces continue to fall from their pandemic highs, they are still more expensive than they were pre-pandemic, and resellers will still definitely command a higher price than current retail value should they choose to sell today. For example, the Rolex Cosmograph Daytona 116500 model is listed at around $29,000, nearly double its original price, on the luxury watch price tracker, WatchCharts. On the same site, a Patek Philippe Nautilus 5711 stainless steel model goes for $103,357 on average, a threefold increase from its retail listing of $34,890.

If you’re looking to add a luxury timepiece to your rotation, here are some useful tips to keep in mind in times like these

1. Avoid making purchases where counterfeit pieces are high in circulation.

Per Watchfinder & Co, the UK is currently one such place. But in reality, counterfeits of luxury items are on the rise everywhere as they continue to prove to be valuable assets in and out of times of economic uncertainties.

Which may make it better to

2. Avoid the secondary market.

Especially if you cannot confirm the authenticity of the reseller or access credible pre-owned luxury watch dealers.

However, getting new models of some luxury timepieces is nearly impossible, since some are limited editions restricted to loyal customers or have been discontinued. If the timepiece you’re looking to buy falls in these categories, then it is best to

3. Employ the services of a trustworthy personal shopper.

Personal shoppers are known to source for deals that are not available to the public, including hard-to-get items. Instead of relying on online/offline secondary markets that may or may not have authentic timepieces on display, a better option would be to leave the sourcing and authentication of your desired timepiece in the hands of an experienced personal shopper.

But remember, theft of luxury timepieces is on the rise, which means you may end up still losing out even if your Rolex is the real deal. To this end, you may want to

4. Get your luxury timepieces from ‘less popular’ luxury brands or indie houses.

Although the value of luxury timepieces has skyrocketed since the pandemic, not all luxury watch houses have enjoyed this hike in value. In fact, it appears as though this ‘windfall’ is restricted to only Patek Philippe, Rolex and Audemars Piguet.

Try timepieces from other luxury brands that are still valuable but without the ‘hype’ associated with the big three. However, if you already own one from any of these labels

5. Be careful of the places you wear your timepieces to.

Keeping them safe includes not taking them to areas that are known to be unsafe and environments whose security you are not sure of.

It is also a good idea to insure your timepieces, so that, in the event they ever get lost, you do not lose both the watch and the money used in getting it.

The post Here’s Why Owning a Luxury Timepiece Now is More Challenging than Ever first appeared on Aspire Luxury Magazine.

The post Here’s Why Owning a Luxury Timepiece Now is More Challenging than Ever appeared first on Aspire Luxury Magazine.

Before Patek Philippe decided to discontinue its most popular stainless steel model that had skyrocketed to fame through its ubiquitousness among a certain class of people, it was already hard to get one. Much like a Birkin, a Ref. 5711 involved long waiting lists and a special relationship with retailers. Getting this special edition, limited to only 170 pieces, is going to be harder and even more complicated than purchasing a pre-owned standard version.

Patek’s CEO Thierry Stern’s decision to reintroduce Ref. 5711 is based on the Swiss watchmaking brand’s relationship with Tiffany, spanning 170 years. Both companies were founded within two years of each other – Tiffany & Co. in 1837 and Patek Philippe in 1839. In 1851, Tiffany became Patek’s first official retail partner in the U.S. while the latter went on to produce several special limited editions for the American jeweller that are a coveted item among collectors. To date, Tiffany is the only retailer in the world to be featured on a Patek dial.

This latest special edition for the jewellery brand comes with a Tiffany blue dial and has the Tiffany & Co. stamp at 6 o’clock, paired with the Patek Philippe stamp at 12 o’clock. On the back of the sapphire-crystal case are the words “170th Anniversary; 1851-2021; Tiffany & Co. – Patek Philippe.” There is also a tiny “secret” on the back that Stern says “is quite funny”, and is left for owners to discover.

“This was my little gift to say congratulations on buying Tiffany,” explains Stern on his decision to reintroduce the Ref. 5711. “For me, it was quite clear I had to choose something unique and exceptional. This is really the last round for this watch.”

He also understands how much of a challenge such a limited edition will pose to Tiffany. “I had to warn Tiffany and I said, ‘listen, this is a fantastic gift. But it’s also a poisonous one because you will have only 170 pieces and the choice to sell it to the final client will be yours. There will be 170 people who are very happy and the rest will be unhappy.’ I hope they sell it to the right people. This is really the most important for me. When you do such a watch, it has to go to the right person.”

The Patek Philippe x Tiffany & Co Nautilus Ref. 5711 will sell for $52,635 at select Tiffany boutiques that carry Patek Philippe, in New York, Beverly Hills and San Francisco. There will also be a unique opportunity to snag one on December 11 at an auction at Philipps, with the proceeds going to The Nature Conservancy, a charity chosen by Arnault. If you hope to ever lay your hands on any of the highly-desirable 170 pieces, the time to act is now.

Source: CNBC

The post Patek Philippe Releases an Ultra-Rare Tiffany Blue Dial Edition of the Already Rare Nautilus first appeared on Aspire Luxury Magazine.

