The State of the Global Watch Industry, No. 2April 29, 2020

Trends in Global Watch Buying and Sellingin Light of the Global Coronavirus Crisis
An In-Depth Look at User Behavior & How Popular Models Are Performing Financially

For future updates send an email towatch-industry@chrono24.com

1Dear Colleagues and fellow Watch Enthusiasts,

As in the first report, we have compiled graphs to demonstrate
the impact this crisis is having on the watch industry. This time,

In terms of daily life, little seems to have changed since wewe‘re taking a particularly close look at user behavior on oursent out our last report in late March. We‘re still taking every

platform and the financial performance of the most popularprecaution to protect the health of ourselves and our loved

models. We hope this will give both businesses and otherones. Chrono24‘s entire team of almost 300 individuals is stillinterested parties a better idea of the industry‘s current state.

working from home, and everyone is doing well. I hope you

In the coming weeks, we will be updating this report regularly

and your family, friends, and colleagues are all equally safein order to provide you with our insights into the global watchand healthy.

trade and help guide your business. Feel free to subscribe toLong story short: Even though luxury watches are our heart‘s

future reports here: watch-industry@chrono24.com.

true passion, right now, there are much more important

I would like to thank our employees, users, dealers, andthings to worry about. However, many of our dealers,partners for their loyalty and the joy they find in watches.

users, and other industry players have expressed fear anduncertainty regarding themselves and their businesses.

Tim Stracke
Founder and Co-CEO of Chrono24

Stay healthy!

They‘re looking for guidance about what they should do andhow the market is reacting to this crisis. As a marketplaceBest,with over 475,000 watch listings and 9 million visitors every
month, we are in the unique position of being able to monitor

Tim Stracke, Founder and co-CEO of Chrono24

the situation as it develops and, therefore, offer someclarity on the matter.

For future updates send an email towatch-industry@chrono24.com

2Who We Are
Chrono24: The World‘s Watch Market
Chrono24 was founded in 2003 and has since become the world‘s leading online marketplace shaping
the online market for new and pre-owned luxury watches.
Every day, nearly 300 employees in Karlsruhe, Berlin, New York, and Hong Kong bring together
commercial dealers, private sellers, and watch enthusiasts from around the world.
TO CHRONO24

For future updates send an email towatch-industry@chrono24.com

3Who We Are
Our Database

Sessions on Chrono24 per Country• Over 470,000 watch listings from over 100 countries

ItalyRest of the World• Buyers from over 150 countries• Available in 22 languages

Germany• 30% growth year on year – 9 million unique visitors per month, €1.5
billion in annual transaction volume (2019)• Over 3,000 commercial dealers and 20,000 private
sellers at any given time
United States

United Kingdom
FranceNetherlands

For future updates send an email towatch-industry@chrono24.com

4About This Report
Key Findings• Global interest in luxury watches is recovering quickly and consistently. Our data shows that user behavior on our site has nearly
returned to pre-coronavirus levels.
• We see the same trends emerging in user behavior by country: Areas that saw steep declines are now experiencing remarkable
recoveries, albeit at different rates.
• Many users are looking to make a good deal: They‘re requesting larger price discounts than they did pre-crisis. However, the number ofsuccessful price negotiations is well below pre-COVID-19 levels. This is likely due to dealers defending their prices.
• Those interested in finance, investments, and tangible assets have been paying more attention to watches since the crisis started.
Chrono24 is receiving more sessions from customers interested in financial assets. This could indicate that more and more people areappreciating the investment value of luxury timepieces.
• What‘s more, the number of experienced Chrono24 users making purchases on our platform has increased compared to before thecrisis.
• Prices are more or less stable, a bit softer for some super iconic watches.

For future updates send an email towatch-industry@chrono24.com

5Global Sessions*

Global interest in luxury watches is recovering quickly and consistently.
Sessions (daily)* Sessions
A session is a visit to one of Chrono24‘s local sites
or whenever a user opens the Chrono24 app.

Feb 16, 2020

Mar 12, 2020

Release of our first report

Apr 14, 2020

Following a sharp dip in numbers of sessions (around -18% by mid-March) after the coronavirus began spreading outside of China(around -18% by mid-March), the number has quickly rebounded and is now only approx. 5% lower than pre-crisis levels.

For future updates send an email towatch-industry@chrono24.com

6Global Checkouts**Visitors to Chrono24 are initiating more transactions than before COVID-19.
Checkouts (daily)**Checkout
A „checkout“ is the start of a transaction on our platform.
Transactions using the Chrono24 Escrow Service can takeanywhere from 1 to 14 days to complete. Given the rapidchanges in daily use of Chrono24 since the start of thecoronavirus crisis, we consider checkouts a more accurate
indicator of the market‘s current state.

Feb 16, 2020

Mar 12, 2020

Release of our first report

At the beginning of the crisis (Wk 12), the number of checkouts had declined more sharply than the number of sessions compared topre-coronavirus levels (Wk 9), with checkouts down nearly 24%. Currently, the number of checkouts exceeds pre-virus levels (+14%).

For future updates send an email towatch-industry@chrono24.com

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Global Sales
The number of global sales has increased remarkably.
Sales (weekly)

Reasons why checkouts numbers are higher
than sales numbers:• Many new checkouts have not yet resulted incompleted sales• The current situation has led to increased
delivery times• Buyers are negotiating much more than they
did before the crisis (see slide 13)• Many dealers have reported stock issuesdue to limited supply

Week 1, 2019

Week 23, 2019

Week 39, 2020

Week 1, 2020

Release of our first report

Weekly sales were down by 20-30% compared to before the coronavirus (Wk 9). However, those numbers were already recovering by Wk 16 andare currently about 13% higher than they were pre-COVID-19.

