I first started hearing rumours that Rolex was working on an official certified pre-owned initiative back at Watches & Wonders in March, and first wrote about it in April.
Sources even told me the programme had a code name, Project Timeless, and the likelihood is that Rolex has been working diligently in the background on its plans for many years.
Rolex officials have never denied the development of a plan, but kept to their usual monastic silence on the record until today.
Earlier this week, I submitted questions to Rolex, which were passed up to Geneva. I was told they would be answered by the official press release, which dropped this morning.
I thought I could put that to the test, and try to answer all of the questions I had sent to Rolex in my own words or using extracts from the press release.
Let’s see how I do…
Q. Rolex has until now kept the pre-owned watch business at arms-length, which has left it in the hands of third parties ranging from platforms like Chrono24 and eBay to traders such as Watchfinder and WatchBox. What is Rolex’s plan moving forwards?
A. This is addressed directly in the news: “Rolex watches – new or second-hand – should only be bought from Official Rolex Retailers, who are authorised to sell and care for Rolex watches,” the brand says.
Realistically, these third party traders stand to benefit from the initiative. Much of the public is still afraid to buy second hand watches. Rolex has legitimised the practice.
Q. What differences will customers experience?
A. Unclear, but we should be able to see it in action very soon because Bucherer UK, whose Rolex boutique in London’s Knightsbridge is the biggest in Europe, is part of the pilot project.
Q. What differences will Rolex’s authorised dealers and accredited service centres experience?
A. This is not addressed. There has been frenzied activity at Rolex’s own service centres, including Kings Hill in Kent, but there has also been huge investment from authorised dealers into accredited watchmakers and workshops. The expectation is that, if qualified, ADs will be authenticating watches and issuing gurantees.
Q. How will this new programme differ from what already happens with customers trading in watches at their local ADs?
A. This is almost a marketing question. Many ADs already take trade-ins and sell second hand watches that have been through their workshops, often with some sort of warranty, so the product that will go back on sale with the official Rolex certified pre-owned tags will be identical to what has been sold before.
The difference is that the Rolex-backed guarantee brings huge credibility and comfort to buying second hand.
I would also expect the pre-owned watches to be displayed and presented by staff with the same care and attention given to new Rolex watches.
Q. Do you expect watches certified and authenticated by Rolex to be resold with an additional warranty, and do you expect this to make them more valuable than Rolex watches that have not been through the process?
A. 100% yes. Every watch certified by Rolex will have a two year international warranty, which is certain to command a premium over second hand watches sold without it.
Q. I expect it will take many years to develop a global plan for pre-owned. How and with which partners is the programme being piloted and tested?
A. Bucherer is the only retail partner in the first phase of this project, and will be offering Rolex CPO watches at showrooms in six countries: Switzerland, Austria, Germany, France, Denmark and the UK from the start of December.
Other Official Rolex Retailers who choose to be part of this programme will be able to do so from spring 2023.
Q. Is the ultimate aim for every Rolex watch that is bought and sold on the secondary market to be authenticated by Rolex or one of its accredited partners?
A. Yes. Rolex has stated that customers should only buy second hand watches from authorised dealers.
Q. How will Rolex’s authorised dealers, particularly those with accredited service centres, be involved?
A. Unclear, but it seems implausible that Rolex itself will handle the potentially enormous volume of watches that will need to go through a rigorous certification process, and ensure the watches are serviced to a level that allows them to be given a two year guarantee.
I think ADs will do this work, but they will also build the cost of that work into the price of the watch when it resells — another reason why watches with the Rolex guarantee are likely to be more expensive than those without.
I expect only complex vintage watches will go to Rolex, because it is unrealistic for ADs to have the skills, equipment and parts to treat them.
Q. Will Rolex ADs have a prescribed method for buying, selling, displaying and marketing pre-owned watches alongside new?
A. We will have to wait and see how this all looks once we get to visit a Bucherer showroom that is part of the programme. I’m doing my best to line this up today!
