(Yicai) Jan. 12 -- Swiss luxury watchmaker Rolex has launched its certified pre-owned watch business in the Chinese mainland, opening the first shop in Nanjing.

The new Rolex certified pre-owned watch boutique opened in Deji Plaza, one of the largest shopping malls in Nanjing and home to the flagship stores of many luxurious brands, last week. It is run by Oriental Watch, with customers able to make appointments via the WeChat mini-program of the Hong Kong-based premium watch retailer.

The Rolex Certified Pre-Owned program "aims to add additional value to pre-owned Rolex watches circulating in the market," according to the company. Each pre-owned watch comes with an RCPO stamp after being inspected and refurbished.

Rolex's entry will help regulate the pre-owned watch market, including quantifying value retention rates and determining prices based on condition, Lin Bei, judge at the Grand Prix d'Horlogerie de Genève, told Yicai. "This is a significant development, as it effectively brings the bargaining power of the secondary market back to the official realm."

Rolex watches with the brand's new official RCPO certification stamp cost on average at least 25 percent more than the same models sold by non-certified dealers, US luxury watch online retailer WatchGuys reported, the the actual premium typically ranges from 15 percent to 40 percent, depending on local demand and dealers’ own costs. However, such dealers determine the actual price based on local demand and their own costs, so they can charge between 15 percent and 40 percent premium.

"Many brands were previously resistant to the second-hand watch market, believing it would negatively impact first-hand sales," Lin pointed out. "However, a strong demand for pre-owned watches can actually stimulate the sales of new watches because people are more willing to purchase new watches as long as pre-owned ones retain their value."

Lin said that Rolex's RCPO program has generally been welcomed by pre-owned watch dealers he has interacted with. "It's like an official endorsement for second-hand watches, which is more favorable for transactions and indirectly encourages consumers to purchase such products."

Rolex is one of the first big brands to engage in large-scale second-hand business, Lin noted. "The secondary market for its products has always been very robust, and this move can help standardize the pre-owned market, which will essentially contribute to the healthy development of both the primary and overall markets."

Rolex's sales exceeded CHF10.5 billion (USD13.1 billion) in 2024, with its market share reaching up to 32 percent, according to a report released by Morgan Stanley in collaboration with Luxe Consult last year.

Sales under its RCPO program likely topped USD500 million last year, global second-hand watch trading platform WatchCharts predicted.

Rolex introduced the RCPO program in Switzerland at the end of 2022, later expanding it to its major global markets. The firm also allied with Oriental Watch to launch the program in Hong Kong in October 2024.

According to Jiemian News, Rolex is preparing to open a second certified pre-owned watch boutique in HKRI Taikoo Hui on West Nanjing Road in Shanghai.

Editors: Tang Shihua, Martin Kadiev