Engagement rings are not the only type of jewelry thriving in the luxury resale market. Luxury watches and statement pieces are also booming, as financially strapped Americans look to sell jewelry for a quick buck. Others, with disposable income to burn, are at the same time seeking out discounted high-value items like never before.
“We’re seeing this bifurcation where we’ve got people that are in deep financial duress that have a need to sell now and they’re liquidating some of their more valuable assets,” Schneider said. “Meanwhile, even for the folks that have jewelry and may not have a need to sell, they’re looking to switch out their collections.”
Beyond engagement rings, The RealReal found in its recent 2020 luxury resale report that sales of luxury watches like Rolex increased by 32% in 2020, nine times more than other watch brands. Further, it reported that the average resale value for high-end watches is currently 1.6 times stronger than its lower value watches in stock.
According to Sasha Skoda, head of women’s at The RealReal, as Americans stay home and buck traditional seasonal styles, they are turning away from high-end trendy pieces and are instead gravitating toward “high-value, timeless” items.
“Faced with economic uncertainty, shoppers are gravitating toward the safest bets in luxury: investment pieces,” Skoda wrote in the luxury resale report. “They’re spending on high-value, timeless styles with enduring resale value – knowing they can consign them in the future to recoup most of that investment or wear classic pieces for decades to come.”
Schneider said Worthy has also seen an uptick in inventory of high-end watches and timepieces, mirroring a larger trend across the industry. According to Bloomberg, the fastest growing category within Sotheby’s livestream auctions in June and July was wristwatches, with a 42% increase in new clients for the category.
“We have reached a lot of new clients with our smaller online sales and made our sales more accessible,” Sotheby’s Geneva Head of Sales Mikael Wallhagen told Bloomberg. “And to be honest, bidding in auctions can be an addiction.”
Schneider echoed Wallhagen’s sentiments, adding that though Worthy sells jewelry to wholesale businesses rather than directly to consumers, the strength of bids “are at the highest levels they’ve ever been.”
“The options are just becoming incredibly more competitive as the retail market is really starting to recover,” he said.
Source: Business Insider