Fake Rolex watches make up half of the luxury replica market, exec says

• Half of replica watches are Rolex replicas, according to Watchfinder’s CEO.
• The exec told Bloomberg that the brand sees the highest demand on replica markets.
• Meanwhile, prices for luxury watches have fallen near two-year lows on secondary markets.

The replica watch market is getting more and more sophisticated, and roughly half the market is comprised of Rolex fakes, according to the chief executive of Watchfinder & Co.

In an interview with Bloomberg on Tuesday, CEO Arjen van de Vall said up to 10% of the watches received from sellers last year were found to be knockoffs, with facsimile Rolexes showing up the most often. The company has been buying and selling pre-owned watches since 2002. 

“Rolex is the most aspirational luxury watch brand and the highest demand, hence, it’s the most replicated,” van de Vall said.

Previously, Watchfinder, which is owned by Swiss luxury corporation Richemont, was able to identify roughly 80% of fakes by sight alone, van de Vall told Bloomberg. Now, however, that proportion has dropped to just 20% since replicas are getting more convincing. 

But it’s not just Rolex that’s showing up in the knockoff market.

“You see replica or clone watches — very, very high quality watches — of virtually all of the big luxury brands,” van de Vall told Bloomberg. “The whole gamut.”

The luxury timepiece market at large has tumbled over the last year as the global economy slows down and wealthy buyers tighten their belts. Bloomberg’s Subdial Watch Index, which tracks the 50-most traded pre-owned watches, has dropped nearly 20% since last June. 

For example, a second-hand Audemars Piguet Royal Oak Jumbo Ultra Thin has declined by more than 35% over the last year, and now it sells for an average of $71,692.  

President Joe Biden has stated multiple times that he doesn’t anticipate a recession, but Wall Street forecasters aren’t so certain. JPMorgan strategists see a 23% chance that the US skirts a downturn, while Bank of America’s top economist Michael Gapen expects a recession to strike by year-end.