Misconceptions Rolex CPO and the Gray Market
As I am seeing a lot of posts about the Rolex CPO program, I thought I'd help clear up some of the misconceptions.
"This will hurt gray market dealers": The gray market is the distribution of goods outside the official channels authorized by the manufacturer. The gray market primarily refers to the trading of NEW watches that are sold through unauthorized (or gray market dealers). These gray market dealers usually source their watches through a network of "disloyal" authorized dealers who offload their overstock to them without the manufacturer's permission. Rolex' CPO program, therefore, does not directly address gray market issues, although they (and other manufacturers) have been working to curtail the gray market through other means for quite some time. The CPO program may, of course, have indirect effects on the gray market, but it is not the primary target.
Instead, Rolex' move is an attack on the secondary, pre-owned, or used market, meaning watches that have already been privately owned (even if it's just for a short time). Hence the limitation that Rolex CPO watches must be at least 3 years old. The competition, therefore, is not primarily gray dealers, but rather pre-owned specialists like Watchfinder, Watchbox, Chronext, Crown & Caliber or platforms like Chrono24 and eBay.
Any thoughts?
Passionate watch dude working in the industry. Always trying to hustle myself to the next piece.
Or is it an attack on fakes?
If they succeed in controlling the official channel AND the secondary market, how likely would it be for fakes to mostly disappear if the only way to get a Rolex is FROM Rolex?