Q. Will Rolex or its accredited partners issue warranties on watches once they have been checked?
A. Again, not specifically addressed in the Rolex press release, but I would say this is essential for the smooth running of a process that could see millions of Rolex watches passing through.
Q. Will Rolex ADs be permitted to sell Rolex-certified pre-owned watches online?
A. Selling online is not mentioned in the press release, but the answer is yes. Check Bucherer’s website this morning and you will see it proudly advertising its CPO Rolex watches, complete with all the new branding that Rolex has issued around the initiative.
Q. Will Rolex set the price for certified pre-owned watches centrally if they are being resold from the AD network?
A. No idea on this one but a quick comparison of prices on the Bucherer site suggests prices are on the high side, but reflect wider market prices. For example, a Rolex Certified Pre-Owned ‘Kermit’ Submariner is offered by Bucherer for £23,500. The same watch can be found elsewhere advertised for £14,000. Brand new, and I mean the most recent model, a Kermit costs £8,900.
I guess customers will decide what to make of a retailer selling a brand new Kermit for £8,900 with a five year guarantee (yes, I know there is a waiting list), next to an older version of the watch with a two year guarantee for almost three-times more.
Q. There are tens of millions of Rolex watches in circulation. Does Rolex ultimately want to check and certify them all (as they are traded)? Do you have the infrastructure for this scale of programme?
A. The billion dollar question. We will see. Wouldn’t it be incredible if all Rolex watches were sold new with forensically detailed information stored on a blockchain so that it is tethered to the watch throughout its decades of life. If ADs could retrospectively attached this data to watches, it would make super fakes a thing of the past.
Q. In what ways is Rolex expanding its capacity for checking, servicing and authenticating watches both within the company or within the network of accredited service centres and authorised dealers?
A. No official word on this, but my moles inside Rolex service centre hubs in the UK and USA tell me there has been frantic activity to ramp up capacity. It is also assumed ADs and accredited service centres will take on this work. We know from recruitment advertising with WATCHPRO that many are desperately hiring watchmakers.
Q. Can and will Rolex record each watch in some way, for example using blockchain technology, so that they are forever known to be genuine?
A. Not mentioned in today’s news.
Q. How will Rolex deal with discovering fakes or stolen watches though this programme?
A. Not answered. There are certain to be times when customers have unknowingly bought a super fake or stolen watch. This should be discovered during the authentication process, leading to an uncomfortable conversation with an unsuspecting client.
Q. Does Rolex expect this initiative to end up setting publishable prices for certified pre-owned watches, or will ‘the market’ always dictate prices?
A. All we can see is what Bucherer is charging this morning, and it looks like the market is in charge.
It will be interesting to see if the Kermit Submariner I mentioned drops in price in the coming weeks if it doesn’t sell.
Prices for many Rolex models have been dropping for months on the secondary market while new watch prices have been rising (two price rises so far this year in the UK).
Instant gratification will always be the downfall for any buyer of luxary watches. If the real Daytona is still a year away and the used one is ready to go out the door for $500 more and guaranteed by the brand then I will probably buy it NOW. However, if the AD’s Daytona is more than $50 over the grey market Daytona then the brand loses the sale…
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, looks like a 116610 Hulk, a totally different watch. Confusing to see such information given and allowed to stand by yourselves.
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, looks like a 116610 Hulk, a totally different watch. Confusing to see such information given and allowed to stand by yourselves.
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, looks like a 116610 Hulk, a totally different watch. Confusing to see such information given and printed by yourselves.
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, looks like a 116610 Hulk, a totally different watch. Confusing to see such information given and printed by yourselves.
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, looks like a 116610 Hulk, a totally different watch. Confusing to see such information given and printed by yourselves.
The “Kermit” referred to in one of the answers (“offered by Bucherer for £23,500”) and mentioned later on, is in fact a 116610 Hulk, a totally different watch. Confusing to see such information given and printed by yourselves.
The Kermit example was online with Bucherer, the Hulk was in its store. Sorry for the confusion.