AP will be selling Pre owned watches?

[mwasheikh]

What will this do to the grey market dealers?

[Rachdanon]

VC is doing fully serviced vintage pieces...somewhat similar.

[Marciano490]

I imagine those pieces will just continue to be sold to greys and AP will take a see no evil approach. There’s no way they can sell them over msrp preowned and there’s no way an owner would forego profits to sell back to AP. Finally, if they’re using these models to incent VIPs, they have to keep them rare and their secondary value high.

[Ilianto Wirawan]

From what I see. Its more for the brand to control the population of their watches. I believe not every old used watches they buy are releasing back to the consumer market and I think it is brilliant idea.

[HK Islandboy]

This is a fantastic development and I look forward to it rolling out to locations outside of Switzerland. Doubtless there will be a premium charged over prices for pieces at grey dealers, but the ability to get discontinued references which have been (presumably) serviced by AP and come with some level of warranty is pretty exciting.

I do wonder how they will distribute pieces across locations - meaning, if someone trades in a piece in the U.K., will it then only be resold in the U.K., or be available globally? There are plenty of issues for AP to address, but if done well this could be very powerful

[Daryl]

Originally Posted by hk islandboy

this is a fantastic development and i look forward to it rolling out to locations outside of switzerland. Doubtless there will be a premium charged over prices for pieces at grey dealers, but the ability to get discontinued references which have been (presumably) serviced by ap and come with some level of warranty is pretty exciting.

I do wonder how they will distribute pieces across locations - meaning, if someone trades in a piece in the u.k., will it then only be resold in the u.k., or be available globally? There are plenty of issues for ap to address, but if done well this could be very powerful

+1

[nick c]

That’s a great idea.

[KBM]

Wow, interesting turn of events. Curious to see how this will impact the secondary market.

[BawlaDK]

Danish brand Linde Werdelin have been doing this for about two years now - Dont know how successfull it has been, but judging by their website they have sold quite a few second hand watches...

[AK797]

Originally Posted by BawlaDK

Danish brand Linde Werdelin have been doing this for about two years now - Dont know how successfull it has been, but judging by their website they have sold quite a few second hand watches...

Don't they also send you the watch for free or a deposit so you can inspect and try it on before you pay fully?

[BawlaDK]

Originally Posted by AK797

Don't they also send you the watch for free or a deposit so you can inspect and try it on before you pay fully?

Indeed they do... Pretty innovative in that respect. I for one am VERY exited to see what their next line of watches will look like now that they have ditched their Rock/Reef computers.... They are no longer confined by a case design that HAS to accomodate these computers

[AK797]

Originally Posted by BawlaDK

Indeed they do... Pretty innovative in that respect. I for one am VERY exited to see what their next line of watches will look like now that they have ditched their Rock/Reef computers.... They are no longer confined by a case design that HAS to accomodate these computers

I have never seen one in the flesh so thought it was a good idea. They have a kind of ROO look, so they've always appealed to me, esp the Spidospeed.

[sssteel]

Originally Posted by AK797

I have never seen one in the flesh so thought it was a good idea. They have a kind of ROO look, so they've always appealed to me, esp the Spidospeed.

I do agree with you, and that’s a very nice watch/they did a good job with it!!

[wiswrist]

Looks like AP certified pre-owned is coming soon ....

FHB interviewed quickly on Nightly Business Report from 9/20.

http://nbr.com/2019/09/20/nightly-bu...ember-20-2019/

The watch part starts at 23:25

[Tomas Eriksson]

ROBERT FRANK, NIGHTLY BUSINESS REPORT CORRESPONDENT: The luxury watch industry is under pressure from slowing growth and trouble in Hong Kong, the world`s largest Swiss watch market. But one segment is booming, online sales of pre-owned or used watches. Analysts say pre-owned sales are now growing twice as fast as new watch sales and will soon top the $20 billion a year in Swiss watch exports.

So, watchmakers — well, they`re fighting back. Audemars Piguet, one of
the most elite and profitable brands, is launching a new program to buy and sell pre-owned watches in their retail stores. They will buy a watch back from a client who may be trading up. They`ll refurbish and repair it and then offer it for resale with a warranty. It`s a bit like certified pre-
owned cars because like cars, new jewelry and certain watches can fall
percent or more in value once they leave the store.

Now, Audemars is starting small, given the cost and time of restoring
watches. The company says the move is less about added profits and more
about better serving clients, cracking down on counterfeits, and managing
resale prices for watches that can cost six figures.

FRANCOIS-HENRY BENNAHMIAS, AUDEMARS PIGUET CEO: Brands only to care of their first child and never the second one. So, basically, we the whole watch companies, left the secondary, the pre-owned business to outsiders. And I think it`s about time that we are bringing these back home.

Transcript from NBR

[golfski]

I would definitely use this service for PM watches that are easy to find, probably a good way to pick up a slightly used PM watch at a great price, just like a CPO car vs. new.

However, for the hot models (SS), I would bet offers are terrible for trade-in, so the stock will be limited. However, if trading in a watch at a loss compared to market value increases your 'relationship' with the AD/Boutique, I could see stock being pretty decent - but would bet selling prices would be listed at a premium over market (given warranty and certification).

[roxobox]

Originally Posted by golfski

I would definitely use this service for PM watches that are easy to find, probably a good way to pick up a slightly used PM watch at a great price, just like a CPO car vs. new.

However, for the hot models (SS), I would bet offers are terrible for trade-in, so the stock will be limited. However, if trading in a watch at a loss compared to market value increases your 'relationship' with the AD/Boutique, I could see stock being pretty decent - but would bet selling prices would be listed at a premium over market (given warranty and certification).

Trading in a watch may be a way to "build a relationship" with a boutique and perhaps there will be other incentives such was accessing hard to get models by trading in a vintage (and sought after) model etc. A few ways AP could play this to make it worth your time but what will be interesting is to see how attractive they make it compared to say Chrono24 or selling to other resellers (or this forum even). They'll have to offer something more competitive than just dollars or value for trade in (again like accessing new hard to get models, relationship points etc.). It has to be something you can't get already on the secondary market (a fair market value of your watch).

Like Apple has done with trading in old iPhones to upgrade, AP could have a winning model if they do it right.

Then again they may make wrong assumptions, offer poor incentives and get no real buy in on the idea from the community. Time will tell.

[jag32]

This all makes sense, but how will they address all the references selling well above MSRP?

[roxobox]

Originally Posted by jag32

This all makes sense, but how will they address all the references selling well above MSRP?

Well one would hope they sell it below MSRP with some official warranty / service.

Maybe they undercut the market forcing resellers to have to adjust? They will be able to control their own "used" stock and inventory.

Also how will they do this all without undercutting their own "new" stock?

Many unanswered questions. Someone is thinking long and hard about it I'm sure.

[kijoe]

It would be great to hear from someone who has had first hand experience on the certified pre-owned program (either seller or buyer).