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KUALA LUMPUR, MALAYSIA\u00a0–\u00a0M<\/a>edia OutReach<\/a> – 13 July
WatchExchange is poised to be the first
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According to management consultancy,
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Industronics Berhad Executive Director
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“As we have seen over the last few
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Indeed, the robust primary luxury
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Despite the strong demand as evidenced
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Datuk Chu further emphasises that the industry’s
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“We have a team of professional and
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The success of WatchExchange will
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The Group is looking to set up a fund
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Datuk Chu believes that the
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“We do not think that the strength of
\n2021 – Bursa Malaysia Main Market-listed company Industronics Berhad<\/a><\/b>
\n(“Industronics” or “Company” or “Group”),
\nwill tap into the USD17 billion<\/b> pre-owned luxury watch market with the
\nofficial launch of its own luxury watch e-commerce platform, watch-exchanges.com<\/b>
\n(“WatchExchange”), through Ecgo International Limited, its wholly-owned
\nsubsidiary in Hong Kong. <\/p>\n
\n
\n
\n
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\nluxury watch e-commerce platform that issues authenticity certificates for pre-owned luxury watches in
\nMalaysia and Asia Pacific. Among some of the leading brands profiled include Audemars Piguet, Hublot, Patek Philippe, Tag Heuer, IWC,
\nOmega, Jaeger LeCoultre, Panerai, Rolex, Breitling<\/i>.
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\n
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\n
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\nBain & Company, the global pre-owned luxury watch market was valued at
\napproximately USD17 billion in 2018. However, less than 20% of that market is
\nin the Asia Pacific region, while only 25% of the total pre-owned luxury watch
\nsales were online transactions. Euromonitor International, an independent
\nstrategic market research provider, estimates the
\nvalue of retail sales of timepieces in Malaysia to grow by some 5% per annum
\nbetween 2019 and 2022, to reach a market value of up to RM2.5 billion. <\/p>\n
\n
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\n
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\nDatuk Chu Boon Tiong<\/b> said: “Based on data and overall
\nmarket performance, it is evident that the pre-owned luxury watch market has
\npromising growth prospects with a potential boom ahead. We are excited to
\ncapitalise on the growing trend with the launch of WatchExchange and aim to
\npave the way for a streamlined trading platform that will not only revolutionise the transactions of pre-owned
\nluxury watches but drive further growth in this industry. <\/p>\n
\n
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\n
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\nyears, pricing and demand for pre-owned luxury watches have been so strong that
\neven high-end watch brands are moving into the pre-owned market themselves.
\nHowever, the biggest challenge for the pre-owned luxury watch market lies in
\nauthenticating the watches. Our role here is to ensure that the shoppers can
\nsafely purchase luxury watches on WatchExchange without having to worry about
\nthe security and authenticity of the pre-owned luxury watches.”<\/p>\n
\n
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\n
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\nwatch market has fuelled the rapid growth of its pre-owned counterpart.
\nFurther, with the increasing trend of monetising timepieces, especially during
\neconomic downturns, and the ever-growing demand for luxury goods, pricing and
\nappetite for pre-owned luxury watches have gained traction over the last few
\nyears. In May this year, it was reported that Switzerland’s Chronext is preparing an initial
\npublic offering (IPO) that would value the online marketplace for new and
\npre-owned luxury watches at up to EUR1 billion (USD1.2 billion). <\/p>\n
\n
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\n
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\nin the pre-owned luxury watch market, only 25% of these transactions were
\nconducted online shows that there is still much room for the online marketplace
\nto grow. In line with current sales and marketing trends, the online space is
\nset to be the primary sales channel for pre-owned luxury watches, raising
\ne-commerce’s share of total pre-owned luxury watch sales eventually to the
\npoint of saturation.<\/p>\n
\n
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\n
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\nbiggest challenge is trust, as consumers tend to have reservations about the
\nauthenticity of pre-owned luxury goods. As such, Industronics Berhad, with its
\nteam of professional and experienced watch appraisers, aims to create a
\nprofessional, safe trading environment that will elevate the customer experience
\nof purchasing pre-owned luxury watches to a new level. Industronics will also
\nset up offices in China, Hong Kong, Japan, Singapore, Malaysia, the United
\nStates, Canada and Europe, where sellers from all over the world could visit
\nfor physical appraisals of their watch collections.\u00a0 <\/p>\n
\n
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\n
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\nexperienced watch appraisers, ready to help our customers to evaluate and
\nappraise pre-owned watches. Upon confirmation of its authenticity, the Company
\nwill issue a globally recognised certificate to the new buyer. This is very
\nimportant to ensure the value of the watch remains. It is our goal to ensure
\nauthenticity and to gain trust from our customers in order for the Group to
\nachieve revenue growths,” he added. <\/p>\n
\n
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\n
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\ndepend on excellence in several key areas — stability, sustainability, Search
\nEngine Optimisation (SEO), and new media marketing, all of which will help
\nboost traffic to the Group’s platform. At the same time, the Group will
\ndirectly benefit from a highly optimised official website and landing page that
\nwill set the Group apart from others in a market of homogeneous products. The
\nGroup’s venture into e-commerce will require extensive funding, which will be
\nused to develop and enhance the Group’s platform and carry out both online
\nadvertising and offline promotional activities.<\/p>\n
\n
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\n
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\nin Hong Kong to raise a total of RM250 million from potential investors.
\nProceeds raised will be utilised to purchase different brands of luxury watches
\nfor resale on the Group’s platform. Industronics aims to invest around RM25
\nmillion or 10% of the total funding required, together with Hong Kong Cyberport
\nFund, which will invest an equivalent amount as the Group or at a 1:1 ratio.
\nThe remainder of RM200 million will be open to other investment groups for
\ninvestment. Industronics Berhad looks forward to collaborating with all its
\npotential investors in achieving every success.<\/p>\n
\n
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\n
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\ncompetitive advantage for WatchExchange lies in the ability of the Group to
\nbuild an entire “unicorn” ecosystem around the region. <\/p>\n
\n
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\n
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\nthe platform lies solely in the certification and authentication guarantees. We
\nintend to replicate the business models globally via partnerships with a locally
\nlisted company in the respective countries. Among the markets that we are
\nlooking into are Malaysia, Singapore, Indonesia, Hong Kong, China and several
\nemerging markets in Europe as well. Once our ecosystem matures, we will have so
\nmuch more to offer to our customers, in terms of the variety of brands, models,
\nand other services,” Datuk Chu said. <\/p>\n
\n
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