Is Rolex’s inventory ever going to get better?

[7enderbender]

Been on lists for a green dial 36mm DJ (you know, the boring “entry level model…) for many months now. I don’t think it’ll materialize any time soon if ever. And no, I will not buy tennis bracelets or gold watches first…
I don’t think they can increase production by much. Just like everyone else, they can’t hire qualified people.
And I suspect a good portion of what they produce goes into the third world countries for whatever reason. Europe and America sits there empty handed after having built these brands.

[dmash]

Originally Posted by 7enderbender

Been on lists for a green dial 36mm DJ (you know, the boring “entry level model…) for many months now. I don’t think it’ll materialize any time soon if ever. And no, I will not buy tennis bracelets or gold watches first…
I don’t think they can increase production by much. Just like everyone else, they can’t hire qualified people.
And I suspect a good portion of what they produce goes into the third world countries for whatever reason. Europe and America sits there empty handed after having built these brands.

Are you calling China, Japan and India 3rd world countries? You know, countries which are in the top 5 economies in the world and would make perfect sense to send luxury goods there? As those are all outside your ‘Europe and America’ pigeon hole

[7enderbender]

Originally Posted by dmash

Are you calling China, Japan and India 3rd world countries? You know, countries which are in the top 5 economies in the world and would make perfect sense to send luxury goods there? As those are all outside your ‘Europe and America’ pigeon hole

I would exclude Japan, otherwise yes.

[londondude]

Originally Posted by 7enderbender

Been on lists for a green dial 36mm DJ (you know, the boring “entry level model…) for many months now. I don’t think it’ll materialize any time soon if ever. And no, I will not buy tennis bracelets or gold watches first…
I don’t think they can increase production by much. Just like everyone else, they can’t hire qualified people.
And I suspect a good portion of what they produce goes into the third world countries for whatever reason. Europe and America sits there empty handed after having built these brands.

AD’s don’t know what they are going to receive, it all depends on how many people requested what you want in your area. Sometimes easier to get pieces are harder to come by if there’s more demand for those pieces where you are.

[dmash]

Originally Posted by 7enderbender

I would exclude Japan, otherwise yes.

Then I would state you don’t really understand economics/supply and demand with where the money is, if you’re claiming you don’t understand why they’d be receiving Rolex watches, and going as far as calling them (laughably) 3rd world countries lol. Those 3 countries alone surpass USA’s GDP, world is much bigger than the states in 2024. I say that as an American, like come on now.

[L_S_SHOE]

Doubt it.

I don’t think the scarcity is nearly as bad as ADs would have you believe. It probably once was, but not at the moment.

There are many people who don’t wait that long for what they want. Sometimes it’s because they have a great purchase history, but there are many folks without one.

ADs are just very selective about who they sell to.


Sent from my iPhone using Tapatalk

[Phil8352]

The scarcity is artificial. IMO Rolex saw what happened in 2021 with the douchebags on Instagram that made a fortune on crypto and had to put the kibosh on it. I don’t think they want “new money” flaunting their brand.

[Calatrava r]

I now think most ADs and the company want to continue the "scarcity" mode of marketing. The days of seeing inventory in the cases actually for sale are probably gone. I do hope I am wrong.

[watchwatcher]

Not in my lifetime. But, as you're a young man, perhaps during yours?

[7enderbender]

Originally Posted by dmash

Then I would state you don’t really understand economics/supply and demand with where the money is, if you’re claiming you don’t understand why they’d be receiving Rolex watches, and going as far as calling them (laughably) 3rd world countries lol. Those 3 countries alone surpass USA’s GDP, world is much bigger than the states in 2024. I say that as an American, like come on now.

I understand economics very well. Hence I know that economics and balance sheets isn’t everything. I understand why Rolex and Porsche and others send their products around the world. I understand how we got to a point where the hospitals I work for have a hard time sourcing a lot of medications right now (since - for short-sighted economic reasons - we have slowed to make ourselves dependent on production facilities in said third world countries). I also understand what happened with our recent threat of a port strike and why.

