Pre-owned, unworn, big business: used watch dealers go big time

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For the curious passerby, or the shopper after a new, coveted timepiece, it doesn't help that many of the used-watch shops are found right next door to these high-end boutiques. Read more at The Business Times.

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There are around 50 pre-owned watch shops - including pawn shops - in Singapore, more than double the number a decade or two ago, according to estimates."It's a sizeable market that's helped tremendously by the Internet and social media," observes Su Jia Xian, founder of the highly regarded watch website SJX."And the rise of shopping online means that more young people will enter the business, having grown up digital.

Last year Richemont, the Swiss luxury group which owns watch brands such as Cartier and IWC Schaffhausen, bought UK resale watch retailer Watch-finder for, industry sources say, £250 million pounds . Observers like Mr Su see more acquisitions ahead, as watch brands seek more control of the timepieces they sell.

The market for used watches has since gone upmarket. Resale watch shops, as Mr Chng says, have become"sexier" and are run by people in their 20s, 30s or 40s. The stores, especially those on Orchard Road, are no longer patronised only by locals. At Chrono95 - an 800 square foot used-watch shop in Far East Shopping Centre - diamond-studded watches with names such as Richard Mille, Jacob & Co and Graff, are artfully displayed in well-polished showcases. The Richard Mille watches alone are valued at S$12 million, according to Angela Foo, the shop manager.

"That's where we come in," says Ms Foo. Grey watch dealers have generally made it their business to supply the hot models. They can't afford the high carrying cost of the"slow moving" timepieces. Grey watch dealers say that's the premium paid for accessibility. Everyone - including women - wants these hot timepieces, but there isn't enough supply to meet the demand. Grey dealers say they pocket only a small premium; the bigger cut goes to the suppliers who include foreign contacts, customers who trade in their watches and, increasingly, individuals who flip watches to make a quick buck."They're the flippers," Ms Foo says of the latter.

"You buy from us, we guarantee to buy it back within two years at 80 per cent of what you paid, 85 per cent if you buy another watch from us," says Nick Lim, a director of Chuan Watch, who turns 28 this year. Most offer a warranty against inauthentic or stolen goods, with a full refund."We give a one-year warranty, which also covers the watch's performance and internal damages," says Chuan Watch's Mr Lim.Of course, it's only the right thing to do.

 

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