The luxury watch market has collapsed—here’s how you can profit.

Why the luxury watch market collapsed—and how to take advantage of it

In recent years, the luxury watch market experienced a remarkable surge, driven by a combination of high demand, economic shifts, and cultural trends. However, this seemingly unstoppable growth eventually came to a halt, leading to what many now refer to as the collapse of the luxury watch market. As prices have dropped, savvy buyers are presented with an opportunity to capitalise on significant discounts for some of the world’s most coveted timepieces.

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Rolex Submariner Automatic Chronometer Blue Dial Men’s Watch (Pre-owned)

US$13,795.00

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Here we will examine the factors that contributed to both the rise and fall of the luxury watch market and explain how you can take advantage of the current downturn—especially through online platforms like Jomashop.com, which offers discounts of up to 75% on new and pre-owned luxury watches.

The boom: A perfect storm of factors

The luxury watch market did not suddenly crash out of nowhere. Instead, it was preceded by several years of rapid growth driven by a range of social, economic, and psychological factors.

Pre-pandemic growth

Even before the COVID-19 pandemic, luxury watch prices were rising steadily. The Patek Philippe, Rolex Daytona, and Audemars Piguet Royal Oak were among the so-called “hype” watches that began trading for several times their retail price on the secondary market. This surge was largely due to supply-demand imbalances. Despite being mass-produced, these watches were marketed as rare, feeding into a perception that owning one was akin to owning an investment asset.

Audemars Piguet Royal Oak “50th Anniversary” Automatic Blue Dial Men’s Watch

US$55,500.00

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The pandemic spike

When the pandemic hit, lockdowns caused a dramatic shift in consumer behaviour. Many people, especially in wealthy Western economies, found themselves with extra disposable income due to the inability to travel or spend on luxury experiences. Additionally, stimulus packages and stock market gains created a wealth effect that funnelled more money into the luxury goods sector, particularly watches.

Demand skyrocketed while supply chains were disrupted, leading to shortages. Swiss watch production fell by 33% in 2020, further driving up prices. By mid-2021, prices for pre-owned luxury watches were at unprecedented levels.

Montblanc Starwalker Blackcosmos Resin Fountain Pen (F)

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The crash: Why the luxury watch market fell

While the boom lasted for several years, the bubble eventually burst. The luxury watch market, much like any speculative bubble, was not immune to broader economic forces.

Interest rates and inflation

One of the primary triggers for the collapse was the global increase in interest rates. In March 2022, the US Federal Reserve began hiking interest rates in response to inflation, which had an immediate effect on consumer spending. With the cost of living rising due to inflated prices on essentials like food and fuel, fewer people had the disposable income to spend on luxury items like watches.

Additionally, watch dealers—many of whom borrow money to purchase inventory—found it more expensive to hold stock as borrowing costs increased. As a result, they were forced to discount watches to move inventory, driving prices down.

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Christian Dior Men’s Sauvage Elixir Spray 3.4 oz Fragrances

US$229.50

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Decline in Chinese demand

China, which had been a major driver of demand for luxury watches, also played a role in the market’s decline. Chinese buyers once accounted for nearly a third of all luxury watch purchases. However, prolonged COVID restrictions, a property market slump, and anti-corruption crackdowns significantly dampened demand from the region. The wealthy in China became less willing to flaunt their wealth publicly, fearing the political and social consequences.

Saturation of the market

As watch brands increased production in response to high demand, they eventually created an oversupply. Rolex, for example, announced new production facilities to meet growing demand, but by the time these measures were in place, the market had cooled. The perception that luxury watches were rare and valuable diminished as more and more watches flooded the market.

Omega Speedmaster Racing Automatic Chronograph Men’s Watch

US$$3,330.00

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Flippers exiting the market

A significant portion of the market’s growth had been fuelled by flippers—individuals who would buy watches at retail and resell them at a premium. However, as secondary market prices fell, flipping became less profitable. With flippers exiting the market, waiting lists for popular models disappeared, and prices continued to fall.

The opportunity: Why now is the time to buy

While the collapse of the luxury watch market has spelled trouble for speculators and dealers, it represents a golden opportunity for watch enthusiasts and collectors. Prices on both new and pre-owned watches have dropped significantly, with many models now selling below retail for the first time in years. Even rare models like the Rolex Submariner, which once traded for a hefty premium, are now available at much more reasonable prices.

Tudor Black Bay Fifty Eight Automatic Chronometer Blue Dial Men’s Watch

US$3,285.00

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How to take advantage: Shop smart with Jomashop

For those looking to enter the luxury watch market or expand their collection, Jomashop.com is one of the best platforms to do so. Jomashop offers a wide range of new and pre-owned luxury watches at discounts of up to 75%, making it a prime destination for bargain hunters. Whether you’re eyeing a timeless Rolex, a sleek Omega, or an elegant Patek Philippe, now is the time to make your move.

Why Jomashop?

Wide selection: Jomashop carries a vast catalogue of luxury watches, ensuring that you have plenty of options from which to choose.

Significant discounts: With prices up to 75% off, you can find high-end timepieces at a fraction of their original cost.

New and pre-owned: Whether you prefer a brand-new watch or a gently used one, Jomashop offers both options, allowing you to find the perfect watch at the right price.

Grand Seiko Elegance “25th Anniversary” Automatic Blue Dial Unisex Watch

US$4,480.00

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A buyer’s market

The collapse of the luxury watch market may have caught many by surprise, but it’s important to remember that markets are cyclical. For those with a passion for fine timepieces, this downturn offers an unprecedented opportunity to acquire luxury watches at a significant discount.

Jomashop.com stands out as the go-to platform for capitalising on these deals, offering both new and pre-owned watches at up to 75% off.

Now is the perfect time to buy the luxury watch you’ve always wanted—before the market rebounds. Happy shopping!

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