Ok, what's up with Rolex?
This is a sincere question...and something that's been on my mind for a while now.
Let me set the record up front - this is not a slam on Rolex. Rolex makes an incredible watch, and there is no argument that their marketing and global brand recognition is second to none. I love the DateJust. The blue dial and polished bezel is a stunning combo. The Sub and GMTs are incredible. But here's my issue: waitlists and manufactured scarcity. Allow me three points:
- According to some online sources, Rolex did north of $4.5B in US sales in 2020, and sold somewhere around 1M watches. If that is realistic, then that does not speak to scarcity. A brand that produces 25 of a particular watch...that is scarcity. But if you're cranking out GMTs at the rate my daughters scroll through TikToks, there is no scarcity.
- Yes, the businessman in me understands supply and demand...but we're not talking about rare watches, precious metals, or complex complications. And yet people are calling their AD weekly asking the status of a $10K-ish Rolex. Not a Lange 1. Not a Vacheron Constantin Overseas World Time. Not a Portugieser Perpetual Calendar. An Explorer.
- And perhaps I'm being naive here. But, the Omega Aqua Terra proudly stands next to a DateJust in style and performance (especially performance)...and yet the Omega has no waitlist and is considerably cheaper. Is it just me? Or does the DJ outclass the AT so much that it demands a waitlist?
So, I'm all ears, and I have an open mind. Can someone please help me understand why (or better yet, how) the King of watches has created this paradigm for what is a 'relatively common' luxury timepiece? Please tell me that there's more to it than "Rolex is awesome".
And if it is nothing more than restricting supply to artificially drive prices up.....I get it?....but shame on you, Rolex.
Thanks! And Cheers, WatchFam
Watch nerd from the beginning.
i totally agree with what you write…Nice watches from rolex but not nice AD’s that is holding up all the stocks. Sad to say that rolex has become a “investment” “asset class” for the rich and watch people can’t get any… many would say there are other watch brands example omega’s but i mean certain models of rolex still does have it’s own character and charm. And why settle for something else when what you want is a rolex.. Well it is what it is now… I feel in general that not only rolex is doing this.. Hype pieces from AP/PP/VC are also not available too. Sad to say unless you are spending alot at a AD’s than all those hype piece will not be available unless source in the grey…
I could't agree more, maybe it is time hor this HYPE to end. We shuold watch at the new stars line Grand Seiko or appreciate more brands that are in the game for more than 100 years.
The Rolex mania is like the KFC in Japan for X-mas :D.
Marketing, marketing, marketing. Slow but constant and penertrating. Who does not want something what is not available? Something that "rich/VIP" people buy, something what is often connected to "posh", "first class", etc. etc. That is marketing, otherwise Rolex could easily open another 5 watch factories and satisfy "partially" the demand of next 10 years and earn even more money...
PS: One time I would like to have a Rolex too even if I know that on the market there are same or better watches at lower price (see how the marketing is working 😜).
I think a Rolex is a watch every watch guy deep in his heart wants. Even against better judgment.
For instance I love the Rolex Explorer 1. And one day I’ll have one.
Rolex is Rolex. if you ask the 99 % of normal Apple Watch people to name a watchbrand it’s going to be Seiko (reliable watch) Casio (cheap watch) but g-shocks are cool right? you drive s tank over it and it doesn’t break (it does by the way) and finaly Rolex (you must be rich!)
Everybody likes a compliment man! And a Rolex will do that for you. Is that really important? I say yes. Somebody liking your hobby is cool.
Marketing, marketing, marketing. Slow but constant and penertrating. Who does not want something what is not available? Something that "rich/VIP" people buy, something what is often connected to "posh", "first class", etc. etc. That is marketing, otherwise Rolex could easily open another 5 watch factories and satisfy "partially" the demand of next 10 years and earn even more money...
PS: One time I would like to have a Rolex too even if I know that on the market there are same or better watches at lower price (see how the marketing is working 😜).
Agree
i totally agree with what you write…Nice watches from rolex but not nice AD’s that is holding up all the stocks. Sad to say that rolex has become a “investment” “asset class” for the rich and watch people can’t get any… many would say there are other watch brands example omega’s but i mean certain models of rolex still does have it’s own character and charm. And why settle for something else when what you want is a rolex.. Well it is what it is now… I feel in general that not only rolex is doing this.. Hype pieces from AP/PP/VC are also not available too. Sad to say unless you are spending alot at a AD’s than all those hype piece will not be available unless source in the grey…
You but honestl…do you fancy a Rolex?
You but honestl…do you fancy a Rolex?
