Technology Proves Luxury Watches as Assets

Luxury watches and high jewelry are increasingly viewed not merely as consumer goods but as tangible assets. With limited supply and consistent price increases, the value of these items is often preserved or even enhanced in the secondary market, making the act of purchasing a watch more akin to acquiring an asset.

However, unlike cars, watches lack a unique identification system. This means there is no straightforward way to prove ownership, history, or authenticity. The market for watches, which seeks recognition as an asset, currently lacks the infrastructure to validate their value. This gap has long been a challenge for all of us.

I believe technology is the key to bridging this gap. For a long time, determining the authenticity and market value of watches has relied on the experience and intuition of a small number of experts, making it a complex issue to resolve with data. Since last year, we have been working to address this problem using artificial intelligence (AI). Our image recognition technology can identify details such as brand, model, dial color, and bezel type from just a single photo of a watch, providing real-time market prices and product information. Given that even the same model can have hundreds of variations based on dial color or component size, this technology requires extensive data accumulation and meticulous classification.

We are also working to change the very interaction with consumers, moving beyond mere information provision. Our conversational AI agent understands the context of discussions, recommending models that fit users' budgets and preferences while guiding them through market prices, available products, and actual wearing images in a natural dialogue. This technology is gradually alleviating the information asymmetry that has forced watch buyers to rely on experts due to a lack of information.

If overcoming information asymmetry is the first step in transactions, the next step is managing and growing the assets acquired through these transactions. At this stage, data transparency is crucial. We are developing a 'market information service' that reflects transaction data in real-time, allowing users to transparently verify the market value of each watch, similar to stocks or real estate. Additionally, we are introducing a 'subscription management service' that continuously manages the condition and value of watches during ownership, treating them as part of a portfolio rather than a one-time transaction.

Furthermore, we have recently implemented a 'digital passport' that records and manages the narrative of each watch, including ownership transfer records and comprehensive maintenance history. This ensures that the journey of each watch is transparently documented. Once this concept is established, watches will truly become recognized assets. Watches with transparent ownership histories will be able to command fair value in future transactions, and the longer they are held, the more trust they will accumulate. We expect the digital passport to become a central component of the luxury watch trading ecosystem, rather than just an added feature.

From image recognition technology to conversational AI, market information, asset management services, and digital passports, these initiatives are all aimed at creating a comprehensive ecosystem around luxury watches. Within this ecosystem, everyone should be able to trade safely, conveniently, and with confidence. Those who hesitated due to a lack of information or needed to see a watch in person to feel secure will be able to buy and sell freely.

This trend is not limited to the domestic market. Transactions among international users, including those in the U.S., U.K., Hong Kong, and Japan, are rapidly increasing, suggesting that this ecosystem, driven by AI and asset management technology, will thrive in the global market. Our goal is to provide the same level of information, sentiment, and care services without barriers of language or region. Ultimately, proving trust through technology is the direction the luxury watch market must pursue.