Not only are consumers being scared off from buying luxury watches as the cryptocurrency market continues to crater, but it’s becoming harder to find those big-name timepieces than ever before, a Rolex watch seller in the United Kingdom told Bloomberg.
While it’s been a struggle for a while to keep up with the demand of Rolex, Audemars Piguet and Patek Philippe watches, the supply is now dwindling for other brands too, including Zenith, Omega and IWC, Watches of Switzerland Group CEO Brian Duffy said in the report.
“A lot of what we are selling we can’t get enough of in the first place,” Duffy said, per the report. “The whole industry is characterized by more demand than supply.”
About 75% of Watches of Switzerland Group’s sales by value come through customers signing up for wait lists when the luxury timepieces they want aren’t available immediately, the report stated. The company’s wait list continues to grow even as it’s able to fulfill some orders.
“Even if there is an impact in demand, it will be a long time coming before we feel it,” he said in the report.
Watches of Switzerland is the U.K.’s top Rolex retailer and is among the largest in the U.S., with a market share of about 9%, according to the report. Among the most-wanted items for those on Duffy’s wait list are Zenith chronographs, IWC pilot watches and Omega’s James Bond Seamaster and Speedmaster models.
Watches of Switzerland’s in-store and online sales grew by 48% in the U.S. to 428 million pounds ($512 million) in fiscal year 2022, a number that Duffy said in the report could have been higher if there were more supply available. Meanwhile, watch prices are up 4% to 5% this year.
Some 25% to 30% of demand for luxury items was driven by the increases in cryptocurrencies. Those prices are falling now, even as prices for new luxury watches seem to be holding up.
Read more: Crypto Downturn Hits Luxury Goods as Buyers Become More Cautious
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