provides a representation of a watch’s performance over time.
Also, our algorithm ignores any extraordinarily high or low sales prices to
avoid inaccurate estimated values. An added value for the user here is that if
they’re worried about paying too much for a watch, they can follow it in a
separate section of their Watch Collection and immediately see its current and
historic value to help make the decision as to which watch to buy even easier.
Plus, once they’ve made the purchase, they can add it to their own digital
collection to monitor its financial performance over time. We’ve done this with
some of our employee’s watches. It’s fun to use.
Is the condition very important?
Of course condition matters, but with watches, it is more about the rarity than
the condition in many cases. This is especially true when it comes to limited
editions like the Omega Speedy Tuesdays and rare vintage models; it’s quite
fascinating how these timepiece perform over time.
You also provide a Watch Scanner tool in your app. How does it work?
It’s actually pretty easy to use: Once you’ve launched the Watch Scanner tool
in the Chrono24 app, simply take a picture of the watch you want to identify.
The tool compares the photo with a database of around 15,000 watches and
almost two million images from more than 6.5 million previous and current
listings on Chrono24. Based on this data, the tool can recognize the model
and provides the user with other information like the reference number and
its estimated market value according to the Chrono24 Watch Collection.
So far, the tool is able to identify around 15,000 different watch models,
which is a lot. But that’s just a small percentage of all existing luxury watches
out there. However, since it is based on a learning artificial intelligence
program, the Watch Scanner is constantly evolving. We will soon be releasing
an improved version that will include a feedback function and be able to
identify more models. So far, the tool has been used more than a million times
– and it’s only four months old.
Do you envision a physical location (permanent or pop-up) as part of the
Chrono24 formula?
Looking back ten years ago, I never could have imagined that Chrono24
would be as big or as relevant as it is today. We acquired one of our retail
partners about a year ago. We did this mainly to learn what life is like on the
other side of the “screen,” so to speak. We also see the potential for other
services. We have partnered with Fratello Watches, and we now sell limited
editions through Fratello. As of today, we are not looking for retail locations;
instead, we count on our partners and look to help them sell online. That said,
we are an agile business, so it’s hard to predict the future.
What are the strongest markets for Chrono24?
Historically, Germany was our strongest market, but this was obviously due
to the fact that that is where Chrono24 started. Today, Chrono24 is a global
entity, with the United States and Europe leading the way, followed by Asia,
which is growing very fast. That being said, the United States is one of our
top-three markets in many aspects, including sales and visits. We are very
proud that we have around 900,000 unique visitors from the United States
every month and that there are more than 120,000 American user accounts
on Chrono24.
Does Chrono24 sell more new or used watches?
It’s about two-thirds pre-owned – or “pre-loved,” as we like to call it – and
one-third new watches.
Is Chrono24 a tool to help dealers move aging inventory?
We work with close to 3,500 dealers worldwide and dedicate entire teams
to these strong and important partners. While many of our partners
have existing storefronts, Chrono24 is becoming a more relevant part of
their business, and some of our partners actually sell exclusively through
Chrono24. Most dealers offer all of their inventory on Chrono24, and not
only aging pieces..
What trends do you see in the U.S.?
Overall, we see a polarization of price points. The very high end remains
strong –especially among well-known and recognized brands like Rolex,
Omega, and AP – while the lower end of luxury watches (let’s say under
$1,000) is not as strong as it could be. Also, our American users mostly buy
from sellers that are also based in the United States – more than sixty percent
of all U.S. sales are domestic. Surely one of the reasons for this is the high
number of American dealers on our marketplace. Globally, it’s a different
picture: Approximately seventy percent of sales on Chrono24 are made across
international borders.
What about smartwatches on Chrono24?
Based on what we are seeing, smartwatches are acting like a gateway into
more traditional mechanical watches.
That said, not many people are searching for Apple watches on Chrono24.
It seems our customers are searching for something special, and when they
want to buy a smartwatch, they go elsewhere to do their research and make
purchases.
How has buying a luxury watch online evolved over the last decade or so?
I remember before Chrono24 started I would spend hours and hours
researching watches online and feeling like the platforms at the time made
had more of a flea market atmosphere. You would have to search site after
site and numerous retailers. If each site had a few hundred options, you might
have to search for a long time to find the watch you really wanted to have.
You also needed to have a lot of confidence that the individual or company
that you were buying from was legitimate.
We are now in a situation where we can provide global transparency, a
huge selection, and create a platform that makes for secure and comfortable
purchases.
How safe is it to buy a watch from Chron24 with regard to authenticity?
Authenticity is our number-one priority, as is the safety and security of the
entire transaction from placing to order to when it’s on your wrist. First of all,
our global sales team verifies and vets every dealer before we let them on the
platform – and not everyone meets our high standards.
Second, we created Trusted Checkout, a free escrow service. Once you’ve
found your dream watch on Chrono24 and have come to an agreement
with the dealer, you transfer the amount due to an escrow account. We only
release the funds to the seller once you have received the watch and are
happy to keep it.
If there are issues, our multi-lingual support team is there to help buyers
and sellers and guarantee a smooth transaction. Should conflicts arise, we
even have a mediation team to guide buyers and sellers toward a mutually
satisfactory solution.
At this time, we don’t perform physical checks of the watches; instead,
we offer a no-questions-asked return policy as part of Trusted Checkout to
safeguard ultimate safety for the transaction.
Do you consider Chrono24 a disruptor in the industry?
This is our role: changing the industry, changing the way people purchase
watches, especially pre-owned and vintage watches.
Considering our global transparency, huge inventory, and market data
paired with the low cost for the service of selling a watch, I would say we
are creating a new and possibly disruptive platform for buying and selling
watches.
Several years ago, industry leaders wouldn’t even talk to us, but this has
quickly changed as they have seen the service we provide – and probably also
the passion for luxury watches we share.
SPRING 2020 | INTERNATIONAL WATCH | 37