Spoiler Alert: 860 Luxury Watches Are Missing
I'm doing that thing they do in films where you get shown a snippet of ending first, and then the screen fades to black: "Three Weeks Earlier"
The Precursor
I have four new watches on offer this week, but before I dive into them, I want to share the story of Tokematch, Japan’s premier peer-to-peer luxury watch rental service. The concept of renting watches will sound unusual, so I’ll try to provide some cultural context regarding Japan’s unique approach to the sharing economy.
The Sharing Economy
Over the last decade, the Sharing Economy has been widely embraced, with companies like Airbnb and Uber offering their services to hundreds of millions of users worldwide. While many in the West participate in this economy, the range of companies and the services they offer is relatively narrow.
On a macro level, Japan’s sharing economy is currently underdeveloped. Services like Uber exist in Japan, but due to a mix of red tape and cultural differences, their market penetration is noticeably shallow - Uber’s 2023 North American revenue of $22 billion contrasts sharply with Japan’s $0.7 billion. Despite this slower uptake, the variety of sharing economy services available is not only broader in Japan but also significantly more unique.
Japan’s rental market seems more willing to take risks. When the end goal isn’t shareholder-driven global domination, the financial barrier to entry is much lower, resulting in local, often peer-to-peer, rental services popping up across the country. There are plenty of easy-to-understand services, such as:
Tools. Tool rentals exist in the West, but they tend to focus on power tools for trade professionals. In Japan, for just $2.50, you can rent a cordless drill and hammers for three days—perfect for small DIY jobs at home.
Wedding Dresses. Entire Japanese boutiques are dedicated to renting dresses rather than selling them. It’s hard to envision a way to convince the price-gouging Western wedding market to adopt a rental business model, but it would significantly reduce wedding costs. In Japan, wedding dress rental prices start at $180.
Suitcases. There are few things more disappointing to spend money on than suitcases. They’re up there with replacing a broken air conditioner, or renewing that insurance policy you’ve never needed. Good suitcases are surprisingly expensive to buy new, so the fact you can rent high-quality suitcases for $3 per day feels positively utopian.
The rental examples I’ve provided haven’t been too abstract - yet. Japan, to its credit, marches to the beat of its own drum, resulting in rental services like:
Wedding Guests. Too many guests on the bride’s side? No problem, just rent guests for the groom’s side! At $70 per person for the whole day, it’s a bargain. These aren’t just wallflowers awkwardly standing in the corner - these are seasoned wedding guest experts who will regale real, and unwitting, guests with funny stories about how you met or that time you drank too much at the office party.
Grandmothers. The cost varies based on quality, but the base price for a Grandma typically starts at $100 per day. One of the most popular aspects of the service is the home-cooked meals they provide. Knowing that not all grandmothers are blessed with the same culinary skills, make sure you read the reviews carefully, as sometimes the right grandmother can be reassuringly expensive.
Social Media Stand-ins. Not getting the likes you crave on social media? Have you considered hiring attractive people to pose as your friends and take you to envy-inducing places? These agencies make no guarantees that your social media standing will improve, but reviews suggest they can be effective.
Some examples are more immediately understandable than others, but I’m sure they all have their merits. With context provided, let’s talking about renting watches.
Renting Watches Gone Wrong
Tokematch was an Osaka-based company that gave luxury watch owners the opportunity to rent out their watches. The idea was simple: you send your watch to Tokematch, they assess, document, and value it, and then it goes onto the site for rent, one month at a time. Even if your watch isn't actively rented, you still receive a monthly payment. Tokematch fully insured each watch, providing full coverage in case of loss, theft, or damage. As a luxury watch owner, what’s the downside? (this is called foreshadowing)
Since its launch in 2021, Tokematch has been gaining traction, but on 31 January 2024, you visit site to check the status of the watch you sent them for assessment, only to be greeted with a peculiar message:
Regretfully, Tokematch announces it is closing down over the next few months.
“Oh, that’s a shame”, you think to yourself, “but with the ample warning given, rentals can be unwound easily and the watches will be back in their original owner’s hands before you know it.”
It’s now March 2024, and the police have just issued an arrest warrant for the owner of Tokematch. This can’t be good. I think this is that foreshadowing we talked about earlier. The owner, Fukuhara Takazumi, is accused of pawning a $4,500 Rolex that was being rented through his site. As time passes, it becomes clear that Fukuhara has left the country, fleeing to Dubai.
With no extradition order in place, it seems Fukuhara can remain in Dubai, much to the dismay of watch owners. According to police reports, 860 watches, valued at $13 million in total, have gone missing. While not all of the watches were pocketed by Fukuhara, it’s safe to assume a significant number were.
