Why are rich Chinese consumers selling their Rolexes?

[Rolexatlast]

Maybe the Chinese bought them to make money, not because they have any interest in them.

Now they are dropping in value, the Chinese are selling to realise their profits.

[DJ2020]

Originally Posted by Michael T

China’s economy is not in a good of shape as you would think. Lockdowns, refusal to import more effective Covid vaccines. A housing bubble of epic proportions. A shrinking working age (21 to 65 years old) population as a result of their one child rule and significant abortions of females. This results in the fastest greying of any large country.

Oh my, I had no idea. Sounds terrible.

[MrMercedes]

If the Chinese were rich, they wouldn't sell their watches.

[Rolexatlast]

Originally Posted by MrMercedes

If the Chinese were rich, they wouldn't sell their watches.

They would if they were bought to realise a profit. Why hold depreciating assets?

[Bobcat Sig]

Originally Posted by QuelleHeureEstIl

This is half the story.

Actually, big part is related to corruption. If you want to understand that side: https://www.rolexforums.com/showthre...9#post12314159

People forgot that not long ago (2016, after China introduced new anti-corruption laws), Rolex was said to have bought and destroyed gigantic stock of watches (500M CHF by memory) to avoid a market price fall.

Richemont, 2017: "The Swiss watchmaker Richemont has destroyed nearly €500m (£437m) of its designer timepieces over the past two years to avoid them being sold at knockdown prices."

Remember that in nov the 20th National Congress (most important event in China every 5 years) may be the start of new policies to fight corruption and wealth inequality (= luxury items may be vilified) because of the current economical situation.

Interesting, but why destroy so many if they are legit watches?

[lamnyc]

Originally Posted by Incroyable12

That kind of Chinese export art really only has a market in the West.

Chinese collectors only want Imperial pieces.

Correct. I worked for an auction company.

[Stud Screw]

Think, think, think.

[Bizcut1]

Originally Posted by INC

"Hanging on in quiet desperation is the Chinese way
The time is gone, the song is over, thought I'd something more to say"

I think, the hype is over. Out there, in the age of lockdowns and online meetings, no one needs these luxury watches anymore. IMO they never had enthaustical feelings to these watches, they just bought them because they could. Now that they don't see any point in owning these, maybe they simply sell these unnecessary things without heartache.

Ah, the Pink Floyd re-write...well-played.

[Incroyable12]

Originally Posted by Sprezzatura!,

It’s the way of the world.

There are many high-end pawnshops who do astronomically well due to wealthy people selling their possessions. Items are sold to fund other things, obviously, because there is not enough for everything.

It’s one thing buying something but not really having the means to be able to pay for it, but another, being able to afford luxury items but choosing to sell them based on your own personal definition of priorities if and when the situation arises.

Even people who are financially comfortable have to cut back at times, depending on circumstance.

I remember reading about how Jackie O had to sell a pair of earrings that were a wedding gift from JFK's father in order to afford a brooch she wanted.

[Sprezzatura!,]

Originally Posted by Incroyable12

I remember reading about how Jackie O had to sell a pair of earrings that were a wedding gift from JFK's father in order to afford a brooch she wanted.

There you go, right there!

[walkman2727]

Originally Posted by Michael T

China’s economy is not in a good of shape as you would think. Lockdowns, refusal to import more effective Covid vaccines. A housing bubble of epic proportions. A shrinking working age (21 to 65 years old) population as a result of their one child rule and significant abortions of females. This results in the fastest greying of any large country.

I am Chinese, lived in the us for over 20 years. I can not stop laughing your opinions.
Have you been to China? Have you seen all the negatives you mentioned by yourself?
You sure can "free speech " in this great country, but no nee to make stories. I have stopped doing that after I finished my 3rd grade in elementary school.

[Kingranch]

Originally Posted by walkman2727

I am Chinese, lived in the us for over 20 years. I can not stop laughing your opinions.
Have you been to China? Have you seen all the negatives you mentioned by yourself?
You sure can "free speech " in this great country, but no nee to make stories. I have stopped doing that after I finished my 3rd grade in elementary school.

