NFT's will Soon Revolutionize the High-End Watch Industry

I recently had this thought that has stuck with me on how I think NFTs could potentially change the entire watch industry. I believe it could ultimately create additional sources of income, drive consumer demand, and eliminate all counterfeited watches that are in circulation around the world. Let me break it down using Rolex as an example.

Say Rolex wants to start exploring the endless capabilities of blockchain and begins issuing an NFT with each newly produced watch starting in 2022. Meaning whoever walks into a Rolex store that buys a fresh new watch, will receive a non-fungible token that is minted and registered using the serial number for that specific watch. Overtime as more watches with NFTs are in circulation, the fake ones for that same collection will begin to diminish and become left in the hands of the scam artists. It's simple, reason is because no one would ever want to buy that same used watch when they know it should come with an NFT. This would begin to isolate all consumer share on used watches to be push towards the ones containing an NFT and that are real! If it didn't have one, then it would automatically become a red flag with suspicion that it was a counterfeit.

Rolex is the number one watch supplier in the world to contain the highest number of counterfeited watches. Statistics show that roughly a million fake watches annually are flushed into the consumer hands. In retrospect it’s roughly around $5B worth of sales a year that Rolex could capture. It’s a huge problem for Rolex that has only increased since covid and just imagine if they were able to prevent this from happening.

So you may say what about the watches produced before 2022? Okay well all Rolex has to do is establish a service to allow you to send in your watch, they confirm its authenticity, and in return for a “fee” you receive an NFT. This would again ultimately increase the overall value of those specific watch collections. Let me break it down for you, say you have a rare Rolex watch that was produced in the early 1900s that you were wanting to sell to an individual at its current market value of $100k. You decide to jump the gun on getting it registered with an NFT and at the time only 5% of supply for that model contained an NFT. You could then just turn around and sell it for a premium, maybe $125k. This would happen quickly because buyers will naturally be incentivized to pay more because it’s one of the few that's registered and includes 100% certainty of being real.

We won’t even get into the fact that Rolex could also implement a royalty into its minted NFTs creating a never-ending source of income for generations every time one of its watches is resold on the aftermarket. Keep in mind that Rolex doesn’t just produce endless amounts of watches based on consumer demand. Supply is capped and it’s part of the reason they hold their value so well and considered an investment. It’s also not their choice, reason is it takes time, skill, and a qualified individual to produce one.

Let me know what you guys think and just remember - constant supply plus rising demand with 100% total market share equals exponential returns!