Story Highlight
– Bob’s Watches sees 20% annual growth in luxury market.
– US dominates global luxury watch market significantly.
– Airport retail expansion underway; JFK store recently opened.
– Secondary market prices rising; confidence returning to buyers.
– Online sales growth key, with focus on customer trust.
Full Story
Paul Altieri has navigated the complexities of the pre-owned luxury watch market since he took control of Bob’s Watches in 2010. Over the past 15 years, the company has weathered various market fluctuations, including the pandemic’s impact, a surge in demand post-lockdown, and subsequent market adjustments for sought-after brands like Rolex, Audemars Piguet, and Patek Philippe. Despite these challenges, Bob’s Watches continues to expand, reporting an annual growth rate of approximately 20% from its operations based in Newport Beach, California, and Naples, Florida.
Recently, Bob’s Watches has ventured into airport retail, establishing points of sale in duty-free areas, starting in Las Vegas, then expanding to Abu Dhabi, with New York’s JFK airport set to follow.
In an interview with WatchPro, Mr. Altieri expressed strong confidence regarding the company’s future amidst shifting market dynamics.
When comparing the current watch market to the landscape upon the company’s inception, Altieri noted a significant increase in complexity: “It’s dramatically more challenging today than it was back then. Pricing, availability, competition, technology – everything has changed. When we launched, the market was simpler.”
The shift in the US watch market’s dominance was also discussed, with Altieri highlighting how the landscape has drastically altered over the last decade. “The US has always been an incredibly important market. It’s affluent, it’s large, and Americans love to consume,” he stated. The statistics reflect this, as brands like Rolex, Omega, and Patek Philippe now allocate over 50% of their production to the US market, in stark contrast to a time when markets in China and Japan were more prevalent.
A notable market disruptor has been the introduction of tariffs on Swiss watch imports to the US. Altieri remarked on the substantial impact of a 39% tariff, noting it forced many brands to reconsider their shipping strategies. This resulted in a notable fluctuation in Swiss watch exports, as many retailers prepared stock before the tariff’s implementation.
Reflecting on this market volatility, Altieri discussed Bob’s Watches’ move into airport retail. He stated, “International luxury travel retail has become a massive business,” as airports transform terminals into high-end shopping experiences. Each airport location for Bob’s Watches features a curated selection of pre-owned luxury watches and operates as a concession within the duty-free shopping environment.
In terms of inventory, Altieri mentioned, “Usually around 20 to 30 watches at any one time,” with a strategy for regular replenishment to maintain a fresh offering for customers.
Turning to the secondary watch market, Altieri remarked upon recent price trends indicating a resurgence after bottoming out two years ago. He explained, “We saw prices increase around 7–10% across the board” in the last year, emphasizing that now is an opportune moment for potential buyers. He noted continuing demand for Rolex watches, alongside a robust performance from brands like Omega and Breitling.
While the secondary market thrives, Altieri acknowledged that apart from the leading brands, many watches still trade below retail prices. He pointed out, “When we started 15 years ago, everything – including Rolex – traded about 30% below retail.” The evolving landscape has shifted prices, particularly with Rolex models now often commanding a premium.
The introduction of Rolex’s Certified Pre-Owned (CPO) program was also highlighted as influential in validating the secondary market. Altieri noted, “Trust has improved massively over the last decade. The more confidence consumers have, the healthier the whole ecosystem becomes.”
Bob’s Watches has seen steady growth, primarily driven by its e-commerce operations, which account for a significant portion of its business. Altieri expressed contentment with organic growth of around 20%, stating, “Luxury watches have proven to be relatively recession-resilient, and consumers are very comfortable buying online now.”
Regarding concerns about online marketplaces and the presence of counterfeit listings, Altieri confirmed ongoing issues with authenticity in the industry. He emphasized the importance of purchasing from reputable dealers, asserting, “Everything on our website is owned by us. If it’s listed, we have it, and it ships immediately.”
As for the increasing sophistication of counterfeit watches, he acknowledged the challenges posed by “superfakes,” emphasizing the necessity for thorough inspection when purchasing vintage items, where provenance holds significant value.
Looking to the future, Altieri expressed optimism for the watch market. “The market is healthy, demand is strong, and prices are moving in the right direction,” he remarked, maintaining a focus on customer care, transparency, and gradual growth as the keys to ongoing success.