20 years? Been to China recently? After Covid broke out? Just curious.


https://theconversation.com/china-pr...economy-189082

[The Londonist]

Originally Posted by walkman2727

I am Chinese, lived in the us for over 20 years. I can not stop laughing your opinions.
Have you been to China? Have you seen all the negatives you mentioned by yourself?
You sure can "free speech " in this great country, but no nee to make stories. I have stopped doing that after I finished my 3rd grade in elementary school.

Perhaps you could have provided some balanced observations either to provide context for others opinions or to present a counterpoint.

No-one gains with barbed comments.

[walkman2727]

Originally Posted by Kingranch

20 years? Been to China recently? After Covid broke out? Just curious.


https://theconversation.com/china-pr...economy-189082

yes, over 20 years, yes, I travel to China every year.
During Covid, there are lockdowns in communities, government provide free food, deliver to you door.
I came to the us when I was a teenager , now I am 40, honestly home is always China. And I will move back in future 2 years.

I invite you and all members of this forum to China for visiting. You will be surprised how funny are the fake news in this country. in China, we have a lot of fake Rolexes , well made for oversea buyers to order, in US there are lots of fake news, people believe in their heart, only can be seen on talk shows in China.


.

[amh]

Walkman I was fortunate enough to visit Shanghai a few years ago, fantastic experience. When I left I was convinced the USA is years behind in some areas. (No idea how things were during 'covid' however, I'm just thankful I happen to live in an area where virtually nothing was forced upon me.) Wonderful people, incredible food! I don't trust the news over there but I don't trust it here either!

Anyway they're likely feeling the same global recession as we are. People are selling watches since the market is still inflated. Better to make 20-50% profit on your Rolex now than wait a year and get nothing.

[warrior]

Just don't trust moronic conspiracy theories that permeate the news and, which large amounts of people accept and swallow based on their political affiliation , and you'll be fine

Originally Posted by amh

Walkman I was fortunate enough to visit Shanghai a few years ago, fantastic experience. When I left I was convinced the USA is years behind in some areas. (No idea how things were during 'covid' however, I'm just thankful I happen to live in an area where virtually nothing was forced upon me.) Wonderful people, incredible food! I don't trust the news over there but I don't trust it here either!

Anyway they're likely feeling the same global recession as we are. People are selling watches since the market is still inflated. Better to make 20-50% profit on your Rolex now than wait a year and get nothing.

[Scapegoat]

Ibtl!

[walkman2727]

Originally Posted by amh

Walkman I was fortunate enough to visit Shanghai a few years ago, fantastic experience. When I left I was convinced the USA is years behind in some areas. (No idea how things were during 'covid' however, I'm just thankful I happen to live in an area where virtually nothing was forced upon me.) Wonderful people, incredible food! I don't trust the news over there but I don't trust it here either!

Anyway they're likely feeling the same global recession as we are. People are selling watches since the market is still inflated. Better to make 20-50% profit on your Rolex now than wait a year and get nothing.

I agreed with you, the inflation is worldwide. According to some Taiwanese news, the US inflation rate is about 18%??!! I live in LA, hard to believe how did I survive this many years.

[28mm]

Originally Posted by walkman2727

I am Chinese, lived in the us for over 20 years. I can not stop laughing your opinions.
Have you been to China? Have you seen all the negatives you mentioned by yourself?
You sure can "free speech " in this great country, but no nee to make stories. I have stopped doing that after I finished my 3rd grade in elementary school.

I'd like your opinion on this video.

The comments about the aging population and the ramifications of the one child policy are not 'made up' stories.

The link is not 'fake news'. Peter Zeihan is respected and I believe worthwhile to consider.

https://www.youtube.com/watch?v=HfEC...AndGeopolitics

[Etschell]

The very same reason they bought them to begin with. Herd mentality.

[Reikolexguy]

I’m of ethnic Chinese stock.

And I’ve to agree that the biggest challenge facing China aren’t property busts, cyclical downturns, trade wars or near peer competitions. Those things eventually find some sort of resolution.

