Philip Man.
CHRONEXT will be profitable for at least a quarter of this year, maybe two, the company’s co-founder and CEO Philipp Man told WATCHPRO today, and it’s still expected to go public in the future.
A concerted focus on improving profitability has resulted in the company increasing its gross margin by 50% on every watch sold, Mr. Man said.
A 40% revenue growth in the second half of 2021 will have helped, and the company posted a 70% year-over-year revenue increase in January.
Mr. Man declined to comment on when an IPO might be planned but believes in the lessons he has learned since then a listing attempt on the SIX Swiss Exchange last October will make a future IPO a success.
The certified pre-owned market is growing faster than the primary watch sector.
Some estimates suggest that sales are already worth around $25 billion, not counting the gray market trading of brand new watches.
The Boston Consulting Group said the certified used car market was worth $18.6 billion in 2020 and expected to grow 8% per year, meaning the sector would be worth over $27 billion by 2025 .
The surge in demand over the past two years for both new and used watches should make this BCG forecast appear like an underestimate.
Rolex makes needed?
There have been rumors at Geneva Watches & Wonders that Rolex will be making a formal entry into the certified pre-owned watch space in partnership with its authorized dealers.
Rolex was asked to comment on the rumor but has not responded.
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