Why are rich Chinese consumers selling their Rolexes?

[jfmiii]

Interesting article from the South China Morning Post...

https://www.scmp.com/magazines/style...olexes-passing

[brandrea]

My guess is that you need to buy groceries with cash

[Rickkk]

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

[beshannon]

Originally Posted by jfmiii

Why are rich Chinese consumers selling

Because they need to?

[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.

[Lucinda]

The Chinese have always flocked to Rolex as a unique store of value that can be traded outside of the system for fast cash. Most of the time they are not traded but are ready to go at short notice.

[bestbestquality]

https://www.youtube.com/watch?v=NNvAuPDJH7s

Possibly because many people lost their investments

[Sprezzatura!,]

Originally Posted by Rickkk

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

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.

[DBCooper07]

their housing market is crashing. China is a mess right now.

[Chewbacca]

My investments are dying!!!!!! Send the Trusted Sellers to go buy all of them now!!!!!!

[Roger Lococco]

Originally Posted by Lucinda

The Chinese have always flocked to Rolex as a unique store of value that can be traded outside of the system for fast cash. Most of the time they are not traded but are ready to go at short notice.

Great point. Kind of like Gold in SE Asia.


Sent from my iPhone using Tapatalk

[Stud Screw]

Just stay calm and trust in Pooh Bear.

[mountainjogger]

Originally Posted by beshannon

Because they need to?

Concise as usual my friend. And spot on.

[JRedford]

Perhaps it is their prowess at making fakes. The real ones are converted to cash while no one can spot a fake.

Win Win.

[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.

[beshannon]

Originally Posted by mountainjogger

Concise as usual my friend. And spot on.

[7enderbender]

I would love to see it all go to hell and the watch market becoming something for watch enthusiasts again (just big enough for the companies to continue to exist).

[Brian34343434]

Originally Posted by JRedford

Perhaps it is their prowess at making fakes. The real ones are converted to cash while no one can spot a fake.

Win Win.

Took the words out of my mouth….unless you are using a loop or are a watch maker you can’t tell the difference anymore…..

[Chewbacca]

Originally Posted by JRedford

Perhaps it is their prowess at making fakes. The real ones are converted to cash while no one can spot a fake.

Win Win.

Underrated comment.

I’ve always felt the Swiss looked the other way so as not to annoy the domestic market there.

But now it’s too late.

They’re so good at making them better than a cheaper real Swiss make, and faster than the Swiss prestige makers could, that even the rich have said, who cares, I’ll wear one because who’ll question it?

[HelloMelo]

Originally Posted by Brian34343434

Took the words out of my mouth….unless you are using a loop or are a watch maker you can’t tell the difference anymore…..

I've never seen a rep in person before. Are they that good?

[inadeje]

Originally Posted by DBCooper07

their housing market is crashing. China is a mess right now.

And it is and will be a crash of epic proportions that will make the 2008 sub prime debacle seem like a children's lemonade stand

[Blanch]

The people in China have more things to worry about than Rolex watches. This can be said for all of us.

[Incroyable12]

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.

If anything the wealthy Chinese will buy traditional Chinese art and antiques to show "patriotism".

[Filipão]

Originally Posted by Incroyable12

If anything the wealthy Chinese will buy traditional Chinese art and antiques to show "patriotism".

Meaning my family's pair of "Chinese School" mid XIX (Wampoa + HK) is worth a bundle now?

[Incroyable12]

Originally Posted by Filipão

Meaning my family's pair of "Chinese School" mid XIX (Wampoa + HK) is worth a bundle now?

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

Chinese collectors only want Imperial pieces.

[QuelleHeureEstIl]

Originally Posted by Incroyable12

If anything the wealthy Chinese will buy traditional Chinese art and antiques to show "patriotism".

+100

I read that many Chinese Internet personalities famous for flexing their luxury lifestyle closed their accounts, because they were afraid to be "disciplined".

It is a little tricky to expose foreign luxury items, so they are a lot less publicized on the social networks by "private" accounts.

Jack Ma is famous outside China for his "retreat", but it is a lot more common. See the chip manufactures CEOs for exemple, but also actors, etc.

The Central Commission for Discipline Inspection (which is ultra powerful) is ruthless.

[rambo99]

heard that the chinese housing market has finally collapsed, many property developers go bankrupt. wealthy people need to sell their luxury goods to pay debt.

[amh]

Why are rich American consumers still flipping their BNIB Rolexes?

[S.Explorer]

Originally Posted by QuelleHeureEstIl

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."

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

[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.