The post Patek Philippe Releases an Ultra-Rare Tiffany Blue Dial Edition of the Already Rare Nautilus appeared first on Aspire Luxury Magazine.

In the past, luxury timepieces were mostly associated with men – think of famous ads or movies where a particular model of Rolex was made popular, and the image that would most likely pop up is that of a man. These days, however, more and more women are investing in this accessory, sometimes choosing vintage models for men.

As most owners have come to realise, once you start, you can’t stop. Collecting luxury timepieces is an exciting hobby, especially when you think of the numerous opportunities tied to them. If you’re looking to get into this rather profitable venture, you may find these tips from GQ very helpful

Find your passion

AKA “why should I buy this particular timepiece?”

While there are no wrong answers to this question (and the others that will follow naturally), experts suggest trying to set some constraints for yourself. One way to do this is to choose a theme, like diving, or an era, like the 70s.

Focusing your collection around a general theme makes it easier to collect across brands while still gathering deep knowledge. It will also help to give your collection a bit of structure and help you build your passion.

Or not. If you’re not interested in themes or times, just go with whatever catches your eye.

Choose an icon

This is almost like centering your collection around a theme, but not quite.

Choosing to start your collection with an ageless luxury timepiece that has a bit of history will lay a solid foundation for other pieces you’ll be adding in future. Watches like the Rolex Submariner, the Audemars Piguet Royal Oak, the Cartier Tank, the Patek Philippe Calatrava and, the Omega Speedmaster are good places to begin. They’ve been around for many decades and are in no danger of going out of style anytime soon.

Which is a good thing because while you are guaranteed of stepping out in a piece will not make you look like you just arrived from the middle ages, you are also confident that if the need to let go of your watch ever arises, you can easily trade it for another, and at a possibly higher price than you got it.

One more tip if you’re a green collector: consider starting with modern watches. While vintage is the current buzzword among many timepiece enthusiasts, starting there is incredibly complicated. Apart from the possibility of ending up with high-quality fakes, you run the risk of finding ‘Frankenwatches,’ “which are 95% real but have aftermarket hands.”

Meaning: a vintage watch can be mostly legit, but at some point over its lifespan, someone knowing or unknowingly replaced a piece with one that would have never gone on the original watch. Imagine spending all this time to find the perfect watch only to have someone point out the watch you love is actually a haphazardly stitched-together monster.

Trade in (and up)

Just because mechanical watches are durable enough to last a lifetime on your wrist doesn’t mean you have to keep it there that long. Luxury timepieces retain their value so well that it’s possible to think of yourself as just a custodian for a piece during its own long life. This takes a lot of pressure off your first purchase – there’s no need to think of it as a massive commitment.

When swapping pieces, try going higher up the difficulty meter. Many of those starter pieces only tell the time – so you may want to own something with a bit more complications, like a Patek Philippe with a perpetual calendar or a Rolex GMT-Master with multiple hour hands. Or, consider a different material. If you are getting tired of wearing stainless steel, maybe see how you feel while rocking gold.

If you do plan on eventually trading in a watch, make sure you’re taking good care of it while it’s in your possession. Experts suggest servicing them properly every three to five years. Also, keep the box and papers if [those] came with the watch as they would help with resell. Similarly, if you took a link out when you were adjusting the watch, put it in a safe place because you might be selling it to somebody with a larger wrist.

Lastly, engravings are fine. Just keep it light as the future owners might not be interested in your poetic quotes.

Go deeper, not wider

This, again, is in line with tip no 1. As a fresh collector, you may want to have a cohesive collection that is more significant than a combination of brands. Finding an area of interest to pursue is vital to forming a coherent watch collection as this will inform the type of pieces you chase.

Once you’ve fallen in love with a certain genre, the timepieces on your wishlist will grow exponentially. If you love divers, you may find yourself longing for Zodiac’s unique and brightly coloured Sea Wolf or entranced by Panerai’s partnership with the Royal Italian Navy. Maybe you are treating Submariners like Pokemon – trying to catch ‘em all – and there is nothing more important to you than seeing the watch’s name written out in red text. Someone who started with a Breitling Navitimer might want to pursue other pilot pieces from brands like Bremont or IWC.

Then get weird

Eventually, even the most advanced collectors may run dry, or just start turning over rocks in hopes of reinvigorating their initial passion. The good news is that while names like Patek, Rolex, and Omega dominate much of the conversation around watches, there are plenty of independent makers out there that will satisfy your itch.

Going independent will also lead to zany creations, like Maximilian Büsser & Friends’ spaceship-looking timepiece. Less-renowned brands like Universal Geneve and Longines have interesting histories of their own. And even while venturing into the obscure, it’s possible to keep chasing your passion: this timepiece from Ressence that utilizes a case filled with oil to create its dial is technically the brand’s take on a diving watch.

In the end, make sure that the timepieces you chose to add to your collection are an authentic reflection of who you are and what you believe in, even if it means stepping out of these tips from time to time.

The post Looking to Start Your Luxury Timepieces Collection? Follow These Steps first appeared on Aspire Luxury Magazine.

The post Looking to Start Your Luxury Timepieces Collection? Follow These Steps appeared first on Aspire Luxury Magazine.