One owner, described as a “female office worker in her 40s,” had entrusted Tokematch with 14 watches, but only one has been recovered. The value of the missing 13 watches is estimated at $110,000 - a bitter pill to swallow. It has since emerged that Fukuhara fled Japan the very day he announced Tokematch’s closure and had applied for a Dubai residence visa months in advance. This confirms the scam had been in the works for at least six months.
Many owners have reportedly found their watches listed for sale online, matching the serial numbers of the ones they sent to Tokematch. However, since most of these sales took place overseas, the police are largely powerless to intervene.
While it’s easy to blame the owners for not spotting the red flags, it’s crucial to understand how prevalent and unique Japan’s peer-to-peer sharing culture is. You might assume that Tokematch has killed watch renting in Japan forever, but you’d be wrong.
Renting Watch Gone Right
Karitoke is a Japanese luxury watch rental service - without the secret ingredient of fraud. The key difference is that you rent watches directly from Karitoke, and these watches aren’t leased to the company by individuals. This has made Karitoke infinitely more sustainable and trustworthy, which might explain why they’ve been in the watch rental business for seven years and now boast 60,000 members. As an aside, I bet their PR team worked 100-hour weeks after the Tokematch fallout!
While it may seem like I’ve just cashed my Karitoke sponsorship cheque, I wanted to bring them up because their pricing structure is worth looking at. There are eight pricing tiers, each offering increasingly prestigious watches that you can borrow for a month at a time. Here’s a quick look at the costs involved:
The prices listed allow you to choose one watch within your tier each month. You can also pay $7 to swap to a new watch outside of your regular schedule, which seems pretty reasonable.
I’ve never been more on the fence about whether or not I like an idea. The negatives are obvious:
Like renting versus buying a house: You’re burning money each month if you don’t own the watch.
Slippery pricing: For someone as weak-willed as me, the pricing is a trap. Once I’m in for $60 per month, why not upgrade to $90? And this “logic” continues until I’m dripping in Vacherons for $330 a month.
Risk of fees: If you break a watch you own you can stick it in a drawer and get it fixed when you can afford it. If you break a leased watch, there’s no hanging around - you have to pay to fix it immediately.
But the positives are equally clear:
Not investments: Sometimes you’re burning money by owning a watch.
A new watch every month: This needs no explanation for my fellow watch addicts reading this newsletter.
Try before you buy: It gives you the opportunity to test a watch you’re considering purchasing.
Challenge your assumptions: Think Hublot is ugly? Have you ever worn one for an extended period, or are you just assuming it’s not for you? Now you can cast your prejudices aside and give it the chance it deserves. Then, after a few days, you can pay $7 to swap it for a proper watch because, let’s be honest, you’re not a Hublot-wearing weirdo.
I’ve scoured their website so you don’t have to, and I’ll summarise the answers to the questions you probably have. No, the watches aren’t insured for theft or loss, so you’ll need to arrange your own insurance or be prepared to cover the full cost of the watch. Yes, the watches are covered for general wear and tear (batteries dying, hairline scratches, leather strap damage), but if you drop the watch and something breaks, you’ll be liable. However, for $8 per month, you can reduce the cost of major repairs to just 10% of the total.
All in all, pretty reasonable. But am I still on the fence? I love the idea of wearing watches outside my comfort zone (no, not you Hublot - sit down), without committing to buying them. Yet I hate the thought that I’d eventually work my way up to one of the executive packages, spending the equivalent of a pre-owned Grand Seiko each year on renting watches. Shouldn’t I just buy the GS instead? Is that actually the better choice? Luckily, since I’m not in Japan year-round, it will never make sense for me to sign up, so at least I don’t have to make that decision.
If you lived here, would you do it? Please get in touch as I’m genuinely curious. Please leave a comment, send me an email or message me on Instagram.
Credor “Pacific” GCBG973 / 4S77-00B0
Not your typical looking GMT watch. The GCBG973 was released in 2003 and features an automatic 4S “Hi-Beat” movement, which should be familiar to most readers as the neo-vintage Seiko movement of choice. In the early 1990s, Seiko sought to recapture the high precision and excellence of their 1970s Chronometer Certified 52 calibre. Delighted with the results of the 4S, Seiko committed to producing 200,000 units - their largest single calibre production run to date.
Thanks to its ambitious production volume and versatile design (with 13 variants in total), the 4S movement found its way into various Seiko models in the '90s and early 2000s - many of which are now considered iconic by collectors. These include watches like the SCVF and LHAM Alpinists, the SAGN Brightz, and the GCBG, GCBT, and GBAY Credors.
