Harrods leverages Rolex Certified Pre-Owned to lead luxury watch resale pivot
Bottom Line Impact
If executed at luxury standards, Harrods' Rolex Certified Pre-Owned space will unlock a structurally growing, high-margin revenue stream, consolidate its positioning as a destination for collectible luxury watches, and reinforce both Harrods' and Rolex's brand equity among a younger, investment-oriented, sustainability-aware clientele.
Key Facts
5- Global pre-owned luxury watch market was estimated at around $24 billion two years ago and is expected to nearly double by the end of the decade, implying a high-single to low-double digit CAGR.
- Rolex CPO watches at Harrods are fully authenticated, serviced to Rolex standards, and sold with a two-year international warranty, reducing perceived buyer risk versus grey-market alternatives.
- Gen Z is entering the luxury watch category as early as age 15 and spends on average about €10,870 per watch, roughly 2x the spend of Millennials at equivalent life stages according to Watchfinder & Co.
- Industry analyses indicate the secondary watch market is growing faster than the primary market and could reach parity in size in the coming years, reshaping value pools across the watch ecosystem.
- Launch timing just ahead of the Christmas season positions Harrods to capture incremental high-ticket holiday demand from both collectors and first-time luxury watch buyers seeking authenticated pre-owned Rolex pieces.
Time Horizons
Key Roles Affected
Executive Summary
Harrods' new Rolex Certified Pre-Owned (CPO) space positions the retailer at the forefront of the fast-growing secondary luxury watch market, which is projected to nearly double from roughly $24 billion by 2030. The move enhances traffic, margins, and brand desirability while supporting Rolex's strategy to formalize, control, and monetize its secondary market with authenticated, warrantied product targeted at younger, investment-minded consumers.
Actionable Insights
Immediate Actions (Next 30-90 days)
Define a clear certified pre-owned strategy, including target categories, brand partners, and space allocation, using the Harrods-Rolex CPO model as a benchmark for integrating primary and secondary offers under one luxury-standard experience.
Rationale: With the secondary watch market on track to approach primary market scale, luxury retailers and brands that do not formalize their role in CPO within 12-24 months risk structural loss of margin and customer data to third-party resale platforms.
Role affected:CEO
Urgency level:immediate
Short-term Actions (6-12 months)
Develop a dedicated communication and content strategy around certified pre-owned that emphasizes heritage, investment value, and sustainability to specifically target Gen Z and younger Millennials.
Rationale: Gen Z is entering the category earlier and spending roughly 2x Millennials on watches, making brand-controlled CPO narratives a powerful acquisition lever and an opportunity to modernize brand storytelling around circular luxury.
Role affected:CMO
Urgency level:short-term
Pilot financial models that integrate trade-in mechanisms, CPO-driven margin uplift, and inventory buyback policies to quantify the P&L and balance sheet impact of a formal CPO business line.
Rationale: Certified pre-owned can deliver higher blended gross margins and recurring customer lifetime value, but it requires new capital allocation, inventory risk management, and warranty provisioning frameworks.
Role affected:CFO
Urgency level:short-term
Strategic Actions
Build a unified digital-physical journey for certified pre-owned, including online authentication certificates, transparent pricing histories, and appointment booking for in-store CPO consultations.
Rationale: Younger, digitally native collectors research and price-compare online before purchasing; an integrated omnichannel CPO experience will capture this demand and defend against pure-play digital resale competitors.
Role affected:Chief Digital Officer
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Brand dilution risk if second-hand experiences, visual merchandising, or pricing strategies are not executed at the same aesthetic and service standards as primary product.
- Channel conflict with independent resellers and grey-market dealers, potentially leading to short-term distribution tensions and pricing volatility as official CPO scales.
- Operational complexity in authentication, servicing capacity, warranty management, and traceability, which could generate reputational damage if any counterfeit or misgraded pieces slip through.
Primary Opportunities
- Capture value migration from grey-market channels by monetizing trade-ins, resales, and lifetime servicing, increasing margin per watch over its full lifecycle.
- Deepen engagement with Gen Z and younger Millennials who see certified pre-owned as both a sustainable choice and an accessible entry point into top-tier maisons like Rolex.
- Position the brand or retailer as a trusted authority on authenticity and price integrity in a crowded resale environment, reinforcing long-term brand equity and pricing power.