For future updates send an email towatch-industry@chrono24.com

8Sessions & Checkouts on Country Level
User Behavior in Italy and Spain: From the Low Point to Now (Wk 16)
Italy Sessions (daily)

Italy Checkouts (daily)+80%+14%Feb 13, 2020

Mar 11, 2020

Apr 13, 2020

Spain Sessions (daily)

Feb 13, 2020

Mar 11, 2020

Apr 13, 2020

Spain Checkouts (daily)+12%

Feb 13, 2020

Italy experienced thesecond highest decrease in
the number of checkouts
compared to before thecoronavirus (-30%). Now up by
80%, Italy is 24% above previrus levels.

Mar 17, 2020

+61%

Apr 13, 2020

Feb 13, 2020

For future updates send an email towatch-industry@chrono24.com

Mar 17, 2020

Apr 13, 2020

9Sessions & Checkouts on Country Level
User Behavior in Germany and the UK: From the Low Point to Now (Wk 16)
Germany Sessions (daily)

Germany Checkouts (daily)+24%

Feb 13, 2020

Mar 17, 2020+50%

Apr 13, 2020

UK Sessions (daily)

Feb 13, 2020

Mar 17, 2020

Apr 13, 2020

UK Checkouts (daily)+30%

The UK saw some of the
sharpest declines in sessions
and checkouts (-21% and-46%, respectively), but has
since experienced the mostsignificant recovery.

+145%

Feb 13, 2020

Mar 17, 2020

Apr 13, 2020

Feb 13, 2020

For future updates send an email towatch-industry@chrono24.com

Mar 17, 2020

Apr 13, 2020

10Sessions & Checkouts on Country Level
User Behavior in the USA: From the Low Point to Now (Wk 16)
USA Sessions (daily)

USA Checkouts (daily)
+26%
+64%

Feb 13, 2020

Mar 17, 2020

Apr 13, 2020

Feb 13, 2020

Mar 17, 2020

Apr 13, 2020

After seeing roughly 20% decreases in both key performance indicators, the USA has recovered to pre-coronavirus levels.

For future updates send an email towatch-industry@chrono24.com

11Sessions & Checkouts on Country Level
User Behavior in Japan and Hong Kong: From the Low Point to Now (Wk 16)
Japan Sessions (daily)

Hong Kong Sessions (daily)+11%

Feb 13, 2020

Mar 11, 2020+14%

Apr 13, 2020

Jan 01, 2020

Jan 29, 2020

Apr 14, 2020

The number of sessions in Japan sank by 17% due to the coronavirus. The country is still 7% below pre-crisis levels.

For future updates send an email towatch-industry@chrono24.com

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The Global Number of Price Negotiations per Visit
Many users are looking to make a good deal and are negotiating much more than they did pre-crisis.
On the other hand, dealers appear to be defending their prices and are less willing to negotiate.
Median discount percentage requested (daily)

Jan 01, 2019

Aug 01, 2019

Price negotiation success rate (weekly)

CW 12, 2020

Jan 01, 2020

CW 12, 2020

Apr 01, 2020

Users are requesting price discounts that are 16% higher than pre-coronavirus levels. At the same time, more price negotiations are falling through.

For future updates send an email towatch-industry@chrono24.com

13

Chrono24 User Traits
Those interested in finance, investments, and tangible assets have been paying more attention to watches.
The change in the # of sessions based on user interest between Wk 9 (pre-coronavirus) and Wk 16 (today):Financial and investment services

Real Estate/Residential Properties

Autos & Vehicles/Motor Vehicles

0+5%+10%+15%+20%+25%+30%+35%

+40%

+45%

Reading example: There has been a 40% increase in the number of sessions users who have expressed an interest in finance andinvestments since the start of the coronavirus crisis (Wk 12).

For future updates send an email towatch-industry@chrono24.com

14Chrono24 Buyer Traits
Seasoned Chrono24 users are purchasing more watches than before the crisis.
Median length of time a user has been registered on Chrono24 at the time of purchaseThe share of purchases by experienced watch buyers has significantly grown compared to before COVID-19.

For future updates send an email towatch-industry@chrono24.com

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Financial Performance of Popular Watches
The performance of individual models varies; however, there have been no major changes.
Prices (3 months)

Since our previous report in late March: -7%

Since our previous report in late March: +9%

Since our previous report in late March: +6%
Source: Chrono24 Watch Collection

For future updates send an email towatch-industry@chrono24.com

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Financial Performance of Popular Watches
The performance of individual models varies; however, there have been no major changes.
Prices (3 months)

Since our previous report in late March: +14%

Since our previous report in late March: -5%

Since our previous report in late March: -2%
Source: Chrono24 Watch Collection

For future updates send an email towatch-industry@chrono24.com

17Thank you for your time!
Do you want future updates on thestate of the watch industry?
Please send an email to:watch-industry@chrono24.com

Comments? Please contact us:
watch-industry@chrono24.com

Follow Tim Stracke,
founder and co-CEOof Chrono24 on LinkedIn
www.linkedin.com/in/timstracke

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