WatchBox will enter the lucrative collectors’ watch markets of UK and China by the end of this year with openings in London and Shanghai planned within the next six months.
Both countries present tremendous logistical, commercial and political challenges, but the prize is worth fighting for, according to WatchBox Global CEO Justin Reis.
“WatchBox’s expansion strategy targets regions with a strong growth forecast for the luxury watch segment,” he says.
“We’re excited to expand our physical footprint in the United Kingdom and China, two of the top five global watch markets, where we will introduce our curated inventory and client advisory model. Both London and Shanghai have strong local watch cultures, and as leading destinations for international business, we aspire to be the home away from home for watch collectors around the world.”
Shanghai has been in and out of lock down for the past few months as China continues to pursue its zero covid strategy.
The United Kingdom has been a hugely challenging market for pre-owned watch businesses since it left the European Union and adopted its own sales tax policies that charge VAT on the entire cost of a second hand watch, not just on the profit margin between a buy and sell price.
This has made it noncompetitive against European Union countries, so exports to the Continent have virtually dried up and the country operates like an isolated island.
WatchBox versus Watchfinder
The UK is also home to Watchfinder, which is marking its 20th anniversary this year; a 15 year head start on WatchBox, which launched in 2017 and is now owned by the mighty Richemont Group.
Watchfinder sales totalled £100 million in the year to the end of March, 2021, with 80% of turnover coming from the UK.
WatchBox said last year that it notched up sales of $300 million, worldwide.
In some markets the WatchBox owns and operates its country subsidiaries, in others it works with local partners, for example with Ahmed Seddiqi & Sons in the United Arab Emirates and Saudi Arabia.
News of the international expansion comes as WatchBox reveals more about its plans for the United States, including a first peek at renderings of how its presence in New York will look when it opens in the autumn.
The collectible watch specialist is working with Andre Mellone’s acclaimed design firm Studio Mellone on the New York space as well as lounges in Miami, Los Angeles and Boca Raton.
The aim is to create an environment with the feel of a luxury hotel and staffed by collectible watch experts, as Mr Mellon describes: “Old concepts of retail, residential, and hospitality are all merging into one. Stores look like homes; homes look like hotels … it’s all about warmth and excitement and appreciation for design.”
Mr Mellone says he is taking inspiration for the American lounges from classic James Bond themes.
“Spaces should be impactful and exciting, but feel comfortable, and have a staying power. I’ve always been a fan of the design aspects of early James Bond films. There’s a cool, un-self-conscious, playful sexiness to them that I felt would perfectly match the concept for WatchBox,” he reveals.
WatchBox will be located in a 5,000 square foot space on the fourth floor of the Fuller Building at 57th Street and Madison Avenue in Midtown, Manhattan.
The lounge will merge event space with private showrooms, a boardroom, video and digital media studios, and a hands-on “watch lab,” where visitors can examine, learn, and work with WatchBox’s advisory team as they explore the company’s watch collections.
Mr Reiss says the opening will be followed by a number of events later this year.
Locations in Miami’s Design District, The Boca Raton resort, and an expansive lounge, showroom, and event space in West Hollywood will open before the end of 2022.