Yes i want but i can’t afford one now🙂
Most of us can’t. No shame there. Save a bit. Pick the one that you really like. Time is on your side!
I could't agree more, maybe it is time hor this HYPE to end. We shuold watch at the new stars line Grand Seiko or appreciate more brands that are in the game for more than 100 years.
The Rolex mania is like the KFC in Japan for X-mas :D.
with all respect a grand seiko is just a very expensive seiko. Yes it’s got it all but it will always be connected with very reliable value for money watch. That anyone can afford.
I honestly never got why Seiko never created a “Lexus“ like Toyota did.
Hello,
In my point of view the price increase is not an issue of Rolex. I think that the grey market is to blame here. There are more and more companies that flip watches nowadays. These people can formulate great relationships with Rolex ADs as they are able to buy multiple watches and flip them.
They create the demand and the price increase. Then the huge boom via instagram and youtube about Rolex, which again those people push, makes everybody to want a new Rolex.
Do I want a Hulk or an Explorer ? Ofcourse! I want them badly but I cannot rationalise the purchase when I compare the Hulk with an A. Lange & Söhne Lange 1, the Lange 1 will win every time (I do not have the budget for either though 😜).
Most of us can’t. No shame there. Save a bit. Pick the one that you really like. Time is on your side!
At this moment the time does not seem to be on our side because the prices are going very high 😠
with all respect a grand seiko is just a very expensive seiko. Yes it’s got it all but it will always be connected with very reliable value for money watch. That anyone can afford.
I honestly never got why Seiko never created a “Lexus“ like Toyota did.
They did it it Grand Seiko, the spring drive movment is one of a kind, you cant get that accuracy and 5 day power reserve in any other watch, as well as finishing. If you look at the movement of a Rolex, it is ugly, that is why they do not have glass case backs ;).
Is it wrong of me that the only Rolex that I truly desire is a Marconi?
Just like any wealth driven, money grubbing corporation, Rawleks actually believes they are better than everyone else and because of that they genuinely couldn't care less about providing fair availability, probably the opposite.
"restricting supply to artificially drive prices up" is exactly what they're doing knowingly and willingly, but by using the grey market dealers and their influence over AD's they get to wash their hands clean and reap the benefits.
Forgive me and my opinion. My apologies to all the fanbois for being a little less than cordial, but companies like this really grind my gears.
My two cents worth of an opinion..... Marketing, perceived image (you must be successful/rich to own one) possibly artificial scarcity to keep/increase the demand (we want the things we cant have even more)
Im not a fanboy or hater of the "Crown" I would like and GMT Master 2 pepsi on jubilee as much as the next oke but only at retail which is already kinda overpriced for what you actually get.
Well honestly I do mind. Grand Seiko is for me still a seiko. let’s stick with the car analog. Volkswagen created their flagship. The VW Phaeton. It did not do well in sales. Although it has better specs than a Mercedes or BMW. People apparently do not want to feel successful and buy 65.000 euro Volkswagen. Btw where do you come from?
That's fine if you want to spend your money on a name. I'm sure others will feel the same. I don't want to. I'd take a VW phaeton over a bmw any day and GS spring drive over a Rolex. Substance over show for me. Each to their own though.
Great response! I appreciate your thoughts…and I think you’re right!
I also do believe in certains aspects that AD’s do not want any flippers by controlling who they sell to. But apparently the grey market now is the one driving up the prices by buying up all available stocks
I think you’re right on all accounts!
Marketing, marketing, marketing. Slow but constant and penertrating. Who does not want something what is not available? Something that "rich/VIP" people buy, something what is often connected to "posh", "first class", etc. etc. That is marketing, otherwise Rolex could easily open another 5 watch factories and satisfy "partially" the demand of next 10 years and earn even more money...
PS: One time I would like to have a Rolex too even if I know that on the market there are same or better watches at lower price (see how the marketing is working 😜).
Great thoughts - I appreciate it!
Hello,
In my point of view the price increase is not an issue of Rolex. I think that the grey market is to blame here. There are more and more companies that flip watches nowadays. These people can formulate great relationships with Rolex ADs as they are able to buy multiple watches and flip them.
They create the demand and the price increase. Then the huge boom via instagram and youtube about Rolex, which again those people push, makes everybody to want a new Rolex.
Do I want a Hulk or an Explorer ? Ofcourse! I want them badly but I cannot rationalise the purchase when I compare the Hulk with an A. Lange & Söhne Lange 1, the Lange 1 will win every time (I do not have the budget for either though 😜).
Great points about social media and how they effec sales (Or hype). My IG feed is littered with more Rolex than anything else.
