Luxury watches have become the main goods exchanged for cash in Beijing pawnshops in recent years - and business is booming.

At Baoruitong Pawn Shop, which is one of the oldest pawnshops in Beijing, watches on sale in the pawnshop for between 200,000 and 400,000 yuan, represent about 30 percent of its personal goods business, according to Xie Yifan, the director of civilian goods.

"The increase in luxury watches reflects the economic growth of society," Xie said.

The modern pawnshop has now become a financing channel for owners of small and medium enterprises, Xie added.

Xie said that earlier this month, a client walked into the pawnshop near the North Third Ring Road with a bag of seven watches, all of which were models from the world's top 10 watch brands. The client wanted to pawn them for 250,000 yuan. Two watches from his collection were enough to get him the money he wanted for his business.

In Huaxia Pawnshop, which is the first pawnshop in Beijing with shareholders, watches represent 30 percent of the personal goods business.

"In the last five years, the watch business has increased almost every day," said Wang Shulin, a senior technician with Huaxia Pawnshop. "I see luxury watches every day and even several a day recently."

Wang said that luxury watches started to show up in pawnshops in Beijing in the mid-'90s, and he saw his first Piaget watch in 1996. Since 2000, the pawning of watches has increased dramatically, he added.

Most clients redeem their watches, but a few remain unredeemed and become opportunities for consumers.

Shopping in pawnshops has become a new trend and watches are now the main goods targeted.

If they are lucky, people can buy a limited edition or a pedigree watch at a very low price, often, about half the original price.

"I heard from some friends that buying watches in pawnshops is more cost-efficient than exclusive stores," said a customer surnamed Yang.

He said that not only can a buyer get a favorable price at pawnshops, but the quality of the watches is guaranteed.

China Daily

(China Daily 09/15/2010 page)