Financial Times mocks the entire Rolex buying process

[Patekfinder]

Gotta love seeing the absurdity of this hit the main stream media and get called out. They truly couldn’t have more perfectly captured this any better.

Bravo FT.




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[Onikage]

Makes us all look bad..

[DLRIDES]

Originally Posted by Onikage

Makes us all look bad..

/\ This /\

[Jack T]

Originally Posted by Onikage

Makes us all look bad..

Not all of us…

[njlam]

I thought the article was a nice review of what is going on, but I think the larger issue is if Rolex is really serious about changing their distribution channel to make it more fair/transparent. I hope so.

In my opinion, the AD system is corrupt with so many watches are finding their way to flippers and grey dealers, frustrating the end customer.

The Bucherer acquisition really could really develop the channel for the most sought after watches. Why wouldn't Rolex want to make the whole spread (retail/wholesale) on their most popular models? It would be good for end buyers as Rolex would want to put watches into as many new wrists as possible (as we all know, you can't own just one). As Bucherer doesn't sell any jewelry and the probably don't want to sell you another watch brand if they can sell you another Rolex the purchase history thing become less important. While some people may have to buy more Rolexes than they may ultimately want, why does Rolex care? The Bucherer acquisition could be a good first step to a more sane buying experience.

At the same time, it is extremely bad for other major market retailers like WOS/BB/etc. Especially those who have stores in the same cities as Bucherer. Cities without Bucherer locations should be okay for now and still may have access to the most popular models.

However, while it may ulimately underserve parts of the country/world, limiting distribution to their own stores/boutiques may cut down on the flipper/out the AD back door problems that are so corrosive today.

I am optimistic for the future given the moves Rolex seems to be making.

[Jack T]

Originally Posted by njlam

I thought the article was a nice review of what is going on, but I think the larger issue is if Rolex is really serious about changing their distribution channel to make it more fair/transparent. I hope so.

In my opinion, the AD system is corrupt with so many watches are finding their way to flippers and grey dealers, frustrating the end customer.

The Bucherer acquisition really could really develop the channel for the most sought after watches. Why wouldn't Rolex want to make the whole spread (retail/wholesale) on their most popular models? It would be good for end buyers as Rolex would want to put watches into as many new wrists as possible (as we all know, you can't own just one). As Bucherer doesn't sell any jewelry and the probably don't want to sell you another watch brand if they can sell you another Rolex the purchase history thing become less important. While some people may have to buy more Rolexes than they may ultimately want, why does Rolex care? The Bucherer acquisition could be a good first step to a more sane buying experience.

At the same time, it is extremely bad for other major market retailers like WOS/BB/etc. Especially those who have stores in the same cities as Bucherer. Cities without Bucherer locations should be okay for now and still may have access to the most popular models.

However, while it may ulimately underserve parts of the country/world, limiting distribution to their own stores/boutiques may cut down on the flipper/out the AD back door problems that are so corrosive today.

I am optimistic for the future given the moves Rolex seems to be making.

Why do you think Rolex has any interest in making their distribution channel fair and transparent? They certainly have no obligation to do so.

As for the Bucherer acquisition, that was an effort to keep a long time, prominent Swiss enterprise in Swiss hands; Rolex, in my opinion, doesn’t want to be running front line retail operations. And major watch brands don’t want to be selling through a Rolex entity. When the time is right, I think Bucherer will be flipped, ideally in to private hands.

[Henrimontgomery]

Originally Posted by njlam

As Bucherer doesn't sell any jewelry and the probably don't want to sell you another watch brand if they can sell you another Rolex the purchase history thing become less important. While some people may have to buy more Rolexes than they may ultimately want, why does Rolex care? The Bucherer acquisition could be a good first step to a more sane buying experience.

Not sure I understand, however Bucherer does sell jewelry. A ton. They even have their own brand..

[ratty]

Originally Posted by Onikage

Makes us all look bad..

No it doesn’t, just the people who play the AD’s games and pay silly money over the MRRP for the watch.

[BruRol]

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

[2thdock]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

True, and most most people don’t know that either. Many high end items are similar. No news to people with interest, but surprise to all others.

[BraveBold]

Originally Posted by 2thdock

True, and most most people don’t know that either. Many high end items are similar. No news to people with interest, but surprise to all others.

Yup, have to buy the base or less demanded cars for Porsche, Ferrari etc to get on the list. I will give credit to Porsche, however, for taking more concrete steps to suss out or even hurt the flippers.

They’ve blacklisted folks, they’ve introduced competing products that helped reduce speculative demand, and they generally maintain an atmosphere of humility (I have had three different primary Porsche dealers).

My Rolex AD has been good overall too - I have never purchased anything I would not otherwise buy and have secured a couple in-demand or highly-demanded watches. Though the wait times vary and it takes some encouragement/engagement to keep my seat warm.

