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#61 |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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It would make more sense to eliminate ADs entirely and go to a direct sales model. And that doesn't make a ton of sense either.
I don't think Rolex has much issue with ADs choosing who they sell to and under what financial situations the AD sells, provided they sell a specific watch for MSRP. If they hold all of their stock in the back and sell only to specific customers, they seem to be fine with this. The only question they are probably grappling with is how much the current situation will tarnish their brand image in the long run and if this justifies any further action. Thus far, we have not seen any indication that they feel that it does. |
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#62 |
Banned
Join Date: Jul 2016
Location: The Doghouse
Watch: Ingersoll Mickey
Posts: 3,128
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How can exclusivity tarnish a luxury brand’s image? If everyone can get one then it’s not a luxury. And the OP said that CUSTOMERS ARE PISSED. No they’re not, the customers are enjoying their Rolexes, it’s those that can’t seem to find one that are clamoring for Rolex to change their profoundly successful business model. The OP wants luxury goods distributed fairly. Gimme a break. If the world was fair luxury goods wouldn’t exist because none of us could afford them.
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#63 | |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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Quote:
A major benefit from an AD's perspective in selling these watches is that they can use them to sell other things to their customers and they can prioritize them for the customers that give them the best business. They do not have enough supply to meet demand, but they can use these watches in a fashion to increase their returns. |
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#64 |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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If a lot of people have the impression that your company is enabling unfair selling practices (which I am not saying Rolex is, because they are not, nor am I saying ADs are), that impression can tarnish your brand image if you get enough pissed off consumers who take a vendetta with your organization.
Have you ever looked at Twitter? People go absolutely ballistic over impressions. A question I would personally think Rolex is considering is how younger persons view the brand, and if the current situation is having any systematic impact on how they view Rolex. It might very well not, but it seems logical that Rolex is probably thinking about their sales both today and in the decades ahead. |
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#65 | |
Banned
Join Date: Nov 2006
Real Name: Nick
Location: FL
Posts: 767
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Quote:
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#66 |
"TRF" Member
Join Date: Apr 2020
Location: Asia
Watch: 5-digit steel
Posts: 384
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Sadly, Rolex don't care enough to want to manage their own distribution.
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#67 |
"TRF" Member
Join Date: Jan 2021
Location: Australia
Watch: Panerai PAM687
Posts: 762
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People who dont own a Rolex but dont have one yet:
The Grey Dealers and Flippers are Ruining this Hobby!!! Those same people after they buy a Rolex: Wow, my watch listed on Chrono24 for double what i paid for it! Great Investment. Never been happier to own a Rolex, its like money in the bank |
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#68 |
Banned
Join Date: Jul 2016
Location: The Doghouse
Watch: Ingersoll Mickey
Posts: 3,128
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If we are talking just a few years ago then they were just as available, the consensus being that Rolex makes roughly a million watches a year. The only difference is that there is now vastly more demand. Is your argument that Rolex needs to increase and decrease production to maintain some arbitrary level of availability relative to demand? I’m pretty sure you’re not saying that because I’m pretty sure you know it’s not remotely possible. Rolex makes a certain number of watches per year and the demand fluctuates around them. You’re mad at Rolex who have been relatively consistent during all of this. Your anger is misplaced.
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#69 |
"TRF" Member
Join Date: Jan 2019
Location: U.S.
Posts: 840
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Sounds like you haven't been a Rolex boutique. Try going to the NYC boutique and see what they say. Favoritism is played even at the corporate level.
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#70 |
"TRF" Member
Join Date: Apr 2019
Location: GMT-07:00
Posts: 897
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Rolex Needs a New Business Model
Rolex is one of the most successful and highly regarded global brands in the world. A sales and marketing powerhouse with unprecedented strength and reach.
But sure, fanboy forums should totally drive marketing strategy. This sh!t cracks me up. Sent from my iPhone using Tapatalk |
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#71 | |
Banned
Join Date: Jul 2016
Location: The Doghouse
Watch: Ingersoll Mickey
Posts: 3,128
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Quote:
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#72 |
"TRF" Member
Join Date: Nov 2019
Location: 🌐
Watch: BLNR
Posts: 1,324
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Selling direct to consumer online would be a disater, sneakers, cpu chips, graphics cards, PS5 etc... Bots would eat them alive. The in-store purchase experience eliminates this risk. Luxury Brands want to maintain exclusivity. It's no need to even go into a mall, online is crushing. Highend luxury that don't sell online Rolex, AP, Goyard, and dining out will be the only brick and mortar stores you need.
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#73 |
"TRF" Member
Join Date: Feb 2012
Location: PA
Posts: 43
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#74 | |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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Quote:
You don't need a landslide of pushback to negatively impact a brand image. A relatively limited number of people can cause harm if they feel so strongly about something that they are motivated to take action. Rolex has a history of managing their brand extremely well. I would bet the family farm that they have and are continuing to research this. If they feel it will be an issue in the future, I would expect them to take some form of action. An organization like Rolex is almost certainly constantly assessing any situation that has the potential to tarnish their brand image. This is no exception. They would be crazy not to. (And maybe it is indeed very small like you have stated, but it seems very likely they would want to know more about this.) And I agree with you about them continuing to make excellent watches. |
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#75 |
2024 Pledge Member
Join Date: Jan 2013
Location: NWA, USA
Watch: BLRO/Daytona/OP41s
Posts: 5,158
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My training class was buying my first Rolex in 1984 and having bought 10 others plus a slew of other brands since, many of them from the same salesperson. Sure that’s “spend history” but it’s also consistency and being a decent person. My SA and his manager like me. It’s not easy being a new customer these days but not impossible.
