Page 70 - Forbes - Asia (September 2018)

FORBES ASIA
WATCHBOX

Better Over Time

Sincere Watch scion embraces a new idea: sell older models.

BY PAMELA AMBLER

ay Liam Wee is part of the to resale mostly
global luxury-watch elite. focus on the U.S.
His father, Tay Boo Jiang, market.
led Singapore’s Sincere In a Hong
TWatch to retail promi- Kong interview,
nence. It was sold to Hong Kong rival Tay—sporting
Peace Mark in 2007 at a market high, a classic Rolex
and ater the global inancial crisis Presidential with
dragged the buyer into bankruptcy, the a gold bracelet,
younger Tay fetched his family business deep blue face and
back for not even a quarter of what he’d diamond index—
sold it for. A few years later, he ipped says the secondary
the irm again at twice the purchase inventory is too
price. For a bit, that got him a spot on large for auction
our Southeast Asia Rich List. houses to handle.
So how does the 59-year-old build “he watch divi-
on that legacy? In used watches, with sion in terms of
new-concept global retailer WatchBox, sale is $300 mil-
which sells only “pre-owned” time- lion,” he notes.
pieces. He’s invested with U.S. industry hat’s a fraction The pre-owned market is big, in more ways than one.
veteran Danny Govberg and another of the pre-owned and restores them. WatchBox provides
cofounder, Justin Reis, together raising market, which by Swiss advisory irm a warranty for authenticity. Refur-
$100 million more from Singapore pri- Kepler Cheuvreux’s estimates is $5 bil- bished watches, averaging $10,000 a
vate equity irm CMIA Capital Partners lion a year. piece, are then resold through the net-
to fuel a global expansion. WatchBox is pushing ahead in work at a 15% to 20% spread, says Tay,
he Swiss-centered luxury watch Asia, now the world’s most important who serves as Watchbox’s chairman. He
industry has always watch market, with a forecasts 2018 sales at $200 million.
shunned used physical showroom Some analysts estimate that the
products for fear of in Hong Kong’s pre-owned market in premium watches
cannibalizing new Central district. he could eclipse new sales in ive years,
watch sales—aside “collector’s lounge” but WatchBox will hardly have that
from the auction of is stacked with art to itself. Driven by an industrywide
rare vintage col- relating to the con- slowdown in sales, watchmakers
lectibles, which cept of time, curated have swallowed some of their doubts.
helps reinforce the by Cindy Chau, Tay’s Boutique Swiss maker MB&F launched
notion that pricey well-connected secondhand sales online at roughly a
watches are a good spouse. he space is 25% discount. Blue-chip Swiss brand FABRICE COFFRINI/AFP/GETTY IMAGES (TOP); LIANHE ZAOBAO © SINGAPORE PRESS HOLDINGS LIMITED
investment. To be also part oice, part Audemars Piguet is setting up a similar
sure, used watches meeting ground for distribution channel. Luxury goods
have had a market, watch aicionados. group Richemont acquired Watch-
but mostly of late he Web portal inder, a platform to buy and sell used
through big Web difers from consign- watches both online and oline.
emporia like eBay ment sites Chrono24 WatchBox is taking the ight well
and Amazon. A and Chronext in that beyond Asia. In fact, this summer it
handful of smaller it takes physical pos- opened an oice to lead its European
sites dedicated Watchbox Chairman Tay LIam Wee. session of all watches expansion—in Switzerland. F

68 | FORBES ASIA SEPTEMBER 2018