The hype cycle referenced by the FT isn’t just for watches and neither is the absurdity. But to think every in-demand piece will ever come down to general accessibility is to think the world’s economy is on the verge of collapse. Luxury goods companies are always trying to produce “demand minus one” and keep stability for their halo products… despite the protestations of some, the value-stability of these goods make their price points more tolerable for the moneyed clientele that generally don’t like to throw $$$ away. Handbags, cars, watches, wine - if you can both enjoy it and see its value at least hold, you’re encouraged to partake more than otherwise…

[scurfa]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

Try asking after a 9 car purchase

[omar-rye]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

Completely different. These cars offer customization options, and almost every order is spec’d out.

I attribute today's steroidal demand for consumer goods to a tulip mania mentality of some sort. We saw it with some crypto, NFT art, sneakers, Swatch watches, etc etc etc. People are under the impression that everything and anything is investable. If you pause and study history, you will come to find out that these same people have a volatile appetite and will eventually move on to other things. This Rolex FOMO behaviour is not going to last forever, and I believe Rolex is smart enough to know that

[PhilAviate]

Originally Posted by omar-rye

Completely different. These cars offer customization options, and almost every order is spec’d out.

I attribute today's steroidal demand for consumer goods to a tulip mania mentality of some sort. We saw it with some crypto, NFT art, sneakers, Swatch watches, etc etc etc. People are under the impression that everything and anything is investable. If you pause and study history, you will come to find out that these same people have a volatile appetite and will eventually move on to other things. This Rolex FOMO behaviour is not going to last forever, and I believe Rolex is smart enough to know that

Bingo, I think Rolex has disliked the last 3 years more than the buyers.

Rolex always sold every watch they produced, it makes no difference to them how quickly they fly off the shelves. They always ran their factory and full speed, and always sent everything they made to the dealers who paid Rolex for it, so Rolex's sales were complete. So beyond that all that has happened is they have annoyed a lot of their core, long standing, customers.

[justdate]

Originally Posted by PhilAviate

Bingo, I think Rolex has disliked the last 3 years more than the buyers.

Rolex always sold every watch they produced, it makes no difference to them how quickly they fly off the shelves. They always ran their factory and full speed, and always sent everything they made to the dealers who paid Rolex for it, so Rolex's sales were complete. So beyond that all that has happened is they have annoyed a lot of their core, long standing, customers.

Yep they’ve been crying all the way to the bank

[PhilAviate]

Originally Posted by justdate

Yep they’ve been crying all the way to the bank

What exactly has changed for Rolex? They always sold 100% of what they made... The dealers are their customer. Once sold to the dealer Rolex is finished in that transaction. It didn't matter how quickly or easily the AD sold them, Rolex had already been paid.

They have been steadily increasing production for years, but it's not like they sold more watches than they can physically make the last 3 years.

[dk65]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

At least at my Porsche dealer, generally you can do this (get a GT3, Turbo S, or other rare birds), assuming you have the $75k over sticker they want for it. Different world there, since they can charge over MSRP for the cars.

[ads75]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

You are basically comparing the highest end, most expensive Porsche to any level Rolex watches, including their basic entry level ones. For the most part, if you want an entry level Porsche, the dealer will usually have something on the lot for you to buy. You comparison isn't really realistic.

[WilsdorfNDavis]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

True but the GT3 is truly a limited item, Rolexes not so much.

[BraveBold]

Originally Posted by WilsdorfNDavis

True but the GT3 is truly a limited item, Rolexes not so much.

Not really… it is more than 10x the price of, say, a SS Daytona. It is produced at far far more than 1/10th the quantity.

So, no, not more limited relative to cost and attainability.

[mjolnir2thor]

Originally Posted by BruRol

This is not a new phenomenon or restricted to Rolex. Try walking into your local Porsche centre with zero purchase history and ask to order a GT3. See how far you get.

Must be a slow news day.

Been there done that! You are 100% correct!

[Lawlex]

FT print version is great, the digital version however…


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[brandrea]

Originally Posted by Lawlex

FT print version is great, the digital version however…


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Do you have a link to the article? Thanks

[Fleetlord]

As long as there is still plenty and plenty of money getting in the hands of people who want to spend it on Veblen Goods, then this shall be the way.

Being expensive isn't exclusive enough. Money is the easiest part of acquisition.

Rolex is just in that class now, where the journey to acquisition adds to its prestige.

[GeorgeK]

Originally Posted by fleetlord

rolex is just in that class now, where the journey to acquisition adds to its ridicule.

fify.

[PhilAviate]

Originally Posted by Fleetlord

As long as there is still plenty and plenty of money getting in the hands of people who want to spend it on Veblen Goods, then this shall be the way.

Being expensive isn't exclusive enough. Money is the easiest part of acquisition.

Rolex is just in that class now, where the journey to acquisition adds to its prestige.

Nonsense.There is no prestige in the stupidity of the process of late, and I think Rolex knows that. Their long term sucess relies on long term customers and stability, not short term flex hype morons who come and go with the fashion of the day.