The biggest challenge that mainland China is facing right now is its ageing population. That is a very scary prospect.

China, and all other countries with ageing populations, will eventually have to reckon with what Japan is currently facing.

Even the Chinese communist party cannot oblige its citizens to have more children.

The current generation of the working age population will have to bear the cost of baby boomers retirements.

They will have to accept that they will retire with less benefits and work far longer than their parents had to, perhaps well into their 70s.

That’s a hard truth that not something many governments dare to tell its citizens.


Sent from my iPhone using Tapatalk

[BLNR Nairobi]

Originally Posted by S.Explorer

That's interesting, heard about Richemont destroying used watches but not Rolex. Didn't think they cared much about the resale market.

Ask him/her for proof on Rolex. I’d bet that either 1) no response or 2) no proof. The Richemont story is well known, the Rolex story is wishful thinking.

[Flint]

Herd instinct , they will move on to the next ' must have fashionable item ' and it won't be only people in China , probably happening worldwide generally .

[grimps]

The Chinese seem to get a bad rep whatever they do on this forum
It stands to reason that if there are more than a 1.4 billion of them then more Chinese people will own Rolexs than other countries.
It also stands to reason that more Chinese people will cash their Rolex in than others in time of economic hardship.
Trends become more apparent when you're part of the most populous country on earth though I'd expect the same % of people are doing exactly the same on other countries

[JRedford]

To reason that the behavior of the Chinese is the same as the rest of the world is wrong.

[Darcey]

Cash stored away from prying eyes in China is an attractive thing to have.

[macrowatch]

Originally Posted by walkman2727

I agreed with you, the inflation is worldwide. According to some Taiwanese news, the US inflation rate is about 18%??!! I live in LA, hard to believe how did I survive this many years.

If you measure inflation in LA with a Din Tai Fung dumpling index instead of the Economist (magazine) Big Mac index, it surely does feel like inflation is 18%!!!

[Mystro]

Originally Posted by Rickkk

Not that rich if they’re buying them can’t afford to keep huh?

^^Bingo^^. There is a lot of simple truth to this observation as buying a watch to wear and enjoy within your lifestyle is far from buying to flip/trade as a investment vehicle.

[brandrea]

Originally Posted by Reikolexguy

I’m of ethnic Chinese stock.

And I’ve to agree that the biggest challenge facing China aren’t property busts, cyclical downturns, trade wars or near peer competitions. Those things eventually find some sort of resolution.

The biggest challenge that mainland China is facing right now is its ageing population. That is a very scary prospect.

China, and all other countries with ageing populations, will eventually have to reckon with what Japan is currently facing.

Even the Chinese communist party cannot oblige its citizens to have more children.

The current generation of the working age population will have to bear the cost of baby boomers retirements.

They will have to accept that they will retire with less benefits and work far longer than their parents had to, perhaps well into their 70s.

That’s a hard truth that not something many governments dare to tell its citizens.


Sent from my iPhone using Tapatalk

Same issue we have here in Canada, which is why our immigration policy is what it is.

You need new immigrants to keep the work force going. Cultural diversity is also a huge benefit

[Michael T]

Originally Posted by Reikolexguy

I’m of ethnic Chinese stock.

And I’ve to agree that the biggest challenge facing China aren’t property busts, cyclical downturns, trade wars or near peer competitions. Those things eventually find some sort of resolution.

The biggest challenge that mainland China is facing right now is its ageing population. That is a very scary prospect.

China, and all other countries with ageing populations, will eventually have to reckon with what Japan is currently facing.

Even the Chinese communist party cannot oblige its citizens to have more children.

The current generation of the working age population will have to bear the cost of baby boomers retirements.

They will have to accept that they will retire with less benefits and work far longer than their parents had to, perhaps well into their 70s.

That’s a hard truth that not something many governments dare to tell its citizens.


Sent from my iPhone using Tapatalk

Shrinking adult age populations will be extremely important. The US has had significant immigration to counteract the current 1.5 children born per female. Peter Zeihan's latest book is eye opening. Despite all the negatives around immigration in the USA, the second generation immigrants are quite productive.