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#76 |
"TRF" Member
Join Date: Sep 2008
Location: Dallas tx
Watch: 16610,1675,16030
Posts: 1,136
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It’s funny that folks think that they are Rolex customers.
The ADs are Rolex’s customers. You guys are the AD’s customers. If you have a problem with how the watches are distributed you should talk to the dealer. The parent company is doing fine with their current distribution model. And complaining that their reputation will be tarnished because they are seen as being seen as “unfair”, a big part of the appeal for items like this is that they are hard to get. If I can get one and you can’t, then I’m better than you. That’s how Veblen goods work. It’s a way to prove you have more money and influence than the next guy. I can complain that Jay-Z can buy a pair of sneakers that I can’t, but it’s not going to hurt the sneaker company in the least because Jay-Z is still wearing their sneakers. |
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#77 |
"TRF" Member
Join Date: Jul 2020
Location: United States
Posts: 340
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It works for Tesla. They have no middle dealer networks at all. It’s direct to consumer sales.
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#78 |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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You don't think anger with a distributor gets routinely generalized to the manufacturer? (regardless if that anger is misplaced.)
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#79 |
Banned
Join Date: Jul 2016
Location: The Doghouse
Watch: Ingersoll Mickey
Posts: 3,128
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#80 | |
"TRF" Member
Join Date: Sep 2008
Location: Dallas tx
Watch: 16610,1675,16030
Posts: 1,136
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Quote:
The value of a Veblen good is based on its expensive nature combined with limited accessibility. The more difficult it is to get, and the more expensive, the more it becomes a signifier that the owner is a person of wealth and influence. If anything, the situation is helping Rolex, not hurting them. |
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#81 |
"TRF" Member
Join Date: Jan 2021
Location: Australia
Watch: Panerai PAM687
Posts: 762
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#82 | |
"TRF" Member
Join Date: Feb 2021
Location: MD/NC
Watch: 114060
Posts: 2,591
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Quote:
I was thinking about this from the perspective of: person has a bad experience with distributor (for example, if someone cannot get a watch and believes that ADs are selling that to secondary dealers)-->generalizes this to the overall values of the brand-->personally loses affinity for the brand-->encourages others to avoid the brand as well. I guess perhaps luxury goods are a little different in that regard. |
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#83 |
2024 Pledge Member
Join Date: May 2020
Real Name: Ollie
Location: UK
Watch: Sub, DJ36 & BB54
Posts: 1,766
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Rolex doesn't need to do anything different, the people who need to change their approach is the consumers that can't get the watches they desire.
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#84 |
"TRF" Member
Join Date: Nov 2013
Real Name: Richard
Location: UK
Watch: Tudor Ranger
Posts: 1,612
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At the moment ADs at least have some capacity to make sure watches are going to interested customers. It would be impossible to do that online. You would never be able to compete with the bots.
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#85 |
2024 Pledge Member
Join Date: Jan 2018
Location: Florida
Watch: Sub, DJ41, GMT
Posts: 7,706
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This is silly.
If Rolex sold directly to customers the situation could actually be a lot worse. Nothing would be different in terms of supply and demand. When you go to their website and click on a Daytona or a GMT II Pepsi, you’ll get a message that says, “Currently unavailable” or “ Notify me when available.” At least now it’s possible to have some interaction with a live human being at an authorized dealer. Setting up Rolex boutiques on a global scale is a possibility, but do you have any idea how much that would cost them? It’s all a moot point anyway because the underlying thesis that Rolex should change it’s business model is utterly ridiculous to begin with. Companies that must change their business model are at the opposite end of the spectrum. These are companies that are confronted with legitimate existential problems. They can’t sell product, aren’t making money, aren’t competitive in the marketplace and even bankruptcy is a possibility. Sent from my iPhone using Tapatalk |
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#86 |
"TRF" Member
Join Date: Jun 2013
Location: Here
Posts: 4,639
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The world isn’t a fair place. Not everyone gets their turn, it’s not 4th grade kickball. If everyone that wants one get one, Rolex loses. They are in their sweet spot, zero reason to make changes.
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#87 |
"TRF" Member
Join Date: Dec 2020
Location: .
Posts: 2,821
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The very title of this thread is nonsense.
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#88 |
"TRF" Member
Join Date: Jun 2015
Location: Houston TX
Posts: 1,328
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Anyone can buy any Rolex they want today, online, and have it tomorrow. You just have to pay the market price. If you want to wait to buy one at MSRP, then you need to find a way to work the AD game. When you play that game you will either be required to buy other merchandise from the AD you don't want (increasing the MSRP of the watch) or wait, sometimes quite a long time, for your chance to come up. It is a choice. People choose both routes. Some watches may have a fairly reasonable wait. Before I bought my DJ41, I took over a year just deciding what color, bezel, bracelet I wanted. After that it only took 7 months for my AD to get it. So from that perspective it wasn't that long.
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#89 | |
Banned
Join Date: May 2010
Location: Europe
Posts: 377
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Quote:
Rolex is interested in maximising profits, rather than 'unfairness'. |
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#90 |
"TRF" Member
Join Date: Dec 2012
Real Name: Cam
Location: North of 49th
Watch: Rolex/Grand Seiko
Posts: 1,875
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Any comment that starts with “Rolex needs to…”
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