Totally agree with the Lange - gorgeous watches! And also out of my price range! 😂
As has been mentioned above, Rolex, AP, PP are becoming investment assets for the rich. In recent years when has a Rolex sold below its retail price on the grey or second hand market.
https://www.watchtime.com/featured/list-vs-ask-comparing-steel-rolex-prices-at-retail-to-prices-on-the-secondary-market/
Great thoughts and I appreciate you sharing the article! Very interesting!! A +13% average markup for an Explorer, why wouldn’t there be a super high demand?! Get a watch, wear it for a few months, then sell it and make $1000.
To that end, this is all clearly hype. Rolex watches are great, but significantly better than other high end brands.
A lot of great commentary here. After playing games with the AD and buying a couple of Rolexes, I am kind of over it. It doesn’t feel worth the hassle anymore. That’s why I chose to walk into an Omega dealer for my most recent purchase. As a watch collector, there are way to many other brands to explore.
I agree with you that logically Omega, in fact many Omega models, are actually better than Rolex. However, watch nuts like us are not always logical. I have an Omega Seamaster 300M - white model and I do not want a Rolex Sub. I am perfectly happy and content with my 300M, but there are other Rolex models that shut down the logical side of my brain and Omega nor any other brand will suffice.
I agree with you that logically Omega, in fact many Omega models, are actually better than Rolex. However, watch nuts like us are not always logical. I have an Omega Seamaster 300M - white model and I do not want a Rolex Sub. I am perfectly happy and content with my 300M, but there are other Rolex models that shut down the logical side of my brain and Omega nor any other brand will suffice.
Totally get that! I have the blue AquaTerra, which is stunning, but love the blue DJ. What Rolex model catches your eye?
PS, the 300M is super nice. Love that piece!
Totally get that! I have the blue AquaTerra, which is stunning, but love the blue DJ. What Rolex model catches your eye?
PS, the 300M is super nice. Love that piece!
I like the simplicity and symmetry of the 41 OP bright metallic blue. On some lists waiting for that one 🙏
Here's an article I recently wrote about why all the Rolex ADs are empty
https://searchluxxee.com/magazine/where-are-all-the-rolexes
#shamelessplug
This post made the hair stand up on the back of my neck. As I mentioned in another thread, I considered Rolex for an upcoming milestone birthday in July. Felt like the right time to buy one after owning other brands and avoiding the stigma over 6-7 years of collecting. Walked into an AD six months before hoping that the supply situation wasn’t as bad as I had read. Not a single watch in the case. My gut reaction was, “f that, I’m not feeding the beast”. Don’t know if I’ll ever buy one now, although bubbles always burst. Lots of other great brands to appreciate In the interim.
Love them or hate them, you have to respect Rolex for their patience in building their brand over decades and staying true to their values. Not many companies demonstrate that level of focus and don’t succumb to the whim of the moment. Consistency of purpose is a powerful brand builder, but it takes incredible patience. A lesson for all of us in business. Cheers.
Here's an article I recently wrote about why all the Rolex ADs are empty
https://searchluxxee.com/magazine/where-are-all-the-rolexes
#shamelessplug
Great article Celine! Very well written. I appreciate you sharing! I agree with many of your points in the article. How long have you been writing for Luxxee?
This post made the hair stand up on the back of my neck. As I mentioned in another thread, I considered Rolex for an upcoming milestone birthday in July. Felt like the right time to buy one after owning other brands and avoiding the stigma over 6-7 years of collecting. Walked into an AD six months before hoping that the supply situation wasn’t as bad as I had read. Not a single watch in the case. My gut reaction was, “f that, I’m not feeding the beast”. Don’t know if I’ll ever buy one now, although bubbles always burst. Lots of other great brands to appreciate In the interim.
Love them or hate them, you have to respect Rolex for their patience in building their brand over decades and staying true to their values. Not many companies demonstrate that level of focus and don’t succumb to the whim of the moment. Consistency of purpose is a powerful brand builder, but it takes incredible patience. A lesson for all of us in business. Cheers.
You make great points. I love the blue dialed DJ, but your phrase "not feeding the beast" is very appropriate for me at this point. There are so many wonderful timepieces in the same range. Good luck in your birthday milestone purchase! Please let me know what you decide to go with!
Cheers.
Great article Celine! Very well written. I appreciate you sharing! I agree with many of your points in the article. How long have you been writing for Luxxee?
Thank you @ManuallyWound, I appreciate the kind words! I've been writing for them for a couple of months now but I've been writing about watches for about 15 years now.