I’m all for free markets and individuals having access to whatever they want and letting the highest bidder win. But there are deeper problems here that will surface later. I think the Rolexes of this world are making a big mistake. But back to watches and the nicer things in life (if we can get them).

[EL Diablo]

Go Grey Market and be done with it.

[dmash]

Originally Posted by 7enderbender

I understand economics very well. Hence I know that economics and balance sheets isn’t everything. I understand why Rolex and Porsche and others send their products around the world. I understand how we got to a point where the hospitals I work for have a hard time sourcing a lot of medications right now (since - for short-sighted economic reasons - we have slowed to make ourselves dependent on production facilities in said third world countries). I also understand what happened with our recent threat of a port strike and why.

I’m all for free markets and individuals having access to whatever they want and letting the highest bidder win. But there are deeper problems here that will surface later. I think the Rolexes of this world are making a big mistake. But back to watches and the nicer things in life (if we can get them).

If you understood economics on a worldwide basis, and conduct biz as I do on a worldwide basis, you’d likely not make the statements you’re making and realize US has been on a downward trajectory for some years now with other countries taking over. Especially when it comes to factories. It makes total, perfect sense, Rolex (and other brands) is catering to these markets with their newly minted millionaires. I really don’t get how you think this is weird or doesn’t make sense, or is a mistake. Other than you just wanting to gatekeep luxury brands.

[misochew]

Originally Posted by brandrea

I think Rolex and other luxury brands straddle the line between making just enough product to satisfy demand while holding back enough to create scarcity

+1

Enzo Ferrari figured it out 70 years ago. …Build one less than what the market demands.

That being said, Rolex isn’t spending $1+ Billion on new factories to maintain the current situation which alienates too many potential customers. It has to bother them that Panda’s and Pepsi’s are immediately flipped for 2x. I’m assuming they want to satisfy market demand, and be able to raise the prices (increase profits) accordingly at the same time.

[dmash]

Originally Posted by misochew

+1. It has to bother them that Panda’s and Pepsi’s are immediately flipped for 2x.

Can you elaborate on this? As I don’t understand why people make this statement. ‘I know Rolex dislikes their products being incredibly hyped, talked about worldwide, advertised all over social media as the *it* thing, all for free’.

I actually think the opposite. They LOVE they’re flipped for 2x profit.

[misochew]

Originally Posted by dmash

Can you elaborate on this? As I don’t understand why people make this statement. ‘I know Rolex dislikes their products being incredibly hyped, talked about worldwide, advertised all over social media as the *it* thing, all for free’.

I actually think the opposite. They LOVE they’re flipped for 2x profit.

It’s basic supply and demand principles. If they loved that their products were being flipped for 2x, they would not be spending $1+ Billion on new factories.

they’re not getting the additional profit when they flip for 2x, someone else is

[dmash]

Originally Posted by misochew

It’s basic supply and demand principles. If they loved that their products were being flipped for 2x, they would not be spending $1+ Billion on new factories.

they’re not getting the additional profit when they flip for 2x, someone else is

We’ll see what they actually do with this. I don’t think its purpose will be to pump out more Pepsi and Daytona as a lot of people ‘wishfully’ think. Time will tell

[OTX]

Originally Posted by misochew

It’s basic supply and demand principles. If they loved that their products were being flipped for 2x, they would not be spending $1+ Billion on new factories.

they’re not getting the additional profit when they flip for 2x, someone else is

True they are not getting the extra profit but the hype generated makes them more money in the long run. I can’t count how many people I know settled for “lesser” models because they just wanted a Rolex because they heard Rolexes are hard to get. Also I know many who are building a profile with their AD trying to build a purchase history buying not so desirable models to be able to get the harder models down the road. Rolex is making their money regardless. The scarcity is helping Rolex big time.

[brandrea]

Originally Posted by misochew

+1

Enzo Ferrari figured it out 70 years ago. …Build one less than what the market demands.

That being said, Rolex isn’t spending $1+ Billion on new factories to maintain the current situation which alienates too many potential customers. It has to bother them that Panda’s and Pepsi’s are immediately flipped for 2x. I’m assuming they want to satisfy market demand, and be able to raise the prices (increase profits) accordingly at the same time.

