This is why Rolex will always be king

[Rollieo]

Article that primarily covers Swatch Group, but serves as the reminder why Rolex will always be king.

“ The problem is that the industry’s environment has since then dramatically changed with the high-end growing at a substantially faster pace than the middle-range and the entry price levels. This is by no means surprising or new phenomena, but an ongoing shift of the market since at least one decade. The two key words now are polarization and premiumisation, just similar to what is happening in any other luxury category. The high-end brands dominate the market, because they’re helped by a virtuous dynamic in which the higher you go in terms of prices, the more margin you are making.”

“ CEO of the group Nick Hayek Jr. was told that the first and premiere goal of the Swatch Group is to have its industrial capacities running at full speed… In other words, the production pushes the market and not vice-versa, which to me is a very strange way to look at things the primary objective is that everyone has work to do.”

No one is at the scale of Rolex when it comes to watches. They’re the only 800lb gorilla in the industry just dominating in the luxury segment, while everyone else (save the very high end brands like Patek but are a tiny fraction of volume compared to Rolex) is getting crushed and getting pushed lower down the luxury segment.

https://revolutionwatch.com/swatch-group-business-news/