Luxury timepieces are big business. They represent a massive revenue stream for the luxury goods sector. But so do fake timepieces. And that’s the never ending dilemma to resolve, say retailers.
Rolex, Patek Philippe, and Richard Mille top the list of most ‘faked’ watches. Runners up include Omega, and Cartier. But all status-con timepieces have their counterfeit for sale somewhere.
If you’re in Hong Kong, you may find street vendors discretely hawking fake watches in open-air markets. Some vendors post a look-out man waiting for tourists to walk by – and usher them into an alley behind normal storefronts.
But you don’t have to leave the country. Canal Street in New York City is the epicenter of designer knock-offs. There are even guide pamphlets indicating where the best vendors are, selling faux designer handbags, sunglasses and yes, watches. This sub-culture is a cash only business, of course.
With somewhere over 23 million fake watches in circulation currently throughout the US, counterfeit goods are definitely on the uptick.
They’re Everywhere
Most metropolitan areas are hubs for fake watches – mainly because the residents are more social and care about appearances – often seeking out status conscious brands to flaunt. So while they are ‘everywhere’, the top three destinations of late to find fake luxury watches are,
- New York (20.22%)
- Los Angeles (14.75%)
- Chicago (11.48%)
Fake By the Numbers
Nearly a quarter of Americans (24%) have fallen victim to unknowingly purchasing counterfeit items. Specifically, 19% of all counterfeit goods are fake watches.
Here’s an eye opener: Almost one in ten Americans in total have been conned into buying a fake watch. Rolex, the most frequently counterfeited watch, reports the pre-owned luxury watch purveyor Watchfinder & Co.
Where do fakes Originate?
Those keeping tabs, like Swiss Customs agents for example, cite that 40% of counterfeit watches originate in mainland China. But counterfeits are produced elsewhere like Turkey and even in the US. The Swiss Customs Service is obliged to confiscate such goods and destroy them to prevent their re-sale. The same goes for the US when they uncover these bogus luxuries.
These goods arrive in the US via different entry points, specifically thought to have less observant patrolling. But these locations are now savvy to such contraband. In July of 2023, US Customs and Border Patrol in Kentucky intercepted what they said was millions of dollars’ worth of counterfeit designer watches. The confiscations included Rolex, Cartier, and Omega labels.
The Numbers Grow
“If the 130 watches contained in nine shipments from Hong Kong were real,” CNN revealed, “they would have a suggested retail price of over $4.24 million,” according to the customs agency.
It was not an isolated incident either. In 2022, the CBP seized $8 million worth of illegal goods. CNN also reports, “During the previous fiscal year, the agency said it captured 153,810 counterfeit watches that would have had an estimated value of over $596 million if they were genuine.” The figures are staggering, and these stories are repeated in other cities across the country – like Los Angeles, and even Indianapolis.
Dividing up Counterfeits
According to Watchfinder, “Per every Swiss watch made, the fake watch industry is putting out two, totaling 40m fake watches made every year – double the Swiss production. That’s enough to pull in a whopping $1b in profit.”
One might see this fake watch market as being two-tiered. The lower quality timepieces are usually sold for equally low prices. The core customer for that is the willing buyer who knows what they are getting on the cheap.
But there’s another sector to this nefarious business. Well made fake luxury watches look like the real deal – they have the heft of a true luxury timepiece. Their mechanisms are close duplicates to those in the authentic versions. And they cost a lot. The customer is more frequently an unsuspecting buyer in this scenario.
“The most accurate fakes are still far from cheap,” Watchfinder insists, “costing many hundreds and sometimes even thousands of dollars.” But there’s an important difference between those and the real McCoy. All the production money is spent on the outside of the watch. “The most complex part requiring the greatest skilled labor to make, the movement, is still a long way off [from} the originals.”
Dallas based Time Delay provides pre-owned Rolex watches at wholesale to members of the trade. Their unique vantage point provides an up-close observation of trends within the counterfeit business. Robert Loving, VP sales for pre-owned explains, “Many jewelers send us watches for repair or purchase and they or their clients have no idea they are not original.” Some of the counterfeits were pretty convincing. “The first good fake was back in 2016 when a regular client showed me the watch at the Atlanta Show. He said his ‘Rolex’ guy checked it out and I made an offer.” It seemed straightforward but proved to be a fake. “He sent the watch to us in a couple of weeks and I sent a check promptly. From that day, we have had our staff of watchmakers open each watch before I ever see them for purchase.”
Matthew Green, president of Boca Raton based Matthew Green Jewelers believes there are more fake watches now than ever. It’s very scary when these counterfeit watch makers also create the expected brand paraphernalia, he points out. “They make fake boxes and booklets. Of course they can’t duplicate things exactly, but scary-close,” he confirms.
But he also thinks public awareness is on the rise thanks in part to social media.
“Some of these companies have machines that make fake warranty cards with serial numbers on them and fake hang tags. These items are 99% perfect but there are little teeny tiny differences that you can tell what’s a clone, fake or counterfeit.”
“When it comes to which is the worst fake watch – it really depends,” Green confides. “You mean fake like OMG that is so fake, so easy to tell, or do you mean one an expert would be duped [into believing] it’s real after holding it in their hands and looking at it with a loupe?”
The whole gamut is out there, Green says. “Datejust 2 in steel, Milgauss, GMT ceramic bezel models and Daytona Panda and Submariners are cloned the most,” according to this expert.
Luxury pre-owned watch wholesaler, owner of Beloved Watch, sees more aftermarket components than “completely fake watches” in his business, he tells us. “For instance, it may be an original case and movement with an aftermarket bracelet,” he finds. Many times sellers do not know an original bracelet from an aftermarket, Mastrippolito says. “A lot of what I do is help stores authenticate before purchasing over-the-counter trades.” He believes, “if you have a passionate watch dealer and collector on your team, it shouldn’t be a problem.”
The problem is complex, merchants agree. So, is there anything that can be done to reduce the proliferation of these interlopers into the legitimate luxury timepiece sector?
Time Delay’s Loving says “I’m not sure there is a fix to this problem. The fakes are getting better and better.” There are clues to recognizing a well done counterfeit timepiece, Loving offers. “The tell-tale sign of spotting a fake often lies down deep in the movement where only a highly trained technician can spot them.”
Just Don’t Buy
What about curbing the importation of fakes before they reach the US? “The industry is at a bit of a loss as to what to do,” claims Watchfinder. “It can’t stop the production, it can’t stop the purchase or the shipment, it can try to stop the import – although many fake watches arrive in the country disguised within other products – but ultimately it’s a bit stuck.”