Originally Posted by dmash

We’ll see what they actually do with this. I don’t think its purpose will be to pump out more Pepsi and Daytona as a lot of people ‘wishfully’ think. Time will tell

Much has been made about the new plant and the ability for Rolex to pump out more production …

Is it possible they simply built it to become more efficient and improve margins?

Perhaps a bit of both.

[misochew]

Originally Posted by dmash

We’ll see what they actually do with this. I don’t think its purpose will be to pump out more Pepsi and Daytona as a lot of people ‘wishfully’ think. Time will tell

I agree that I don’t think they’d flood market with their new capacity. I believe they will do something more like the aforementioned Enzo Ferrari strategy.

[misochew]

accidental re-post

[misochew]

Originally Posted by brandrea

Much has been made about the new plant and the ability for Rolex to pump out more production …

Is it possible they simply built it to become more efficient and improve margins?

Perhaps a bit of both.

Totally agree with what you're saying.

However, seeing the 3d renderings of the new factory (it's a campus) It can't all be just to increase productivity and margins of existing production.

...That's a lot of square footage they're adding.

Hodinkee link: https://www.hodinkee.com/articles/ro...le-switzerland

[Kingcobb]

Originally Posted by dmash

Then I would state you don’t really understand economics/supply and demand with where the money is, if you’re claiming you don’t understand why they’d be receiving Rolex watches, and going as far as calling them (laughably) 3rd world countries lol. Those 3 countries alone surpass USA’s GDP, world is much bigger than the states in 2024. I say that as an American, like come on now.

Technically speaking as China and India are still classified as developing nations (technical term used to replace 3rd world) and in fact Xi himself described China as such(only because he wants to keep the trade and economic benefits of the designation).....also based off the fact that China and India both have lower per capita GDP (The metric used to classify 3rd world or developing nations) than Mexico, Belarus, and libya it would technically be correct to call them 3rd world. China ranks 72nd at 21k a year per person in the world and India is 120 at 8k a year per person. It isn't simply economic rank.

By comparison

1 Luxembourg $142,214
2 Singapore $127,565
3 Ireland $126,905
4 Norway $114,899
5 Qatar $114,648
6 United Arab Emirates $87,729
7 Switzerland $83,598
8 United States $76,399
9 Denmark $74,005
10 Netherlands $69,577

[dmash]

Originally Posted by Kingcobb

Technically speaking as China and India are still classified as developing nations (technical term used to replace 3rd world) and in fact Xi himself described China as such(only because he wants to keep the trade and economic benefits of the designation).....also based off the fact that China and India both have lower per capita GDP (The metric used to classify 3rd world or developing nations) than Mexico, Belarus, and libya it would technically be correct to call them 3rd world. China ranks 72nd at 21k a year per person in the world and India is 120 at 8k a year per person. It isn't simply economic rank.

By comparison

1 Luxembourg $142,214
2 Singapore $127,565
3 Ireland $126,905
4 Norway $114,899
5 Qatar $114,648
6 United Arab Emirates $87,729
7 Switzerland $83,598
8 United States $76,399
9 Denmark $74,005
10 Netherlands $69,577

That’s so ridiculously skewed because it takes into account villagers and extreme impoverished areas. It’s absolutely astounding somebody wants to claim China is 3rd world, it’s spoken like somebody who’s never traveled anywhere.

Lol at somebody going to Shenzen or Chongqing etc and claiming it’s a 3rd world country, I can’t even This reminds me of when I told somebody about Bangkok and they asked if they had internet. Astounding

[Barada7]

Rolex would like anyone who wants and can afford a Datejust to be able to walk in and buy a Datejust. As for the BLROs and Daytonas? The scarcity strategy works.

[Sublovin]

I think a lot of people are missing the fact that the preowned game is much more fun. I feel the same way with cars. It’s more fun to hunt on the used market and negotiate the best deal you can. Way more fun.

[Gearjockey]

What a fun thread!

We need a separate sub-forum so we may keep abreast of geopolitical economic issues.

[Jb1264]

This is the new normal

Hope I’m wrong.