A similar trend emerged when Patek Philippe discontinued the Nautilus 5711/1A in stainless steel, making it more expensive than some of the brand’s gold models due to heightened demand.

Even within the same brand, not all models behave equally in the resale space. Müller also notes that demand isn’t just tied to brand prestige, but heavily linked to market liquidity, referencing the impact of crypto-millionaires on luxury watch prices in 2018.

Does such tight control over supply make sense for other luxury categories? Dr Achim Berg — a former McKinsey partner, who led the global apparel and luxury practice, and now an independent consultant — advises caution. He notes that watches are inherently durable and relatively easy to repair due to their materials, whereas products like cashmere and shoes do not preserve as well over time.

However, he adds: “There are two cases in which fashion items behave like watches: when they are ‘super hot’, meaning newly launched, highly desirable and in limited supply — such as with certain collaborations — or when they become timeless classics. Whether or not a brand can lean into this dynamic depends on its desired positioning. Another key point: while it’s easy to advise a brand to create ‘iconic’ pieces, it’s ultimately consumers — over time — who determine what becomes iconic.”

2. Resale as a service

The global resale market for watches is valued at $28 billion, according to Müller. Until about five years ago, this market was highly fragmented and unregulated, but the advent of certified pre-owned (CPO) programmes changed that. By offering authentication, servicing and official guarantees, retailers like Bucherer and Watches of Switzerland, along with brands such as Audemars Piguet and Vacheron Constantin, have sought to inject trust into resale.

One of the first to recognise the resale market as a core business strategy was watch brand Richard Mille. “We recognised the importance of providing our clients with a secure and luxurious environment to acquire rare and historical pieces no longer in production,” says Tilly Harrison, managing director of Richard Mille in the Middle East and Türkiye.

Through Richard Mille Pre-Owned, clients are guaranteed a reasonable price and can acquire vintage models that are readily available, or simply more in line with their taste and budget. Beyond creating a safe and transparent marketplace for buyers and sellers of Richard Mille watches, the programme fosters a collectors community. And there is also an additional benefit for the business and its reputation: it helps clean up the grey market, where authentic products are distributed outside of the brand’s authorised channels.