Vacheron Constantin, the Swiss watch manufacturer owned by Richemont, has launched a global certified pre-owned (CPO) programme in collaboration with secondary watch retailer Watchfinder.
This initiative aligns Vacheron Constantin with other luxury watch brands that have ventured into the pre-owned market, aiming to offer collectors a secure, authenticated channel for purchasing pre-owned timepieces. The programme will expand to additional authorised vendors and be available alongside auction house sales.
Rise of the Certified Pre-Owned Market
In recent years, the luxury pre-owned watch market has grown significantly due to increased interest in watches as investment assets and heightened demand for limited models. A 2023 Boston Consulting Group (BCG) report showed that the pre-owned segment made up a third of the luxury watch market in 2021, valued at approximately USD $25 billion out of a total USD $75 billion market. The report also indicated that this segment is growing faster than the primary market. This growth has led high-end watchmakers like Rolex to create CPO programmes aimed at enhancing security, quality, and authenticity. Vacheron Constantin’s entry into this sector reflects the increasing relevance of CPO programmes in maintaining quality standards for pre-owned transactions.
Key Features of Vacheron Constantin’s CPO Programme
Vacheron Constantin’s CPO watches will offer three assurances intended to address collector concerns about authenticity and quality in the secondary market. These are:
- Extended Warranty
Each certified pre-owned watch includes a two-year international warranty, under which Vacheron Constantin covers defective parts at no charge. This feature aligns with the warranties offered in similar CPO initiatives from other luxury brands, offering an added measure of security. - Digital Passport with Blockchain
Each watch in the CPO programme receives a digital passport, using blockchain technology to record ownership history, technical details, and servicing information. This reflects a broader industry trend toward using blockchain for enhanced security and transparency. - Certified Guarantee Letter
Each CPO watch is accompanied by a letter certifying it has undergone functional checks and restoration by Vacheron Constantin to meet the brand’s standards.
An additional benefit for collectors is that Vacheron Constantin can restore any watch made since its founding in 1755. This capability extends the scope of its CPO programme, ensuring historical models retain their original specifications. The CPO programme thus serves as a natural extension of Vacheron Constantin’s Les Collectionneurs collection, which includes restored vintage pieces from the brand’s archives.
Addressing Secondary Market Risks
The growth of the pre-owned watch market has also led to heightened risks of encountering fraudulent sellers. Vacheron Constantin’s partnership with Watchfinder, also a Richemont company, is an attempt to address these risks, providing a controlled inventory backed by authentication processes. By offering pre-owned options supported directly by the brand, the CPO programme seeks to provide a safer purchase experience for collectors, including those new to the market.
“The second hand watch market once evoked images of back alley deals and discounts, with dubious authenticity and a high risk of fakes and fraud,” Boston Consulting Group wrote in its 2023 report. “Today’s market is transparent, fuelled by online information sharing, supported by authentication services, and composed of knowledgeable buyers and established sellers. The secondhand market is essential for collectors who seek rare and special watches, given that nearly 95% of watches are no longer in production.”
As BCG noted in its report, the pre-owned watch market has evolved from a space once associated with unauthorised deals into a more transparent and trusted sector, supported by information sharing and reliable authentication services. In some cases, CPO watches may be priced higher than similar models on the open market, with the premium reflecting the added security and assurance provided by the manufacturer.
Certified Pre-Owned as an Expanding Standard
With this initiative, Vacheron Constantin has joined a growing trend of luxury brands establishing certified pre-owned programmes. For jewellers, this shift highlights the increased role of certified pre-owned options in the watch industry, underscoring the demand for greater quality and transparency in pre-owned transactions. As the industry adapts, offering verified pre-owned options may become integral to meeting the evolving needs of collectors.
Implications for Auction Houses
Vacheron Constantin plans to make its CPO programme available alongside auction house sales, giving consignors the option to invest in restoration before auctioning their pieces. This may increase the value of certain auctioned watches, especially those that have undergone brand-certified restoration. Collectors, however, may have different preferences regarding restored versus original-condition vintage watches, as some prioritise original wear and patina.
