This helped.

As someone unfamiliar with the luxury space, Adrian helped me understand the situation and how it affects the market as a whole. Worth a watch.

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Adrian is one of a very few u tube watch guys that from time to time make sense of a often hidden underbelly of the watch business. I’m not saying I agree with his analysis but it is thought provoking. At this point nothing out of Rolex comes as a big surprise. Looks to me that they can do whatever they want in the trade.

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Vertical integration in this situation makes sense. The buyer experience of buying a Rolex is abysmal and could be drastically improved if brought in house.

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The concept of Rolex making money even when their rivals do well is basically a checkmate. Either the competition cedes and allows Rolex to dominate, or they push harder to grow which in turn will also benefit Rolex.