Core Viewpoint - Rolex has officially launched its Certified Pre-Owned (CPO) program in mainland China, marking a significant step in the high-end watch market as it seeks to regulate the second-hand watch market and enhance consumer confidence [3][4]. Group 1: Rolex's CPO Program - The CPO program was first introduced in Switzerland at the end of 2022 and has since expanded globally, with the first dedicated store in mainland China operated by Oriental Watch [3][4]. - The CPO program aims to add value to the circulation of Rolex pre-owned watches, with each watch undergoing official inspection and refurbishment before receiving the CPO stamp [8][12]. Group 2: Market Dynamics - The high-end watch market is experiencing a cooling trend, yet Rolex remains resilient, with projected sales from the CPO program expected to exceed $500 million in 2025 [4]. - According to Morgan Stanley and Luxe Consult, Rolex's sales are anticipated to surpass 10.5 billion Swiss francs in 2024, capturing a market share of 32% [6]. - The demand for popular Rolex models, such as the Daytona and Submariner, continues to outstrip supply, leading to long wait times and inflated prices in the secondary market [6][8]. Group 3: Pricing and Market Transparency - The introduction of the CPO program is expected to increase the average price of certified pre-owned Rolex watches by at least 25% compared to non-certified counterparts, with potential price premiums ranging from 15% to 40% based on local demand and dealer costs [8][12]. - The move towards official second-hand sales is seen as a way to enhance market transparency and consumer trust, particularly beneficial for new buyers who may be wary of the risks associated with the secondary market [12].

Core Insights - Rolex officially launched its Certified Pre-Owned program in mainland China, starting with a store in Nanjing, marking its entry into the second-hand watch market [1] - The program aims to standardize the second-hand market, enhancing the value of pre-owned Rolex watches and providing a two-year warranty [2][4] - The second-hand watch market is experiencing a shift, with luxury brands like Rolex recognizing its potential and entering the space to improve market transparency [4][5] Group 1 - Rolex's Certified Pre-Owned program is expected to generate over $500 million in sales by 2025 [1] - The program requires that certified second-hand watches be sold for at least two years and undergo official inspection and refurbishment [2] - The average price of Rolex watches with the official RCPO certification is at least 25% higher than those sold by non-certified dealers [3] Group 2 - The high-end watch market is facing a downturn, with Swiss watch exports declining by 7.3% to 2.2 billion Swiss francs in November 2025 [5] - The entry of luxury brands into the second-hand market is seen as a way to boost confidence and encourage consumers to purchase new watches [4] - The second-hand market's growth is expected to positively impact the sales of new watches, as a well-functioning second-hand market can enhance the perceived value of new purchases [4]