This video analyzes the current state of the Rolex market, examining sales data and trends from a Morgan Stanley report in collaboration with watchcharts.com. The speaker focuses on Rolex's performance compared to other luxury watch brands, exploring factors contributing to Rolex's continued success and value retention in a softening market.
Rolex outperforms other luxury watch brands: In a soft market where buyer demand is high, Rolex experienced a 0.4% quarter-on-quarter increase in secondary market prices, while the average luxury brand saw a near 3% decline. Specific Rolex models like the GMT Master and Daytona show significant premiums over retail prices.
Value retention is key: Rolex models maintain high resale value, with some models commanding premiums exceeding 30% above retail price. The speaker defines and explains the concept of value retention in the watch market.
Rolex's Certified Pre-Owned (CPO) program: Rolex's CPO program, launched in late 2022, offers certified pre-owned watches with a warranty, impacting secondary market prices and potentially influencing the market's overall stability. However, the program's impact may be less significant than initially thought, with some CPO partners leaving the program.
Market analysis: The market is described as "tightening," with decreasing supply and increasing inventory age. The speaker cautions that this balance could shift negatively if broader market sentiment changes.
Specific model performance: The GMT Master and Daytona models are highlighted as top performers, while others like the Sea-Dweller show lower-than-average resale value. The speaker notes a trend of sport models performing better than precious metal pieces.
