Rolex has dominated the watch world for nearly a century. The industry is a deep and complicated web of luxury houses and independent hopefuls. While brands like Patek Phillipe and Cartier vie for their place on the podium, Rolex holds a death grip on the chronophile’s aspirational collection checklist. But Audemars Piguet has decided to challenge them somewhere most other brands are deciding to ignore: the pre-owned market. Now, while something like the Royal Oak is an icon among enthusiasts, AP launching their own certified pre-owned marketplace to chase the reported $1 billion Rolex pie will certainly upset the market.
Like I said, it is a deep and complicated web, so I sat down with a horological expert and founder of WatchGuys, (317K on Instagram), Robertino Altieri, to have him walk me through what this means for watches and their passionate collectors.
The question: will buyers be able to get a higher premium for their watches? Only time will tell. Is that the system that The Watch Keepers is hoping to build?
The Launch
So what happened? And what is the goal and purpose of this launch? After a long time trying, why is it still AP’s goal?
“Audemars Piguet has officially launched the website for their highly anticipated certified pre-owned program, “The Watch Keepers.” After a few attempts to launch a CPO program over the years, it is currently only available in the European Union and Switzerland. However, it is expected to expand worldwide soon! They accept only watches 2 years or older, which AP will authenticate and service in-house to bring them up to AP’s standards. From there, the seller either has the option to create an auction for their watch or sell outright at a self-determined list price. This is quite surprising, as Audemars Piguet technically won’t be setting the market value of their own watches; the sellers will be. And time will only tell what the Audemars Piguet CPO market will look like in the US.”
The Biggest Takeaway/Surprise
Is this a surprising thing? What does that mean for the collector?
“Collectors may have been surprised, or even disappointed, that Audemars Piguet’s CPO program operates as a marketplace. Most luxury CPO programs offer up-front payment for goods, and ownership of the watch passes from the person to the business. This might immediately disinterest some users who would rather receive payment immediately from sources like WatchGuys. The headache of listing and determining the price of their watch is often something our customers want to avoid. Furthermore, while using a marketplace, one might think that all sales are final. However, sellers often have to deal with returns. Whether or not The Watch Keepers will take returns is unknown. Another surprise is that, as a marketplace, this is likely to be an online-only listing and will not really be able to help buyers build purchasing history. By contrast, Rolex’s CPO program allows buyers to build purchasing history with an authorized dealer in their physical storefronts. However, “The Watch Keepers” seems to be totally independent from the AD. In my opinion, buyers aren’t looking for another marketplace. They have plenty of trusted sources to buy pre-owned. They are more interested in services that allow them to receive an outright payout for less desirable models, like the Off-Shore, and receive top dollar.”
How it Works: Timeframe/Turnover Rate
Walk us through the process for picking up a luxury pre-owned?
“Luxury watch brands are notorious for having slow turnover rates when it comes to servicing watches. It can take anywhere from 3 to 5 weeks to service a watch with Audemars Piguet. And we can only assume that this turnover rate will require patience when selling with The Watch Keepers. I suspect that the mere process of uploading and registering a watch will take 3 to 5 days before determining if Audemars Piguet will even accept your watch. This is due to a myriad of factors, not including that most resellers have to run serial numbers through stolen watch databases. Assuming your watch is accepted, the process of authenticating, servicing, polishing, and photographing could take around 2 weeks (maybe more for complex or difficult servicing). Once your watch is listed, you just have to wait for it to be sold… but that would take months! Obviously, if the seller chooses to auction their watch, it will end in a set period of time. Watches set for auction on launch, October 26th, will be officially sold on November 7th (about 2 weeks). But if a seller doesn’t want to risk receiving less for their watch, and they choose to set a list price for their model, it could take months for their watch to sell! You would think once your watch sells, you should receive immediate payment. However, that is not necessarily true. If The Watch Keepers does accept returns, similar marketplaces take anywhere from 7 to 14 days to pay out their sellers. Therefore, I suspect that the soonest your watch could sell through this program is about 2 to 3 months.”
What this means for the market
Big picture impact? What can we expect to happen in the market now that AP has launched this?
“Audemars Piguet’s CPO program offers transparency to the market, with reassured authenticity for buyers. But, at the end of the day, it is still a marketplace. If I could use one word to describe a marketplace: time. Things don’t sell automatically, so this is meant for a patient person. Customers will want the most they can make from a watch, and I suspect rare models will do well on auction. Audemars Piguet will take a while to market the service itself, although it is already making quite a buzz. But it will likely take some time to build a client base.”
Who This Is Good For/Intended Demographic
Who is this for? What is the target demographic?
“The Watch Keepers is a good option for patient sellers who want to potentially get the highest price for their watch. The turnover rate for this CPO program is likely to be long, especially for low-demand pieces. But if you have the patience for it, this is a great option for you. However, those selling holy grail pieces or especially rare vintage pieces are likely to benefit the most from this program. New, high-demand models are not eligible for this program, so those selling watches purchased within the last two years will have to wait or sell elsewhere. Especially high-demand models should have a high turnover rate, anyway. For those looking to buy, if you’re hesitant to shop Audemars Piguet on the secondary market or expect factory-level work, this is the best option for you. Not only will these watches be certified as authentic, but they’ll also receive service and polishing from Audemars Piguet’s own in-house team. Furthermore, those looking to trade watches, build a purchasing history, or receive an immediate payout are better off selling elsewhere.”
What to look for in an AP
So, what should I be looking for when I shop for an AP?
An authenticated timepiece is the most important thing when looking for a watch, but it is important not to overpay. Buying from dealers like WatchGuys eliminates any uncertainty about authenticity, without the added premium that comes with most CPO programs. Audemars Piguet stepping into the secondary market as a middleman allows buyers to have an extra peace of mind when shopping second-hand. Their online inventory will receive AP’s stamp of approval and be up to their standard. However, time will tell if these watches have a large premium attached, like Rolex’s own CPO watches. For those hesitant to shop on the grey market, always buy from a trusted dealer and be sure to buy watches that retain their original box and papers. You can also always get your watches authenticated independently by going to Audemars Piguet.
Holy Grail Vintage AP
OK, forget price, what is my Holy Grail in the Audemars Piguet catalogue?
“The holy grail vintage Audemars Piguet, naturally, is the original 39mm Royal Oak Jumbo ref. 5402ST A-Series, produced in 1972. These models often appear at auction and are historically significant as the first-generation Royal Oak. The firsts of any model often see the highest collector sentimental and monetary value, ranging from $55,000 to $100,000 and up! Another grail that we’ve seen on the likes of Jay Z and Pharrell Williams is the Royal Oak Perpetual Calendar Skeleton ref. 25636. Produced in the late 80s, it is a perpetual-calendar movement with the original Jumbo proportions. There are configurations in platinum and steel, with a variety of dial colors, ranging in market value from $170,000 all the way up to $600,000!”
