The ultrawealthy’s demand for Rolex watches in Britain remains undeterred by the ongoing inflation crisis, leading to a surge in the waiting lists for these luxury items despite escalating prices.
Watches of Switzerland, the leading seller of high-end timepieces in the UK, reported that rising prices haven’t deterred customers, resulting in lengthier waiting lists. The company’s sales have experienced a robust increase, growing by 20% to £1.5bn for the year ending in April. This growth spurred a near 10% leap in the company’s shares, placing it at the top of the FTSE 250.
This trend offers further evidence that high-net-worth individuals are maintaining their spending habits even as prices for high-demand items increase. Luxury watch expert, Luxe Watches, indicated that certain Rolex models are retailing at an 11% higher rate in the UK this year compared to the previous one. The Day-Date White Gold model, for instance, has seen its price rise to £35,000, a significant increase from £31,450 in early 2022, according to Luxe Watches’ data.
In related news, other premium watch brands are also witnessing a spike in demand. Swatch Group, the owner of Omega, projected potential record revenues this year, fueled by soaring sales in China and the US. Swatch reported a worldwide surge in average sales per store by 30%, driving its shares up by 5.6%.
This trend emerges following the global easing of Covid-19 restrictions, which has ignited a spending spree on luxury items, particularly among consumers in China. LVMH, the multinational luxury goods conglomerate, became the first European company to achieve a market value of $500bn (£382bn) earlier this year, propelled by strong demand for its brands, including Louis Vuitton and Christian Dior.
Expenditure on watches, specifically, has been increasing amidst growing fears of an economic recession, as certain timepieces are considered by some investors as almost immune to downturns.
David Duggan, a dealer at Burlington Arcade, suggested to the Telegraph last year that the Rolex Daytona is a prime example of this.
“Even though it comes with a substantial premium, its value will continue to grow over a decade or more. It’s been this way since 1989. While prices experienced a minor decline in 2008, they swiftly recovered. Can you name another product that has retained its premium for 33 years?”
Echoing this sentiment, Watches of Switzerland’s CEO, Brian Duffy, stated earlier this year: “Given the inflation, watches are perceived as a sensible investment.
“These are products that endure indefinitely and are more likely to appreciate in value rather than depreciate.”
