L2 analyzed the presence of 26 Watch brands across four major gray market sites Chrono24, Jomashop, Ashford, and Authentic Watches, and found that the average discount on a luxury watch on these sites is 28% to 49%. That translates to a large price gap, especially for expensive watches, which is a threat to luxury brands in an economy where consumers are spending more on experiences and less on physical goods.

To make matters worse, these sites are far easier to find than brand sites. L2’s report on the Watches Gray Market reveals that these unauthorized distributors appear in half of branded search results, while brand sites appear in 13% to 16%. Further appealing to watch enthusiasts, these gray market sites account for an even larger portion of search results when the model term is typed alongside the brand name.

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