Dr. Ito's In-Depth Analysis of Mechanical Watches! Vol. 43 - Reconsidering the Difference Between Authorized Stores and Secondary Retailers

Good evening, everyone!

This column discusses mechanical watches from an engineer's perspective. In this 43rd installment, we will be talking about:

"The difference between authorized dealers and secondary market retailers"

This will be our topic for today.

While you might have a general idea of the difference between "authorized dealers" and "secondary market retailers" for watches, you might still wonder where to buy when you're about to purchase a luxury watch.

The answer is simple: the decision on where to buy depends on "what you prioritize."

This article will explain the pros and cons of "authorized dealers" and "secondary market retailers" in detail, so if you're considering purchasing a luxury watch, please use it as a reference.

"Authorized Dealers" and "Secondary Market Retailers"

 

"Authorized dealers" are stores that sell "authentic products" imported by companies that have agency agreements or dealership contracts with manufacturers. In contrast, "secondary market retailers" are stores that source and sell watches that have been sold by authorized dealers both domestically and internationally, as well as vintage watches that have been used for a long time, from general customers,watch dealers, and others.

While there are differences in their sourcing routes, both types of retailers sell undoubtedly "genuine" watches made by various watch manufacturers.

 

1. About Authorized Dealers

The prices are set at thesame domestic list price, and all the main products handled are "new." The fact that you can purchase watches of the same quality at the same price from any authorized dealer is a significant advantage that provides peace of mind.

Furthermore, in recent years, some authorized dealers have started handling "certified pre-owned" watches. These are pre-owned watches that authorized dealers have given official maintenance and sell with long-term warranties. Even though they are pre-owned, the involvement of an authorized dealer provides an exceptional sense of security, don't you think?

2. About Secondary Market Retailers

Authorized dealers sell through official agencies in Japan from the brand's home country, whereas secondary market retailers source their watches through "overseas buyers," "domestic general users," and other channels, without going through authorized agencies. Since this route does not involve authorized Japanese agencies, the biggest feature is that prices can be set based on market value, unconstrained by Japanese list prices.

Even secondary market products are undeniably genuine watches. However, there can be significant differences in sourcing methods and services depending on the shop, leading to variations in watch prices and conditions across stores.

Pros and Cons of Authorized Dealers

1. Pros of Authorized Dealers

Authorized dealers located nationwide generally ensureno difference in price, quality, or serviceacross their stores. As mentioned earlier, being able to purchase under the same conditions regardless of the store is a significant advantage. Furthermore, the crucial after-sales maintenance for luxury watches is handled by the manufacturer, providing peace of mind in case of any issues. The presence of staff with extensive product knowledge is also an important point not to be overlooked.

Another advantage is that due to direct dealings with manufacturers, detailed information and arrivals of new products are available sooner than at secondary market retailers.

2. Cons of Authorized Dealers

The main drawback of authorized dealers is, of course, the price.Discounts are almost impossible, which makes it a difficult option for those who want to buy at a lower price.

Conversely, for highly popular models, the secondary market price often exceeds the list price, and authorized dealers typically have no stock, making it impossible to purchase. For watches like Rolex sports models, where demand far outstrips supply, it is currently difficult to obtain them from authorized dealers.

Furthermore, many watches have seen price increases due to factors like the weak yen and rising raw material costs. In recent times, various brands have frequently raised prices, and it's not uncommon for people to lament that they can't buy the models they want due to price issues.

Pros and Cons of Secondary Market Retailers

1. Pros of Secondary Market Retailers

The biggest advantage of secondary market retailers is undoubtedly their "extensive selection." They can sell watches that match the store's taste through their unique selection, without being constrained by manufacturers or affiliations, which is a feature not found in authorized dealers. Moreover, to bridge the gap with authorized dealers in terms of warranties, many shops offer their own unique services and warranties.

For brands like Rolex, Patek Philippe, and Audemars Piguet, some watches, especially sports models, remain difficult to obtain from authorized dealers. However, secondary market retailers can offer these watches, albeit at premium prices. While the selling prices for these watches exceed their list prices, the ability to purchase them immediately when desired is a significant advantage, isn't it?

Additionally, secondary market retailers also source from overseas, so many items that are difficult to obtain in Japan are available. Discontinued models, limited editions with only a few pieces worldwide, and valuable models released by collectors and enthusiasts can also be obtained from secondary market retailers. The ability to choose a watch from a wide range of options is also an important point not to be overlooked.

2. Cons of Secondary Market Retailers

Since sourcing routes vary widely among shops, there's a significant disparity in quality. In shops with lax inspection systems, scratches might be left unaddressed and displayed. Therefore, it's crucial to identify a trustworthy shop. Make sure to consider the following points:

・It is a specialty watch store (with knowledgeable staff)

・It has a store in a highly competitive area

・It has high online reviews

Shops located in highly competitive areas face intense competition, and if they handle low-quality services or watches, bad reputations spread quickly. Conversely, shops that have continued to operate in such areas for many years are proof of their sustained high quality, and among them, shops with high online reviews can be considered a criterion for trustworthiness.

Summary

What did you think?

Whether to buy from an authorized dealer or a secondary market retailer depends on what you prioritize. Do you value the trust of an authorized dealer? Do you prioritize price? Are you prepared for the time and mental burden of the "marathon" to find a watch, or do you prioritize prompt delivery, even if it costs more?

I believe it's best to choose the store that suits your individual needs, so rather than deciding "I'll only buy from an authorized dealer," I recommend being flexible in your search for a purchase location.

I hope this article provides valuable information for everyone and sparks even a little interest in luxury watches! Also, if you have any questions, please feel free to ask directly, and we will be sure to answer them thoroughly. We look forward to your visit and inquiries.

Stay tuned for the next installment! See you then!