You could draw a strong parallel to the luxury automobile industry (like BMW or Audi), where the concept of brand-certified pre-owned has proven to be a great success, where they finally legitimized the experience versus the used car sale lots, and consumers benefited by knowing the actual manufacturer inspected the quality and condition of each piece, and was further backed by a manufacturer warranty. This was a revolutionary concept that brought a new level of consumer confidence to the pre-owned automobile market. TrueFacet is this vehicle for the watch brands, as we drive the CPO program and digital for them.
This is the first time within the jewelry and watch marketspace that this is happening. When consumers shop Brand Certified Pre-Owned watches on TrueFacet, there’s no mystery about their provenance or authenticity: they are always sourced direct from the brands. For consumers, shopping Brand Certified Pre-Owned offers clear benefits. They get peace of mind, knowing their favorite brand has personally checked out each piece for quality, condition, and authenticity, and each is further backed up by a 1 year manufacturer’s warranty. On top of this, TrueFacet’s high-touch concierge service helps our customers every step of the way along their buying journey.
AA: What were some of the biggest hurdles TrueFacet needed to overcome prior to any major watch brand being comfortable with offering pre-owned watches with a factory warranty for sale on your platform?
TK: For quite some time now, brands have been trying to figure out how to gain a foothold in the pre-owned market space. Everyone can see that consumers are eager to buy pre-owned and that there is tremendous market potential in the pre-owned category, but with no clear solution to this problem, the brands have been losing out. Our aim with this launch was to showcase to brands how to legitimize and take control of their secondary markets, while at the same time, to drive a better customer experience online that upholds the brand’s integrity and equity.
As you know, in this industry, it’s all about trust and relationships. We have built relationships with many brands over the last few years in the new product category with our Brand Boutique, and they noticed firsthand that the TrueFacet platform was growing and catering to a young generation of digital consumers in a real and relevant way that intimately connected shoppers with the brand’s story. This resonated with the brands and we add value by sharing data and key insights to help them, too.
Once all these benefits were laid out to the brands, the concept of Brand Certified Pre-Owned was not a hard sell, and they started partnering with us. As TrueFacet continues to grow and demonstrate success in the Brand Certified Pre-Owned Category with our brand partners, we are confident that this market segment will continue to expand and more brands will come to us for the same solutions.
AA: A lot of consumers seek pre-owned watches because of the prices, which makes sense. There are likely some people out there who see “officially sanctioned by the brands” and probably feel that this will keep prices high. Respond to the people who are concerned this move will dramatically increase the prices of pre-owned watches.
TK: We believe that many consumers want a quality product first and foremost. There are many counterfeits out there, as well as unauthorized products. Price comes second in a consumer’s mind but when they look at price, you need to be fair. By officially partnering with brands, the price is not going up necessarily, but, instead, a consumer is paying for exactly what they are getting: a quality product with a new warranty, just like you do if you buy CPO from a luxury car dealership.
AA: What exactly is the process of getting “brand certification” for these pre-owned watches. Is each watch looked over by the brand personally? Are there exacting criteria each timepiece must adhere to? Explain to consumers more precisely what they are getting with a brand-certified pre-owned watch and how that might differ from a non “brand-certified” pre-owned watch?
TK: TrueFacet’s Brand Certified Pre-Owned watches have first gone through the brand for verification or are coming directly from the brand and/or their retail partners. Every timepiece is checked for quality, movement, working condition, running correctly, water resistance, etc.
The biggest difference between Brand Certified Pre-owned and one that is not is that the former includes a new manufacturer’s warranty. TrueFacet also backs every item and provides concierge service whenever the customer requires.
AA: How soon until consumers start seeing brand-certified pre-owned watches on other retail platforms? Or is this something which is going to be exclusive to TrueFacet for the time being?
TK: While we can’t speak for others, we know that TrueFacet’s platform alone has the robust technology to drive a pre-owned program for brands that leverages pricing, tech, supply from consumers, and more. No one else is well-positioned with the digital muscle and expertise for a Brand Certified Pre-owned program. We plan to launch even more brands in the coming months and keep growing this offering to consumers globally. truefacet.com