The GCBG973’s second crown allows you to adjust the hour hand independently, without affecting the minute and second hands or the 24-hour subdial. This gives the watch a subtle, on-the-fly GMT functionality. Additionally, the 4S77 movement offers a 50-hour power reserve, a retrograde day function, and a circular date pointer. It’s a lot of watch for the current price, especially considering originally retailed in Japan at ¥320,000 in 2003 (around $3,100 USD at the time, not adjusted for inflation).
As discussed in a previous newsletter, the Moon holds deep significance in Japan’s identity, but it faces stiff competition from the Sea for the top spot. The GCBG973 embraces a nautical theme, paying homage to Japan’s maritime history. You might notice the subtle wave pattern in the centre of the dial, but the standout detail is the intricately crafted ship that proudly adorns the caseback.
The 39mm wide tonneau case is as universally sized as a watch can be - you’d need particularly large or small wrists for this shape not to suit you. It also comes with its original leather strap and deployant buckle.
The watch is available to buy on our website now.
In very good condition. There are very hard to notice hairlines on the bezel, and two scratches on the caseback. No box or papers.
Seiko SDGC015 “Star Wars” C-3P0: Limited Edition (600)
An unexpectedly unique crossover. Produced in 2012 for the 35th Anniversary of Star Wars, Seiko made six Limited Edition Star Wars themed watches. Only 600 of C-3PO were made, and the watch features some great nods to the legendary Goldenrod:
The side of the case is etched with "C-3PO" in Aurebesh, while the opposite side bears the Rebel Alliance emblem on the crown. The caseback speaks for itself, but a standout detail is the power reserve indicator, which has been cleverly designed to resemble C-3PO’s golden body.
Beyond the design, this watch holds its own as a solid timepiece. Powered by a 6R21, 29-jewel, 28,800bph "Hi-Beat" movement, it features a power reserve indicator, along with a circular day and date display. It’s all housed in a black PVD stainless steel case, topped with a sapphire crystal treated with Seiko’s "Super Clear Coating" for enhanced visibility.
The watch is currently fitted with a comfortable leather strap, as the original bracelet is missing a few links. I will include both the leather strap and the metal bracelet, but please note that the bracelet will only fit wrists up to 6.5 inches.
The watch is available to buy on our website now.
Just been serviced by Seiko in Japan. However, there is mild oxidation visible on the hands and metallic parts of the dial. Please check the photos and read the full report on the website.
Credor 7771-5040 “His & Hers”
A unique retirement gift from Kansai Power Company in Japan. Initially, I was puzzled as to why a company would present a His & Hers pair to a retiring employee - why not just give a singular watch? So I asked a Japanese friend to help explain the nuance. He told me that, in the '80s and '90s, it wasn’t uncommon for companies to give retirement gifts to both the employee and their spouse. The idea being that the spouse has patiently “shared” their partner with the company for all those years! It’s a cute idea, but there’s an certain darkness to being reminded that you gave your best years to your job.
You know it’s the original box because the Credor logo inside has been replaced with Kansai’s own, and it’s accompanied by small text in the corner that reads: “Retirement Commemoration from Kansai Electric Power Co., Inc.”
This 1994 Credor 7771-5040 is a vintage stainless steel, ultra-thin dress watch with applied baton indices and a contrasting XII at the 12 o'clock position. Measuring just over 4.0mm thick and paired with an integrated woven mesh bracelet, this watch is designed to slip effortlessly under any cuff. It has the hallmark vintage Credor style of a perfect sunburst dial, and onyx crown.
The watch is available to buy on our website now.
It is in unworn, near-mint condition, and comes with the full box and papers.
Citizen La Mer 4380-432096
If I had a dollar for every watch that referenced Japan’s love of the sea in this newsletter, I’d have two dollars. Not a lot, but a curious coincidence considering I’ve only covered four watches today.
This Citizen "La Mer" (French for "The Sea") Cosmosign was a founding member of Citizen’s "Club-la-Mer", which later evolved into the Campanola Cosmosigns. But why is a Cosmosign watch called The Sea? To pay tribute to the stars that guided ancient Japanese sailors.
Produced in 1986, this was the world’s first scientifically accurate star watch. Citizen was so confident in its precision that it originally came with a loupe, allowing you to examine every detail closely.
The planisphere star chart rotates throughout the day, ensuring the watch reflects the real-time positions of the stars. It also has the handy feature of showing you the times for sunrise and sunset each day. But in practical terms, it’s just a great looking and uniquely vintage piece.
In line with the dial text, I’m legally obliged to only sell this watch to “exciting professionals”, so don’t waste my time and yours if that doesn’t apply to you. I reserve the right to ask for proof of not only how professional you are, but also how exciting.
The watch is available to buy on our website now.
In great condition. The hour hand is slightly stained, but overall you’d never know the watch was from 1986. No box or papers.
Don’t forget to follow my Instagram to see all of the watches above in full cinematic glory.