Most of the demand for rolex of late is driven by the notion that there will be further demand. Therefore they are using rolex as an item of speculation.
That bubble has burst, and the arrogance of the bad dealers means they are trying to act, like you are suggesting, that this will be the case forever. It isn't, and there is no logical reason to assume a trend of close to 100 years will suddenly change just because of a short upset of very unique circumstances.

We are witnessing the dying gasps of the stupidity of late, and the ones who will do best will be the ones who are the first to shift their focus back to customer service, not customer ridicule. The issue is that takes bravery and humility on the part of the store; the good thing is mainstream articles like this are the perfect tool for them to change gracefully and say they are reacting to the concerns highlighted and make themselves look the good guy.

I'd take a sizeable bet that before summer we will notice a marked shift in attitude from the dealers and be back to how it used to be where they tried to please you before the purchase. I know my dealer is half way there. We got 3 watches in 2023, without much drama, and while they somewhat try to still play the scarcity game, they are quietly shifting in attitude.

[Boston1]

Originally Posted by PhilAviate

Nonsense.There is no prestige in the stupidity of the process of late, and I think Rolex knows that. Their long term sucess relies on long term customers and stability, not short term flex hype morons who come and go with the fashion of the day.

Most of the demand for rolex of late is driven by the notion that there will be further demand. Therefore they are using rolex as an item of speculation.
That bubble has burst, and the arrogance of the bad dealers means they are trying to act, like you are suggesting, that this will be the case forever. It isn't, and there is no logical reason to assume a trend of close to 100 years will suddenly change just because of a short upset of very unique circumstances.

We are witnessing the dying gasps of the stupidity of late, and the ones who will do best will be the ones who are the first to shift their focus back to customer service, not customer ridicule. The issue is that takes bravery and humility on the part of the store; the good thing is mainstream articles like this are the perfect tool for them to change gracefully and say they are reacting to the concerns highlighted and make themselves look the good guy.

I'd take a sizeable bet that before summer we will notice a marked shift in attitude from the dealers and be back to how it used to be where they tried to please you before the purchase. I know my dealer is half way there. We got 3 watches in 2023, without much drama, and while they somewhat try to still play the scarcity game, they are quietly shifting in attitude.

You nailed it.


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[Afterglow]

Originally Posted by PhilAviate

Nonsense.There is no prestige in the stupidity of the process of late, and I think Rolex knows that. Their long term sucess relies on long term customers and stability, not short term flex hype morons who come and go with the fashion of the day.

Most of the demand for rolex of late is driven by the notion that there will be further demand. Therefore they are using rolex as an item of speculation.
That bubble has burst, and the arrogance of the bad dealers means they are trying to act, like you are suggesting, that this will be the case forever. It isn't, and there is no logical reason to assume a trend of close to 100 years will suddenly change just because of a short upset of very unique circumstances.

We are witnessing the dying gasps of the stupidity of late, and the ones who will do best will be the ones who are the first to shift their focus back to customer service, not customer ridicule. The issue is that takes bravery and humility on the part of the store; the good thing is mainstream articles like this are the perfect tool for them to change gracefully and say they are reacting to the concerns highlighted and make themselves look the good guy.

I'd take a sizeable bet that before summer we will notice a marked shift in attitude from the dealers and be back to how it used to be where they tried to please you before the purchase. I know my dealer is half way there. We got 3 watches in 2023, without much drama, and while they somewhat try to still play the scarcity game, they are quietly shifting in attitude.

[minute_man]

Originally Posted by PhilAviate

Nonsense.There is no prestige in the stupidity of the process of late, and I think Rolex knows that. Their long term sucess relies on long term customers and stability, not short term flex hype morons who come and go with the fashion of the day.

Most of the demand for rolex of late is driven by the notion that there will be further demand. Therefore they are using rolex as an item of speculation.
That bubble has burst, and the arrogance of the bad dealers means they are trying to act, like you are suggesting, that this will be the case forever. It isn't, and there is no logical reason to assume a trend of close to 100 years will suddenly change just because of a short upset of very unique circumstances.

We are witnessing the dying gasps of the stupidity of late, and the ones who will do best will be the ones who are the first to shift their focus back to customer service, not customer ridicule. The issue is that takes bravery and humility on the part of the store; the good thing is mainstream articles like this are the perfect tool for them to change gracefully and say they are reacting to the concerns highlighted and make themselves look the good guy.

I'd take a sizeable bet that before summer we will notice a marked shift in attitude from the dealers and be back to how it used to be where they tried to please you before the purchase. I know my dealer is half way there. We got 3 watches in 2023, without much drama, and while they somewhat try to still play the scarcity game, they are quietly shifting in attitude.

Blunt truth, right on point. Well said!

[77T]

Originally Posted by brandrea

Do you have a link to the article? Thanks

https://ftalphaville.ft.com/content/...hy%20wristwear.

A perfect generative LLM AI article.

Now we are part of the training…

NOTE: “Watches of Switzerland plunged by 25 per cent on Thursday”

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